The Influence of Enterprise Risk Management Reporting on Firm Value of the SET100

Abstract

The objectives of this research were to study the level of Enterprise Risk Management (ERM) reporting and to study the positive influence of ERM on the Firm Value f companies on the Stock Exchange of Thailand (SET100). The study collected secondary data and also ERM data through the method of counting the word “risk” (in Thai) covering various search terms, i.e., “Strategic Risk”, “Operational Risk”, “Financial and Reporting Risk”, and “Relevant Compliance and Regulatory Risk”, that appeared in the 56-1 ONE REPORT from www.set.or.th. Regarding FV the study used the mean value of the data on the average trading price seven days before and after (15 days) the day that the report was announced and the data of related control variables of businesses from the stock market information. The data collection conditions according to the stratified sampling method were (1) annual reports from 2017–2021, (2) companies must not have an annual fiscal period end date of December 31st, and (3) must not be in the Financials or Consumer Products industry groups. The data search found 74 sample companies and obtained 370 sample reports from the 56-1 ONE REPORT. Analysis was conducted using textual analysis and word counting, descriptive statistics, and multiple regression analysis (MRA) to test the relationships. The results indicate that Firm Size (SIZE), Return On Assets (ROA) and the Technology industry group (control variables) have a positive influence on FV. Nevertheless, there is insufficient data to confirm the positive influence of ERM on FV in accordance with the research objectives.