Enterprise Risk Management Disclosure Research Articles

The Role of Corporate Governance in Enterprise Risk Management (ERM) Disclosure

The purpose of this study is to determine the effect of the existence of the risk management committee, the reputation of the auditor, and the size of the board of commissioners on the disclosure of enterprise risk management (ERM). The existence of the risk management committee is measured by a dummy variable proxy, Which is used to gauge auditor reputation, and the total number of commissioners on the board is used to gauge the board's size. The measurement of ERM disclosure as a dependent variable is measured by disclosure items based on the ERM Framework issued by COSO (2004). Using the purposive sample approach, this study examined a subset of businesses that were listed in the LQ45 Index from 2012 to 2014. The data used is obtained from the annual report listed on the Indonesia Stock Exchange. There were 15 companies during 2012-2014 that met the criteria. The analysis method used is multiple linear regression analysis. The results showed that the existence of the risk management committee and the reputation of the auditor had a significant effect on the disclosure of enterprise risk management, while the size of the board of commissioners did not have a significant effect on the disclosure of enterprise risk management.

The Effect of Enterprise Risk Management (ERM) Disclosure on Firm Value Mediated by Profitability: Empirical Study on Banks Listed on the IDX 2018-2020

One important aspect of company value is ERM (Enterprise Risk Management). ERM can manage risks well so that company goals can be achieved. This study aims to see the effect of ERM disclosure on profitability, and the value of a company, as well as profitability on firm value. This study uses quantitative data with the panel data regression analysis method. Secondary data in the study comes from <em>audited annual financial reports of </em>financial companies in the form of banks, which have been <em>listed </em>on the IDX from 2018 to 2020, and can be downloaded from the bank's website. The data used is in 2018-2020 in annual form. The analysis technique in testing and proving the hypothesis used in the study is panel data regression analysis. The data is processed using the Eviews 12 application<em>. </em>The results showed that the variation in the following year's Company Value (Q Ratio<sub>t+1</sub>) can be explained by variations in the independent variables in the model, namely ERM Disclosure, ROA, Company Size, LDR, and Dividends the following year and the independent variables ERM Disclosure, ROA, Company Size, LDR, and Dividends the following year, together (simultaneously) affect the dependent variable Company Value the following year (Q Ratio<sub>t+1</sub>).

Determinant Analysis of the Value of LQ45 Index Companies Listed on the Indonesian Stock Exchange

This research aims to test and find empirical evidence regarding the influence of enterprise risk management (ERM) disclosure, company size, profitability, and leverage on company value. The type of data used is secondary data in the form of company annual reports on companies listed on the Indonesia Stock Exchange. The population in this study is the LQ45 index companies for 2020-2022, and the sampling technique used is the purposive sampling method. In this study there are four independent variables and one dependent variable. The dependent variable in this research is company value, while the independent variable consists of four variables, namely Enterprise Risk Management (ERM) disclosure, company size, Profitability, and Leverage. The analysis technique used is classical assumption testing consisting of a normality test, multicollinearity test, autocorrelation test, and heteroscedasticity test as well as hypothesis testing including multiple linear regression, individual parameter significant test (t-test), simultaneous significant test (F test) and coefficient of determination. The results of this research analysis state that Enterprise Risk Management disclosure has a negative and insignificant effect on company value, and company size has a negative and significant effect on company value. Meanwhile, Profitability and Leverage have a positive and significant effect on company value.

Do Enterprise Risk Management Disclosure and Intellectual Capital Disclosure Contribute to Firm Value?

