THE EFFECT OF FOREIGN OWNERSHIP ON THE FINANCIAL PERFORMANCE OF MANUFACTURING COMPANIES
Article Sidebar
Main Article Content
Abstract
This increase in competition forces companies to always make technological improvements and improvements in corporate governance so that there is harmony between the interests of managers, investor, and other stakeholders. The impact of foreign ownership in Indonesian companies as a form of GCG could increase the company's financial performance. This study aims to prove empirically how foreign ownership can affect the financial performance of a public manufacturing company. The financial report data used as the research sample is in the form of secondary data for companies listed on IDX from 2017-2020. This research was assisted by the software program EViews 10. The test results are that foreign ownership by both companies and foreign individuals/citizens has no positive effect on the financial performance of manufacturing companies listed on the IDX.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
IJAEB by Graduate Program of Universitas Tarumanagara is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.. Permissions beyond the scope of this license may be available at https://journal.untar.ac.id/index.php/ijaeb
References
A.D. Araujo. Analisis Return on Assets dan Return on Equity untuk Mengukur Kinerja Keuangan. Universidade Da Paz Timor Leste, (2013) 1-32.
Ryansah Obis. Good Corporate Governance danPenerapannya di Indonesia. Retrieved from:https://kawanhukum.id/good-corporate-governance-dan- penerapannya-diindonesia/.
Putu Rima Jayantri & A. A. Ngurah Eddy Supriyadinata Gorda. Pengaruh Penerapan Good Corporate Governance dan Keberadaan Awig-Awig terhadap Kinerja Keuangan Lembaga Perkreditan Desa dengan Budaya Tri Hita Karana sebagai Variabel Moderasi. Jurnal Penelitian dan Pengembangan Sains dan Humaniora. 4(1) (2020) 60-70. Retrieved from: https://ejournal.undiksha.ac.id/index.php/JPPSH.
Mittal Shikha Shrivastav & Anjala Kalsie. TheRelationship between foreign ownership and firmperformance in India: An empirical Analysis. ACADEMIA.LIX(2) (2017) 152- 162.
Makoto Nakano & Pascal Nguyen. Foreign ownership and firm performance: evidence from Japan's electronics industry. Applied Financial Economics 23(1) (2013) 41-50. DOI: https://doi.org/10.1080/09603107.2012.705425
Xuân Võ Vinh. Foreign ownership and firm performance: evidence in Vietnam. Journal of Economic Development 221 (2014) 85-104. Retrieved from: http://jabes.ueh.edu.vn/ home/SearchArticle?article_Id=308 c551b-c230-b2c2-3c07-87b5ca09dda3.
Tariq Tawfeeq Yousif Alabdullah. The relationship between ownership structure and firm financial performance: Evidence from Jordan. Benchmarking: An International Journal 25(1) (2018) 319-333. DOI: https://doi.org/10.1108/BIJ-04-2016-0051
Selviana Nugrahawati. Pengaruh Struktur Kepemilikandan Ukuran Perusahaan Terhadap Kinerja Keuangan(ROA): Studi Empiris Perusahaan Manufaktur yang terdaftar di BEI tahun 2015-2016. Jurnal Akuntansi dan Bisnis (2019). Retrieved from: http://eprints.ums. ac.id/71575/
M.C. Jensen & W.H. Meckling. Theory of the Firm; Managerial Behavior, Agency Cost and Ownership Structure. Journal of Financial Economics 3(4) (1976) 305-360. DOI: https://doi.org/10.1016/0304-405X(76)90026-X
Murti Sari Dewi & Erly Mulyani. Pengaruh Kepemilikan Asing/ Leverage. Cash Holding, and Debt Maturity Terhadap Kinerja Keuangan Perusahaan. Jurnal Eksplorasi Akuntansi 2(3) (2020) 2893-2911. DOI: https://doi.org/10.24036/jea.v2i3.258
Çiğdem Vural Yavaş, S. Erdoğan. The Effect of Foreign Ownership on Firm Performance: Evidence from Emerging Market. Australian Academy of Accounting and Finance Review 2(4) (2017) 363-371.
Yulius Ardy Wiranata & Yeterina Widi Nugrahanti. Pengaruh Struktur Kepemilikan Terhadap Profitabilitas Perusahaan Manufaktur di Indonesia, Jurnal Akuntansi dan Keuangan 15(1) (2013) 15-26. DOI:https://doi.org/10.9744/jak.15.1.15-26
J. W. Creswell. Research Design: Qualitative, and Mixed Methods Approaches. (2014). USA: Sage Publications, Inc
Ulfiyati Ulfiyati, Linda Lambey, & Stanley Kho Walandouw. Analisis Perbedaan Struktur Kepemilikan Asing Dan Struktur Kepemilikan Domestik Pada Perusahaan Pertambangan Di Bursa Efek Indonesia. JurnalEMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi 5(2) (2017). 2260–2267. DOI:http://dx.doi.org/10. 35794/emba.v5i2.16528.
