CONCENTRATED OWNERSHIP STRUCTURE, RISK DISCLOSURE AND STOCK LIQUIDITY IN NON-FINANCIAL COMPANIES IN INDONESIA

Abstract

The purpose of this study is to examine the direct and indirect effects between the concentrated ownership structure, risk disclosure and stock liquidity in non-financial companies listed on the Indonesia Stock Exchange in 2018. This study uses a purposive sampling technique in research sampling. Samples obtained in this study were 433 companies. Data analysis was performed using path analysis and Sobel test. The results showed that there was a significant positive relationship between the structure of concentrated ownership and stock liquidity. So there is a direct influence on these two variables. This study also explains that there is no significant relationship between the structure of concentrated ownership and risk disclosure. In addition there is a significant positive relationship between risk disclosures and stock liquidity. The results of the path analysis and the sobel test show that the indirect relationship between the ownership structure is concentrated, risk disclosure and liquidity are unsupported.