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Research Paper | Finance | Indonesia | Volume 8 Issue 1, January 2019 | Rating: 7 / 10

Influence Analysis of Managerial Ownership and Institutional Ownership on Firm Performance in Indonesia Stock Exchange

Novianti Lestari Saepudin | Irni Yunita S.T. M.M

Abstract: This paper aims to be involved in such trends through examining the link between managerial ownership and institutional ownership as one of the important firm performance mechanisms. This research took 7 non-financial companies in the index LQ45 within period 2013-2017. This research used panel data regression method with random effect model. Significance level used in this research is 5 % or 0.05. The result of this research show that all independent variable simultaneously effects the firm performance (market share) on non-financial company listed in LQ45 within period 2013-2017. Therefore, based on the partial test, the finding revealed that managerial ownership has a negative impact on firm performance. On the other hand, there is no evidence to support the impact of institutional ownership on firm performance. The findings also revealed that firm size as control variable has a positive impact on firm performance.

Keywords: Firm Performance, Managerial Ownership, Institutional Ownership, Firm Size

Edition: Volume 8 Issue 1, January 2019,

Pages: 236 - 240