Financial, operational, and sustainability capabilities on the progress of mining companies in the Indonesia stock exchange

  • Romi Anton Student of Master of Management, Faculty of Economics, Sriwijaya University, Indonesia
  • Mohamad Adam Master of Management, Faculty of Economics, Sriwijaya University, Indonesia
  • Isnurhadi Isnurhadi Master of Management, Faculty of Economics, Sriwijaya University, Indonesia
  • Marlina Widiyanti Master of Management, Faculty of Economics, Sriwijaya University, Indonesia
Keywords: financial leverage, operating leverage, growth opportunity, company value

Abstract

This study aimed to understand the influence of financial, operational, and sustainable development of the mining business on the Indonesia Stock Exchange market for the period 2016-2019. To understand this effect, we have reviewed 49 mining companies listed on the Indonesia Stock Exchange for the period with a sample of 11 companies that met their financial reporting criteria in the same period. The results of multiple linear regression analysis indicate that financial leverage and growth opportunity have a significant negative effect on the value of sustainability next to the mining companies listed on the Stock Exchange. Operating leverage has a positive and significant effect on the value of sustainability in the mining companies we studied. The results of this study are expected to properly consider the use of debt to the company because it can adversely affect the value of the company itself if its use is excessive.

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Published
2020-08-23
How to Cite
Anton, R., Adam, M., Isnurhadi, I., & Widiyanti, M. (2020). Financial, operational, and sustainability capabilities on the progress of mining companies in the Indonesia stock exchange. International Journal of Business, Economics & Management, 3(1), 157-164. https://doi.org/10.31295/ijbem.v3n1.164