<![CDATA[Background: Enterprise Risk Management (ERM) has been widely recognized as a strategic approach to managing organizational risks. However, previous studies have reported inconsistent findings regarding its effect on firm value, particularly in the financial sector. This study further examines whether financial performance and board independence strengthen the relationship between ERM and firm value. Objective: This study aims to investigate the effect of Enterprise Risk Management (ERM) on firm value and to examine the moderating roles of financial performance (ROA) and board independence in the Indonesian financial sector. Methods: This quantitative study employed panel data from 95 financial sector companies listed on the Indonesia Stock Exchange during 2019–2024, resulting in 570 firm-year observations. ERM was identified through Python-based content analysis of annual reports using predefined ERM-related keywords. Panel regression analysis was conducted using Common Effect, Fixed Effect, and Random Effect Models, with the most appropriate model selected through Chow, Hausman, and Lagrange Multiplier tests. Results: The findings indicate that ERM has a significant negative effect on firm value. However, financial performance (ROA) significantly strengthens the relationship between ERM and firm value, whereas board independence does not significantly moderate this relationship. Conclusion: ERM alone does not enhance firm value. Its effectiveness depends on strong financial performance, while board independence does not reinforce the value-creating role of ERM. These findings suggest that firms should integrate ERM with profitability improvement strategies to maximize shareholder value.]]>
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