The Effect of Institutional Ownership on Company Value Share ownership by

The effect of institutional ownership on company

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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 Value Managerial 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 Value Profitability 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
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The Indonesian Accounting Review Vol. 9, No. 1, January - June 2019, pages 27 - 38 31 by investors in making investment decisions that can affect the value of the company.
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