Institutional ownership and profitability drive company value in Indonesian manufacturing firms.
The study looked at how institutional ownership, company diversification, and profitability affect the value of manufacturing companies in Indonesia. They used data from 2014 to 2018 and found that institutional ownership, total diversification, and profitability (measured by return on equity) all have a significant impact on company value. However, sales segment diversification did not show a significant effect on company value. Overall, institutional ownership, diversification, profitability, and company size together influence a company's value.