The Influence of Credit Risk on Company Value in Banking Companies in Indonesia

Tengku Rayya Aqila; Mirna  Indriani; Yossi Diantimala

doi:10.59890/ijbmp.v3i4.53

Authors

Tengku Rayya Aqila Universitas Syiah Kuala
Mirna Indriani Universitas Syiah Kuala
Yossi Diantimala Universitas Syiah Kuala

DOI:

https://doi.org/10.59890/ijbmp.v3i4.53

Keywords:

Credit Risk, Company Value, Indonesian Banking

Abstract

This study aims to examine the impact of credit risk on firm value in Indonesian banks, with trust and liquidity as moderating variables. A quantitative approach was employed, utilizing simple linear regression analysis on secondary data from the financial reports of 47 banking companies listed on the Indonesia Stock Exchange during the period of 2022-2024. The research findings indicate that there is a statistically significant, albeit weak, relationship between Credit Risk and Company Value. The regression analysis demonstrates that while an increase in Credit Risk is associated with a rise in Company Value, the low R2 value suggests that only a small portion of the variance in Company Value can be attributed to Credit Risk. These results are consistent with existing literature, which emphasizes that credit risk, although important, does not have a substantial impact on market capitalization compared to other factors such as operational performance and market conditions. Therefore, stakeholders should adopt a broader perspective when assessing corporate value, taking into account multiple financial metrics alongside credit risk

References

Alamsyah, A. R., Subroto, B., Aisjah, S., & Djazuli, A. (2020). The Effect of Ownership Structure, Capital Structure, and Investment Opportunity Set on Firm Values Mediated by a Dividend Policy. International Journal of Innovation, Creativity and Change, 12(6), 459–483.

Antara. (2023). Kementerian Kominfo Klarifikasi Kasus Serangan Siber BSI. Antara.

Brigham, E. F., & Houston, J. F. (2014). Fundamentals of Financial Management (14th ed.). Cengage Learning.

Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (3rd ed.). John Wiley & Sons.

E Janrosl, V. S., & Khadijah. (2021). Dampak Peristiwa Pandemi Covid-19 Terhadap Indeks Harga Saham Gabungan Pada PT Bank Mayapada Internasional Tbk. Jurnal Akuntansi Keuangan Dan Bisnis, 14(1), 11–16.

Ertuÿrul, A., & Bumin, M. (2024). Relationship Between Enterprise Value And Financial Risks: On Bist Sustainability Index Application The Relationship between Firm Value and Financial Risks: An Application on BIST Sustainability Index. 9(1), 213–229.

Febrianto, G. N., Ratnawati, T., & Riyadi, S. (2022). the Effect of Macroeconomic Factor, Earning Management and Financial Risk on Firms’ Value: an Empirical Analysis of Listed Commercial Banks. International Journal of Economics and Finance Studies, 14(2), 156–170.

Finansial. (2025). OPINI : Menakar Likuiditas Perbankan 2025. Finansial.

Geriadi, M. A. D., & Astawa, I. G. W. (2022). Pengaruh Non-Performing Loan (Npl) Dan Loan To Deposit Ratio (Ldr) Terhadap Pertumbuhan Laba Pada Pt. Bank Rakyat Indonesia (Persero) Tbk Unit Sukawati Cabang Gianyar. Jurnal Manajemen Dan Bisnis Equilibrium, 8(2), 292–309.

IDX. (2024a). 2023, Perbankan Kantongi Laba Rp 243 Triliun. 2024.

IDX. (2024b). Ringkasan Saham.

Ismail, S. (2010). Manajemen Risiko Perbankan. Salemba Empat.

Kontan. (2024). IHSG Turun Hampir 1%, Saham-Saham Perbankan Berbalik Melemah.

Lautania, M. F., Dinaroe, & Linda. (2021). Analisis Dampak Pandemi COVID-19 Terhadap Harga Saham Sektor Perbankan Yang Terdaftar di Bursa Efek Indonesia. Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi (JIMEKA), 6(4), 1.

Liong, H., Mahfudnurnajamuddin, Su’un, M., & Mapparenta. (2023). The Influence of Growth Potential, Capital Structure and Profitability on Dividend Policy and Firm Value in Manufacturing Companies Listed on the Indonesia Stock Exchange. Revista de Gestao Social e Ambiental, 17(8), 1–12.

Mardiasmo, D. (2020). Akuntansi Sektor Publik. Andi.

Matos Bautista, J. J., Martinez-Luna, A. B., Ninanya Cornejo, G. H., Santillan Zapata, N. A., & Deza Quispe, J. A. (2022). An Analysis of Profitability, Capital Structure, and Credit Risk in the Peruvian Microfinance Sector. International Journal of Applied Economics, Finance and Accounting, 13(1), 20–28.

Nguyen, T. T., & Tran, T. H. (2021). The Impact of Non-Performing Loans on Bank Performance: Evidence from Vietnam. Journal of Risk and Financial Management, 14 (5).

Nurmasari, I. (2020). Dampak Covid-19 Terhadap Perubahan Harga Saham dan Volume Transaksi (Studi Kasus Pada PT. Ramayana Lestari Sentosa, Tbk.). Jurnal SEKURITAS (Saham, Ekonomi, Keuangan Dan Investasi), 3(3), 230.

Priharta, A., Tantri, M., Gani, N. A., & Darto, D. (2023). Profitabilitas Dan Likuiditas: Pengaruhnya Terhadap Nilai Perusahaan. JABE (Journal of Applied Business and Economic), 9(3), 257.

Reuters. (2024). Indonesia regulator says studying proposal to reinstate COVID-era bad debt policy. Reuters.

Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory and Analysis: Text and Cases. Wiley.

Sugianto, S., Oemar, F., Hakim, L., & Endri, E. (2020). Determinants of firm value in the banking sector: Random effects model. International Journal of Innovation, Creativity and Change, 12(8), 208–218.

Yurttadur, M., Celiktas, E., & Celiktas, E. (2019). The Place of Non-performing Loans in the Turkish Banking Sector. Procedia Computer Science, 158, 766–771.