IDEAS home Printed from https://ideas.repec.org/a/tec/journl/v29y2022i1p481-496.html
   My bibliography  Save this article

The effect of enterprise risks management, innovation towards sustainable finance moderated by intellectual capital

Author

Listed:
  • Herlina Lusmeida

    (Faculty of Economics and Business, Trisakti University, Indonesia)

  • Yvonne Augustine

    (Faculty of Economics and Business, Trisakti University, Indonesia)

Abstract

This study aims to find out how the influence of Enterprise Risk Management (ERM), innovation on Sustainable Finance in banking companies listed on the IDX for the 2017-2020 periods. By using a sample of 42 banking companies during the study period, then doing a regression analysis of the existing empirical model and MRA considering that this study uses moderating variables, then the panel data processing is carried out, then data processing from the sample used is carried out. The results obtained that ERM has a significant positive effect on SF, innovation has a significant positive effect on SF, IC has a significant positive effect on SF, while IC is unable to moderate a significant positive relationship between ERM and SF and IC is also unable to moderate a significant positive relationship between innovation and SF

Suggested Citation

  • Herlina Lusmeida & Yvonne Augustine, 2022. "The effect of enterprise risks management, innovation towards sustainable finance moderated by intellectual capital," Technium Social Sciences Journal, Technium Science, vol. 29(1), pages 481-496, March.
    • Handle: RePEc:tec:journl:v:29:y:2022:i:1:p:481-496
    DOI: 10.47577/tssj.v29i1.6011
    as

