Comparison Analysis of Financial Performance Between The Companies With Foreign and Local Ownership Structure

11th UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEMENT
COMPARISON ANALYSIS OF FINANCIAL PERFORMANCE BETWEEN THE

COMPANIES WITH FOREIGN AND LOCAL OWNERSHIP STRUCTURE
By:
Kartikawati Danusasmita, M.B.A
Achmad Feriansyah, S.E.
Edhi Juwono, M.M.
Faculty of Economics and Business
Perbanas Institute Jakarta
ABSTRACT
The purpose of this study is to determine whether there are differences in financial
performance between companies with foreign ownership structure and the local. The
sampling method used in this study is purposive sampling method (purposive sampling), and
judgment sampling technique, which is based on certain criteria, to obtain a total sample of
20 manufacturing companies from all manufacturing companies listed on the Indonesian
Stock Exchange during the period 2009 untill 2012. The analysis technique used is
independent two-sample t-test (Independent Samples T Test). Hypothesis testing is done by
using the F test to determine the two variants whether they are the same or different with a
significance level of 0.05 (5%), and then using the t test to test the hypothesis by testing 2way (Two Tail Test) with a significance level of 0.05 (5% ).The results shown that of the 10
manufacturing sub-industries that exist in Indonesian Stock Exchange, a total of 5 subindustries are Animal Feed, Automotive & Components, Cable, Pharmaceuticals, Textile &
Garment and shown no significant differences in financial performance as measured by
variable Return on Assets (ROA), Return on Equity (ROE), and net profit margin (NPM)
between companies with foreign ownership and local ownership structure, the other five subindustries namely Chemicals, Food & Beverages, Plastics & Packaging, Pulp & Paper , and
Tobacco Manufacturers showed there were significant differences in financial performance
as measured by the variable Return on Assets (ROA), Return on Equity (ROE), and net profit
margin (NPM) between companies with foreign ownership structure and local. For other
researchers that are interested in conducting further research, the sample of
manufacturingcompanies that become the objects of the research are preferably enlarged
and the time period of the research is also preferably expanded.
Keywords: Financial Performance, Ownership Structure, ROA, ROE, and NPM
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RESEARCH BACKGROUND
The company, in terms of ownership, consisting of a group of investors or
shareholders who perform supervisory functions and manage the company's management
team. Different ownership structures may have different impacts on the decisions in financial
performance. Theoretically, it means that,dominant foreign-controlled companies would be
different than a company whose performance is dominated by domestic (local) owners.
In terms of commercial status, the company can be divided into:non-listed or private
companies (do not go public) and listed or public companies (go public). Companies that go
public, especially in Indonesia is a company listed on the Indonesia Stock Exchange. In this
study, we prefer to get the data from the go public company. The selection of companies that
go public based on the consideration that the go public companies in Indonesia are large
companies that have a direct major impact on the Indonesian economy.
Furthermore, on the perspective of industrial structure,generally, go public companies
can be classified into: manufacturing and non-manufacturing industries. Mostly, the
manufacturing industry consists of holding companies, therefore, this study focused on listed
manufacturing companies.
Based on the fore description, the authors took the title "Comparative Analysis of
Financial Performance Company With Foreign and Local Ownership Structure."
LITERATURE REVIEW
Previous studies which will be discussed is Analisis Komparasi Kinerja Keuangan
Berdasarkan Perbedaan Struktur Kepemilikan Institusi Asing vs Lokal (Studi Pada Industri
Manufaktur yang Go Publik di Indonesia) by Sondakh (2011). This study aims to identify
and analyze the differences in financial performance based on the structure of ownership
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(local vs foreign) in the go public companies of Indonesian manufacturing industry. The

