The Role of Green Bank Disclosure On The Performance of The Conventional Banking Sector in Indonesia

Jurnal Ekonomi dan Bisnis, Volume 2x No.
x April 201x, xx - xx
Jurnal Ekonomi dan Bisnis

Journal homepage: www.ejournal.uksw.edu/jeb
ISSN 1979-6471 E-ISSN 2528-0147
The Role of Green Bank Disclosure on the Performance of the

Conventional Banking Sector in Indonesia
Asilah Eka Putria, Idah Zuhrob

a
Faculty of Ekonomi and business, Universitas Muhammadiyah Malang, asilah.eka123@gmail.com
b
Faculty of Ekonomi and business, Universitas Muhammadiyah Malang, idah@umm.ac.id
INFO ARTIKEL ABSTRACT

Riwayat Artikel: Environmental sustainability needs to be given special attention
Received because of global warming which has a negative impact on the
Revised environment. With this, banking companies issue the concept of
Accepted green banking disclosure which focuses on financing activities that
Keywords: maintain the environment. Therefore, to see how much influence
Firm value; green banking green banking disclosure has on firm value, as well as the influence
disclosure; profitability; bank of performance in the banking sector on firm value. This study uses
size; and non-performing loan. firm value theory, signal theory, and legitimacy theory to support
research. This study uses a quantitative method by collecting
Kata Kunci: secondary data that is already available in each annual report of 8
Nilai perusahaan, green banking
disclosure, profitabilitas, ukuran selected bank companies, using panel data models to support
bank, dan non- performing loan research results. The results of this study indicate that partial green
banking disclosure and bank size have an insignificant effect on firm
value. The results of profitability show a significant effect on firm
value and Non-performing loans have a significant negative effect
on firm value. Simultaneously research results show that green
banking disclosure variables, profitability, bank size, and non-
performing loans together affect firm value.
ABSTRAK
Keberlanjutan lingkungan perlu diberi perhatian khusus karena
terjadinya pemanasan global yang memberikan dampak buruk
pada lingkungan. Dengan ini perusahaan perbankan
mengeluarkan konsep green banking disclosure yang berfokus
untuk pembiayaan kegiatan yang memelihara lingkungan. Oleh
karena itu untuk melihat seberapa besar pengaruh green banking
disclosure terhadap nilai perusahaan, serta pengaruh kinerja
pada sektor perbankan terhadap nilai perusahaan. Penelitian ini
mengunakan teori firm value, teori signal, dan teori legitimasi
untuk menunjang penelitian. Jenis penelitian menggunakan
metode kuantitatif dengan mengumpulkan data sekunder yang
sudah tersedia disetiap laporan tahunan 8 perusahaan bank yang
24 The Role of Green Banking Disclosure (Putri, Zuhro)
terpilih, menggunakan model data panel untuk menunjuang hasil

