FACTORS AFFECTING ASSETS UTILIZATION COMPANIES ON THE INDONESIA STOCK EXCHANGE

Abstract

Transactions that indicate tunneling can impact business performance. Therefore, the tunneling that occurs in the use of assets must be properly controlled. Therefore, this research focuses on knowing the factors that influence the use of assets. The number of samples studied was 136 companies listed on the Indonesia Stock Exchange. The results revealed that institutional ownership has a significant and positive effect on asset utilization at a significance level of 0.10. Moreover, quadratic institutional ownership on asset use has a significant and negative effect at a significance level of 0.10. The leverage policy has a significant and negative effect at the 0.01 level on asset utilization. Moreover, the quadratic leverage policy has a significant and positive effect at a significance level of 0.10 on asset utilization. On the other hand, asset structure has a significant and positive influence on asset utilization at the 0.05 level. Keywords: asset utilization; Institutional ownership; leverage policy; asset structure, agency conflict.