<![CDATA[Purpose: This study aims to explore the factors that influence the capital structure of consumer non-cylical companies listed on the Indonesia Stock Exchange (IDX) for the period 2017-2023 which is influenced by financial flexibility and earning volatility. Methodology/approach: This research uses a quantitative approach with the Generalized Method of Moments (GMM) method using the tool e-views 12. Using purposive sampling technique to collect observation data of 53 companies and obtain 371 samples. GMM method is applied to analyze the dynamic relationship between firm characteristics and capital structure decisions, by considering the possibility of endogeneity in the model. Findings: This study found that financial flexibility variables have a positive effect on capital structure, while Earning volatility has no effect but has a positive and negative impact on the capital structure of consumer non-cyclical companies listed on the Indonesia Stock Exchange for the period 2017-2023. Practical implications: These findings can help managers make more informed decisions regarding capital structure, particularly in aligning financing strategies with firm characteristics and market conditions. Originality/value: This study provides new insights into the capital structure choices of Indonesian non-cyclical consumer firms, with the application of the GMM method to address endogeneity in the analysis, which has not been widely studied in the context of emerging markets]]>
