The Impact of Managerial and Institutional Ownership on Firm Value: The Mediating Role of Capital Structure

Abstract

The purpose of this study is to examine the impact of managerial ownership and institutional ownership on the firm value, taking into consideration capital structure as a mediator. The sample of this study includes a sample of non-financial firms listed in EGX100 in Egypt for the year 2022. To test the research hypotheses, descriptive analysis, multiple regression analysis and Sobel test were used. Results show that managerial ownership has negative significant impact on firm value which indicates that when the level of managerial ownership increases the firm value decreases. Moreover, institutional ownership has positive significant impact which indicates that when the level of institutional ownership increases the firm value increases. In addition, the capital structure as a mediator was tested by Sobel test. Results show that Capital structure does not mediate the relationship between either managerial ownership or institutional ownership and firm value..