The Effect of Ownership Concentration on Financial Sustainability With Busy Directors as Moderating Variable

Authors

  • Triza Noviasari Faculty of Economics and Business, Universitas Indonesia
  • Cynthia Afriani Utama Faculty of Economics and Business, Universitas Indonesia

DOI:

https://doi.org/10.46799/ajesh.v2i9.131

Keywords:

Cash Flow Rights, Control Rights, Busy Directors, Financial Sustainability

Abstract

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.

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Published

2023-09-25

Issue

Vol. 2 No. 9 (2023): Asian Journal of Engineering, Social and Health

Section

Articles

License

Copyright (c) 2023 Triza Noviasari, Cynthia Afriani Utama

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