Effect of Enterprise Risk Management on Firm Value: Empirical Evidence from Non-Financial Firms in Pakistan

GIS Business ◽  
1970 ◽  
Vol 13 (2) ◽  
pp. 15-28
Author(s):  
Nouman Nasir
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Least Square ◽  
Return On Equity ◽  
Financial Firms ◽  
Enterprise Risk ◽  
Ordinary Least Square Regression

This research examines the effect of enterprise risk management on firm value in Pakistan. Further, this study empirically examines company characteristics that establish the execution of an enterprise risk management system. Using a sample of final dataset of 83 non-financial firms located in Pakistan. The sample included non-financial firms from the year 1999 to 2015 and so up to seventeen observation years per company. As in context of Pakistan, most of the organizations are already implement an ERM programs and establish specialized ERM departments because the ERM is now a global term and has become increasingly relevant because of the growing difficulty of risk and an additional development of regulatory frame works. For the empirical evidences, data collected from non-financial firms listed at the Pakistan Stock Exchange (PSX). Results of logistic regression shows that Capital Opacity, Profitability, Financial Leverage, Firm Size and Slack have positive impact on the implementation of an ERM system but Industrial diversification, Industry and Return on Equity are negatively related to an ERM engagement. The results of ordinary least square regression finds positive relationship between use of an ERM and firm value.

scholarly journals Pengaruh Enterprise Risk Manajement terhadap Nilai Perusahaan dengan Variabel Kontrol: Ukuran Perusahaan dan DER

2019 ◽  
Vol 4 (1) ◽  
pp. 77
Author(s):  
Umi Murtini
Keyword(s):  
Risk Management ◽  
Firm Size ◽  
Firm Value ◽  
Error Term ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Least Square ◽  
Manufacturing Companies ◽  
Control Variables ◽  
Enterprise Risk

This study aimed to examine the effect of Enterprise Risk Management (ERM) to the firm value with control variables comprising firm size and FER. The method used is Weighted Least Square (WLS) with the error term as variable weights. The research sample are manufacturing companies registered in the Indonesia Stock Exchange in the period 2011-2015. The results showed that the ERM effect on the firm value with firm size as control variables.

scholarly journals ENTERPRISE RISK MANAGEMENT DAN INTELLECTUAL CAPITAL DISCLOSURE : PERSPEKTIF INVESTOR

2018 ◽  
Vol 8 (2) ◽  
pp. 187 ◽  
Author(s):  
Yolanda Yolanda ◽  
Ihyaul Ulum ◽  
Setu Setyawan
Keyword(s):  
Risk Management ◽  
Intellectual Capital ◽  
Firm Value ◽  
Sampling Technique ◽  
Enterprise Risk Management ◽  
Partial Least Square ◽  
Least Square ◽  
Corporate Value ◽  
Coding System ◽  
Enterprise Risk

This paper aims to examine the effect of corporate value on investor reactions with enterprise risk management (ERM) and intellectual capital disclosure (ICD) as a mediation variable on Indonesian companies listed in the Jakarta Islamic Index in 2016. The sample of this study consists of 25 companies with purposive sampling technique. Five ways numerical coding system and Partial Least Square (PLS) are used as a tool to perform data analysis. The results show that firm value has a significant influence on investor reaction. Unlike the ERM capable of mediating the relationship between corporate value and investor reactions, ICD is unable to mediate.

scholarly journals The Influence of Enterprise Risk Management, Leverage, Firm Size and Profitability on Firm Value in Property and Real Estate Companies Listed on the Indonesian Stock Exchange in 2016-2018

2021 ◽  
Author(s):  
Dihin Septyanto ◽  
Ikhwan Maulid Nugraha
Keyword(s):  
Risk Management ◽  
Firm Size ◽  
Firm Value ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Negative Influence ◽  
Positive Influence ◽  
Enterprise Risk Management ◽  
Enterprise Risk ◽  
Negative Effect

