Shareholders and Firm Value for Manufacturing Companies Listed in Indonesia Stock Exchange

Muhammad Rifky Santoso; Iskandar Muda

doi:10.14414/jebav.v23i1.2171

Vol. 23 No. 1 (2020), Articles

Vol. 23 No. 1 (2020)

Shareholders and Firm Value for Manufacturing Companies Listed in Indonesia Stock Exchange

Articles

DOI: 10.14414/jebav.v23i1.2171

Published 30-07-2020

Muhammad Rifky Santoso⁺⁻
Iskandar Muda⁺⁻

Muhammad Rifky Santoso

Universitas Sumatera Utara

Iskandar Muda

Universitas Sumatera Utara

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Keywords

Institutional
foreign
shareholder
value

How to Cite

Santoso, M. R., & Muda, I. (2020). Shareholders and Firm Value for Manufacturing Companies Listed in Indonesia Stock Exchange. Journal of Economics, Business, and Accountancy Ventura, 23(1), 138-147. https://doi.org/10.14414/jebav.v23i1.2171

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Abstract

Domestic institutional shareholders and foreign shareholders differently influence firm value. Using panel data from the manufacturing company listed in the Indonesia Stock Exchange (IDX), from 2014 to 2017, and regression analysis, these types of shareholders have a positive and significant impact on the firm value with an inverted U-shaped. The influence of domestic institutional share-holders to the firm value is more significant than that of the foreign shareholder indicated by the coefficient value from the regression results. The best combination of shareholders to obtain the optimum firm value are the domestic institutional shareholder no more than 35.26 percent and the foreign shareholder no more than 47.61 percent. The greater share ownership will increase shareholder intervention and benefit the majority shareholder. Effective monitoring improvements are needed so that the majority of shareholder intervention can be reduced.

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Shareholders and Firm Value for Manufacturing Companies Listed in Indonesia Stock Exchange

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