ANALYSIS OF COSTS AND CAPITAL STRUCTURE IN COMPANY FINANCIAL PERFORMANCE: AN EMPIRICAL STUDY IN THE BANKING INDUSTRY
Keywords:
Cost Analysis, Capital Structure, Financial Performance, Banking IndustryAbstract
This research aims to conduct an empirical analysis of the influence of costs and capital structure on the financial performance of companies in the banking industry. This literature review includes various theories and previous research related to cost management, capital structure, and its influence on bank profitability and other financial indicators. In this analysis, financial data from several commercial banks listed on the stock exchange over a certain time period are collected and analyzed using statistical methods to assess the relationship between these variables. This research finds that efficient operational costs have a significant impact on improving financial performance, while optimal capital structure influences the company's ability to generate maximum profitability for shareholders. The use of debt as part of the capital structure has been proven to provide leverage but also adds financial risk. This research provides new insights into how bank management can balance efficient cost management and capital structure utilization to improve financial performance. The results of this research are expected to contribute to strategic decision making in banking managerial practice and provide guidance for further research in this field.
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