The relationship between enterprise risk management, value and firm characteristics based on the literature

In the wake of the increasing importance of comprehensive enterprise-wide risk management approaches (ERM) in the last years, e. g. due to stronger regulatory requirements, the field of research on ERM has attracted a considerable amount of attention in the literature. The aim of this paper is to provide a literature-based analysis of the theoretical arguments and empirical findings regarding firm characteristics in the context of measuring the impact of ERM on firm value. Due to the endogeneity problem, we focus on the direct impact as well as on the indirect impact (via ERM) of firm characteristics on firm value.