THE EFFECT OF GREEN BANKING, CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY ON COMPANY VALUE IN THE BANKING SECTOR LISTED ON THE IDX

Soqia Salsabila; Darmawati Muchtar; Rico Nur Ilham; Muttaqien

doi:10.54443/jaruda.v4i2.272

Authors

Soqia Salsabila Universitas Malikussaleh
Darmawati Muchtar Universitas Malikussaleh
Rico Nur Ilham Universitas Malikussaleh
Muttaqien Universitas Malikussaleh

DOI:

https://doi.org/10.54443/jaruda.v4i2.272

Keywords:

Green Banking, Corporate Social Responsibility, Profitability

Abstract

This study aims to analyze the effect of Green Banking, Corporate Social Responsibility (CSR), and profitability on firm value in the banking sector listed on the Indonesia Stock Exchange (IDX) during the 2020–2023 period. Firm value is proxied by Price to Book Value (PBV). The independent variables used are Green Banking (X1), CSR (X2), and profitability measured by Return on Assets (ROA) (X3). This research employs a quantitative method using secondary data obtained from the annual reports and sustainability reports of banks listed on the IDX. The sample was selected using a purposive sampling method, resulting in 37 companies with a total of 148 observations. Data analysis was conducted with the aid of EViews software through panel data regression. The best model was determined using the Chow test and Hausman test. The results show that Green Banking has no effect on firm value. CSR has a negative and significant effect on firm value. Profitability (ROA) has a negative and significant effect on firm value.

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