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Purpose: The purpose of the research is to analyze the differences in bank price-to-book value based on the level of digitalization and to explore the influence of digitalization and financial factors on the price-to-book value of banks with digital services. Theoretical Framework: The theoretical framework likely encompasses theories related to digital transformation, financial performance metrics (such as price-to-book value, fee income, return on equity), and possibly theories related to banking and digital services adoption. Method: The research methodology involves statistical tests and Panel Data Regressions. Data from 24 banks covering the period from 2019 to 2022 are utilized. Result and Conclusion: The analysis reveals that higher levels of digitalization are associated with improved contributions of fee income, return on equity, and price to the bank's book value. Additionally, the level of digitalization strengthens return on equity, improves non-performing loans (NPL), and enhances capital utilization, all of which significantly influence price-to-book value. Originality/Value: The novelty of this study lies in its focus on using the price-to-book value (PBV) of commercial banks with digital services as a metric linked to digital transformation, which is distinct from previous research primarily focused on digital banks' profitability. This shift in focus allows for a deeper understanding of the impact of digitalization on bank value.
Avianto et al. (Tue,) studied this question.