An Analysis of the Impact of Enterprise Risk Management (ERM) on the Firm Performance of Indonesia State-Owned Enterprises
This study aims to determine the impact of enterprise risk management (ERM) on company performance in Indonesia’s state-owned enterprises (SOE). This study took a sample of 40 Indonesia SOEs from 2021-2023, with 100 observations. The ERM aspects consist of the Directors of Risk Management, Risk Mana...
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| Format: | Article |
| Language: | English |
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Editura ASE
2025-06-01
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| Series: | Management and Economics Review |
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| _version_ | 1850136794281017344 |
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| author | Dinda Amalia CANDELA Machmudin Eka PRASETYA |
| author_facet | Dinda Amalia CANDELA Machmudin Eka PRASETYA |
| author_sort | Dinda Amalia CANDELA |
| collection | DOAJ |
| description | This study aims to determine the impact of enterprise risk management (ERM) on company performance in Indonesia’s state-owned enterprises (SOE). This study took a sample of 40 Indonesia SOEs from 2021-2023, with 100 observations. The ERM aspects consist of the Directors of Risk Management, Risk Management Committee, Reporting between Directors to the Risk Management Committee, Risk Assessment, Risk Management Framework, and Risk Management Maturity. At the same time, Company performance is measured by Return on Assets (ROA). Hypothesis testing was carried out using the Ordinary Least Square method, and it showed that the Directors of Risk Management aspect had a significant positive effect on ROA. The Risk Management Committee aspect, reporting between Directors to the Risk Management Committee, Risk Assessment, and Risk Management Framework had no significant effect on ROA. In contrast, the overall implementation of ERM, as measured by RMI, had a significant positive effect on ROA. |
| format | Article |
| id | doaj-art-508f8652e9f044df8fbb9216219ca687 |
| institution | OA Journals |
| issn | 2501-885X |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Editura ASE |
| record_format | Article |
| series | Management and Economics Review |
| spelling | doaj-art-508f8652e9f044df8fbb9216219ca6872025-08-20T02:31:02ZengEditura ASEManagement and Economics Review2501-885X2025-06-0110250351610.24818/mer/2025.02-15An Analysis of the Impact of Enterprise Risk Management (ERM) on the Firm Performance of Indonesia State-Owned EnterprisesDinda Amalia CANDELA0Machmudin Eka PRASETYA1Universitas Indonesia, IndonesiaUniversitas Indonesia, IndonesiaThis study aims to determine the impact of enterprise risk management (ERM) on company performance in Indonesia’s state-owned enterprises (SOE). This study took a sample of 40 Indonesia SOEs from 2021-2023, with 100 observations. The ERM aspects consist of the Directors of Risk Management, Risk Management Committee, Reporting between Directors to the Risk Management Committee, Risk Assessment, Risk Management Framework, and Risk Management Maturity. At the same time, Company performance is measured by Return on Assets (ROA). Hypothesis testing was carried out using the Ordinary Least Square method, and it showed that the Directors of Risk Management aspect had a significant positive effect on ROA. The Risk Management Committee aspect, reporting between Directors to the Risk Management Committee, Risk Assessment, and Risk Management Framework had no significant effect on ROA. In contrast, the overall implementation of ERM, as measured by RMI, had a significant positive effect on ROA.enterprise risk managementrisk maturity indexfirm performancestate-owned enterprise |
| spellingShingle | Dinda Amalia CANDELA Machmudin Eka PRASETYA An Analysis of the Impact of Enterprise Risk Management (ERM) on the Firm Performance of Indonesia State-Owned Enterprises Management and Economics Review enterprise risk management risk maturity index firm performance state-owned enterprise |
| title | An Analysis of the Impact of Enterprise Risk Management (ERM) on the Firm Performance of Indonesia State-Owned Enterprises |
| title_full | An Analysis of the Impact of Enterprise Risk Management (ERM) on the Firm Performance of Indonesia State-Owned Enterprises |
| title_fullStr | An Analysis of the Impact of Enterprise Risk Management (ERM) on the Firm Performance of Indonesia State-Owned Enterprises |
| title_full_unstemmed | An Analysis of the Impact of Enterprise Risk Management (ERM) on the Firm Performance of Indonesia State-Owned Enterprises |
| title_short | An Analysis of the Impact of Enterprise Risk Management (ERM) on the Firm Performance of Indonesia State-Owned Enterprises |
| title_sort | analysis of the impact of enterprise risk management erm on the firm performance of indonesia state owned enterprises |
| topic | enterprise risk management risk maturity index firm performance state-owned enterprise |
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