SHS Web Conf.
Volume 76, 2020The 1st International Conference on Social Sciences and Humanities (ICSH 2019)
|Number of page(s)||8|
|Published online||29 April 2020|
The Impact of Enterprise Risk on Firms’ Performance: An Empirical Analysis of Indonesia’s Public Listed Banking Firms
Finance Program, Faculty of Business and Economics, Petra Christian University, Jl. Siwalankerto 121–131, Surabaya 60235, Indonesia
* Corresponding author: firstname.lastname@example.org
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.
Key words: Bank performance / enterprise risk management adoption / firm size / institutional ownership
© The Authors, published by EDP Sciences, 2020
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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