• Sarsiti Fakultas Ekonomi, Universitas Surakarta
  • Juni Trisnowati Fakultas Ekonomi, Universitas Surakarta
  • Erni Widiastuti Fakultas Ekonomi, Universitas Surakarta



Company Characteristics, Increase Company Value,, Corporate Risk Management, IDX IN 2016-2020


The research objectives are based on the research of Bohnert, A., et al., 2023 and Nguyen, Lan, et al. 2021, namely to examine the impact of size and leverage on firm value with enterprise risk management (ERM) as mediation. The sample technique used is purposive sampling, and the data used is secondary data from annual financial report data listed on the Indonesia Stock Exchange from 2016-2020, totaling 15 property and real estate industry sectors. Path analysis and the Sobel test are used in the data analysis technique. The findings indicated that: (1) firm size has a negative and insignificant impact on ERM; (2) leverage has a positive and insignificant impact on ERM; (3) firm value is positively but insignificantly impacted by company size and leverage; and (4) ERM has a negative and insignificant impact on firm value. (5) The impact of firm size and leverage on firm value is not mediated by ERM


Aggarwal, D., & Padhan, P. C. (2017). Impact of capital structureon firm value: Evidence from the Indian hospitality industry. Theoretical Economics Letters, 7(4), 982–1000.

Aditya, O., & Naomi, P. (2017). Penerapan Manajemen Risiko Perusahaan danNilai Perusahaan di Sektor Konstruksi dan Properti. Esensi: Jurnal Bisnis dan Manajemen, 7(2), 167–180.

Ai, J., Brockett, P.L., Wang, T.: Optimal enterprise risk management and decision making with shared and dependent risks. J. Risk Insur. (2016).

Berry-Stoelzle, T.R., Xu, J.: Enterprise risk management and the cost of capital. J. Risk Insur. (2016).

Bohnet, A., Nadine Gatzert, Robert E. Hoyt & Philipp Lechner, 2017. The relationship between enterprise risk management, value and firm characteristics based on the literature. ZversWiss.

Beasley, M.S., Clune, R., Hermanson, D.R.: Enterprise risk management: an empirical analysis of factors associated with the extent of implementation. J. Account. Public Policy 24(6), 521–531 (2005)

Feng-Li Lin & Tsangyao Chang. (2008). Does Family Ownership Affect Firm Value in Taiwan? A Panel Threshold Regression Analysis. International Research Journal of Finance and Economics, 42, 45-53.

Committee of Sponsoring Organizations of the Treadway Commission (COSO): Enterprise risk management – integrated framework (2004)., Accessed 14 June 2016

Committee of Sponsoring Organizations of the Treadway Commission (COSO): Strengthening enterprise risk management for strategic advantage (2009)., Accessed 14 June 2016

Dickinson, G.: Enterprise risk management: its origins and conceptual foundation. Geneva Pap. Risk Insur. Issues Pract. 26(3), 360–366 (2001)

Devi, S., Budiasih, I. G. N., & Badera, I. D. N. (2017). Pengaruh Pengungkapan Enterprise Risk Management dan Pengungkapan Intellectual Capital terhadap Nilai Perusahaan (The Effect of Enterprise Risk Management Disclosure and Intellectual Capital Disclosure on Firm Value). Jurnal Akuntansi Dan Keuangan Indonesia, 14(1), 20–45.

Dharmaputra, I. G. N. A., Rustiarini, N. W., & Dewi, N. P. S. (2022). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Likuiditas, dan Pertumbuhan Perusahaan Terhadap Nilai Perusahaan. KARMA (Karya Riset Mahasiswa Akuntansi), 2(1), 2141–2149

Farrell, M., Gallagher, R.: The valuation implications of enterprise risk management maturity. J. Risk Insur. 85(3), 625–657 (2015)

Gatzert, N., Martin, M.: Determinants and value of enterprise risk management: empirical evidence from the literature. Risk Manag. Insur. Rev. 18(1), 29–53 (2015)

Gatzert, N., Wesker, H.: A comparative assessment of Basel II/III and Solvency II. Geneva Pap. Risk Insur. Issues Pract. 37(2012), 539–570 (2012)

