The Influence of Operational Efficiency (SFA Modeling), Credit Risk, and Third-Party Funds on Stock Prices with Financial Performance as a Mediating Variable

This study examines how operational efficiency, credit risk, and third-party funds affect the stock prices of banks listed on the Indonesia Stock Exchange, with financial performance acting as a mediating variable. Focusing on banks included on the main board during 2020–2024, the study uses panel data collected from annual reports and financial statements published on the official Indonesia Stock Exchange website. The sample consists of 29 commercial banks selected through purposive sampling, yielding 145 observations. Operational efficiency is measured using Stochastic Frontier Analysis (SFA), while the relationships among variables are tested through Structural Equation Modeling with the Partial Least Squares approach. The results show that third-party funds and operational efficiency contribute positively to stock prices, whereas credit risk does not have a direct effect. At the same time, all three independent variables exert positive indirect effects through financial performance. These findings indicate that financial performance serves as an important mechanism linking banks’ internal conditions to market valuation. The study underscores the relevance of managerial efficiency and strong funding capacity in enhancing investor confidence and offers novelty through the application of SFA and a simultaneous mediation model in the context of Indonesia’s post-pandemic banking sector.