Effect of managerial ownership and institutional ownership on firm value with enterprise risk management disclosure as moderating variables

I Putu Indra Pradnya Paramartha; Ni Ketut Rasmini

doi:10.21744/irjmis.v8n4.1900

Authors

I Putu Indra Pradnya Paramartha
indra.pradnya@yahoo.com
Faculty of Economics and Business, Udayana University, Denpasar, Indonesia
Ni Ketut Rasmini Faculty of Economics and Business, Udayana University, Denpasar, Indonesia

Keywords:

enterprise risk management, firm value, institutional ownership, managerial ownership

Abstract

This study aims to obtain empirical evidence regarding the effect of Enterprise Risk Management (ERM) disclosure on the relationship between managerial ownership, institutional ownership, and firm value. The population in this study were companies listed on the Indonesia Stock Exchange from 2017 to 2019. The sampling technique in this study used non-probability sampling with the purposive sampling method to obtain 53 observation periods as research samples. The data analysis technique used in this research is Moderated Regression Analysis (MRA). The results of the study provide empirical evidence that ERM can strengthen the influence of managerial ownership and institutional ownership on firm value. ERM disclosure has proven to be able to convince investors that the management, who is also the owner of the company, focuses on the survival of the company rather than being opportunistic so that the firm value increases. ERM disclosure also shows that there is an effective institutional presence in the composition of shareholder ownership. Further research can add a research period with a newer year of observation so that the results of this study are more robust.

Downloads

Download data is not yet available.

References

Abdel-Azim, M. H., & Abdelmoniem, Z. (2015). Risk Management And Disclosure And Their Impact On Firm Value: The Case Of Egypt. International Journal of Business, Accounting, & Finance, 9(1).

Abdolkhani, H., & Jalali, R. (2013). Effect of managerial ownership concentrated on firm return and value: Evidence from Iran Stock Market. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(1), 46-51.

Aditya, O., & Naomi, P. (2017). Penerapan manajemen risiko perusahaan dan nilai perusahaan di sektor konstruksi dan properti. Esensi: Jurnal Bisnis dan Manajemen, 7(2), 167-180.

Andini, N. L., & Sukartha, I. M. (2020). The effect of earning management, managerial ownership and firm size in the return of acquisition companies in Indonesia Stock Exchange 2011-2017 period. International Research Journal of Management, IT and Social Sciences, 7(3), 116-125.

Anita, A., & Yulianto, A. (2016). Pengaruh kepemilikan manajerial dan kebijakan dividen terhadap nilai perusahaan. Management Analysis Journal, 5(1).

Anton, S. G. (2018). The impact of enterprise risk management on firm value: Empirical evidence from Romanian non-financial firms. Engineering Economics, 29(2), 151-157.

Artha, D. R., Achsani, N. A., & Sasongko, H. (2014). Analisis fundamental, teknikal dan makroekonomi harga saham sektor pertanian. Jurnal Manajemen dan Kewirausahaan (Journal of Management and Entrepreneurship), 16(2), 175-184.

Beasley, M. S., Clune, R., & Hermanson, D. R. (2005). Enterprise risk management: An empirical analysis of factors associated with the extent of implementation. Journal of accounting and public policy, 24(6), 521-531. https://doi.org/10.1016/j.jaccpubpol.2005.10.001

Brigham, E. F., & Houston, J. F. (2014). Dasar-Dasar Manajemen Keuangan Buku 1 dan 2.

Budianto, W., & Payamta, P. (2014). Pengaruh kepemilikan manajerial terhadap nilai perusahaan dengan kebijakan dividen sebagai variabel moderasi. Assets: Jurnal Akuntansi dan Pendidikan, 3(1), 13-25.

Christiawan, Y. J., & Tarigan, J. (2007). Kepemilikan manajerial: kebijakan hutang, kinerja dan nilai perusahaan. Jurnal Akuntansi dan Keuangan, 9(1), 1-8.

Chung, K. H., & Pruitt, S. W. (1994). A simple approximation of Tobin's q. Financial management, 70-74.

Chung, K. H., & Zhang, H. (2011). Corporate governance and institutional ownership. Journal of financial and quantitative analysis, 46(1), 247-273.

Coso, I. I. (2004). Enterprise risk management-integrated framework. Committee of Sponsoring Organizations of the Treadway Commission, 2.

Dana, A. N. (2015). The effect of institutional ownership on firm performance: Evidence from Jordanian listed firms. International Journal of Economics and Finance, 7(12), 97-105.

Devi, S., Budiasih, I. G. N., & Badera, I. D. N. (2017). Pengaruh pengungkapan enterprise risk management dan pengungkapan intellectual capital terhadap nilai perusahaan. Indonesian Journal of Accounting and Finance, 14(1), 20-45.