variables measured in this study include liquidity ratios (current ratio, acid test ratio,
inventory turn over), the solvency ratio (debt ratio, debt to equity ratio),and profitability
ratios ROA, ROE, profit margin, operating profit margin, earning per share ratio). Using the
method of judgement sampling, the sample that meeting the criteria in this study were 20
companies listed on the Stock Exchange for the period of 2006-2008, which consists of 10
foreign-dominated companiesand 10 local-dominantedcompanies (not including the stateownedenterprises). The analytical tool used in this research is the analysis of ANOVA (for
the third-forth hypothesis) and two different test averageaverageof independent samples
(for the first-second hypothesis). The results of this study showed that there was no
significant difference in financial performance based on differentstructure of ownership (local
vs foreign companies) in the listed companies of Indonesian manufacturing industry.
The second study with a title of Pengaruh Penerapan Good Corporate Governance
dan Struktur Kepemilikan dengan Kinerja Keuangan (Studi Empiris Pada Perusahaan LQ-45
Tahun 2001 2005 di BEJ) is authored by Abdurrahman and Septyanto (2008). The purpose
of this study is empirically revealed the dominant factors that affect the performance of the
company and also empirically revealed the effect of the application of good corporate
governance and ownership structure on firm performance. Population taken in this research is
listed companies on the Jakarta Stock Exchange in the category of 45 liquid stocks (LQ-45)
in 2001 to 2005. The samples of this study were taken by purposive judgment sampling
method with the criteria: (a) Included in the LQ-45 d list during the period 2001 to 2005; (b)
consistently being part of the LQ-45 list in within 5 years; (c) the company is not including
the banks and financial institutions. The research design of this study consist of (1)
descriptive analysis method, which is intended to describe the variables used in this study, i.e.
the composition of fixed assets, growth opportunities, firm size, ownership structure,
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commitment to the implementation of good corporate governance , ROE , and Tobin 's Q; (2)
causalityinthis case would be the relationship and influence analysis between the variables
above, and also investigation the relationship of how far the influence level
(rate of
significance) of a variable to the other variables. The results are: (1) the variable composition,
i.e. fixed assets, growth opportunities, firm size, ownership structure, and commitment to the
implementation of good corporate governance jointly affect to the companys performance
both ROE and Tobin 's Q; (2) partially, factors that affect ROE are:
1. company size,
2. ownership structure,
3. chance to grow,
4. the fourth composition of fixed assets;
on the other side, the dominant factors in influencing Tobin 's Q arethe size and the chance to
grow.
The thirdone titled Pengaruh Struktur Kepemilikan, Karakteristik Perusahaan, Tata
Kelola Korporasi Terhadap Kinerja Perusahaan Manufaktur di Bursa Efek Indonesia,
authored by Munthe (2007). This study aimed to examine the effect of ownership structure,
firm characteristics, corporate governance on the performance of manufacturing companies in
Indonesia Stock Exchange. The analytical method used is fixed effect model. This study uses
secondary data, the annual financial statements of manufacturing companies that have been
listed on the Indonesia Stock Exchange during the years 2006-2007, with a population of 151
companies and 60 companies as the samples.The samples were taken with a stratified random
sampling method. The results of this study indicate that the ownership structure has no
significant effect on the performance of the company, but from the point of view of
companys size, there has a positive and significant effect on firm performance.Based on the
leverage ratio, thereis a negative and significant effect on the performance of the
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company.Based on the element the corporate governance, proportional number of

