The Effect of Enterprise Risk Management and Capital Structure on Corporate Profitability and Its Impact on Corporate Value Siti Salama Amar (a*), Bambang Tjahjadi (b)
a) Faculty of Economics and Business, Airlangga University, Surabaya
Faculty of Economics and Business, Madura University
*siti.salama.amar-2020[at]feb.unair.ac.id
b) Faculty of Economics and Business, Airlangga University, Surabaya
bambang.tjahjadi[at]feb.unair.ac.id
Abstract
The purpose of this study was to build an understanding of the effect of enterprise risk management and capital structure on corporate profitability and its impact on corporate value. This study employs a quantitative research approach that utilizes general structural component analysis as the analytical tool. The number of samples was 120 financial institutions in Indonesia, and data analysis used the SEM-PLS. The results of the analysis indicate significant relationships between enterprise risk management, capital structure, and corporate profitability. Furthermore, the findings suggest that enhanced profitability positively influences corporate value, highlighting the importance of effective risk management and strategic capital allocation in financial institutions. The results of the analysis indicate significant relationships between enterprise risk management, capital structure, and corporate profitability. Furthermore, the findings suggest that enhanced profitability positively influences corporate value, highlighting the importance of effective risk management and strategic capital allocation in financial institutions. The results of this study indicate that enterprise risk management has a significant and positive effect on corporate profitability, capital structure has a significant effect on corporate profitability, capital structure has a significant and positive effect on corporate value, enterprise risk management has a significant and positive effect on corporate value, and corporate profitability has a significant and positive effect on corporate value.
Keywords: Enterprise Risk Management, Capital Structure, Corporate Profitability, Corporate Value.
