PENGARUH DIVERSIFIKASI DAN INSIDER OWNERSHIP TERHADAP CORPORATE GOVERNANCE DAN NILAI PERUSAHAAN
DOI:
https://doi.org/10.25170/jara.v12i2.89Keywords:
Diversification, insider ownership, corporate governance, firm valueAbstract
The objective of this study is to examine the effect of diversification and insider ownership on firm value. The sample used in this study is 95 firm's annual reporting from companies listed in Jakarta Stock Exchange in 2015. Structural Equation Approach used in this study to examine the effect of diversification and the other variable together on the firm value and the corporate governance.The results of this study show that diversification significantly affects the insider ownership. Furthermore, business diversification negatively significant affects the firm value. On the other hand, I find no evidence of the effect of diversification on the corporate governance index. The result of this study is different from the previous study in another country. The different result may be caused by the different international corporate governance practice.
References
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¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
Jensen, M. C. & Meckling, W. H. (1986). Agency costs of free cash flow, corporate finance and takeovers. American Economic Review Papers and Proceedings, 76, 323–329.
Jiraporn, P., Kim, Y.S. & Davidson III, W.N. (2005). CEO compensation, shareholders rights, and corporate governance. Journal of Economics and Finance,29(2), 242-258.
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Kim, W. S., Lee, J. W., & Francis, J. C. (1988). Investment performance of common stocks in relation to insider ownership.Financial Review, 23(1), 53-64.
Klapper, L.F. & Love, I. (2002). Corporate governance, investor protection, and performance in emerging markets. http://econ.worldbank.org.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2002). Investor protection and corporate valuation. Journal of Finance, 57, 1147–1170.
Lang & Doukas. (2003). Foreign direct investment, diversification and firm performance. Journal of International Business Studies, 34(2),153-172
Lang, Lany, & Stulz, R.M. (1994). Tobin's q, corporate diversification and firm performance, Journal of Political Economy,102, 1248-1280.
Li, M. & Wong,Y.Y. (2003). Diversification and economic performance: An empirical assessment of Chinese firms. Asia Pacific Journal of Management, 20, 243–265.
Lins, K., & Servaes, H. (Dec., 1999). International evidence on the value of corporate diversification. The Journal of Finance,54(6), 2215-2239.
Mansi, S., & Reeb, D.M. (2002). Corporate diversification: What gets discounted? Journal of Finance, 57, 2167–2184.
Mitton, T. (2002). A cross-firm analysis of the impact of corporate governance on the east Asian financial crisis. Journal of Financial Economics 64, 215–241.
Nelson, J. (2005). Corporate governance practices, CEO characteristics, and firm performance. Journal of Corporate Finance, 11, 197– 228.
Schoar, A. (Dec., 2002). Effects of corporate diversification on productivity, The Journal of Finance,57(6), 2379-2403.
Servaes, H. (1996). The value of diversification during the conglomerate merger wave. Journal of Finance, 51, 1201-1225.
Silveira & Barros. (2006). Corporate governance quality and firm value in Brazil. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=923310.
Villalonga, B. (2000). Diversification discount or premium? New evidence from BITS establishment level data. Unpublished manuscript. Los Angeles: University of California.
Villalonga, B. (2004). Does diversification cause the diversification discount. Financial Management, 33, 5–28.
Alves, C. & V. Mendes. (2004). Corporate governance policy and company performance: The Portuguese case. Corporate Governance: An International Review, 12(3).
Anderson, R. C., Bates, T. W., Bizjak, J. M., & Lemmon, M. L. (2000). Corporate governance and firm diversification. Financial Management, 29(1), 5-22.
Anderson, R.C., Mansi, S.A. & Reeb, D.M. (2002). Founding family ownership and the agency cost of debt. Http://www.ssrn.com.
Andres, Pd, Azofra, V. & Lopez, F. (2005). Corporate boards in OECD countries: Size, composition, functioning and effectiveness. Corporate Governance: An International Review, 13(2).
Ani, S.M. (2007). Pengaruh governance terhadap corporate social responsibility (Studi empiris pada perusahaan terdaftar di BEJ 2004-2005). Thesis Program Pascasarjana Ilmu Akuntansi Fakultas Ekonomi UI.
Arsjah, R, J. (2005). Hubungan corporate governance, nilai perusahaan, dan pengelolaan laba di Bursa Efek Jakarta. Disertasi Universitas Indonesia.
Beiner, S., W. Drobetz, M.M. Schmid, & H. Zimmermann. (2005). An integrated framework of corporate governance and firm valuation. http://www.ssrn.com.
Beinera, S. & Schmid, M.M. (2005). Agency conflicts, corporate governance, and corporate diversification– Evidence from Switzerland. http://www.ssrn.com.
Berger, P., & Ofek,E. (1995). Diversification's effect on firm value. Journal of Financial Economics, 37, 39-65.
Black, B., Jang H., HimW. (2006). Does corporate governance predict firm'smarket values? Evidence from Korea. J Law Econ Organ 2006a, 22,366–413.
Black, B.S., Jang, H. & Kim, W. (2003). Does corporate governance affect firm value? Evidence from Korea. http://www.sciencedirect.com.
Black, B.S., Jang, H. & Kim, W. (2005). Predicting firms’ corporate governance choices: Evidence from Korea. http://www.sciencedirect.com.
