The Effect of Foreign Ownership on Firm Performance: Evidences from Indonesia

DOI

10.2991/aebmr.k.200410.037How to use a DOI?

Keywords

firm, foreign, monitoring, performance, ownership

Abstract

This study examines the effect of foreign ownership on firm performance using a panel data consisting of 66 non-financial firms listed in the Indonesia Stock Exchange. Five-year period data from 2014 to 2018 is considered. The result of the random effects model indicates that foreign ownership has a positive and significant effect on firm performance; foreign firm ownership is found to have more roles in encouraging performance than what foreign institutional investors can do. This result is consistent with the facts about foreign ownership in Indonesia, where high and stable foreign ownership, in the long run, is beneficial for domestic companies, due to effective monitoring, facilitation of technology usage, international market development, and professional management. The problems in this study is limited due to the fact that the firms being studied, either companies or institutions, are mostly owned by single foreign investors

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Mohammad Nofal
PY  - 2020
DA  - 2020/04/13
TI  - The Effect of Foreign Ownership on Firm Performance: Evidences from Indonesia
BT  - Proceedings of the 3rd Asia Pacific International Conference of Management and Business Science (AICMBS 2019)
PB  - Atlantis Press
SP  - 237
EP  - 242
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200410.037
DO  - 10.2991/aebmr.k.200410.037
ID  - Nofal2020
ER  -