An Effecting of Foregin Ownership Structure in Firm Value Towards Offshore Debt Financing in Manufacturing Firms

Abstract

To determine the effect of foreign ownership structure in firm value with offshore debt financing as a mediator variable for manufacturing firms which listed in Indonesia Stock Exchange (IDX) from 2014-2016 periods, there are some control variables that has affected firm value; debt level, profitability, liquidity, firm size, sales and firm age. Using an associative causal method and secondary data obtained from financial statements published. Sampling has done with purposive sampling method and some criterion given; apply a multiple linear regression tests. This research result that foreign ownership structure influence to firm value, foreign ownership structure effect on the tendency to use offshore debt financing, offshore debt financing affect the firm value. Offshore debt financing mediate the relationship between foreign ownership structure and firm value, profitability affects the firm value, liquidity has no effect to the firm value, firm size does not affect to firm value, sales growth does not affect to firm value and firm age does not affect firm value.

Keywords: firm value, foreign ownership structure, offshore debt financing, debt level, profitability, liquidity, firm size, sales growth, and firm age.