The Influence of Capital Structure and Financial Performance on Financial Sustainability and Its Implications on Firm Value
DOI:
https://doi.org/10.55927/ijems.v3i2.32Keywords:
Capital Structure, Financial Performance, Financial Sustainability, Firm ValueAbstract
This research aims to analyze the influence of capital structure and financial performance on financial sustainability and its implications on firm value. The research used is descriptive quantitative. The research object used is the banking industry listed on the IDX in the 2018-2023 period. The sampling technique was carried out using purposive sampling and 29 companies were selected for 6 years, resulting in 174 observation data. Data analysis uses panel data and is processed using software STATA version 17. The research results show that capital structure and financial performance have a positive and significant effect on financial sustainability. Besides that, financial sustainability provide a positive and significant impact on company value
References
Abdi, Y., Li, X., & Càmara-Turull, X. (2020). Impact of sustainability on firm value and financial performance in the air transport industry. Sustainability (Switzerland), 12(23), 1–22. https://doi.org/10.3390/su12239957
Abdullahi, A., & Othman, A. H. A. (2021). Determinants of Financial Sustainability for Microfinance Institutions: Lessons for Islamic Microfinance Banks in Nigeria. Turkish Journal of Islamic Economics, 8(Special Issue), 301–320. https://doi.org/10.26414/a2369
Altahtamouni, F., Alfayhani, A., Qazaq, A., Alkhalifah, A., Masfer, H., Almutawa, R., & Alyousef, S. (2022). Sustainable Growth Rate and ROE Analysis: An Applied Study on Saudi Banks Using the PRAT Model. Economies, 10(3). https://doi.org/10.3390/economies10030070
Akhmadi, Akhmadi, and Yeni Januarsi. 2021. "Profitability and Firm Value: Does Dividend Policy Matter for Indonesian Sustainable and Responsible Investment (SRI)-KEHATI Listed Firms?" Economies 9, no. 4: 163. https://doi.org/10.3390/economies9040163
Alifiana, M. A., Puteri, A. N., & Kuncoro, M. T. (2023). Faktor-Faktor Yang Berdampak Pada Financial Sustainability Ratio Di Bank BUMN Periode 2015-2022. Master: Jurnal Manajemen Dan Bisnis Terapan, 3(2), 107–117.
Alifiana, M. A., & Putri, R. A. (2023). Dampak Kinerja Keuangan terhadap Keberlanjutan Keuangan Perusahaan Multifinance di Indonesia. UMMagelang Conference Series, 913–921. https://journal.unimma.ac.id/index.php/conference/article/view/10065%0Ahttps://journal.unimma.ac.id/index.php/conference/article/download/10065/4482
Aliu, F., Nadirov, O., & Nuhiu, A. (2021). Elements Indicating Stock Price Movements: The Case of The Companies Listed on The V4 Stock Exchanges. Journal of Business Economics and Management, 22(2), 503–517.
Ariesa, Y., Putra Hulu, W., Antonio, K., & Prima Indonesia, U. (2023). The effect of sustainable growth rate, research and development on company value through variable moderating profitability in start up companies in the world. Management Studies and Entrepreneurship Journal, 4(2), 1858–1870. http://journal.yrpipku.com/index.php/msej
Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22, S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Dabi, R. S. K., Nugraha, Disman, & Sari, M. (2023). Capital structure, financial performance and sustainability of Microfinance Institutions (MFIs) in Ghana. Cogent Economics and Finance, 11(2). https://doi.org/10.1080/23322039.2023.2230013
Dalam, I., Doi, T., Rutanga, J. M., Barayandema, J., & Mutarindwa, S. (2021). Jurnal Ilmu Sosial , Humaniora dan Bisnis Rwanda : ISSN 2708-. 7603(2), 6–26.
Diastanova, R., & Marsoem, B. S. (2023). The Influence of Liquidity, Profitability, Asset Structure And Asset Growth on Firm Value with Capital Structure as Moderating Variable (Study in The Food & Beverage Sub-Sector Companies Listed on Indonesia Stock Exchange in The Period of 2018 - 2021). Journal of Economics, Finance and Management Studies, 06(01), 238–257.
