Determinants of Enterprise Risk Management (ERM) and The Impact of ERM on Firm Performance: An Empirical Analysis of Indonesias Public Listed Banking Firms

Objectives: This paper examines the influential factors of potential adoption of ERM and the impact of ERM adoption on the public listed banking firms� performances in Indonesia during 2009-2017.

Methodology: We use logistic regression to test four potential factors as the driving forces behind the potential adoption of ERM and linear regression to test the impact of ERM on firms� performances.

Findings: Our result suggests that firms with greater size, having more institutional ownership, and being part of Multinational Company are more likely to adopt ERM, while the implementation of ERM has no significant impact on the firms� performance.

Novelty: Little empirical research has been conducted on the topic, especially in developing economies like Indonesia. This study will broaden the scope of literature by providing novel empirical evidence.