The Effect of Risk Management and Good Corporate Governance on Financial Performance and Its Impact on the Firm Value

Muhammad, Zakir; Nurdin, Djayani; Haris, Nurhayati; Miru, Sulaeman

doi:10.9790/487x-19050594105

Cited by 4 publications

(4 citation statements)

References 14 publications

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“…However, other studies indicate that risk management has a significant negative effect on financial performance (Muhamad, 2017). The results do not support the hypothesis that firms which practice ERM would have a higher Tobin's Q ratio than firms which are not.…”

Section: Risk Managementcontrasting

confidence: 60%

The Implementation of Risk Management and Its Effect on Good Cooperative Governance and Success

Sugiyanto

Rahayu

2019

J. Indones.Econ.Bus.

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Risk management in Indonesia’s cooperative organizations is still rarely implemented, cooperative management must be aided by good cooperative governance and the end objectives are the success and sustainability of the cooperative. The purpose of this study is to implement and identify risk management, especially in savings and loan cooperatives, and the final part of the study is to test and prove empirically the direct and indirect effects of the implementation of risk management on good cooperative governance and the success of the cooperative. The research method used in this study was a descriptive quantitative analysis. Saturation sampling techniques were also used in this study; while the size of the population was 73 persons, consisting of various cooperatives’ boards of directors, supervisors, managers, and administrators. The primary data needed in this study were obtained by using a survey method which involved questionnaires and conducting structured interviews. This study uses a statistical approach by using path analysis. The result of this study shows that two categories of risks can be identified, which are minor and insignificant risks. A minor risk includes the credit risk and strategic risk, and an insignificant risk includes six risks: market risk, liquidity risk, operational risk, legal risk, reputation risk and compliance risk. Based on the statistical analysis, the indication is that there is no effect from the implementation of risk management on a cooperative’s success, but there is an effect from the implementation of risk management on good cooperative governance, and good cooperative governance has an effect on a cooperative’s success. Indirectly, a cooperative’s success is not influenced by the implementation of risk management, but it is influenced by the implementation of risk management through good cooperative governance as an intervening variable.

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Section: Risk Managementcontrasting

confidence: 60%

The Implementation of Risk Management and Its Effect on Good Cooperative Governance and Success

Sugiyanto

Rahayu

2019

J. Indones.Econ.Bus.

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“…Firm value with PBV and EPS indicators is influenced by ownership structure negatively by 34.7% and insignificantly by 10.8%. This rejects research which states that ownership structure has a negative and significant effect on firm value by , and researchers reject research Sugiharto et al, (2016) which shows that firm value is positively and significantly influenced by managerial ownership. But researchers accept research Alamsyah & Muchlas, (1997) which analyzes that ownership structure has no effect on firm value.…”

Section: Resultsmentioning

confidence: 79%

The Influence of Variables That Can Affect Firm Value in the Banking Industry on the Indonesia Stock Exchange

Arsyana,

Hwihanus

2023

J. Keuang. dan Perbank.

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This study aims to analyze the influence of macro fundamentals and financial risk with capital structure, ownership structure, company characteristics, and financial performance as intervening variables on company value with indicators of stock price, earnings per share, and price to book value. This research is quantitative descriptive with a random sampling technique of ten samples from forty-seven banks in Indonesia in 2019-2022 listed on the Indonesia Stock Exchange. The analysis technique uses Partial least Square (PLS). The results showed that macro fundamentals have a significant effect on company value, company characteristics have a considerable impact on financial performance, financial risk has a significant effect on company characteristics, financial risk has a substantial effect on ownership structure, financial risk has a significant impact on capital structure, and capital structure has a significant effect on financial performance. In addition to the six hypotheses, it shows insignificant, so the company's value is influenced by macro fundamentals, financial risk, capital structure, company characteristics, ownership structure, and financial performance it just 33%. DOI: 10.26905/jkdp.v27i4.11010

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“…Although there is some disagreement over the effect of the current ratio (Borhan et al, 2014;Jaworski and Czerwonka, 2022;Muhammad et al, 2014), firms with a higher current ratio are good at utilizing resources and sustaining supplier relationships when launching new product development and embarking on a market expansion, which affects their economic performance and market valuation (Bibi and Amjad, 2017;David et al, 2015;Kariv et al, 2017). Inventory turnover is used as one of the key operational factors and performance measures in manufacturing industries because it affects cash generation and the efficient utilization of financial assets, especially when firms are committed to developing innovative products and competing in the global market (Kwak, 2019;Pati and Lee, 2023;Shardeo, 2015). As a surrogate measure of lean operations, inventory turnover allows the firm to maintain sound asset capacity for better financial performance, which is linked to important decision areas across purchasing, production, marketing and exports (Ahmad and Mahmood, 2018;Boute et al, 2007;Demeter and Matyusz, 2011;Khan et al, 2016;Vidhyaprlya et al, 2020).…”

Section: Bijmentioning

confidence: 99%

Complex interplay of R&D, advertising and exports in USA manufacturing firms: differential effects of capabilities

Kwon,

Lee,

Brennan

2024

BIJ

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PurposeThis study aims to explore the dynamic interplay of key resources (i.e. research and development (R&D), advertising and exports) in affecting the performance of USA manufacturing firms. Specifically, the authors examine the dynamic impact of joint resources and predict differential effect scales contingent on firm capabilities.Design/methodology/approachThis study presents a combined multiple regression analysis (MRA)-multilayer perceptron (MLP) neural network modeling and investigates the complex interlinkage of capabilities, resources and performance. As an innovative approach, the MRA-MLP model investigates the effect of capabilities under the combinatory deployment of joint resources.FindingsThis study finds that the impact of joint resources and synergistic rents is not uniform but rather distinctive according to the combinatory conditions and that the pattern is further shaped by firm capabilities. Accordingly, besides signifying the contingent aspect of capabilities across a range of resource combinations, the result also shows that managerial sophistication in adaptive resource control is more than a managerial ethos.Practical implicationsThe proposed analytic process provides scientific decision support tools with control mechanisms with respect to deploying multiple resources and setting actionable goals, thereby presenting pragmatic benchmarking options to industry managers.Originality/valueUsing the theoretical underpinnings of the resource-based view (RBV) and resource orchestration, this study advances knowledge about the complex interaction of key resources by presenting a salient analytic process. The empirical design, which portrays holistic interaction patterns, adds to the uniqueness of this study of the complex interlinkages between capabilities, resources and shareholder value.

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The Effect of Risk Management and Good Corporate Governance on Financial Performance and Its Impact on the Firm Value

Abstract: This research aims to test and prove empirically about the effect

Cited by 4 publications

References 14 publications

The Implementation of Risk Management and Its Effect on Good Cooperative Governance and Success

The Implementation of Risk Management and Its Effect on Good Cooperative Governance and Success

The Influence of Variables That Can Affect Firm Value in the Banking Industry on the Indonesia Stock Exchange

Complex interplay of R&D, advertising and exports in USA manufacturing firms: differential effects of capabilities

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