Michael Carneya, Saul Estrinb, Zhixiang Lianga, & Daniel Shapir. National institutional systems, foreign Ownership, and firm performance: The case of understudied countries, Journal of World Business, 1-4. (2018). DOI: https://doi.org/10.1016/j.jwb.2018.03.003.
Mohamed Fellague, Kherchi Ishak, & Haddou SamiraAhlem. Corporate Recofusing and Financial Performance.International Journal of Information, Business andManagement 12(1) (2020). 199-213. Retrieved from:https://www.researchgate.net/profile/Kherchi_ Ishak/publication/340666551_CORPORATE_REFOCUSING_AND_FINANCIAL_PER FORMANCE/links/5e9855914585150 839e10795/CORPORATE-REFOCUSING-ANDFINANCIAL-PERFORMANCE.pdf
Sidra Ali Mirza1 & Attiya Javed. Determinants of financial performance of a firm: Case of Pakistani stock market. Journal of Economics and International Finance, 5(2) (2013) 43-52. DOI: https://doi.org/10.5897/JEIF12.043
Rudianto. Akuntansi Manajemen: Informasi untuk Pengambilan Keputusan Strategis (2013). Jakarta: Erlangga.
Yuyun Isbanah. Pengaruh ESOP, Leverage, dan Ukuran Perusahaan Terhadap Kinerja Keuangan Perusahaan di Bursa Efek Indonesia. Journal of Research inEconomics and Management 15(1) (2015). 28-41. DOI: http://dx.doi.org/10.17970/jrem.15.150103.ID
Lawrence J. Gitman & C.J. Zutter. Principles of Managerial Finance, 13th Edition (2012) Edinburgh: Pearson.
Donald E. Kieso, Weygandt, J. J., Warfield, T.D., Intermediate Accounting: IFRS Edition 3rd Edition (2018) Wiley.
Indah Kurniawati & Puput Tri Komalasari. Pengaruh Kepemilikan Negara dan Asing Terhadap Corporate Risk Taking. Jurnal Manajemen Teori dan Terapan 7(2) (2014) 102- 115. Retrieved from: https://ejournal.unair.ac.id/JMIT/article/download/2704/1963
Sami RM Mussalam. Relationships between Ownership Structures and Corporate Performance: Evidence from Malaysia. Mediterranean Journal of Social Sciences 6(3) (2015)70-76. DOI: https://doi.org/10.5901/mjss 2015.v6n3s1p70.
S. Balagobei & T.A. Velnampy. Study on Ownership Structure and Financial Performance of Listed Beverage Food and Tobacco Companies in Sri Lanka. International Journal of Accounting and Financial Reporting 7(2) (2017)36-47. DOI: https://doi.org/10.5296/ijafr.v7i2.1151.
Ghodratallah Talebria, Mahdi Salehi, Hashem Valipour, & Shahram Shafee. (2010). Empirical Study of the Relationship between Ownership Structure and Firm Performance: Some Evidence of Listed Companies in Tehran Stock Exchange. Journal of Sustainable Development, 3 (2) (2010) 264-270. DOI: http://dx.doi.org/10.5539/jsd. v3n2p264
Jessica T.A Tambunan & Bulan Prabawani. Pengaruh Ukuran Perusahaan, Leverage, dan Struktur Modal Terhadap Kinerja Keuangan Perusahaan (Studi pada Perusahaan Manufaktur Sektor Aneka Industri Tahun 2012-2016). Jurnal Ilmu Administrasi Bisnis, 7(2) (2018) 130-140. Retrieved from:https://ejournal3.undip.ac.id/index.php/jiab/article/ view/20329.
Neneng Susanti, Naibaho Paulus T.P, Dinny Setiani, Terry Winardi, & Arina Sanimuthi. Influence Firm Size, Leverage, Liquidity, and Asset Management to Company Performance. D E G R E S 20(2) (2021) 236–247. DOI: https://doi.org/10.1877/degres. v20i2.91
Elis Listiana Mulyani & Asep Budiman. Analisis Pengaruh Kualitas Aset, Likuiditas, Solvabilitas, Aktivitas dan Non-Performing Loan terhadap Kinerja Keuangan Jurnal Ekonomi Manajemen 3(1) (2017) 11-17. DOI: https://doi.org/10.37058/jem.v3i1.321
Samuel Kanga Odalo & George Achoki. Liquidity andFinancial Performance in Agricultural Firms listed in the Nairobi Securities Exchange in Kenya. International Journal of Business and Social Science, 7 (7) (2016) 57-65. Retrieved from: https://ijbssnet.com/journals/Vol_7_No_7_July_2016/6.pdf.