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Family Ownership Structure and Firm Value. case Study on Big-Cap Public Companies

Juniarti, (2014) Family Ownership Structure and Firm Value. case Study on Big-Cap Public Companies. In: 13th International Conference of the Society for Global Business Economic Development (SGBED),, 16-07-2014 - 18-07-2014, Ancona - Italia.

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    Abstract

    Some previous researches proved the positive association between family ownership and firm value or companies performance. Contrary with these results, Jiang and Peng (2011) found that Indonesia is one of the country in which family ownership structure has a negative association with firm value. Moreover, Claessen et al. (2000), stated that as of 16.6 of Indonesia’s public companies are controlled by a single majority shareholder. Claessens et al. (2000) also stated that higher entrenchment occurred in Indonesia together with Philipina and Thailand. Besides that the low law enforcement and the lowest corruption index in Indonesia (Jiang Peng 2011), add opportunity to the majority to expropriate the minority. Therefore, this research aims to prove that there is a negative association between family ownership structure and firm value in which negative entrenchment of the majority to minority exists. This study shows that family ownership has a significant negative effect on firm value at significance level of 10.

    Item Type: Conference or Workshop Item (Paper)
    Additional Information: Bantuan Seminar Luar Negeri Dikti Rp 25.00.000
    Uncontrolled Keywords: family ownership structure, firm value, negative entrenchment effect, expropriation
    Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
    Divisions: Faculty of Economic > Accounting Department
    Depositing User: Admin
    Date Deposited: 04 Jul 2014 21:48
    Last Modified: 29 Aug 2014 19:22
    URI: http://repository.petra.ac.id/id/eprint/17291

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