I Wayan Tantra, Ida Bagus Gede Udiyana, I Nengah Dasi Astawa, Ida Bagus Swaputra, Yoris Adi Maretta, Putu Kepramareni, AA Ngurah Gde Suindrawan
This study aims to examine the effect of the free cash flow agency problem on managerial ownership in Indonesian manufacturing industry. In addition, the study examines the effect of managerial ownership on firm value and the relationship pattern between managerial ownership toward firm value. This study also examined the moderating effect of the free cash flow agency problem with managerial ownership on firm value. The research was carried out on manufacturing industries listed on the Indonesia Stock Exchange (IDX) in the period of 2013-2015 with 106 company samples. The statistical analysis method used in this study is multiple linear regression with panel data. The results of study indicate that the free cash flow agency problem affects managerial ownership and managerial ownership has a significant effect on firm value. The relationship pattern between managerial ownership and firm value reaches an optimal point when managerial ownership reaches 25.67%. The moderating effect of free cash flow agency problem with managerial ownership does not affect the firm value. © 2019 SERSC.
STIMI Handayani Denpasar, Indonesia; UNDIKNAS, Denpasar, Indonesia; Universitas Negeri Semarang, Indonesia; Universitas Mahasaraswati Denpasar, Indonesia
