Risk And Return, Debt Policy, Agency Cost, Firm Value During Covid 19: A Case Study On Public Companies

ABSTRACT

The influence of risk and return on debt policy, agency costs, and firm value in Indonesian public companies is investigated in this study. The research is based on quarterly data from companies in the LQ45 index. There are 180 observations in all. Partial Least Squares Structural Equation Modeling is used to analyze the data (SEM-PLS). The data analysis demonstrates that the company's sales decreased during the COVID-19 pandemic, resulting in an increase in risk and a decline in the company's return. Even though the company's agency charges have failed to increase the sales value, the company's debt is nevertheless covered by its assets and capital. More findings will be presented in-depth. The findings might help researchers identify characteristics that impact business values. These characteristics may then be utilized to identify which strategies and policies a management team should employ to maintain a company's value.