Proceedings of the Thirteenth International Conference on Entrepreneurship and Business Management UNTAR 2024 (ICEBM 2024)

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Unveiling the Influence of Risk on Banking Firm Valuation

Authors
Nurainun Bangun1, Khairina Natsir1, *
1Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia
*Corresponding author. Email: khairinan@fe.untar.ac.id
Corresponding Author
Khairina Natsir
Available Online 13 August 2025.
DOI
10.2991/978-94-6463-809-7_8How to use a DOI?
Keywords
Market Risk; Business Risk; Credit Risk; Company Value; Banking
Abstract

Banking risk assessment is essential to maintaining financial stability, complying with regulations, and preventing bad debts. Effective risk management helps banks maintain customer and investor trust, avoid bankruptcy, and maintain profitability. Well-managed risks also allow banks to diversify their portfolios and optimize capital allocation, ensuring long-term operational sustainability. This study intends to assess the influence of business risk, market risk, and credit risk on the value of banking firms over the 2018-2023 period. The research focuses on commercial banking institutions listed on the Indonesia Stock Exchange during this timeframe. This quantitative study relies on secondary data and selects samples through purposive sampling, resulting in 37 banking firms. The analysis involves classical assumption testing and multiple regression analysis. Findings indicate that market risk, credit risk, and business risk have a negative and statistically significant impact on the company value of banks listed on the Indonesia Stock Exchange during the specified period.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Thirteenth International Conference on Entrepreneurship and Business Management UNTAR 2024 (ICEBM 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
13 August 2025
ISBN
978-94-6463-809-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-809-7_8How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Nurainun Bangun
AU  - Khairina Natsir
PY  - 2025
DA  - 2025/08/13
TI  - Unveiling the Influence of Risk on Banking Firm Valuation
BT  - Proceedings of the Thirteenth International Conference on Entrepreneurship and Business Management UNTAR 2024 (ICEBM 2024)
PB  - Atlantis Press
SP  - 93
EP  - 105
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-809-7_8
DO  - 10.2991/978-94-6463-809-7_8
ID  - Bangun2025
ER  -