Financial Performance: The Role of Capital Structure, Leverage, Green Accounting, and Independent Board Moderation in Indonesian LQ45 Listed Companies

Abstract

Purpose: This study analyzes the effect of Capital Structure, Leverage, and Green Accounting on financial performance, with the Independent Board as a moderating variable in LQ45 companies listed on the Indonesia Stock Exchange during 2021–2024.

Design/methodology/approach: This research uses a quantitative approach with secondary data obtained from annual reports and financial statements. The sample was selected through purposive sampling, resulting in 117 observations after outlier elimination. Data were analyzed using Moderated Regression Analysis (MRA) with SPSS.

Findings: The results show that Capital Structure and Green Accounting have no significant effect on financial performance, while Leverage has a negative and significant effect. The Independent Board weakens the effect of Capital Structure, strengthens the effect of Leverage, and does not moderate Green Accounting's effect on financial performance.

Practical implivations: These findings provide practical insights for corporate managers, investors, and policymakers in improving financial performance through effective leverage management and strengthening the role of the Independent Board in corporate governance.

Originality/value: This study contributes to the literature by integrating Capital Structure, Leverage, Green Accounting, and the Independent Board into a single empirical model, offering evidence from LQ45 companies listed on the Indonesia Stock Exchange.

Paper type: Empirical in nature.