Does Foreign Ownership Affect Investment Decisions of Manufacturing Companies in Indonesia?

Authors

  • Ahmad Cahyo Nugroho Ministry of Industry
  • Muhammad Firdaus
  • Trias Andati
  • Tony Irawan

DOI:

https://doi.org/10.24203/ajas.v6i6.5546

Keywords:

Agency Problem, Foreign Ownership, Investments, Manufacturing

Abstract

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 method  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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Published

2018-12-19

How to Cite

Nugroho, A. C., Firdaus, M., Andati, T., & Irawan, T. (2018). Does Foreign Ownership Affect Investment Decisions of Manufacturing Companies in Indonesia?. Asian Journal of Applied Sciences, 6(6). https://doi.org/10.24203/ajas.v6i6.5546

Issue

Vol. 6 No. 6 (2018): December 2018

Section

Articles

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