The Effect of Risk Management on Firm Value with Firm Performance as a Mediation (Study in Banking Industries Listed in IDX) for the year 2013-2017

Dippos Pasadena Situmorang, Yvonne Augustine

Abstract


This study aimed to analyze the influence of Credit Risk and Operational Risk on Firm Value with Firm Performance as a mediation variable. With purposive sampling method obtained data from 35 Banking firms in Indonesia are taken from the Indonesia Stock Exchange 2013-2017 period. Using Structural Equation Modeling with AMOS program found that the Credit Risk and Operational Risk have a negative influence on Firm Value, Credit Risk and Operational Risk have a negative influence on Firm Performance, and Firm Performance have a positive influence on Firm Value. As a mediation variable, Firm Performance strengthen the influence of Credit Risk and Operational Risk on Firm Value significantly .

Keywords: Firm Value, Firm Performance, Risk Management, Tobin's Q, ROA, NPL, CER

DOI: 10.7176/RJFA/10-8-01

Publication date: April 30th 2019


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ISSN (Paper)2222-1697 ISSN (Online)2222-2847

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