The Impact of Enterprise Risk on Firms’ Performance: An Empirical Analysis of Indonesia’s Public Listed Banking Firms

This paper examines the influential factors of potential adoption of Enterprise Risk Management (ERM) and the impact of ERM adoption on the public listed banking firms’ performances in Indonesia during 2009 to 2017. This research uses logistic regression to test four potential factors as the driving...

Full description

Bibliographic Details
Main Authors: Malelak Mariana Ing, Pryscillia Fiany
Format: Article
Language:English
Published: EDP Sciences 2020-01-01
Series:SHS Web of Conferences
Subjects:
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2020/04/shsconf_icsh2020_01026.pdf
_version_ 1818430149879660544
author Malelak Mariana Ing
Pryscillia Fiany
author_facet Malelak Mariana Ing
Pryscillia Fiany
author_sort Malelak Mariana Ing
collection DOAJ
description This paper examines the influential factors of potential adoption of Enterprise Risk Management (ERM) and the impact of ERM adoption on the public listed banking firms’ performances in Indonesia during 2009 to 2017. This research uses logistic regression to test four potential factors as the driving forces behind the potential adoption of ERM and linear regression to test the impact of ERM on firms’ performances. The result suggests that firms with greater size, having more institutional ownership, and being part of Multinational companies are more likely to adopt ERM, while the implementation of ERM has no significant impact on the firms’ performance. Little empirical research has been conducted on the topic, especially in developing economies like Indonesia. This study will broaden the scope of literature by providing novel empirical evidence.
first_indexed 2024-12-14T15:28:50Z
format Article
id doaj.art-0bc7a5e573b0470dbce84c74d9b4e711
institution Directory Open Access Journal
issn 2261-2424
language English
last_indexed 2024-12-14T15:28:50Z
publishDate 2020-01-01
publisher EDP Sciences
record_format Article
series SHS Web of Conferences
spelling doaj.art-0bc7a5e573b0470dbce84c74d9b4e7112022-12-21T22:55:58ZengEDP SciencesSHS Web of Conferences2261-24242020-01-01760102610.1051/shsconf/20207601026shsconf_icsh2020_01026The Impact of Enterprise Risk on Firms’ Performance: An Empirical Analysis of Indonesia’s Public Listed Banking FirmsMalelak Mariana Ing0Pryscillia Fiany1Finance Program, Faculty of Business and Economics, Petra Christian UniversityFinance Program, Faculty of Business and Economics, Petra Christian UniversityThis paper examines the influential factors of potential adoption of Enterprise Risk Management (ERM) and the impact of ERM adoption on the public listed banking firms’ performances in Indonesia during 2009 to 2017. This research uses logistic regression to test four potential factors as the driving forces behind the potential adoption of ERM and linear regression to test the impact of ERM on firms’ performances. The result suggests that firms with greater size, having more institutional ownership, and being part of Multinational companies are more likely to adopt ERM, while the implementation of ERM has no significant impact on the firms’ performance. Little empirical research has been conducted on the topic, especially in developing economies like Indonesia. This study will broaden the scope of literature by providing novel empirical evidence.https://www.shs-conferences.org/articles/shsconf/pdf/2020/04/shsconf_icsh2020_01026.pdfbank performanceenterprise risk management adoptionfirm sizeinstitutional ownership
spellingShingle Malelak Mariana Ing
Pryscillia Fiany
The Impact of Enterprise Risk on Firms’ Performance: An Empirical Analysis of Indonesia’s Public Listed Banking Firms
SHS Web of Conferences
bank performance
enterprise risk management adoption
firm size
institutional ownership
title The Impact of Enterprise Risk on Firms’ Performance: An Empirical Analysis of Indonesia’s Public Listed Banking Firms
title_full The Impact of Enterprise Risk on Firms’ Performance: An Empirical Analysis of Indonesia’s Public Listed Banking Firms
title_fullStr The Impact of Enterprise Risk on Firms’ Performance: An Empirical Analysis of Indonesia’s Public Listed Banking Firms
title_full_unstemmed The Impact of Enterprise Risk on Firms’ Performance: An Empirical Analysis of Indonesia’s Public Listed Banking Firms
title_short The Impact of Enterprise Risk on Firms’ Performance: An Empirical Analysis of Indonesia’s Public Listed Banking Firms
title_sort impact of enterprise risk on firms performance an empirical analysis of indonesia s public listed banking firms
topic bank performance
enterprise risk management adoption
firm size
institutional ownership
url https://www.shs-conferences.org/articles/shsconf/pdf/2020/04/shsconf_icsh2020_01026.pdf
work_keys_str_mv AT malelakmarianaing theimpactofenterpriseriskonfirmsperformanceanempiricalanalysisofindonesiaspubliclistedbankingfirms
AT pryscilliafiany theimpactofenterpriseriskonfirmsperformanceanempiricalanalysisofindonesiaspubliclistedbankingfirms
AT malelakmarianaing impactofenterpriseriskonfirmsperformanceanempiricalanalysisofindonesiaspubliclistedbankingfirms
AT pryscilliafiany impactofenterpriseriskonfirmsperformanceanempiricalanalysisofindonesiaspubliclistedbankingfirms