Assets: Jurnal Akuntansi dan Pendidikan
Vol. 15 No. 2 (2026)

The Effect of Institutional Ownership on Capital Structure and Firm Value: Evidence from LQ45 Companies in Indonesia

Amalia Nur Chasanah (Universitas Dian Nuswantoro)
Diana Puspitasari (universitas dian nuswantoro)
Risanda Alirastra Budiantoro (Universitas Negeri Semarang)

Article Info

Publish Date
06 Aug 2026

Abstract

This study investigates the impact of institutional ownership on capital structure and firm value in LQ45 companies listed on the Indonesia Stock Exchange during 2023–2025. Specifically, it examines the mediating role of the Debt-to-Equity Ratio (DER), while controlling for profitability (ROA) and liquidity (current ratio). Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the results indicate that institutional ownership significantly enhances firm value, while DER does not mediate the relationship between independent variables and firm value. These findings highlight the role of institutional investors as monitors and market signals in Indonesian capital markets.

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Journal Info
Assets: Jurnal Akuntansi dan Pendidikan
Website

Abbrev

assets

Publisher

Universitas PGRI Madiun

Subject

Economics, Econometrics & Finance Education Social Sciences

Description

ASSETS is an accounting term that means property. Together with the hope and spirit of our study program, ASSETS is expected to be a valuable repository that holds the results of thinking and research in the field of accounting and education. Our accounting and education sub-areas include financial ...