THE EFFECT OF OWNERSHIP CONCENTRATION ON FINANCIAL SUSTAINABILITY WITH BUSY DIRECTORS AS MODERATING VARIABLE

: This study aims to analyze the effect of cash flow rights and control rights on financial sustainability with busy directors as moderating variable in non-financial companies listed on Indonesia Stock Exchange for period 2017-2021. This study uses panel data regression to analyze the effect of cash flow rights and control rights on financial sustainability and examine whether busy directors moderate the effect of cash flow rights and control rights on financial sustainability. Research shows that cash flow rights have a positive and significant impact on corporate financial sustainability while control rights have no influence on corporate financial sustainability. This study also argues that busy directors can weaken the positive impact of cash flow rights on corporate financial sustainability but have no impact on the influence between control rights and corporate financial sustainability.


INTRODUCTION
Information technology, markets and the business environment are developing and competing rapidly in the current era of globalization.
To meet industrial developments, the management of a company must rethink the methods and business models that are most suitable to survive in their respective industries.This competitive environment creates critical issues for companies, especially in the context of ensuring their performance is sustainable (Roni et al., 2017).In addition, companies are also under pressure not only to succeed, but also to successfully maintain it in the future (Alshehhi et al., 2018).In addition, (Duantika, 2015) and (Lee et al., 2016) found that financial unsustainability The Effect of Ownership Concentration on Financial Sustainability with Busy Directors as Moderating Variable Page 982 Asian Journal of Engineering, Social and Health Volume 2, No. 9 September 2023 faced by construction companies was due to the large number of construction projects that were difficult to complete according to the original schedule, insufficient capital and inadequate cash sources.Therefore, companies must generate sustainable revenues to fund their business goals and avoid dependence on external financial support.
To achieve corporate sustainability in the future, it is necessary to implement good corporate governance which has been empirically proven to be useful for minimizing the risk of long-term failure and obtaining sustainable financial performance (Hersugondo et al., 2022) more attractive to investors (Aras & Crowther, 2008) and gain competitive advantage (World Business Council for Sustainable Development, 2012).Thus, it is very important to implement good and effective internal corporate governance mechanisms such as board structure, capital structure and incentives, concentrated ownership, and disclosure transparency to have a sustainable business (Muhlida, 2018).
Among the internal corporate governance mechanisms, one of them is concentrated ownership.According to research by (Duong et al., 2022), shareholders with concentrated ownership can overcome monitoring and supervision problems and have more voting rights on Board of Directors decisions, which leads to improved performance and financial sustainability for the company.Companies with a larger percentage of concentrated ownership are tightly controlled, which reduces agency problems, and can have a positive impact on the long-term sustainability of the company.
Recent studies have yielded mixed conclusions about the impact of concentrated ownership on financial performance and sustainability.Based on research by (Putri, 2019) on non-financial companies listed in Italy, France, Germany and Spain concluded that concentrated ownership is a good and effective internal governance mechanism and can result in improved company performance, especially in countries with weak legal systems .According to his research, in countries with weak legal systems, concentration of ownership in a few block holders can improve company performance because minority shareholders view the power of majority shareholders as a protective mechanism.So, in such cases, concentrated ownership can be seen as a protective tool used by minority shareholders.
The results of research conducted by (Duong et al., 2022) conclude that concentrated ownership has a positive and significant effect on sustainable finance in energy companies in Vietnam.Along with the observations of (Ahsan et al., 2021) who concluded that concentrated ownership can increase sustainable growth in companies in China.
Shareholders with large, concentrated ownership usually have more experience and skills in managing a business and can positively influence managers' decisions and the company's continued growth.