Eka Handriani, E. H., & Robiyanto, R. (2018). Corporate Finance and Firm Value in The Indonesian Manufacturing Companies. International Research Journal of Business Studies, 11(2), 113–127. https://doi.org/10.21632/irjbs.11.2.113-127
Esqueda, O., Ngo, T. and Wang, D. (2021), "The information content of managerial insider trading: evidence from analyst forecasts", Asian Review of Accounting, Vol. 29 No. 3, pp. 332-361. https://doi.org/10.1108/ARA-04-2020-0062
Ferriswara, D., Sayidah, N., & Agus Buniarto, E. (2022). Do corporate governance, capital structure predict financial performance and firm value?(empirical study of Jakarta Islamic index). Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2147123
Gleißner, W., Günther, T., & Walkshäusl, C. (2022). Financial sustainability: measurement and empirical evidence. In Journal of Business Economics (Vol. 92, Issue 3). Springer Berlin Heidelberg. https://doi.org/10.1007/s11573-022-01081-0
Gujarati, N. D. (2012). Dasar-Dasar Ekonometrika. Jakarta: Salemba.
Higgins, R. C. (1977). How Much Growth Can a Firm Afford? Finansial Management, 6(3) , https://doi:10.2307/3665251, 7–16.
Hu, H., & Sathye, M. (2015). Predicting financial distress in the Hong Kong growth enterprises market from the perspective of financial sustainability. Sustainability (Switzerland), 7(2), 1186–1200. https://doi.org/10.3390/su7021186
Husnan, Suad (2002). Manajemen Keuangan Teori Dan Praktek. Yayasan Badan Penerbit Gajah Mada Yogyakarta.
Ikhwan, Syamsul Ridjal, & La Ode Sumail. (2021). Kinerja Keuangan Dan Nilai Perusahaan: Peran Ukuran Perusahaan Perbankan Konvensional Di BEI. Jurnal Ekonomi, 26(2), 321–336. https://doi.org/10.24912/je.v26i2.753
Ismiyatun, I., Aryani, N., & Ispriyahadi, H. (2021). Determinants of firm value: evidence from listed insurance companies in Indonesia. Diponegoro International Journal of Business, 4(2), 82–94. https://doi.org/10.14710/dijb.4.2.2021.82-94
Kong, Y., Donkor, M., Musah, M., Nkyi, J. A., & Ampong, G. O. A. (2023). Capital Structure and Corporates Financial Sustainability: Evidence from Listed Non-Financial Entities in Ghana. Sustainability (Switzerland), 15(5). https://doi.org/10.3390/su15054211
Le, B. (2019), "Working capital management and firm’s valuation, profitability and risk: Evidence from a developing market", International Journal of Managerial Finance, Vol. 15 No. 2, pp. 191-204. https://doi.org/10.1108/IJMF-01-2018-0012
Maramis, J. B., Pungus, C. N., Maramis, J. B., & Karuntu, M. M. (2024). C . N . Pungus ., J . B . Maramis ., M . M . Karuntu Pengaruh Return On Asset , Non-Performing Loan , Loan To Deposit Ratio Terhadap Financial Sustainability Dengan Nilai Perusahaan Sebagai Variabel Intervening Pada Perusahaan Perbankan Yang Go Public The. 12(01), 295–306.
Marpaung, N., Yahya, I., & Sadalia, I. (2022). The Effect of Liquidity, Profitability, Capital Structure, Asset Growth, And Firm Size on the Firm Value with Dividend Policy as a Moderating Variable in Food and Beverage Sub-Sector of Manufacturing Companies Listed on the Indonesia Stock Exchange. International Journal of Research and Review, 9(7), 268–282. https://doi.org/10.52403/ijrr.20220731
Myers, S. C. (2001). Capital structure. In Journal of Economic Perspectives. https://doi.org/10.1257/jep.15.2.81
Nkuri Maimako, L., Razman Abdul Latiff, A., Fadzila Wan Yusoff, W., & Putra Malaysia, U. (2021). Ownership Structure and Financial Sustainability Evidence from Com-mercial Banks in Nigeria with International Authorization. International Business and Accounting Research Journal, 5(2), 106–117. http://journal.stebilampung.ac.id/index.php/ibarj
Nur Listiani, S. S. (2020). Sustainable Growth Rate: Between Fixed Asset Growth and Firm Value. Management and Economics Review, 1/2020, 147–159. https://doi.org/10.1300/J123v53n01_15
Nurvita, T. (2022). 541-Article Text-1461-2-10-20230304. Jurnal Manajemen Bisnis, 25(3), 283–297.
