STRUKTUR KEPEMILIKAN, RISIKO, DAN KEBIJAKAN KEUANGAN: ANALISIS PERSAMAAN SIMULTAN

Abstract

The research explores using simultaneous regression, to examine the interdependence
relationship between managerial ownership, risk, dividend policy, institutional ownership,
and leverage policy for Indonesian capital market. The research tries to explain how the
relationships in financial policy for manufacture firms in Indonesia. We use five models of
regression to represent five different policies in firms that reflect the agency issues and
conflict of interest between agent (manager), and principal (insider and outsider
shareholders). Jensen and Meckling (1976) argued that agency problem arise from
separation of ownership and control. Each of five policies in this research is represent
conflict of interest between agent and principal. The research combined models from
Crutchley, Jensen, Jahera and Raymond (1999), and Chen and Steiner (1999) to construct five-regression policies model.
We find interdependence relationship between managerial ownership, risk, dividend
policy, institutional ownership, and leverage policy. We also find substitution effect
between dividend policy and managerial ownership, and between managerial ownership
and institutional ownership as predicted by agency theory. The substitution effect showed
that ownership structure effectively used to reduce the agency problem between agent and principal. The study confirms that the relationship between risk and dividend is non-linear.

Keyword: Agency Theory; Managerial Ownership; Risk; Dividend Policy; Debt Policy.