Institutional ownership boosts firm value and reduces debt in Indonesian companies.
The study looked at how institutional ownership affects a company's value and debt structure in Indonesia. They found that institutional ownership can increase a company's value by monitoring effectively, which reduces problems between shareholders and management. However, it can also lead to less debt in a company due to better communication, which can affect the company's structure. Having more debt in a company can actually increase its value by helping to control problems between shareholders and management.