Foreign and domestic ownership as the mediator Between investment strategy and company performance

Abstract

The study aims to examine the moderating effect of the ownership structure on the relationship between investment strategy and the comprehensive firm performance in ASEAN. Using data from financial reports and sustainability reports, the samples are 34 nonfinancial companies in ASEAN 2007 until 2019. The sample testing method is unbalanced panel data regression to test hypothesis. The results show foreign and domestic ownership moderate the relationship between investment strategy and productivity and financial performance. This research also proves that foreign and domestic ownership cannot form the relationship between investment strategy and environmental performance. This study gives additional evidence as confirmation of the theory of Industrial Organization about the implementation of the corporate strategy is influenced by external factors, namely the role of foreign ownership in improving corporate performance. This study gives new insight to the company about the importance of considering the investment strategy based on R&D and the role of foreign and domestic ownership to increase productivity, financial performance and environmental performance. and output factors, financial performance, and overall environmental ownership compare simultaneously resulting effect on the relationship between strategy and company performance.