A Study on the Effects of Firm’s Investments and Foreign Ownership on the Firm Value

Abstract: The main goal of the company is to maximize prosperity for shareholders, this can be achieved by maximizing the value of the company. This research was conducted to determine the factors that influence the value of the company to be studied are Corporate Social Responsibility and Tax Avoidance. The moderating variable in this study is Foreign Ownership. The sample of this research is manufacturing companies whose shares are listed on the Indonesia Stock Exchange for the period of 2016-2018 using purposive sampling method. While the analytical method used is the classic assumption test and hypothesis testThe results of this study indicate that corporate social responsibility has no influence on firm value, and tax avoidance has an influence on firm value. Foreign ownership is not able to be a moderating variable that strengthens the relationship between corporate social responsibility and corporate value while foreign ownership is able to be a moderating variable that strengthens the relationship between tax avoidance and firm value. Keywords: Firm value, Corporate Social Responsibility, Tax Avoidance and Foreign Ownership Abstrak: Tujuan utama perusahaan adalah untuk memaksimalkan kemakmuran bagi pemegang saham, hal ini dapat dicapai dengan memaksimalkan nilai perusahaan. Penelitian ini dilakukan untuk mengetahui faktor-faktor yang mempengaruhi nilai perusahaan yang akan diteliti adalah Corporate Social Responsibility dan Tax Avoidance. Variabel Moderating pada penelitian ini adalah Kepemilikan Asing.Sampel penelitian ini adalah perusahaan manufaktur yang sahamnya terdaftar di Bursa Efek Indonesia periode 2016-2018 dengan menggunakan metode purposive sampling. Sedangkan metode analisis yang digunakan adalah uji asumsi klasik dan uji hipotesis. Hasil penelitian ini menunjukkan bahwa corporate social responsibility tidak memiliki pengaruh terhadap nilai perusahaan, dan tax avoidance memiliki pengaruh terhadap nilai perusahaan. Kepemilikan asing tidak mampu menjadi variabel moderating yang memperkuat hubungan antara corporate social responsibility dengan nilai perusahaan sedangkan Kepemilikan asing mampu menjadi variabel moderating yang memperkuat hubungan antara tax avoidance dengan nilai perusahaan. Kata Kunci: Nilai Perusahaan, Corporate Social Responsibility, Tax Avoidance dan Kepemilikan Asing.

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The Effect of Managerial Ownership, Institutional Ownership, and Foreign Ownership on Firm Value: An Empirical Study on Manufacturing Companies

Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study ◽

10.5220/0007019806790685 ◽

2018 ◽

Author(s):

Prajnya Paramita Artantiwi ◽

. Hamidah

Keyword(s):

Empirical Study ◽

Firm Value ◽

Institutional Ownership ◽

Foreign Ownership ◽

Managerial Ownership ◽

Manufacturing Companies

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Ownership Structure and Firm Value of Quoted Consumers Goods Firms in Nigeria

Journal of Accounting and Strategic Finance ◽

10.33005/jasf.v3i2.65 ◽

2020 ◽

Vol 3 (2) ◽

pp. 214-228

Author(s):

Godwin Emmanuel Oyedokun ◽

Shehu Isah ◽

Niyi Solomon Awotomilusi

Keyword(s):

Ownership Structure ◽

Consumer Goods ◽

Firm Value ◽

Stock Exchange ◽

Sampling Technique ◽

Institutional Ownership ◽

Foreign Ownership ◽

Ownership Concentration ◽

Annual Reports ◽

Managerial Ownership

This study examined the ownership structure's effect on the firms' value of quoted manufacturing firms (consumer goods) in Nigeria for 2010-2018. The total numbers of quoted consumer goods firms in the Nigeria stock exchange as of 31st December 2018 were twenty-one (21). A judgmental sampling technique was used to sample nineteen (19) consumer goods firms for the study. The study sought to examine whether ownership structure proxy by managerial Ownership, Institutional Ownership, foreign Ownership, and ownership concentration affect firms' values of quoted consumer goods in Nigeria. Data were collected from secondary sources through the annual reports and accounts of sampled consumer goods firms in Nigeria. The study adopted a panel regression technique as a tool of analysis. The result showed a negative effect of managerial ownership on firm value. While institutional Ownership, foreign Ownership, and Ownership concentration all positively affect the firm value of consumer goods firms in Nigeria. Therefore, the study recommends that the numbers of shares held by management should be reduced to increase the firm value of the listed consumer goods companies in Nigeria.

