Pengaruh Kepemilikan Pemerintah terhadap Hubungan antara Modal Kerja dan Nilai Perusahaan di Indonesia

In this paper we analyze whether state ownership and non-state ownership affect the value-net working capital (NWC) and their join implication to firm value in a country that adopt civil law system. We are using 3,251 NWC observations from listed firms in Indonesia from year 2005 to 2015. We find that ownership structures have different effect on NWC level and firm value. We also find that state ownership firm have higher investment in NWC relative to non-state ownership firm. While state ownership on average has higher Tobin’s q relative to non-state ownership, their preferences for higher investment in NWC result in larger drag to Tobin’s q relative to non-state ownership. We conclude that state ownership affect the relationship between value net working capital (NWC).