Tarjo, - (2008) Pengaruh Konsentrasi Kepemilikan Institusional Dan Aliran Kas Bebas Terhadap Leverage, Manajemen Laba, Nilai Pemegang Saham Serta Cost Of Equity Capital. Disertasi thesis, UNIVERSITAS AIRLANGGA.

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Abstract

This aimed of this study is to analyze the effect of institutional ownerships concentration and free cash flows towards leverage, earnings management, shareholders value and cost of equity capital. This study is based on the agency theory, free cash flow theory, and economic consequences. This study is performed using field research. Data were collected from The Indonesian Capital Market Directory (ICMD). The population in this study is 100 firms which are listed at the Jakarta Stock Exchange and derived using some criteria. The sample in this study is 100 firms which are listed at the Jakarta Stock Exchange from 2004-2005. This study use Partial Least Square technique. The result showed that earnings management is negatively affected by institutional ownerships concentration and positively affected by leverage. Shareholders value is negatively affected by leverage. Cost of equity capital is positively affected by institutional ownerships concentration, earnings management, and shareholders value. The findings reject first hypothesis. The findings might be of interest to investors and creditors to make investment and credit decision. The study contributed to the literature in that has shown that earnings management is driven by shareholders value increasing rather than motive opportunistic management. Institutional ownerships concentration is positively reacted by capital market, SO that evidence of them are not expropriation on minority shareholder's and capital market.

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