penelitian. Hasil dari penelitian ini menunjukkan bahwa secara
parsial green banking disclosure dan Ukuran bank berpengaruh
tidak signifikan terhadap nilai perusahaan. Hasil dari
profitabilitas menunjukkan berpengaruh signifikan terhadap nilai
perusahaan dan Non-performing loan berpengaruh negatif
signifikan terhadap nilai perusahaan. Hasil penelitian secara
simultan menunjukkan bahwa variabel Green banking disclosure,
profitabilitas, Ukuran bank, dan Non-peroforming loan secara
Bersama-sama mempengaruhi nilai perusahaan.
PENDAHULUAN
The global warming that is occurring has a bad impact on the environment if it
does not make changes immediately, there will be erratic climate change and worry if
it is caused by carbon dioxide emissions. Indonesia, however, has managed to
maintain its reputation for environmental sustainability. According to the 2020
Environmental Performance Index, its performance improved by 3.72 points, rising
from 66.55 in 2019 to 70.27 in 2020. Although the Indonesian economy experienced
a recession in 2020, mainly due to the impact of the Covid-19 pandemic, several
sectors, including tourism and recreation, were identified as drivers of economic
recovery. However, this has the potential to cause environmental problems if
precautionary measures are not well organized. In addition, the emphasis on adaptation
policies along with mitigation strategies indicates that the economy may not be ready
to capitalize on opportunities arising from these changes. Investment opportunities,
especially in clean energy and clean technology development, will be prominent in the
future. These are opportunities that banks can capitalize on if appropriate policies and
strategies are implemented in a timely manner (Winarto et al., 2021).
The banking sector does not contribute directly to environmental damage, but
in PJOK No.51 / PJOK.03 / 2017 it mentions sustainable finance where companies
must take the initiative and always care about the surrounding environment, therefore
the banking sector has created a green banking culture. The banking sector which has
an important role in economic growth and also in this era of globalization causes
companies from various industries to strive to grow to be the best by maintaining
existence. one of the banking efforts to support and maintain the environment is the
practice of green banking.
Green banking uses the concept of green economy where banks make efforts
to strengthen risk management, especially those related to the environment. Activities
carried out by banks are in terms of lending to customers who pay attention to
environmental sustainability, such as the organic farming sector. This green banking
activity also goes hand in hand with financial performance where this is when green
banking is applied, financial performance will continue. Green Banking Disclosure,
Jurnal Ekonomi dan Bisnis, Volume 2x No. x April 201x, xx - xx 25
which allows banks to operate morally and effectively. Since there are no regulations
or laws pertaining to green banking disclosure reporting, many banking institutions
disclose in different ways (Simanungkalit dan Mayangsari, 2020).
Implementation of Green Banking Disclosure as part of the company's
objectives mandated by stakeholders as an effort to care for the company in the
community environment (Wachyu et al., 2021). When the company implements green
banking, which is an activity concerned with environmental sustainability, this will
bring investors who will invest by supporting sustainability activities can then increase
the value of the organization (Winarto et al., 2021).
Company value can be interpreted as a selling point that can share the greatest
happiness with share owners shares increase (Dewi and Suryono, 2019). Company
value is a technical scale much the public trusts a bank based on its actions over several
years, starting from the establishment of the bank until the time it will arrive (Fitria
and Irkhami, 2021). Investors will pay close attention to the value of the company
because it can see its future performance and be impacted by it various circumstances
such as now there is a very high interest in environmental sustainability and flocking
to protect the environment. The success of financial performance shows good
management. It is the duty of management to oversee the bank's financial resources to
enhance business value and achieve strong financial results. However, poor
management of the bank can lead to poor financial results, which in turn can lower
share value depreciates the value of an all-encompassing organization (Sumail, 2021).
Some researchers try to see what factors can affect Organizational values are
classified as held Wachyu et al., (2021) found the results of green banking disclosure
affect its value is due to the company gives trust to the community for concern for the
environment and this way the community participates in protecting the surrounding
environment, therefore this can also improve company performance and company
value also increases. However, other researchers Simanungkalit and Mayangsari,
(2020) does not find a the relationship between assumed corporate value in green
banking, meaning that the increasing company value is influenced by other factors.
Other researchers also analyzed the effect of profitability on firm value as
conducted by Jaya, (2020) found the results of profitability affecting firm value where
an increase in profitability will have an impact on an increase in company value.
However, other researchers Muharramah and Hakim, (2021) did not find a
relationship between profitability and firm value.
