Academy of Accounting and Financial Studies Journal

1528-2635

Abstrait

Enterprise Risk Management, Bank Soundness on Market Performance: Evidence from Indonesia

Raudhatul Hidayah, Abdul Rohman, Agus Purwanto, Bestari Dwi Handayani, Ain Hajawiyah

This study contributes to the theory on the effect of bank health and enterprise risk management on enterprise market management. It provides a reference to the enterprise concerning investor perspective towards enterprise market performance. The study examined the ERM antecedent in bank soundness on financial enterprise market performance. Population using financial enterprises enlisted in the Indonesia Stock Exchange during 2014-2019 with 150 total samples. The study used a purposive sampling technique for sample selection and performed a path analysis to test research hypotheses and a Sobel test to examine the ERM antecedent. Results indicated a significant effect of bank soundness on enterprise market performance. Proved that ERM was the antecedent in the impact of bank soundness on enterprise market performance.