The Effect of Enterprise Risk Management, Firm Size, Profitability, Leverage, and Managerial Ownership on Firm Value

Authors

  • Sundus Nur Halimah -
  • Novera Kristianti Maharani Universitas Esa Unggul, Arjuna Street Number 9, Kebon Jeruk, Jakarta Barat 11510, Indonesia
  • Novera Kristianti Maharani Universitas Esa Unggul, Arjuna Street Number 9, Kebon Jeruk, Jakarta Barat 11510, Indonesia

DOI:

https://doi.org/10.21009/Wahana.19.012

Keywords:

enterprise risk management, firm size, profitability, leverage, managerial ownership, firm value

Abstract

The phenomenon of a Tobin's q value of less than 1 indicates a decrease in firm value. Knowing the effect of ERM (Enterprise Risk Management), firm size as proxied by ln (total assets), profitability as proxied by return on assets, leverage as proxied by debt to equity ratio, and managerial ownership on firm value by Tobin's q in conventional commercial banks listed on the IDX in 2017-2022 is the aim of the study. Quantitative methods used in this study and data analysis using SPSS 26. The number of samples is 84 data. Firm value impacted simultaneous by ERM, firm size, profitability, leverage, managerial ownership. In the partial test, firm value have no impacted by ERM and managerial ownership, the firm value has a significant negative impacted by firm size, while the firm value show results that have a significant positive impacted by profitability and leverage variables. Other variables can be added in further study such as bank health calculation ratios, including non-performing loans, so that you can get a regression model with high value.

References

Iswajuni, I., Manasikana, A., & Soetedjo, S. (2018). The effect of enterprise risk management (ERM) on firm value in manufacturing companies listed on Indonesian Stock Exchange year 2010-2013. Asian Journal of Accounting Study, 3(2), 224–235. https://doi.org/10.1108/AJAR-06-2018-0006
Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/doi.org/10.1016/0304-405X(76)90026-X
Khafagy, A. (2019). Finance, Distribution and The Economic Objective of Financial Cooperative Institutions. Annals of Public and Cooperative Economics, 90(3), 487–511. https://doi.org/10.1111/apce.12216

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Published

2024-07-01

How to Cite

Nur Halimah, S., Kristianti Maharani, N., & Kristianti Maharani, N. (2024). The Effect of Enterprise Risk Management, Firm Size, Profitability, Leverage, and Managerial Ownership on Firm Value. Jurnal Ilmiah Wahana Akuntansi, 19(1), 18–32. https://doi.org/10.21009/Wahana.19.012

Issue

Vol. 19 No. 1 (2024): Jurnal Ilmiah Wahana Akuntansi

Section

Articles

License

Creative Commons License
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