The Mediation Effect of Enterprise Risk Management Disclosure on the Relationship between Business Strategy and Company Performance

Title: The Mediation Effect of Enterprise Risk Management Disclosure on the Relationship between Business Strategy and Company Performance

Author: Riski Nurida Rahmawati

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

The aim of this research is to empirically prove the influence of business strategy on company performance which is mediated by Enterprise Risk Management (ERM) disclosure. This research uses quantitative data with an explanatory approach. The sample used was 87 manufacturing companies listed on the IDX in 2014-2018. The analysis technique used is path analysis. To test the indirect effect, the Sobel Test calculator is used. The research results show that Enterprise Risk Management (ERM) disclosure mediates the influence of business strategy on company performance. The control variable company size does not have a significant influence on company performance, in contrast to sales growth which has a significant influence. In the academic field, this research is able to contribute to a theoretical model between business strategy, Enterprise Risk Management disclosure, company performance, company size and sales growth. Future research can use other sectors such as banking.

Keywords: Business Strategy, Enterprise Risk Management, Company Performance, Prospector, Defender

Sources: http://repository.unair.ac.id/94564/