The Effect of Ownership and Financial Performance on Firm Value of Oil and Gas Mining Companies in Indonesia

Hasanudin Hasanudin, Andini Nurwulandari, I. Made Adnyana, Novi Loviana

Abstract


This study aims to analyze the effect of institutional ownership, operating leverage, liquidity on firm value with company performance as an intervening in oil and gas mining companies listed in Indonesia Stock Exchange (IDX) between 2014-2018. A total of 10 companies classified in on the Indonesia Stock Exchange in the oil and natural gas mining sub-sector were used as sample, making the number of assessments to be 50 observations within a span of 5 years of 2014-2018. Data analysis using Partial least squares/PLS analysis with Structural Equation Modeling/SEM analysis model. The results of the study revealed that institutional ownership, operating leverage and liquidity have a positive influence on firm value. The mediating test by using the Sobel test showed that the firm's performance is able to mediate the effect of institutional ownership, operating leverage, liquidity on the the value of oil and gas companies in Indonesia

Keywords: energy companies, institutional ownership, operating leverage, liquidity, firm value, firm performance

JEL Classifications: L25, Q43

DOI: https://doi.org/10.32479/ijeep.9567


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