Open AccessHOW SIGNIFICANT THE INFLUANCE OF VOLUNTARY RISK MANAGEMENT DISCLOSURE AND ITS IMPLICATION TO COMPANY VALUE
Author(s) -
Popon Rabia Adawia,
Herlina Puspa Dewi,
Irwan Rutlan Atmadiredja
Publication year - 2021
Publication title -
dinasti international journal of management science
Language(s) - English
Resource type - Journals
eISSN - 2686-522X
pISSN - 2686-5211
DOI - 10.31933/dijms.v3i2.1014
Subject(s) - diversification (marketing strategy) , stock exchange , nonprobability sampling , business , enterprise value , voluntary disclosure , accounting , turnover , risk management , tobin's q , actuarial science , marketing , finance , economics , management , population , demography , sociology
The aim of this research is to examine the effect of voluntary risk management disclosure and its implication to firm value. Independent variables used in this research are product diversification, geographical diversification, type of industry and company size. Intervening variable is voluntary risk management disclosure. While the dependent variable in this study is firm value measured using Tobin’s Q. This research used a sample of non financial companies listed on the Indonesia Stock Exchange (IDX) in 2019. The sampling method in this research is purposive sampling and acquired 418 companies that meet the criteria. Hypothesis testing using multiple regression analysis. The results of this research showed that the higher the level of product diversification, geographical diversification, type of industry and company size, the higher the voluntary risk management disclosure. Voluntary risk management disclosure has a positive influential on firm value, the wider the disclosure of corporate risk management, will increase the firm value, otherwise the less disclosure of corporate risk management, will decrease the firm value or the value are getting worse.