The Role of Enterprise Risk Management as a Moderation in Increasing Company Value

Abstract

We try to explain the role of enterprise risk management as a moderation in increasing firm value (empirical study on manufacturing companies that have been listed on the Indonesia Stock Exchange (IDX) for the period of 2016-2018. in this study are manufacturing companies listed on the Indonesia Stock Exchange (BEI) during the period 2016 to 2018. Samples using the purposive sampling method, there are 14 companies as samples.The analytical tool used is multiple linear regression analysis with Moderated Regression Analysis (MRA) which aims to analyze the influence of corporate social responsibility (CSR), managerial ownership, independent commissioners and audit committees on firm value with enterprise risk management as a moderating variable using SPSS v.22 software The results of the study show evidence that: (1) Corporate social responsibility sponsibility has a positive and significant effect on firm value. (2) Managerial ownership has a positive and significant effect on firm value. (3) Independent commissioners have a positive and significant effect on company value. (4) The audit committee has a positive and significant effect on the value of the company. (5) Enterprise risk management is able to moderate the influence of corporate social responsibility on corporate value. (6) Enterprise risk management is able to moderate the influence of managerial ownership on firm value. (7) Enterprise risk management is able to moderate the influence of independent commissioners on company value. (8) Enterprise risk management is able to moderate the influence of the audit committee on the company's value.

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)

“…This shows that H5 is accepted. Results support research results done by Burhanuddin et al (2020) and S. .…”

“…This shows that H4 is rejected. Results contradicted with research by Burhanuddin et al (2020) and S. A. .…”

“…That same research later finds that Enterprise Risk Management is able to moderate the impact of managerial ownership towards Corporate Value. In addition to that, Burhanuddin et al (2020)…”

“…Meanwhile Desender & Lafuente (2009) states in their research that there is a positive and significant relationship between Good Corporate Governance and Enterprise Risk Management. Burhanuddin et al (2020) later found in their research that Enterprise Risk Management moderates the impact of Good Corporate Governance towards Corporate Value, as well as Rasmini (2019) finding that Enterprise Risk Management also moderates the impact of Managerial Ownership towards Corporate Value.…”

“…Given that, there are also several studies that find either no impact or no significant impact of enterprise risk management towards corporate value such as research done by Rivandi (2018) and Lestari et al (2020). In addition to these studies, Desender & Lafuente (2011) found in their research that good corporate governance gives a positive and significant impact towards enterprise risk management and Burhanuddin et al (2020) as well as Rasmini (2019) found that Enterprise Risk Management moderates the impact of corporate governance towards corporate value. Due to previous research that still finds either no impact or no significant impact of enterprise risk management towards corporate value, the writer has found interest in utilizing enterprise risk management as a moderating variable instead of an independent variable to also contribute towards the existing yet limited research on it.…”