THE INFLUENCE OF OWNERSHIP STRUCTURE AND FIRM GROWTH ON COMPANY FINANCIAL PERFORMANCE WITH FIRM SIZE AS THE MODERATING VARIABLE (An Empirical Study on Go Public Textile Companies Listed in Indonesia Stock Exchange for the period 2012-2016)

Abstract

This study aimed to determine the influence of ownership structure and firm growth on the financial performance, as well as the role of firm size as a moderating variable on the ownership structure towards financial performance, and as a moderating variable on the firm growth towards financial performance. The type of study is an empirical study conducted on Go Public Companies listed in Indonesia Stock Exchange. The research sample was taken by a purposive sampling with the following criteria: (1) textile companies, (2) listed in Indonesia Stock Exchange for the period 2012 – 2016, (3) audited annual financial statements can be accessed directly during 2012 – 2016, thus it was obtained 16 companies. The data used in this study collected from the audited annual financial statements of the sample company. Data analysis methods to test the hypotheses were simple regression and moderated regression analysis (MRA). The results of this study indicated that: (1) Ownership structure had a positive and significant effect on the financial performance. It proved that the more ownership structure owned by institutions, the higher the financial performance of its company; (2) Firm growth had a positive and significant effect on the financial performance. It proved that the higher the growth of the company, the higher the financial performance of its company; (3) Firm size had a significant positive effect as a moderating variable towards the ownership structure on the financial performance. It proved empirically that, the bigger the size of the company, the stronger the influence of ownership structure on the financial performance; (4) Firm size had a significant positive effect as a moderating variable towards firm growth on the financial performance. It proved empirically that, the bigger the size of the company, the stronger the influence of firm growth on the financial performance.