<![CDATA[This study aims to investigate how profitability, women’s representation on boards of commissioners and directors, and political connections influence the financial leverage of manufacturing companies listed on the Indonesia Stock Exchange (IDX). Indonesia’s manufacturing sector faces significant financial risks, with about 52% of companies having Debt-to-Equity Ratios above 1.0, indicating a heavy reliance on external financing. Furthermore, inconsistent findings in previous research across different contexts highlight the need for deeper investigation, as the relationships between these factors may depend on industry-specific conditions. Using a quantitative and explanatory research design, this study analyzes panel data from 115 manufacturing companies on the IDX between 2018 and 2022 with a Common Effect Model in Stata MP 17. The results show that profitability has a significant negative effect on leverage, while women’s representation on boards and political connections have negative but not statistically significant effects. By resolving these inconsistencies, this research provides valuable and practical insights for companies, investors, and scholars who want to better understand the complex factors that shape financial leverage decisions in Indonesia’s manufacturing sector.]]>
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