Determinant of Firm Value of Bank in Asean: Implications for Sustainable Development Goals

Abstract

Objective: This study aims to analyze how risk management and corporate governance influence firm value in banks across ASEAN countries. It examines the mediating role of financial performance and provides practical recommendations for enhancing financial outcomes and firm value, aligning with the broader objectives of the SDGs to ensure inclusive and sustainable economic development. Theoretical Framework: This study aims to examine the effect of risk management and corporate governance on firm value while investigating the mediating role of financial performance. Method: This study uses a quantitative approach to analyze secondary data from ten ASEAN countries between 2014 and 2023, focusing on various banks. A total of 1,170 observations are selected through purposive sampling from national bank websites. Data analysis will be conducted using SmartPLS 3.0 to explore factors influencing firm value in the banking sector. Results and Discussion: The results show that corporate governance positively influences firm value, while risk management has an insignificant effect. Additionally, both risk management and corporate governance significantly affect financial performance, with financial performance serving as a mediator between these two factors and firm value. Research Implications: This study encourages bank managers in ASEAN to strengthen corporate governance, which positively impacts firm value. They should also reassess risk management strategies and focus on improving financial performance as a mediator. An integrated approach and continuous monitoring are essential for enhancing performance and firm value. Originality/Value: This research highlights the mediating role of financial performance, offering a comprehensive view of these relationships. Additionally, the use of a diverse dataset across multiple countries provides regionally relevant insights for bank managers and policymakers in the context of SDGs.