THE EFFECT OF OWNERSHIP STRUCTURE ON FIRM VALUE WITH PROFITABILITY AS AN INTERVENING VARIABLE (RESEARCH PERIOD 2020-2022)

This study quantitatively examines the effect of ownership structure (including managerial ownership, institutional ownership, and foreign ownership) on firm value through profitability. The samples in this study include manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2020-2022, selected though purposive sampling, and the secondary data involve the companies' financial reports. The results of the path analysis using two equation models show that, simultaneously, managerial ownership, institutional ownership, and foreign ownership affect firm value; partially, managerial ownership, institutional ownership, and profitability affect firm value; and foreign ownership does not affect firm value. In addition, the study reveals that the profitability is not able to mediate the effect of managerial ownership, institutional ownership, and foreign ownership on firm value.