Investigating the Roles of Stakeholders, Disclosure, and Transparency in Financial Performance and Corporate Value: Evidence from Indonesian State-Owned Banks
Article Sidebar
Main Article Content
Abstract
This study develops a comprehensive framework to examine the interplay between stakeholder roles, disclosure and transparency practices, financial performance, and corporate value in Indonesian state-owned banks. It explores how stakeholder engagement and transparency practices influence financial outcomes, and how these factors contribute to shaping corporate value. Financial performance is treated as a key intermediary through which the effects of internal governance practices are realized, while corporate value is conceptualized as a multidimensional construct shaped by both financial and non-financial factors. Stakeholder roles and disclosure practices are measured using formulas adapted from the ASEAN Corporate Governance Scorecard (ACGS) guidelines. Financial performance is assessed through Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS), while corporate value is evaluated using Price-to-Book Value and Price-to-Earnings ratios. A purposive sampling approach was used to select state-owned banks (BUMN) listed in the ACGS index. Data from 2013 to 2022 were sourced from official bank reports, sustainability disclosures, and publications from the Indonesian Financial Services Authority (OJK). Analysis was conducted using SEM Partial Least Squares (SEM-PLS) to accommodate multicollinearity and complex variable relationships. The findings reveal that while stakeholder roles and disclosure practices may not directly improve short-term financial performance, transparency significantly enhances company value. Financial performance remains a key driver of market valuation. Policymakers and bank management should emphasize long-term stakeholder engagement strategies and strengthen disclosure practices to improve market trust and institutional value, aligning governance reforms with both economic and social objectives.
Article Details
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
References
Agustina, L., & Suryandari, D. (2017). Financial Performance and Firm Value: Does Internet Financial Reporting Moderate the Relationship in Indonesian Manufacturing Companies. International E-Journal of Advances in Social Sciences, 3(7), 263–267.
Ali, A., & Bouri, A. (2018). The Accounting Value Relevance of Earnings and Book Value: Tunisian Banks and Financial Institutions. International Journal of Law and Management, 60(2), 342–354. https://doi.org/10.1108/IJLMA-11-2016-0131
Asian Development Bank, A. (2014). ASEAN Corporate Governance Scorecard: Country Reports and Assesmens 2013-2014. Asian Development Bank.
Bae, S., Masud, M., & Kim, J. (2018). A Cross-Country Investigation of Corporate Governance and Corporate Sustainability Disclosure: A Signaling Theory Perspective. Sustainability, 10(8), 2611. https://doi.org/10.3390/su10082611
Bridoux, F., & Stoelhorst, J. W. (2014). Microfoundations for Stakeholder Theory: Managing Stakeholders with Heterogeneous Motives. Strategic Management Journal, 35(1), 107–125. https://doi.org/10.1002/smj.2089
Camilleri, M. A. (2015). Environmental, Social and Governance Disclosures in Europe. Sustainability Accounting, Management and Policy Journal, 6(2), 224–242. https://doi.org/10.1108/SAMPJ-10-2014-0065
Casteel, A., & Bridier, N. L. (2021). Describing Populations and Samples in Doctoral Student Research. International Journal of Doctoral Studies, 16, 339–362. https://doi.org/10.28945/4766
Chen, X., Safdar Sial, M., Tran, D. K., Alhaddad, W., Hwang, J., & Thu, P. A. (2020). Are Socially Responsible Companies Really Ethical? The Moderating Role of State-Owned Enterprises: Evidence from China. Sustainability, 12(7), 2858. https://doi.org/10.3390/su12072858
Faisal, A., & Astuti, A. R. (2022). Akuntansi Manajemen (Teori dan Aplikasi). In Aditya Media Publishing. IAIN Parepare Nusantara Press. http://pics.unipma.ac.id/content/pengumuman/03102_04_03_2019_01_17_07Buku Akuntansi Manajemen.pdf
Hair, J. F. J., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Cham, S. R. (2023). Review of Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook. In Switzerland: Springer. Springer. https://doi.org/10.1080/10705511.2022.2108813
Hendrawan, M. H., Defung, F., & Wardhani, W. (2023). Un/desired impact of capital buffers: Evidence from Indonesian bank profitability and risk-taking. Cogent Economics and Finance, 11(2). https://doi.org/10.1080/23322039.2023.2245217
Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. http://ssrn.com/abstract=94043Electroniccopyavailableat:http://ssrn.com/abstract=94043http://hupress.harvard.edu/catalog/JENTHF.html
