Managerial Ownership Research Articles

Corporate Social Responsibility And Managerial Ownership: Their Impact On Firm Value In The Indonesian Mining Sector Through Profitability's Mediating Role

The mining industry sector contributes significantly to a country's revenue, with numerous mining companies operating in the sector. However, the large number of mining companies poses a risk to the surrounding natural environment. Companies that prioritize environmental responsibility can improve their public image, which ultimately affects the company's value. This study aims to analyze the role of profitability in mediating the relationship between corporate social responsibility and managerial ownership on firm value. The study sample includes 10 mining companies listed on the IDX for a period of 5 years (2015-2019), with a total of 50 financial statements. Using purposive sampling and path analysis, this study concludes that corporate social responsibility has a positive and insignificant effect on profitability; managerial ownership has a significant positive effect on profitability; corporate social responsibility has a significant positive effect on firm value; managerial ownership has a positive but insignificant effect on firm value; profitability has a significant positive effect on firm value; corporate social responsibility mediated the relationship between profitability and firm value, with a significant positive effect; and managerial ownership mediated the relationship between profitability and firm value, with a positive but insignificant effect.

The effect of financial performance and corporate governance on tax avoidance with environmental performance as a moderator

This study aims to examine the influence of financial performance and corporate governance on tax avoidance, with environmental performance acting as a moderating variable. Tax avoidance is designated as the dependent variable, while profitability (ROA), managerial ownership, the composition of independent commissioners, and auditor quality are regarded as independent variables. Corporate Social Responsibility (CSR) is recognized as both an indicator of environmental performance and a moderating variable. The study employs a quantitative methodology utilizing purposive sampling, focusing on banking entities listed on the Indonesia Stock Exchange (IDX) during the period from 2021 to 2023. Data analysis is executed through multiple regression, T-tests, and F-tests using SPSS Version 25. The findings reveal that financial performance (profitability) and environmental performance (CSR) exert a significant negative impact on tax avoidance. Furthermore, CSR enhances the effect of profitability on tax avoidance. Conversely, managerial ownership, the size of the independent board of commissioners, and auditor quality do not exhibit a significant influence on tax avoidance. The research also indicates that environmental performance does not moderate the effects of managerial ownership, the size of the independent board of commissioners, and auditor quality on tax avoidance. The implications of this study highlight the necessity of integrating CSR into business strategies to foster ethical tax practices. These findings contribute to the broader discourse on tax compliance and corporate governance, offering valuable insights for stakeholders aiming to reconcile financial goals with social responsibilities.

Determinants of Earnings Management: The Moderating Role of Firm Size

This study aims to provide empirical evidence on the impact of financial distress, financial ratios, and corporate governance on earnings management, using company size as a moderating variable. This study focuses on real estate, construction, and property companies listed on the Indonesia Stock Exchange (IDX) between 2020 and 2022, with a sample of 54 companies selected through purposive sampling. Data analysis was conducted using multiple linear regression to test the direct effect of independent variables on earnings management and interaction test to evaluate the moderating role of firm size. The research findings show that financial distress affects earnings management, which suggests that companies under financial stress are more likely to rely on earnings management to present favorable earnings performance. In contrast, financial ratios do not affect earnings management, which suggests that well-performing firms are less likely to engage in the practice. Good corporate governance, represented by the proportion of independent directors, audit committee and managerial ownership, also affects earnings management. In addition, firm size moderates the relationship between financial distress and earnings management, with larger firms showing a greater tendency towards earnings management when facing financial challenges. These results underscore the importance of considering financial conditions and firm size when monitoring earnings management, as larger firms may be more prone to earnings management practices under certain conditions.

The effect of corporate governance, financial distress, tax incentives, and firm size on accounting conservatism in the Indonesia banking sectors

The objective of this study is to examine the effect of corporate governance, financial distress, tax incentives, and firm size on accounting conservatism in the banking sector in Indonesia. Corporate governance mechanisms in this study are represented by managerial ownership and institutional ownership, reflecting the role of governance structures in influencing accounting practices. The study analyzes a total of 75 data units derived from 25 banking companies listed on the Indonesia Stock Exchange (BEI) during the 2021-2023 period, selected through purposive sampling. This research employs a quantitative research method and relies on secondary data sources, such as annual reports and company financial statements. The analysis technique used is multiple linear regression technique using Stata version 13. The results of the study prove that there is a negative significant effect of financial distress and tax incentives, but there is no significant effect of managerial ownership, institutional ownership, bank size on accounting conservatism.

