Institutional Investment Effect to Investment Efficiency with External Audit Quality as Moderating Variable in Indonesia

To increase the owner's company's value, effective investment is required. To investigate the link between institutional investors and investment efficiency, this study looks into the experience of the company's external auditors. Fixed effect regression analysis is used in the study to examine Indonesian companies between 2018 and 2022. According to this study, the presence of certified auditors who are specialized enhances the bond between institutional investors and the investment effectiveness of the business. Qualified auditors' financial statements will lessen information asymmetry, strengthening institutional investors' supervisory duties in relation to investment efficiency. According to this study, a company's investment efficiency is significantly impacted by institutional investors that have an insurance-like emphasis, and the sort of investment management that is under the supervision of certified auditors has a substantial influence as well.