International Business Management

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The Effect of Ownership Structure on the Expropriation Risk

Nurul Fitri, Gugus Irianto and Endang Mardiati
Page: 392-396 | Received 21 Sep 2022, Published online: 21 Sep 2022

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Abstract

This study aims to analyze the impact of ownership structure on the expropriation risk. The risk of expropriation of using transactions related as a proxy in this study. This study was conducted in public companies engaged in non-financial sectors as well as active during the period 2008-2012 in the Indonesia Stock Exchange. This study uses a sample of 227 companies listed in the Indonesia Stock Exchange. The study found that institutional ownership, public ownership and family ownership have a positive effect on the risk of expropriation. This indicates that the agency theory of type 2 applies in Indonesia and the public company in Indonesia with transactions related high can increase the risk of expropriation impact.

How to cite this article:

Nurul Fitri, Gugus Irianto and Endang Mardiati. The Effect of Ownership Structure on the Expropriation Risk.
DOI: https://doi.org/10.36478/ibm.2017.392.396
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2017.392.396