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ABSTRACT:

The company's efforts to improve financial performance through maximizing profits are not accompanied by the company's concern for the impacts caused, so there are regulations that require companies to commit to carrying out sustainable business practices and care about environmental issues by implementing green financial management. The indepen dent variables in this study are green financial management, firm size, and capital structure, while the dependent variable in this study is financial performance. This study aimed to test and analyze the effect of 1) green financial management on financial performance, 2) firm size on financial performance, and 3) capital structure on financial performance. The population in this study are all companies incorporated in the SRI-KEHATI index for 2017-2022. Sampling was carried out using the purposive sampling method. The data analysis method is a multiple linear regression analysis process using SPSS 26 software. The results showed that partially green financial management and capital structure significantly positively affect financial performance. Firm size has an insignificant effect on financial performance.

KEYWORDS:

Capital Structure, Financial Performance, Firm Size, and Green Financial Management

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