Next Tandanu and Suryad, (2020) examines The impact of bank size on
organizational value obtains a size that impacts company value However, it contradicts
the results found Haryanto et al., (2018) if there is no relationship between bank size
on Company Value. Finally, research conducted by Sabrina and Saifi, (2017) about
non-performing loans found the results Non-performing loans affect firm value
However, other researchers Nur Halimah et al., (2017) did not find a the relationship
between non-performing loans and non-performing loans to company value.
Therefore, with the gaps or inconsistencies in the above research, it is necessary
to conduct research again on green banking disclosure, profitability, bank size and non-
performing loans on company value (verified bank studies on the IDX). With this, it
can be concluded that the problem in this writing is whether green banking disclosure,
profitability, bank size and non-performing loans have a partial and mutual impact on
company value.
LITERATURE RIVIEW
Signal Theory
This theory, first developed by Spence in 1973, reveals that parties who have
information have the ability to convey a sign or signal that reflects the condition of the
company, which will provide benefits to investors. According to Yasar, Martin, and
Kiessling in the year 2020, cueing theory (Signalling theory) It can explain how a
company's future growth can influence investors through information that describes
management activities and investors' preferences for the company. This information is
considered crucial in determining investment decisions in the company (Winarto et al.,
2021).
Legitimacy Theory
This theory was first developed by Dowling and Pfeffer in year 1975, revealed
that legitimacy theory is one of the concepts often mentioned in scope assessment and
social accounting that have been used to improve liability assumptions and actual
scope of accounting (Shafirah et al., 2022). Companies are increasingly realizing that
the continuity of their operations relating to its relationship to citizens and its scope.
in line with legitimacy theory which explains that an organization has a social
agreement to carry out its operations through an element of fairness. In addition, this
theory also emphasizes how companies respond to various interest groups to legitimize
their actions. Furthermore, legitimacy theory indicates that organizations should
continuously strive to ensure that activities are in line with policy (Badjuri et al., 2021).
Firm Value
The value of the company leads to promotions that are assumed to be
reasonable for capital owners so they are ready to finance it when marketed. The size
of the company's price shows the level of success of share owners and can make capital
owners interested in investing. Therefore, information on firm value is crucial for
investors and is the main factor taken into account in the investment decision-making
process (Dessriadi et al., 2022). Company value is the result of a company condition,
shows the level of trust that people share in the company after several years of planned
activities. elements of value that are observed and marketed (Fatemi et al., 2018).
In this writing for the value that the reviewer uses variable Earning per share
(EPS), often referred to as the profit per share ratio, used to observe the value of the
organization. Earnings Per Share (EPS) is generally of interest to shareholders.
Important because it serves as a measure of business performance. Earnings per share,
or EPS is the first important factor in company studies must be calculated. The EPS of
a company indicates how much net income is available for distribution to all
shareholders of the company's equity. Report data can be used to determine the amount
of EPS of a company and You can observe the company's annual data (Agustina and
Huda, 2022).
Definition of Green Banking Disclosure and the effect of Green Banking
Disclosure on firm value
Green banking disclosure is a banking initiative that is part of an effort to
support sustainable development through sustainable finance programs. This element
is related to green financing. Good payments are explained by the infrastructure of
funding agencies for debtors operating in sectors that do not have an effect on the
quality of the social sphere. but also focuses on other plans related to the scope
(Rahmayati et al., 2022).
In particular, it is assumed that this means that banks do not just focus on
managing money, but on managing business optimally in order to gain large profits.
Its obligations include the development of the universe and the scope for the happiness
of share owners. collaborate these 3 elements as data which is called periodic data
which is usually nicknamed Triple Bottom Line (TBL) or Triple P (People, Planet and
Profit). The meaning of the element is if the bank needs to prioritize the needs of
related owners above the needs of share owners (Arifin et al 2020).
The basic concept of Green banking disclosure is to try to achieve profits by
looking at business in an environmentally friendly manner (Lako, 2023). Meanwhile,
Green banking disclosure refers to reporting practices carried out by banks in the
business world with the aim of protecting the environment. According to Handajani,
(2019), Green banking disclosure involves reporting information derived from a
company's operations and environmental risk management related to financial
products or environmental projects that provide benefits to the environment
(Rachmawati and Jayanti, 2023).
In line with legitimacy theory, it is explained that the company has an