Golshan, N., Rasid, S.: Determinants of enterprise risk management adoption: an empirical analysis of Malaysian public listed firms. Int. J. Soc. Hum. Sci. 6, 119–126 (2012)

Gordon, L.A., Loeb, M.P., Tseng, C.-Y.: Enterprise risk management and firm performance: a contingency perspective. J. Account. Public Policy 28(4), 301–327 (2009)

Grace, M.F., Leverty, J.T., Phillips, R.D., Shimpi, P.: The value of investing in enterprise risk management. J. Risk Insur. 82(2), 289–316 (2015)

Heckman, J.J.: Dummy endogenous variables in a simultaneous equation system. Econometrica 46(4), 931–959 (1978)

Heckman, J.J.: Sample selection bias as a specification error. Econometrica 47(1), 153–161 (1979)

Hoyt, R.E., Liebenberg, A.P.: The value of enterprise risk management. J. Risk Insur. 78(4), 795–822 (2011)

Hoyt, R.E., Liebenberg, A.P.: Evidence of the value of enterprise risk management. J. Appl. Corp. Finance 27(1), 41–47 (2015)

Hoyt, R.E., Liebenberg, A.P.: Evidence of the value of enterprise risk management. J. Appl. Corp. Finance 27(1), 41–47 (2015).

Husna, A., & Satria, I. 2019. Effects of Return on Asset, Debt To Asset Ratio, Current Ratio, Firm Size, and Dividend Payout Ratio on Firm Value. International Journal of Economics and Financial Issues, 9(5), 50–54.

Iswajuni, Soegeng Soetedjo, and Arina Manasikana. (2018). Pengaruh Enterprise Risk Management (ERM) Terhadap Nilai Perusahaan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek. Jurnal Akuntansi Ekonomi dan Manajemen Bisnis, 6(1), 67–73.

Ibrahim, M. (2017). Capital Structure and Firm Value in Nigerian ListedManufacturing Companies: an Empirical Investigation Using Tobin’s Q ModelInternational Journal of Innovative esearch in Social Sciences & StrategicManagement Techniques, 4(2), 112–125

Jensen, M.C.: Agency costs of free cash flow, corporate finance and takeover. Am. Econ. Rev. 76, 323–329 (1986)

Jin, Y., Jorion, P.: Firm value and hedging: evidence from U.S. oil and gas producers. J. Finance 61(2), 893–919 (2006). 6261.2006.00858.x

Keputusan Ketua Badan Pengawas Pasar Modal Dan Lembaga Keuangan Nomor: Kep-431/Bl/2012 Tentang Penyampaian Laporan Tahunan Emiten Atau Perusahaan Publik.

Lechner, P., Gatzert, N.: Determinants and Value of Enterprise Risk Management: Empirical Evidence from Germany. Eur. J. Finance , (2017).

Li, Q., Wu, Y., Ojiako, U., Marshall, A., Chipulu, M.: Enterprise risk management and firm value within China’s insurance industry. Acta Commer. 14(1), 1–10 (2014)

Liebenberg, A.P., Hoyt, R.E.: The determinants of enterprise risk management: evidence from the appointment of chief risk officers. Risk Manag. Insur. Rev. 6(1), 37–52 (2003)

Lin, Y., Wen, M.-M., Yu, J.: Enterprise risk management: strategic antecedents, risk integration and performance.North Am. Actuar. J. 16(1), 1–28 (2012)

McShane, M.K., Nair, A., Rustambekov, E.: Does enterprise risk management increase firm value? J. Account. Auditing Finance 26(4), 641–658 (2011)

Mudjijah, S., Khalid, Z., & Astuti, D. A. S. 2019. Pengaruh Kinerja Keuangan dan Struktur Modal Terhadap Nilai Perusahaan yang Dimoderasi Variabel Ukuran Perusahaan. Jurnal Akuntansi Dan Keuangan, 8(1), 41–56.

Meulbroek, L.K.: Integrated risk management for the firm: a senior manager’s guide. J. Appl. Corp. Finance 14(4), 56–70 (2002)

Myers, S.C., Read, J.A.: Capital allocation for insurance companies. J. Risk Insur. 68(4), 545–580 (2001)

Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5(2), 147–176.

