Title: Expropriation by the controlling shareholders on firm value in the context of Indonesia: corporate governance as moderating variable

Authors: Ika Utami Widyaningsih; Ardi Gunardi; Matteo Rossi; Rahmawati Rahmawati

Addresses: Faculty of Economics and Business, Universitas Sultan Ageng Tirtayasa, Jalan Raya Jakarta Km 4 Pakupatan Serang, Indonesia ' Faculty of Economics and Business, Universitas Pasundan, Jalan Tamansari 6-8 Bandung, 40116, Indonesia ' DEMM Department, University of Sannio, Via Delle Puglie, 82, 82100 Benevento, Italy ' Faculty of Economics and Business, Universitas Sebelas Maret, Jalan. Ir. Sutami No. 36A, Kentingan, Surakarta, 57126, Indonesia

Abstract: This research discusses the influence of cash flow right, control right and cash flow right leverage on firm value. This research also discusses the influence of corporate governance as moderating variables of cash flow right leverage on firm value. The research has 83 public corporations as research sample. All of the firms kept on the list during observation period that is from 2007-2010. The result of statistical test indicates that cash flow right is the dominant variable influencing firm value. The result shows that cash flow right has a positive effect on firm value, indicating that firm value increases as cash flow right of the controlling shareholder increases. Other variables are inconsistent when tested by using moderating variable or by adding control variables.

Keywords: cash flow right; control right; cash flow right leverage; expropriation; firm value; Indonesia; corporate governance.

DOI: 10.1504/IJMFA.2017.089062

International Journal of Managerial and Financial Accounting, 2017 Vol.9 No.4, pp.322 - 337

Available online: 27 Dec 2017 *

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