Financial Sustainability in Emerging Markets: An Investigation of Determinants in the Pension Fund Companies

Abstract

The major goal of this article is to pinpoint the variables affecting the financial sustainability of pension fund companies that comprise emerging markets. The pension fund company data comes from Indonesia and was registered with the Indonesia Financial Service Authority (OJK) in 2020–2022. The sample was obtained using a purposive sampling method, which resulted in 14 pension fund companies. This quantitative research was done using a descriptive statistical approach. The data analysis technique used is regression analysis with Ordinary Least Square. The findings of this study support hypothesis 2 (H2), which states that there is a partial positive influence between the liquidity variable and finance sustainability. Meanwhile, efficiency (H1) and profitability (H3) do not affect financial sustainability. This study also reveals that the combination of efficiency, liquidity, and profitability variables simultaneously (H4) has a greater impact on financial sustainability than their partial effect on pension fund companies in Indonesia. Keywords: efficiency, financial sustainability, liquidity, pension fund companies, profitability