Nair, A., Rustambekov, E., McShance, M., Fainshmidt, S.: Enterprise risk management as a dynamic capability:a test of its effectiveness during a crisis. Manag. Decis. Econ. 35(2014), 555–566 (2014)

Nocco, B.W., Stulz, R.M.: Enterprise risk management: theory and practice. J. Appl. Corp. Finance 18(4), 8–20 (2006)

Nguyen, Lan, Thi Khanh Phuong Tan & Thu Ha Nguyen (2021). Determinants of Firm Value: An Empirical Study of Listed Trading Companies in Vietnam Journal of Asian Finance, Economics and Business Vol 8, No 6 (2021) 0809–0817. doi:10.13106/jafeb.2021.vol8.no6.0809

Pagach, D., Warr, R.: The Effects of Enterprise Risk Management on Firm Per-formance. Working Paper. North Carolina State University, Raleigh (2010)

Pagach, D., Warr, R.: The characteristics of firms that hire chief risk officers. J. Risk Insur. 78(1), 185–211 (2011).

POJK Nomor 29 /POJK.04/2016 tentang Laporan Tahunan Emiten atau Perusahaan Publik

Karo, A. R. K., Yulia Efni, and Haryetti. (2021). Pengaruh Struktur Kepemilikan, Leverage Dan Ukuran Perusahaan Terhadap Enterprise Risk Management Disclosure Dengan Good Corporate Governance Sebagai Variabel Pemoderasi (Studi Kasus Pada Perusahaan Manufaktur Tahun 2015 – 2019). JOM-FEB, 8(1), 1-15.

Razali, A.R., Yazid, A.S., Tahir, I.M.: The determinants of Enterprise Risk Management (ERM) practicesin Malaysian public listed companies. J. Soc. Dev. Sci. 1(5), 202–207 (2011)

Rochette, M.: From risk management to ERM. J. Risk Manag. Financial Inst. 2(4), 394–408 (2009)

Ramdhonah, A., Ikin Solikin, and Maya Sari. (2019). Pengaruh Struktur Modal, Ukuran Perusahaan, Pertumbuhan Perusahaan, Dan Profitabilitas Terhadap Nilai Perusahaan (Studi Empiris Pada Perusahaan Sektor Pertambangan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2011-2017). Jurnal Riset Akuntansi Dan Keuangan, 7(1), 67-82.

Sekerci, N.: Does Enterprise Risk Management create value for firms?: Evidence from nordic countries, In: Essays on corporate governance, Dissertation, Lund University (2015)

Sayilir, Ö. (2017). Enterprise Risk Management and its Effect on Firm Value in Turkey. Journal of Management Research, 9(1), 86–99.

Standard & Poor’s (S&P): Criteria, insurance, general: enterprise risk management (2013). www., Accessed 12 Jan 2016

Standard & Poor’s (S&P): Solvency II compliance should not be the final destination for European insurers’ ERM developments (2016)., Accessed 12 Jan 2016

Suwardika, I. N. A., & Mustanda, I. K. (2017). Pengaruh Leverage, Ukuran Perusahaan, Pertumbuhan Perusahaan, dan Profitabilitas terhadap Nilai Perusahaan Pada Perusahaan Properti. Ejurnal Manajemen Unud, 6(3), 1248–1277.

Saona, P., & Martín, P. S. (2016). Determinants of firm value in Latin America: an analysis of firm attributes and institutionalfactors. Review of Managerial Science, 12(1), 65–112.

Sampurna, D. S., & Romawati, E. (2020). Determinants of firm value: Evidence in Indonesia Stock Exchange. Advances in Economics, Business and Management Research, 132, 12–15.




How to Cite

Sarsiti, Juni Trisnowati, & Erni Widiastuti. (2024). THE IMPACT OF COMPANY CHARACTERISTICS TO INCREASE COMPANY VALUE WITH CORPORATE RISK MANAGEMENT AS MEDIATION IN COMPANIES LISTED ON THE IDX IN 2016-2020. International Journal of Social Science, 3(5), 663–672.