The THE INFLUENCE OF ENTERPRISE RISK MANAGEMENT ON FIRM VALUE MEASURED BY TOBIN’S Q OF LISTED COMPANIES IN THE STOCK EXCHANGE OF THAILAND
Keywords:
Enterprise Risk Management, Firm Value, Structural Equation Modeling (SEM)Abstract
Enterprise risk management is an important factor that influences and affects the enterprise value of the organization. The standard of enterprise risk management based on COSO concepts divide enterprise risk management on 4 area which are Strategy, Operational, Financial and reporting and Compliance. In addition, there are internal factors within the organization that influence the firm value, the internal factors are Slack and Leverage. Therefore, this research aimed to study the influence Enterprise Risk Management on firm value measured by Tobin’s Q through internal operational factors of companies listed on the Stock Exchange of Thailand. The population used in this study was the companies listed on the Stock Exchange of Thailand. The specific sampling method was used to select only the companies in the SET100 Index continuously from 2015 – 2018, found a total of 61 companies, totaling 244 samples. Collect data used for statistical analysis from financial reports and annual reports. Research techniques used in this research were correlation coefficient analysis and structural equation techniques using path analysis methods. The result of research show the strategy, operational, financial and reporting and compliance with relevant regulations has direct effect on the firm value when operating factors within the organization regarding the financial risk of the business. The results of this research can use the relationship model from the study to consider and plan the risk management in the organization appropriately in order to create good business values in the future.
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