Dewi, L. S., & Abundanti, N. (2019). Pengaruh Profitabilitas, Likuiditas, Kepemilikan Institusional dan Kepemilikan Manajerial Terhadap Nilai Perusahaan. E-Jurnal Manajemen, 8(10), 6099-6118.

Din, S. U., & Javid, A. Y. (2011). Impact of managerial ownership on financial policies and the firm’s performance: evidence Pakistani manufacturing firms.

Duggal, R., & Millar, J. A. (1999). Institutional ownership and firm performance: The case of bidder returns. Journal of Corporate Finance, 5(2), 103-117. https://doi.org/10.1016/S0929-1199(98)00018-2

Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of management review, 14(1), 57-74.

Febyani, E., & Devie, D. D. (2017). Pengaruh kepemilikan manajerial terhadap nilai perusahaan melalui manajemen laba sebagai variabel intervening di indonesia pada perusahaan yang terdaftar di Bursa Efek Indonesia (BEI). Business Accounting Review, 5(2), 745-756.

Florackis, C., Kostakis, A., & Ozkan, A. (2009). Managerial ownership and performance. Journal of business research, 62(12), 1350-1357. https://doi.org/10.1016/j.jbusres.2008.12.001

Friend, I., & Lang, L. H. (1988). An empirical test of the impact of managerial self?interest on corporate capital structure. the Journal of Finance, 43(2), 271-281.

Ghozali, I. (2016). Aplikasi Analisis multivariete dengan program IBM SPSS 23 (Edisi 8). Cetakan ke VIII. Semarang: Badan Penerbit Universitas Diponegoro, 96.

Ginting, S. (2013). Analisis Faktor-Faktor yang Mempengaruhi Harga Saham pada Perusahaan Manufaktur di Bursa Efek Indonesia. Jurnal Wira Ekonomi Mikroskil: JWEM, 3(2), 61-70.

Gordon, L. A., Loeb, M. P., & Tseng, C. Y. (2009). Enterprise risk management and firm performance: A contingency perspective. Journal of accounting and public policy, 28(4), 301-327. https://doi.org/10.1016/j.jaccpubpol.2009.06.006

Himmelberg, C. P., Hubbard, R. G., & Palia, D. (1999). Understanding the determinants of managerial ownership and the link between ownership and performance. Journal of financial economics, 53(3), 353-384. https://doi.org/10.1016/S0304-405X(99)00025-2

Hirdinis, M. (2019). Capital structure and firm size on firm value moderated by profitability.

Husaini, S. (2018). Enterprise risk management, corporate governance and firm value: empirical evidence from Indonesian public listed companies. International Journal of Advances in Management and Economic, 6(6), 16-23.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.

Kane, G. D., & Velury, U. (2004). The role of institutional ownership in the market for auditing services: an empirical investigation. Journal of Business Research, 57(9), 976-983. https://doi.org/10.1016/S0148-2963(02)00499-X

Mandac?, P. E., & Gumus, G. K. (2010). Ownership concentration, managerial ownership and firm performance: Evidence from Turkey. South East European Journal of Economics and Business, 5(1), 57-66.

Maury, B., & Pajuste, A. (2005). Multiple large shareholders and firm value. Journal of Banking & Finance, 29(7), 1813-1834. https://doi.org/10.1016/j.jbankfin.2004.07.002

Mayangsari, R. (2018). Pengaruh Struktur Modal, Keputusan Investasi, Kepemilikan Manajerial, dan Komite Audit terhadap Nilai Perusahaan Sektor Aneka Industri yang Listing di Bursa Efek Indonesia Periode 2012-2016. Jurnal Ilmu Manajemen (JIM), 6(4).

Meizaroh & Lucyanda, J. (2011). Pengaruh Corporate Governance dan Konsentrasi Kepemilikan pada Pengungkapan Enterprise Risk Management. Simposium Nasional Akuntansi XIV. Hal, 1-30.

Michelson, S. E., Jordan-Wagner, J., & Wootton, C. W. (1995). A market based analysis of income smoothing. Journal of Business Finance and Accounting, 22, 1179-1194.

Nasir, N. (2018). Effect of Enterprise Risk Management on Firm Value: Empirical Evidence from Non-Financial firms in Pakistan. International Journal of Financial Management, 8(4).

Oktarina, D. (2018). The Analysis of Firm Value in Indonesia Property and Real Estate Companies. International Journal of Research Science & Management, 5(9), 85-92.

Palia, D., & Lichtenberg, F. (1999). Managerial ownership and firm performance: A re-examination using productivity measurement. Journal of Corporate Finance, 5(4), 323-339. https://doi.org/10.1016/S0929-1199(99)00009-7

Phan, T., Dang, T., Nguyen, T., Ngo, T., & Hoang, T. (2020). The effect of enterprise risk management on firm value: Evidence from Vietnam industry listed enterprises. Accounting, 6(4), 473-480.

