THE EFFECT OF OWNERSHIP CONCENTRATION, LIQUIDITY, AND LEVERAGE TOWARDS FIRM PERFORMANCE: THE MODERATING ROLE OF POLITICAL CONNECTION

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Farrell, Juan (2025) THE EFFECT OF OWNERSHIP CONCENTRATION, LIQUIDITY, AND LEVERAGE TOWARDS FIRM PERFORMANCE: THE MODERATING ROLE OF POLITICAL CONNECTION. Undergraduate thesis, institute ipmi.

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Abstract

This study is conducted to analyze the effect ownership concentration, liquidity, and leverage towards firm performance with political connection as a moderating variable. This study examines 36 companies in the LQ-45 index during the period of 2017 to 2022. This study utilizes a quantitative approach and panel data analysis. The study found that ownership concentration has a significant effect and positive effect towards firm performance measured using Tobin’s Q. the study also found that ownership concentration negatively influences firm performance at a significant level when the firm has a political connection. Liquidity positively affects firm performance, and it is not at a significant level. Leverage negatively influences firm performance, and it is not significant to firm performance. The COVID-19 negatively and significantly influences firm performance of the stocks in LQ-45 Index. The findings of this research may help investors, fund managers, and pension funds by adding ownership concentration as a variable of consideration in choosing a stock.

Item Type: Thesis (Undergraduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Thesis > Bachelor of Business Administration
Depositing User: sandra margaretha
Date Deposited: 27 Feb 2025 08:23
Last Modified: 27 Feb 2025 08:23
URI: http://repository.ipmi.ac.id/id/eprint/2697

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