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The Impact of Enterprise Risk Management, Corporate Social Responsibility, and Sustainability Report on Firm Value in Banking Sector of Indonesia, Malaysia and Thailand

Author

Listed:
  • Aldo AMERTA

    (Atma Jaya Catholic University of Indonesia)

  • Yanuar NANOK SOENARNO

    (Atma Jaya Catholic University of Indonesia)

Abstract

The purpose of this research was to determine the impact of disclosure on enterprise risk management (ERM), corporate social responsibility (CSR), and sustainability reports (SR) on firm value. Data for this research is taken from financial reports, annual reports and reports issued by firms. In this study, the sample used was banking firms listed on Indonesia, Malaysia and Thailand stock exchanges from 2019-2020. Sampling using purposive sampling technique with four criteria. Firms that meet these criteria are 36 Indonesian firms, 10 Malaysian firms and 8 Thai firms. The method of data analysis is multiple regression analysis using the Eviews software. The results show that enterprise risk management positively influences firm value. Meanwhile, the corporate social responsibility and sustainability report has no effect on the banking firm’s value. The results of this study can be used as a reference for potential investors to know the condition of each company they want to invest in.

Suggested Citation

  • Aldo AMERTA & Yanuar NANOK SOENARNO, 2022. "The Impact of Enterprise Risk Management, Corporate Social Responsibility, and Sustainability Report on Firm Value in Banking Sector of Indonesia, Malaysia and Thailand," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 3(5), pages 62-72, May.
    • Handle: RePEc:ahd:journl:v:3:y:2022:i:5:p:62-72
    DOI: 10.37945/cbr.2022.05.07
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    References listed on IDEAS

    as
    1. Yevgen Bogodistov & Veit Wohlgemuth, 2017. "Enterprise risk management: a capability-based perspective," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 18(3), pages 234-251, May.
    2. Hadri Mulya & Herbayu Prabowo, 2018. "The Impact of Sustainability Reports toward the Firm Value," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 637-647.
    3. Maretno Harjoto & Indrarini Laksmana, 2018. "The Impact of Corporate Social Responsibility on Risk Taking and Firm Value," Journal of Business Ethics, Springer, vol. 151(2), pages 353-373, August.
    4. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:637-647 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    firm value; enterprise risk management; corporate social responsibility; sustainability report;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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