The Influence Of Managerial Ownership, Institutional And Firm Size On Company Value

The company was founded with the purpose to prospering company owners or shareholders.To realize this goal,the shareholders cede management to a Manager,and hope Manager could increase the value of the company,because the main purpose of a corporation is to maximize the value of the company.The high value of the company can increase prosperity for shareholders,so that shareholders will invest their capital to the company.But when the handover management occurred,management conflict of interest occur between manager and shareholders.Differences of interest arise from the existence of different interests between managers and shareholders and resulted in conflicts called agency conflict,it happens because managers prioritizes personal interests,whereas shareholders do not like the personal interests of managers because what the manager does will increase the cost for the company,that causing a decrease in profits on the company and its effect on the share price,so that lower the value of the company.This research purpose to test the influence of managerial ownership against the value of the company,to test the influence of institutional ownership against the value of the company,and firm size influence against the value of the company.The value of the company in this study is measure by Tobin’s Q.Data collection using a purposive sampling method against the private financial companies listed on the Indonesia stock exchange in 2007 to 2009.As many as 30 private financial companies that are used as samples.The research of methods of analysis using multiple regression.The results of this research indicate that the variable managerial ownership and firm size influential positive against the value of the company.While institutional ownership variables does not affect the value of the company.