The objective of this study was to analyze the effects of enterprise risk management (ERM) disclosure, leverage, firm size and profitability on firm value, which is proxied by Tobin’s Q. High corporate value can reflect the shareholders’ wealth. This study used the Indonesian Capital Market Directory (ICMD). The sample included 32 companies, chosen with nonprobability purposive sampling. This study used a quantitative approach with descriptive analysis methods and panel data regression to test hypotheses using the Eviews 10 application. ERM disclosure, leverage and profitability had a positive and significant influence on firm value, while firm size had a negative influence on firm value. The implication of this research is that where ERM has a positive influence on firm value, it is good for companies to increase ERM disclosure, because the company will be considered to have managed its risks well. Debt policy variables that are proxied by the Debt to Equity Ratio (DER) and profitability proxied by ROA had a positive effect on firm value. That is, a higher value of DER was followed by an increase in the percentage of Return On Assets (ROA), which increased the firm’s value. However, the company’s size variable which was proxied by Ln Total Assets had a negative effect on the value of the company, which indicated that investors dislike company assets that are too high and that are not offset by high profits. Keywords: enterprise risk management, leverage, firm size, profitability, firm value

scholarly journals The effect of enterprise risk management (ERM) on firm value in manufacturing companies listed on Indonesian Stock Exchange year 2010-2013

2018 ◽  
Vol 3 (2) ◽  
pp. 224-235 ◽  
Author(s):  
Iswajuni Iswajuni ◽  
Arina Manasikana ◽  
Soegeng Soetedjo
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Content Type ◽  
Significant Negative Effect ◽  
Enterprise Risk ◽  
Negative Effect

Purpose The purpose of this paper is to identify the effect of enterprise risk management (ERM) with firm size, ROA and managerial ownership as control variables on firm value that is proxied by Tobin’s Q. Design/methodology/approach Population of this research was manufacturing companies listed on the Indonesian Stock Exchange (IDX) in 2010–2013. The used method in this research is multiple linear regression-ordinary least square and hypotheses testing using t-test to test the regression coefficients with level of significance of 5 percent. Findings The results showed that ERM, ROA and size of the company have a significant positive effect on the firm value. While the managerial ownership has a significant negative effect on the firm value. Originality/value The results showed that firm value increases as ERM, ROA and size of the company improves. While the managerial ownership has a significant negative effect on the firm value.

scholarly journals FACTORS AFFECT COMPANY VALUE IN MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

2020 ◽  
Vol 22 (1) ◽  
pp. 1-12
Author(s):  
LINDA SANTIOSO ◽  
NURAINUN BANGUN ◽  
YUNIARWATI YUNIARWATI
Keyword(s):  
Risk Management ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Analysis Tool ◽  
Manufacturing Companies ◽  
Enterprise Risk ◽  
Corporate Social

The purpose of this research is to examine the effect of profitability, enterprise risk management and corporate social responsibility on firm value. The sample of this research limited to manufacturing companies listed on the Indonesia Stock Exchange for the period 2013-2015. This research uses 150 data with 50 companies selected per year. Analysis tool used multiple linear regression of SPSS 21.00. The dependent variable on this research is firm value, and the independent variable returns on equity, enterprise risk management, and corporate social responsibility. The result showed that return on equity and enterprise risk management affect the firm value, while corporate social responsibility has no effect on firm value.

scholarly journals Pengaruh Enterprise Risk Management Disclosure, Intellectual Capital Disclosure dan Debt to Asset Ratio terhadap Nilai Perusahaan

2020 ◽  
Vol 1 (2) ◽  
pp. 147-162
Author(s):  
Leni Siti Rukmana Deffi ◽  
Dwi Cahyono ◽  
Rendy Mirwan Aspirand
Keyword(s):  
Risk Management ◽  
Intellectual Capital ◽  
Firm Value ◽  
Quantitative Methods ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Primary Data ◽  
Coefficient Of Determination ◽  
A Value ◽  
Enterprise Risk

This study aims to determine the effect of Enterprise Risk Management Disclosure, Intellectual Capital Disclosure and Debt To Asset Ratio on firm value. This research uses quantitative methods, involving a sample of 21 mining companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2017 period. Primary data is collected from regular company reports. The results of the study using a partial test showed a significance value of 0.397 for the Enterprise Risk Management Disclosure variable, a significance value of 0.349 for the Intellectual Capital Disclosure variable and a significance value of 0.301 for the Debt To Asset Ratio variable. The calculated coefficient of determination results obtained a value of 0.111, which means the independent variable under study only affects the value of the company by 11%, while the remaining 89% of the company's value is influenced by other independent variables outside the variables used in this study. Conclusions, Enterprise Risk Management Disclosure, Intellectual Capital Disclosure and Debt to Asset Ratio have no influence on firm value. Keywords: Enterprise Risk Management Disclosure, Intellectual Capital Disclosure and Debt To Asset Ratio, firm value.

