Indonesia Conference Directory

Companies in achieving sustainability status need to establish a sustainability strategy known as a trade off strategy because it can identify the relationship between the results obtained from improvement of environmental performance and financial performance. The sustainable value approach is built on the premise that companies need economic and environmental resources to create high economic performance. The measure of success in sustainable development is not solely based on growth in financial performance, but through efforts by companies to improve environmental performance through appropriate financing decisions. The purpose of this study is to prove empirically the influence of environmental performance, external financing decisions, external financing decisions through short-term debt, external financing decisions through long-term debt, and external financing decisions on sustainable financial development. The benefit of this research is that it can make a positive contribution to the company to apply the form of operational activity accountability in environmental aspects and emphasize the right financing decisions for the company in funding its long-term operating activities. This research samples focus on mining companies listed on the Indonesia Stock Exchange in the 2015-2018 period with meeting certain criteria. The results obtained in this study are that environmental performance has a positive effect on sustainable financial development, external financing decisions do not affect sustainable financial development, external financing decisions through short-term debt do not affect sustainable financial development, external financing decisions through long-term debt have no effect towards sustainable financial development, and internal financing decisions do not affect sustainable financial development.