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Impact of foreign ownership on capital structure and firm value in emerging market: case of Amman Stock Exchange listed firms

Afro-Asian J of Finance and Accounting ◽

10.1504/aajfa.2017.10003866 ◽

2017 ◽

Vol 7 (1) ◽

pp. 35

Author(s):

Ahmad Y. Khasawneh ◽

Kareem S. Staytieh

Keyword(s):

Capital Structure ◽

Firm Value ◽

Stock Exchange ◽

Emerging Market ◽

Foreign Ownership ◽

Listed Firms ◽

Amman Stock Exchange

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Fenomena Faktor yang Mempengaruhi Nilai Perusahaan

Jurnal Ilmiah Akuntansi dan Bisnis ◽

10.24843/jiab.2019.v14.i02.p06 ◽

2019 ◽

pp. 208

Author(s):

I Gusti Ayu Eka Damayanthi

Keyword(s):

Stock Prices ◽

Firm Value ◽

Stock Exchange ◽

Foreign Ownership ◽

Manufacturing Companies ◽

Company Value ◽

Good Corporate Governance ◽

Linear Regression Technique ◽

Csr Disclosure ◽

A Company

This study explains the phenomenon of factors that influence company value. Based on the phenomenon and associated with the theory, the factors that influence company value are social responsibility disclosure (CSR), good corporate governance (GCG) and foreign ownership (KA). The success of a company is often associated with stock prices and company value. The stock prices for companies that have good value tend to be high both short and long term. The research objective is to provide empirical evidence that CSR disclosure factors, GCG and KA, influence the value of a company. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange in 2015–2017. The samples were manufacturing companies located on the Indonesia Stock Exchange selected using a non-probability sampling method, specifically purposive sampling. Multiple linear regression technique was used for data analysis. Based on the results of the research, the factors that influence the value of the company are disclosure of CSR, GCG, and KA; and they have a positive effect on firm value. Keywords: Corporate Value, CSR, GCG, Foreign Ownership.

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PENGARUH OWNERSHIP STRUCTURE DAN CORPORATE PERFORMANCE TERHADAP FIRM VALUE

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2016.v20.i3.2075 ◽

2017 ◽

Vol 20 (3) ◽

pp. 388

Author(s):

Makhdalena Makhdalena

Keyword(s):

Data Analysis ◽

Ownership Structure ◽

Firm Value ◽

Corporate Performance ◽

Stock Exchange ◽

Secondary Data ◽

Foreign Ownership ◽

Public Ownership ◽

Government Ownership ◽

Positive Effect

Research on the ownership structure (foreign ownership, government ownership and public ownership), corporate performance and firm value has been carried out by researchers, but the results have not been consistent. Thus researchers interested in studying the structure of the ownership (foreign ownership, government ownership and public ownership), corporate performance and firm value. The purpose of this study was to examine and analyze the effect of ownership structure (foreign ownership, government ownership and public ownership) and corporate performance to firm value. The population of this research is the company listed in the Indonesia Stock Exchange that have complete data on foreign ownership, government ownership, public ownership, corporate performance and firm value for six consecutive years (2008-2013). Data type of variable of this research is secondary data obtained with techniques derived from ICMD documentation. Data analysis in this research is using regression. The results showed that foreign ownership, government ownership and public ownership had no effect on firm value and corporate performance positive effect on firm value.

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Parabolic Effect Between Managerial Ownership And Firm Value To Control Agency Conflict

Jurnal Manajemen ◽

10.24912/jm.v23i3.569 ◽

2019 ◽

Vol 23 (3) ◽

pp. 355

Author(s):

Margarita Ekadjaja, Halim.P. Siswanto, K. Nuringsih, R. Amelinda

Keyword(s):

Firm Value ◽

Stock Exchange ◽

Institutional Ownership ◽

Foreign Ownership ◽

Managerial Ownership ◽

Agency Conflict ◽

Financial Firms ◽

Panel Data Regression ◽

Data Regression ◽

Regression Test

This research attempts to place the ownership structure, which includes managerial ownership, institutional ownership, foreign ownership, and concentration ownership as determinants to predict value of the firm. Managerial ownership will be identified and analyzed on its possibility to form the inverse U-shape relationship pattern, therefore the test on parabolic effect between managerial ownership using Tobin’s Q can be conducted. Meanwhile, such test cannot be conducted to the other three independent variables. This test was applied to non-financial firms whose shares were listed on Indonesia Stock Exchange (IDX) during 2000-2017. The result of panel data regression test concludes that managerial ownership can predict value of the firm, while it is not for institutional ownership and foreign ownership.

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