The Impact of Capital Structure and Environmental Performance on Firm Size

Anggelica Yufa Kristianto, Marisa Julia Ananda, Nela Nehayati, Anna Sumaryati

Abstract


The purpose of this study is to examine the impact of capital structure and environmental protection on firm size based on financial performance and audit quality of Indonesian coal mining companies. The data used in this study is the annual report of 21 coal mining companies listed on the Indonesian Stock Exchange from 2017 to 2021. The analysis method used to test the research hypothesis is multiple regression analysis. The results show that capital structure has a significant negative effect on firm size while environmental performance has a significant positive effect on firm size. Furthermore financial results and audit quality have no significant effect on firm size. The conclusion of this study is that in addition to a well-managed capital structure companies should also focus on social responsibility as a factor that affects company size. The study also recommends that regulators and investors consider environmental protection when investing in coal mining companies in Indonesia.

Keywords: Capital structure, environmental performance, company size, financial

 performance, audit assessment

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References


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