The Effects of ERM Adoption on European Insurance Firms Performance and Risks

We investigate the effects of adopting enterprise risk management (ERM) on performance and risks European publicly listed insurance firms. Using a dataset for 24 years, we report new results which show that ERM adopters realize significant premiums after controlling other covariates endogeneity. Several firm characteristics such as size, opacity, choice external monitoring agents auditors are determinants ERM. fill gap in literature by assessing impact findings our sample, effectively reduce total systematic and, to greater extent, idiosyncratic risk. Firm-level variables leverage, dividend payments events, diversification Insurers use corporate events signal information about reducing Industry international risk, respectively.