This study aims to determine the effect on the value of mining companies listed on the Indonesia Stock Exchange (IDX) from the aspect of disclosure of enterprise risk management and disclosure of intellectual capital. The variables that are the focus of this study are the disclosure of enterprise risk management (X1) and intellectual capital disclosure (X2), which are measured using the enterprise risk management disclosure index and intellectual capital disclosure index. Meanwhile, firm value (Y), which is measured using Tobin's Q, acts as the dependent variable in this analysis. The sample of this study was selected through purposive sampling technique, so that there were 32 mining companies that became the sample of the study. The data used in this study were obtained through data collection techniques in the form of documentation. Then, this data is analyzed using data analysis techniques which include classical assumption tests, multiple linear regression tests, and hypothesis testing. The results showed that individually, the disclosure of enterprise risk management practices has a negative impact on firm value, while the disclosure of intellectual capital has a positive impact on the value of mining companies listed on the Indonesia Stock Exchange in 2022. Together, the disclosure of enterprise risk management practices and the disclosure of intellectual capital have a positive impact on the value of the same company in the same year.

ENTERPRISE RISK MANAGEMENT DISCLOSURE AND CEO CHARACTERISTICS: AN EMPIRICAL STUDY OF GO PUBLIC COMPANIES IN INDONESIA

Organizations can use enterprise risk management disclosures to share financial and non-financial risk information with external stakeholders. Chief Executive Officer (CEO) has a key role in enterprise risk management. This study examines the relationship between Indonesian CEOs’ characteristics and enterprise risk management disclosure. Purposive sampling is the basis for the process of gathering samples from the population. The research was conducted in 2020 and consisted of 475 non-financial Indonesian companies that were listed on the Indonesian Stock Exchange. The findings of previously released annual reports may be found on the websites of both the Indonesia Stock Exchange and individual companies. These secondary sources were used to compile the study data. The ISO framework index 31000:2018 is utilized to evaluate the Enterprise risk management (ERM) disclosure. Eviews10’s implementation of multiple regression serves as the basis for the analysis. The findings indicate that CEO overconfidence and CEO tenure influence enterprise risk management disclosure, while CEO financial expertise and CEO gender did not have an effect on enterprise risk management disclosure. The innovation of this research is investigating CEOs’ characteristics by psychological characteristics, namely CEO overconfidence and measurement of ERM disclosure based on the ISO 31000:2018 framework which is the latest standard of risk management.

How do We Assess Enterprise Risk Management Disclosure?

This study aims to empirically explore company size and corporate governance as determinants of risk management disclosure by investigating the effect of a combination of determinants on risk management disclosure practices in manufacturing companies. This study used a random sampling method. The sample for this research is 189 manufacturing companies (3 years of observation) listed on the Indonesia Stock Exchange for the 2019-2021 period. The COSO 2017 spreadsheet was used to measure the level of risk management disclosure. Panel data regression analysis using the Eviews program version 10 was used to examine the effect of company size and corporate governance on risk management disclosure. The results showed that company size, institutional ownership, and audit committee had a positive effect. In contrast, the size of the board of commissioners hurt risk management. The independent board of commissioners with managerial ownership shows results that do not affect risk management in manufacturing companies in Indonesia.

Enterprise risk management and firm value: Evidence from selected commercial banks in Sub-Saharan Africa

The study investigated the relationship between enterprise risk management and the firm value of quoted banks in Sub-Saharan Africa using an ex-post facto research design. A sample of twenty-seven (27) commercial banks was obtained from three (3) regions of Sub-Saharan Africa (Nigeria, South Africa, and Kenya). The dependent variable is the firm value (Tobin’s Q), while the independent variable is enterprise risk management (measured using enterprise risk management size, independence, and disclosures). Secondary data were obtained from the annual reports and accounts of the sampled banks in Sub-Saharan Africa from 2012-2021. Data obtained were analyzed using descriptive statistics (mean, median, standard deviation, kurtosis, skewness, and Pearson correlation), diagnostic statistics (variance inflation factor, heteroscedasticity, Ramsey regression specification-error test, Cameron and Trivedi’s decomposition of IM-test,) and inferential statistics (principal component analysis, fixed and random effects panel data regression). The fixed and random effects panel data regression results indicated that while enterprise risk management independence (t= 4.63; prob. = 0.000) and enterprise risk management disclosure (t= 2.68; prob. = 0.008) positively and significantly affect firm value, enterprise risk management size (t=-0.04; prob. = 0.967) insignificantly and negatively affects firm value in Sub-Saharan Africa. Among other recommendations, it was suggested that banks need to promote ERM practices as well as ensure risk compliance among banks in Sub-Saharan Africa. Additionally, banks should increase their level of independence of the risk committee while at the same time increasing their level of enterprise risk management practices in the region.

