Does Foreign Ownership Affect Investment Decisions of Manufacturing Companies in Indonesia?
Keywords:Agency Problem, Foreign Ownership, Investments, Manufacturing
Premature deindustrialization phenomenon indicated by decreasing manufacturing industry share on the economy faster than expected. Its reflected on the national investment target achievement in the manufacturing sector. This study aims to analiyze the agency problem in investment decision of manufacturing industry in Indonesia by considering foreign ownership. The panel data methodÂ used with an annual period from 2007 to 2016 and 100 samples of manufacturing companies listed on the Indonesia Stock Exchange (IDX). This study shows that agency problems occur in indonesian manufacturing companies. Foreign ownership indirectly affects the investment of manufacturing companies reflect better control on management decision.
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