Assessing the Dynamics of ERM and Sustainability Disclosure in Enhancing Firm Value: Insights from IDX80 Listed Companies

Investment activities undertaken by investors require various pieces of information about the company selected as an investment opportunity. In addition to financial information, non-financial information can serve as an important indicator for investors in evaluating the company. Thus, non-financial information contributes to shaping perceptions of the company's performance and growth potential. Firm value reflects how valuable a company is in the eyes of investors, highlighting the significance of firm value to investors. The aim of this study is to assess the effects of enterprise risk management (ERM) and sustainability disclosure on increasing firm value. The sample includes companies listed on IDX80 on the Indonesia Stock Exchange from 2020 to 2023. Using a purposive random sampling approach, 39 companies were chosen, resulting in a total of 156 observations. Data were gathered through content analysis, and multiple linear regression analysis was used to investigate the relationships. The results indicate that both ERM and sustainability disclosure positively influence firm value when considered together; however, individually, both factors demonstrate a negative impact on firm value. This research significantly contributes to the field of accounting science, particularly for corporate insights. Where companies can consider the disclosures made, if the disclosures made will burden the company then it can be reconsidered. Especially if the disclosures are related to risk where this will worsen the company's image if the company has a high risk.