Michael Goman, Fransiskus Eduardus DAROMES, Paulus Tangke


This study provides empirical evidence of the interaction of sustainability reporting and Enterprise risk management on business performance. A number of previous literature has found a significant positive effect of ERM implementation on overall business performance, however, the number of studies investigating the interaction of sustainability reporting and ERM is still limited. We build this research model based on modern portfolio theory and stakeholder theory. Data testing was carried out using the moderation regression method in examining the three variable relationships above. The results showed that there was a significant positive effect of ERM on business performance as measured using EVA. Meanwhile, sustainability reporting, although able to strengthen the coefficient of determination relationship between ERM and EVA, does not have a significant moderating effect on the relationship between the two variables.


ERM, EVA, Modern Portfolio Theory, Stakeholder Theory, Sustainability Reporting

Full Text:



Adams, C. A., & Frost, G. R. (2008, December). Integrating sustainability reporting into management practices. In Accounting Forum (Vol. 32, No. 4, pp. 288-302). Taylor & Francis.

Aggarwal, P. (2013). Sustainability reporting and its impact on corporate financial performance: A literature review. Indian Journal of Commerce and Management Studies, 4(3), 51.

Agustina, L., & Baroroh, N. (2016). The relationship between Enterprise Risk Management (ERM) and firm value mediated through the financial performance. Review of Integrative Business and Economics Research, 5 (1), 128.

Asia Sustainability Reporting (Asia SR) Rating 2018. (2019, February 12). Retrieved from

Attar, D., & Islahuddin, M. S. (2014). Pengaruh Penerapan Manajemen Risiko terhadap Kinerja Keuangan Perbankan yang terdaftar di Bursa Efek Indonesia. Jurnal Administrasi Akuntansi: Program Pascasarjana Unsyiah, 3(1).

Aziz, N. A. A., Manab, N. A., & Othman, S. N. (2015). Exploring the perspectives of corporate governance and theories on sustainability risk management (SRM). Asian Economic and Financial Review, 5(10), 1148.

Brundtland, G. H. (1987). Brundtland report. Our common future. Comissão Mundial.

Chakravarthy, B. S. (1986). Measuring strategic performance. Strategic management journal, 7(5), 437-458.

Cintya, Y. A. (2014). Implementasi Standar Internasional ISO 31000: 2009 Risk Management–Principles and Guidelines di Sektor Energi–Minyak dan Gas. Crmsindonesia/knowledge/crmsarticles/implementasi–standar–internasional–iso–31000-2009-riskmanagement---principl.

Committee of Sponsoring Organizations of the Treadway Commission. (2004). The (COSO).(2004). Enterprise Risk Management-Integrated Framework: Executive Summary.

Committee of Sponsoring Organizations of the Treadway Commission. (2017). COSO Enterprise Risk Management: Integrating with Strategy and Performancement. AICPA.

Coopers, P. W. (2008). Enterprise Risk Management (ERM) Benchmarking Survey 2008.

Daromes, F., Ng, S., & Wijaya, N. (2020). Carbon Emissions Disclosure as Mechanism to Increase Environmental Performance and Control of Idiosyncratic Risk: How They Impact Firm Value?. Indonesian Journal of Sustainability Accounting and Management, 4(2). doi:

Dickinson, G. (2001). Enterprise risk management: Its origins and conceptual foundation. The Geneva Papers on Risk and Insurance. Issues and Practice, 26(3), 360-366.

Elkington, J. (1994). Triple bottom line revolution: reporting for the third millennium.

Fadun, O. S. (2013). Risk management and risk management failure: Lessons for business enterprises. International Journal of Academic Research in Business and Social Sciences, 3(2), 225.

Fitri, D. A., Mardani, R. M., & ABS, M. K. (2019). ANALISIS PENGARUH KINERJA KEUANGAN, MANAJEMEN RISIKO DAN MANAJEMEN MODAL KERJA TERHADAP RETURN SAHAM (Studi Kasus pada Perusahaan Makanan dan Minuman yang Terdaftar di BEI tahun 2014-2016). Jurnal Ilmiah Riset Manajemen, 8(8).

Florio, C., & Leoni, G. (2017). Enterprise risk management and firm performance: The Italian case. The British Accounting Review, 49(1), 56-74.

Freeman, R. E. (1984). Stakeholder management: framework and philosophy. Pitman, Mansfield, MA.

García-Zamora, E., Gonzalez-Benito, O., & Munoz-Gallego, P. A. (2013). Organizational and environmental factors as moderators of the relationship between multidimensional innovation and performance. Innovation, 15(2), 224-244.

Gordon, L. A., Loeb, M. P., & Tseng, C. Y. (2009). Enterprise risk management and firm performance: A contingency perspective. Journal of accounting and public policy, 28(4), 301-327.

Gujarati, D. N. (2006). Dasar-dasar Ekonometrika jilid 1. Jakarta: Penerbit.

Hamudiana, A., & Achmad, T. (2017). Pengaruh Tekanan Stakeholder Terhadap Transparansi Laporan Keberlanjutan Perusahaan-Perusahaan di Indonesia. Diponegoro Journal of Accounting, 6(4), 226-236.

