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Journal : Jurnal Proaksi

ESG and Capital Structure: A Moderation Analysis of Firm Size Yenny Wati; Achmad Tavip Junaedi; Harry Patuan Panjaitan; Nyoto Nyoto; Astri Ayu Purwati
Jurnal Proaksi Vol. 12 No. 1 (2025): Januari - Maret 2025
Publisher : Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Cirebon

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32534/jpk.v12i1.6823

Abstract

Main Purpose - This study aims to determine the effect of ESG practices on a firm's capital structure, using firm size as a moderating variable.Method - This study utilizes moderated regression analysis conducted with Eviews. The research sample included businesses listed on the Indonesia Stock Exchange's IDXESGL index between 2020 and 2023.Main Findings - Companies with higher ESG scores typically have lower debt-to-asset and debt-to-equity ratios. Firm size can influence the relationship between ESG and capital structure. The relationship between ESG and capital structure has piqued the interest of investors and other stakeholders that can influence corporate decisions regarding debt and equity composition.Theory and Practical Implications - Companies increasingly recognize that sustainable business practices are not only ethically responsible but also financially profitable. Research can provide more precise policy suggestions to assist businesses in embracing strong ESG practices and enhancing their access to funding.Novelty - This study examines companies listed in Indonesia's ESG index, making the research findings more relevant to the local context, with firm size as a moderating variable.
Co-Authors Achmad Tavip Junaedi Adi, Roni Putra Akmal, Eri Amries Rusli Tanjung Andi Andi Andi Andi Andi Andi Wardana Anraini, Wenfi Ansorimal Anthony Anthony Aprilia, Bord Nandre Arifin Arifin Armawi Fauzi Nasution Asmara Hendra Komara Astri Ayu Purwati Bambang Rianto Rustam Cecilia, Cecilia Chandra, Jennifer Chandra, Stefani Dadi Komardi Dadi Komardi Dalil, M Daud Alfinas Della Chairini Ibrahim Devi Gusriani Dian Putri Kusuma Wardani Diana Gazali Dodi Sofyan Arief, Dodi Sofyan Dominicus Josephus Swanto Tjahjana Elsa Lasrya Fadrul, Fadrul Febriyanto Febriyanto Fifi Puspita Fitri Yani Fitri Yani Fransisca, Luciana Friska, Yuni Fyter Tanjaya Ginting, Yanti Mayasari Grece Valency Gusrio Tendra Handayani, Nani Hosan Hosan Hutahuruk, Marice Br Indri Yovita Intan Purnama Jahrizal Jessen Liyanto Juniar Vina Kevin Kevin Koto, Jaswar Kudri, Wan Muhamad Layla Hafni Lidia Gustiani Lubis, Wahyu May Chrisfin Lumenta, Marshel Yordan Mairia Mairia Marice Br Hutahuruk Martina Rapolo Lumbantoruan Megawati Pakpahan melani putri Merinayati Panjaitan Mimelientesa Irman Muhammad Awal Muhammad Ridwan Musa, Sulaiman Nicholas Renaldo Novita Yulia Putri Nur Istiana Nuriman M. Nur Nyoto Nyoto Nyoto, Nyoto Nyoto, Rebecca La Volla Olivia Dimaranty Peri Akri Pratomo Aji Saputro Prayetno, Muhammad Pringgo Purnama, Intan Putri, Novita Yulia Rahmad Hidayat Ramadhani Ramadhani Ramdani Ramdani Rizaldi Putra Rosa Linda Rusilawati, Ermina Sari Sari, Olivia Sheerad Sahid Silvia Sari Sitompul Sitompul, Silvia Sari Sri Indrastuti Sudarno Sudarno Sudarno Suhardjo Suhardjo Suhardjo Suharti Surya Safari SD Susanti, Roza Sri Suyono Suyono Suyono Syahriza, Denisa Tandy Sevendy Teddy Chandra Tengku Arief Lukman Th. A. Y. I, Yusnita Octafilia Umar Faruq Vanesa, Vanesa Veronica, Kristy Vinson, Vinson Wahid, Nabila Wahyudi, Langgeng Wiariningsih, Oktaviani Wijaya, Evelyn Wijaya, Febriana Wendy Wilda Susanti Win Handoko Winardi Winardi Yenny Wati Yusrizal Yusrizal