The Effect of Institutional Ownership and Managerial Ownership on Firm Value with Profitability as an Intervening Variable Listed on the Indonesia Sharia Stock Index

Sabdo Panggiring, Sutrisno

managerial ownership, institutional ownership, firm value, profitability, firm size

This study examines the effect of managerial ownership, institutional ownership on firm value with profitability as a mediating variable and firm size as a control variable. The population in this study were all companies listed on the Indonesian Sharia Stock Index (ISSI) during the 2015-2019 period, with amount 196 companies. Sampling was done by the purposive sampling method. The data collection method is carried out by data documentation techniques which are historical data available in annual financial reports. The data analysis technique used panel regression analysis and path analysis to determine the effect of mediation.

The results showed that institutional ownership and managerial ownership did not have a significant effect on profitability (ROA). institutional ownership does not affect firm value (TQ), but in managerial ownership, it has a negative effect on firm value (TQ). Other results show that profitability (ROA) has a positive effect on firm value (TQ). In the path analysis test, profitability (ROA) is not able to mediate between institutional ownership and firm value (TQ), but profitability (ROA) can mediate between managerial ownership and Firm Value (TQ).

https://doi.org/10.31871/IJNTR.7.10.10