Green Credit, Bank Health, and Efficiency on Firm Value of LQ45 Banks

Tri Kartini Putri

doi:10.55927/ajabm.v5i1.12

Authors

Tri Kartini Putri Universitas Mercu Buana

DOI:

https://doi.org/10.55927/ajabm.v5i1.12

Keywords:

Capital Adequacy, Credit Risk, Efficiency, Firm Value, Green Financing

Abstract

This study analyzes the effect of green financing, capital adequacy, credit risk, and efficiency on firm value, with profitability as a mediating variable. The sample consists of six conventional banks listed in the LQ45 index for the 2019–2023 period, selected using purposive sampling. Panel data from financial statements were used as secondary data. The results show that green financing and capital adequacy have no significant effect on profitability or firm value. In contrast, credit risk and efficiency negatively affect both profitability and firm value, while profitability has a positive effect on firm value. The mediation test indicates that profitability only mediates the effect of efficiency on firm value. These findings highlight that internal efficiency plays a stronger role in creating firm value compared to green financing or capital adequacy during the observation period.

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