Title: Relationship between Managerial Ownership, Investment Opportunities and Firm Value: Mediation of Dividend Policy and Capital Structure

Authors: Risa Mayasari

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

From 2014 to 2018, manufacturing companies had positive performance growth rates and played a dominant role in shaping Indonesia's GDP. This positive performance then became attractive data for investors in determining investment choices. This study aims to empirically prove the role of dividend policy and capital structure as intervening variables in the influence of managerial ownership and investment opportunities on firm value. The study was conducted on all manufacturing companies listed on the Indonesia Stock Exchange from 2013 to 2017. The sample was determined using purposive sampling. The research data source was secondary data derived from the publication of annual reports of each manufacturing company. The data analysis technique used was path analysis with the Sobel Test. The results of the study explain that dividend policy does not have a mediating role in the influence of investment opportunities on the value of manufacturing companies in 2013 to 2017. However, dividend policy has a full mediating role in the influence of managerial ownership on the value of manufacturing companies in 2013 to 2017. In addition, the results of the study also explain that capital structure has a full mediating role in the influence of managerial ownership on the value of the company and has a partial mediating role in the influence of investment opportunities on the value of manufacturing companies in 2013 to 2017.

Keywords: Managerial Ownership, Investment Opportunities, Dividend Policy, Capital Structure, Firm Value, Manufacturing Companies.

Sources: http://repository.unair.ac.id/97967/