Other variables that affect

Oct 13, 2025 by windailys.com 148 views

Analysis of the Effect of Managerial Ownership and Institutional Ownership and Disclosure of Corporate Social Responsibility to the Value of Banking Companies on the Indonesian Stock Exchange

Introduction

The Indonesian Stock Exchange (IDX) is one of the largest stock exchanges in Southeast Asia, with a significant number of banking companies listed on it. The value of these companies is influenced by various factors, including managerial ownership, institutional ownership, and corporate social responsibility (CSR) disclosure. This study aims to analyze the effect of these factors on the value of banking companies listed on the IDX from 2011 to 2013.

Background

The value of a company is a critical aspect of its success, and it is influenced by various factors, including its financial performance, management, and ownership structure. Managerial ownership refers to the ownership of a company by its management, while institutional ownership refers to the ownership of a company by institutional investors, such as pension funds and mutual funds. CSR disclosure refers to the transparency of a company's social and environmental practices.

Research Methodology

This study uses a quantitative approach, with a sample of 12 banking companies listed on the IDX. The data were collected from secondary sources, including financial statements and CSR reports. The research design is associative causal, with Tobin's Q as the dependent variable and managerial ownership, institutional ownership, and CSR disclosure as the independent variables. The data were analyzed using regression tests, including the T test and the F test, at a significance level of 5%.

Results

The results of this study show that managerial ownership, institutional ownership, and CSR disclosure have no significant influence on Tobin's Q, which is a measure of a company's value. This suggests that these factors do not have a direct impact on the value of banking companies listed on the IDX.

Discussion

The lack of significant effects of managerial ownership, institutional ownership, and CSR disclosure on company value may be due to several factors, including:

Central Management: In many banking companies, strategic decisions are often taken by the majority shareholders or senior management, which can ignore the interests of minority shareholders. In this condition, managerial ownership may not contribute positively to the company's value.
Market Dynamics: Company Value in the Capital Market is strongly influenced by investor perceptions and macroeconomic conditions. Although the company has strong institutional ownership or active in CSR practice, external factors such as economic conditions, government regulations, and industrial competition can be more dominating in determining the value of the company.
Disclosure of CSR: Although CSR has become an important thing for many companies in increasing reputation and image, its effect on company value may not be directly seen in the short term. Investors may not fully appreciate the positive effects of CSR disclosures on the company's long-term performance.
Other variables that affect: This research only considers three independent variables. There are many other factors that can contribute to company value such as financial performance, innovation, and risk management. Conducting more comprehensive research by adding these variables can provide deeper insights.

Conclusion

This study provides an important picture of the dynamics of ownership and corporate social responsibility in the context of banking in Indonesia. Although the results show that the three variables have no significant effect on the value of the company, this also opens opportunities for further research to explore other factors that may have a greater contribution. This is important for investors, management, and other stakeholders in understanding the complexity of the company's value in the capital market.

Recommendations

Based on the findings of this study, the following recommendations are made:

Further research: Conducting more comprehensive research by adding other variables that can contribute to company value, such as financial performance, innovation, and risk management.
Investor education: Educating investors about the importance of CSR disclosure and its potential impact on company value.
Management practices: Encouraging management to prioritize CSR practices and disclose them transparently to stakeholders.
Regulatory framework: Developing a regulatory framework that encourages CSR practices and transparency in the banking industry.

Limitations

This study has several limitations, including:

Sample size: The sample size of this study is relatively small, which may limit the generalizability of the findings.
Data quality: The data used in this study are secondary, which may be subject to errors or biases.
Research design: The research design of this study is associative causal, which may not capture the complex relationships between the variables.

Future Research Directions

This study opens up several avenues for future research, including:

Exploring other factors: Investigating other factors that can contribute to company value, such as financial performance, innovation, and risk management.
Comparative study: Conducting a comparative study of the effects of managerial ownership, institutional ownership, and CSR disclosure on company value in different industries or countries.
Longitudinal study: Conducting a longitudinal study to examine the effects of managerial ownership, institutional ownership, and CSR disclosure on company value over a longer period.
Q&A: Analysis of the Effect of Managerial Ownership and Institutional Ownership and Disclosure of Corporate Social Responsibility to the Value of Banking Companies on the Indonesian Stock Exchange

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the effect of managerial ownership and institutional ownership as well as the disclosure of corporate social responsibility (CSR) on company value in banking companies listed on the Indonesian Stock Exchange (IDX) from 2011 to 2013.

Q: What are the variables used in this study?

A: The variables used in this study are:

Tobin's Q as the dependent variable
Managerial ownership as an independent variable
Institutional ownership as an independent variable
CSR disclosure as an independent variable

Q: What is the research design used in this study?

A: The research design used in this study is associative causal, which means that the study aims to establish a causal relationship between the independent variables and the dependent variable.

Q: What is the sample size of this study?

A: The sample size of this study is 12 banking companies listed on the IDX.

Q: What are the results of this study?

A: The results of this study show that managerial ownership, institutional ownership, and CSR disclosure have no significant influence on Tobin's Q, which is a measure of a company's value.

Q: What are the possible reasons for the lack of significant effects of managerial ownership, institutional ownership, and CSR disclosure on company value?

A: The possible reasons for the lack of significant effects of managerial ownership, institutional ownership, and CSR disclosure on company value are:

Central management: In many banking companies, strategic decisions are often taken by the majority shareholders or senior management, which can ignore the interests of minority shareholders.
Market dynamics: Company Value in the Capital Market is strongly influenced by investor perceptions and macroeconomic conditions.
Disclosure of CSR: Although CSR has become an important thing for many companies in increasing reputation and image, its effect on company value may not be directly seen in the short term.
Other variables that affect: This research only considers three independent variables. There are many other factors that can contribute to company value such as financial performance, innovation, and risk management.

Q: What are the implications of this study?

A: The implications of this study are:

Investors, management, and other stakeholders should be aware of the complexity of company value in the capital market.
Further research is needed to explore other factors that may have a greater contribution to company value.
Encouraging management to prioritize CSR practices and disclose them transparently to stakeholders.
Developing a regulatory framework that encourages CSR practices and transparency in the banking industry.

Q: What are the limitations of this study?

A: The limitations of this study are:

Sample size: The sample size of this study is relatively small, which may limit the generalizability of the findings.
Data quality: The data used in this study are secondary, which may be subject to errors or biases.
Research design: The research design of this study is associative causal, which may not capture the complex relationships between the variables.

Q: What are the future research directions?

A: The future research directions are:

Exploring other factors that can contribute to company value, such as financial performance, innovation, and risk management.
Conducting a comparative study of the effects of managerial ownership, institutional ownership, and CSR disclosure on company value in different industries or countries.
Conducting a longitudinal study to examine the effects of managerial ownership, institutional ownership, and CSR disclosure on company value over a longer period.