PERANAN KEPEMILIKAN INSTITUSIONAL TERHADAP NILAI PERUSAHAAN DALAM TINJAUAN HUBUNGAN NON-LINEAR Kasus Perusahaan yang Terdaftar di Bursa Efek Indonesia

Elok Pakaryaningsih(1*)

(1) Fakultas Ekonomi Universitas Kristen Duta Wacana Yogyakarta
(*) Corresponding Author

Abstract

This research examines the effect of institutional ownership on firm value. In doing
so, institutional ownership will be divided into two groups; passive owner and active owner.
The active owner who holds more than 5 percent of stock is hypothesized to have positive
relationship with firm value. However, this positive relationship will decline considerably as
the percentage of ownership increases. The other variables, namely; passive institutional
ownership, public ownership, and firm size will be used as well to examine the consistent
relationship between institutional ownership and firm value. Rather than examining it
linearly, this research intends to examine the non-linear effect of institutional ownership on
firm value. The samples are drawn from all firms listed at the Jakarta Stock Exchange from
2002 to 2005. Using the non-linear regression analysis, the results show the existence of nonlinear
relationship between active institutional owner and
firm value in Indonesia.

Keywords

institutional ownership, firm value, non-linear relationship

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DOI: 10.23917/benefit.v12i2.1288

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