Articles

The Effect of Growth Opportunity and Credit Risk on Firm Value and Profitability as Mediating Variables in Digital Banking

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The digital transformation phenomenon in the Indonesian banking industry is growing rapidly, marked by the emergence of digital banks offering fully technology-based services. This change is driving increased competition and creating new dynamics in assessing company value, particularly regarding growth opportunities and credit risk quality. This study aims to analyze the effect of growth opportunity and credit risk on company value, with profitability as a mediating variable. The study uses a quantitative approach with growth opportunity and credit risk as independent variables, profitability as a mediating variable, and company value as the dependent variable. The research sample consisted of six digital banks selected through purposive sampling with a total of 30 observations during the 2020–2024 period. Data were obtained from the companies’ annual financial reports and official publications of the Indonesia Stock Exchange. Then, they were processed using panel regression with the EGLS method and the Sobel test using the Eviews 12 application. The results show that growth opportunity has a positive and significant effect on company value, while credit risk has a negative and significant effect. Credit risk also has a negative and significant effect on profitability, while growth opportunity has no significant effect on profitability. Furthermore, profitability has a positive and significant effect on company value, but does not mediate the relationship between growth opportunity and credit risk on company value. These findings suggest that the firm value of digital banks is more influenced by growth prospects and asset quality than the mediating pathway through profitability.

Strategic Business Adaptations and Growth Opportunities for Cahya Bali Resort in Bali’s Competitive Coastal Environment

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This research analyzes the strategy adaptation and growth opportunities for Cahya Bali Resort in a high-competitive property industry in Bali. The research focuses in identifying factors that influence customers’ purchase decision in deciding to purchase property in Bali and to find the gaps between the factors that is considered important by customers and the factors that is perceived by PT. CBR as the important factors for customers. The need of this research arises from the stagnant sales in the project.

The research employs quantitative and qualitative methods. The quantitative data is collected through a questionnaire that is participated by 178 respondents with various demographic segments. The results are analyzed descriptively using the cross-tabulation method. The qualitative data gathering is conducted to further explore the factors and to triangulate the data from questionnaires. The qualitative data is conducted by interviews with both external and internal parties that are involved in Cahya Bali Resort. From the interview result, the data is analyzed with coding method to explore the factors that appears the most.

This research employs the 7Ps marketing mix approach as the parameter of the factors and suggested that there are gaps of between the factors that is perceived important by customers and by the management of PT. CBR. For customers, the important factors involve Place, Price, People and Product category. While for the management of PT. CBR, the important factors involve Place, People, Price, and Product. Although it may seem similar but the sub-factors in the 7Ps marketing mix differs between customers and the management of PT. CBR. The gap identification calls for strategy adaptations to answer customer. Further to the strategy adaptation, this research also suggested the growth opportunity for Cahya Bali Resort.