Enterprise Risk Management (ERM), Corporate Governance Mechanism and Firm Value of the Financial Sector Company in Indonesia

Abstract. This study aims to examine the effect of corporate governance mechanism on firm value with enterprise risk management as an intervening variable on financial companies listed on the Indonesia Stock Exchange (IDX). Sample selection using purposive sampling. This study uses multiple regression analysis and simple regression to test the mediational relationship of ERM. The results of this study indicate that there is a significant influence between corporate governance mechanisms (institutional ownership, independent commissioner, and audit committee) with the firm value. But not significant in managerial ownership. The results of this study also indicate that there is a significant influence between corporate governance mechanisms (managerial ownership, independent commissioner, and audit committee) with the ERM. But it is not significant in institutional ownership. This study provides evidence that ERM mediating the effect of corporate governance mechanisms on firm value.Keyword : corporate governance mechanism, firm value, enterprise risk management. Abstrak. Penelitian ini bertujuan menguji pengaruh mekanisme corporate governance terhadap nilai perusahaan dengan enterprise risk management sebagai variabel intervening pada perusahaan perbankan yang terdaftar di Bursa Efek Indonesia (BEI). Penelitian ini menggunakan analisis regresi berganda dan regresi sederhana untuk menguji hubungan mediasional ERM. Deteksi mediasi menggunakan mediasi sederhana dengan cara pengujian causal steps. Teknik pemilihan sampel menggunakan purposive sampling. Hasil penelitian ini menunjukkan bahwa terdapat pengaruh signifikan antara mekanisme corporate governance (kepemilikan institusional, komisaris independen, dan komite audit) dengan nilai perusahaan. Namun tidak signifikan dalam kepemilikan manajerial. Hasil penelitian ini juga menunjukkan bahwa terdapatpengaruh signifikan antara mekanisme corporate governance (kepemilikan manajerial, komisaris independen, dan komite audit) dengan enterprise risk management. Namun tidak signifikan dalam kepemilikan institusional. Penelitian ini memberikan bukti bahwa ERM memediasi pengaruh mekanisme corporate governance terhadap nilai perusahaan.Kata kunci: Mekanisme corporate governance, nilai perusahaan, enterprise risk management.

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Empirical Analysis of Joint Impact of Enterprise Risk Management (ERM) and Corporate Governance (CG) on Firm Value

SSRN Electronic Journal ◽

10.2139/ssrn.3849160 ◽

2016 ◽

Author(s):

Ananth Rao

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Empirical Analysis ◽

Firm Value ◽

Enterprise Risk Management ◽

Enterprise Risk

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Effect of Free Cash Flow, Enterprise Risk Management Disclosure and Sustainability Report on Company Value With Corporate Governance as Moderating Variable

SENTRALISASI ◽

10.33506/sl.v10i2.1314 ◽

2021 ◽

Vol 10 (2) ◽

pp. 140

Author(s):

Nur Aeni Waly ◽

Noer Sasongko ◽

Fatchan Achyani

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Cash Flow ◽

Firm Value ◽

Enterprise Risk Management ◽

Free Cash Flow ◽

Good Corporate Governance ◽

Enterprise Risk ◽

The Relationship ◽

Sustainability Report

This study aims to analyze the effect of free cash flow, enterprise risk management disclosure, and sustainability report on the value of companies with good corporate governance as a moderating variable listed on the Jakarta Islamic Index companies during the 2015-2019 periods. The samples used were 57 companies in (JII) period 2015 – 2019. The data analysis method used is multiple regressions with the help of Spss 26 to analyze the moderating effect. The results of this analysis show that free cash flow has no effect on firm value, enterprise risk management disclosure does not affect firm value, sustainability report does not has an effect on firm value, and good corporate governance does not moderate the relationship between free cash flow and firm value, good corporate governance moderates the relationship between enterprise risk management disclosure on firm value, and good corporate governance does not affect firm value. moderation of the relationship between the sustainability report and the value of the company.

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

International Review of Advances in Business Management and Law ◽

10.30585/irabml.v1i1.66 ◽

2018 ◽

Vol 1 (1) ◽

pp. 34-50 ◽

Cited By ~ 1

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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PENGARUH ENTERPRISE RISK MANAGEMENT DISCLOSURE DAN CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN

Jurnal Benefita ◽

10.22216/jbe.v3i2.3113 ◽

2018 ◽

Vol 3 (2) ◽

pp. 137

Author(s):

Muhammad Rivandi

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Firm Value ◽

Sampling Method ◽

Stock Exchange ◽

Enterprise Risk Management ◽

Purposive Sampling ◽

Enterprise Risk

This study aims to examine the effect of enterprise risk management disclosure, board commissaries independent, and committed audit on firm value. The samples of this study are thirty companies listed in Indonesia Stock Exchange (IDX) selected by using purposive sampling method. The method of data analysis used in this study is panel regression models . Based on the hypotheses testing result, that the enterprise risk management disclosure significantly no effect on firm value, meanwhile board commissaries independent, and community audit have positive significant effect on firm valuePenelitian ini bertujuan untuk menguji pengaruh Enterprise Risk Management Disclosure, Dewan Komisaris Independen dan Komite Audit terhadap Nilai Perusahaan. Sampel dalam penelitian ini adalah tiga puluh perusahaan yang terdaftar di Bursa Efek Indonesia yang dipilih dengan menggunakan purposive sampling, Metode analisis yang digunakan adalah model regresi panel. Berdasarkan hipotesis hasil pengujian bahwa Enterprise risk management disclosure tidak berpengaruh terhadap nilai perusahaan, sedangkan Dewan komisaris independen dan komite audit berpengaruh positif dan signifikan terhadap nilai perusahaan

