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

Abstract

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.