The Effect of Enterprise Risk Management (ERM) on Firm Value with Environmental Performance as a Moderation on Manufacturing Industry Companies

Abstract

The food and beverage is the lergest industry in Indonesia, as evidenced by the growth of the food and beverage industry by 40,5% after the COVID-19 pandemic. However, this industry is vulnerable to risks that can arise, one of which is enviromental pollution. The purpose of this study is to determine the effect of Enterprise Risk Management on company value with environmental performance as a moderator. The sample criteria obtained were 20 samples of food and beverage manufacturing companies listend on the Indonesia Stok Exchange in 2018-2022. The analyisis tool used was SPSS version 22, simple linear regression with a significance level (α) of 5%. The results of this study found that there was an effect of Enterprise Risk Management on company value. This study also found that environmental performance can strengthen the effect of Enterprise Risk Management on company value, so it is important for a company to pay more attention to the environment and manage waste properly.