Issue

Vol. 12 No. 2 (2025): December

Date Log

Submitted
26 July 2025
Accepted
4 February 2026
Published
31 December 2025

Copyright (c) 2025 Surayya Surayya, Cici Rianti K Bidin, Anisah Anisah (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Does Bank Health Reach the Market? Evidence from Profitability-Driven Valuation in FX Banks

https://doi.org/10.24252/minds.v12i2.60143
Surayya Surayya
Universitas Tadulako, Indonesia
Cici Rianti K Bidin
Universitas Tadulako, Indonesia
Anisah Anisah
Universitas Tadulako, Indonesia

Corresponding Author(s) : Surayya Surayya

[email protected]

Jurnal Minds: Manajemen Ide dan Inspirasi, Vol. 12 No. 2 (2025): December

Abstract

This study examines how bank soundness translates into profitability and market valuation in foreign exchange national private commercial banks in Indonesia. Its core contribution lies in reframing risk-based bank assessment as a transmission mechanism, showing how liquidity discipline and cost efficiency shape firm value primarily through profitability rather than through isolated governance or capital indicators. Using panel data from eight banks over 2018–2023 and moderated regression analysis, the findings show that liquidity management, governance quality, and operating efficiency significantly influence return on assets, while credit risk and margin structure do not exert direct effects. Profitability, in turn, significantly enhances firm value and selectively strengthens the impact of liquidity on valuation. These results imply that market confidence rewards banks that convert balance-sheet discipline into sustained profitability, underscoring the strategic importance of efficient intermediation for investors and bank managers alike.

Keywords

Bank Soundness Profitability Transmission Firm Value Liquidity Discipline Operating Efficiency
Surayya, S., Bidin, C. R. K., & Anisah, A. (2025). Does Bank Health Reach the Market? Evidence from Profitability-Driven Valuation in FX Banks. Jurnal Minds: Manajemen Ide Dan Inspirasi, 12(2), 731–742. https://doi.org/10.24252/minds.v12i2.60143
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Author Biographies

Surayya Surayya, Universitas Tadulako

Department of Management, Faculty of Economics and Business

Cici Rianti K Bidin, Universitas Tadulako

Department of Management, Faculty of Economics and Business

Anisah Anisah, Universitas Tadulako

Department of Management, Faculty of Economics and Business

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