COMPANY VALUE IMPROVEMENT THROUGH FUNDING POLICY BASED ON OWNERSHIP STRUCTURE (COMPARISON STUDY AT CONVENTIONAL AND SHARIA MANUFACTURING COMPANIES)

COMPANY VALUE IMPROVEMENT THROUGH FUNDING POLICY BASED ON OWNERSHIP STRUCTURE (COMPARISON STUDY AT CONVENTIONAL AND SHARIA MANUFACTURING COMPANIES)

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The results show that managerial ownership and institutional ownership have negative and significant effects toward debt policy and company values, while debt policy have a positive and Collections significant effects toward debt policy and company values.This phenomenon shows that shareholders from management and shareholders from institutional assess rhat debt policy may harm their position in the company, and will not give any benefit materially, it is because of Interest expense that cannot fully deduct the taxable income.Meanwhile, the debt policy is considered as positive signal of a business project that the company wants or works on, therefore the company needs a lot of funds.On the other hand, the composition of stocks ownership dominated by management and institutional shareholders is regarded as a threat in society, due to the opportunity to benefit themselves but will not benefit the society.In the end, information asymmetry still becomes a problem between Handles individual and small shareholders, with shareholders that able to obtain important company information such as institutional shareholders and shareholders who also take control the company management.