    Download full text from publisher

    File URL: https://techniumscience.com/index.php/socialsciences/article/view/6011
    Download Restriction: no
    File URL: https://techniumscience.com/index.php/socialsciences/article/view/6011/2162
    Download Restriction: no
    File URL: https://libkey.io/10.47577/tssj.v29i1.6011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nofryanti & Roy Sembel & Yvonne Augustine & Regina Jansen Arsjah, 2021. "Sustainability Performance and Sustainable Development Goals," International Journal of Sustainable Development & World Policy, Conscientia Beam, vol. 10(1), pages 1-7.
    2. Kalinga Jagoda & Patrick Wojcik, 2019. "Implementation of risk management and corporate sustainability in the Canadian oil and gas industry," Accounting Research Journal, Emerald Group Publishing Limited, vol. 32(3), pages 381-398, September.
    3. Hermes, Niels & Lensink, Robert & Mehrteab, Habteab T., 2005. "Peer Monitoring, Social Ties and Moral Hazard in Group Lending Programs: Evidence from Eritrea," World Development, Elsevier, vol. 33(1), pages 149-169, January.
    4. Francisco Javier Forcadell & Elisa Aracil & Fernando Úbeda, 2019. "The Influence of Innovation on Corporate Sustainability in the International Banking Industry," Sustainability, MDPI, vol. 11(11), pages 1-15, June.
    5. Sarooghi, Hessamoddin & Libaers, Dirk & Burkemper, Andrew, 2015. "Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors," Journal of Business Venturing, Elsevier, vol. 30(5), pages 714-731.
    6. Arena, Marika & Arnaboldi, Michela & Azzone, Giovanni, 2010. "The organizational dynamics of Enterprise Risk Management," Accounting, Organizations and Society, Elsevier, vol. 35(7), pages 659-675, October.
    7. Anne E. Kleffner & Ryan B. Lee & Bill McGannon, 2003. "The Effect of Corporate Governance on the Use of Enterprise Risk Management: Evidence From Canada," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 6(1), pages 53-73, February.
    8. Nofryanti & Roy Sembel & Yvonne Augustine & Regina Jansen Arsjah, 2021. "Sustainability Performance and Sustainable Development Goals," International Journal of Sustainable Development & World Policy, Conscientia Beam, vol. 10(1), pages 1-7.
    9. Fatemi, Ali M. & Fooladi, Iraj J., 2013. "Sustainable finance: A new paradigm," Global Finance Journal, Elsevier, vol. 24(2), pages 101-113.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Ruiz-Canela López, 2021. "How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company?," JRFM, MDPI, vol. 14(3), pages 1-26, March.
    2. Leen Paape & Roland F. Spekl�, 2012. "The Adoption and Design of Enterprise Risk Management Practices: An Empirical Study," European Accounting Review, Taylor & Francis Journals, vol. 21(3), pages 533-564, January.
    3. Evan M. Eastman & Jianren Xu, 2021. "Market reactions to enterprise risk management adoption, incorporation by rating agencies, and ORSA Act passage," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 24(2), pages 151-180, June.
    4. Christiansen, Ulrik & Thrane, Sof, 2014. "The prose of action: The micro dynamics of reporting on emerging risks in operational risk management," Scandinavian Journal of Management, Elsevier, vol. 30(4), pages 427-443.
    5. Simon Ashby & Trevor Buck & Stephanie Nöth-Zahn & Thomas Peisl, 2018. "Emerging IT Risks: Insights from German Banking," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(2), pages 180-207, April.
    6. Traldi, Rebecca & Silva, Julie A. & Potapov, Peter & Tyukavina, Alexandra & Epprecht, Michael & Gore, Meredith L. & Phompila, Chittana, 2023. "Cultivating inequality? Regional rubber dynamics and implications for voluntary sustainability programs in Lao PDR," World Development, Elsevier, vol. 170(C).
    7. Wafa Mohammad Abdaljabar & Norhayati Zakuan & Muhamad Zameri Mat Saman & Mariam Setapa, 2024. "The Practice of Enterprise Risk Management and Sustainable Performance in Jordan," Information Management and Business Review, AMH International, vol. 16(1), pages 329-342.
    8. Choi, Sanghak, 2024. "Climate change exposure and the use of short-term debt," Finance Research Letters, Elsevier, vol. 65(C).
    9. Therese R. Viscelli & Mark S. Beasley & Dana R. Hermanson, 2016. "Research Insights About Risk Governance," SAGE Open, , vol. 6(4), pages 21582440166, November.
    10. Mónica Hernández-Madrigal & Cristina Aibar-Guzmán & Beatriz Aibar-Guzmán & Élfego Ramírez-Flores, 2020. "Are external pressures always behind ERM implementation? Evidence from Spanish listed firms," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 86-100, September.
    11. Danijela Miloš Sprčić & Marina Mešin Žagar & Željko Šević & Mojca Marc, 2016. "Does enterprise risk management influence market value – A long-term perspective," Risk Management, Palgrave Macmillan, vol. 18(2), pages 65-88, August.
    12. Bui, Binh & Cordery, Carolyn J. & Wang, Zhichao, 2019. "Risk management in local authorities: An application of Schatzki's social site ontology," The British Accounting Review, Elsevier, vol. 51(3), pages 299-315.
    13. Piñeiro-Chousa, Juan & López-Cabarcos, M. Ángeles & Romero-Castro, Noelia María & Pérez-Pico, Ada María, 2020. "Innovation, entrepreneurship and knowledge in the business scientific field: Mapping the research front," Journal of Business Research, Elsevier, vol. 115(C), pages 475-485.
    14. Dufhues, Thomas & Buchenrieder, Gertrud & Quoc, Hoang Dinh & Munkung, Nuchanata, 2011. "Social capital and loan repayment performance in Southeast Asia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 679-691.
    15. Lebelle, Martin & Lajili Jarjir, Souad & Sassi, Syrine, 2022. "The effect of issuance documentation disclosure and readability on liquidity: Evidence from green bonds," Global Finance Journal, Elsevier, vol. 51(C).
    16. Belen Lopez & Alfonso Torres & Alberto Ruozzi & Jose Antonio Vicente, 2020. "Main Factors for Understanding High Impacts on CSR Dimensions in the Finance Industry," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    17. Luminita Postelnicu & Niels Hermes, 2018. "Microfinance Performance and Social Capital: A Cross-Country Analysis," Journal of Business Ethics, Springer, vol. 153(2), pages 427-445, December.
    18. Li Gan & Manuel A. Hernandez & Yanyan Liu, 2018. "Group Lending With Heterogeneous Types," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 895-913, April.
    19. Al-Amri, Khalid & Davydov, Yevgeniy, 2016. "Testing the effectiveness of ERM: Evidence from operational losses," Journal of Economics and Business, Elsevier, vol. 87(C), pages 70-82.
    20. Marco Caliendo & Daniel Rodríguez, 2024. "Divergent thinking and post-launch entrepreneurial outcomes: non-linearities and the moderating role of experience," Small Business Economics, Springer, vol. 62(4), pages 1523-1553, April.

    More about this item

    Keywords

    ERM; Innovation; Intellectual Capital (IC); Sustainable Finance; Banking;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tec:journl:v:29:y:2022:i:1:p:481-496. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tasente Tanase (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.