THE IMPACT OF RISK MANAGEMENT, OPERATIONAL PRODUCTIVITY, AND CASH FLOW VOLATILITY ON COMPANY VALUE
The relationship between corporate risk management (ERM) and corporate value is one of the priority topics of corporate governance and has received attention in academia, where results are still mixed and inconsistent. The role of the ERM not only focuses on minimizing risks to the company but also on determining the company's management strategy. The purpose of this study is to test and analyze the effect of risk management disclosure, business risk, operational productivity, and cash flow volatility on company value in the manufacturing industry in public companies listed on the Indonesia Stock Exchange during 2017–2021. This is quantitative research. Population is a manufacturing industry listed on the Indonesia Stock Exchange. The sampling technique uses a purposive sampling method. The sampling technique uses a purposive sampling method. The finding of this study found that it is simultaneously proven that disclosure of risk management, business risk, operational productivity, and cash flow volatility have a significant effect on company value. Partially, the disclosure of risk management has a significant positive effect, while business risk has a negative effect, operational productivity has a significant positive effect, and cash flow volatility has a positive effect on the value of the company. The results of the study are useful to enrich previous findings and provide information for stakeholders.
Subjects: Financial Management, Management Accounting, and Risk Management
company value, ERM, risk, operational productivity, cash flow volatility.