The Ability of Managerial Ownership Moderating of The Effect of Enterprise Risk Management (ERM) Disclosure Toward The Company Value

Abstract

This study aims to test and prove managerial ownership to moderate the relationship of Enterprise Risk Management (ERM) disclosure toward the company value. The management always tried to reveal private information, especially good news which according to the consideration of the company was very interested by the investors and shareholders. This research will be conducted on public companies and published annual report in 2014-2016. This research was using purposive sampling technique so that obtained 57 data observation. Moderated Regression Analysis (MRA) with panel data regression models are used to analyze data. The results showed that ERM disclosure had no effect on company value. The relationship between ERM disclosures to company value is also not able to be moderated by managerial ownership.

Enterprise Risk Management Disclosure and Ceo Characteristics: An Empirical Study of Go Public Companies in Indonesia

“…The National Committee on Governance Policy then produced Governance-Based Risk Management Guidelines in 2012. Indonesian regulators design guidelines to improve company risk reporting (Trisnawati et al, 2019). Based on the results of a survey performed by the Center for Risk Management Studies (CRMS) regarding the use of the risk management framework in Indonesia in 2018, it was determined that 67.5% of enterprises in Indonesia had implemented ISO 31000 risk management framework, while only 15% of enterprises in Indonesia used Committee of Sponsoring Organizations of the Treadway Commissions (COSO) ERM.…”