Effects of Firm Size on Enterprise Risk Management of Listed Firms in Kenya

The purpose of this study was to investigate the effects of firm size on enterprise risk management for the listed firms in Kenya. Effectiveness of enterprise risk management is measured by financial performance of the listed firms. A descriptive research design was used. Theoretically, ERM adds value to an organization, however there is disagreement among scholars on whether ERM add value to a firm that adopt ERM. This study investigated the effects of firm’s size on ERM measured in terms of financial performance of the listed firms in Kenya. A descriptive research design was used and the study population was the managers heading ERM departments in the listed firms. A survey sheet was used to collect secondary data from annual financial statements of each of the listed firms; primary data was collected using questionnaires. Data collected was analysed using descriptive statistics and regression analysis models. The relationship between independent variable and dependent variable was analysed using linear regression models. The hypothesis was tested using F-test at 5% level of confidence. The results were presented using pie charts, tables and graphs. The finding from the study was compared with the empirical literature as well as the theoretical literature.