Profitability key in boosting firm value for Indonesian banking companies.
Banks aim to increase their value by managing risks, following good governance practices, and being socially responsible. A study on Indonesian banking companies found that business risk affects profitability but not firm value. Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) positively impact profitability and firm value. Profitability plays a crucial role in mediating the effects of business risk, GCG, and CSR on firm value. The study used financial data from 104 banks listed on the Indonesia Stock Exchange from 2015 to 2018 and analyzed the relationships using path analysis.