the impact of total risk management on company performance evidence in fuel and energy sector of pakistan
1. Introduction
Ihsanullah (F16-1088)
Shams Razzaq (F16-1131)
Abdul Muaid (F16-1127)
University Of Haripur, Haripur
Department of Management Science
“Impact of Total Risk Management on Firm’s Performance”
5. Literature review
Find ways to manage(Rejda, 2003).
Risk are faced by public or private organizations Ranong and Phuenngam, 2009).
Hamadu Kedir Mohammed and Adriana Knapkova, 2016.
Zeitun and Tian (2007), using 167 Jordanian companies over fifteen year period (1989-2003).
Poraghajan (2013) using firm data in the Tehran stock market.
6. Study objectives
To examine the impact of risk management, intellectual capital, firm size and financial leverage
on performance of fuel and energy sector of Pakistan.
To guide managers and investors in fuel and energy sector to be careful while taking decision.
11. Results of regression
Dependent Variable: ROE Method: Panel Least Squares
Date: 01/16/17 Time: 12:45 Sample: 2010 2015
Periods included: 6 Cross-sections included: 17
Total panel (balanced) observations: 102
Variable Coefficient Std. Error t-Statistic Prob.
C -450.8990 114.5907 -3.934865 0.0002
TRM -1.20 2.37 -0.507480 0.6130
IC 2.116599 6.579891 0.321677 0.7484
FS 33.39879 6.977107 4.786911 0.0000
FL -29.08650 1.408311 -20.65347 0.0000
R-squared 0.815228 Mean dependent var -14.89147
Adjusted R-squared 0.807608 S.D. dependent var 326.2466
S.E. of regression 143.0999 Akaike info criterion 12.81274
Sum squared resid 1986325. Schwarz criterion 12.94142
Log likelihood -648.4498 Hannan-Quinn criter. 12.86485
F-statistic 106.9925 Durbin-Watson stat 0.937164
12. Conclusion
No significance relationship between TRM and intellectual with firm performance
Results also indicates significant and positive relationship between firm size and performance
while highly significant and negative relationship between financial leverage and firm
performance.
According to (Lawrence A. Gordon, Martin P. Loeb and Chih-Yang Tseng, 2009)