MOBILE BANKING AS A DETERMINANT OF BANKING VALUE SUSTAINABILITY: RISK AND FINANCIAL PERFORMANCE PERSPECTIVES
DOI:
https://doi.org/10.18623/rvd.v23.6700Keywords:
Mobile Banking, Tobin's Q, Return on Assets, Capital Adequacy Ratio, Non-Performing LoansAbstract
This study aims to analyze the effect of mobile banking on the sustainability of the value of banking companies in Indonesia by considering the mediating role of financial performance and credit risk. The research uses the technical method of path analysis. The research sample consisted of five commercial banks in the KBMI 3 and KBMI 4 categories in Indonesia during the 2020–2024 period which were selected through purposive sampling techniques, resulting in 25 observations. Mobile banking variables are measured using the digital service feature index, while company value is measured using Tobin's Q, financial performance using Return on Assets (ROA) and Capital Adequacy Ratio (CAR), and credit risk using Non-Performing Loans (NPL). The results of the study show that mobile banking has a positive and significant effect on Tobin's Q, ROA, and CAR, as well as a significant negative effect on NPL. In addition, ROA and NPL have been shown to mediate the effect of mobile banking on company value, while CAR does not show a significant mediating role. These findings indicate that digital transformation through mobile banking is able to increase company value through increasing profitability and strengthening credit risk management. This research makes a theoretical contribution by expanding the literature on banking digitalization and corporate value sustainability, as well as providing practical implications for bank management and regulators in strengthening digital transformation strategies and banking risk management.
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