How does Indonesian Investors respond to ERM Implementation Disclosure?

In Indonesia, enterprise risk management (ERM) disclosure is mandatory and is expected to be substantial risk mitigation for investors. However, it becomes a question of whether the investors respond positively to ERM disclosure. ERM implementation requires the company's resources that should impact its profitability. Thus, this study aims to provide empirical evidence of the effect of the ERM disclosure on company profitability and market value. Company profitability here is measured using Return on Assets (ROA), and the company's market value is measured using Tobin's Q Ratio. While ROA is profitability measured solely as report-based accounting, Tobin's Q consists of investor responses to company performance. This research also evaluates whether ROA mediates the relationship between ERM and Tobin's Q Ratio. We analyze 69 non-financial companies listed on the Indonesia Stock Exchange, the IDX80 Index 2019, using three years of data spanning 2018-2019. ERM value is generated from the company's annual report using content analysis. Using linear regression analysis, we found no significant effect on ERM implementation disclosure on ROA, but there is a significant negative effect on ERM's implementation disclosure on Tobin's Q Ratio. Meanwhile, the ROA itself positively affects Tobin's