The Effect Of Sustainable Performance On Capital Structure : Case Of High Tech Companies In Indonesia

  • Agus Triyani UNIVERSITAS WAHID HASYIM
  • Wulan Budi Astuti Universitas Wahid Hasyim
  • Suhita Whini Setyahuni Universitas Wahid Hasyim
  • Salsabilla Putri Universitas Wahid Hasyim
Abstract views: 536 , PDF downloads: 1051

Abstract

This study intends to examine the effect of sustainability performances on the capital structure of high-tech companies in Indonesia. High-tech companies faced uncertainty and high-risk in collecting capital due to market issues, a lack of resources, and also issues in technology implementations. Therefore, high-tech companies are facing sustainability performances issues that might affect capital structures. We analyzed 143 high-tech companies in Indonesia. We identified factors that affect capital structure of high-tech companies, such as firm performances, firm growth and CSR performances. Firm performances were measured by ROA and ROE, while firm performances were measured by asset growth and sales growth, and CSR performances were measured by employees, social, and environmental aspects. The result indicated that ROA and ROE were negatively impacted the capital structure of high-tech companies. Meanwhile, CSR performances and asset growth were positively affected the capital structure of the companies. In addition, sales growth has no effect on capital structure of high-tech companies. Our research used a new perspective of CSR performances that used more comprehensive indicators which are employees, social, and environmental individually. Our findings contributed to the development of legitimacy theory which focus on capital structure and sustainability aspects.

Keywords : Sustainability performances, Capital structure, CSR performances, High-tech company.

Downloads

Download data is not yet available.

References

Anggun, N., Listyorini, F., & Widati, W. (2015). Analisis Profitabilitas, Likuiditas, Pertumbuhan Penjualan, Struktur Aktiva Dan Kebijakan Dividen Terhadap Struktur Modal. Sendi, 9(2011), 640–649.
Ardalan, K. (2017). Capital structure theory: Reconsidered. Research in International Business and Finance, 39, 696–710. https://doi.org/10.1016/j.ribaf.2015.11.010
Bernardi, C., Stark, A. W. (2016). Environmental, social and governance disclosure, integrated reporting, and the accuracy of analyst forecasts. The British Accounting Review, 50(1)(1), 16–31. https://doi.org/10.1016/j.bar.2016.10.001
Fama, E. F., & French, K. R. (2003). The Capital Asset Pricing Model: Theory and Evidence. Ssrn, 18(3), 25–46. https://doi.org/10.2139/ssrn.440920
Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64. https://doi.org/10.1016/j.gfj.2017.03.001
Grabinska, B., Kedzior, D., Kedzior, M., & Grabinski, K. (2021). The impact of csr on the capital structure of high-tech companies in Poland. Sustainability (Switzerland), 13(10), 1–20. https://doi.org/10.3390/su13105467
Haseeb, M., Hussain, H. I., Ślusarczyk, B., & Jermsittiparsert, K. (2019). Industry 4.0: A solution towards technology challenges of sustainable business performance. Social Sciences, 8(5). https://doi.org/10.3390/socsci8050154
Kareem AL Ani, M. (2021). Corporate social responsibility disclosure and financial reporting quality: Evidence from Gulf Cooperation Council countries. Borsa Istanbul Review, 21, S25–S37. https://doi.org/10.1016/j.bir.2021.01.006
Le, D., Anh, T., & Gan, C. (2020). The impact of the COVID-19 lockdown on stock market performance : evidence from Vietnam. https://doi.org/10.1108/JES-06-2020-0312
Miloud, T. (2022). Corporate governance and the capital structure behavior: empirical evidence from France. Managerial Finance, 48(6), 853–878. https://doi.org/https://doi.org/10.1108/MF-12-2021-0595
Qiu, Y., Shaukat, A., & Tharyan, R. (2016). Environmental and social disclosures: Link with corporate financial performance. British Accounting Review, 48(1), 102–116. https://doi.org/10.1016/j.bar.2014.10.007
Qiu, Y., Shaukat, A., Tharyan, R., Court, S., & Drive, R. (2014). Environmental and Social Disclosures : Link with Corporate Financial Performance Environmental and Social Disclosures : Link with Corporate Financial Performance. The British Accounting Review, 48(1), 102–116.
Reilly, Frank K & Brown, K. C. (2012). Investment Analysis & Portfolio Management (Tenth Edit). Cengage Learning.
Rezaee, Z., Dou, H., & Zhang, H. (2020). Corporate social responsibility and earnings quality: Evidence from China. Global Finance Journal, 45(May), 100473. https://doi.org/10.1016/j.gfj.2019.05.002
Rezaee, Z., & Tuo, L. (2017). Voluntary disclosure of non-financial information and its association with sustainability performance. Advances in Accounting, 39(May 2016), 47–59. https://doi.org/10.1016/j.adiac.2017.08.001
Spitsin, V., Vukovic, D. B., Spitsina, L., & Özer, M. (2021). The impact of high-tech companies’ performance and growth on capital structure. Competitiveness Review, 00927. https://doi.org/10.1108/CR-03-2021-0042
Sunaryo. (2015). Corporate Social Responsibility (CSR) Dalam Perspektif Pembangunan Berkelanjutan. Masalah Hukum, 44(1).

PlumX Metrics

Published
2023-01-03
Section
Articles