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

2016 ◽  
Author(s):  
Ananth Rao
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Empirical Analysis ◽  
Firm Value ◽  
Enterprise Risk Management ◽  
Enterprise Risk

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

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

SENTRALISASI ◽  
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.

PENGARUH ENTERPRISE RISK MANAGEMENT DISCLOSURE DAN CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN

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

<p><em>This study aims to examine the effect of enterprise risk management disclosure, board commissaries independent, and committed audit </em><em>on</em><em> firm value. The samples of this study are thirty companies listed in Indonesia Stock Exchange (IDX) selected by using purposive sampling method. </em><em>The method of d</em><em>ata analysis</em><em> </em><em>used i</em><em>n this study is</em><em> </em><em>panel </em><em>regressio</em><em>n </em><em>models</em><em> </em><em>. Based on the hypothes</em><em>e</em><em>s test</em><em>ing</em><em> </em><em>result,</em><em> 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 value</em><em></em></p><p>Penelitian ini bertujuan untuk menguji pengaruh<em> Enterprise Risk Management Disclosure, </em>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 <em>purposive sampling</em>, Metode analisis yang digunakan adalah model regresi panel. Berdasarkan hipotesis hasil pengujian bahwa <em>Enterprise risk management disclosure</em> tidak berpengaruh terhadap nilai perusahaan, sedangkan Dewan komisaris independen dan komite audit berpengaruh positif dan signifikan terhadap nilai perusahaan</p>

PENGARUH ENTERPRISE RISK MANAGEMENT DISCLOSURE DAN CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN

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

<p><em>This study aims to examine the effect of enterprise risk management disclosure, board commissaries independent, and committed audit </em><em>on</em><em> firm value. The samples of this study are thirty companies listed in Indonesia Stock Exchange (IDX) selected by using purposive sampling method. </em><em>The method of d</em><em>ata analysis</em><em> </em><em>used i</em><em>n this study is</em><em> </em><em>panel </em><em>regressio</em><em>n </em><em>models</em><em> </em><em>. Based on the hypothes</em><em>e</em><em>s test</em><em>ing</em><em> </em><em>result,</em><em> 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 value</em><em></em></p><p>Penelitian ini bertujuan untuk menguji pengaruh<em> Enterprise Risk Management Disclosure, </em>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 <em>purposive sampling</em>, Metode analisis yang digunakan adalah model regresi panel. Berdasarkan hipotesis hasil pengujian bahwa <em>Enterprise risk management disclosure</em> tidak berpengaruh terhadap nilai perusahaan, sedangkan Dewan komisaris independen dan komite audit berpengaruh positif dan signifikan terhadap nilai perusahaan</p>

scholarly journals Mekanisme Corporate Governance Terhadap Nilai Perusahaan Dengan Enterprise Risk Management Sebagai Variabel Intervening

Wahana ◽  
2020 ◽  
Vol 23 (1) ◽  
pp. 59-80
Author(s):  
J Jamaluddin ◽  
Suwardi Bambang Hermanto ◽  
F Fidiana
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Firm Value ◽  
Audit Committee ◽  
Enterprise Risk Management ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Enterprise Risk ◽  
Corporate Governance Mechanism

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.

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 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)

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

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

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