Pengaruh Good Corporate Governance dan Enterprise Risk Management Diskclosure terhadap Financial Distress

This study examines the effect of good corporate governance and enterprise risk management disclosure on financial distress, when managerial ownership, concentration of ownership, and the board of directors are included in good corporate governance. Using the purposive sampling method, the sample for this research is 162 data from 54 manufacturing companies listed on the Indonesia Stock Exchange for the 2019-2021 period. Descriptive statistical test, classical assumption test, logistic regression test, model feasibility test, hypothesis test are used as analytical tools. The results of this study indicate that managerial ownership has no significant positive effect on financial distress, ownership concentration has no significant negative effect on financial distress, and the board of directors has a significant positive effect on financial distress and enterprise risk management disclosure has a significant negative effect on financial distress.

Enterprise Risk Management, Board Financial Qualification, and Firm Value

Purpose : The intention of this study is to get empirical evidence regarding the effect of Enterprise Risk Management (ERM) disclosure on firm value and the effect of Board Financial Qualification (BFQ) in moderating Enterprise Risk Management (ERM) on firm value.
 Method : This research uses content analysis with 53 samples of financial company sectors, which are banks and insurance companies listed on the Indonesia Stock Exchange during 2020. The analysis technique used is Moderated Regression Analysis (MRA).
 Findings : The results show that ERM has a negative effect on firm value. This happens because the disclosure of risk management in banking and insurance companies in Indonesia is an obligation, so investors do not pay attention to the disclosure of risk management as a basis for assessing the company. In addition, this study also proves that BFQ is a variable that is able to moderate the effect of ERM on firm value. The board of directors with a financial education background has better knowledge of risk management thereby strengthening the implementation of ERM in a company.
 Novelty : This study using ERM disclosure items based on COSO 2017. While previous research based on COSO 2009.
 Keywords : Enterprise Risk Management; Firm Value, Board Financial Qualification; Moderated Regression Analysis (MRA)

Effectiveness Of Disclosure In Information Asymmetry In Companies LQ45

This study aims to determine the Disclosure of Enterprise Risk Management (ERM) and The Disclosure of Intellectual Capital (IC) that can affect the level of information asymmetry in LQ45 companies in 2019. This study uses multiple linear regression analysis method with data collection on ERM and IC disclosure using content analysis method. The results of this study indicate that ERM disclosure is significantly negatively related to the level of information asymmetry. Meanwhile, IC disclosure has an insignificant negative relationship with information asymmetry. The limitation of this study is that there are other variables that are no less important in determining information asymmetry besides ERM and IC. In addition, the sampling in this study was only limited to 33 samples, due to the limited time that the researcher had. Suggestions from this study are, it is hoped that further researchers can disclose IC and ERM using other methods such as focus groups, panel discussions, and peer reviews so that the results obtained are more objective in using the data.

The Effect of Enterprise Risk Management and Intellectual Capital Disclosure on Firm Value

The establishment of a company has a clear purpose. In carrying out business activities to achieve company goals, of course the company will face various risks. Risk can be said as the possible outcome of a process that does not meet expectations. ERM began to be recognized by the public after the Committee of Sponsoring Organization of The Treadway Commission (COSO) published it in 2004. ERM can be said to be a comprehensive and useful approach for managing overall corporate risk, reducing threat levels, and maximizing opportunities. Apart from enterprise risk management, intellectual capital is also an important non-financial information to be disclosed in a company's financial statements. Intellectual Capital is information and knowledge that can be applied to a job to create value in the company. The purpose of this study was to determine the effect of disclosure of enterprise risk management and intellectual capital on company value in LQ45 companies listed on the Indonesia Stock Exchange in the 2018-2020 period. The research method used in this research is hypothesis testing, namely to analyze the effect of enterprise risk management disclosures and company value intellectual capital. Based on the research conducted, it was found that enterprise risk management affects firm value in a negative direction, while intellectual capital has no effect on firm value.