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ANALISIS FIRM VALUE PADA PERUSAHAAN YANG MENERAPKAN ENTERPRISE RISK MANAGEMENT (ERM)

Jurnal Riset Bisnis dan Investasi ◽

10.35697/jrbi.v1i3.57 ◽

2016 ◽

Vol 1 (3) ◽

pp. 118

Author(s):

Ahmad Zaky ◽

Mukaram Mukaram

Keyword(s):

Risk Management ◽

Financial Crisis ◽

Firm Value ◽

Financial Sector ◽

The United States ◽

Enterprise Risk Management ◽

Potential Growth ◽

Enterprise Risk ◽

Significant Difference ◽

The Impact

A risk is not an odd thing which is encountered in the business activities. Therefore, risk management is becoming a serious concern within the company. To anticipate the impact of risk on the company and in order to create the Firm Value, Enterprise Risk Management (ERM) has been developed. ERM is not just aimed at the creation of value for the company, ERM is believed to be able to manage the risks facing the company better and integrated through the business organization. However, in 2008, the financial crisis in the United States become consideration of the impact of the implementation of ERM in the firm, particularly in the financial sector. An unsuccessful management of the firms in the financial sector could have a major impact on the economy of a country that resulted in the financial crisis occurred and many of those who argue that this is due to an irrelevant and improper implementation of ERM. In order to examine this, this research conducted on the financial sector in Indonesia, especially the listed banking companies in Indonesia Stock Exchange. In this study, the samples are 37 banking firms listed on Indonesia Stock Exchanges to examining the differences Firm Value means between the banking firms which implement ERM and banking firm which do not implement ERM. The Results show that among the bank companies, there is no significant difference of the magnitude of the Firm Value of an existing company. In essence, the financial sector especially the banking industry in Indonesia, the implementation of ERM is not an appropriate solution of efforts to increase the value of the firm in order to increase the potential growth of the investment.

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PENGARUH ENTERPRISE RISK MANAGEMENT DISCLOSURE DAN CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN

Jurnal Benefita ◽

10.22216/benefita.v3i2.3113 ◽

2018 ◽

Vol 3 (2) ◽

pp. 137

Author(s):

Muhammad Rivandi

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Firm Value ◽

Sampling Method ◽

Stock Exchange ◽

Enterprise Risk Management ◽

Purposive Sampling ◽

Enterprise Risk

This study aims to examine the effect of enterprise risk management disclosure, board commissaries independent, and committed audit on firm value. The samples of this study are thirty companies listed in Indonesia Stock Exchange (IDX) selected by using purposive sampling method. The method of data analysis used in this study is panel regression models . Based on the hypotheses testing result, that the enterprise risk management disclosure significantly no effect on firm value, meanwhile board commissaries independent, and community audit have positive significant effect on firm valuePenelitian ini bertujuan untuk menguji pengaruh Enterprise Risk Management Disclosure, Dewan Komisaris Independen dan Komite Audit terhadap Nilai Perusahaan. Sampel dalam penelitian ini adalah tiga puluh perusahaan yang terdaftar di Bursa Efek Indonesia yang dipilih dengan menggunakan purposive sampling, Metode analisis yang digunakan adalah model regresi panel. Berdasarkan hipotesis hasil pengujian bahwa Enterprise risk management disclosure tidak berpengaruh terhadap nilai perusahaan, sedangkan Dewan komisaris independen dan komite audit berpengaruh positif dan signifikan terhadap nilai perusahaan

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

GIS Business ◽

10.26643/gis.v13i2.3298 ◽

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.

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IMPACT OF GOOD CORPORATE GOVERNANCE TOWARDS CORPORATE VALUE WITH ENTERPRISE RISK MANAGEMENT AS MODERATING VARIABLE (EMPIRICAL STUDY OF FINANCIAL COMPANIES LISTED IN IDX FOR THE PERIOD 2017-2019)

Jurnal Manajemen ◽

10.31937/manajemen.v13i1.1957 ◽

2021 ◽

Vol 13 (1) ◽

pp. 74-98

Author(s):

Lydia Sibarani ◽

Herlina Lusmeida

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Audit Committee ◽

Enterprise Risk Management ◽

Managerial Ownership ◽

Corporate Value ◽

Good Corporate Governance ◽

Enterprise Risk ◽

Multiple Regression Method ◽

The Impact

Abstract- This research aims to observe and analyze the impact of Good Corporate Governance towards Corporate Value as well as analyzing whether Enterprise Risk Management is able to moderate its impact. Good Corporate Governance is proxied by the presence of Independent Commissioners, Audit Committee, as well as Managerial Ownership. The population of this research includes all financial companies that publish their annual report in Bursa Efek Indonesia (BEI) over the period of 2017-2019. Data were analyzed using the multiple regression method and the moderated regression analysis. The result of this research found that Independent Commissioners and Audit Committee gives positive and significant impact towards Corporate Value while Managerial Ownership gives negative and insignificant impact towards Corporate Value. Enterprise Risk Management is not able to moderate the impact of Independent Commissioner and Managerial Ownership towards Corporate Value but is able to moderate the impact of the Audit Committee towards Corporate Value. Keywords: Audit Committee; Corporate Value; Corporate Governance; Independent Commissioner; Managerial Ownership

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ENTERPRISE RISK MANAGEMENT DAN INTELLECTUAL CAPITAL DISCLOSURE : PERSPEKTIF INVESTOR

Jurnal Reviu Akuntansi dan Keuangan ◽

10.22219/jrak.v8i2.38 ◽

2018 ◽

Vol 8 (2) ◽

pp. 187 ◽

Cited By ~ 1

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.

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