Blockholder Ownership Foreign Ownership and Industry Type on Firm Value Through Financing Policy: An Empirical Evidence from Indonesia

This study aims to analyze the direct and indirect effects of blockholder ownership, foreign ownership, and industry type on firm value through funding policy. The research method employs quantitative analysis to examine the causal relationship between research variables, on the other hand, block holder ownership, foreign ownership, and industry type as independent variables, and firm value as the dependent variable with funding policy serving as an intervening variable. The research sample was 25 state-owned companies listed on the IDX, engaged in six sectors, namely financial services, energy, infrastructure, basic materials, health, and transportation & logistics. The analysis technique used path analysis. The findings of the study showed that blockholder ownership and foreign ownership had a direct effect on firm value, and did not have an effect through debt funding policy. Only the type of industry affected the firm value through funding policy. The novelty of the study by referring to the results of path analysis is that debt funding policy (DER) partially mediates the connection between the type of company and firm value. Logically empirically, it can be explained that the type of infrastructure company tends to have a large debt composition after being confirmed to get a tender for the development project auction. Thus, the type of industry will affect debt funding policy and at the same time affect the value of the company. On the other hand, block holder ownership negatively affects the value of the company.