Open AccessThe Determinants of Insurance Firm Value with Enterprise Risk Management (ERM) as Intervening Variabel
Author(s) -
Achmad Achsan Zainul Mafakhir Shaleh,
Augustina Kurniasih
Publication year - 2021
Publication title -
risk and financial management
Language(s) - English
Resource type - Journals
eISSN - 2690-9804
pISSN - 2690-9790
DOI - 10.30560/rfm.v3n2p1
Subject(s) - enterprise value , stock exchange , business , nonprobability sampling , sobel test , profitability index , leverage (statistics) , path analysis (statistics) , variables , enterprise risk management , accounting , finance , risk management , statistics , population , demography , mathematics , sociology
This study aims to examine and analyze the ability of the ERM (enterprise risk management) to mediate the influence of the firm size, leverage, profitability, and institutional ownership on the firm value of the insurance sub-sector listed on the Indonesia Stock Exchange for the period 2015-2019. This study used 12 samples from 16 insurance companies listed on the IDX in 2020 that met the criteria for purposive sampling. The data were processed using a path analysis approach. The results of the research show that firm size has a significant positive effect on ERM, DER and ROA has a significant negative effect on ERM, and institutional ownership were found to have no effect on ERM. Meanwhile, DER and institutional ownership have a significant negative effect on firm value, while firm size and ROA have no effect on firm value. Using the Sobel Test it was found that ERM as an intervening variable was unable to mediate the effect of firm size, DER, ROA, institutional ownership on firm value.