Abstract
Purpose: The purpose of the research is to determine the impact of asymmetric information on capital structure decisions.
 
 Theoretical framework: The perspective of the Pecking Order Theory (POT) suggests that managers are more informed about new investments than shareholders, making external financing issuance more prone to asymmetric information.
 
 Design/Methodology/Approach: The data was collected from companies in the mining or energy sectors listed on the Indonesia Stock Exchange during the period of 2007 to 2022, resulting in 647 observation units. Growth opportunities were proxied by total sales (Lang et al., 1996), and the debt ratio was used to measure capital structure decisions (Myers & Majluf, 1984). OLS regression was employed to determine the impact of growth opportunities on capital structure decisions.
 
 Findings: Annual sales are sufficiently increased, companies send positive signals, leading to the issuance of more debt than equity (Akerlof, 1970; S. Ross, 1977; S. A. Ross, 2005).. Companies follow the financing hierarchy when annual sales are lower than the signaling mechanism.
 
 Research, practical & social implications: Facts and empirical evidence have challenged the signaling and pecking order theories, leading to significant debates. The obligation of financial disclosure has resulted in a reduction of asymmetric information, consequently leading to an increase (decrease) in annual sales, which in turn causes a decrease (increase) in the debt ratio.
 
 Originality/Value: The value of the study was extended in Indonesia with abundant of natural resource (energy and mining).
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