International Journal of Social Sciences and Humanities
Vol. 4 No. 2 (2026): International Journal of Social Sciences and Humanities

Determination of the Value of Banking Companies in Indonesia with Profitability as a Mediation Variable

Soeharjoto Soeharjoto (Faculty of Economics and Business, Universitas Trisakti, Jakarta, Indonesia)
Debbie Aryani Tribudhi (Faculty of Economics and Business, Universitas Trisakti, Jakarta, Indonesia)



Article Info

Publish Date
30 Jun 2026

Abstract

Purpose of this research is to analyze the influence of banking competition, the implementation of sustainable financial policies, with Net Interest Margin, Capital Adequacy Ratio, Loan to Deposit Ratio, Non-Performing Loan as control variables on the value of banking companies in Indonesia with profitability as a mediating variable and COVID-19 as a moderating variable. The sample was taken using purposive sampling with the criteria of banking stocks listed on the Indonesian Stock Exchange from 2018-2022. The research uses panel data regression with the unbalanced method. Results shown, Market Share, Herfindahl-Hirschman Index, Corporate Governance Index, Loans to Deposit Ratio, Non-Performing Loans, Market Share moderated by COVID-19, and Social Index moderated by COVID-19 were proven to have a negative and significant impact on Return on Assets. Economic Index, Environmental Index, Capital Adequacy Ratio, and Environmental Index moderated by COVID-19 were not proven to have a significant effect on Return on Asset. Social Index, Net Interest Margin, Herfindahl-Hirschman Index moderated by COVID-19, Economic Index moderated by COVID-19, and Corporate Governance Index moderated by COVID-19 were proven to have a positive and significant effect on Return on Asset. Return on Asset has been proven to have a positive and significant effect on Tobin’s Q, whereas Return on Asset moderated by COVID-19 has not been proven to have a significant effect on Tobin’s Q.

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Journal Info

Abbrev

ijssh

Publisher

Subject

Arts Environmental Science Law, Crime, Criminology & Criminal Justice Social Sciences

Description

(IJSSH). It is an international refereed journal in english published four monthly (every February, June, and October). The IJSSH is an international peer-reviewed, electronic, online journal in english that provides rapid publication of articles in all areas of the social science, humanity and ...