Directors' Ownership and Firm Performance in Indonesia
The purpose of this paper is to investigate the influence of directors’ ownership on the financial performance of firms listed on the Indonesian Stock Exchange from 2008 to 2012. The method uses quantitative approach, namely multiple linear regression. The financial performance is measured with retu...
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| Format: | Article |
| Language: | English |
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Universitas Darussalam Gontor
2020-01-01
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| Series: | Al Tijarah |
| Subjects: | |
| Online Access: | https://ejournal.unida.gontor.ac.id/index.php/altijarah/article/view/3456 |
| _version_ | 1818529541856952320 |
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| author | Juanda . |
| author_facet | Juanda . |
| author_sort | Juanda . |
| collection | DOAJ |
| description | The purpose of this paper is to investigate the influence of directors’ ownership on the financial performance of firms listed on the Indonesian Stock Exchange from 2008 to 2012. The method uses quantitative approach, namely multiple linear regression. The financial performance is measured with return on assets (ROA). The research shows that directors’ ownership does not significantly influence firm performance. This implies that directors’ ownership of listed firms in Indonesia is not proven to get the interests of directors and shareholders aligned. This paper is particularly important to the policymakers and shareholders of firms in Indonesia and other developing economies since it provides a comprehensive insight into the directors’ ownership – firm performance relationship and therefore it helps them to formulate the best policies. |
| first_indexed | 2024-12-11T17:08:12Z |
| format | Article |
| id | doaj.art-896cfa22b4bb4fd18a12eb0926c5e5e1 |
| institution | Directory Open Access Journal |
| issn | 2460-4089 2528-2948 |
| language | English |
| last_indexed | 2024-12-11T17:08:12Z |
| publishDate | 2020-01-01 |
| publisher | Universitas Darussalam Gontor |
| record_format | Article |
| series | Al Tijarah |
| spelling | doaj.art-896cfa22b4bb4fd18a12eb0926c5e5e12022-12-22T00:57:36ZengUniversitas Darussalam GontorAl Tijarah2460-40892528-29482020-01-0152859210.21111/tijarah.v5i2.34561985Directors' Ownership and Firm Performance in IndonesiaJuanda .0Fakultas Ekonomi, Universitas Syah Kuala Banda AcehThe purpose of this paper is to investigate the influence of directors’ ownership on the financial performance of firms listed on the Indonesian Stock Exchange from 2008 to 2012. The method uses quantitative approach, namely multiple linear regression. The financial performance is measured with return on assets (ROA). The research shows that directors’ ownership does not significantly influence firm performance. This implies that directors’ ownership of listed firms in Indonesia is not proven to get the interests of directors and shareholders aligned. This paper is particularly important to the policymakers and shareholders of firms in Indonesia and other developing economies since it provides a comprehensive insight into the directors’ ownership – firm performance relationship and therefore it helps them to formulate the best policies.https://ejournal.unida.gontor.ac.id/index.php/altijarah/article/view/3456roadirectors’ ownershipfirm performance |
| spellingShingle | Juanda . Directors' Ownership and Firm Performance in Indonesia Al Tijarah roa directors’ ownership firm performance |
| title | Directors' Ownership and Firm Performance in Indonesia |
| title_full | Directors' Ownership and Firm Performance in Indonesia |
| title_fullStr | Directors' Ownership and Firm Performance in Indonesia |
| title_full_unstemmed | Directors' Ownership and Firm Performance in Indonesia |
| title_short | Directors' Ownership and Firm Performance in Indonesia |
| title_sort | directors ownership and firm performance in indonesia |
| topic | roa directors’ ownership firm performance |
| url | https://ejournal.unida.gontor.ac.id/index.php/altijarah/article/view/3456 |
| work_keys_str_mv | AT juanda directorsownershipandfirmperformanceinindonesia |