However, research by (Ahmad et al., 2020) on the top 200 public companies in Malaysia shows that ownership that is too concentrated can lead to decisions that do not satisfy all key shareholders and can reduce the level of corporate sustainability in the long term.Likewise, research conducted by (Ekawarna, 2023) argues that concentrated ownership was found to have a negative relationship and significant effect on the company's financial sustainability.According to the principle of costeffectiveness, majority shareholders will be more motivated to supervise management and maximize company value than minority shareholders.However, much higher concentrated ownership may serve the interests of majority shareholders at the expense of minority shareholders and other stakeholders.In addition, in China's public companies, especially in the energy sector, share ownership is always concentrated in the government and has little difference in levels.Thus, concentrated ownership has no effect on the company's short-term or longterm performance.
In addition, according to (Indriastuti, 2012), separation cash flow rights and control rights in concentrated ownership appears as a phenomenon because controlling shareholders can influence the company in the long term and short term throughcash flow rights andcontrol rights.
Due to the control exercised by controlling shareholders, these two rights can have different impacts on the company's sustainable financial capabilities.If controlling shareholders monitor managers, they can prevent their opportunistic behavior and thereby benefit minority shareholders (effect alignment).However, they may also pursue personal goals that deviate from those of minority shareholders, thereby expropriating minority shareholders' wealth (effect entrenchment).
Apart from concentrated ownership, other corporate governance structures such as the board of directors play a role in the company's sustainability performance.Several studies argue that holding multiple directorships can reduce the effectiveness of directors as company leaders and this can reduce company performance.A study by Najaf, Chin, and Najaf (2021) found that Fintech companies do not have anti-bribery policies and tend to have excessive CEO and director duality.When one individual serves as chairman and CEO simultaneously, conflicts of interest and higher agency costs will arise (Ehikioya, 2009).Additionally, centralized leadership authority can lead to management dominance, resulting in poor performance (Jensen & Meckling, 2019) ; (Fama & Jensen, 1983).Other empirical evidence (Nurkholiq et al., 2019) (Fatchan, 2021) also supports the same thing and confirms that the separation of the two positions of Chairman and CEO has proven to be beneficial in improving company performance.The results of ( Sen, 2019) also show that there is no relationship between CEO duality and sustainable company growth.
Due to the inconsistency of previous research, there is a gap for further research on the influence of concentrated ownership on sustainable finance and the authors were motivated to conduct this research.This research will follow the research of (Duong et al., 2022) which examines the impact of concentrated ownership on financial sustainability.However, in the research of (Duong et al., 2022) only measures the percentage of concentrated share ownership and does not look at motivation alignment and entrenchment for concentrated ownership.Therefore, this research will examine motivation alignment and entrenchment ownership is concentrated through separation cash flow rights and control rights controlling shareholders.Then in the research of (Duong et al., 2022) observations are limited to energy companies, while this research will trace the chain of ownership in non-financial public companies listed on the Indonesia Stock Exchange.
Apart from that, this research also adds a moderating variable of having multiple Directorship positions to find out whether the existence of dual Directorship positions strengthens or weakens the influence cash flow rights and control rights towards sustainable finance.To ensure the company can achieve its targets, the role of directors is very important.Monitoring and predicting business conditions internally and externally, creating policies and strategies to achieve organizational goals, and making decisions for the organization are the responsibilities of directors (Ruigrok et al., 2006).Strategic decision making and resource allocation are very important for directors, especially when it comes to company finances.In this way, the Board of Directors can influence the company's sustainable financial performance.Previous research has looked at the direct influence of having multiple positions as a Director on financial performance and sustainability, but no research has examined the indirect influence of having multiple Director positions on the influence cash flow rights and control rights towards financial sustainability.This research will examine whether holding multiple positions on the Board of Directors will moderate the influence cash flow rights and control rights towards sustainable finance.This research uses secondary data in the form of ownership structure and financial data originating from annual reports of non-financial companies listed on the Indonesia Stock Exchange (BEI) and eikon refinitive database2017-2021 period.This research does not include financial services companies as samples because the industry is specific and has strict regulations.

