The Influence of Good Corporate Governance, Ownership Structure, Company Size on Market Reactions in Manufacturing Companies Listed on the Indonesia Stock Exchange

International Journal of Economics and Management Studies

© 2021 by SSRG - IJEMS Journal

Volume 8 Issue 10

Year of Publication : 2021

Authors : Selvi, Lanto Miriatin Amali, Abdul Wahab Tunus, Intan Pakaya

10.14445/23939125/IJEMS-V8I10P113

How to Cite?

Selvi, Lanto Miriatin Amali, Abdul Wahab Tunus, Intan Pakaya, "The Influence of Good Corporate Governance, Ownership Structure, Company Size on Market Reactions in Manufacturing Companies Listed on the Indonesia Stock Exchange," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 10, pp. 97-105, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I10P113

Abstract:

The phenomenon of the decline in the contribution of the manufacturing industry to Gross Domestic Product (GDP) shows that the performance of companies in the manufacturing industry is not in good condition so that it can affect the market reaction, which tends to respond negatively. There are still inconsistencies in the factors that influence market reactions as measured by stock prices in several previous research results, so that the purpose of this study is to find out how the influence of good corporate governance ownership structure of company size on market reactions both simultaneously and partially in manufacturing companies listed on the Stock Exchange. Indonesian Securities for the 2015-2019 period. The method used is panel data regression. Research Results Conclude that Good Corporate Governance as measured by the board of directors, board of commissioners has a negative and significant effect on market reactions, but the audit committee has a positive and significant effect on market reactions in 52 issuers during 2017-2019. Company size, as measured by the natural logarithm of total assets, has a positive effect on the market reaction. The greater the total assets owned by the company in the 52 issuers during 2017 to 2019 it will increase the market reaction. Ownership structure as measured by managerial ownership has a positive but not significant effect on market reactions, whereas institutional ownership has a negative and significant effect on market reactions. An increase in institutional ownership will trigger a decrease in market reaction.

Keywords:

Company Size, Good Corporate Governance, Market Reaction, Ownership Structure.

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