The Effect of Government Ownership, Foreign Ownership, Managerial Ownership, Institutional Ownership on Financial Performance With Corporate Governance as Moderate in Soe Companies

Abstract

Introduction: This study examines the effect of government ownership, foreign ownership, managerial ownership, and institutional ownership on Financial Performance with Corporate Governance as moderating BUMN companies Post Privatization in 2015-2019. In this study, the data used is panel data. Panel data is a combination of time series and cross-section. Methods: The data analysis method used is multiple linear regression using the SPSS Version 26 application, in accordance with the research objectives, the type of research used in this study is hypothesis testing research. This research is causal. Results: The results show that Government Ownership, Foreign Ownership, Managerial Ownership, and Institutional Ownership affect Financial Performance. Conclusion: The size of the board of commissioners has no impact on financial performance. The size of the board of commissioners moderates the predictor of the effect of government ownership on economic performance because the size of the board of commissioners has no impact on financial performance (p?0.05). The size of the Board of Commissioners moderates the predictor of the influence of Foreign Ownership on Financial Performance because the size of the board of commissioners does not affect financial performance. The size of the board of commissioners moderates the effect of managerial ownership on economic performance because the size of the board of commissioners has no impact on financial performance, and the size of the board of commissioners moderates the effect of institutional ownership on economic performance because the size of the board of commissioners has no impact on financial performance (p>0.05).

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“…The results of this research align with previous research conducted by Fibriani et al (2022), which found that managerial ownership had a positive and insignificant effect on the financial performance of companies listed on the Indonesian stock exchange. Suartama and Sukartha (2020) reported that managerial ownership had a positive impact on the financial performance of merged companies listed on the Indonesian stock exchange.…”

“…GCG is integral to a company's long-term profitability and ability to compete effectively in global business (Fibriani et al, 2022). The implementation of ESG principles is a manifestation of the GCG principles.…”

“…GCG is the key to success for a company's long-term profitability and competitiveness in the global business landscape (Fibriani et al, 2022). By implementing GCG principles, a company is expected to enhance its financial performance by employing an optimal capital structure.…”

“…Investors avoid companies with bad reputations in Good Corruption Governance (GCG). The attention given by investors is as great as attention to the company's financial performance (Fibriani et al, 2022). With GCG, company management will improve the performance of the company itself, and by increasing financial performance, which is supported by the company's profitability, it will become attractive to investors so that it will improve financial performance (Wijaya and Wirawati, 2019).…”

“…Regarding capital structure, Heliola et al (2020); Aulia et al (2018) found that capital structure has a significant positive effect on financial performance, while Nini et al (2020), Mohammad et al (2019) stated that capital structure has a negative and significant effect on the company's financial performance. For managerial ownership, Fibriani et al (2022), Almashhadani and Almashhadani (2022), Suartama and Sukartha (2020), and Loen (2022) found a positive and significant effect on financial performance, whereas Astari and Suputra (2019) stated that managerial ownership has negative effect, and Manurung and Wijaya (2022) found no effect.…”