The Effect of Enterprise Risk Management, Good Corporate Governance, Corporate Social Responsibility on Profitability and Firm Value

Abstract

The obyective of this study to examine the effect of Enterprise Risk Management (ERM), Good Corporate Governance (GCG), and Corporate Social Responsibility (CSR) on profitability and firm value. Profitability is measured by Return on Equity (ROE) and firm value is measured by Tobin's Q. Meanwhile, ERM, GCG and CSR are measured by the number of items disclosed by each variable compared to the number of items that should be disclosed. The population in this study are companies in the mining sector listed on the Indonesia Stock Exchange (IDX) with a sample of twenty eigh companies and observation period of five years (2016 - 2020). The results showed that ERM and CSR had a significant and negative effect on profitability, while GCG had no effect on profitability. Other results show that ERM and CSR have a significant and negative effect on firm value, and ROE has a significant and negative effect on firm value While GCG has no effect on firm value.