Ria Nelly Sari

A broader community is currently paying a significant deal of attention to the existence of social enterprises. This is due to the belief that social enterprises can bring answers to community issues. Village-Owned Enterprises (VOEs), as one of the social enterprises that are expected to continue providing sustainable welfare for villages, must always strive for excellent organizational performance to fulfill their objectives. This study is based on the notion of participatory governance; it seeks to evaluate the effect of governance practices on value co-creation, as well as the effect these practices have on organizational performance. This paper collects data utilizing a structured questionnaire and a quantitative research approach. A cluster sampling methodology is used. The respondents are directors of VOEs in Riau Province, Indonesia. One hundred twenty-five data were analyzed using partial least squares (PLS) of the second order. The results reveal that good governance practices will boost value co-creation, enhancing organizational performance. The findings suggest that VOEs should pay particular attention to their process of managing, monitoring, and accountability to achieve value co-creation and fulfill their mission. The uniqueness of this study lies in its investigation of the governance practices of VOEs and the crucial role of value co-creation in enhancing their organizational performance.

Acknowledgment
We express our gratitude and appreciation to The Directorate of Resources, The Directorate General of Higher Education, The Ministry of Education, Culture, Research and Technology (Ref. 1615/UN.19.5.1.3/PT.01.03/2022) for financial support for this study. We also express the same appreciation to LPPM Universitas Riau for facilitating this research project.

This study aims to assess the influence of enterprise risk management and corporate governance mechanisms on companies’ financial and market performance. This study’s population is all companies registered on the Indonesia Stock Exchange in 2019. The purposive sampling method was used to select 664 listed companies to obtain a total sample of 242 companies. This study used a quantitative approach and analyzed data using Partial Least Square (PLS). The results showed that enterprise risk management (p < 0.01; β = 0.28) and corporate governance mechanisms (p = 0.01; β = 0.14) affect company financial performance. Enterprise risk management (p < 0.01; β = 0.16) affects company market performance, but corporate governance mechanisms (p = 0.24; β = 0.05) do not affect company market performance. This paper gives stakeholders a better understanding of the relationship between enterprise risk management, corporate governance, financial performance, and corporate market performance; consequently, it can serve as a resource for decision-making. For management, these results can be used as a guideline for taking appropriate steps in managing risk and implementing corporate governance to improve the company’s financial and market performance.

Type of the article: Research Article

Abstract
The increasing importance of intangible resources and narrative disclosure in a knowledge-based economy has raised critical questions regarding their role in shaping corporate investment behavior, particularly within state-owned enterprises operating under complex institutional constraints. This study examined the direct effect of intellectual capital on investment decisions and evaluated the mediating roles of annual and audit report readability in this context. The empirical analysis is based on a balanced pooled data set of 20 non-financial Indonesian State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange for the period 2018–2023, totaling 120 firm-year observations. These firms, representing strategic sectors such as infrastructure, energy, and telecommunications, were selected due to their high asset intensity and pivotal role in national development under bureaucratic oversight. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the results reveal that intellectual capital has a significant positive effect on investment decisions (β = 0.401; t = 7.075), explaining 18.7% of the variance, which increases to 53.6% when incorporating firm-level control variables. Conversely, intellectual capital does not significantly influence report readability, and neither readability measure affects investment decisions, indicating an absence of mediation effects. Firm size emerges as the primary determinant, while profitability and leverage remain insignificant. In conclusion, investment decisions in Indonesian SOEs are driven by internal resource efficiency and organizational scale rather than narrative clarity. These findings suggest that in bureaucratic environments, report readability reflects compliance-oriented disclosure rather than effective informational signaling, highlighting a transparency paradox.

Acknowledgment
This research was made possible through the full support of Universitas Riau, particularly via its Institute for Research and Community Service.