THE INFLUENCE OF OWNERSHIP STRUCTURE AND LEVERAGE ON INVESTMENT EFFICIENCY

Abstract

This study aims to analyze the effect of ownership structure and leverage on investment efficiency in manufacturing companies listed on the Indonesia Stock Exchange during the period 2020–2022. Investment efficiency is defined as a company's ability to invest optimally by considering various aspects such as cost, project selection, and expenditure allocation in order to avoid overinvestment or underinvestment and to enhance firm value. This study employs multiple regression analysis to test the hypotheses. The results of the study indicate that institutional ownership, managerial ownership, and leverage do not have a significant effect on investment efficiency.