Leverage and profitability boost firm value in consumer goods manufacturing sector.
The study looked at how debt, ownership by managers, and profits affect the value of companies in the consumer goods industry in Indonesia. They used data from financial reports of manufacturing companies from 2016 to 2020. The results showed that having more debt and higher profits can increase a company's value. However, the ownership by managers did not have a significant impact on the value of these companies. The study only focused on a specific sector, so there may be differences in other industries.