High leverage and low sales growth hurting real estate company values.
The study looked at how a company's debt, sales growth, and dividend decisions affect its overall value. They analyzed 20 real estate, property, and construction companies in Indonesia from 2016 to 2018. The results showed that having less debt, increasing sales, and giving out more dividends can boost a company's value by 58%. Companies in these sectors should focus on reducing debt, boosting sales, and increasing dividend payouts to shareholders to improve their overall value.