Balancing Profit and Planet: How ESG Criteria Are Reshaping Capital Structure in Indonesia

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Quantitative analysis reveals ESG performance impacts capital structure decisions, highlighting reduced debt financing.

Higher ESG performance leads to reduced reliance on debt financing, favoring equity and retained earnings.
Companies with strong ESG practices show healthier financials and lower environmental risks, enhancing credit ratings.
Integration of ESG factors supports long-term value creation and attracts ESG-focused investments.
The findings support Indonesia's commitment to achieving the Sustainable Development Goals by 2030.

Nunik Dwi Kusumawati (2024) studied this question.

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