Hoyt, R. E., & Liebenberg, A. P. (2011). The value of enterprise risk management. Journal of risk and insurance, 78(4), 795-822.

Karyawati, N. N., Yuniarta, G. A., & Sujana, E. (2017). Pengaruh tingkat pengungkapan laporan keberlanjutan terhadap kinerja keuangan perusahaan. e-Journal S1 Ak Universitas Pendidikan Ganesha, 7(1), 1-10.

Keefe, T. B., King, R. D., & Gaver, K. M. (1994). Audit fees, industry specialization, and compliance with GAAS reporting standards. Auditing, 13(2), 41.

Kiymaz, H. (2006). The impact of announced motives, financial distress, and industry affiliation on shareholders' wealth: Evidence from large sell-offs. Quarterly Journal of Business and Economics, 69-89.

Kumar, S., & Rao, P. (2015). A conceptual framework for identifying financing preferences of SMEs. Small Enterprise Research, 22(1), 99-112.

Lai, F. W. (2011). A strategic framework for value enhancing enterprise risk management.

Lechner, P., & Gatzert, N. (2018). Determinants and value of enterprise risk management: empirical evidence from Germany. The European Journal of Finance, 24(10), 867-887.

Lin, Y., Wen, M. M., & Yu, J. (2012). Enterprise risk management: Strategic antecedents, risk integration, and performance. North American Actuarial Journal, 16(1), 1-28.

Markowitz, H. (1952). Modern portfolio theory. Journal of Finance, 7(11), 77-91.

McShane, M. K., Nair, A., & Rustambekov, E. (2011). Does enterprise risk management increase firm value? Journal of Accounting, Auditing & Finance, 26(4), 641-658.

Nielson, N. L., Kleffner, A. E., & Lee, R. B. (2005). The evolution of the role of risk communication in effective risk management. Risk management and insurance review, 8(2), 279-289.

Niemann, L., & Hoppe, T. (2018). Sustainability reporting by local governments: a magic tool? Lessons on use and usefulness from European pioneers. Public management review, 20(1), 201-223.

No, K. K. B. L. (2014). Kep-431/BL/2012. Penyampaian Laporan Tahunan Emiten Atau Perusahaan Publik.

Nocco, B. W., & Stulz, R. M. (2006). Enterprise risk management: Theory and practice. Journal of applied corporate finance, 18(4), 8-20.

Quon, T. K., Zéghal, D., & Maingot, M. (2012). Enterprise risk management and business performance during the financial and economic crises. Problems and Perspectives in Management, 10(3), 95-103.

Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804.

Robert, K. S., & David, N. P. (1996). The balanced scorecard: translating strategy into action. Harvard Business School Press, Boston, Massachusetts, 9.

Sarwono, J. (2018). Statistik untuk Riset Skripsi. Yogyakarta: Andi.

Selvarajan, T. T., Ramamoorthy, N., Flood, P. C., Guthrie, J. P., MacCurtain, S., & Liu, W. (2007). The role of human capital philosophy in promoting firm innovativeness and performance: Test of a causal model. The International Journal of Human Resource Management, 18(8), 1456-1470.

Shad, M. K., Lai, F. W., Fatt, C. L., Klemeš, J. J., & Bokhari, A. (2019). Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework. Journal of Cleaner production, 208, 415-425.

Sharma, A., Iyer, G. R., Mehrotra, A., & Krishnan, R. (2010). Sustainability and business-to-business marketing: A framework and implications. Industrial marketing management, 39(2), 330-341.

Singgih, M. L. (2008). Pengukuran kinerja perusahaan dengan metode economic value added. ITS Surabaya.

Strang, K. (Ed.). (2015). The Palgrave handbook of research design in business and management. Springer.

Tahir, I. M., & Razali, A. R. (2011). The Relationship between enterprise risk management (ERM) and firm value: Evidence From Malaysian public listed companies. International journal of economics and management sciences, 1(2), 32-41.

Templeton, G. F. (2011). A two-step approach for transforming continuous variables to normal: implications and recommendations for IS research. Communications of the Association for Information Systems, 28(1), 4.

Vargo, S. L., & Lusch, R. F. (2014). Evolving to a new dominant logic for marketing. In The Service-Dominant Logic of Marketing (pp. 21-46). Routledge.

Waweru, N., & Kisaka, E. S. (2012, August). The effect of enterprise risk management implementation on the value of companies listed in the Nairobi stock exchange. AAA.

Weiss, N. A. (1992). Introductory statistics: Neil A. Weiss (10th ed.). San Francisco: Pearson Addison-Wesley.

Wijayanti, R. (2016). Pengaruh pengungkapan sustainability report terhadap kinerja keuangan perusahaan.

Wu, Y., Marshall, A., Chipulu, M., Li, Q., & Ojiako, U. (2014). Enterprise risk management and firm value within China's insurance industry. Professional Accountant, 14(1), 1-10.


Zahid, M., & Ghazali, Z. (2017). Corporate Sustainability Practices and Firm's Financial Performance: The Driving Force of Integrated Management System. Global Business & Management Research, 9.



  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.