Covermanagerial And Institutional Ownership The Differences Of Agency Cost Level And Firm Performances

Abstract

This study is about an institutional and managerial ownership and focuses on analyzing the difference of agency cost and firm performance in companies with institutional and managerial ownership. This study is aimed to examine the influence of the existence of institutional and managerial ownership in agency cost and firm performances aspects. The data collection used by the researcher is the purposive sampling method with the samples manufacturing companies listed in Indonesia Stock Exchange in 2006 -2010 which are 47 manufacturing companies with institutional ownership and 39 manufacturing companies with managerial ownership. The results of this study indicated that there are significant differences of expense ratio and firm values between manufacturing companies with institutional and managerial ownerships. While variables that did not show the significant differences in companies with institutional and managerial ownership are asset utilization ratio, ROE, ROA, and stock return. Key words: Manufacturing Companies, Managerial Ownership, Institutional Ownership, Agency Cost, Firm Performances