MEDIATION OF EFFICIENCY IN GREEN BANKING ON THE FIRM VALUE OF CONVENTIONAL BANKING

Abstract

This study aims to investigate the effect of green banking on firm value with bank efficiency as a mediating variable. The research approach used is quantitative with a sample consisting of 12 conventional banks from 48 annual reports and sustainability reports of banking companies in Indonesia. The data were analyzed using SEM-PLS. The test results show that green banking and bank efficiency have a significant positive effect on company value, green banking has a significant positive effect on bank efficiency and bank efficiency is unable to mediate the relationship between green banking and company value. This study shows the benefits of implementing green banking which is currently being carried out by the government and proves that environmental aspects have an important role for the sustainability of a business, so that the company does not only focus on financial performance but also on environmental aspects.