Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia

Research Article

Moderating Institutional Ownership : Profitability and Firm Value

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  • @INPROCEEDINGS{10.4108/eai.10-8-2022.2320817,
        author={Lestari Adhi Widyowati and Inta Hartaningtyas Rani},
        title={Moderating Institutional Ownership : Profitability and Firm Value},
        proceedings={Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2022},
        month={8},
        keywords={roe stock price intitutional ownership},
        doi={10.4108/eai.10-8-2022.2320817}
    }
    
  • Lestari Adhi Widyowati
    Inta Hartaningtyas Rani
    Year: 2022
    Moderating Institutional Ownership : Profitability and Firm Value
    ICBAE
    EAI
    DOI: 10.4108/eai.10-8-2022.2320817
Lestari Adhi Widyowati1,*, Inta Hartaningtyas Rani1
  • 1: Ahmad Dahlan Institute of Technology and Business Jakarta
*Contact email: lestariadhi@itb-ad.ac.id

Abstract

This study aims to determine the effect of profitability on firm value with GCG as moderating through moderating regression analysis. The dependent variable used in this study is firm value which is represented by stock prices, while the independent variables include profitability which is proxied by ROE, and the moderating variable is good corporate governance (GCG) which is proxied by institutional ownership. The study was conducted on the financial statement data of 193 manufacturing companies listed on the Indonesia Stock Exchange in 2020-2021. The ROE variable is proven to have an effect on stock prices. Institutional ownership as a moderator has been proven to strengthen the effect of ROE on stock prices. The proxy chosen to represent the variables in this study will bring newness to the empirical study and provide another perspective for management