Leverage, Firm Value and Enterprise Risk Management: Evidence from Consumer Cyclical

This study aims to examine the effect of leverage on firm value with Enterprise Risk Management (ERM) being employed as an intermediary variable in consumer cyclical companies This study involved a sample of 209 companies listed in the Consumer Cyclicals sector on the Indonesia Stock Exchange (IDX) for the period 2020 until 2022. Data were obtained from annual reports of public companies in the consumer cycle sector in Indonesia. The data were analyzed using multiple regression analysis facilitated by SPSS software version 21.0. The results of this research show that leverage has a positive effect on firm value and ERM as an intervening variable between leverage and firm value. This study contributes to the limited body of research in exploring the impact of leverage and firm value in emerging markets. Future research could conduct more studies in various industry sectors to generate more insights in this research area.