Profitability and liquidity negatively impact debt ratio of Malaysian plantation companies.
The article explores what factors affect how plantation companies in Malaysia borrow money. They looked at data from 30 companies over 5 years. They found that how much cash a company has, how profitable it is, and how much physical assets it owns can all impact how much debt it takes on. Bigger companies tend to have more debt. Profitability is the most important factor in determining how much debt a company has.