The Effect of Long-Term Debt, Environmental Cost, and Firm Growth on EBITDA of Mining Companies
Keywords:
Long Term Debt; Environmental Cost; Firm Growth; EBITDAAbstract
This study examines the effects of long-term debt, environmental cost, and firm growth on earnings before interest, taxes, depreciation, and amortization (EBITDA) as a proxy for operating performance in Indonesian mining firms. Using secondary data from published financial statements, the population comprises all mining companies listed on the Indonesia Stock Exchange (IDX) over 2021–2024, covering 65 firms per year and yielding a balanced panel of 260 firm-year observations. Panel regression is applied, and the Chow test supports the fixed-effects model (p < 0.001). The results indicate that long-term debt is negatively and statistically significantly associated with EBITDA, suggesting that higher leverage may weaken operating performance through greater financial burdens. Environmental cost shows a positive and statistically significant relationship with EBITDA, implying that environmental expenditures may function as long-term investments that enhance operational efficiency and support corporate sustainability. Firm growth is statistically insignificant, indicating that expansion does not necessarily translate into immediate operating gains in this capital-intensive sector. The model is jointly significant (F-test) and demonstrates strong explanatory power (R² = 0.871942). These findings highlight the importance of balancing financing decisions, environmental spending, and growth strategies to strengthen operating performance and long-term sustainability
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