Determinant Variables of Enterprise Risk Management (ERM), Audit Opinions and Company Value on Insurance Emitents Listed in Indonesia Stock Exchange

Abstract

Risk is inherent uncertainty and must be faced in working life both individually and in an organization. Risks in the form of uncertainty occur due to lack or unavailability of sufficient information about what will happen in the company in the future. This study aims to test and obtain empirical results about determinants of Enterprise Risk Management (ERM) disclosure, audit opinion, and company value by using independent commissioner variables, company size, Leverage, and Risk Management Committee (RMC). The population in this study were all insurance issuers listed on the Indonesia Stock Exchange in 2013-2017 the amount of 15 companies. The sampling technique was carried out using the Purposive Sampling method which produced 12 samples during from 2013-2017. The data used is secondary data with documentation techniques consisting of annual reports of insurance issuers in 2013-2017. The tool used to test hypotheses using path analysis with SPSS Version 22. The results show that company size, leverage, and RMC have a significant effect on ERM disclosure. However, independent commissioners have no significant effect on ERM. For further researchers can use objects such as mining companies that have a higher potential risk.