Skip to main content Skip to main navigation menu Skip to site footer
Published: 2024-02-25

Decoding Corporate Financial Health: A Comprehensive Quantitative Analysis of Annual Accounts and Financing Strategies

International Accounting Program, Faculty of Economics and Business, Universitas Syiah Kuala
Financial Performance Financing Strategies Quantitative Analysis Annual Accounts



This study navigates the intricate landscape of corporate finance within publicly traded Indonesian companies, aiming to comprehensively grasp their financial health. A holistic approach merges quantitative analyses of annual accounts with qualitative insights from corporate finance, focusing on unraveling the nuanced relationship between financing techniques and financial performance indicators, considering diverse variables such as industry characteristics and company sizes. Employing robust methodologies including regression analysis, correlation analysis, and panel data analysis, the study uncovers significant trends. Noteworthy findings include a burgeoning reliance on debt financing, the emergence of hybrid financing structures, and industry-specific variations in financing preferences. The positive correlation between equity financing and profitability aligns seamlessly with agency theory, underlining its potential for aligning management interests with long-term value creation. Meanwhile, the nuanced impact of debt financing emphasizes the imperative for companies to delicately balance the benefits and risks associated with financial leverage. Implications derived from the research extend practical advice to industry practitioners, emphasizing the need for tailored financing strategies, strengthened corporate governance, and industry-specific considerations. Policymakers are encouraged to play a pivotal role in fostering equity market development, implementing responsible regulatory measures, and championing transparency in financial reporting. This research not only contributes to the existing financial literature by enriching academic discourse but also provides actionable insights for businesses navigating the intricate terrain of corporate finance in Indonesia.


  1. Jackson, A. B. (2021, December 7). Financial statement analysis: a review and current issues. China Finance Review International.
  2. Chen, Z., & Xie, G. (2022, October). ESG disclosure and financial performance: Moderating role of ESG investors. International Review of Financial Analysis, 83, 102291.
  3. Taswin, M., Judijanto, L., Sudarmanto, E., & Astuti, A. K. (2023, November 23). Analysis of the Impact of Green Investment on Corporate Financial Sustainability in West Java. West Science Interdisciplinary Studies, 1(11), 1138–1145.
  4. Coelho, R., Jayantilal, S., & Ferreira, J. J. (2023, January 17). The impact of social responsibility on corporate financial performance: A systematic literature review. Corporate Social Responsibility and Environmental Management, 30(4), 1535–1560.
  5. Lee, S. W. A., Rodrigs, M., Nathan, T. M., Rashid, M. A., & Al-Mamun, A. (2023). The Relationship Between the Quality of Sustainability Reporting and Corporate Financial Performance: A Cross-Sectional and Longitudinal Study. Australasian Business, Accounting and Finance Journal, 17(2), 38–60.
  6. Lee, M. T., & Raschke, R. L. (2023, January). Stakeholder legitimacy in firm greening and financial performance: What about greenwashing temptations?☆. Journal of Business Research, 155, 113393.
  7. Bătae, O. M., Dragomir, V. D., & Feleagă, L. (2021, March). The relationship between environmental, social, and financial performance in the banking sector: A European study. Journal of Cleaner Production, 290, 125791.
  8. Bruna, M. G., Loprevite, S., Raucci, D., Ricca, B., & Rupo, D. (2022, June). Investigating the marginal impact of ESG results on corporate financial performance. Finance Research Letters, 47, 102828.
  9. Ahmad, N., Mobarek, A., & Roni, N. N. (2021, January 1). Revisiting the impact of ESG on financial performance of FTSE350 UK firms: Static and dynamic panel data analysis. Cogent Business & Management, 8(1).
  10. Uyar, A., Kuzey, C., Kilic, M., & Karaman, A. S. (2021, March 25). Board structure, financial performance, corporate social responsibility performance, CSR committee, and CEO duality: Disentangling the connection in healthcare. Corporate Social Responsibility and Environmental Management, 28(6), 1730–1748.
  11. Gao, Y., Nie, Y., & Hafsi, T. (2023, July 13). Not all stakeholders are equal: Corporate social responsibility variability and corporate financial performance. Business Ethics, the Environment & Responsibility, 32(4), 1389–1410.
  12. Partalidou, X., Zafeiriou, E., Giannarakis, G., & Sariannidis, N. (2020, August 28). The effect of corporate social responsibility performance on financial performance: the case of food industry. Benchmarking: An International Journal, 27(10), 2701–2720.
  13. Barauskaite, G., & Streimikiene, D. (2020, September 16). Corporate social responsibility and financial performance of companies: The puzzle of concepts, definitions and assessment methods. Corporate Social Responsibility and Environmental Management, 28(1), 278–287.
  14. Sannikova, I. N., & Prikhodko, E. A. (2019, December 31). The Company’s Financial Health Is The Basis Of Sustainable Development. The European Proceedings of Social and Behavioural Sciences.
  15. Bartolacci, F., Caputo, A., & Soverchia, M. (2019, December 19). Sustainability and financial performance of small and medium sized enterprises: A bibliometric and systematic literature review. Business Strategy and the Environment, 29(3), 1297–1309.
  16. Franco, S., Caroli, M. G., Cappa, F., & Del Chiappa, G. (2020, July). Are you good enough? CSR, quality management and corporate financial performance in the hospitality industry. International Journal of Hospitality Management, 88, 102395.
  17. Al-ahdal, W. M., Alsamhi, M. H., Tabash, M. I., & Farhan, N. H. (2020, January). The impact of corporate governance on financial performance of Indian and GCC listed firms: An empirical investigation. Research in International Business and Finance, 51, 101083.
  18. Busch, T., Bassen, A., Lewandowski, S., & Sump, F. (2020, July 2). Corporate Carbon and Financial Performance Revisited. Organization & Environment, 35(1), 154–171.
  19. Sihombing, R., G. Maffett, M., & Nur Ilham, R. (2022, October 24). FINANCIAL RATIO ANALYSIS AND COMMON SIZE TO ASSESS FINANCIAL PERFORMANCE AT PT ASTRA AGRO LESTARI TBK AND ITS SUBSIDIARIES. Journal of Accounting Research, Utility Finance and Digital Assets, 1(2), 139–147.
  20. Hamid, N., & Purbawangsa, I. B. A. (2022, December). Impact of the board of directors on financial performance and company capital: Risk management as an intervening variable. Journal of Co-Operative Organization and Management, 10(2), 100164.
  21. Zhen, X., Shi, D., Li, Y., & Zhang, C. (2020, January). Manufacturer’s financing strategy in a dual-channel supply chain: Third-party platform, bank, and retailer credit financing. Transportation Research Part E: Logistics and Transportation Review, 133, 101820.
  22. Adamkaite, J., Streimikiene, D., & Rudzioniene, K. (2022, June 28). The impact of social responsibility on corporate financial performance in the energy sector: Evidence from Lithuania. Corporate Social Responsibility and Environmental Management, 30(1), 91–104.
  23. Weston, P., & Nnadi, M. (2021, February 16). Evaluation of strategic and financial variables of corporate sustainability and ESG policies on corporate finance performance. Journal of Sustainable Finance & Investment, 13(2), 1058–1074.
  24. Qadir, S. A., Al-Motairi, H., Tahir, F., & Al-Fagih, L. (2021, November). Incentives and strategies for financing the renewable energy transition: A review. Energy Reports, 7, 3590–3606.

How to Cite

Cut Nadira Putri Kamal. (2024). Decoding Corporate Financial Health: A Comprehensive Quantitative Analysis of Annual Accounts and Financing Strategies. Business and Investment Review, 2(1), 108–119.