Faktor-Faktor yang Mempengaruhi Nilai Perusahaan: Perspektif Kebijakan Dividen, Kepemilikan Manajerial, dan Ukuran Perusahaan (Studi Empiris pada Perusahaan Sektor Consumer Non-Cyclicals yang Terdaftar di Bursa Efek Indonesia Tahun 2023)

This study aims to examine the effect of dividend policy, managerial ownership, and company size on company value. This study was conducted on non-cyclical consumer sector companies listed on the Indonesia Stock Exchange in 2023, with a population of 64 companies using saturated sampling techniques. The research method uses a quantitative approach through multiple linear regression analysis, with secondary data sourced from the financial statements of companies listed on the Indonesia Stock Exchange. The data analysis process was carried out using SPSS software. The results of the study indicate that dividend policy, managerial ownership, and company size significantly have a positive effect on company value. For further research, it is recommended to use a longitudinal approach to understand how the relationship between dividend policy, managerial ownership, and company size and company value changes over time.

The impact of CSR disclosure, audit committees, independent commissioners, and managerial ownership on corporate value: An empirical study of basic materials sector companies listed on the Indonesian stock exchange

Negative sentiments stemming from declining aluminum exports, coal price fluctuations, a global economic slowdown, and environmental pressures influence investors' perceptions of investing in the raw materials sector. CSR disclosure and implementing Good Corporate Governance principles through audit committees, independent commissioners, and managerial ownership are vital strategies for enhancing investor confidence and long-term corporate value. This study investigates the effect of CSR disclosure and corporate governance attributes on corporate value, with Return on Assets as the control variable. It utilizes secondary data from annual and sustainability reports, focusing on companies in the basic materials sector listed on the Indonesia Stock Exchange from 2020 to 2023. Quantitative methods are employed, with panel data regression analysis. The results indicate that, partially, CSR disclosure has a negative and significant impact on corporate value, whereas the proportion of the audit committee exhibits a positive and significant effect. The frequency of audit committee meetings and the proportion of independent commissioners do not demonstrate a significant impact. Audit committee competence positively and significantly influences corporate value, while managerial ownership adversely and significantly affects it. Collectively, these variables influence corporate value. These findings provide valuable insights for company management to enhance CSR and governance practices, thereby increasing the company's appeal to investors

BOARD CHARACTERISTICS AND ENVIRONMENTAL PERFORMANCE : DOES OWNERSHIP MODERATE THE IMPACT?

The aim of this research is to examine the influence of ownership in moderating corporate governance on environmental performance. The analysis method employed is panel data regression and Moderated Regression Analysis on 52 companies in the energy sector listed on the Indonesia Stock Exchange during 2018-2022. Managerial ownership can strengthen the influence of board size and environmental committee on environmental performance positively and weaken board independence on environmental performance. Meanwhile, blockholder ownership reinforces the influence of board size on environmental performance. Managers play a role in enhancing the participation of boards and environmental committees in environmental practices. Blockholders from other fields need to improve their mastery of environmental practices. Originality of this research is diverse findings highlight the roles of managerial ownership and blockholder ownership in environmental performance, as well as the moderating role of ownership type in corporate governance on environmental performance. The findings of this research provide a new gap for academics to further examine the characteristics of blockholders.