independent board of directors and the proportional of families in the board of directors has a
negative and significant effect on the performance of the company, but the number of
committees within the board of directors has a positive and significant effect on firm
performance.
The last study titled Hubungan antara Good Corporate Governance dan Struktur
Kepemilikan dengan Kinerja Keuangan is authored by Hastuti (2005). This study describes
the relationship between corporate governance, ownership structure and corporate
performance. The population in this study are all companies listed on the Jakarta Stock
Exchange in 2001 and 2002 . The study sample was taken on the basis of purposive sampling
criteria:the company (1) is included in the list LQ-45 respectivelyalsoduring the financial
reporting period in 2001 and 2002; (2) is issuing financial statements of 2001 and 2002; (3)
conduct the financial disclosure statement in the financial statements of 2001 and 2002. This
study will test a dependent variable i.e. firm performancemeasured by Tobin 's Q, and the
three independent variables, namely the ownership structure, discretionary accrual as a proxy
for earnings manipulation that reflect accountability, and a voluntary disclosure as proxy
transparency. This study uses descriptive statistical analysis of the data, the classical
assumption test, and regression testing. Based on the analysis, this study resulted the
following conclusions: (1) there is no significant relationship between ownership structure
and corporate performance; (2) there is no significant relationship between earnings
management and corporate performance; (3) there is a significant relationship between the
disclosure of financial statement and the company's performance.
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DISCUSSIONS
Companies that become the object of this study are all listed companies in Indonesian
Stock Exchange during 2009-2012. All companies are derived from the manufacturing sector.
Manufacturing companies are classified into 10 sub-industry categories, each sub-industry
consists of two companies: one has a dominant ownership structure of foreign and the other
one has a dominant ownership structure of local. Variables used in this study are the Return
on Assets (ROA), Return on Equity (ROE), and net profit margin (NPM). The study was
conducted by comparing these three variables on each company in each sub-industry.
Table 1
Unit Analysis Classification
Sub-Industry
1. Animal Feed
Dominant Ownership Structure

of Foreign
2. Automotive &
Components
3. Cable
PT Malindo Feedmill Tbk.

(MAIN)
PT Goodyear Indonesia Tbk.
(GDYR)
PT Sumi Indo Kabel Tbk. (IKBI)
4. Chemicals
PT Barito Pacific Tbk. (BRPT)
5. Food & Beverages
9. Textile & Garment
PT Akasha Wira International

Tbk. (ADES)
PT Darya Varia Laboratoria
Tbk. (DVLA)
PT Alam Karya Unggul Tbk.
(AKKU)
PT Toba Pulp Lestari Tbk.
(INRU)
PT Unitex Tbk. (UNTX)
10. Tobacco
Manufacturers
PT Bentoel Internasional
Investama, Tbk. (RMBA)
6. Pharmaceuticals
7. Plastics & Packaging
8. Pulp & Paper
ISBN: 978-979-99365-8-5
Dominant Ownership
Structure of Local
PT Charoen Pokphand
Indonesia Tbk. (CPIN)
PT Indospring Tbk. (INDS)
PT Jembo Cable Company
Tbk. (JECC)
PT Ekadharma International
Tbk. (EKAD)
PT Siantar Top Tbk. (STTP)
PT Tempo Scan Pacific Tbk.
(TSPC)
PT Yanaprima Hastapersada
Tbk. (YPAS)
PT Fajar Surya Wisesa Tbk.
(FASW)
PT Ever Shine Textile Industry
Tbk. (ESTI)
PT Gudang Garam Tbk.
(GGRM)
922
Return on Assets (ROA)

Return on Assets (ROA) is calculated by dividing earnings after tax by total assets.
Comparison of sub-industry ROA each category are as follows.
Table 2
Return on Asset (ROA)
Companys Name
2009
2010
2011
2012
12,69% 23,27% 19,93% 16,80%
Animal Feed
(Foreign)
PT Charoen Pokphand
40,39% 43,24% 33,62% 21,70%
Indonesia Tbk. (Local)
2
Automotive &
15,02%
6,75%
2,39%
5,30%
Components
(Foreign)
PT Indospring Tbk. (Local)
12,87% 13,63% 14,10%
8,05%
3
PT Sumi Indo Kabel Tbk.
7,24%
1,27%
3,95%
3,05%
Cable
(Foreign)
5,08%
0,40%
6,58%
4,48%
Tbk. (Local)
4
PT Barito Pacific Tbk.
6,92%
0,82%
-2,75%
-5,83%
Chemicals
(Foreign)
13,90% 16,47% 14,82% 13,22%
Tbk. (Local)
5
Food &
PT Akasha Wira
9,76%
10,34%
9,37%
21,43%
Beverages
International Tbk. (Foreign)
PT Siantar Top Tbk. (Local)
7,26%
6,94%
6,46%
5,97%
6
Pharmaceuticals PT Darya Varia
14,56% 18,02% 17,92% 13,86%
Laboratoria Tbk. (Foreign)
14,73% 17,54% 17,41% 13,71%
(Local)
7
Plastics &
-24,63% -9,33% -54,88%
Packaging
(Foreign)
19,15%
13,62% 14,28% 10,13%
4,71%
Tbk. (Local)
8
Pulp & Paper
-4,07%
-1,47%
0,95%
-0,99%
(Foreign)
10,56%
8,48%
3,69%
0,09%
(Local)
9
Textile &
PT Unitex Tbk. (Foreign)
20,92% -16,77% -5,35%
-7,36%
Garment
PT Ever Shine Textile
2,89%
0,58%
1,31%
-5,80%
Industry Tbk. (Local)
10
Tobacco
2,07%
7,49%
7,66%
-4,66%
Manufacturers
Investama Tbk. (Foreign)
17,73% 18,32% 16,92%
9,80%
(Local)
Source:http://www.idx.co.id/id-id/beranda/perusahaantercatat/profilperusahaantercatat.aspx
No.
1
Sub-Industry
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Return on Equity (ROE)

