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 /
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.
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.
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.