OWNERSHIP STRUCTURE AND FIRM VALUES: EMPIRICAL STUDY ON INDONESIA MANUFACTURING LISTED COMPANIES

Abukosim, Abukosim and Mukhtaruddin, Mukhtaruddin and ika sasti, ferina (2014) OWNERSHIP STRUCTURE AND FIRM VALUES: EMPIRICAL STUDY ON INDONESIA MANUFACTURING LISTED COMPANIES. Journal of Art Science & Commerce, v (4). pp. 1-14. ISSN 2223-4686, 2231-4172

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    Abstract

    The companies listed in Indonesia Stock Exchange generally have an organizational structure that separates owners and management. This situation may create a confalict between the owners and the management. However if they share a common goal, it can increase the companies’ values. This research is aimed at identifying the influence of ownership structure (managerial, institutional, foreign, and central) on the prices to book values (PBV). Understanding of the ownership structure is important for the control of a company operation. This research uses secondary data; it is based on the annual financial reports of Indonesia Stock Exchange in 2009 – 2011. A purposive sampling technique is applied, and 32 companies are selected as the sample. The data are analyzed using multiple linear regression and descriptive statistics. The research results show that the ownership structure significantly influences the firms values: (1) the managerial ownership does not have a positive influence on firm value, (2) the institutional ownership has a positive and significant influence on firm vlue, (3) the foreign ownership has a positive and significant influence on firm value, (4) the concentrated ownership does not have a positive influence on firm value. This research is limited to only the ownership structure as the factors influence of firm value

    Item Type: Article
    Uncontrolled Keywords: Agency Theory, Ownership Structure, Firm Values.
    Subjects: H Social Sciences > H Social Sciences (General)
    H Social Sciences > HB Economic Theory
    Divisions: Faculty of Economics > Department of Accounting
    Depositing User: Muchtar Indana
    Date Deposited: 12 Feb 2016 11:51
    Last Modified: 12 Feb 2016 11:51
    URI: http://eprints.unsri.ac.id/id/eprint/6077

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