Return on Equity (ROE) is calculated by dividing earnings after tax by total equity.
Comparison of ROE each industry sub-categories are as follows.
Table 3
Return on Equity
No.
1
Sub-Industry
Animal Feed
Automotive &
Components
Cable
Sub industri
Chemicals
Food &
Beverages
Pharmaceuticals
Plastics &
Packaging
Companys Name
(Foreign)
PT Charoen Pokphand
(Foreign)
PT Indospring Tbk. (Local)
(Foreign)
PT Jembo Cable Company Tbk.
(Local)
PT Barito Pacific Tbk. (Foreign)
Tbk. (Local)
PT Akasha Wira International
Tbk. (Foreign)
PT Siantar Top Tbk. (Local)
PT Darya Varia Laboratoria
Tbk. (Foreign)
(Local)
(Foreign)
2009
2010
2011
2012
93,02%
87,16%
62,73%
44,35%
73,66%
63,21%
48,06%
32,79%
40,76%
18,65%
6,64%
12,47%
48,27%
46,20%
25,41%
11,80%
8,27%
1,55%
4,82%
3,75%
29,10%
2,25%
32,37%
22,24%
17,52%
2,25%
-5,39%
-12,75%
33,00%
31,61%
23,85%
18,86%
25,50%
33,58%
23,56%
39,87%
9,85%
10,08%
12,32%
12,87%
20,56%
24,02%
22,85%
17,69%
19,95%
24,17%
24,30%
18,94%
-41,02%
-17,85%
108,81
%
-51,87%
21,05% 21,82% 15,29%
Tbk. (Local)
8
Pulp & Paper
-9,60%
-3,39%
2,43%
(Foreign)
24,46% 21,04% 10,11%
(Local)
9
Textile &
-21,73% 15,78%
5,01%
Garment
PT Ever Shine Textile Industry
5,84%
1,31%
3,24%
Tbk. (Local)
10
Tobacco
5,08%
17,25% 21,59%
Manufacturers Investama Tbk. (Foreign)
PT Gudang Garam Tbk. (Local)
26,38% 26,57% 26,94%
ISBN: 978-979-99365-8-5
10,01%
-2,54%
0,29%
-6,29%
-12,76%
-16,81%
15,29%
924
Net Profit Margin (NPM)

