Abstract
This study aims to examine and analyze the mediating effect of firm performance on ownership structure on firm value. The independent variables are ownership concentration and managerial ownership. The dependent variable is firm value, while the mediating variable is firm performance. The research sample is mining sector companies listed on the IDX in 2016-2018. Data analysis uses Eviews 10. The results show that ownership concentration positively affects company performance, while the opposite results are found in managerial ownership. Then, direct managerial ownership and firm performance positively affect firm value, while ownership concentration does not affect firm value. Firm performance mediates the relationship between ownership concentration and firm value, but firm performance fails to mediate the relationship between managerial ownership and firm value.
Highlights
The company's main objective is to prosper the owners and shareholders by increasing the value of the company (Iswajuni, Manasikana, & Soetedjo, 2018)
This study focuses on the mediating effect of company performance as a connecting variable between ownership structure and company value
Data is from financial and annual reports obtained from the Indonesia Stock Exchange website: www.idx.co.id .This research population is mining sector companies listed on the Indonesia Stock Exchange from 2016-2018
Summary
The company's main objective is to prosper the owners and shareholders by increasing the value of the company (Iswajuni, Manasikana, & Soetedjo, 2018). Investors tend to invest in companies that have high and stable company value. Companies with high value have good performance and have guaranteed business continuity in the future. This business's continuity is essential for investors because they want a stable return that tends to increase. Investors always value a company based on its share price. The higher the company's stock price, the more investors will give a higher assessment. Company value is a comparison tool for investors to invest or invest. The Investment Coordinating Board (BKPM) is a non-departmental government agency in Indonesia tasked with formulating government policies in the investment sector, both domestic and foreign
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