Jakman

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Vol. 7 No. 4 (2026): September

Articles

Asset Turnover Mediates the Effects of ERM and Sales Growth on the Profitability

S Satriyo Wibowo F Farah Margaretha Leon H Henny Setyo Lestari E Elwi Syam A Agustinus Sri Wahyudi N Nila Pusvikasari
03 September 2026 Vol. 7 No. 4 (2026): September https://doi.org/10.35912/jakman.v7.n4.p335-356.2026
Abstract
03 Sep 2026

Purpose: This study examines whether asset turnover mediates the effects of Enterprise Risk Management (ERM) and sales growth on profitability, while assessing the role of firm size in influencing this relationship.
Research Methodology: The study analyzes 143 non-financial listed firms on the Indonesia Stock Exchange during 2018–2025, producing a balanced panel of 1,144 observations. The analysis employs a Fixed Effects Model, with mediation tested through causal path analysis and moderation examined using the interaction term between TATO and firm size.
Results: The findings show that ERM and sales growth positively affect Total Asset Turnover (TATO). TATO is the strongest predictor of Return on Assets (ROA) and partially mediates the relationship between ERM, sales growth, and profitability. However, the interaction between TATO and firm size has a negative and significant effect, indicating that larger firms experience reduced efficiency in converting asset utilization into profitability.
Conclusion: Operational efficiency serves as a key channel through which risk management and sales growth enhance profitability. However, increasing firm size may weaken this conversion process due to greater organizational complexity.
Limitations: The study is limited to 143 non-financial firms and uses an aggregate ERM disclosure index, which may not fully capture implementation maturity.
Contribution: This study contributes to the Resource-Based View and Contingency Theory by identifying asset efficiency as an overlooked mechanism in the ERM–performance relationship and demonstrating firm size as a boundary condition that influences efficiency-based value creation.

Keywords: Enterprise Risk Management Firm Size Return on Assets Sales Growth Total Asset Turnover Bahasa indonesia
How to Cite
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Wibowo, S., Leon, F. M., Lestari, H. S., Syam, E., Wahyudi, A. S., & Pusvikasari, N. (2026). Asset Turnover Mediates the Effects of ERM and Sales Growth on the Profitability. Jurnal Akuntansi, Keuangan, Dan Manajemen, 7(4), 335–356. https://doi.org/10.35912/jakman.v7.n4.p335-356.2026
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