The Empirical Research Of ERM Implementation Effect Of Chinese Listed Companies

Since the1990’s, along with the development of the technology, tremendouschange has undergone in the social and economic environment. The internationalfinancial situation is becoming more and more complicated, which can make themanagement risk more intensified. In recent years, the risk management has alwaysbeen the hot spot of the international attention. In some developed countries, the riskmanagement has not only developed rapidly in theory, but also been more and moreapplied to all aspects of the business management by the enterprises who have alreadyrealized the importance of it. By contrast, the risk management of our country startsrelatively late. In China, though the study of risk management is turning into a newstage of development at present, but it still lacks of systematic. And due to theconsciousness of risk management is not high, and therefore its application is notcomprehensive enough in practice.Some scholars have pointed out that corporate management’s awareness andsupport of the enterprise risk management is the determining factor to the success ofthe risk management; the larger administrator privileges, the more detrimental to theimplementation of enterprise risk management; if the company’s managers investmore personal wealth, they will choose more risk-reduction strategies for enterprises.These results are explained, as a business management, not only to themselves to havea full understanding of risk management, but also should start from their own, topromote the implementation of enterprise risk management, thus contributing to itsbetter development.Therefore, in this paper, the author starts from the perspective of the company’sdecision-making, management and execution layer, and then adopts the method ofempirical research to take a study on the effect of the implementation of enterpriserisk management, which will be directly reflected in an enterprise internal, in theprocess of setting up risk management, and how to bring different levels of companypersonnel to ensure the establishment and implementation effectiveness of enterpriserisk management.In order to study the relationship between the internal stakeholders and ERMimplementation effect, the author takes all listed companies in China’s A-share in2012as a sample, weeds out the samples such as the ST companies, financial enterprises and the industries which are constituted by less than five enterprises, andthen uses the eventually filter samples and the corporate ERM target to multipleregression, and then analyzes the relationship between the three and the effect ofERM implementation. The right concentration of management, chairman and generalmanager of two hats-one has a significant negative impact on the effects of theimplementation of corporate ERM; loyalty of the company’s employees has asignificant positive impact on the implementation of ERM; the number ofindependent directors as well as the number of directors with professional backgroundhas no significant impact on the results of the implementation of ERM.These results indicate that in the process of corporate ERM implementation, youmust let the company’s employees who are on different levels to have a fullunderstanding of ERM, employees can implement the strategy of the company. Ibelieve that, in the specific implementation process. firstly, the company shouldpromote the separate of the two posts of chairman and general manager to make theimplement of enterprise risk management construction more better; Secondly,enterprises should improve the general staff’s learning and understanding of thecompany’s risk management, so as to promote the implementation of ERM andstrengthen corporate governance.