THE INFLUENCE OF ENTERPRISE RISK MANAGEMENT, GOOD CORPORATE GOVERNANCE, AND ESG DISCLOSURE ON CORPORATE FINANCIAL PERFORMANCE: A SYSTEMATIC LITERATURE REVIEW

Abstract

This article examines how Enterprise Risk Management (ERM), Good Corporate Governance (GCG), and Environmental, Social, and Governance (ESG) disclosure shape corporate financial performance an increasingly pressing concern given growing demands for transparency, governance quality, and sustainability in today's business environment. The study seeks to understand how the joint application of these three governance mechanisms affects firm financial outcomes, particularly across emerging economies. To this end, a literature review was conducted on nine peer-reviewed articles published between 2018 and 2026, drawn from a diverse range of contexts including Indonesia, Malaysia, Vietnam, the ASEAN-5 region, Iran, Ghana, the United Kingdom, and the Nordic countries. The synthesis of these sources suggests that ERM consistently has a positive and significant effect on financial performance and firm value. GCG mechanisms, especially audit committee expertise, board size, and foreign ownership also contribute meaningfully to financial performance, although their effectiveness varies across institutional settings. ESG disclosure emerges as more than a direct determinant of firm value; it also serves as a moderator that strengthens the positive influence of ERM on corporate outcomes. Based on these findings, this study recommends that companies integrate ERM, GCG, and ESG simultaneously to enhance both financial performance and long-term organizational resilience.