Abstract
This study aims to examine the effect of ownership structure on firm value with financial decisions and investment decisions as intervening variables. This study uses secondary data from financial reports. The population used in this study are manufacturing companies in the consumer goods sector which listed on Indonesian stock exchange 2013-2019 of 35 (thirty five) companies. While the research sample was taken using certain criteria.The number of samples obtained are 7 (seven) companies. Data processing techniques using smartPLS 3.0. The results state: 1) ownership structure has a significant effect on firm value, 2) ownership structure has a significant effect on funding decisions, 3) ownership structure has a significant effect on investment decisions, 4) funding decisions has a significant effect on firm value, 5) investment decisions has a significant effect on firm value, 6) funding decisions mediate the effect of ownership structure on firm value, 7) investment decisions mediate the effect of ownership structure on firm value. The limitation of the results of this study is that the results of this study cannot be generalized because the objects used are limited to manufacturing companies in the consumer goods sub-sector.
Highlights
This study aims to examine the effect of ownership structure on firm value with financial decisions and investment decisions as intervening variables
Agency theory explains the relationship finance operational activities, funds can be contract between the principal with his agent that obtained from owner's capital, or retained earn- can lead to conflict agency because of the large ings, and can from outside company in form amount of excess cash flow that could affect of loans or debt and through the sale of shares to investment decisions and firm value, so the investors or owner's capital
Et al (2016), stated that structure funding decisions in property companies listed on ownership has significant effect on dividend Indonesian stock exchange
Summary
The globalization requires every organi- investment decision and ownership structure of zation to be able to compete with other the companies affected by agency theory, whereas organizations. Mossadak, et al (2016), stated that structure funding decisions in property companies listed on ownership has significant effect on dividend Indonesian stock exchange. The results of the study are Herdianti & Husaini (2018) stated that instituteonal ownership has a significant effect on invest- (2017) stated that funding decisions has a signiment decisions. This is because investments will ficant effect on firm value. Thanatawee that investment decisions has a significant effect (2014) stated that ownership structure has a on firm value.
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