AFRE Accounting Financial Review
Vol. 9 No. 1 (2026): March 2026

Financial perfomance as a determinant of bank reputation: An empirical study from bank in ASEAN

Nyayu Khalilah Putri (Department of Management, Faculty of Economics, Universitas Sriwijaya)
Mohamad Adam (Department of Management, Faculty of Economics, Universitas Sriwijaya)
Isnurhadi (Department of Management, Faculty of Economics, Universitas Sriwijaya)
Mu'izzuddin (Department of Management, Faculty of Economics, Universitas Sriwijaya)



Article Info

Publish Date
11 May 2026

Abstract

This study aims to analyze the relationship between financial performance indicators and bank reputation. An em-pirical approach is implemented using a sample of publicly listed banks, with financial data obtained from their an-nual reports. The analysis method used is statistical regression to test the effect of various financial performance indicators on bank reputation. The findings of the study indicate that both ROA and NPL do not have a significant effect on bank reputation. In contrast, NIM and BOPO show a positive relationship, meaning that profitability and operational efficiency can improve bank reputation. Moreover, DAR has a positive effect on bank reputation, indicating that higher leverage can reflect growth potential. However, DER has a negative effect on bank reputation, indicating that higher debt levels relative to equity can reduce stakeholder trust. In addition, LDR also has a negative effect on reputation, highlighting concerns related to liquidity risk. These findings provide important insights for banking institutions, indicating that effective financial performance management can strengthen their reputation and competitiveness in the market. This study contributes to the literature by employing Cumulative Abnormal Return (CAR) as a dynamic, market-based proxy for bank reputation, which is an approach that is relatively underutilized in ASEAN banking research. By capturing investor reactions to financial disclosures, this method offers a more responsive and nuanced measure of reputation than traditional indicators such as market value or brand perception.

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Journal Info

Abbrev

afr

Publisher

Subject

Economics, Econometrics & Finance

Description

Accounting and Financial Review (AFRe), is a publication of Graduate School Program, University of Merdeka Malang. The journal is an article published continuously which is intended not only as a place to share ideas, study, and analysis but also as an information channel to improve and develop ...