Abstract:
The purpose of this study is to analyze the effect of risk efficiency, financial decisions, and
financial performance on firm value due to advances in financial reporting technology. This
research was conducted on all banking sub-sector companies listed on the Indonesian capital
market during a period of eight years, namely 2012–2019 which were selected using the purposive
sampling method. The advancement of financial reporting technology is measured by two
indicators based on the Internet financial reporting approach. Risk efficiency is measured using
three indicators with a risk proxy relative efficiency approach using value at risk. Financial
decisions are measured by two indicators that represent funding decisions and investment
decisions. Financial performance is measured by two indicators with the profitability approach,
and firm value is measured by two indicators based on the investor perception approach. The data
analysis technique in this study used multivariate analysis with SEM-PLS. The empirical findings
of this study are the advances in financial reporting technology, financial decisions, and risk-based
efficiency value have a significant effect on firm value, while financial performance does not have
a significant effect on firm value. Banking companies reduce risk to achieve efficiency and result
in lower profits.
