The role of institutional ownership in strengthening to the enterprise value on the banking issuers


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This study examines the role of institutional ownership in moderating the relation between fundamental factors of a company and Corporate Social Responsibility (CSR) and Enterprise Value (firm value). The type of this research is an explanation research method. The sampling method was a proportional random sampling method of the population of banking companies of the Indonesian Stock Exchange. The method of data collection was documentation. The method of data analysis was Multiple Regression Analysis. The results of this study showed that simultaneous net profit margin and corporate social responsibility had a significant effect on the firm value. Partial test shows that net profit margin variables had an effect on the firm value and corporate social responsibility variables, which consist of economy, and had no influence on firm value. The results also indicated that institutional ownership strengthened the relation of fundamental factors and corporate social responsibility with the Enterprise Value.

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    • Figure 1. The levels of Indonesian companies disclosure
    • Figure 2. The levels of Malaysian companies disclosure
    • Figure 3. Several scenarios of an increase in the enterprise value with the NPM
    • Figure 4. Conceptual framework
    • Figure 5. Heteroscedasticity test
    • Table 1. Operational definition and variable measurement
    • Table 2. Descriptive statistics
    • Table 3. Normality test
    • Table 4. Multicollinearity test
    • Table 5. Autocorrelation test
    • Table 6. Results of the coefficient determination test
    • Table 7. F-test
    • Table 8. T-test
    • Table 9. Results of the first residual test
    • Table 10. Results of the second residual test