Proceedings of the 3rd International Conference on Economics, Business and Economic Education Science, ICE-BEES 2020, 22-23 July 2020, Semarang, Indonesia

Research Article

Enterprise Risk Management (ERM), Corporate Governance Mechanism and Firm Value of the Financial Sector Company in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.22-7-2020.2307930,
        author={Raudhatul  Hidayah and Abdul  Rohman and Agus  Purwanto and Bestari Dwi Handayani},
        title={Enterprise Risk Management (ERM), Corporate Governance Mechanism and Firm Value of the Financial Sector Company in Indonesia},
        proceedings={Proceedings of the 3rd International Conference on Economics, Business and Economic Education Science, ICE-BEES 2020, 22-23 July 2020, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICE-BEES},
        year={2021},
        month={5},
        keywords={erm corporate governance mechanism firm value},
        doi={10.4108/eai.22-7-2020.2307930}
    }
    
  • Raudhatul Hidayah
    Abdul Rohman
    Agus Purwanto
    Bestari Dwi Handayani
    Year: 2021
    Enterprise Risk Management (ERM), Corporate Governance Mechanism and Firm Value of the Financial Sector Company in Indonesia
    ICE-BEES
    EAI
    DOI: 10.4108/eai.22-7-2020.2307930
Raudhatul Hidayah1,*, Abdul Rohman2, Agus Purwanto2, Bestari Dwi Handayani3
  • 1: Universitas Andalas, Indonesia
  • 2: Universitas Diponegoro, Indonesia
  • 3: Universitas Negeri Semarang, Indonesia
*Contact email: lovelyraudha@yahoo.com

Abstract

Firm value is the investor's perceptive of the company's success rate. Many factors affect the high value of the firm. This study aimed at examining the effect of Enterprise Risk Management (ERM) and corporate governance mechanisms on firm value. Research population consisted of financial sector companies listed on the Indonesia Stock Exchange, which were selected by a purposive sampling technique. This study performed an Ordinary Least Square (OLS) Regression analysis. The study proved significant effects of ERM and corporate governance mechanisms (managerial ownership, institutional ownership, independent commissioners and audit committees) on firm value.