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The effect of Enterprise Risk Management and Sustainability Reporting Quality on Performance: Evidence from South East Asia Countries
Shifana Fitriana, Ratna Wardhani

Universitas Indonesia


Abstract

The purpose of this study is to examine the relationship between enterprise risk management (ERM) and sustainability reporting quality on firm-s performance. This study argues that ERM is a risk management that focus on internal risk. On the other hand, companies need to also manage risks that arise from externals such as social and environmental risks. Sustainability activities as reported in sustainability report are one of the ways for companies to manage such risks. This study uses 695 observations from 305 nonfinancial listed companies in Indonesia, Singapore, Malaysia, Thailand, and Philippines during 2013-2018. Enterprise risk management measured by content analysis from risk management disclosure on annual report and sustainability reporting quality measured by scoring based on GRI-s database. Data were collected and analyzed using least square regression model. The result shows that enterprise risk management and sustainability reporting quality have positive effect on ROA. This evidence implies for company management that awareness of risk management and sustainability is needed to meet stakeholder expectations through improved performance. In addition, regulators also need to develop regulations related to sustainability for listed companies.

Keywords: enterprise risk management, sustainability reporting quality, ROA, least square

Topic: Corporate Governance and Strategic Management

Link: https://ifory.id/abstract/VMm39AGU8tCK

Conference: The 4th International Conference On Management, Economics And Business (ICMEB 2019)

Plain Format | Corresponding Author (Shifana Fitriana)

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