Increased ERM disclosure boosts firm value in Indonesian real estate companies.
The study looked at how enterprise risk management, debt levels, company size, and profitability affect the value of property and real estate companies in Indonesia. They used data from 32 companies listed on the Indonesian Stock Exchange and found that better risk management, higher debt levels, and higher profitability all lead to higher company value. However, larger companies tend to have lower value, as investors prefer companies with high profits relative to their size.