Financial Sustainability Of Microfinance Institutions In Kuningan Regency

Introduction: This study investigates the influence of Financial Reporting Quality, Internal Control Effectiveness, and Financial Risk Behavior on the Financial Sustainability of Microfinance Institutions (MFIs) in Kuningan Regency from an accounting perspective. Method; Using a quantitative approa...

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Main Authors: Amir Hamzah, Yudi Febriansyah
Format: Article
Language:English
Published: Universitas Yudharta Pasuruan 2025-07-01
Series:Sketsa Bisnis
Subjects:
Online Access:https://jurnal.yudharta.ac.id/v2/index.php/SKETSABISNIS/article/view/6260
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author Amir Hamzah
Yudi Febriansyah
author_facet Amir Hamzah
Yudi Febriansyah
author_sort Amir Hamzah
collection DOAJ
description Introduction: This study investigates the influence of Financial Reporting Quality, Internal Control Effectiveness, and Financial Risk Behavior on the Financial Sustainability of Microfinance Institutions (MFIs) in Kuningan Regency from an accounting perspective. Method; Using a quantitative approach, data were collected from 116 respondents—including directors, managers, and finance heads of MFIs—through structured questionnaires and analyzed using Partial Least Squares - Structural Equation Modeling (PLS-SEM). Results; The results show that Financial Reporting Quality and Internal Control Effectiveness positively and significantly affect financial sustainability, while Financial Risk Behavior has a significant negative impact, with the model demonstrating strong predictive power (R² = 0.984), thus emphasizing the role of accounting quality and rational decision-making in sustaining MFIs. Conclusion; These findings support the theoretical frameworks of Agency Theory and Behavioral Accounting Theory and suggest the importance of extending research beyond Kuningan Regency to include other influencing variables such as regulatory support or technological advancement.
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institution Kabale University
issn 2356-3672
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language English
publishDate 2025-07-01
publisher Universitas Yudharta Pasuruan
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spelling doaj-art-f55fd6e24eb34de8b590a98c65744b522025-08-20T03:56:04ZengUniversitas Yudharta PasuruanSketsa Bisnis2356-36722460-09892025-07-01121Financial Sustainability Of Microfinance Institutions In Kuningan Regency Amir HamzahYudi Febriansyah0Universitas Kuningan Introduction: This study investigates the influence of Financial Reporting Quality, Internal Control Effectiveness, and Financial Risk Behavior on the Financial Sustainability of Microfinance Institutions (MFIs) in Kuningan Regency from an accounting perspective. Method; Using a quantitative approach, data were collected from 116 respondents—including directors, managers, and finance heads of MFIs—through structured questionnaires and analyzed using Partial Least Squares - Structural Equation Modeling (PLS-SEM). Results; The results show that Financial Reporting Quality and Internal Control Effectiveness positively and significantly affect financial sustainability, while Financial Risk Behavior has a significant negative impact, with the model demonstrating strong predictive power (R² = 0.984), thus emphasizing the role of accounting quality and rational decision-making in sustaining MFIs. Conclusion; These findings support the theoretical frameworks of Agency Theory and Behavioral Accounting Theory and suggest the importance of extending research beyond Kuningan Regency to include other influencing variables such as regulatory support or technological advancement. https://jurnal.yudharta.ac.id/v2/index.php/SKETSABISNIS/article/view/6260Financial Reporting QualityInternal ControlFinancial Risk BehaviorAccountingMicrofinance Institutions
spellingShingle Amir Hamzah
Yudi Febriansyah
Financial Sustainability Of Microfinance Institutions In Kuningan Regency
Sketsa Bisnis
Financial Reporting Quality
Internal Control
Financial Risk Behavior
Accounting
Microfinance Institutions
title Financial Sustainability Of Microfinance Institutions In Kuningan Regency
title_full Financial Sustainability Of Microfinance Institutions In Kuningan Regency
title_fullStr Financial Sustainability Of Microfinance Institutions In Kuningan Regency
title_full_unstemmed Financial Sustainability Of Microfinance Institutions In Kuningan Regency
title_short Financial Sustainability Of Microfinance Institutions In Kuningan Regency
title_sort financial sustainability of microfinance institutions in kuningan regency
topic Financial Reporting Quality
Internal Control
Financial Risk Behavior
Accounting
Microfinance Institutions
url https://jurnal.yudharta.ac.id/v2/index.php/SKETSABISNIS/article/view/6260
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