Purba, J. T., & Africa, L. A. (2019). The effect of capital structure, institutional ownership, managerial ownership, and profitability on company value in manufacturing companies. The Indonesian Accounting Review, 9(1), 27-38.

Putra, I. G. B. W. P., Sujana, I. K., Suprasto, H. B., & Gayatri, G. (2019). Effect of corporate social responsibility and institutional ownership of tax avoidance with executive characters as moderator. International Research Journal of Management, IT and Social Sciences, 6(6), 201-206.

Rahma, A. (2014). Pengaruh kepemilikan manajerial, kepemilikan institusional, dan ukuran perusahaan terhadap keputusan pendanaan dan nilai perusahaan (studi kasus pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia periode 2009-2012) (Doctoral dissertation, Diponegoro University).

Rasmini, N. K. (2019). Pengaruh Kepemilikan Manajerial Pada Nilai Perusahaan Dengan Pengungkapan Enterprise Risk Management Sebagai Variabel Pemoderasi. Jurnal Manajemen Strategi Bisnis dan Kewirausahaan, 13(2).

Ratna Ningsih, H. (2013). Pengaruh kepemilikan manajerial dan rasio pengembalian aktiva terhadap nilai perusahaan (studi kasus pada industri perbankan yang terdaftar di Bursa Efek Indonesia) (Doctoral dissertation, Universitas Komputer Indonesia).

Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2001). Accounting: Theory and Analysis. John Wiley & Sons.

Sihombing, J., Waty, L., & Purba, H. (2017). Asimetri Informasi Serta Implikasinya Terhadap Pengembalian Investasi Saham Manufaktur Di Indonesia. Jurnal Bisnis Darmajaya, 3(1), 39-54.

Silva, J. R., Silva, A. F. D., & Chan, B. L. (2019). Enterprise risk management and firm value: evidence from Brazil. Emerging Markets Finance and Trade, 55(3), 687-703.

Siregar, I. G., & Pambudi, J. E. (2019). Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional Dan Return On Equity Terhadap Nilai Prusahaan Pada Perusahaan Manufaktur Sektor Tekstil Dan Garemnt Yang Terdaftar Di Bei Periode 2010–2014. COMPETITIVE Jurnal Akuntansi dan Keuangan, 3(1), 75-87.

Sondakh, R., & Morasa, J. (2019). Ipteks Mengukur Nilai Perusahaan Di Pasar Modal Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Ipteks Akuntansi Bagi Masyarakat, 3(1).

Sukirni, D. (2012). Kepemilikan manajerial, kepemilikan institusional, kebijakan deviden dan kebijakan hutang analisis terhadap nilai perusahaan. Accounting Analysis Journal, 1(2).

Sulistianingsih, E. D., & Yuniati, T. (2016). Pengaruh Kepemilikan Manajerial dan Profitabilitas Terhadap Nilai Perusahaan Melalui Kebijakan Dividen. Jurnal Ilmu dan Riset Manajemen (JIRM), 5(12).

Supriyadi, A., & Setyorini, C. T. (2020). Pengaruh Pengungkapan Manajemen Risiko Terhadap Nilai Perusahaan Melalui Kinerja Keuangan Di Industri Perbankan Indonesia. Owner: Riset dan Jurnal Akuntansi, 4(2), 467-484.

Tambalean, F. A. K., Manossoh, H., & Runtu, T. (2018). Pengaruh Kepemilikan Manajerial Dan Kepemilikan Institusional Terhadap Nilai Perusahaan Pada Perusahaan Sektor Industri Barang Konsumsi Di BEI. Going Concern: Jurnal Riset Akuntansi, 13(04).

Thanatawee, Y. (2014). Institutional ownership and firm value in Thailand. Asian Journal of Business and Accounting, 7(2).

Velury, U., & Jenkins, D. S. (2006). Institutional ownership and the quality of earnings. Journal of business research, 59(9), 1043-1051. https://doi.org/10.1016/j.jbusres.2006.05.001

Wardani, D. K., & Hermuningsih, S. (2011). Pengaruh struktur kepemilikan terhadap nilai perusahaan dengan kinerja keuangan dan kebijakan hutang sebagai variabel intervening. Jurnal Siasat Bisnis, 15(1).

Weston, J. F., & Copeland, T. E. (2001). Manajemen Keuangan Jilid I, Edisi ke-9. Jakarta: Binarupa Aksara.

Yuslirizal, A. (2017). Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Growth, Likuiditas dan Size terhadap Nilai Perusahaan pada Industri Tekstil dan Garmen di Bursa Efek Indonesia. Katalogis, 5(3).

Zhou, X. (2001). Understanding the determinants of managerial ownership and the link between ownership and performance: comment. Journal of financial economics, 62(3), 559-571. https://doi.org/10.1016/S0304-405X(01)00085-X