agreement with each individual to carry out its operations with a sense of fairness.
Green banking disclosure is a banking initiative that is part of an effort to support
sustainable development through sustainable finance programs (Lako, 2023). It is
expected that the achievement of environmental empowerment efforts in green bank
disclosure will increase the value of the company. study Winarto et al., (2021) and
Julia and Kassim, (2020) stated if there is a good relationship between the assumed
green banks increasing corporate legitimacy which also has an impact on investor
confidence and firm value. So The proposed hypothesis for this study is:
H1: Green Banking disclosure has a significant positive effect on firm value
Definition of Profitability and the effect of profitability on firm value
Profitability is in the form of a company's ability to earn large profits. It
provides insight into how well a business performs in order to run revenue for the
business. Obtaining profitability is a necessary component. a significant consideration
as businesses need to be in a fortunate position (Chasanah, 2019). Profitability is
commonly used to measure the skill in earning profits. The capital owner observes the
amount of profits obtained makes before investing their funds. With this, when the
greater the profit generated, can increase company value and also the value of the
investment (Dewi dan Suryono, 2019). Profitability ratios are needed to assess
potential changes in economic resources generated by the company, this prospect is
good for attracting investor interest in investing so that annual reporting disclosures
are needed to cover a wide range of matters (Putranto et al., 2022).
Because company profits are the main goal that can describe how successful
the company is in fulfilling its obligations to investors and can be used to define an
organization future prospects in increasing company value (Fitria and Irkhami, 2021).
use Return On Asset, commonly called ROA, which is a scale that shows how well a
company uses its assets to earn profits. Of all the profitability ratios used today, this
ratio is the most significant (Chasanah, 2019).
In line with signal theory, it states that a company has the ability to share its
symbol and provide large profits to related parties. Profitability is the ability to earn
profits. Obtaining profitability is a component that requires significant consideration
because businesses need to be in a fortunate position Chasanah, (2019). It is hoped that
company profitability data can share positive knowledge about performance that can
increase company value. Research conducted Salsabilla and Rahmawati, (2021) and
Nur Halimah et al., (2017) there is a significant link between company value &
profitability. A hypothesis can be proposed in the form of:
H2: Profitability (ROA) has a significant positive effect on firm value

