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The Effect of Ownership and Financial Performance on Firm Value of Oil and Gas Mining Companies in Indonesia

Author

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  • Hasanudin Hasanudin

    (Nasional University, Jakarta, Indonesia)

  • Andini Nurwulandari

    (Nasional University, Jakarta, Indonesia)

  • I. Made Adnyana

    (Nasional University, Jakarta, Indonesia)

  • Novi Loviana

    (Nasional University, Jakarta, Indonesia)

Abstract

This study aims to analyze the effect of institutional ownership, operating leverage, liquidity on firm value with company performance as an intervening in oil and gas mining companies listed in Indonesia stock exchange (IDX) between 2014 and 2018. A total of 10 companies classified in on the Indonesia Stock Exchange in the oil and natural gas mining sub-sector were used as sample, making the number of assessments to be 50 observations within a span of 5 years of 2014-2018. Data analysis using partial least squares/PLS analysis with structural equation modeling/SEM analysis model. The results of the study revealed that institutional ownership, operating leverage and liquidity have a positive influence on firm value. The mediating test by using the Sobel test showed that the firm s performance is able to mediate the effect of institutional ownership, operating leverage, liquidity on the the value of oil and gas companies in Indonesia.

Suggested Citation

  • Hasanudin Hasanudin & Andini Nurwulandari & I. Made Adnyana & Novi Loviana, 2020. "The Effect of Ownership and Financial Performance on Firm Value of Oil and Gas Mining Companies in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 103-109.
    • Handle: RePEc:eco:journ2:2020-05-13
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Benny Alexandri & Supriyanto, 2021. "The Influence of Oil Price Volatility and Price Limit in Indonesia Energy Sub-Sector for the Period Before and After Covid-19," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 538-544.
    2. Steward Gani & Rasinta Ria Ginting & Enda Noviyanti Simorangkir, 2022. "Does Dividend Policy Mediate the Relationship Between Financial Performance and Company Value?," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 89-100, December.
    3. Selamet Joko Utomo & Titov Chuk's Mayvani & Mochamad Ali Imron, 2021. "Coal Energy and Macroeconomic Conditions," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 426-432.
    4. Supriyanto Supriyanto & Suripto Suripto & Arif Sugiono & Putri Irmala Sari, 2021. "Impact of Oil Prices and Stock Returns: Evidence of Oil and Gas Mining Companies in Indonesia during the COVID-19 Period," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 312-318.

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    More about this item

    Keywords

    energy companies; institutional ownership; operating leverage; liquidity; firm value; firm performance;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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