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...
Main Authors: | , |
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Format: | Article |
Language: | English |
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EDP Sciences
2020-01-01
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Series: | SHS Web of Conferences |
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Online Access: | https://www.shs-conferences.org/articles/shsconf/pdf/2020/04/shsconf_icsh2020_01026.pdf |
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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 |
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