Examining non-performing loans on corporate financial sustainability: Evidence from Indonesia

This study examines the relationships between economic conditions, lending interest risk (LIR), business risk (BUSR), non-performing loans (NPLs), and corporate financial sustainability (CFS). Quantitative analysis through a questionnaire reveals positive links between economic conditions and NPLs and LIR, emphasizing the economic environment's impact on financial institutions and lending sectors. Economic conditions also relate to BUSR, influencing business risk landscapes. LIR mediates the economic conditions-NPLs link, while BUSR does not mediate other relationships. These findings underscore the importance of proactive risk management, holistic risk assessment, and NPL mitigation strategies in ensuring financial stability and sustainability amid changing economic dynamics.