Parabolic Effect Between Managerial Ownership And Firm Value To Control Agency Conflict

Ekadjaja, Margarita; Siswanto, Halim Putera; Nuringsih, Kartika; Amelinda, Rita

doi:10.24912/jm.v23i3.569

Cited by 3 publications

(3 citation statements)

References 20 publications

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“…2. The result gives different evidence with the previous study by (Ekadjaja et al, 2019) although it uses the same subject which is non-financial firms that are listed in the Indonesian Stock Exchange a different period of time was used in the study.…”

Section: Discussioncontrasting

confidence: 70%

“…Moreover, (Ekadjaja et al, 2019) conducted the study on non-financial firms that is listed in Indonesian Stock Exchange in the period of 2000-2017 with the optimal point of the non-linear pattern being 42.77% and a u-shaped relationship between managerial ownership and firm's performance, while this study uses the period of 2012-2018 with the optimal point of the non-linear pattern being 38.84%. The result indicates that there can be another relatively strong factors impacting firm's performance such as institutional ownership and family ownership which were not examined in the study of (Ekadjaja et al, 2019), as well as fundamental factors such as leverage, asset growth, dividend policy, and firm's size. The result is proved by the adjusted R 2 of 86.78%.…”

Section: Discussionmentioning

confidence: 99%

“…Moreover, the study of (Ekadjaja et al, 2019) found the parabolic impact of managerial ownership on firm's performance in the form of u-shaped relationship which implies that an increase of managerial ownership until a certain level will reduce firm's performance and a further increase of managerial ownership after exceeding the certain level will increase firm's performance. While (Ping and Hsien, 2008) found the parabolic impact of managerial ownership on firm's performance to be in the form of inverse u-shaped relationship which implies that an increase of managerial ownership until a certain level will increase firm's performance and a further increase of managerial ownership after exceeding the certain level will decrease firm's performance.…”

Section: Theoritical Reviewmentioning

confidence: 99%

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The Parabolic Effect of Managerial Ownership and the Impact Toward Firm’s Performance

Susanto

Nuringsih²

2020

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The purpose of the study is to analyze the impact determinants and the parabolic effect of managerial ownership on a firm’s performance. The model consists of managerial ownership, institutional ownership, family ownership, leverage, asset growth, dividend policy, business risk, and firm size. Purposive sampling is used on non-financial companies in the Indonesian Stock Exchange with a total observation of 539 firm-years. The panel least square is used to analyze the determinants of performance while Panel EGLS is used to analyze the parabolic effect. The study finds that managerial ownership, institutional ownership, dividend policy, and firm size have a positive and significant impact on the firm’s performance. Contrarily, some variables e.g., family ownership, leverage, and asset growth have a negative significant impact on performance. Business risk is not able to prove a significant relationship with performance. Further, the study shows a parabolic effect of managerial ownership, therefore, it proves a model for reducing agency conflict on corporate financial decisions.

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Section: Discussioncontrasting

confidence: 70%

Section: Discussionmentioning

confidence: 99%

Section: Theoritical Reviewmentioning

confidence: 99%

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The Parabolic Effect of Managerial Ownership and the Impact Toward Firm’s Performance

Susanto

Nuringsih²

2020

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The Impact of Carbon Disclosure on Firm Value with Foreign Ownership as A Moderating Variable

Muhammad

Aryani

2021

Journal of Accounting and Business Dynamics

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The purpose of the study is to analyze the effect of carbon disclosure on firm value and examine the moderation effect of foreign ownership. This study used all of the companies listed on the Indonesia Stock Exchange (BEI) between 2016 and 2018 as the population and employed a purposive sampling method to determine 194 companies as the final data observation. The data were collected from annual report and sustainability report released by the sample companies and analyzed using Moderated Regression Analysis (MRA). The result shows that carbon disclosure negatively affects firm value, while, foreign ownership significantly moderates the relationship between both variables.

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Management Share Proprietory and Firm Value: Are There Peculiar Determinants?

Lokko¹,

Li²,

Sarpong³

et al. 2021

OJBM

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The study examined the specific factors that influence management share holdings and how this impact on the value of the firm in Ghana. The study specifically sought to find the relationship existing between managerial ownership and firm worth, non-linear relationship between managerial ownership and firm value, how managerial ownership and firm value are affected by size of firm and firm growth opportunities. Using secondary data from Ghana Stock Exchange from the period of 2015 to 2019, ten financial institutions (Banks) and ten non-financial institutions (non-bank) were purposively selected for the study, considering data availability and accessibility. Inferential statistics was adopted in analysing the data collected. The study found a weak positive linear relationship between firm worth and management's share holdings in the organization. The findings from the second research question revealed that the nature of the bond between management share holdings and firm value was the fact that it was nonlinear, however with no visible description of shape but rather fluctuating in nature. The study further found that there is a moderately weak positive association between firm worth and management share of holdings of the organization in the presence of firm size. The findings from the final research questions also revealed that connection between firm value and management holding of share is influenced by firm growth opportunities. The study recommends the development of a more robust and parsimonious model in the examination of the association between management ownership share and firm size to help improve on the strength and nature of the relationship as was revealed by weak correlation and coefficient of determination values.

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Parabolic Effect Between Managerial Ownership And Firm Value To Control Agency Conflict

Cited by 3 publications

References 20 publications

The Parabolic Effect of Managerial Ownership and the Impact Toward Firm’s Performance

The Parabolic Effect of Managerial Ownership and the Impact Toward Firm’s Performance

The Impact of Carbon Disclosure on Firm Value with Foreign Ownership as A Moderating Variable

Management Share Proprietory and Firm Value: Are There Peculiar Determinants?

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