THE ROLE OF OWNERSHIP STRUCTURE IN THE EFFECT OF DIVERSIFICATION STRATEGY ON CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE
| Main Author: | ANDRIYANTO, WAHYU ARI |
|---|---|
| Format: | Doctoral NonPeerReviewed application/pdf |
| Bahasa: | eng |
| Terbitan: |
, 2016
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| Subjects: | |
| Online Access: |
http://repository.stiesia.ac.id/1350/1/cover.pdf http://repository.stiesia.ac.id/1350/2/3.%20ABSTRACT.pdf http://repository.stiesia.ac.id/1350/ |
Daftar Isi:
- This study aimed to examine the effect of the diversification strategy decisions on capital structure and financial performance and to examine the role of the ownership structure (institutional ownership and managerial ownership) on the effect of the diversification strategy on capital structure and company’s financial performance. Type of this research is quantitative research. The sample used is a non-financial company in accordance with the criteria and is registered as a public company in Indonesia Stock Exchange 2009-2014 period. This study classifies into four variables, are independent variables (exogenous variable): related diversification strategy ( ) and unrelated diversification strategies ( ), moderating variables: institutional ownership ( ) and managerial ownership ( ), intervening variables: capital structure ( ), and the dependent variable (endogenous variable): the company's financial performance ( ). While technical analysis using path analysis and moderated regression analysis (MRA). The results of this study indicate that: related diversification strategies shows positive influence and significant impact on the structure of capital, unrelated diversification strategy to negative and significant impact on capital structure, related diversification strategies to positive and significant impact on the company’s financial performance, unrelated diversification strategy shows negative effect and significant impact on the company’s financial performance, capital structure as measured by DER was also negative effect and significant impact to any changes in company’s financial performance as measured by ROE, institutional ownership role of strengthening the influence of related diversification strategies and unrelated diversification strategies to capital structure, managerial ownership strengthen the role of influence related diversification strategy also unrelated diversification strategy to capital structure, institutional ownership and managerial ownership does not contribute to the effects of capital structure on a company's financial performance because it is an independent variable that directly affect to the capital structure and company's financial performance.