Net profit margin (NPM) is calculated by dividing total earnings after tax bytotal
sales. Comparison NPM each industry sub-categories are as follows.
Table 4
Net Profit Margin
Companys Name
2009
2010
2011
2012
4,07%
8,84%
7,78%
9,02%
(Foreign)
PT Charoen Pokphand
11,08%
14,66%
13,16%
12,58%
2
Automotive & PT Goodyear Indonesia
9,37%
3,84%
1,98%
3,28%
Components
Tbk. (Foreign)
PT Indospring Tbk.
8,16%
6,92%
9,75%
9,08%
(Local)
3
Cable
3,33%
0,38%
1,66%
1,35%
(Foreign)
2,08%
-0,12%
2,27%
2,57%
Tbk. (Local)
4
Chemicals
PT Barito Pacific Tbk.
3,80%
-3,29%
0,09%
-5,39%
(Foreign)
PT Ekadharma
8,01%
9,63%
8,45%
9,40%
International Tbk. (Local)
5
Food &
PT Akasha Wira
Beverages
International Tbk.
12,14%
14,47%
8,64%
17,49%
(Foreign)
PT Siantar Top Tbk.
6,55%
5,59%
4,15%
5,81%
(Local)
6
Pharmaceuticals PT Darya Varia
8,32%
11,93%
12,44%
13,81%
Laboratoria Tbk. (Foreign)
PT Tempo Scan Pacific
8,00%
9,52%
10,13%
9,58%
Tbk. (Local)
7
Plastics &
PT Alam Karya Unggul
-221,08% -158,81% -346,31% -126,48%
Packaging
Tbk. (Foreign)
PT Yanaprima
6,65%
6,08%
4,46%
3,98%
Hastapersada Tbk. (Local)
8
Pulp & Paper
-7,01%
0,41%
2,72%
-2,89%
(Foreign)
PT Fajar Surya Wisesa
10,12%
8,36%
3,21%
0,13%
Tbk. (Local)
9
Textile &
21,07%
-15,36%
-3,97%
-8,06%
Garment
PT Ever Shine Textile
1,42%
0,24%
0,46%
-6,19%
Industry Tbk. (Local)
10
Tobacco
0,41%
2,46%
3,04%
-3,28%
Manufacturers Investama Tbk. (Foreign)
10,48%
11,00%
11,84%
8,30%
(Local)
No.
1
Sub-Industry
Animal Feed
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The data were processed using the statistical program SPSS (Statistical Package for
Social Science) version 21.0. The data will be discussed using the independent samples t-test
and t-test was used to test the hypothesis that has been previously set. The results of the
comparison processing Return on Assets (ROA), Return on Equity (ROE), and net profit
margin (NPM) of manufacturing companies with dominant ownership structure of the
Foreign and Local are as follows.
1.Mean Difference Testof Animal Feed Sub-Industry
Table5
Test Result of Independent Sample T-Test
Group Statistics
Structure of
Mean
Std. Deviation Std. Error Mean
Ownership
Foreign (MAIN)
12
32,4717
31,79083
9,17722
Local (CPIN)
12
34,0125
20,66049
5,96417
Financial Performance
Output of SPSS 21.0
According to the table 5 it can be seen that the average financial performance as
measured by ROA, ROE, and NPM of PT Charoen Pokphand Indonesia Tbk. (CPIN) was
34.01% greater than average financial performance of PT Malindo Feedmill Tbk. (MAIN) of
32.47%. This may imply that the financial performance of companies with Local ownership
structure better financial performance than companies with Foreign ownership structure.
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Table6
Result of F-test and Calculate T-test
Levene's
Test for
Equality of
Variances
F
Sig.
Equal
variances
assumed
Financial
Performance Equal
variances not
assumed
2,94
0
Independent Samples Test

