The Institutional Ownership and Firm Performance: Evidence from The Capital Bank

Abstract

Governments have increasingly liberalized their policies in recent years to attract foreign investment, as they have witnessed a favorable impact – both direct and indirect – on target country firms and economic development. The effect of multiple large shareholders on firm performance cannot be considered in isolation, however, as the institutional and developmental conditions vary across countries. The objective of this research is to determine the influence of institutional ownership to firm performance especially in The Capital Bank. This research uses quantitative methods and linear regression analysis. The results of the analysis show that there is no effect of institutional ownership on ROA and ROE at The Capital Bank for the period December 2012 – December 2019. There is no effect of institutional ownership on the performance of The Capital Bank because the percentage of institutional ownership less than 50% so the contribution does not have much effect on the company's strategic decisions.

Manufacturing Companies :The Effect of Liquidity and Corporate Governance on Financial Performance with Firm Size as a Moderating

“…This can happen because most companies in the manufacturing sector share ownership structure is dominated by institutional investors, and in fact, this received a poor response from the market because the management was alleged that in carrying out the policy was considered inappropriate and tended to make decisions that were carried out only benefiting the institutional investor and ignoring the interests of other investors, this was based on managers who felt that the amount of institutional ownership owned by the company, the greater the supervision efforts carried out by investors, the institution is to focus on achieving performance, so managers tend to be more focused on trying to provide good information to institutional investors (Wehdawati et al, 2015). Results are supported by Sejati et al, (2018), Dewi, (2019), andArtha et al, (2021). This implies that management needs to reconsider the proportion of institutional share ownership and every decision-making activity carried out while still paying attention to all company stakeholders.…”

“…Meanwhile the negative influence shown by Elisetiawati & Artinah, (2016), Saidu et al, (2018), Tsouknidis, (2019), and Sani, (2020. The absence of influence shown by Wehdawati et al, (2015), Soetan et al, (2016), Sejati et al, (2018), Putri & Dewi, (2019), Artha et al, (2021), andRegina, (2021).…”

Analisis Pengaruh Struktur Modal dan Tata Kelola Perusahaan terhadap Kinerja Perusahaan pada Perusahaan yang Terdaftar di Bursa Efek Indonesia

“…Terdapat pula temuan bahwa kepemilikkan institusional tidak memiliki pengaruh yang signifikan terhadap return on equity. Temuan ini merupakan hasil riset dari penelitian Artha et al (2021), Ali et al (2018), dan Balagobei dan Velnampy (2017).…”

“…Rendahnya kepemilikkan institusional menjadikan kontribusi institusional tidak memiliki pengaruh yang cukup besar untuk keputusan strategi perusahaan. Hasil yang diperoleh sejalan dengan penelitian Artha et al (2021), Ali et al (2018), dan Balagobei dan Velnampy (2017). Maka dapat disimpulkan hipotesis 8 tidak terbukti.…”