Abstract

Performance is an important thing to be achieved by any company anywhere, because the performance is a reflection of the company's ability to manage and allocate its resources. One way to improve the performance of the company through the ownership structure. The purpose of the company is largely determined by the structure of ownership in the process of shaping the incentives that motivate managers. The owner will try to make a variety of strategies to achieve the objectives of the company, after the strategy is determined then the next step will be to implement the strategy and allocate resources of the company to achieve its goals. All of these stages are not separated from the role of the owner can be said that the owner of a very important role in determining the sustainability of the company. Ownership structure is divided into two, namely managerial ownership and institutional ownership. The objective of this research are empirically examine the positive effects and significant managerial ownership and institutional ownership to the financial performance. Research sample uses purposive sampling method which is a sampling method by specifying criterias of 37 manufacturing companies that go public in Indonesia Stock Exchange (BEI), with data pooled or panel data method during 2010-2012. These data were processed using multiple linear regression. The result shows that managerial ownership and institutional ownership have a positive effects and significant to the financial performance.

Keywords: managerial ownership, institutional ownership, financial performance, manufacturin companies, and multiple linear regression