Empirical Model Analysis: The Effect of Management Ownership on The Use Of Free Cash Flows

Proceedings of the Proceedings of the 1st International Conference on Engineering, Science, and Commerce, ICESC 2019, 18-19 October 2019, Labuan Bajo, Nusa Tenggara Timur, Indonesia Pub Date : 2019-12-09 DOI:10.4108/eai.18-10-2019.2289983

R. Suharto, D. Junias, M. Elim

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引用次数: 1

Abstract

Research on the role of ownership is still an important debate in relation to the company's strategic policies. This relates to important decision making regarding the use of funds for operational and funding / investment purposes. Likewise, free cash flow where there are pros and cons in using it to increase company value. This debate is due to differences in the interests of each individual in management. The first hypothesis testing results proved that managerial ownership by the board of commissioners and directors tends to reduce the use of free cash flow for unprofitable activities. This research also proves the managerial role in utilizing free cash flow for investment purposes very well. The second hypothesis testing shows a significant coefficient value and is able to explain that the existence of managerial ownership will be able to increase the value of the company through investment activities sourced from free cash flow.

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实证模型分析:管理层持股对自由现金流使用的影响

关于所有权作用的研究仍然是一个与公司战略政策相关的重要争论。这涉及到为业务和筹资/投资目的使用资金的重要决策。同样地，自由现金流在使用它来增加公司价值方面有利有弊。这种争论是由于每个人在管理方面的利益不同。第一个假设检验结果证明，由董事会和董事组成的管理层所有权倾向于减少自由现金流用于无利可图的活动。本研究也证明了管理在利用自由现金流进行投资方面的作用。第二个假设检验显示系数值显著，能够解释管理层所有权的存在将能够通过来自自由现金流的投资活动增加公司的价值。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Proceedings of the Proceedings of the 1st International Conference on Engineering, Science, and Commerce, ICESC 2019, 18-19 October 2019, Labuan Bajo, Nusa Tenggara Timur, Indonesia

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