Investigating the Roles of Stakeholders, Disclosure, and Transparency in Financial Performance and Corporate Value: Evidence from Indonesian State-Owned Banks

This study develops a comprehensive framework to examine the interplay between stakeholder roles, disclosure and transparency practices, financial performance, and corporate value in Indonesian state-owned banks. It explores how stakeholder engagement and transparency practices influence financial outcomes, and how these factors contribute to shaping corporate value. Financial performance is treated as a key intermediary through which the effects of internal governance practices are realized, while corporate value is conceptualized as a multidimensional construct shaped by both financial and non-financial factors. Stakeholder roles and disclosure practices are measured using formulas adapted from the ASEAN Corporate Governance Scorecard (ACGS) guidelines. Financial performance is assessed through Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS), while corporate value is evaluated using Price-to-Book Value and Price-to-Earnings ratios. A purposive sampling approach was used to select state-owned banks (BUMN) listed in the ACGS index. Data from 2013 to 2022 were sourced from official bank reports, sustainability disclosures, and publications from the Indonesian Financial Services Authority (OJK). Analysis was conducted using SEM Partial Least Squares (SEM-PLS) to accommodate multicollinearity and complex variable relationships. The findings reveal that while stakeholder roles and disclosure practices may not directly improve short-term financial performance, transparency significantly enhances company value. Financial performance remains a key driver of market valuation. Policymakers and bank management should emphasize long-term stakeholder engagement strategies and strengthen disclosure practices to improve market trust and institutional value, aligning governance reforms with both economic and social objectives.