The Effect of Effective Tax Rate, Moral Hazard, and Firm-Specific Determinants on Capital Structure

This research aims to examine the effectiveness of Effective Tax Rate, Firm Size, Profitability, Non-Debt Tax Shield, and Moral Hazard toward Capital Structure in oil, gas, and coal subsector firms listed on the Indonesian Stock Exchange during the period 2016-2024. The study employs a quantitative research design using panel data regression analysis. The Fixed Effect Model is selected based on panel data model selection tests and analyzed using EViews 12. The empirical findings reveal that only Profitability has a statistically significant negative effect on Capital Structure. Meanwhile, Effective Tax Rate, Firm Size, Non-Debt Tax Shields, and Moral Hazard do not exhibit statistically significant effects. These results suggest that internal financing capacity plays a more dominant role than tax incentives, firm scale, alternative tax shields, or agency-related considerations in determining capital structure decisions within the observed subsector. These research findings suggest that the effect of internal financing capacity dominates the effect of tax and agency-related considerations in determining Capital Structure within the Indonesian energy subsector. This study is limited by its sector-specific focus and restricted observation period.