THE IMPACT OF CORPORATE GOVERNANCE BASED ON NATURAL ENVIRONMENTAL SUSTAINABILITY, INTELLECTUAL CAPITAL, AND RISK MANAGEMENT ON PROFITABILITY AND FINANCIAL SUSTAINABILITY

This research examines the direct impact of corporate governance based on natural environmental sustainability, intellectual capital, and risk management on profitability and financial sustainability. Empirical data was collected from 307 Heads of Village Credit Institutions (LPD) throughout Bali, whose role is to manage natural resources and their conservation by providing important financial support to local farmers and entrepreneurs. Research using questionnaires was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The research results show that corporate governance, intellectual capital, and risk management increase profitability. Finally, the test results prove that profitability mediates the influence of corporate governance, intellectual capital, and risk management on financial sustainability. These findings imply that corporate governance, intellectual capital, risk management, and profitability are significant predictors of achieving financial sustainability in Village Credit Institutions. Therefore, corporate governance, intellectual capital, risk management, and profitability are needed to achieve financial sustainability and help the government implement future policies for the sustainability of Village Credit Institutions. Their contributions include the development of sustainable agricultural practices and community development projects related to preserving the natural environment and promoting environmentally friendly and sustainable agricultural methods, all of which contribute to preserving the natural environment and biodiversity.