Open AccessRisk Management Disclosure and their Effect on Banking Firms Value in Indonesia
Author(s) -
Isti Rahayu,
Dira Sartika Ardi,
Rizki Hamdani
Publication year - 2022
Publication title -
humanities and social sciences letters
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.14
H-Index - 3
eISSN - 2312-5659
pISSN - 2312-4318
DOI - 10.18488/73.v10i2.2959
Subject(s) - audit committee , accounting , business , risk management , stock exchange , enterprise risk management , index (typography) , audit , enterprise value , actuarial science , finance , world wide web , computer science
Risk management is the effort done to minimize the possible risks that might occur in future. This study aimed to examine the influence of firm size, audit committee, and risk committee on risk management disclosure and to examine the influence of firm size, audit committee, risk committee, and risk management disclosure on firm banking value. The research sample comprised 40 banking firms listed on the Indonesia Stock Exchange (IDX) during 2016 to 2018. The hypothesis testing was done by using a regression data panel. The results revealed that the firm size and risk committee had a positive influence on the disclosure of risk management, and audit committee did not have a positive influence on the disclosure of risk management. This study also proved the positive influence of firm size, audit committee, and risk committee on firm banking value through risk management disclosure. The limitation of this study was the measurement of the risk management disclosure index which contained an element of subjectivity in understanding the index, so it had the opportunity to give different perceptions if research is carried out in the future. The implication of this study requires to consider the size of the company and that of the risk committee, so that it will minimize risk for investors in future.