ENTERPRISE RISK MANAGEMENT IMPLEMENTATION AND ITS ECONOMIC VALUE ADDED ANALYSIS: THE MODERATING EFFECT OF CORPORATE SUSTAINABILITY REPORTING

Enterprise risk management (ERM) and corporate sustainability reporting (CSR) have become popular concerns to ensure the firm’s long-term performance. Although, number of studies related to ERM, CSR, and firm performance exists but the research lacks in providing a clear understanding of the intertwined relationship between ERM implementation and CSR towards firm performance. Applying the Stakeholders' Theory as an underpinning theory alongside the Modern Portfolio and Signaling Theory, this study examines the causal relationship between ERM implementation and firm performance and its value creation transmission mechanism. This study also examines the moderating effect of CSR on ERM and firm performance relationship. This research is based on panel data (2008 to 2017) derived from 41 oil and gas listed companies on Bursa Malaysia, involved in production & explorations, refinery & retailing, engineering support, infrastructure, equipment, and services.