Do Disclosure of Enterprise Risk Management and Intellectual Capital beneficial for Banking Companies?

This research aims to analyze and describe the relationship between Enterprise Risk Management Disclosure and Intellectual Capital to Company Value in the Banking sector. The population is banking sector companies listed on IDX during the period 2017 to 2021 consisting of 47 companies. The sampling technique used in this study was purposive sampling. 39 companies were selected in this study with 195 units of analysis obtained. Multiple regression analysis is used to analyze the data. The results showed that Enterprise Risk Management has a significant positive impact on Company Value. Meanwhile, Intellectual Capital has a significant negative impact on the Value of the Company. Meanwhile, Enterprise Risk Management and Intellectual Capital together have a significant impact on Company Value.

Literatur Review Pengaruh Reputasi Auditor, Good Corporate Governance dan Komite Manajemen Risiko Terhadap Pengungkapan Enterprise Risk Management

This literature review article entitled the influence of auditor reputation, good corporate governance and risk management committee on enterprise risk management disclosure is a scientific article that aims to build a research hypothesis on the influence between variables that will be used in further research. The method of writing this literature review article is the library research method, which is sourced from Google Scholar online media and other academic online media. The results of this literature review article are that the auditor's reputation has an effect on the disclosure of enterprise risk management, good corporate governance has an effect on the disclosure of enterprise risk management and the risk management committee has an effect on the disclosure of enterprise risk management

DO RISK MANAGEMENT DISCLOSURE AFFECT FIRM VALUE THROUGH PROFITABILITY?

Investors are parties who determine a company’s sustainability because the funds invested by investors are a source of funds for the company. Investors do not only consider financial statements but also the nonfinancial side, namely the value of a company and how the company manages risk. The company’s value can be seen from the fair market value of the share price. If the stock price of a company is high, the value of the company is also high, thereby increasing investor confidence in investing. Therefore, this study examines the effect of enterprise risk management disclosures on firm value through profitability. The design of this research is quantitative research with hypothesis testing. The population in this study are banking companies listed on the Indonesia Stock Exchange from 2018 – 2020. The sampling technique used is purposive sampling so that a sample of 40 companies is obtained. The research period used is three years (2018 – 2020) which has total sample data is 120. The analytical method used is multiple linear regression using the SPSS version 23 application to process the data. The test results prove that the Company’s Risk Management Disclosure positively affects Firm Value and Profitability. While profitability does not affect firm value and does not have a significant impact on mediating the influence of corporate risk management on firm value.
 Keywords: enterprise risk management disclosure, firm value, profitability

Pengaruh Dewan Komisaris, Leverage, Kepemilikan Publik, Dan Firm Size Terhadap Pengungkapan ERM

This research aims to obtain the empirical evidence regarding the effect of size of board commisioners, leverage, public ownership, and firm size on (ERM) enterprise risk management disclosure on manufacturing companies listed in Indonesia Stock Exchange in 2016-2018. This is a quantitative study used secondary data of 144 companies listed on the Indonesia Stock Exchange over the period of 2016-2018 that have been selected by using purposive sampling techniques. The data was analyzed using panel data regression analysis with random effect model helped by Eviews 11lite and Microsoft Excel 2019. The findings of this study showed that size of board commissiones and leverage have a significant effect on Enterprise Risk Management Disclosure , while public ownership and firm size has no significant effect on on Enterprise Risk Management Disclosure. The implication of this study is the need to increase the implementation of ERM which can help to identify potential events that inflicts negative impacts on firm.