Determinants of Carbon Emission Disclosure in Palm Oil Industries

The acceleration of climate change is greatly influenced by carbon emissions from industrial processes, particularly those that come into direct touch with natural resources. One industry that interacts directly with natural resources is the palm oil sector. From clearing land to managing oil palm plantations, manufacturing palm oil FFB, and distributing palm oil goods, all of this industrial business activity generates carbon emissions that have the potential to harm the environment. The purpose of this study is to investigate the low level of transparency and reporting of carbon activities. A number of variables, such as profitability, firm size, environmental performance, managerial ownership, and corporate worth, are used in this study to analyse carbon emission disclosure. This research is a type of quantitative research using secondary data, namely 25 samples of the palm oil industry in Indonesia for the period 2021–2023. The research results show that profitability and managerial ownership company size have insignificant results on Carbon Emission Disclosure, while environmental performance has a significant effect on Carbon Emission Disclosure. The Carbon Emission Disclosure hypothesis on company value also shows significant results where the more a business entity discloses and reports its carbon activities, the more investor confidence it has which can be seen in the high share value.

Board Size as Moderator: Understanding Environmental Practices in Indonesia

Global warming, driven primarily by carbon emissions, poses a critical challenge worldwide, including in Indonesia. In response, the Indonesian government issued Law No. 71 of 2021 to mitigate risks and promote carbon emission reduction. This study examines the influence of media exposure, managerial ownership, and industry type on carbon emission disclosure (CED), employing a quantitative design with purposive sampling of 66 companies from 2020-2022, resulting in 198 data points. CED is assessed through direct greenhouse gas (GHG) emissions, indirect emissions from electricity, and other GHG emissions. Findings reveal an adjusted R-square of 53.9%, with media exposure and industry type significantly impacting CED positively. The study underscores the importance of organizations adopting carbon-friendly initiatives to reduce emissions in business operations. It highlights the need for stronger governmental regulations to enhance corporate awareness and compliance with carbon disclosure practices.

The Moderating Effect of Accounting Conservatism on Managerial Ownership and Growth Opportunity Relationship

The application of the accounting conservatism method in the company's financial statements is essential for company managers in their consideration of strategy development. In uncertain global economic conditions, the application of the precautionary principle or accounting conservatism in financial statements is needed to maintain the stability of the company's financial condition. This study aims to test and analyze the effect of managerial ownership and growth opportunities on accounting conservatism with leverage as a moderating variable. This study uses secondary data in the form of annual financial reports on property and real estate sector companies listed on the Indonesia Stock Exchange (IDX) and Indonesian Capital Market Directory. This study used a purposive sampling technique. The results showed that managerial ownership affects accounting conservatism, while growth opportunity does not affect accounting conservatism. For leverage used as a moderating variable, it is unable to moderate the effect of managerial ownership and growth opportunity on accounting conservatism. This study can help investors and regulators understand the role of managerial incentives in shaping financial reporting behavior. Companies and regulators may want to consider ownership structure when evaluating financial transparency and risk.

Improving Capital Structure through Firm Size and Sales Growth: The mediating role of Managerial Ownership

Conflict between ownership and management constitutes a significant concern within organizational dynamics. Nevertheless, the alignment of the interests between owners and management can be advanced by promoting managerial ownership. Prior research delving into the role of managerial ownership as an intermediary variable linking firm size and sales growth, with capital structure remains rather limited, particularly in the context of non-financial companies listed on the IDX. This study investigates the correlations between firm size and sales growth with capital structure, mediated by managerial ownership. This investigation focuses on non-financial entities that are not state-owned enterprises and are listed on the IDX. Hypothesis testing in this study was conducted using path analysis. Path analysis is calculated by decomposing the causal influence model between direct and indirect variables. The findings of this study add to a more profound understanding on how firm size, when mediated by managerial ownership, impacts the capital structure, as indicated by the LTDR proxy. This underscores that managerial ownership, as a means of mitigating agency conflicts, can exert an influence on management's decision-making concerning the proportion of long-term debt within the capital structure. It is worth noting that Managerial ownership does not serve as a substantial mediator in the influence of sales growth on the capital structure.

