The Influence of Environment Management Control System on Capital Structure Decisions and Their Implications on Company Performance

Abstract

The study aims to examine the Environmental Management Control System (EMCS) effect on Capital Structure Decisions and Company Performance of the coal mining industry in Indonesia. This study used quantitative research with a sample size of 35 companies and Partial Least Square (PLS) for testing the hypothesis. The EMCS and Capital structure Decisions, directly and indirectly, influence company performance. Performance improvement will be even better if the EMCS can encourage sound capital structure decisions. This finding has implications for the management of the coal mining industry in Indonesia to improve company performance by encouraging Capital structure Decision through the EMCS implementation.