International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS)
Vol. 6 No. 4 (2026): August

RISK TRANSPARENCY AND CORPORATE GOVERNANCE: KEYS TO ENHANCING FIRM VALUE IN INDONESIA'S BANKING SECTOR

Imanuriea Annisa Putri (Universitas Bandar Lampung)
Luke Suciyati Amna (Universitas Bandar Lampung)



Article Info

Publish Date
28 Jul 2026

Abstract

This study examines the effect of Corporate Risk Disclosure (CRD) and Good Corporate Governance (GCG) on firm value in banking companies listed on the Indonesia Stock Exchange during 2022-2024. Firm value is measured using Tobin's Q, CRD through a risk disclosure index, and GCG through independent commissioners, audit committees, and institutional ownership. A quantitative explanatory design was applied. Using purposive sampling, 23 banks were selected, yielding 69 firm-year observations. Secondary data were obtained from annual reports and financial statements and analyzed using multiple linear regression. The results show that CRD has a positive and significant effect on firm value. Independent commissioners, audit committees, and institutional ownership also have positive and significant effects on firm value. These findings indicate that broader risk transparency and stronger governance mechanisms can reduce information asymmetry, strengthen investor confidence, and enhance the market value of Indonesian banking companies.

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Journal Info

Abbrev

IJEBAS

Publisher

Subject

Economics, Econometrics & Finance

Description

This journal aims to examine new breakthroughs and current issues regarding advances in science and technology in the fields of Economics, Business, Sharia Administration, Accounting and Agriculture ...