Kantabutra, S., & Ketprapakorn, N. (2020). Toward a Theory of Corporate Sustainability: A Theoretical Integration and Exploration. Journal of Cleaner Production, 270, 122292. https://doi.org/10.1016/j.jclepro.2020.122292
Li, Y., Gong, M., Zhang, X., & Koh, L. (2018). The Impact of Environmental, Social, and Governance Disclosure on Firm Value: The Role of CEO Power. American Journal of Agricultural Economics, 50(1), 60–75. https://doi.org/10.2307/1243342
Liu, Y., & Yin, J. (2020). Stakeholder Relationships and Organizational Resilience. Management and Organization Review, 16(5), 986–990. https://doi.org/10.1017/mor.2020.58
López-Arceiz, F. J., Bellostas-Pérezgrueso, A. J., Moneva-Abadía, J. M., & Rivera-Torres, M. P. (2018). The Role of Corporate Governance and Transparency in the Generation of Financial Performance in Socially Responsible Companies. Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad, 47(1), 44–80. https://doi.org/10.1080/02102412.2017.1379798
López-Santamaría, M., Amaya, N., Grueso Hinestroza, M. P., & Cuero, Y. A. (2021). Sustainability Disclosure Practices as Seen Through the Lens of the Signaling Theory: A Study of Companies Listed on the Colombian Stock Exchange. Journal of Cleaner Production, 317, 128416. https://doi.org/10.1016/j.jclepro.2021.128416
Martínez‐Ferrero, J., & Frías‐Aceituno, J. V. (2015). Relationship Between Sustainable Development and Financial Performance: International Empirical Research. Business Strategy and the Environment, 24(1), 20–39. https://doi.org/10.1002/bse.1803
Peraturan Otoritas Jasa Keuangan, Pub. L. No. POJK.03/2018, 1 (2018). https://www.ojk.go.id/id/regulasi/otoritas-jasa-keuangan/rancangan-regulasi/Documents/01. LAMPIRAN - RPOJK tentang Laporan Periodik Bank Umum.pdf
Oncioiu, I., Petrescu, A.-G., Bîlcan, F.-R., Petrescu, M., Popescu, D.-M., & Anghel, E. (2020). Corporate Sustainability Reporting and Financial Performance. Sustainability, 12(10), 4297. https://doi.org/10.3390/su12104297
Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2018). The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector. Journal of Business Ethics, 151(2), 451–471. https://doi.org/10.1007/s10551-016-3229-0
Reverte, C. (2016). Corporate Social Responsibility Disclosure and Market Valuation: Evidence from Spanish Listed Firms. Review of Managerial Science, 10(2), 411–435. https://doi.org/10.1007/s11846-014-0151-7
Ridwan, M., & Sandi, H. E. (2019). Pengaruh Interaksi Antara Total Quality Management Dengan Sistem Penghargaan, Komitmen Organisasi Dan Sistem Pengukuran Kinerja Terhadap Kinerja Manajerial (Studi Empiris Pada Perusahaan Otomotif Dan Komponen Di Kota Jambi). In Jurnal Manajemen Terapan dan Keuangan (Vol. 8, Issue 1, pp. 13–28). https://doi.org/10.22437/jmk.v8i1.6931
Schaltegger, S., Hörisch, J., & Freeman, R. E. (2019). Business Cases for Sustainability: A Stakeholder Theory Perspective. Organization and Environment, 32(3), 191–212. https://doi.org/10.1177/1086026617722882
Sucuahi, W., & Cambarihan, J. M. (2016). Influence of Profitability to the Firm Value of Diversified Companies in the Philippines. Accounting and Finance Research, 5(2), 149–153. https://doi.org/10.5430/afr.v5n2p149
Suhadak, Kurniaty, Handayani, S. R., & Rahayu, S. M. (2019). Stock return and financial performance as moderation variable in influence of good corporate governance towards corporate value. In Asian Journal of Accounting Research (Vol. 4, Issue 1, pp. 18–34). https://doi.org/10.1108/AJAR-07-2018-0021
Sun, Y., Wu, M., Zeng, X., & Peng, Z. (2021). The Impact of COVID-19 on the Chinese Stock Market: Sentimental or Substantial? Finance Research Letters, 38, 101838. https://doi.org/10.1016/j.frl.2020.101838
Taghian, M., D’Souza, C., & Polonsky, M. J. (2015). A Stakeholder Approach to Corporate Social Responsibility, Reputation and Business Performance. Social Responsibility Journal, 11(2), 340–363. https://doi.org/10.1108/SRJ-06-2012-0068
Truong, L. D., Le, T. X., & Friday, H. S. (2022). The Influence of Information Transparency and Disclosure on the Value of Listed Companies: Evidence from Vietnam. Journal of Risk and Financial Management, 15(8), 345. https://doi.org/10.3390/jrfm15080345
Xie, J., Nozawa, W., Yagi, M., Fujii, H., & Managi, S. (2018). Do Environmental, Social, and Governance Activities Improve Corporate Financial Performance? In Business Strategy and the Environment (Vol. 28, Issue 2, pp. 286–300). https://doi.org/10.1002/bse.2224
Yoganathan, D., Jebarajakirthy, C., & Thaichon, P. (2015). The Influence of Relationship Marketing Orientation on Brand Equity in Banks. Journal of Retailing and Consumer Services, 26, 14–22. https://doi.org/10.1016/j.jretconser.2015.05.006