| Firstly through reviewing the research of enterprise risk management,this paper finds that those past relevant research of the scholars focused on the analysis of the COSO enterprise risk management framework or theory of the relationship between enterprise risk management and enterprise value,relevant empirical research is relatively lack.Meanwhile,the paper's analysis suggests the economic development of China and the prosperity of the insurance industry makes that there is a pressing need for the Chinese life insurance companies to better implement enterprise risk management.Then,review the process of risk management theory development lead to the definition of enterprise risk management.Enterprise risk management is the latest achievements of risk management theory and has more obvious advantages than the traditional risk management.Afterwards,this paper analyzes theoretically the approaches of risk management for the enterprise to create value and considers that enterprise risk management can improve enterprise performance to create value for the enterprise by optimizing capital allocation from the perspective of the whole company,reducing the enterprise bankruptcy cost and the cost of financial distress,reduce principal-agent cost and having the advantage of cost savings.The most of past literatures study theoretically the relationship between enterprise risk management and enterprise value,and a few empirical studies mostly focused on whether the implementation of enterprises risk management has an influence on the enterprise value.Due to the China insurance regulatory commission issued the insurance companies implement enterprise risk management guidelines,almost all life insurance companies in our country has implemented enterprise risk management.Therefore,mainly from three dimensions that 1.if there is a risk management department,2.if is there a chief risk officer and 3.if is there a risk management committee evaluating the completeness of enterprise risk management organization structure,meanwhile another three dimensions that 1.the number of identifying risk of type,2.the number of risk analyzed by using quantitative methods and 3.the number of risk managed evaluating integrity of the technical level of implementing enterprise risk management,adopting the organization structure completeness and the technical level integrity of life insurance companies' enterprise risk management in our country as two substitution variables of the implementation degree of enterprise risk management,selecting 58 life insurance companies of the insurance market in China as sample and using the data from the six years from 2010 to 2015,this paper studies empirically the influence of the implementation degree of enterprise risk management on Chinese life insurance companies' enterprise value.The empirical results find that the organization structure completeness of the life insurance companies' enterprise risk management has a significant positive influence on the total return on assets.The more complete organizational structure construction,the higher return on total assets of company.The empirical study of the technical level integrity of life insurance companies,enterprise risk management has the same result,the technical level integrity of Chinese life insurance companies' enterprise risk management has a significant positive influence on the total return on assets.The more perfect enterprise risk management technologies,the higher return on total assets of company.When studying two variables at the same time,return on total assets of company still significant is influenced by the organization structure completeness of the Chinese life insurance companies,and the influence of the technical level integrity is still positive but the effect was not significant.The reason may be the completeness of the organizational structure will affect the technical level integrity and reduce the influence of the technical level integrity on return on total assets of company.Enterprise risk management organizational structure is more complete means that the company attaches great importance to the enterprise risk management,the risk management professionals is often more,and the integrity of the technical level of the enterprise risk management is correspondingly better.According to the empirical study,this paper finds the organization structure completeness and the technical level integrity of Chinese life insurance companies'enterprise risk management has a significant positive influence on the total return on assets,in other words,the implementation degree of enterprise risk management will significantly influence the profitability of life insurance companies,improving the organization structure completeness and the technical level integrity can improve their ability of the future net cash flows,and ultimately improve the value of the enterprise.Therefore,Chinese life insurance companies should continue to complete their enterprise risk management organization structure,cultivate professional risk management personnel,improve the integrity of the technical level,enhance the ability of enterprise risk management,and eventually improve enterprise value. |
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