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Abstract

Based on IMF publications (2022), Indonesian companies have a risky debt level that may cause bankruptcy, so companies are required to make leverage adjustments to return the debt to its optimal level. In recent years, corporate sustainability performance (CSP) practices have been proven to improve performance and overcome financial problems such as debt by integrating sustainability aspects into business processes. Based on stakeholder theory and trade-off theory, this study aims to examine the effect of CSP on leverage adjustment and the role of competitive advantage, equity mispricing, profitability, and firm size in moderating this relationship. This study used a sample of 40 listed companies that registered on the Indonesia Stock Exchange and implemented CSP from 2019 to 2022. By using multiple linear regression analysis and moderated regression analysis, this study shows that companies with CSP can increase company leverage adjustments. Meanwhile, company characteristics such as equity mispricing and company size have proven to strengthen this relationship, but competitive advantage and profitability do not influence it. The results of this study provide theoretical and practical benefits by enhancing knowledge about CSP and leverage adjustments, as well as enabling managerial and regulatory parties to make the right decisions.

Bahasa Abstract

Berdasarkan publikasi IMF (2022), perusahaan Indonesia memiliki tingkat utang yang berisiko mengakibatkan kebangkrutan, sehingga perusahaan dituntut untuk melakukan leverage adjustment agar dapat mengembalikan komposisi utang pada titik optimalnya. Dengan berlandaskan pada stakeholder theory dan trade-off theory, penelitian ini bertujuan menguji pengaruh CSP terhadap leverage adjustment, beserta peran competitive advantage, equity mispricing, profitabilitas, dan ukuran perusahaan dalam memoderasi hubungan tersebut. Penelitian ini menggunakan sampel 40 perusahaan yang terdaftar di Bursa Efek Indonesia dan menerapkan CSP selama tahun 2019 sampai dengan tahun 2022. Dengan menggunakan analisis regresi linear berganda dan moderated regression analysis, penelitian ini menunjukkan CSP dapat mempermudah leverage adjustment perusahaan. Adapun karakteristik perusahaan seperti equity mispricing dan ukuran perusahaan terbukti memperkuat hubungan tersebut, namun competitive advantage serta profitabilitas terbukti tidak mampu mempengaruhi hubungan tersebut.

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