Analysis of Bank-Specific Variables Viewed by Investors: The Impact of Intellectual Capital, Good Corporate Governance, Liquidity, and Solvency on the Value of Banking Firms in Indonesia
DOI:
https://doi.org/10.38035/gijea.v3i4.1325Keywords:
Intellectual Capital (IC), Good Corporate Governance (GCG), Loan To Deposit Ratio (LDR), Net Interest Margin (NIM),, Price To Book Value (PBV)Abstract
Bank-specific attributes may enhance profitability while conveying risks that reduce market valuation. Prior studies offer inconclusive findings and rarely examine net interest margin (NIM) as the mechanism linking intellectual capital (IC), good corporate governance (GCG), the loan-to-deposit ratio (LDR), and the capital adequacy ratio (CAR) to bank value. This study investigates their direct and NIM-mediated effects on price-to-book value (PBV). The sample comprises 26 Indonesian listed banks observed during 2018-2025, yielding 208 balanced panel observations. Both equations were estimated using random-effects Panel EGLS with White period robust covariance; indirect effects were evaluated using the robust Goodman test. IC and LDR positively affect NIM, whereas GCG and CAR do not. GCG and NIM positively affect PBV; IC and CAR are insignificant. LDR has a significant negative direct relationship with PBV, contrary to the hypothesized direction. NIM mediates only the LDR-PBV relationship: its positive indirect effect opposes the negative direct effect. The study's novelty is identifying this competitive mediation, showing that lending intensity improves valuation through interest-margin performance while investors simultaneously discount liquidity and credit risks.
References
Barney, J. B., Ketchen, D. J., & Wright, M. (2011). The Future of Resource-Based Theory. Journal of Management, 37(5), 1299–1315. https://doi.org/10.1177/0149206310391805
Basuki, A. T. (2003). Analisis Jalur Data Panel. 1–36.
Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling Theory: A Review and Assessment. Journal of Management, 37(1), 39–67. https://doi.org/10.1177/0149206310388419
Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of any Asset, University Edition (3rd edition). John Wiley & Sons.
Davcik, N. S., & Sharma, P. (2016). Marketing resources, performance, and competitive advantage: A review and future research directions. Journal of Business Research, 69(12), 5547–5552. https://doi.org/10.1016/j.jbusres.2016.04.169
Diekmann, A. (2022). Emergence of and compliance with new social norms: The example of the COVID crisis in Germany. Rationality and Society, 34(2), 129–154. https://doi.org/10.1177/10434631221092749
Ghozali, I., & Ratmono, D. (2017). Analisis Multivariat dan Ekonometrika (A. Tejokusumo, Ed.; kedua). Badan Penerbit Universitas Diponegoro.
Goodman, L. A. (1960). On the Exact Variance of Products. Journal of the American Statistical Association, 55(292), 708–713. https://doi.org/10.1080/01621459.1960.10483369
Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics Economics series Higher education McGraw-Hill series in economics The McGraw-Hill Series (5th ed.). McGraw-Hill Irwin.
Indrayono, Y. (2022). Firm nominal value and the role of some accounting information: an investigation of Indonesian listed firms. Int. J. Business and Emerging Markets, 14(2), 142–155.
Jackson, J., Bradford, B., Hough, M., Myhill, A., Quinton, P., & Tyler, T. R. (2012). Why Do People Comply With The Law? Legitimacy and the Influence of Legal Institutions. The British Journal of Criminology, 52(6), 1051–1071. http://www.jstor.org/stable/44174080
Jardon, C. M., & Martinez-Cobas, X. (2021). Measuring intellectual capital with financial data. PLOS ONE, 16(5), e0249989. https://doi.org/10.1371/journal.pone.0249989
Jensen, M. C., & Meckling, W. H. (1998). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.94043
Johnson, C., & Watson, L. (2015). Legitimacy, Sociology of. In International Encyclopedia of the Social & Behavioral Sciences (pp. 824–829). Elsevier. https://doi.org/10.1016/B978-0-08-097086-8.32085-2
Linggadjaya, R. I. T., Atahau, A. D. R., Ugut, G. S. S., & Suk, K. S. (2025). The Moderating Role of Capital Adequacy on Bank Specific Characteristics to Sustainable Growth: Evidence From Commercial Banks in Indonesia. SAGE Open, 15(3). https://doi.org/10.1177/21582440251353042
Mahrani, M., & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research, 3(1), 41–60. https://doi.org/10.1108/AJAR-06-2018-0008
Marzo, G. (2022). A theoretical analysis of the value added intellectual coefficient (VAIC). Journal of Management and Governance, 26(2), 551–577. https://doi.org/10.1007/s10997-021-09565-x
Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of Theory and Evidence on Problems and Perspectives. Indian Journal of Corporate Governance, 10(1), 74–95. https://doi.org/10.1177/0974686217701467
R, A. S., Hadijati, M., & Switrayni, N. W. (2019). Analisis Masalah Heteroskedastisitas Menggunakan Generalized Least Square dalam Analisis Regresi. Eigen Mathematics Journal, 61–72. https://doi.org/10.29303/emj.v1i2.43
Raavinuthala, S. K. S., Bijoy, K., & Sahay, A. (2022). Issues in liquidity management in banking system: An empirical evidence from Indian commercial banks. Cogent Economics & Finance, 10(1). https://doi.org/10.1080/23322039.2022.2122190
Sasongko, H., Alipudin, A., & Uria, M. Y. (2019). Effect Corporate Social Responsibility, Firm Size, and Intellectual Capital on Firm Value in Indonesia Stock Exchange. International Journal of Latest Engineering and Management Research, 4(6), 78–89. www.ijlemr.com
Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010
Suhadak, S., Kurniaty, K., Handayani, S. R., & Rahayu, S. M. (2019). Stock return and financial performance as moderation variable in influence of good corporate governance towards corporate value. Asian Journal of Accounting Research, 4(1), 18–34. https://doi.org/10.1108/AJAR-07-2018-0021
Velte, P. (2023). Determinants and financial consequences of environmental performance and reporting: A literature review of European archival research. Journal of Environmental Management, 340, 117916. https://doi.org/10.1016/j.jenvman.2023.117916
Yani, D. F. (2016). Hutang Jangka Panjang Dan Profitabilitas Di Bank Syariah : Studi Pada Pt Bank Muamalat Indonesia. 10(1), 52–63.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Hammad Hammad, Hari Gursida, Yohanes Indrayono
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright :
Authors who publish their manuscripts in this journal agree to the following conditions:
- Copyright in each article belongs to the author.
- The author acknowledges that the GIJEA has the right to be the first to publish under a Creative Commons Attribution 4.0 International license (Attribution 4.0 International CC BY 4.0).
- Authors can submit articles separately, arrange the non-exclusive distribution of manuscripts that have been published in this journal to other versions (for example, sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time at GIJEA.
