ANALYSIS OF THE INFLUENCE OF INSTITUTIONAL OWNERSHIP, MANAGERIAL OWNERSHIP, AND OWNERSHIP STRUCTURE ON COMPANY FINANCIAL PERFORMANCE: A CASE STUDY ON MANUFACTURING COMPANIES IN INDONESIA

Abstract

This study aims to analyze the influence of institutional ownership, managerial ownership, and ownership structure on the financial performance of manufacturing companies in Indonesia. Regression analysis method is employed to examine the relationship between these variables and financial performance, measured through financial ratios such as Return on Assets (ROA) and Return on Equity (ROE). Data is collected from manufacturing companies listed on the Indonesia Stock Exchange during a specific period. The results of the analysis indicate a significant impact of institutional ownership on company financial performance. Higher institutional ownership tends to correlate positively with better financial performance. Conversely, the influence of managerial ownership is not as significant on financial performance. However, ownership structure proves to be a crucial factor; more diversified ownership patterns tend to be positively associated with financial performance. In the context of manufacturing companies in Indonesia, this research provides insights into the factors that can affect corporate financial performance. The implication is that increasing institutional ownership and adopting a diversified ownership structure can be beneficial strategies for companies to achieve better financial performance. Nonetheless, company management needs to consider the complex dynamics of the market and business environment while making decisions regarding ownership and financial performance