Oktoviyanti, O., & Etty Murwaningsari. (2023). Faktor - Faktor Yang Mempengaruhi Financial Sustainability Pada Sub-Sektor Perbankan. Jurnal Ekonomi Trisakti, 3(1), 927–942. https://doi.org/10.25105/jet.v3i1.15533
Osazefua Imhanzenobe, J. (2020). Managers’ financial practices and financial sustainability of Nigerian manufacturing companies: Which ratios matter most? Cogent Economics and Finance, 8(1). https://doi.org/10.1080/23322039.2020.1724241
Perera, H. S. C. (2021). Determinants of Financial Sustainability of the Microfinance Institutions in Sri Lanka. Kelaniya Journal of Management, 10(2), 91–116. https://doi.org/10.4038/kjm.v10i2.7694
Putri, L. A., & Ramadhan, M. I. (2023). Pengaruh Rasio Likuiditas dan Rasio Profitabilitas Terhadap Harga Saham. Owner, 7(2), 1113–1123. https://doi.org/10.33395/owner.v7i2.1344
Qaim, S., Zulqifar, B., Shahzad, A., & Salahuddin, T. (2021). Financial Sustainability and Firm Performance Impact on Stock. Ilkogretim Online - Elementary Education Online, 20(2), 572–577. https://doi.org/10.17051/ilkonline.2021.02.63
Ramadhani, A. P., & Shinta, P. S. (2024). Perspektif Perusahaan: Menilai Financial Sustainability melalui Analisis Rasio Likuiditas, Profitabilitas, dan Aktivitas. Edunomika, 8(4),1-13. http://dx.doi.org/10.29040/jie.v8i4.16052
Sarah Ahmed, & Tirmizi, S. M. A. (2020). Financial Sustainability and Financial Performance: The Moderating Role of Type of Ownership in Pakistan. Journal of Accounting and Finance in Emerging Economies, 6(4), 1181–1187. https://doi.org/10.26710/jafee.v6i4.1478
Sari, Y. F., & Ratnasih, C. (2022). Pengaruh Laba Bersih Setelah Pajak Dan Arus Kas Operasi Terhadap Arus Kas Masa Depan (Studi Kasus Pada Perusahaan Manufaktur Yang Terdaftar di Bursa Efek Indonesia). Jurnal Akuntansi FE-UB, 16(1), 19–38. www.idx.co.id
Setiono, Benny Agus. 2017. “Pengaruh Return on Asset (ROA) dan Return on Equity (ROE) Terhadap Capital Adequacy Ratio (CAR) Sektor Perbankan yang Terdaftar di Bursa Efek Indonesia”. Jurusan Ketatalaksanaan Pelayaran Niaga, Program Diploma Pelayaran, Universitas Hang Tuah. Surabaya. Jurnal Aplikasi Pelayaran dan Kepelabuhanan, Volume 7, Nomor 2, Maret 2017.
Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung : Alfabet
Sutikno, H. T. (2022). Financial Performance and Financial Sustainability: The Role of Institutional Ownership as Moderating Variable. Journal of Economics, Finance And Management Studies, 05(04), 1165–1172. https://doi.org/10.47191/jefms/v5-i4-25
Tjahjono, L. K., & Zubaidi, U. I. (2022). Faktor-Faktor yang Mempengaruhi Nilai Perusahaan Di Indonesia. E-Jurnal Akuntansi TSM, 2(3), 291–306. https://doi.org/10.34208/ejatsm.v3i1.1891
Trisnowati, Y., Hadiwidjaja, R. D., & Nurvita, T. (2021). The Consistency Of Islamic Corporate Financial Sustainability In Covid-19 Pandemic: An Empirical Analysis. AKRUAL: Jurnal Akuntansi, 12(2), 179. https://doi.org/10.26740/jaj.v12n2.p179-192
Wu, N., Zhao, J., Musah, M., Ma, Z., Zhang, L., Zhou, Y., Su, Y., Agyemang, J. K., Asiamah, J. A., Cao, S., Yao, L., & Li, K. (2023). Do Liquidity and Capital Structure Predict Firms’ Financial Sustainability? A Panel Data Analysis on Quoted Non-Financial Establishments in Ghana. Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15032240
Zabolotnyy, S., & Wasilewski, M. (2019). The Concept of Financial Sustainability Measurement: A Case of Food Companies from Northern Europe. Sustainability 11(18), DOI: 10.3390/su11185139
Zaymin, H., & Berakon, I. (2022). The Effect of Intangible Asset Value, Sustainable Growth Rate, Return on Equity, and Dividend Payout Ratio on Company Market Value. Journal of Accounting Inquiry, 1(1), 15–32.
Zulfikar, R. (2021). Peran Monitoring Terhadap Peningkatan Kinerja Keuangan di Industri Perbankan Indonesia. Jurnal Ekonomi, 26(1), 85. https://doi.org/10.24912/je.v26i1.719
