KALBISIANA Jurnal Sains, Bisnis dan Teknologi
Vol. 9 No. 2 (2023): Kalbisiana

Entrenchment Hypothesis and Insider Institutional Ownership: Empirical Evidence from Indonesia Capital Market

Hermeindito Hermeindito (Unknown)

Article Info

Publish Date
23 Jun 2023

Abstract

The aim of this study is to examine the effect of insider institutional ownership on firm value. Indonesian firms have unique characteristic ownership structures which are dominated by insider institutional ownerships rather than managerial ownerships. This study develops model of entrenchment hypothesis that explain the behavior of insider institutional ownership and value of firm. Data for this study are financial ratios and stock price with period of 1994-2008 from non-financial firms that listed on Indonesia Stock Exchange. Using three-stage least squares in the equation system, this study found there is M-shaped relationship between insider institutional ownership and firm value. The research finding is parallel with Hermalin and Weisbach (1991) that found M-shaped relationship between managerial ownership and firm value.

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Journal Info
KALBISIANA Jurnal Sains, Bisnis dan Teknologi
Website

Abbrev

kalbisiana

Publisher

UNIVERSITAS KALBIS

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Industrial & Manufacturing Engineering Social Sciences

Description

KALBISIANA Jurnal Sains, Bisnis dan Teknologi adalah jurnal akses terbuka akademik yang bertujuan untuk mempromosikan integrasi sains, bisnis dan teknologi. Fokusnya adalah menerbitkan makalah tentang sains, bisnis dan teknologi. Makalah yang dikirimkan akan ditinjau oleh komite teknis jurnal. Semua ...