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.
|Publication status||Published - 2017|
|Event||The Indonesian Journal of Accounting Research (IJAR) - ID, Jakarta, Indonesia|
Duration: 1 Jan 2017 → …
|Conference||The Indonesian Journal of Accounting Research (IJAR)|
|Period||1/01/17 → …|
- Stock Repurchase, Ownership Structure, Institutional Investors, Managerial Ownership.