GOOD CORPORATE GOVERNANCE AND CAPITAL ADEQUACY RATIO EFFECTS ON FIRM VALUE: SUSTAINABILITY DISCLOSURE AS A MEDIATOR

Fatma Novianti, Liliek Nur Sulistiyowati, Ririh Anggraini Setyahety

Abstract


This study is motivated by the importance of increasing firm value in conventional banking companies through effective corporate governance, adequate capital, and sustainability disclosure. This study aims to analyze the effect of Good Corporate Governance (GCG) and Capital Adequacy Ratio (CAR) on firm value, with Sustainability Disclosure as a mediating variable, in conventional banking companies listed on the Indonesia Stock Exchange during 2020–2025. A quantitative approach was employed using secondary data obtained from companies’ annual and sustainability reports. The sample was selected using purposive sampling, resulting in 40 companies. Data were analyzed using IBM SPSS. The results show that GCG and CAR have a significant positive effect on firm value. GCG has a significant positive effect on Sustainability Disclosure, whereas CAR has no significant effect on Sustainability Disclosure. Furthermore, Sustainability Disclosure has a significant positive effect on firm value and mediates the effect of GCG on firm value, but does not mediate the effect of CAR on firm value. These findings are expected to provide consideration for banking companies in improving corporate governance, capital adequacy, and sustainability disclosure to support firm value enhancement.

Keywords: Good Corporate Governance, Capital Adequacy Ratio, Sustainability Disclosure, Firm Value


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