The Role of Capital Structure in Intervening The Effect of Ownership Structure on Company’s Value
Abstract
Abstract. The purpose of this study is to examine the partial or simultaneous effect
between Stock Price consists of internal factors of the company associated with the Managerial Ownership (INSD), Institutional Ownership (INST), Foreign Ownership (FORG), Independent Board (INDB), Capital Structure (DER), Company’s Value
(PBV). The populations in this study 8 companies incorporated in Retail Trade Company’s in Indonesia at the period of 2013-2017. Regression analysis was performed based on panel data analysis results on Eviews 10.00. This research concludes several things as follows: Variables Managerial Ownership (INSD) has a negative and not significant effect on Capital Structure (DER), Institutional Ownership (INST) has a negative and significant effect on Capital Structure (DER), Foreign Ownership (FORG) has a positive and significant effect on Capital Structure (DER), Public Ownership (PUBL) has a positive and significant effect on Capital Structure (DER), Managerial Ownership (INSD), Institutional Ownership (INST), Foreign Ownership (FORG), Public Ownership (PUBL) simultaneously have a positive and significant effect on Capital Structure (DER) and able to explain Capital Structure of 0.972745 or 97.72 percent, Managerial Ownership (INSD) has a negative and not significant effect on Company’s Value (PBV), (7) Institutional Ownership (INST) has a negative and not significant effect on Company’s Value (PBV), Foreign Ownership (FORG) has a negative and not significant effect on Company’s Value (PBV), Public Ownership (PUBL) has a positive and significant effect on Company’s Value (PBV), Capital Structure (DER) has a positive and not signifikan on Company’s Value (PBV), Managerial Ownership (INSD), Institutional Ownership (INST), Foreign Ownership (FORG), Public Ownership (PUBL) and Capital Structure (DER) simultaneously have a positive and significant effect on Company’s Value and able to explain Company’s Value of Retail Trade Company’s In Indonesia of 0.922560 or 92.25 percent.
