Title:
Profitability AS a Mediator of the Effect of Enterprise Risk Management Disclosure and Intellectual Capital Disclosure on Firm Value in Indonesian Companies

Authors:
Nana Supriatna*, Imam Abu Hanifah, Yeni Januarsi, Indonesia

Abstract:

This study aims to examine the effect of Enterprise Risk Management Disclosure and Intellectual Capital Disclosure on firm value, with profitability US a mediating variable, in mining-subsector manufacturing companies listed on the Indonesia Stock Exchange from 2019 to 2023. The study is grounded in stakeholder theory, which emphasizes the importance of non-financial disclosure in meeting stakeholder expectations.

The research employs a quantitative approach using Structural Equation Partial Modeling Least Square (SEM-PLS) with Warp PLS 7.0 software. The findings indicates that both Enterprise Risk Management Disclosure and Intellectual Capital Disclosure have a positive effect on firm value, with Enterprise Risk Management Disclosure having a statistically significant influence. Moreover, profitability significantly mediates the effect of both Enterprise Risk Management Disclosure and Intellectual Capital Disclosure on firm value. These results suggest that the disclosure of risk and intellectual capital affects not only market perception but also contributes to value creation through profitability. This study provides theoretical contributions to stakeholder theory and practical insights for managers on the strategic role of non-financial information. Future research should consider expanding to other sectors, extending the observation period, and including additional relevant variables.

DOI: https://doi.org/10.51505/IJEBMR.2025.9814