Institutional ownership structure impacts firm value, governance and dividends crucial.
The study looked at how corporate governance, dividend policy, and capital structure affect ownership structure and firm value in Indonesian manufacturing firms. The researchers found that institutional majority ownership can lead to agency problems, but these can be reduced by good corporate governance and dividend policies, which can increase the company's value. While capital structure can help lessen agency problems, it doesn't directly impact the firm's value. Dividend policy and capital structure don't work together to solve agency problems.