“…This will make investors careful to invest in companies with high leverage ratios because high leverage ratios indicate a high investment risk. Increased leverage can provide two kinds of signals, namely good news and bad news Fostel & Geanakoplos, (2012), Mardiyati, (2012), Suharsono, (2018), and Wulandari & Wiksuana, (2017. Increased leverage shows bad news if managers make increased leverage out of necessity and not for efficiency reasons.…”