Definition of Bank Size and the effect of bank size on firm value
Bank size is an assessment of the the scale that determines the assets of the
organization. With this, the size of the bank can be a signal for investors because it
makes consideration for investing (Apriantini et al., 2022). Bank Scale is a
measurement used to classify the size of a company for several things. The size of an
organization depends on the scope of assets it owns. The bigger a company grows, the
more assets it has and the more money it needs to continue operating (Suryadi dan
Tandanu, 2020).
Using foreign capital can show the greater needs of companies that can have
an impact on capital investment and their owners who can observe several things sales
and market capitalization value where these activities will see the value and scale of
the company (Sakinah dan Hendrani, 2022). Total assets are used to observe the scale
of assets owned the bank the greater the amount of assets, the user of the assets will
also be large. This will have an has an effect on the value of shares which represent
the value of the organization increasing in relation to its book value and vice versa if
large assets are underutilized In the ideal scenario the share price or company value
will be lower (Hidayat, 2019).
Aligned signaling theory describes organizations have the ability to convey a
sign or signal that characterizes the condition of the company which will provide
benefits to investors. Bank scale is a measure used to determine the assets owned. With
this, the size of the bank can be a signal for investors because it makes consideration
for investing Apriantini et al., (2022). It is expected that the bank size report projected
by total assets can increase capital investment and be good in the eyes of capital owners.
study Rizqia Muharramah and Zulman Hakim, (2021) and Haslinda et al., (2019)
There is a connection between company value and scale. a hypothesis is proposed in
the form of:
H3: Bank size (total assets) has a significant positive effect on firm value
Definition of Non Performing Loan and the effect of Non Performing Loan on
firm value
This is a ratio that assesses a bank's ability to absorb the threat of failure to pay
bad loans. Credit risk is increasingly reflected in NPLs. Credit risk decreases as the
NPL paid by the bank decreases (Nur Halimah et al., 2017). The NPL ratio is used to
measure total non-performing loans against total loans that have been granted. NPL is
used as a tool to monitor non-performing loans. Bad credit can hinder a bank's health
to decline and will give a poor value to companies that have high NPL values (Maryadi
and Susilowati, 2020). Bank Indonesia's provisions in maintaining the stability of

NPLs are below 5%, if the NPL exceeds the BI provisions then the bank is
experiencing problems in risk management, this can reduce the value of a company.
Because companies tend to have weak risk management and investors will consider
further investing in the company (Nur Halimah et al., 2017).
Harmonious signal theory describes the company exists the ability to convey a
sign or signal that characterizes the condition of the company which will provide
benefits to investors. NPL is a ratio that shows the bank's ability to absorb threats.
Credit risk is increasingly reflected in NPL. Credit risk decreases as the NPL paid by
the bank decreases (Nur Halimah et al., 2017). According to research Galyani et al,
(2022) states that non-performing loans will have a negative has an impact on
organizational value because it can see an increase in NPL in line with a decrease in
organizational value. Of course, this is detrimental to business. A small NPL indicates
how well the bank operates in terms of non-performing loans functioning correctly.
An increasing NPL ratio indicates that the bank is not managing risks properly, bad
debts that will make it difficult for businesses to operate and jeopardize the continuity
of the company. The proposed hypothesis is:
H4: Non-performing loans have a significant negative effect on firm value.
Green bank Disclosure

H+1 (Teori Legitimasi)
Profitabilitas (ROA)
H+2 (Teori signal)
Nilai Perusahaan
Ukuran Bank (LN. aset)
H+3 (Teori signal)
Non Performing Loan

