How firm size moderates the impact of managerial ownership, institutional ownership, and capital structure on financial performance

Nawirah, Nawirah ORCID: https://orcid.org/0000-0002-2720-3612 (2026) How firm size moderates the impact of managerial ownership, institutional ownership, and capital structure on financial performance. Jurnal Ilmiah Akuntansi dan Finansial Indonesia, 9 (2). pp. 14-25. ISSN 2684-8244

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Abstract

This research examines the factors that impact financial results in Indonesian property and real estate companies which operate under changing monetary policies and increasing financing expenses between 2022 and 2024. The sector needs to evaluate its governance and financing systems because Return on Equity (ROE) has shown inconsistent growth patterns. The research measures how managerial ownership, institutional ownership, and capital structure affect financial performance, with firm size acting as a moderating variable. This study applies panel data from 38 companies, resulting in 144 observations selected through non-probability sampling. Secondary data were obtained from annual reports and analyzed using panel data regression with a random-effects model. The findings indicate that capital structure has a positive and significant effect on ROE, while managerial and institutional ownership do not significantly influence financial performance. Firm size does not moderate the relationship between ownership structure and ROE, but it weakens the effect of capital structure on financial performance. The results suggest that debt policy plays a more important role than ownership structure in improving company performance, particularly in capital-intensive industries, and support agency theory regarding the disciplinary role of debt.

Item Type:	Journal Article
Keywords:	managerial ownership; institutional ownership ; capital structure ; firm size; financial performance
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics
Divisions:	Faculty of Economics > Department of Accounting
Depositing User:	Nawirah nn Nawirah
Date Deposited:	17 Jun 2026 09:02

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