Abstract
The research objective to assess the influence of corporate governance and family ownership on firm value non-financial firms listed in Indonesia. The board and ownership structure were representing corporate governance characteristics. The board structure consists of commissioners, directors and independent commissioners, while the structure of ownership consists of institutional, public and managerial ownership. This research used data non-financial firms listed in Indonesia Stock Exchange period 2008 to 2018. Using purposive sampling as technique’s to filter the samples and panel data analysis method. The results of research state that corporate governance (board and ownership structure) and family ownership simultaneously have a significant influence on firm value. Partially, independent commissioners, board of directors, public and institutional ownership have a significant influence on firm value. Meanwhile the board of commissioners, managerial and family ownership have no significant influence on firm value.
Highlights
A company is founded to achieve long-term goals, to maximize the wealth of shareholders
From results, partially, only four variables from board and ownership structure, such as independent commissioner, number of director, public and institutional ownership have a significant influence on firm value, overall corporate governance and family ownership have a significant effect on firm value
The public ownership have a small percentage in the ownership structure but have a significant effect to increase firm value
Summary
A company is founded to achieve long-term goals, to maximize the wealth of shareholders. Price water house Coopers (PwC) Indonesia [6], stated that a firm is referred to as a family firm if the founder who acquires the firm (or his family) has 25 % rights to the company through investment and there is at least 1 member of family in board (management). The research results of this study can present the evidence of the influence of corporate governance and family ownership on the firm’s value of non-financial firms listed on the Indonesia Stock Exchange in the period 2008 to 2018. The results of the study can be used to implement better corporate governance for non-financial firms that have family ownership in the firm. Investors can used the information to take better investment decision and will open new horizons in research for researcher, especially the issues about corporate governance, family ownership and firm value
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