Abstract

This study aims to determine the effect of cash flow and capital structure on company risk and performance. Cash flows are projected by operating cash flows and investing cash flows. Capital structure is projected by asset structure (SA) and firm size (Size). Projected risks are Capital Adequacy Ratio (CAR), Non Performing Loans (NPL) and Loan to Deposit Ratio (LDR). Performance is projected by Net Interest Margin (NIM), Net Profit Margin (NPM) and Return on Assets (ROA). The population of this research is all state-owned banking companies listed on the Indonesia Stock Exchange, with an observation period from 2008 to 2017. The sample selection in the study used the census method. Data analysis and hypotheses in this study were carried out with a structural equation modeling approach using the SmartPLS 3.0 program. The results showed that there was a significant relationship between capital structure and risk on company performance.

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