scholarly journals The Effect Of Enterprise Risk Management Disclosure, Intellectual Capital Disclosure, Independent Board Of Commissioners, Board Of Director And Audit Committee Towards Firm Value

2020 ◽  
Vol 9 (1) ◽  
pp. 60-72
Author(s):  
Bima Cinintya Pratama ◽  
Indriana Putri ◽  
Maulida Nurul Innayah
Keyword(s):  
Risk Management ◽  
Intellectual Capital ◽  
Firm Value ◽  
Audit Committee ◽  
Stock Exchange ◽  
Multiple Regression Model ◽  
Enterprise Risk Management ◽  
Book Value ◽  
Board Of Director ◽  
Enterprise Risk

This study aims to examine the effect of enterprise risk management disclosure, intellectual capital disclosure, board commissioner independent, the board of director and committee audit on firm value proxied using book value. The population in this study are property, real estate, and building construction sector companies listed on the Indonesia Stock Exchange in 2016-2018. The samples of this study are 60 companies with 180 observations listed in Indonesia Stock Exchange selected by using a purposive sampling method. The data analysis method used is multiple regression model. Based on the hypothesis that enterprise risk management disclosure, intellectual capital disclosure, independent board commissioner and audit committee have no significant effect on firm value meanwhile board of directors has a significant effect on firm value.

scholarly journals PENGARUH ENTERPRISE RISK MANAGEMENT (ERM), KINERJA PERUSAHAAN DAN SIZE TERHADAP NILAI PERUSAHAAN

2020 ◽  
Vol 7 (5) ◽  
pp. 926
Author(s):  
Miftakhul Fadhilah ◽  
Puji Sucia Sukmaningrum
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Company Size ◽  
Company Value ◽  
Panel Data Regression ◽  
Enterprise Risk ◽  
Data Regression ◽  
Study Population

This study aims to determine the effect of Enterprise Risk Management (ERM), profitability, leverage, earnings per share and company size on firm value. The method used in this study is the Panel Data Regression with the study population of companies registered in the Jakarta Islamic Index between 2014-2018 period. The sample of this study consists of 13 companies and the data in this study were obtained from the company's annual report from the Indonesia Stock Exchange website. The results showed that profitability and leverage has a positive and significant effect on firm value. And Earning per Share has a negative and significant effect on company value. Meanwhile, Enterprise Risk Management and company size have no significant effect on firm value.Keywords:  firm value, enterprise risk management, profitability, leverage, earning per share, size

scholarly journals Empirical Analysis of Joint Impact of Enterprise Risk Management and Corporate Governance on Firm Value

2018 ◽  
Vol 1 (1) ◽  
pp. 34-50 ◽  
Author(s):  
Ananth Rao
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Firm Value ◽  
Positive Impact ◽  
Gulf Cooperation Council ◽  
Shareholder Wealth ◽  
Enterprise Risk Management ◽  
System Modelling ◽  
Enterprise Risk ◽  
The Impact

This paper analyzes simultaneity and endogeneity of ERM and Corporate Governance. It assesses quantitative relationship between Corporate Governance, ERM and value of the firm. The research results provide quantitative justifications for the boards to make investments in ERM and Corporate Governance initiatives for improved shareholder wealth.  3SLS-IV system modelling was applied on 2004-11 data of Gulf Cooperation Council financial institutions. Our research confirms the simultaneity and endogeneity of Corporate Governance, ERM and Firm Value determinants. Firm value is jointly and positively impacted by ERM & Corporate Governance initiatives although the impact was less significant. Unexpectedly, ERM initiative was significantly and negatively impacted by determinants such as intangibility, and profitability. Firm size was the only determinant that showed significant and positive impact on firm value. Relative to UAE the corporate governance mechanism was active in Bahrain, Saudi Arabia, Kuwait and Oman firms. Further, the existence of audit committees in the GCC firm’s boards and ERM adoption significantly positively impacted the corporate governance by 3.42% and 1.7239% respectively. Keywords: Corporate Governance, Enterprise Risk Management, Firm Value, Simultaneity, Endogeneity, Gulf Cooperation Council (GCC) economies. JEL codes: C15, C21, C51, D57, F30, G21, G32, G34, K22, L21, M31, M41, N25, O16

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