Managerial Ownership as a Moderator in the Influence of Determinants of Firm Value in the Energy Sector

Nurmala Sari; Syafika Roslan; Idham Hadi

doi:10.70716/ecoma.v3i1.138

Authors

Nurmala Sari Manajemen, Universitas Mataram, Mataram, Indonesia
Syafika Roslan Manajemen Bisnis, Universiti Kebangsaan Malaysia, Selangor, Malaysia
Idham Hadi Manajemen, Universitas Mataram, Mataram, Indonesia

DOI:

https://doi.org/10.70716/ecoma.v3i1.138

Keywords:

managerial ownership, moderation, firm value, determinants, energy sector

Abstract

This study aims to analyze the role of managerial ownership as a moderating variable in the relationship between the determinants of firm value in the energy sector. In the dynamic energy sector, firm value is influenced by various factors, such as financial performance, company policies, and market perceptions. Managerial ownership is considered to have a significant influence because it can affect strategic decision-making, which impacts the sustainability and long-term performance of the company. This research uses a quantitative approach with regression analysis methods to examine the relationship between the determinants of firm value and managerial ownership in companies listed in the energy sector. The results show that managerial ownership can either strengthen or weaken the relationship between the determinants of firm value, depending on the level of influence managers have on strategic decisions. This study provides important insights into understanding how internal factors of a company, such as managerial ownership, can moderate the influence of external factors on firm value, particularly in industries that are highly dependent on regulation and macroeconomic factors, such as the energy sector. These findings can serve as a consideration for stakeholders in making investment decisions in the energy sector.

Downloads

Download data is not yet available.

References

Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301-325.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305-360.

Olawale, A., & Obinna, E. (2023). Corporate governance, institutional quality, and firm performance: A comprehensive analysis of the oil & gas sector. Journal of Finance and Economics, 11(3), 160-170.

Pätäri, S., Arminen, H., Tuppura, A., & Jantunen, A. (2014). Competitive and responsible? The relationship between corporate social and financial performance in the energy sector. Renewable and Sustainable Energy Reviews, 37, 142-154.

Saeed, U. F., Kamil, R., & Wiredu, I. (2024). The moderating role of technological innovation on ownership structure, financing decisions and environmental accounting disclosure. Cogent Business & Management, 11(1), 2396543.

Shan, Y. G. (2019). Managerial ownership, board independence and firm performance. Accounting Research Journal, 32(2), 203-220.

Short, H., & Keasey, K. (1999). Managerial ownership and the performance of firms: Evidence from the UK. Journal of corporate finance, 5(1), 79-101.

Smirnova, E., Kot, S., Kolpak, E., & Shestak, V. (2021). Governmental support and renewable energy production: A cross-country review. Energy, 230, 120903.

Westerman, W., De Ridder, A., & Achtereekte, M. (2020). Firm performance and diversification in the energy sector. Managerial Finance, 46(11), 1373-1390.

Xu, J., Akhtar, M., Haris, M., Muhammad, S., Abban, O. J., & Taghizadeh-Hesary, F. (2022). Energy crisis, firm profitability, and productivity: An emerging economy perspective. Energy Strategy Reviews, 41, 100849.

Yu, W., & Jin, X. (2024). Economic policy uncertainty and firm performance: Evidence from the energy-intensive industry in China. Energy & Environment, 35(2), 815-832.