The Role of Debt in Moderating the Influence of Ownership Structure on Company Performance in the Manufacturing Sector Listed on the Idx
Year: 2024
Type: conference-paper
Abstract: This study examines the role of debt as a moderating variable in the relationship between ownership structure and company performance in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) during 2021-2022. Focusing on institutional and managerial ownership, the study investigates how these factors influence company performance using agency theory. A sample of 220 manufacturing companies was analyzed through linear regression. The findings reveal that managerial ownership significantly positively impacts company performance, while debt moderates this relationship with a significant negative effect. Conversely, institutional ownership has no significant effect on company performance, nor does debt as a moderating factor in this context. The study offers insights into the dynamics of ownership structure and its impact on performance, serving as a reference for strategic decision-making in the manufacturing industry.
Authors: Tjeng Lily, Cicilia Erna Susilawati
Institution: Universitas Katolik Widya Mandala Surabaya
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4404622717