The Effect of Ownership Structure on Financial Performance with Capital Structure as a Mediating

International Journal of Economics and Management Studies

© 2021 by SSRG - IJEMS Journal

Volume 8 Issue 8

Year of Publication : 2021

Authors : Ayu Mellyta Purnama Sari, Henny Rahyuda

10.14445/23939125/IJEMS-V8I8P101

How to Cite?

Ayu Mellyta Purnama Sari, Henny Rahyuda, "The Effect of Ownership Structure on Financial Performance with Capital Structure as a Mediating," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 8, pp. 1-9, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I8P101

Abstract:

Financial performance is the company's ability to manage and control its resources. The purpose of this study is to determine: (1) the effect of managerial ownership structure and institutional ownership structure on capital structure; (2) the influence of managerial ownership structure, institutional ownership structure, and capital structure on financial performance; (3) whether the capital structure can mediate the influence of managerial ownership structure and institutional ownership structure on financial performance at agriculture companies in the Indonesia Stock Exchange. The data used in this research is quantitative data for the period 2015-2019, which is sourced from annual financial reports published by companies listed in the Indonesia Stock Exchange. This research uses the path analysis technique. This research uses the path analysis technique. The results show that the influence of managerial ownership structure has no effect on capital structure; institutional ownership structure has a positive effect on capital structure. Managerial ownership structure, institutional ownership structure, and capital structure have no effect on financial performance. In addition, the capital structure is also proven to be unable to significantly mediate the influence of managerial ownership structure and institutional ownership structure on the financial performance of agricultural companies on the Indonesia Stock Exchange.

Keywords:

Financial Performance, Capital Structure, Managerial Ownership Structure, Institutional Ownership Structure.

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