Research
The sample was selected based on predetermined criteria and data was obtained for 60 companies.Then the data to be observed is 60 companies multiplied by the 5 year research period, so the total is 300 observation data.From 300 observations it was reduced to 272 observations obtained after going through the outlier data detection stage using the method data visualization, namely with box plot and scatter plot.
Table 1 presents the dependent, independent, moderator and control variables used to estimate the regression equation.

RESULTS AND DISCUSSION
Based on the results of the Chow test, Hausman test and Langrange -Multiplier test, the Common Effect Model (CEM) was chosen as the best model.The results of the classical assumption test show that there is a heteroscedasticity problem, so estimates are carried out using CEM by using techniques robust to estimate parameters.
Table 2 shows the results of static panel data regression testing for the dependent variable SGR using the model common effect.According to the F test results, all variables have a significant influence on each other, which is indicated by a significance of 0.0000 < 0.05.The coefficient of determination (R2) in model 1 is 0.6203, indicating that 62.03% of the independent variables have the ability to explain the dependent variable, while the coefficient of determination (R2) in model 2 is 0.6222, indicating that 62.22% of the independent variables has the ability to explain the dependent variable.Source :data processing (2023) ***Significant at 1% level **Significant at the 5% level *Significant at the 10% level According to the probability results, all variables simultaneously have a significant influence on each other, which is indicated by a significance of 0.0000 < 0.05.
The partial test results in model 3 Table 3 above show that: 1. Cash flow rights (CF) has a positive and significant effect on sustainable finance (SGR), indicated by a p value of 0.024 < 0.05 and a positive regression coefficient of 0.0007.2. Control rights (CR) has a positive effect on sustainable finance (SGR), but the effect of CR on SGR is significant at the 10% level, indicated by a p value of 0.078 > 0.05 and a positive regression coefficient of 0.0007.3. Busy Director (BD) has a negative effect on sustainable finance (SGR), but the effect of BD on SGR is significant at the 10% level, indicated by a p value of 0.069 > 0.05 and a negative regression coefficient of -0.0254.4. Company performance (ROA) has a positive and significant effect on sustainable finance (SGR), indicated by a p value of 0.0000 <0.05 and a positive regression coefficient of 2.2338.The higher the company's performance as measured through ROA, the more the company's SGR will increase.4.12 above show that: 1. SGR is significantly influenced by Lag 1 SGR (previous period SGR) with a probability value of 0.048 < 0.05.The Lag 1 SGR coefficient value of -0.0189 explains that if there is an increase in SGR in the previous period by one unit, the SGR will decrease by 0.0189 units.2. Cash flow rights (CF) has a positive and significant effect on sustainable finance (SGR), indicated by a p value of 0.028 < 0.05 and a positive regression coefficient of 0.0013, so it can be concludedH1 is accepted.

Control rights (CR) has no influence on
sustainable finance (SGR), indicated by a p value of 0.352> 0.05 and a positive controlling shareholders of the company so that they have incentives to supervise the company well.

Influence Control rights Towards
Sustainable Financial Capability After the above tests, it was found that the variable control rights partially positive impact, but not significant on SGR.This shows that H2 is rejected, which means that control rights has no impact on the company's long-term financial capabilities.This result contradicts the research of Shleifer andVishny (1997) andYeh (2005), which found that when ownership reaches a certain point, controlling shareholders gain control rights almost full and driven to use control rights This is to generate personal profits, which can harm minority shareholders and threaten the sustainability of the company.Thus, it can be concluded that this research cannot prove this and does not prove the existence of motivation entrenchment to the company's controlling shareholders.

The Effect of Moderation of Multiple Directorships on Influence Cash Flow Rights Towards Sustainable Financial Capability
After carrying out the tests above, the results showed that partially the moderating variable of having multiple directorships weakened the influence cash flow rights on SGR with a significance level of 10%.This indicates that H3 is accepted at a significance level of 10% and it can be interpreted that the greater the ratio of dual positions of Directors, the weaker the positive influence between cash flow rights and the company's sustainable growth rate.This indicates that this research supports it busyness hypothesis namely, the busyness of directors due to holding multiple positions has a negative influence and can be detrimental to the company and weaken the effect alignment.The results of this research are in line with research conducted by Najaf, Chin, and Najaf (2020).Busy directors implies a weak governance system that can cause financial instability.(Hauser, 2018) in his research also argues that directors who hold concurrent positions may be too committed and too busy to fulfill their duties effectively so that it takes a lot of time and effort for them to gather information and make decisions.So from this research it can be concluded that having multiple directorships weakens the influence between cash flow rights and sustainable finance of the company.Therefore, to improve company sustainability, concurrent directorships should be minimized or avoided and this should be taken into consideration by regulators in its application to public companies in Indonesia.

The Effect of Moderation of Multiple
Directorships on Influence Control Rights Towards Sustainable Financial Capability After carrying out the tests above, the results showed that partially holding multiple directorships did not moderate the influence between control rights and SGR.This indicates that H4 is rejected and this research supports research conducted by (Mukherjee & Sen, 2019) which shows that there is no relationship between CEO duality and the company's sustainable growth.

CONCLUSION
Based on the test results of empirical data that has been collected and processed and analyzed, it can be concluded that Cash flow rights has a positive and significant effect on the company's sustainable finances as measured through Sustainable Growth Rate (SGR).These results support the existing hypothesis and previous research which is getting bigger cash flow rights will further improve the company's sustainable finances.
Control rights has no influence on the company's sustainable finances (SGR).The results of this study do not support the hypothesis and previous research where control rights has a negative and significant influence on the company's sustainable finances.Multiple directorships moderate the influence between cash flow rights and sustainable finance at a significance level of 10%.This research argues that having multiple directorships can weaken the positive impact cash flow rights towards the company's sustainable finances.Multiple directorships do not moderate the influence between control rights and sustainable finance.