The Effect of ESG, Profitability, and Company Size on Capital Structure and Its Impact on Company Value

This study aims to analyze the influence of Environmental, Social, and Governance (ESG), profitability, and company size on capital structure and its impact on company value in the coal mining sector listed on the Indonesia Stock Exchange (IDX) during the period 2018–2024. This study uses a quantit...

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Main Authors: Rafly Amanda, Herlin Tundjung Setijaningsih
Format: Article
Language:English
Published: Universitas KH Abdul Chalim, Prodi Ekonomi Syariah 2025-08-01
Series:Indonesian Interdisciplinary Journal of Sharia Economics
Subjects:
Online Access:https://www.e-journal.uac.ac.id/index.php/iijse/article/view/7472
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author Rafly Amanda
Herlin Tundjung Setijaningsih
author_facet Rafly Amanda
Herlin Tundjung Setijaningsih
author_sort Rafly Amanda
collection DOAJ
description This study aims to analyze the influence of Environmental, Social, and Governance (ESG), profitability, and company size on capital structure and its impact on company value in the coal mining sector listed on the Indonesia Stock Exchange (IDX) during the period 2018–2024. This study uses a quantitative approach with the path analysis method to determine the direct and indirect effects between variables. Data were obtained from the annual reports and sustainability reports of ten companies selected through purposive sampling techniques. The results of the study indicate that profitability has a negative and significant effect on capital structure, while ESG and company size do not have a significant effect. Furthermore, profitability and company size have a significant effect on company value, while ESG and capital structure do not have a significant effect. The mediation test with the Sobel Test shows that capital structure does not mediate the effect of ESG, profitability, and company size on company value. This finding indicates that profitability is the main factor that directly influences company value, and capital structure is not an effective intermediary channel in the relationship between these variables.
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issn 2621-606X
language English
publishDate 2025-08-01
publisher Universitas KH Abdul Chalim, Prodi Ekonomi Syariah
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series Indonesian Interdisciplinary Journal of Sharia Economics
spelling doaj-art-2a3f643ff2fc4fb694830913bfa325742025-08-20T03:38:43ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2025-08-018310.31538/iijse.v8i3.7472The Effect of ESG, Profitability, and Company Size on Capital Structure and Its Impact on Company ValueRafly Amanda0Herlin Tundjung Setijaningsih1Universitas Tarumanagara, Jakarta Barat, IndonesiaUniversitas Tarumanagara, Jakarta Barat, Indonesia This study aims to analyze the influence of Environmental, Social, and Governance (ESG), profitability, and company size on capital structure and its impact on company value in the coal mining sector listed on the Indonesia Stock Exchange (IDX) during the period 2018–2024. This study uses a quantitative approach with the path analysis method to determine the direct and indirect effects between variables. Data were obtained from the annual reports and sustainability reports of ten companies selected through purposive sampling techniques. The results of the study indicate that profitability has a negative and significant effect on capital structure, while ESG and company size do not have a significant effect. Furthermore, profitability and company size have a significant effect on company value, while ESG and capital structure do not have a significant effect. The mediation test with the Sobel Test shows that capital structure does not mediate the effect of ESG, profitability, and company size on company value. This finding indicates that profitability is the main factor that directly influences company value, and capital structure is not an effective intermediary channel in the relationship between these variables. https://www.e-journal.uac.ac.id/index.php/iijse/article/view/7472ESGProfitabilityCompany SizeCapital StructureCompany ValuePath Analysis
spellingShingle Rafly Amanda
Herlin Tundjung Setijaningsih
The Effect of ESG, Profitability, and Company Size on Capital Structure and Its Impact on Company Value
Indonesian Interdisciplinary Journal of Sharia Economics
ESG
Profitability
Company Size
Capital Structure
Company Value
Path Analysis
title The Effect of ESG, Profitability, and Company Size on Capital Structure and Its Impact on Company Value
title_full The Effect of ESG, Profitability, and Company Size on Capital Structure and Its Impact on Company Value
title_fullStr The Effect of ESG, Profitability, and Company Size on Capital Structure and Its Impact on Company Value
title_full_unstemmed The Effect of ESG, Profitability, and Company Size on Capital Structure and Its Impact on Company Value
title_short The Effect of ESG, Profitability, and Company Size on Capital Structure and Its Impact on Company Value
title_sort effect of esg profitability and company size on capital structure and its impact on company value
topic ESG
Profitability
Company Size
Capital Structure
Company Value
Path Analysis
url https://www.e-journal.uac.ac.id/index.php/iijse/article/view/7472
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