THE INFLUENCE OF ENTERPRISE RISK MANAGEMENT AND SUSTAINABILITY REPORTING TOWARD FIRM VALUE WITH AUDIT QUALITY AND COMMITTEE AS MODERATING VARIABLE

Abstract

This study aims to analyze and find empirical evidence of the role of audit quality and the audit committee of enterprise risk management and sustainability reports with profitability, firm size, dividend, and managerial ownership toward firm value. The sample for this research is a manufacturing company in the Chemical, Pharmaceutical, and Textile Industry sectors from 2017 to 2021 which is listed on the Indonesia Stock Exchange. The sampling technique used in this quantitative study was purposive sampling and 30 company samples were obtained. Multiple linear regression analyses were used in this study, which was processed using the Eviews12 program. The findings of this research indicate that ERM and sustainability reporting have a significant positive effect on firm value, while the control variable in this study has no effect on firm value. Audit quality weakens the relationship between ERM and firm value but does not moderate the relationship between sustainability reports and firm value. The audit committee strengthens the positive relationship between ERM and firm value but does not moderate the relationship between sustainability reports and firm value.