The Influence of Capital Structure and Financial Performance on Financial Sustainability and Its Implications on Firm Value

Abstract

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