Managerial Ownership Moderating Financial Determinants of Firm Value in Indonesian Resource Firms

Alfiati Silfi; Andreas Tan; Adhitya Agri Putra; Eka Hariyani

doi:10.32535/ijafap.v9i3.4575

Managerial Ownership Moderating Financial Determinants of Firm Value in Indonesian Resource Firms

Alfiati Silfi, Andreas Tan, Adhitya Agri Putra, Eka Hariyani

Abstract

In emerging markets, financial information does not always translate consistently into firm value because information asymmetry and governance conditions can affect how investors interpret financial signals. This study examines whether managerial ownership moderates the effects of financial determinants on firm value in Indonesian resource-based firms. Drawing on Agency Theory and Signaling Theory, panel data comprising 236 firm-year observations from energy, basic materials, and consumer non-cyclical companies listed on the Indonesia Stock Exchange (IDX) during 2021–2023 were analyzed using multiple regression and Moderated Regression Analysis (MRA). Profitability (t = 4.638, p < 0.001), accounting prudence (t = 2.923, p = 0.004), and tax planning (t = 2.624, p = 0.009) positively affected firm value, whereas leverage (p = 0.447) and liquidity (p = 0.675) had no significant effects. Managerial ownership strengthened the effects of profitability (t = 2.310, p = 0.022), accounting prudence (t = 3.100, p = 0.002), and tax planning (t = 2.015, p = 0.045), but did not moderate the effects of leverage or liquidity. The direct-effects model explained 17.9% of the variance in firm value (R² = 0.179), increasing to 23.1% after the interaction terms were included (R² = 0.231). These findings identify managerial ownership as a governance mechanism that enhances the credibility of selected financial signals in an emerging-market setting.

Keywords

Accounting Prudence; Emerging Markets; Firm Value; Managerial Ownership; Profitability; Tax Planning

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DOI: https://doi.org/10.32535/ijafap.v9i3.4575