The Effects of Family Ownership, Earnings Management and Ethnic Diversity For Firm Value

Abstract

This research aims to find out the relationship of family ownership, earnings management and ethnic diversity for firm value. The dependent variable used in this study is company value while the independent variables used are family ownership, earnings management and ethnic diversity. Other than that, this study also uses control variables. The control variables used are company size, company age, leverage and profitability.The population used in this study is mining companies listed on the Indonesia Stock Exchange in 2012-2017. The sampling method used is saturated sampling. The type of data used is secondary data obtained from the company's financial statements and annual reports.The results showed that family ownership, earnings management ethnic diversity, company size, company age and leverage do not effect on firm value, while profitability have a positive effect on firm value.

Keywords: family ownership, earnings management, ethnic diversity, firm value

DOI: 10.7176/RJFA/10-18-02

Publication date:September 30^th 2019