Campa, J.M.,& Kedia, S. (2002). Explaining the diversification discount. Journal of Finance, 57, 1731–1762.
Claessens, S., Djankov, S., Fan, J.,& Lang, L. (2002). Disentangling the incentive and entrenchment effects of large shareholdings. Journal of Finance, 57, 2741–2771.
Denis, D.J., Denis, D.K., & Yost, K. (Oct., 2002). Global diversification, industrial diversification, and firm value. The Journal of Finance, 57(5), 1951-1979.
Denis, D.J., Denis, D.K., & Sarin, A. (1997). Agency problems, equity ownership, and corporate diversification. Journal of Finance, 52, 135–160.
Denis, D.J., Denis, D.K., & Sarin, A. (Nov,1999). Agency theory and the influence of equity ownership structur e on corporate diversification strategies. Strategic Management Journal, 20(11), 1071-1076.
Doukas, J.A., Lang, L. H. P. (2003). Foreign direct investment, diversification and firm performance. http://www.ssrn.com.
Durnev, A. & Kim, E.H. (2002). To steal or not to steal: Firm attributes, legal environment, and valuation. University of Michigan Working Paper. www.ssrn.com. Edisi 7. Semarang: Badan Penerbit Universitas Diponegoro.
Fama, E. & Jensen, M. (1983). Separation of ownership and control. Journal of Law and Economics, 26, 301-325.
Ghazali, I. (2005). Model persamaan struktural. Semarang: Badan Penerbit Universitas Diponegoro.
Ghozali, I. (2014). Structural equation modeling. Teori,konsep, dan aplikasi dengan program Lisrel 9.10. Edisi 4. Semarang: Badan Penerbit Universitas Diponegoro.
Ghozali, I. (2016). Aplikasi analisis multivariate dengan program IBM SPSS 23, Semarang: Badan Penerbit Universitas Diponegoro.
Graham, J.R., Lemmon, M., & Wolf, J. (2002). Does corporate diversification destroy value? Journal of Finance, 59, 695–720.
Gujarati, D.N. (2003). Basic econometrics. 4th Edition. McGraw-Hill Higher Education.
Hair, J.F. Jr., Anderson, R.E., Tathan, R.L., & Black, W.C. (1998). Multivariate data analysis. Fifth Edition. Prentice-Hall International Inc.
Jensen, M. C. & Meckling, W. H. (1976). Theory of the firm: Managerial behaviour, agency cost, and ownership structure. Journal of Financial Economics, 3, 305-360.
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
Jensen, M. C. & Meckling, W. H. (1986). Agency costs of free cash flow, corporate finance and takeovers. American Economic Review Papers and Proceedings, 76, 323–329.
Jiraporn, P., Kim, Y.S. & Davidson III, W.N. (2005). CEO compensation, shareholders rights, and corporate governance. Journal of Economics and Finance,29(2), 242-258.
Jiraporn, P., Kim, Y.S.,Davidson,W.N., & Singh, M. (2005). Corporate governance, shareholder rights and firm diversification: An empirical analysis. http://www.ssrn.com.
Kim, W. S., Lee, J. W., & Francis, J. C. (1988). Investment performance of common stocks in relation to insider ownership.Financial Review, 23(1), 53-64.
Klapper, L.F. & Love, I. (2002). Corporate governance, investor protection, and performance in emerging markets. http://econ.worldbank.org.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2002). Investor protection and corporate valuation. Journal of Finance, 57, 1147–1170.
Lang & Doukas. (2003). Foreign direct investment, diversification and firm performance. Journal of International Business Studies, 34(2),153-172
Lang, Lany, & Stulz, R.M. (1994). Tobin's q, corporate diversification and firm performance, Journal of Political Economy,102, 1248-1280.
Li, M. & Wong,Y.Y. (2003). Diversification and economic performance: An empirical assessment of Chinese firms. Asia Pacific Journal of Management, 20, 243–265.
Lins, K., & Servaes, H. (Dec., 1999). International evidence on the value of corporate diversification. The Journal of Finance,54(6), 2215-2239.
Mansi, S., & Reeb, D.M. (2002). Corporate diversification: What gets discounted? Journal of Finance, 57, 2167–2184.
Mitton, T. (2002). A cross-firm analysis of the impact of corporate governance on the east Asian financial crisis. Journal of Financial Economics 64, 215–241.
Nelson, J. (2005). Corporate governance practices, CEO characteristics, and firm performance. Journal of Corporate Finance, 11, 197– 228.
Schoar, A. (Dec., 2002). Effects of corporate diversification on productivity, The Journal of Finance,57(6), 2379-2403.
Servaes, H. (1996). The value of diversification during the conglomerate merger wave. Journal of Finance, 51, 1201-1225.
Silveira & Barros. (2006). Corporate governance quality and firm value in Brazil. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=923310.
Villalonga, B. (2000). Diversification discount or premium? New evidence from BITS establishment level data. Unpublished manuscript. Los Angeles: University of California.
Villalonga, B. (2004). Does diversification cause the diversification discount. Financial Management, 33, 5–28.
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Published
2018-10-03
How to Cite
Sastrodiharjo, I. (2018). PENGARUH DIVERSIFIKASI DAN INSIDER OWNERSHIP TERHADAP CORPORATE GOVERNANCE DAN NILAI PERUSAHAAN. Jurnal Akuntansi, 12(2), 206–236. https://doi.org/10.25170/jara.v12i2.89
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