H-4 (Teori signal)
Figure 1
Research model of firm value with green banking disclosure and firm
performance
METODA PENELITIAN
This research is designed in the context of quantitative research, which is an
empirical study that produces data in the form of numbers (Syahrum and Salim, 2012).
Refers to Ahyar et al., (2020), quantitative research is an approach that combines

inductive and deductive methods. It begins by formulating a theoretical framework,
collecting experts' ideas, and utilizing the knowledge that researchers have based on
their experience. The process continues by formulating the problem and proposed
solution to obtain justification or verification through empirical data, which then
results in a report that develops the solution.
The population of conventional banks in Indonesia is 106 banks in 2023, but
in this study took a sample of 8 conventional banks. Because in this study there are
provisions in taking samples, namely those that issue financial reports from 2015-2022,
whose financial reports can be accessed on the internet, conventional banks that issue
sustainability reports and banks listed on the IDX. So 8 conventional banks were
selected including bank BRI, BCA, Mandiri, BJB, BNI, Artha graha, BTN, Maybank.
In this journal to be able to get a much better result and can be studied and
reviewed further, our group uses the Ordinary Least Squere (OLS) model, which In
this study there are 2 variables which are linearly aligned and have an impact on the
elements Green banking disclosure, Profitability, Bank size, and NPL on Firm value,
then in order for our test to be successful we use E-views 10 to be maximized. The
steps taken are by estimating each of the models, namely Common Effects (CE), Fixed
Effects (FE), and Random Effects (RE). The second step is to conduct a test, namely
the Chow test which can be used as a determinant of which food model is considered
to be the best model in this study and can be used as a suitable model between the CE
model and the FE model. Then the third step is to determine the test, namely the
Hausman test, this test is used to be able to test the existence of a difference between
the FE model and the RE model. The last step is the Breush-Pagan LM test which can
be used as a determinant of which model can be said to be more suitable between the
CE and RE models. After determining the best test, then conduct the t test and f test.
The dependent variable is conveyed to the independent variable. in this study
the variable is company value. Firm value reflects the evaluation made by shareholders
of the company's performance or achievement. (Novita, 2020)
Company value is a true condition that shows the level of confidence that each
individual shares in the company after the plans they implement. elements through
existing shares (Fatemi et al., 2018). shares are the basic elements that must be
calculated. The EPS of a company indicates how much net income is available for
distribution to all shareholders of the company's equity. Report data can be used to
determine the amount of EPS of a company and Observed the organization's annual
data (Agustina dan Huda, 2022).
𝑁𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥

𝐸𝑃𝑆 =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
The independent variable is the one that has an impact on the dependent. there
are variables in the form of.
support sustainable development through sustainable finance programs. the elements
are related to green financing. The payment is interpreted as the agency's infrastructure,
the funds distributed to the debtor do not have any effect on the condition or quality.
this refers to another insight (Rahmayati et al., 2022)
𝑆𝑢𝑠𝑡𝑎𝑖𝑛𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑅𝑒𝑝𝑜𝑟𝑡 𝑃𝑂𝐽𝐾 51 = 1
𝑆𝑢𝑠𝑡𝑎𝑖𝑛𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑟𝑒𝑝𝑜𝑟𝑡 𝑁𝑜𝑡 𝑠𝑢𝑖𝑡𝑎𝑏𝑙𝑒 𝑃𝑂𝐽𝐾 51 = 0
Profitability is the ability to earn profits. ROA is a skill to observe a company
in gaining profits. Of all the profitability ratios used today, this ratio is the most
significant (Chasanah, 2019).
𝑃𝑟𝑜𝑓𝑖𝑡 𝑏𝑒𝑓𝑜𝑟𝑒 𝑡𝑎𝑥
𝑅𝑂𝐴 = 𝑋 100%
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡
Scale is the size of an organization to determine the amount of assets and then
to compare capital investment (Apriantini et al., 2022). The amount of assets used to
observe this scale increases as the total assets used are also large. optimal
determination has an effect on share value. increases in relation to its book value and
vice versa if large assets are underutilized In the ideal scenario, the share price or
company value will be lower than the book value (Hidayat, 2019).
𝐵𝑎𝑛𝑘 𝑠𝑖𝑧𝑒 = ln 𝑇𝑜𝑡𝑎𝑙 𝑏𝑎𝑛𝑘 𝑎𝑠𝑠𝑒𝑡𝑠
NPL is to write down the bank's ability to absorb the threat of failure or bad
credit. Credit risk is increasingly reflected in NPLs. Credit risk decreases as the NPL
paid by the bank decreases (Nur Halimah et al., 2017).
𝑁𝑃𝐿
𝑁𝑃𝐿 = 𝑋 100%
𝑇𝑜𝑡𝑎𝑙 𝑐𝑟𝑒𝑑𝑖𝑡
ANALYSIS AND DISCUSSION

