ANALYSIS OF BANK HEALTH LEVELS USING THE RGEC APPROACH ON COMPANY VALUE OF DIGITAL BANKS REGISTERED WITH THE FINANCIAL SERVICES AUTHORITY (OJK)

Abstract

The banking sector in the digital banking industry in Indonesia is experiencing significant growth, this is due to technological developments. This research aims to determine the analysis of the level of bank health using the RGEC approach to the company value of digital banks registered with the financial services authority (OJK) in 2021 - 2023. This research takes four independent variables including Risk Profile, Good Corporate Governance, Earnings and Capital and one dependent variable, namely company value. This type of research uses quantitative research methods using data collection methods in the form of library studies and documentation. The data used in this research is secondary data with the sample being a digital bank registered with the OJK. The population in this study was 15 companies with a total sample of 8 companies using a sampling technique, namely purposive sampling. This research uses the classical assumption test, multiple linear regression test, coefficient of determination test and hypothesis test. The results of this research partially show that the Risk Profile and Capital variables do not have a significant effect on company value, while the GCG and Earnings variables have a significant effect on company value. Meanwhile, simultaneously the Risk Profile, GCG, Earnings and Capital variables have a significant effect on company value.