THE ROLE OF DEBT IN MODERATING THE INFLUENCE OF OWNERSHIP STRUCTURE ON COMPANY PERFORMANCE IN THE MANUFACTURING SECTOR LISTED ON THE IDX

This study examines the role of debt as a moderating variable in the relationship between ownership structure and company performance in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) during 2021-2022. Focusing on institutional and managerial ownership, the study investigates how these factors influence company performance using agency theory. A sample of 220 manufacturing companies was analyzed through linear regression. The findings reveal that managerial ownership significantly positively impacts company performance, while debt moderates this relationship with a significant negative effect. Conversely, institutional ownership has no significant effect on company performance, nor does debt as a moderating factor in this context. The study offers insights into the dynamics of ownership structure and its impact on performance, serving as a reference for strategic decision-making in the manufacturing industry.