RESULT
In data processing with the technique used, namely regression, this panel data
has 3 alternative model methods, namely where there is common effect (CE), fixed
effect (FE), and also random effect (RE). Therefore, to find out which model is the
best in processing or testing this panel data by conducting a test first. Therefore, The
panel output is observed in the form of.

Tabel 1
Output Common effect model
Variable Coefficient Std. Error t-Statistic Prob.
C -9.800907 2.611877 -3.752439 0.0004
GREEN_BD 0.788903 0.547483 1.440965 0.1549
PROFITABILITAS_ROA 0.258113 0.187270 1.378294 0.1733
LOG_UKURAN_BANK 0.734029 0.156736 4.683215 0.0000
NPL -0.365837 0.151323 -2.417587 0.0187
R-squared 0.739970 Mean dependent var 4.907080
Adjusted R-squared 0.722341 S.D. dependent var 1.799070
S.E. of regression 0.947990 Akaike info criterion 2.805959
Sum squared resid 53.02241 Schwarz criterion 2.974621
Log likelihood -84.79067 Hannan-Quinn criter. 2.872403
F-statistic 41.97431 Durbin-Watson stat 0.602895
Prob(F-statistic) 0.000000
Tabel 2
Output Fixed effect model
C 7.156776 4.228233 1.692616 0.0965
GREEN_BD -0.662545 0.373462 -1.774061 0.0819
LOG_UKURAN_BANK -0.098696 0.196446 -0.502409 0.6175
NPL -0.280868 0.104251 -2.694137 0.0095
Effects Specification
Cross-section fixed (dummy variables)
S.E. of regression 0.487132 Akaike info criterion 1.566796
Sum squared resid 12.33945 Schwarz criterion 1.971586
Log likelihood -38.13746 Hannan-Quinn criter. 1.726263
Tabel 3
Output Random effect model
C -6.462068 1.758425 -3.674918 0.0005
GREEN_BD 0.311028 0.320343 0.970924 0.3355
LOG_UKURAN_BANK 0.535159 0.096359 5.553788 0.0000
NPL -0.233573 0.086225 -2.708885 0.0088
Weighted Statistics
S.E. of regression 0.727416 Sum squared resid 31.21889
After processing the data from the three approaches above, then the selection
of the model that is considered the best can be done by testing the Hausman Test and
also the Breusch-Pagan LM Test.
Tabel 4
Output Best model test
Uji Probabilitas Keterangan
Chow 0,0000 Terpilih menjadi model
terbaik yaitu Fixed
Hausman 0,0000 effect model
Based on Table 4. From the Chow test results, a value of Prob.F of 0.0000 can
be obtained. therefore observed below 0.05, the conclusion is that H0 is rejected & H1
is accepted. if FE is feasible than CE.
Observed Prob.F is 0.0000. below 0.05, the conclusion is that H0 is rejected &
H1 is accepted. for FE worth than RE.
Observed Prob.F is 0.0000. where below 0.05 the conclusion is that H0 is
rejected & H1 is accepted. for FE it is worthy of CE.
Through the Hausman, Chow and Breusch-Pagan LM test, it was observed that
the FE was feasible. Meanwhile, in the Breusch-Pagan LM test, the RE model can be
said to be much more appropriate, so that from this test it can be concluded that the
feasible and arguably the best model in this study is FE.
Table 5
Output Fixed effects model estimation model
Variabel Coefisien Probabilitas
Green banking -0,662545 0.0819
Disclosure
Profitabilitas (ROA) 0,519325 0.0026
Ukuran Bank (total -0,098696 0,6175
aset)
Non-performing loan -0,280868 0.0095
Prob F(statistic) 0,000000
Adj R square 0,926684
Hypothesis Test
T-test
The test is to observe each variable that has a partial impact or not on the
exchange rate. Based on the FE test table above, it produces the following discussion.
In this result will produce data that is significant or not, if significant, it means that the
variable will affect the dependent variable, namely firm value. Significant when
variable X changes, variable Y will also change. If it is not significant, it means that
when variable X changes, there will be no effect on variable Y. Based on the FE test
table above, it produces the following discussion.
Through Green Banking Disclosure amounting to 0.0819, the conclusion is that
H0 is accepted & H1 is rejected. where Green Banking Disclosure does not impact the
value of the Company. in line with legitimacy theory where green banking can increase
company value. in line with the study Simanungkalit & Mayangsari, (2020) which is
where green banking disclosure cannot increase the value of the Company. This is
related to the market and investors who do not respond to the implementation of this
green banking disclosure. Investors will still see the benefits that can be generated by
the Company compared to the fulfillment of corporate legitimacy.
Profitability was observed at 0.0026, the conclusion was that H2 was accepted
& H0 was rejected. where profitability has an impact on company value. in line with
signal theory where organizations provide signals to capital owners in order to invest
them. where greater capital investment can increase the value of the company.
It was observed that the bank size was 0.6175 where H0 was accepted and H3
was rejected. The conclusion is that bank size has an insignificant impact on company
value. not in line with the signal theory that bank scale can increase company value
when measuring the amount of assets. In line with Haryanto et al., (2018)'s study, bank
size has no impact on company value.
Where Problematic Credit amounting to 0.0095 for H4 is accepted & H0 is
rejected. In conclusion, NPL has a bad impact, the coefficient is observed -0.280868.
According to signal theory, this is when the NPL is large, the company value will
decrease because high bad debts can reduce company value.
F statistic test
The F statistical test is used to determine whether there is an influence of the
independent variables either simultaneously or not on firm value. Based on the FE test
table above, it can produce the following hypothesis.
H0 can be rejected if the value of the Prob F statistic is smaller than 0.05 or it
can also be said that the prob f statistic <0.05. Based on the results of the research that
has been done above, it can produce a value of the Prob F statistic of 0.00000. from
this value it can be seen that the value is less than 0.05, from these results it can be
decided that H0 is rejected and also decided that H1 is accepted. So with this, a
conclusion can also be drawn that the Green banking disclosure variable, Profitability,
Bank size, and Non-performing loans have a significant influence on firm value.
Which means that the four variables together have a significant effect on firm value.
DISCUSSION
From the results of the analysis and data processing that has been done, it
produces a discussion of the green banking disclosure, profitability, bank size, and
NPL variables on firm value as follows:
Effect of Green banking disclosure on firm value
support sustainable development through sustainable financing programs. the elements
are related to green financing. The payment is interpreted as the agency's
infrastructure, the funds distributed to the debtor do not have any effect on the
condition or quality. this refers to another insight (Rahmayati et al., 2022). Firm value
can be influenced by various aspects of performance in the banking sector, therefore
According to green banking, it is hoped that it can make capital owners interested in
investing where their organization has the capital to pay for the next plan according to
their assumptions. through the test, it shows that it has no impact on company value.
in line with the study Zaputra, (2021) The study states that green banking disclosure
has an insignificant effect on firm value, this can be caused by a lack of human
awareness and investors do not care about the concept of green banking because what
