Debt-heavy companies in Indonesia see lower value, growth and profit.
The study looked at how a company's debt, growth, and profits affect its value on the stock market. They studied manufacturing companies in Indonesia from 2017 to 2019. The results showed that having more debt compared to equity can lower a company's value. Company growth didn't have a big impact on value. Making more profit didn't always mean a higher value for the company. But when you look at debt, growth, and profits together, they do affect a company's value.