The Impact of the Implementation of Enterprise Risk Management Dimensions on Increasing Company Value

Crossmark

Click to verify publication status

Authors

  • Ayu Lestari Faculty of Economics and Business, Universitas Lampung
  • Nurhadianto Institut Informatika dan Bisnis Darmajaya

Keywords:

Firm Value, Enterprise, Risk Management, Risk Response

Abstract

The purpose of this study is to evaluate how enterprise risk management affects the value of the company. Secondary data were employed in this investigation. Using a sample of 308 manufacturing firms listed between 2020 and 2023 on the Indonesian Stock Exchange, the sampling technique employed is Purposive Sampling. Multiple linear regression analysis is the strategy utilized for data analysis. As demonstrated by the findings, the firm value was positively impacted by the Risk Assessment dimension, but not by the Internal Environment, Objective Setting, Risk Recognition, Risk Respons, Control Operations, Information, and Communication, or Monitoring dimensions.

Downloads

Download data is not yet available.

Author Biographies

  • Ayu Lestari, Faculty of Economics and Business, Universitas Lampung

    Mey Ayu Lestari
    Faculty of Economics and Business, Universitas Lampung, Lampung, Indonesia

  • Nurhadianto, Institut Informatika dan Bisnis Darmajaya
    Institut Informatika dan Bisnis Darmajaya Email yang diverifikasi di darmajaya.ac.id Akuntansi Sektor Publik

References

Achmad, T., Ghozali, I., & Pamungkas, I. D. (2022). Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia. Economies, 10(1), 1–16. https://doi.org/10.3390/economies10010013

Agustina, L., & Baroroh, N. (2016). The relationship between Enterprise Risk Management (ERM) and firm value mediated through the financial performance. Review of Integrative Business and Economics Research, 5(1), 128–138.

Alawattegama, K. K. (2020). Enterprise Risk Management Practices and Its Impact on Firm Performance: Evidence From Sri Lankan Insurance Industry. International Journal of Engineering Technologies and Management Research, 6(12), 11–21. https://doi.org/10.29121/ijetmr.v6.i12.2019.469

Aragón-Correa, J. A., García-Morales, V. J., & Cordón-Pozo, E. (2007). Leadership and organizational learning’s role on innovation and performance: Lessons from Spain. Industrial Marketing Management, 36(3), 349–359. https://doi.org/10.1016/j.indmarman.2005.09.006

Demidenko, E., & McNutt, P. (2010). The ethics of enterprise risk management as a key component of corporate governance. International Journal of Social Economics, 37(10), 802–815. https://doi.org/10.1108/03068291011070462

Dow, S. (2019). Risk and uncertainty. The Elgar Companion to John Maynard Keynes, 3(12), 255–261. https://doi.org/10.4337/9781788118569.00051

Fauziah, I. N., & Sudiyatno, B. (2020). Pengaruh Profitabilitas dan Pertumbuhan Perusahaan terhadap Nilai Perusahaan dengan Struktur Modal sebagai Variabel Moderasi(Studi Kasus pada Perusahaan Manufaktur yang Terdaftar di BEI Periode 2016-2018). Dinamika Akuntansi, Keuangan Dan Perbankan, 9(2), 107–118. https://www.unisbank.ac.id/ojs/index.php/fe9/article/download/8284/3193/

Frank. (1994). George M. Ownership structure and corporate performance in Japan.

Ghozali, R. P., Saputra, H., Apriadin Nuriawan, M., Suharjito, Utama, D. N., & Nugroho, A. (2019). Systematic literature review on decision-making of requirement engineering from agile software development. Procedia Computer Science, 157, 274–281. https://doi.org/10.1016/j.procs.2019.08.167

Giannarakis, G., Zafeiriou, E., Arabatzis, G., & Partalidou, X. (2018). Determinants of Corporate Climate Change Disclosure for European Firms. Corporate Social Responsibility and Environmental Management, 25(3), 281–294. https://doi.org/10.1002/csr.1461

Handayani, B. D. (2017). Mekanisme Corporate Governance, Enterprise Risk Management, Dan Nilai Perusahaan Perbankan. Jurnal Keuangan Dan Perbankan, 21(1), 70–81. https://doi.org/10.26905/jkdp.v21i1.1228

Hoyt, R. E., & Liebenberg, A. P. (2001). The Value of ERM Synopsis. The Journal of Risk and Insurance, 78(4), 798. http://ssrn.com/abstract=1155218

Husam, A. khadash A. (2017). COSO Enterprise Risk Management Implementation in Jordanian Commercial Banks and its Impact on Financial Performance Abstract : COSO Enterprise Risk Management Implementation in Jordanian Commercial Banks and Its Impact on Financial Performance, 1, 5–23.

Idx. (2024). Laporan Keuangan dan Tahunan. Www.Idx.Co.Id. https://www.idx.co.id/id/perusahaan-tercatat/laporan-keuangan-dan-tahunan

Iswajuni, I., Manasikana, A., & Soetedjo, S. (2018). The effect of enterprise risk management (ERM) on firm value in manufacturing companies listed on Indonesian Stock Exchange year 2010-2013. Asian Journal of Accounting Research, 3(2), 224–235. https://doi.org/10.1108/AJAR-06-2018-0006

Ko, E.-J., & McKelvie, A. (2018). Signaling for more money: The roles of founders’ human capital and investor prominence in resource acquisition across different stages of firm development. Journal of Business Venturing, 33(4), 438–454. https://doi.org/https://doi.org/10.1016/j.jbusvent.2018.03.001

Lindenberg, E. B., & Ross, S. A. (1981). Tobin’s $q$ Ratio and Industrial Organization. The Journal of Business, 54(1), 1. https://doi.org/10.1086/296120

Margareth, H. (2017). Manajemen Laba. Eori & Model Empiris, 32.

