Title:
The Effect of Ownership Structure on Firm Value through Financial Performance as Intervening During Covid-19 (Evidence from LQ45 Index Indonesia)

Authors:
Nella Yantiana, Nisa Elvia Wintami, Indonesia

Abstract:

This research aims to indentify the role of financial performance in mediating the influence of ownership structure mechanism that proxied by institutional ownership and ownership of management on the value of companies listed onLQ45 index during epidemic of Covid 19.

The population of research is companies listed on LQ45 index during Quarter 1st 2020 to Quarter 1st 2021. In this study, a sample is chosen by purposive sampling, obtained 29 companies followed by 145 observation data. Quantitative study conducted to analyse data in this research.

The outcomes showed that institutional ownership affects financial performance positively and also LQ45 firm value during pandemic. While, the higher managerial ownership is not able to increase the performance of companies and also LQ45 corporate value during Covid-19. Furthermore, financial performance influences LQ45 companies value positively. Indirect analysis proved that financial performance able to mediate the effect of institutional ownership on firm value, but not able to mediate the influence of managerial ownership on LQ45 firms value.

DOI: http://dx.doi.org/10.51505/IJEBMR.2022.6205