Analysis of Ownership Structure Effect on Economic Value Added
Abstract: Ownership structure
has a direct relationship with company’s capital structure where the cost of
capital is the main component in the calculation of economic value added to
measure the value of the firm. This research aims to analyze the effect of
ownership structure that consists of managerial ownership, public ownership,
institutional ownership, and government ownership on economic value added, used
as a measurement of the firm value. This research uses an unbalanced panel data
of 182 observations data of all listed companies in the period of 2007-2011
that issued dividend regularly every year during the research’s year. The result shows: (1) managerial ownership has no
significant effect on economic value added, (2) public ownership has a
significant positive effect on economic value added, (3) institutional
ownership has a significant positive effect on economic value added, (4)
government ownership has no significant effect on economic value added, (5)
ownership structure (managerial ownership, public ownership, institutional
ownership, government ownership) simultaneously has a significant positive
effect on economic value added.
Keywords: economic value added, government ownership,
institutional ownership, managerial ownership, public ownership
Author: Friska Fardhina
Henryani, Retno Kusumastuti
Journal Code: jpadministrasinegaragg130055
