Abstract
This study aims to examine the effect of family ownership, debt policy on firm value with firm size as a control variable. The sample used was a family company listed on the Indonesia Stock Exchange from 2014 to December 2017. The type of this research was quantitative using Agency theory and Signaling Theory. Analysis technique with multiple regression analysis. The results showed that family ownership had a positive and significant effect on firm value, and debt policy had a negative and significant effect on firm value. While company size as a control variable in this study cannot control the relationship of the influence of family ownership and debt policy on firm value, in other words, company size as a control variable does not have a significant effect on the relationship of family ownership and corporate value policy debt.
Highlights
The main reason for the formation or establishment of a company is to increase shareholder income
While the family company debt policy calculated by Debt to Equity Ratio (DER) has a value between 0.22-3.73 with an average value of 1.1423 and a standard deviation of 0.87885
The size of the company as a control variable has a value between 6.71-7.96 with an average cost of 7.2795 and a standard deviation of 0.365555
Summary
The main reason for the formation or establishment of a company is to increase shareholder income. When the value of the company is maximized broadly it means maximizing profits as well This condition will consider the effect of time on money, as well as consider various risks to income and the presence of cash flowing in the future. Escalation of the value of companies is a long-term goal that is required by the company. Such increase in the price of the stock market, making investors to the company can be seen from the movement of shares of the company for the companies that go public. Often the value of a company or a company's stock price fluctuates within a certain period This is caused by both internal and external factors of the company
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
