The Influence of Ownership Structure, Corporate Governance, Investment Decision, Financial Decision and Dividend Policy on the Value of the Firm Manufacturing Companies Listed on The Indonesian Stock Exchange

Journal Managerial Volume 1 Number 1

12 Pages Posted: 3 Jul 2013 Last revised: 13 Jul 2013

Muhammad Nasrum

School of Management YAPIM Maros Indonesia

Date Written: June 27, 2013

Abstract

The study aims to determine the significance of the effect of ownership structure, corporate governance, investment decisions, financial decisions and dividend policy on the value of the firm. The data used in this study are secondary data, the stock ownership structure data, the number of audit committee, the board of directors, the proportion of independent commissioners, the number and price of shares and the annual financial statement data of manufacturing companies listed on Stock Exchanges of Indonesia. The primary data were obtained through questionnaires distribution. The population are all listed manufacturing companies in Indonesian stock exchange and forty samples were selected by means of simple random sampling technique for the period of 9 years (2000-2009). The analysis procedure was path analysis consisting of four sub-structure.

The study indicates that the ownership structure and corporate governance have a positive influence on investment decisions. On the contrary, both have a negative effect on the financial decisions. Meanwhile, the investment decisions have a positive influence on financial decisions. Both ownership structure and corporate governance have a positive influence on dividend policy, while making investment and financial decisions would negatively affect the dividend policy. Ownership structure, corporate governance, investment decision, financing decision, and dividend policy have a positive influence on the value of the firm.

Keywords: Ownership Structure, Corporate Governance, Financial Decisions and Corporate Values

Suggested Citation

Nasrum, Muhammad, The Influence of Ownership Structure, Corporate Governance, Investment Decision, Financial Decision and Dividend Policy on the Value of the Firm Manufacturing Companies Listed on The Indonesian Stock Exchange (June 27, 2013). Journal Managerial Volume 1 Number 1. Available at SSRN: https://ssrn.com/abstract=2286074

Muhammad Nasrum (Contact Author)

School of Management YAPIM Maros Indonesia ( email )

Indonesia

Paper statistics

Downloads
754
Rank
25,475
Abstract Views
1,886