t-test for Equality of Means
df
Sig. (2tailed)
Mean
Std. Error
Difference Difference
,100 -,141
22
,889
-1,54083
95% Confidence
Interval of the
Difference
Lower
Upper
10,94499 -24,23934 21,15768
-,141
18,885
,890
-1,54083
10,94499 -24,45838
21,37671
Output of SPSS 21.0
From Table 6 it can be seen that the significance of the F test value is equal to 0,100.
This shows that 0.100> 0.05, then H0 is accepted, so it can be concluded that both variants are
the same and equal variances t test using assumed. Then, in the t-test is known that the value
of significance (2-tailed Sig.) is equal to 0.889. This shows that 0.889> 0.05, which means
that H0 is accepted. That means that there is no significant difference in the financial
performance as measured by ROA, ROE, and NPM between PT Malindo Feedmill Tbk.
(MAIN) with PT Charoen Pokphand Indonesia Tbk. (CPIN).
2.Mean of Difference Test Results of Sub Automotive & Industrial Components
Table7
Test Result of Independent Sample T-Test
Group Statistics
Ownership Structure
Mean
Std.
Std. Error Mean
Deviation
Foreign (GDYR)
12
10,5375
10,86491
3,13643
Local (INDS)
12
17,8533
14,55850
4,20268
Output of SPSS 21.0
Based on Table 7 it can be seen that the average financial performance based on a
measurement using ROA, ROE, and NPM on Indospring Tbk. PT (INDS) is 17.85%--greater
than the average financial performance of PT Goodyear Indonesia Tbk. (GDYR), that is
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equal to 10.53%. This means that the financial performance of companies with Local
ownership structure better than the financial performance of Foreign ownership structure.
Table8
Result of F-test and Calculate t-test
Levene's
Test for
Equality of
Variances
F
Sig.
Equal variances
assumed
Financial
Performance Equal variances
not assumed
1,140

,297
df
Sig. (2Mean
Std. Error
tailed) Difference Difference
-1,395
22
,177
-7,31583
95% Confidence
Interval of the
Difference
Lower
Upper
5,24402 -18,19126
3,55959
-1,395
20,352
,178
-7,31583
5,24402 -18,24254
3,61087
Output of SPSS 21.0
Table 8 notes that the significance of the F test value is equal to 0.297. This shows that
0.297> 0.05, this means that H0 is accepted. Thus, it can be concluded that both variants are
the same. Furthermore, the t-test that uses Equal variances Assumed known show (Sig. 2tailed) figure of 0.177. Because 0.177> 0.05, thus H0 is accepted. This means that there is no
significant difference in financial performance as measured by ROA, ROE, and NPM
between PT Goodyear Indonesia Tbk. (GDYR) with Indospring Tbk. PT (INDS).
3. Mean of Difference Test Result ofCable Sub-Industries
Table9
Result Test of Independent Sample T-Test
Group Statistics
Ownership Structure
Mean
Foreign (IKBI)
12
3,3850
2,43718
,70355
Local (JECC)
12
9,1083
11,69381
3,37571
Output of SPSS 21.0
Table 9 shows that the average financial performance as measured by ROA, ROE,
and NPM on Jembo Cable Company Tbk. PT (JECC) amounted to 9.10%, in this case greater
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than average financial performance of PT Sumi Indo cable Tbk. (IKBI), amounting to 3.38%.
This means that the financial performance of companies with Local ownership structure
better financial performance than companies with foreign ownership structure
Table10
Levene's
Test for
Equality of
Variances
F
Sig.
Equal
variances
assumed
Financial
Performance Equal
variances not
assumed

16,040 ,001
df
Sig. (2Mean
Std. Error
1,660
22
,111
-5,72333
95% Confidence
Interval of the
Difference
Lower
Upper
3,44825 -12,87457 1,42790
1,660
11,954
,123
-5,72333
3,44825 -13,23964
1,79298
Output of SPSS 21.0
Table 10 shows that the value of the F test was significant at 0.001. This indicates that
0.001> 0.05, so H0 is accepted. Thus, it can be concluded that both variants are different.
Based on the t-test that uses equal variances not assumed,is known that the value of
significance (2-tailed Sig.) is equal to 0.123. This shows that 0.123> 0.05, so H0 is accepted.
It means that there is no significant difference in financial performance as measured by ROA,
ROE, and NPM between PT Sumi Indo Kabel Tbk. (IKBI) and PT Jembo Cable Company
Tbk. (JECC).
4.Mean Difference Test Result of Chemicals Sub-Industry
Table11
Group Statistics
Ownership Structure
Mean
Foreign (BRPT)
12
-,3333
7,66769
2,21347
Local (EKAD)
12
16,7683
8,60297
2,48346
Output of SPSS 21.0
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Table 11 explains that the average financial performance as measured by ROA, ROE,
and NPM on Ekadharma International Tbk. PT (EKAD) amounted to 16.76%, which is
greater than the average financial performance of PT Barito Pacific Tbk. (BRPT), which is
equal to -0.33%. This may imply that the financial performance of companies with Local
ownership structure better financial performance than companies with Foreign ownership.
structure.
Table12
Levene's
Test for
Equality of
Variances
F
Sig.
Equal
variances
assumed
Financial
Performance Equal
variances not
assumed
,313 ,581

