Factors influencing capital stucture on F&B company which implementing sustainable environmental green practise in Indonesia

¹ Universitas Gadjah Mada, Manajemen, Fakultas Ekonomi dan Bisnis, Yogyakarta, Indonesia
² Universitas Jenderal Soedirman, Manajemen, Fakultas Ekonomi dan Bisnis, Indonesia

^* Corresponding author: riodhani@unsoed.ac.id

Abstract

The application of green practices in food and beverage service aims to create a clean environment. Green practice can be defined as a practice that consists of using energy and water efficiently, recycling, sustainable food, reducing waste and pollution. Not all F&B sector companies in Indonesia that are listed on the stock exchange implement Sustainable Environmental Green Practices. This article will look at factorsprofitability, non-debt tax shields, company’s size, and asset tangibility on capital structure pada Perusahaan F&B yang menerapkan Sustainable Environmental Green Practise This study uses annual data from food and beverage companies which implementing Sustainable Environmental Green Practise in Indonesia obtained from Indonesia Stock Exchange. The companies are cautiously selected with purposive sampling method. This research reveals that profitability and non-debt tax shields exhibit a notable negative influence on capital structure, whereas company size shows a positive effect. Intriguingly, the findings indicate that asset tangibility does not exert a significant impact on the capital structure. To conduct our analysis, we used the panel data regression method in EViews. Our research provides valuable insights for managers of food and beverage companies in Indonesia, assisting them in making informed decisions on their capital structure.