Factors that Influence Management Company Risk
DOI:
https://doi.org/10.55927/ajabm.v5i1.22Keywords:
Audit Committee, Board of Directors, Auditor Reputation, Profitability, Enterprise Risk ManagementAbstract
This study aims to examine the effect of the audit committee, board of directors, auditor reputation, and profitability on enterprise risk management (ERM). The data used in this study are secondary data from 47 banking sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. This research adopts a quantitative approach using secondary data collected from annual reports and S&P Capital IQ. The sample was selected using purposive sampling, and multiple linear regression analysis was employed as the method of analysis. The findings indicate that both the audit committee and the board of directors have a significant positive effect on ERM, while auditor reputation and profitability have a negative effect on ERM. Future studies are recommended to utilize specialized software or platforms to calculate ERM disclosure scores more accurately and to expand the sample size to obtain deeper and more comprehensive results. This study is expected to contribute to the existing literature and provide insights for theorists, academics, and practitioners regarding the roles of the audit committee, board of directors, auditor reputation, and profitability in ERM disclosure.
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