The study aims to investigate the relationship between stock ownership structure and financial decisions on market reaction and firm value. The number of samples in this study were 102 companies listed on the IDX. Research approach using explanatory. Test data analysis using a structural equation model.
The results of this study state that ownership structure has a significant negative effect on market reaction, financial decisions have a positive effect on market reaction. Capital ownership structure does not affect the value of the company, financial decisions have a positive effect on the value of the company. Market reaction has a positive effect on firm value.
The results of this study also confirm that ownership structure variables can stand alone to influence market reaction variables but ownership structure does not always affect the value of the company.
Keywords : Capital Ownership Structure, Financial Decision, Market Reaction, Corporate Value.