The Effect of Family Ownership and Involvement and Institutional Ownership on the Performance of Publicly Listed Companies in Indonesia

Prety Viranda (Universitas Islam Indonesia)
Zaenal Arifin (Universitas Islam Indonesia)

Formosa Journal of Multidisciplinary Research (FJMR)
Vol. 4 No. 7 (2025): July 2025

This study aims to analyze the effect of family ownership, family involvement, and institutional ownership on the performance of public companies in Indonesia. The focus of this study is to determine the extent to which the three variables influence company performance as measured by Return on Assets (ROA) and Stock Return (RS). The sample used is companies listed in the LQ45 Index in the 2019-2023 period. The results of the study indicate that family ownership has a negative effect on company performance, family involvement has a positive effect on company performance, and institutional ownership does not have a significant effect on company performance. These findings are expected to provide insight for companies, investors, and academics in understanding the ownership structure and family involvement in influencing company performance.