PENGARUH ARUS KAS OPERASI, LEVERAGE , PROFITABILITAS DAN ENTERPRISE RISK MANAGEMENT (ERM) DISCLOSURE TERHADAP FINANCIAL DISTRESS PERUSAHAAN MANUFAKTUR SUB SEKTOR INDUSTRI DASAR DAN KIMIA YANG TERDAFTAR DI BEI TAHUN 2018-2020

This research was conducted to determine the effect partially or simultaneously between operating cash flow, leverage , profitability and enterprise risk management on financial distress in manufacturing companies in the basic industry and chemical sector listed on the Indonesia Stock Exchange for the 2018-2020 periods. The data analysis technique used is quantitative research methods with descriptive and verification approaches. The type of data used is secondary data obtained from the Indonesia Stock Exchange (BEI). The method of determining the sample of this study using purposive sampling. The population in this study were 78 companies. Companies that meet the criteria to be sampled in this study are 19 companies.The results of the study partially show that operating cash flow and enterprise risk management disclosure have a significant effect on financial distress. Meanwhile, leverage and profitability do not have a significant effect on financial distress. While simultaneously operating cash flow, leverage , profitability and enterprise risk management disclosure have a significant effect on financial distress.

The Indonesian Investors’ Responses toward ERM Disclosure

In Indonesia, enterprise risk management (ERM) disclosure is mandatory and is expected to be substantial risk mitigation for investors. However, it becomes a question of whether the investors respond positively to ERM disclosure. ERM implementation requires the company's resources that should impact its profitability.

Adakah Korelasi Enterprise Risk Management (ERM), Profitabilitas Dan Leverage Keuangan Terhadap Return Saham?

Disclosure of Enterprise Risk Management, Profitability and Financial Leverage is an important instrument to provide information to investors, thereby attracting interest in investing in companies that affect the company's stock returns. This study examines the effect of Enterprise Risk Management Disclosure, Profitability, Financial Leverage on Stock Return. The sample in this study using the purposive sampling method was obtained as many as 65 companies from the Manufacturing Sector listed on the Indonesia Stock Exchange in 2020. The data analysis techniques used were descriptive analysis and multiple linear regression analysis. The results of this study indicate that ERM disclosure has no effect on Stock Return, while Profitability and Financial Leverage has an effect on Stock Return. The results of this study indicate that investors in making investments do not pay attention to whether the company's risk management has been managed properly or not. Investors are more concerned with financial information, such as profitability and leverage. Financial information such as profitability and leverage can provide confidence for investors in placing their capital.

COMPANY SIZE AS A MODERATING VARIABLE ON ENTERPRISE RISK MANAGEMENT DISCLOSURE OF BANKING COMPANIES IN INDONESIA

Purpose: This research aims to review the relationship of the board of commissioners, the ownership concentration, the audit committee meetings, and the risk management committee with enterprise risk management disclosure moderated by the company size.Method: The population for this study was 46 banking companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019. The sample selection was carried out using the purposive sampling technique which resulted in 39 companies with 117 analytical units performed using documentation techniques. Data were analyzed using moderating regression analysis based on Ordinary Least Square (OLS).Findings: The outcome of this research showed that the board of commissioners and audit committee meetings had a positive effect on the enterprise risk management disclosure while the ownership concentration and risk management committee did not affect the enterprise risk management disclosure. The company size can moderate the influence of the board of commissioners and audit committee meetings but is not able to moderate the influence of the ownership concentration and risk management committee. The findings prove companies that have a good board of commissioners and a competent audit committee can trigger companies to disclose enterprise risk management broadly.Novelty: This study adds company size as moderating variable. Based on the investment concept, namely high-risk high return, and low-risk low return. When the company wants to get big returns, the company will face big risks as well. This is directly proportional to companies with large sizes. The bigger company so the higher the risks faced by the company. This is also related to the disclosure of the risks.

Pengungkapan Enterprise Risk Management Terhadap Nilai Perusahaan

This study aims to determine the effect of Enterprise Risk Management disclosure on firm value with firm size and industry type as control variables. Sample of this study is all company of various sectors which listed on the Indonesia Stock Exchanged (IDX) during 2017. The method used in this study is quantitative by collecting documentation through annual reports. Enterprise Risk Management was analyzed using content analysis method and firm value was proxied using Tobin’s Q. Sample selection using Slovin method. Data were analyzed using multiple linear regression and then data processed using SPSS 22. The result of this study show that Enterprise Risk Management disclosure has no influence on firm value.