22
,000 -17,10167
95% Confidence
Interval of the
Difference
Lower
Upper
3,32672 -24,00086 -10,20248
-5,141 21,715
,000 -17,10167
3,32672 -24,00611 -10,19722
-5,141
df
Sig. (2Mean
Std. Error
Output of SPSS 21.0

Table 12 shows that the significance of the F-test value is equal to 0.581. Because
0.581> 0.05, then H0 is accepted. It can be concluded that both variants are the same
according to the t-test that uses Equal variances Assumed. In the t-test it isfound that the
value of significance (2-tailed Sig.) is 0.000. Because 0.000 <0.05, then H0 is rejected. It
means that there are significant differences in financial performance as measured by ROA,
ROE, and NPM between PT Barito Pacific Tbk. (BRPT) and PT Ekadharma International
Tbk.(EKAD).
ISBN: 978-979-99365-8-5
930
5.Mean Difference Test Result of Food & Beverages Sub-Industry

Table13
Group Statistics
Ownership Structure
Mean
Foreign (ADES)
12
18,8458
10,21183
2,94790
Local (STTP)
12
7,8208
2,78692
,80451
Output od SPSS 21.0
and NPM at PT Akasha Wira International Tbk. (ADES) amounted to 18.84%, which is
greater than average financial performance Siantar Top Tbk. (STTP), which is equal to
7.82%. This may imply that the financial performance of companies with Foreign ownership
structure is better than the company's financial performance with the Local ownership
structure.
Table14
Levene's
Test for
Equality of
Variances
F
Sig.
t
df
Sig. (2Mean
Std. Error
Equal
variances
assumed
Financial
Performance Equal
variances not
assumed
22
,002
11,02500
3,05571
95% Confidence
Interval of the
Difference
Lower
Upper
4,68784 17,36216
3,608 12,630
,003
11,02500
3,05571
4,40380 17,64620
13,678 ,001 3,608
Output of SPSS 21.0
Table 14 shows that the value of the F-test was significant at 0.001. Because 0.001
<0.05, then H0 is rejected. Thus, it can be said that both variants are different. Through t-test
using equal variances not assumed, it is found that the value of significance (2-tailed Sig.) is
equal to 0.003. Because 0.003> 0.05, then H0 is rejected. It means that there are significant
ISBN: 978-979-99365-8-5
931
differences in financial performance as measured by ROA, ROE, and NPM between PT

