Leverage and External Financing Boost Company Value, Innovation Falls Short.
The study looked at how leverage, innovation, cash flow, and external financing affect a company's value. Data from 30 manufacturing companies listed on the IDX from 2018-2019 were analyzed. The results showed that leverage and external financing have a significant impact on firm value, while innovation and cash flow do not. Increasing leverage and external financing can boost a company's value, signaling trust to external parties.