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Implementation of Good Corporate Governance, Risk Management, and Financial Digitalization on Bank Performance and Their Impact on Firm Value Aminudin Aminudin; Hari Gursida; Yohanes Indrayono
Return : Study of Management, Economic and Bussines Vol. 4 No. 10 (2025): Return: Study of Management, Economic and Business
Publisher : PT. Publikasiku Academic Solution

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.57096/return.v4i10.410

Abstract

This study aims to analyze the influence of Good Corporate Governance (GCG), risk management, and financial digitalization on bank performance and their impact on company value. This research fills a literature gap by simultaneously analyzing the relationship among these three strategic factors and their combined effect on banking performance and company value, specifically within the context of the Indonesian banking industry confronting OJK regulatory dynamics, digital competition, and global market pressures. The study employs a quantitative approach using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The data are sourced from the annual and sustainability reports of KBMI 3 and KBMI 4 banks over specific periods, utilizing financial performance indicators and company value measures. The study’s results show that (1) GCG does not affect bank performance but has a positive effect on company value; (2) risk management negatively affects bank performance but does not influence company value; (3) financial digitalization positively affects bank performance but does not influence company value; (4) bank performance itself does not affect company value; and (5) mediation testing indicates that bank performance does not mediate the influence of GCG, risk management, or financial digitalization on company value, although the direction of relationships shows varying positive and negative effects. These findings, aligned with previous literature, demonstrate that the influence of GCG, risk management, and digitalization on corporate performance and value is contextual, shaped by the specific indicators applied and the mechanisms examined.
Integration of Corporate Governance, Risk Management, and Financial Digitalization: Its Impact on Banking Company Performance and Value Aminudin Aminudin; Hari Gursida; Yohanes Indrayono
Journal of World Science Vol. 4 No. 10 (2025): Journal of World Science
Publisher : Riviera Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58344/jws.v4i10.1539

Abstract

This study aims to analyze the influence of the integration of corporate governance, risk management, and financial digitalization on the performance and value of banking companies in Indonesia. The research population includes foreign banks, government banks, and private banks classified as KBMI 3 and KBMI 4 for the 2019–2024 period. The research method used is explanatory with a quantitative approach. Data was obtained from annual reports, sustainability reports, and publications by the Financial Services Authority (OJK) and Bank Indonesia. Data analysis was carried out using Structural Equation Modeling (SEM-PLS). The results of the study show that corporate governance and risk management have a significant effect on company performance, while financial digitalization has a mediating role in increasing company value through increased operational efficiency and transparency. These findings affirm the importance of integrating governance, risk, and digitalization strategies in the face of the era of technology-based finance.