The Influence of Good Corporate Governance on Firm Value with Profitability as an Intervening Variable in LQ45 Companies Listed on The Indonesia Stock Exchange for The Period 2019-2023

The purpose of this study is to obtain empirical evidence of managerial ownership, institutional ownership, audit committee, and independent board of commissioner and profitability as mediation on the LQ45 Companies value. The sampling technique used purposive sampling, the research samples obtained totaled 19 companies with a research period from 2019-2023 so that there were 95 units of analysis. The research design was quantitative descriptive. The analysis technique in this research is path analysis method. The results showed that Institutional ownership has a significant positive effect on ROA, independent board of commissioner and ROA significant effect on firm's value. The implication of this research is that companies must pay attention to that ROA, independent board of commissioner and Institutional ownership and those that can affect profitabilty and value.

Revealing Corporate Value: The Role of Investment Decisions, Debt Policy, and Ownership Structure

This study examines how investment decisions, debt strategies, and ownership structures influence corporate value, specifically targeting manufacturing companies listed on the Indonesia Stock Exchange from 2019 to 2021. Using a quantitative approach and Partial Least Squares (PLS), the research integrates these critical factors into a comprehensive framework. The findings indicate that asset growth significantly impacts corporate value, highlighting the importance of effective investment strategies, while debt expansion positively influences firm value. However, managerial ownership does not exhibit a strong direct relationship with asset growth, equity expansion, or debt policies. Furthermore, this study highlights the significant role of institutional investors in strengthening corporate governance and reducing agency conflicts. Drawing on recent findings, it underscores the importance of intellectual capital and cash reserves in boosting financial performance and market valuation. The effective management of intellectual capital components—namely human, structural, and relational capital—serves as a bridge between financial performance and market valuation, while strategic cash reserves reflect financial stability and potential for growth. By synthesizing investment, financing, and ownership decisions, this study offers a novel perspective and practical implications for firms navigating post-pandemic economic recovery, emphasizing the synergy of financial strategies in optimizing corporate value and enhancing shareholder wealth.

The Effect of Capital Structure, Profitability, Liquidity, and Solvency on Firm Value with Managerial Ownership as a Moderating Variable in Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange 2020-2023

The purpose of this study was to analyze how the influence of capital structure, profitability, liquidity, and solvency, can affect firm value moderated by managerial ownership in food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2023. This research was conducted on food and beverage sub-sector companies listed on the IDX, data information was obtained through the official website of the Indonesia Stock Exchange www.idx.com, the sampling technique used purposive sampling with a population of 94 food and beverage companies listed on the Indonesia Stock Exchange for the period 2020-2023 and a sample of 16 companies. Tests were carried out with regression panel data analysis and Moderated Regression Analysis (MRA) using E-views statistical data processing software. The results of this study indicate that liquidity and solvency variables have no significant effect on firm value, capital structure variables and profitability have a significant effect on firm value. Managerial ownership is also unable to moderate the relationship between capital structure, profitability, liquidity, and solvency on firm value.

MANAGERIAL OWNERSHIP MODERATING SUSTAINABILITY REPORTING AND PHILANTHROPY DISCLOSURE ON FIRM VALUE

The purpose of this study is to obtain empirical evidence regarding Managerial Ownership Moderating Sustainability Reporting and Philanthropy Disclosure on Firm Value. This study uses purposive sampling to determine the sample, with 62 companies as samples and a 3-year observation period from 2020 to 2022, resulting in 186 observational data points. The research data was obtained through the official websites of the Indonesia Stock Exchange and the respective companies' websites. Data analysis was conducted using E-Views with panel data regression analysis using the Fixed Effect Model. The research findings indicate that Sustainability Reporting affects company value, Philanthropy Disclosure has a negative impact on company value, Managerial Ownership does not moderate the relationship between Sustainability Reporting and company value, and Managerial ownership moderates the relationship between philanthropy disclosure and firm value.

Pengaruh Good Corporate Governance terhadap Manajemen Laba pada Perusahaan Sektor Kesehatan

Good corporate governance (GCG) is an important aspect in corporate management, especially in the healthcare sector. This is because good Good corporate governance (GCG) practices can affect the transparency and accountability of financial reports, as well as reduce the tendency of earnings management. The risk of earnings management is often used in the face of pressure to maintain stable and attractive financial performance for stakeholders. This study aims to analyze the effect of good corporate governance on earnings management in healthcare sector companies. This study uses a quantitative approach with an explanatory research to test the effect of Good corporate governance (GCG) on earnings management in health sector companies listed on the Indonesia Stock Exchange (IDX) in 2021-2023. The results obtained from this study are independent commissioners, managerial ownership, institutional ownership do not have a significant effect on earnings management. While the audit committee has a significant effect on earnings management. Independent commissioners, managerial ownership, institutional ownership and audit committees simultaneously have a significant effect on earnings management.

