Determinants of firm value in asean Islamic banking: The mediating role of profitability

Jazilah, Zahrotul and Miranti, Titis ORCID: https://orcid.org/0000-0002-8720-3809 (2026) Determinants of firm value in asean Islamic banking: The mediating role of profitability. Al Dzahab: Journal of Economics, Management, Business and Accounting, 7 (2). pp. 178-193. ISSN https://portal.issn.org/resource/ISSN-L/2808-7631?issn=2808-7585&search_id=81d0a57e-1586-43c6-8b48-e2818f73e269

Preview

Text 29331.pdf - Accepted Version Available under License Creative Commons Attribution. Download (471kB) | Preview

Abstract

Purpose: This study aims to analyze the influence of intellectual capital(IC), capital adequacy ratio(CAR),and risk management disclosure(RMD)on increasing the value of Islamic banking through financial performance as an intermediary. Design/Methodology/Approach: This study employs a quantitative method with an explanatory-causal approach. The sample consists of 16 Islamic banks in the ASEAN region that have published complete and consecutive annual financial reports for the period 2018-2024, selected using purposive sampling. Data were sourced from secondary sources and analyzed using panel data regression and the Sobel test (mediation test).Findings: The findings reveal that intellectual capital has a notable impact on firm value. In contrast, the capital adequacy ratio and risk management disclosure do not have a significant effect on firm value within ASEAN's Islamic banking sector. Furthermore, profitability plays a crucial role in influencing firm value in this context. Intellectual capital also significantly affects profitability in ASEAN's Islamic banking sector. On the other hand, the capital adequacy ratio and risk management disclosure do not have a significant impact on profitability in ASEAN's Islamic banking sector. Profitability serves as a mediator for the influence of intellectual capital on firm value in ASEAN's Islamic banking sector. However, it does not mediate the effects of the capital adequacy ratio and risk management disclosure on firm value in this sector. Research Implications: The study is unique because it thoroughly evaluates this dual-theory model in different ASEAN countries from 2018 to 2024, adding to the limited cross-country evidence in ASEAN Islamic banking. Unlike intellectual capital, the capital adequacy ratio and risk management disclosure do not provide competitive advantages or credible market signals. This suggests that investors may see them mainly as compliance measures rather than value-creating resources. In practice, regulators and management should move from strict compliance-focused frameworks to standardized disclosures of knowledge-based assets and strategic development of intellectual capital. This approach will ensure sustainable financial performance in the region and increase firm value

Item Type:	Journal Article
Keywords:	intellectual capital; capital adequacy ratio; risk management disclosure; profitability; firm value
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150201 Finance 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150203 Financial Institutions (incl. Banking) 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Titis Miranti
Date Deposited:	23 Oct 2026 14:51

Downloads

Origin of downloads

Actions (login required)

View Item