The Influence of Ownership Structure on Stock Repurchase Policy of Companies Listed in Indonesia Stock Exchange

Research output: Contribution to conferencePaperpeer-review

Abstract

This study examines the influence of ownership structure on firms in Indonesia for their stock repurchase policy aimed to distribute excess funds to stockholders. Ownership structure studied consists of institutional ownership and managerial ownership. A sample of this study consists of 41 companies listed in the Indonesia Stock Exchange that repurchased their stocks from 2004 to 2013. The results showed that institutional investors and managerial ownership negatively affect the stock repurchase. Institutional ownership is considered able to be a useful monitoring tool to monitor the use of free cash flow in the company and mechanisms of control by the manager himself against the use of free cash flow is considered good. Moreover, they prefer to invest surplus funds in developing the company's business enterprises.
Original languageEnglish
Publication statusPublished - 2017
EventThe Indonesian Journal of Accounting Research (IJAR) - ID, Jakarta, Indonesia
Duration: 1 Jan 2017 → …

Conference

ConferenceThe Indonesian Journal of Accounting Research (IJAR)
CountryIndonesia
CityJakarta
Period1/01/17 → …

Keywords

  • Stock Repurchase, Ownership Structure, Institutional Investors, Managerial Ownership.

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