Pengaruh Corporate Governance dan Intellectual Capital terhadap Nilai Perusahaan

This research aims to examine the influence of corporate governance (board direction, managerial ownership, institutional ownership, and audit committee) and intellectual capital on company value. Company value is measured using Tobin's Q. This research uses secondary data. The sampling technique used was purposive sampling, with a sample of 43 manufacturing companies listed on the Indonesia Stock Exchange in 2020-2022. The analytical method used is multiple regression analysis. Based on regression analysis, the results of this research show that board direction has an insignificant positive effect on company value. Managerial ownership has a significant negative effect on firm value. Institutional ownership has a significant negative effect on firm value. The audit committee has an insignificant negative effect on company value and intellectual capital has an insignificant negative effect on company value.

Pengaruh Good Corporate Governance dan Investment Opportunity Set terhadap Kebijakan Dividen

Good Corporate Governance (GCG) is a guarantee that comes from the control system in a company which can be seen from the procedures of the independent board of commissioners (DKI), institutional ownership (KI), managerial ownership (KM), and audit committee (KA). Good governance can indicate that the company is able to ensure good management of the company's finances. Investment Opportunity Set is the value of the company which depends on the costs set by management for the future. If a company has many profitable investment opportunities, this will likely lead to a low dividend payout ratio. The population of this study was 84 food and beverage companies registered on the IDX. The sampling technique used was purposive sampling. The analysis technique used in this research is multiple linear regression. The results of this research show that managerial ownership, institutional ownership, audit committee, and investment opportunity set have a positive effect on dividend policy. Meanwhile, the board of commissioners has a negative influence on dividend policy. Further research can develop this research by using other variables which theoretically have an influence on dividend policy

Pengaruh Good Corporate Governance dan Ukuran Perusahaan Terhadap Integritas Laporan Keuangan dengan Kualitas Audit Sebagai Pemoderasi

This study aims to evaluate the impact of institutional ownership, the presence of independent commissioners, and company size on the integrity of financial statements in companies listed on the Indonesia Stock Exchange (IDX) during the period from 2019 to 2023, considering the role of audit quality as a moderating variable. The analysis results show that independent commissioners and company size have a significant and positive impact on the integrity of financial statements, while institutional ownership does not have a significant effect. In addition, audit quality was not proven to moderate the relationship between institutional ownership, independent commissioners, and company size on the integrity of financial statements. This study has limitations, such as the sample being limited to manufacturing companies and the use of conservatism as the sole proxy for measuring financial statement integrity. Future research is recommended to expand the sample, extend the research period, and incorporate other variables such as profitability, leverage, managerial ownership, or audit fees.

Pengaruh Profitabilitas, Likuiditas, Ukuran Perusahaan, Leverage, Kepemilikan Manajerial dan Kepemilikan Institusional Terhadap Nilai Perusahaan: Studi pada Perusahaan Food and Baverage yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2022

This research aims to examine the influence of the independent variables profitability, liquidity, company size, leverage, managerial ownership and institutional ownership and the dependent variable firm value. The object of this research is food and beverage companies listed on the Indonesia Stock Exchange 2019 - 2022. The sampling method used is the purposive sampling technique. This research was conducted on 19 companies and the number of observations was 532 data using a quantitative-descriptive approach. The analytical method used is multiple regression which consists of classic assumption tests (normality test, multicollinearity test, heteroscedasticity test and autocorrelation test) and hypothesis tests (coefficient of determination test, T test, F test). The results of this research show that profitability and leverage have a positive and significant effect on company value, while liquidity, company size, managerial ownership and institutional ownership have no effect on company value.