Research Article
The Effect of Family Ownershipnd CEO Characteristics n Foreign Investmentof Publicly Listed Family Firms
@INPROCEEDINGS{10.4108/eai.6-12-2018.2286323, author={Annisa Sabila and Viverita Viverita}, title={The Effect of Family Ownershipnd CEO Characteristics n Foreign Investmentof Publicly Listed Family Firms}, proceedings={Proceedings of the 1st Sampoerna University-AFBE International Conference, SU-AFBE 2018, 6-7 December 2018, Jakarta Indonesia}, publisher={EAI}, proceedings_a={SU-AFBE}, year={2019}, month={8}, keywords={foreign investment family ownership ceo}, doi={10.4108/eai.6-12-2018.2286323} }- Annisa Sabila
Viverita Viverita
Year: 2019
The Effect of Family Ownershipnd CEO Characteristics n Foreign Investmentof Publicly Listed Family Firms
SU-AFBE
EAI
DOI: 10.4108/eai.6-12-2018.2286323
Abstract
This study aims to analyze the effect of family ownership and CEO characteristics on foreign investment of the Indonesian publicly listed family firm.CEO characteristics are proxied by three variables which are CEO founder and CEO descendant, CEO education, and CEO background.This study uses the purposive sampling of family firms which divided into two categories, group and standalone.By using the Random effect model, this study founds that family ownership significantly lessen foreign investment due to the risk of expropriation and high monitoring cost.This effect is more pronounced in standalone firms rather than firms within a group.On the other hand, higher CEO education brings more foreign investment. In addition dividend and board size reduced foreign investment meanwhile firm’s profits and crisis increased foreign investment.