The effect of ownership structure on company value in non-financial issuers, 2016-2020

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Adim Imaduddin
https://orcid.org/0009-0001-8596-1286
Ernie Hendrawaty
Sri Hasnawati

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This study aims to determine the effect of institutional, foreign, and individual ownership and corporate value on non-financial issuers in 2016-2020. The method used was quantitative research using the correlation method. The data analysis technique employed was multiple regression analysis and testing of classical assumptions and hypotheses. The result showed that there was a significant influence between ownership structure and firm value. Based on the results of previous calculations, it can be seen that the value of the F-statistic was 35.186 with the probability value of the F-statistic being 0.000. Since the prob value of the F-statistic was 0.000<0.05 then H0 was rejected, meaning that together the ownership structure has a significant effect on firm value. The study concluded that Institutional Ownership, Foreign Ownership and Individual Ownership have a significant effect on Firm Value. An increase in institutional ownership will reduce the value of the company and vice versa. Foreign ownership has a positive effect on firm value on the IDX which has been proven empirically and supports the statements of previous researchers. Individual ownership has a negative effect on company value on the IDX, as has been shown in previous studies, where the higher the individual ownership, the lower the company value.

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Imaduddin, A., Hendrawaty, E., & Hasnawati, S. (2023). The effect of ownership structure on company value in non-financial issuers, 2016-2020 . Economía & Negocios, 5(1), 3–18. https://doi.org/10.33326/27086062.2023.1.1632
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