THE EFFECT OF THE BOARD OF COMMISSIONERS, INDEPENDENT COMMISSIONERS, AND GENDER ON ERM WITH FIRM SIZE AS A MODERATION

Abstract

This research examines the influence of board of commissioners size, independent commissioners, and gender diversity on Enterprise Risk Management (ERM) disclosure, with firm size as a moderating variable in basic materials sector companies listed on the Indonesia Stock Exchange during 2021–2024. Using a quantitative approach, this study employs secondary data collected from annual reports and purposive sampling, resulting in 293 observations. The data were analyzed using Moderated Regression Analysis (MRA). The findings indicate that board of commissioners size positively affects ERM disclosure, while independent commissioners negatively affect ERM disclosure. Meanwhile, gender diversity does not significantly influence ERM disclosure. The results further show that firm size weakens the relationship between board of commissioners size and ERM disclosure, strengthens the relationship between independent commissioners and ERM disclosure, and does not moderate the relationship between gender diversity and ERM disclosure. This study contributes to the corporate governance and risk management literature by highlighting the moderating role of firm size in the relationship between governance mechanisms and ERM disclosure within Indonesian basic materials firms. This context has received limited attention in prior studies.