The Effect of Institutional Ownership on Company Value Share ownership by institutional investors is one of the factors that can be considered in investing because with the institutional ownership, a company has good corporate value. Company image is what the invetors view regarding the quality and performance of a company. With a good image, the company can be said to have good performance and will have an impact on the quality of the company and can increase the value of the company. Institutional ownership can oversee all company activities by utilizing information held by institutions so that the company has good performance. It can be concluded that the higher the institutional ownership, higher the company value. This is in accordance with the agency theory that decribes relationships that occur between the shareholders or institutional ownership (principals) and management (agents) in corporate decision making that can affect the value of the company.The Effect of Managerial Ownership on Com-pany ValueManagerial share ownership is one of the factors that can be considered in investing because with the managerial ownership, a company has good corporate value. Company image is what the investors view regarding the quality and performance of a company. With a good image, the company can be said to have good performance and will have an impact on the company quality and can increase their company value. Managerial ownership can oversee all company internal activities directly so that the company has good quality and performance. It can be concluded that the higher the managerial ownership, the higher the value of the company. It is in accordance with the agency theory that the relationships that occur between the shareholders (principals) and managerial ownership (agents) in corporate decision making can affect the value of the company.The Effect of Profitability on Company ValueProfitability is one of the measurements used by investors to determine whether a company is healthy or not, thus profitability is one of the attractions for investors to invest in a company. If profitability is high, the value of the company will also be high, whereas if the profitability is low, the value of the company will also be low. Profitability is closely related to company sales. Consumers tend to use a product or service produced or provided by a good or reputable company, so, in this regard, company value is very important. Company with a good image can generate high sales and will have an impact on high profitability, followed by a high value of the company. It is in accordance with signaling theory that a company must present complete, relevant, and accurate information about the profitability of the company because the information is needed
The Indonesian Accounting Review Vol. 9, No. 1, January - June 2019, pages 27 - 3831by investors in making investment decisions that can affect the value of the company.
As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.
KiranTemple University Fox School of Business ‘17, Course Hero Intern
I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.
DanaUniversity of Pennsylvania ‘17, Course Hero Intern
The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.
JillTulane University ‘16, Course Hero Intern
Stuck? We have tutors online 24/7 who can help you get unstuck.
Ask Expert Tutors
You can ask
You can ask
You can ask
(will expire )