The Mediating Role of Debt Policy in Ownership Structure on Company Financial Performance

This research investigates the relationship between managerial ownership structure, ownership concentration, and their impact on a company's financial performance, with a particular focus on the mediating role of debt policy. The analysis tool used in this study is SEM (Structural Equation Modeling. The research data sample is non-cyclist consumer goods sector companies listed on the IDX for the 2019-2023 period. The results of the analysis show that managerial ownership does not significantly affect financial performance. Ownership concentration has no significant effect on economic performance. Debt policy has a negative and significant effect on financial performance. From the mediation role test, debt policy does not mediate the impact of managerial ownership on economic performance. Debt policy can mediate the effect of ownership concentration on financial performance. The implication of the research results is that companies with concentrated ownership should consider leveraging debt policy to improve financial performance, as it encourages external supervision and efficient capital use.