Managerial Ownership and Debt to Equity Ratios: A Study In Jakarta Islamic Index

Abstract

: The internal and external factors that trigger the rise and fall of share prices can be seen from the projected performance of a company and its government policies, where ideally the company's performance or performance and government policies are used as a reference for investors and fundamental analysts in conducting studies on company shares. There was a significant decline in the Jakarta Islamic Index companies, one of which was due to several construction stocks which weighed heavily on the performance of the index, such as PTPP, WIKA, PGAS, which weakened since the beginning of 2022, reaching 30%. PT Wijaya Karya Tbk (WIKA) and PT PP Tbk currently still have negative cash flow. PT Wijaya Karya Tbk (WIKA)'s operational cash was recorded at negative IDR 5.13 trillion, while PT PP Tbk (PTPP) was negative IDR 1.02 trillion. This research aims to analyze the influence of managerial ownership on the debt to equity ratio in companies listed on the Jakarta Islamic Index (JII). The data used in this research is secondary data obtained from company financial reports contained in the Jakarta Islamic Index (JII) published by the Indonesia Stock Exchange. The research sample used a purposive sampling method. Testing in this research uses descriptive statistical analysis methods, panel data regression model selection, classical assumption testing, and hypothesis testing. The results of hypothesis testing show that managerial ownership has no effect on debt policy.