The Influence Of Government Ownership and Foreign Ownership on The Value of Banking Companies in Indonesia
Keywords:
Government Ownership, Foreign Ownership, Firm Value, Tobin's Q, BankingAbstract
This study examines the influence of government ownership and foreign ownership on the firm value of banking companies listed on the Indonesia Stock Exchange (IDX) for the period 2018–2022. Firm value is proxied by Tobin's Q. The research employs a quantitative approach using panel data regression with the Fixed Effect Model (FEM). The sample consists of 28 banking companies selected through purposive sampling. The results indicate that government ownership has a significant positive effect on firm value, suggesting that state-backed banks enjoy stronger public trust, greater access to government funding, and stronger regulatory support. Foreign ownership also shows a significant positive effect on firm value, reflecting improved corporate governance practices, managerial expertise, and investor confidence brought by foreign shareholders. The findings contribute to the literature on corporate governance and firm value in the context of Indonesian banking, underlining the importance of ownership structure in enhancing shareholder wealth.
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Copyright (c) 2026 Muhammad Haffiz Asshiddiq, Isfenti Sadalia, Syahyunan (Author)
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