Martin, J., Petty, W., & Wallace, J. (2009). Shareholder Value Maximization—Is There a Role for Corporate Social Responsibility? Journal of Applied Corporate Finance, 21(2), 110–118. https://doi.org/10.1111/j.1745-6622.2009.00232.x

Mcshane, M. (2010). Journal of Accounting , Auditing &. July. https://doi.org/10.1177/0148558X11409160

Meizaroh, & Lucyanda, J. (2012). Pengaruh Corporate Governance, Kinerja Perusahaan, Dan Umur Perusahaan Terhadap Pengungkapan Modal Intelektual. Jurnal Media Riset Akuntansi, 2(1), 65–81.

Meng-tao, C., Da-peng, Y., Wei-qi, Z., & Qi-jun, W. (2023). How does ESG disclosure improve stock liquidity for enterprises — Empirical evidence from China. Environmental Impact Assessment Review, 98, 106926. https://doi.org/https://doi.org/10.1016/j.eiar.2022.106926

Mishra, B. K., Rolland, E., Satpathy, A., & Moore, M. (2019). A framework for enterprise risk identification and management: the resource-based view. Managerial Auditing Journal, 34(2), 162–188. https://doi.org/10.1108/MAJ-12-2017-1751

Munawwaroh, A. F., Fatoni, N., & Warno, W. (2021). Pengaruh Pengungkapan Enterprise Risk Management terhadap Nilai Perusahaan dengan Profitabilitas sebagai Variabel Moderasi. Eksos, 17(2), 81–93. https://doi.org/10.31573/eksos.v17i2.368

Nia, S. (2022). No Title.

Norti, F. D. (2019). Analisi Pengaruh Pengungkapan Enterprise Risk Management terhadap Nilai Perusahaan pada Perusahaan Konstruksi Bangunan yang Terdaftar di Bursa Efek Indonesia Periode 2013-2017. Digital Repository UNILA, 2017.

Paula Monteiro, A., Vale, J., Leite, E., Lis, M., & Kurowska-Pysz, J. (2022). The impact of information systems and non-financial information on company success. International Journal of Accounting Information Systems, 45(April 2021), 100557. https://doi.org/10.1016/j.accinf.2022.100557

Perrault, & MCcarthy. (2018). Review of SUply Chain Risk Management (Vol. 48).

Ross, Westerfield, J. (2018). Fundamentals of Corporate Finance. Fundamentals of Corporate Finance. https://doi.org/10.12737/textbook_5b742ef92eda62.57813862

Saeidi, P. (2019). The impact of enterprise risk management on competitive advantage by moderating role of information technology. Computer Standards and Interfaces, 63(April), 67–82. https://doi.org/10.1016/j.csi.2018.11.009

Shad, M. K., & Lai, F.-W. (2019). Enterprise Risk Management Implementation and Firm Performance: Evidence from the Malaysian Oil and Gas Industry. International Journal of Business and Management. https://api.semanticscholar.org/CorpusID:201325960

Simsekler, M. C. E., Ward, J. R., & Clarkson, P. J. (2018). Evaluation of system mapping approaches in identifying patient safety risks. International Journal for Quality in Health Care, 30(3), 227–233. https://doi.org/10.1093/intqhc/mzx176

Stephen A. Ross The. (1997). The Determination of Financial Structure: The Incentive-Signalling Approach. CFA Digest, 27(1), 5–7. https://doi.org/10.2469/dig.v27.n1.2

Wahyuni, R. S., & Novita, N. (2021). COSO ERM Framework as the Basis of Strategic Planning in Islamic Banking. Jurnal Keuangan Dan Perbankan, 25(1), 21–35. https://doi.org/10.26905/jkdp.v25i1.5123

Winarsih, Kholida, & Suhendi, C. (2024). The Effect of Digital and Human Capital Transformation on SME Performance with Accounting Information Systems as an Intervening Variable BT - Advances in Internet, Data & Web Technologies (L. Barolli (ed.); pp. 20–30). Springer Nature Switzerland.

Wong, J. B., & Zhang, Q. (2022). Stock market reactions to adverse ESG disclosure via media channels. British Accounting Review, 54(1). https://doi.org/10.1016/j.bar.2021.101045

Wüstenhagen, R., & Menichetti, E. (2012). Strategic choices for renewable energy investment: Conceptual framework and opportunities for further research. Energy Policy, 40(1), 1–10. https://doi.org/10.1016/j.enpol.2011.06.050

Yoshi, Y., Anggryeani, S., Silaban, E. M., & Purba, M. I. (2020). Program Studi Akuntansi,Fakultas Ekonomi,Universitas Prima Indonesia,Sumatera Utara,Indonesia. 14, 508–521.

Zeina, N., & Sari, M. (2019). TERHADAP KUALITAS KINERJA KARYAWAN ( Studi Pada Hotel Ibis Bandung ). 1(June 2018).

Published

2024-04-04

Issue

Section

Articles

How to Cite

Ayu Lestari, M., & Nurhadianto, T. (2024). The Impact of the Implementation of Enterprise Risk Management Dimensions on Increasing Company Value. Journal Economic Business Innovation, 1(1), 34-42. https://doi.org/10.69725/jebi.v1i1.5

Share

Similar Articles

21-30 of 61

You may also start an advanced similarity search for this article.