THE INFLUENCE OF RISK GOVERNANCE MECHANISM TO FINANCIAL PERFORMANCE OF STATE-OWNED ENTERPRISES IN INDONESIA

• Main Author: Eka N Napitupulu, Anastasya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/74492
• Institution: Institut Teknologi Bandung

SOE in Indonesia has been one of the many sectors that has great contributions to Indonesia’s state budget. Maintaining the health of SOE is crucial. Furthermore, return on equity has been noticed as one aspect used to measure SOE’s health. This research focuses on the influence of risk governance mechanism of state-owned enterprises in Indonesia. This study also examines on the role of risk governance in determining the SOE’s financial performance. This research utilized secondary data from 21 SOE’s that has been listed in Indonesia Stock Exchange from 2017-2021 and had disclosed financial statements and annual reports to public. Through system generalized method of moments (GMM), this research provides prove that risk governance mechanism and the effectiveness positively correlate with return on equity of state-owned enterprises in Indonesia. Based on the author’s findings, most of SOE has already follows regulator rules in establishing risk governance to maintain SOE’s stability and health.