Influence Leverage, Cost Environment, and Performance Environment to Financial Performance

Abstract

The company's financial performance is essential for investors to invest in a company. Apart from having to generate maximum profits, the company has obligations to maintain the sustainability of its business in the future. The more the finance company, the more interested investors are in making investments. Therefore, financial performance is the key to obtaining source financing to maintain the continuity of company activities. Study This aims To test the influence of leverage, cost environment, and environmental performance on the company's financial performance in the Company Industry Base and Chemistry, Which is registered in Exchange Effect Indonesia (IDX) year 2018- 2022. This research uses signal theory and stakeholder theory. This method is quantitative, with the data source from the company website, www.idx.co.id, and Proper Ministry of the Environment and Forestry (menlhk.go.id), sampling obtained with purposive sampling. Based on the results, testing can conclude that leverage and cost environment are influential, negative, and significant to performance finance, whereas performance environment does not affect financial performance.