The Influence of Investment Decisions and Funding Decisions on the Value of Companies with Ownership Structure as Moderated Variables in Manufacturing Companies Listed in Indonesia Stock Exchange (BEI)

Authors : Aqimissolati, Sulastri, Isnurhadi, Agustina Hanafi

Volume/Issue : Volume 5 - 2020, Issue 1 - January

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 Introduction This study examines the effect of investment decisions and funding decisions on firm value with institutional ownership as a moderating variable. In this study, investment decisions are measured by Current Asset to Total Assets (CATA) and Fixed Assets to Total Assets (FATA) while funding decisions are measured by Debt Equity Ratio (DER), institutional ownership is measured by (INST) and company value is measured by EV / EBITDA.  Purpose Analyzing the influence of investment decisions and funding decisions on the company's value in the manufacturing sector listed on the Indonesia Stock Exchange in 2014-2017.  Results The results showed that there was a positive and significant effect between CATA and DER on EV / EBITDA, while FATA had no effect on EV / EBITDA.  Conclusions The study was conducted on companies listed on the Indonesia Stock Exchange in the period 2014 to 2017. This study used as many as 87 manufacturing companies that met the criteria of sampling. This study was analyzed using multiple regression analysis and interaction tests and study also found that INST can strengthen the relationship between CATA and EV / EBITDA, weaken the relationship of DER and EV / EBITDA, and INST does not moderate the relationship between FATA and EV / EBITDA. The results of this study can be used by investors as a material consideration in terms of investment decisions and funding decisions, especially in manufacturing companies in Indonesia. Investors can choose a company that has good financial decisions and an appropriate portion of institutional ownership.

Keywords : Current Asset to Total Assets, Fixed Asset to Total Assets, Debt Equity Ratio, Institutional Ownership, Multiple EVs.


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