investors will see is only profit. With this green banking disclosure has not been able
to increase company value. Therefore, more promotion of this green banking
disclosure program is needed so that investors can find out what benefits will be
obtained from this program. Because awareness of the environment is needed for the
sustainability of the environment and nature around, which green banking disclosure
focuses on the environment that allows banks to operate morally and effectively in
building human awareness to care more about the environment. In this case, green
banking disclosure focuses on financing based on care for the environment where not
many people invest and people use this program or product that has been provided by
the bank, therefore few invest in this program. In this case there are no regulations or
laws relating to the reporting of green banking disclosures, but many banking
institutions are implementing in different ways but with the same goal of
environmental sustainability.
The effect of profitability on firm value
Profitability is in the form of the company's ability to earn profits. Of all the
profitability ratios used today, this ratio is the most significant (Chasanah, 2019).
Profitability is the most important aspect seen when making an investment because
profitability reflects how much the company makes a profit. When the profitability
value of a company is high, The company will be seen as good in the eyes of capital
owners because it is assumed that it will be able to gain profits from the performance
it provides. Through the tests carried out there is an impact of profits on company
value. in line with the study of Apriantini et al., (2022) where profitability has an
impact on company value. So if the profits of large organizations need to be able to
maintain them when they decrease, this can impact their performance. Profitability is
a reflection of every company and will continue to be monitored by investors. With
this high profitability will greatly affect the sustainability of the company and capital
turnover for operations.
The effect of bank size on firm value
The bank scale is a small size determined by the amount of assets. With this,
the size of the bank can be a signal for investors because it makes consideration for
investing (Apriantini et al., 2022). Total assets are used to observe the size of the
organization, so that the amount of assets owned can reach the owner's assets. optimal
determination has an effect on the value of the representative shares. increases in
relation to its book value and vice versa if large assets are underutilized in the ideal
scenario, the share price or company value will be lower than the book value (Hidayat,
2019). Total assets are commonly used to measure organizational scale. where this
scale shows the amount of an organization's assets, if the value is large or large and
vice versa, which can be a guarantee for getting debt. then the capital is used to increase
profits and performance for the purposes of value. The tests conducted showed that
there was no impact of bank scale on company value. in line with the study Chasanah,
(2019) in the study states that bank size has an insignificant effect on firm value, this
shows that the size of the bank will not affect investors' expectations of the company.
Because a large bank does not necessarily guarantee that the bank has good working
prospects and vice versa. In addition, large banks are sometimes less flexible in
adapting to changes in the environment because a slight change will have a big
influence, therefore caution is needed. With this the size of the bank has not been able
to increase the value of the company.
The effect of Non-performing loans on firm value.
The NPL ratio is used to measure total non-performing loans against total loans
that have been granted. NPL is used as a tool to monitor non-performing loans. Non-
performing loans can cause the health of the bank to decline and will give a poor value
to companies that have high NPL values (Maryadi dan Susilowati, 2020). Non-
performing loans are the enemy of all bank companies because there is no income
because the loans given are bad and default. This will be very detrimental to the
company, therefore every company must have risk management that can overcome the
problem of default. The test found a negative effect of NPL on organizational value,
which in line with the study by Galyani et al, (2022) explained that NPL had a
significant negative effect on group value because the increase in NPL corresponded
to a decrease in organizational value. Of course this is detrimental to business. A small
NPL indicates how well the bank operates in terms of non-performing loans
functioning properly. An increasing NPL ratio indicates that the bank is not managing
risks properly, bad debts that will make it difficult for businesses to operate and
jeopardize the continuity of the company.
SIMPULAN, KETERBATASAN DAN SARAN
Conclusion
Where this explanation concludes that partial Green Banking Disclosure has
no effect on Company Value, where there is minimal individual awareness and there
is no assumption of green banking elements. Profitability has an impact on company
value, because the interest of capital owners can increase because the profits are large.
The size of the bank does not have an impact on the value of the company, because the
capital owner will look at elements that can benefit him. Non-performing loan variable
has a significant negative effect on firm value, this is because when the number of non-
performing loans increases, the company value will decrease. Simultaneously, the four
variables together affect firm value. from the simultaneous results that the four
variables together affect the value of the company, then when the four variables
experience the same increase, the firm value will also increase.
Recommendation
This research was conducted using a time period of 8 years. It is recommended
that further research use a longer time period and add variables that can affect firm
value in banking. The concept of green banking disclosure should be further enhanced
by the products that will be offered in order to attract investors. With the concept of
green banking is expected to increase human awareness of the surrounding
environment. With this research, it is hoped that it will become a reference for banking
companies that are sampled and can be used as a comparison between other countries
or with other banks to get maximum results.
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Jurnal Ekonomi dan Bisnis, Volume 2x No.

Jurnal Ekonomi dan Bisnis

The Role of Green Bank Disclosure on the Performance of the

Asilah Eka Putria, Idah Zuhrob

INFO ARTIKEL ABSTRACT

terpilih, menggunakan model data panel untuk menunjuang hasil

In line with legitimacy theory, it is explained that the company has an

H2: Profitability (ROA) has a significant positive effect on firm value

and Susilowati, 2020). Bank Indonesia's provisions in maintaining the stability of

Green bank Disclosure

Non Performing Loan

Refers to Ahyar et al., (2020), quantitative research is an approach that combines

𝑁𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥

ANALYSIS AND DISCUSSION

panel output is observed in the form of.

also the Breusch-Pagan LM Test.

Bisnis, Manajemen, Dan Akuntansi, 20(1), 1–15.

Syahrum, & Salim. (2012). METODOLOGI PENELITIAN KUALITATIF.pdf.

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