PENGARUH RISK MONITORING COMMITTEE DAN BUSINESS RISK TERHADAP KINERJA KEUANGAN DAN NILAI PERUSAHAAN (Studi pada Bank Konvensional yang Terdaftar di BEI Periode 2015-2018)

Abstract

This research aimed to examine the effect of characteristic of risk monitoring committee and business risk on the financial performance. Moreover, it also aimed to examine the effect of risk monitoring committee, business risk and financial performance on the firm value. The population was 43 banking companies which were listed on Indonesia Stock Exchange 2015-2018. Furthermore, the research was quantitative with comparative causal as its approach. Additionally, the data collection technique used purposive sampling. In line with, there were 27 bank companies as sample. In addition, the data analysis technique used was path analysis with Smart PLS 3.0. The research result concluded a meeting of risk monitoring committee had positive and significant effect on the financial performance. On the other hand, business risk had negative and significant effect on the financial performance. Meanwhile, independency of risk monitoring committee as well as financial performance had positive and significant effect on the firm value.