Analysis of the Effect of Non-Performing Loans, Loan to Deposit Ratio, and Capital Adequacy Ratio on Book Value per Share through Return on Assets Mediation

Authors

  • Yandi Asmana Universitas Pakuan, Jawa Barat, Indonesia
  • Hari Gusrida Universitas Pakuan, Jawa Barat, Indonesia
  • Yohanes Indrayono Universitas Pakuan, Jawa Barat, Indonesia

DOI:

https://doi.org/10.38035/gijea.v4i3.765

Keywords:

Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), Book Value per Share (BVS), Return on Assets (ROA)

Abstract

This study examines the effect of Non-Performing Loans (NPL), Loan-to-Deposit Ratio (LDR), and Capital Adequacy Ratio (CAR) on firm value proxied by Book Value per Share (BVS), with Return on Assets (ROA) as a mediating variable in banking companies listed on the Indonesia Stock Exchange during 2015–2024. This research employs a quantitative approach using panel data regression. The sample consists of 11 banks selected through purposive sampling, resulting in 110 observations. Data analysis was conducted using EViews 12 and the Sobel test to examine the mediation effect. The results show that NPL has a negative and significant effect on ROA and BVS. LDR has no significant effect on ROA but positively affects BVS. CAR has a positive effect on both ROA and BVS. Furthermore, ROA significantly increases BVS. Mediation analysis indicates that ROA does not mediate the effect of NPL and LDR on BVS but mediates the relationship between CAR and BVS. These findings highlight the importance of credit risk management, effective intermediation, and strong capital structures in enhancing banking firm value.

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Published

2026-07-16

How to Cite

Asmana, Y., Gusrida, H., & Indrayono, Y. (2026). Analysis of the Effect of Non-Performing Loans, Loan to Deposit Ratio, and Capital Adequacy Ratio on Book Value per Share through Return on Assets Mediation. Greenation International Journal of Economics and Accounting, 4(3), 446–460. https://doi.org/10.38035/gijea.v4i3.765

Issue

Vol. 4 No. 3 (2026): Greenation International Journal of Economics and Accounting (July - August 2026)

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Articles

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Copyright (c) 2026 Yandi Asmana, Hari Gusrida, Yohanes Indrayono

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