How Do Shareholding Pattern Predict Market Value? Evidence from Indonesia

Abstract

The research investigates how do the effect of shareholding pattern to the company market value. The Shareholding pattern used to predict market value consist of managerial ownership, institutional ownership, and public ownership, while company market value is measured used to Tobin's Q. The research method used descriptive and verificative method. Statistical analysis applied the Panel Data Regression Model using t test and F test. The unit analysis in this research are all the mining industry listed in IDX for the period 2014-2018. The purposive sampling technique with the type of judgment sampling is using as a sampling method and as a result we have 40 samples. The results findings showed that managerial ownership have positive correlation with the company market value and have significant effect to the company market value. Institutional ownership have positive correlation with the company market value, but do not showed significant effect to the company market value. Public ownership have positive correlation with the company market value and have significant affect to the company market value.