Fitri Susilowati, Eduardus Tandelilin


The main purpose of this research was to determine the agency theory in Indonesia capital market. The variable
of agency conflict was represented by asset utility variable, while controlling the agency conflicts mechanism
was represented by the managerial ownership, leverage, and dividend. The secondary data used in this research
was drawn from the Indonesia Capital Market Directory (ICMD) and Blommberg. The sample data
were limited at the manufacture companies and non-financial services, and they were listed on the Indonesia
Stock Exchange (BEI). The research method approach used was quantitative method. The time period of the
data was year to year from 2000 to 2011. The instrument of analysis was seemingly unrelated regression
(SUR), with panel data and simultaneous model regression techniques. The result of this research was that the
managerial ownership had a positive and significant effect on performance. Debt policy had a positive effect
but not significant to performance, so 1b hypothesis was not accepted. Dividend policy had a positive and
significant effect on performance. Simultaneously there was a substitution and interdependence relationship
between the managerial ownership and debt policy. The relationship between two variables namely the managerial
ownership and dividend policy could not be concluded.


agency conflict, dividend, leverage, managerial ownership, Seemingly Unrelated Regression (SUR)


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