Improving firm size and profitability boosts company value in Indonesia.
The study looked at how the size and profitability of financial companies in Indonesia affect their value over three years. They found that when companies are more profitable and larger, their value tends to increase. However, the capital structure of a company does not play a significant role in this relationship. In simpler terms, bigger and more profitable companies are likely to be worth more, but how they finance their operations doesn't have a big impact on their overall value.