Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia

Research Article

Impact of Institutional Ownership and Compensation on Investment Efficiency

Download344 downloads
  • @INPROCEEDINGS{10.4108/eai.5-8-2020.2301101,
        author={Prita Esita and Muhammad Faisal and Maulida Nurul Innayah and Dwi Wirnani and Bima Cinintya Pratama},
        title={Impact of Institutional Ownership and Compensation on Investment Efficiency},
        proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020,  5 - 6 August 2020, Purwokerto, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2020},
        month={10},
        keywords={institutional ownership; compensation; investment efficiency},
        doi={10.4108/eai.5-8-2020.2301101}
    }
    
  • Prita Esita
    Muhammad Faisal
    Maulida Nurul Innayah
    Dwi Wirnani
    Bima Cinintya Pratama
    Year: 2020
    Impact of Institutional Ownership and Compensation on Investment Efficiency
    ICBAE
    EAI
    DOI: 10.4108/eai.5-8-2020.2301101
Prita Esita1,*, Muhammad Faisal2, Maulida Nurul Innayah1, Dwi Wirnani1, Bima Cinintya Pratama1
  • 1: Universitas Muhammadiyah Purwokerto
  • 2: Universitas YARSI
*Contact email: pritaesita@ump.ac.id

Abstract

The purpose of the research is to study the effect of Institutional Ownership, Compensation on Investment Efficiency in companies which are listed on the Indonesian stock exchange (IDX) in 2017 . The population of the research are all listed companies in IDX for the period 2017. The sampling method of this research is used purposive sampling with a total sample of 532 companies which consist of financial industry, mining, and infrastructure, utilities and transportation. To test the hypothesis of this research, we use path analysis. The results show that Institutional Ownership, Compensation disclosure has a significant possitive effect on Investment Efficiency, which means. t he highest level of compensation and institutional ownership of the company, the more efficient the company is in disclosing its investment.