Akasha Wira International Tbk. (ADES) and Tbk. PT Siantar Top (STTP).
6.Mean Difference Test Result of Pharmaceuticals Sub-Industry
Table15
Result TestIndependent Sample T-Test
Group Statistics
Ownership Structure
Mean
Foreign (DVLA)
12
16,3317
4,68081
1,35123
Local (TSPC)
12
15,6650
5,65218
1,63164
Output of SPSS 21.0
Table 15 shows that the average financial performance as measured by ROA), ROE,
and NPM at PT Darya-Varia Laboratories Tbk. (DVLA) amounted to 16.33%, which is
greater than the average financial performance of PT Tempo Scan Pacific Tbk. (TSPC) which
is equal to 15.66%. This may imply that the financial performance of companies with Foreign
ownership structure better than the financial performance of the companies with Local
ownership structure.
Table16
Levene's
Test for
Equality of
Variances
F
Sig.
Financial
Performance
Equal
variances
assumed
Equal
variances not
assumed
,684
,417
22
,756
,66667
2,11851
95% Confidence
Interval of the
Difference
Lower
Upper
-3,72686 5,06019
,315 21,262
,756
,66667
2,11851
-3,73572
,315
df
Sig. (2Mean
Std. Error
5,06906
Output of SPSS 21.0
ISBN: 978-979-99365-8-5
932
Table 16 shows that the significant value on F-test is equal to 0.417. It Because
0.417> 0.05, then H0 is accepted. Thus, it can be concluded that both variants are the same.
Through t-test using equal variances not assumed,it is found that the value of significance (2tailed Sig.) is equal to 0.756. Since 0.756> 0.05, then H0 is accepted. It means that there is no
significant difference in financial performance as measured by ROA, ROE, and NP between
PT Darya-Varia Laboratories Tbk. (DVLA) and PT Tempo Scan Pacific Tbk. (TSPC).
7.Mean Difference Test Result of Plastics & Packaging Sub-Industry
Table17
Result Test Independent Sample T-Test
Group Statistics
Ownership Structure
Mean
Foreign (AKKU)
12
-98,3517
102,04802
29,45873
Local (YPAS)
12
11,0067
6,25651
1,80610
Output of SPSS 21.0
and NPM on Yanaprima Hastapersada Tbk. PT. (YPAS) is equal to 11.00%, in this case
greater than average financial performance of PT Alam Karya Superior, Tbk. (AKKU),
whichequal to -98.35%. This may imply that the financial performance of companies with
Local ownership structure are better than the company's financial performance with Foreign
ownershipStructure.
ISBN: 978-979-99365-8-5
933
Table18
Levene's
Test for
Equality of
Variances
F
Sig.
Equal
variances
assumed
Financial
Performance Equal
variances not
assumed

df
22
,001 -109,35833
95% Confidence
Interval of the
Difference
Lower
Upper
29,51404 -170,56671 -48,14996
-3,705 11,083
,003 -109,35833
29,51404 -174,25921
17,165 ,000 -3,705
Sig. (2tailed)
Mean
Difference
Std. Error
Difference
-44,45746
Output of SPSS 21.0
Table 18 shows that the value of the F-test was significant at 0.000. Because 0.000
<0.05, then H0 is rejected. Thus, it can be said that both variants are different. Through t-test
using equal variances not assumed, it was found that the value of significance (2-tailed Sig.)
is equal to 0.003. Since 0.003 <0.05, then H0 is rejected. It means that there are significant
differences in financial performance as measured by ROA, ROE, and NPM between PT
Alam Karya Tbk. Superior. (AKKU) Tbk. and PT Yanaprima Hastapersada, Tbk. (YPAS).
8.Mean Difference Test Result of Pulp & Paper Sub-Industry
Table19
Group Statistics
Ownership Structure
Mean
Foreign (INRU)
12
-2,1208
3,66433
1,05780
Local (FASW)
12
8,3783
7,86584
2,27067
Output of SPSS 21.0
and NPM at PT Fajar Surya Tbk. Wisesa, Tbk. (FASW) amounted to 8.37%, in this case
greater than average financial performance of PT Toba Pulp Lestari Tbk. (INRU), which
stood at -2.12%. This may imply that the financial performance of company with Local
ISBN: 978-979-99365-8-5
934
ownership structure better than the financial performance of company with Foreign
Table20
Levene's
Test for
Equality of
Variances
F
Sig.
Equal
variances
assumed
Financial
Performance Equal
variances not
assumed
3,41 ,078
1

df
22
,000 -10,49917
95% Confidence
Interval of the
Difference
Lower
Upper
2,50497 -15,69416
-5,30417
-4,191 15,560
,001 -10,49917
2,50497 -15,82171
-4,191
Sig. (2tailed)
Mean
Std. Error
-5,17662
Output of SPSS 21.0
Table 20 shows that significant value on F-test is equal to 0.078. Since 0.078> 0.05,
then H0 is accepted. Thus, it can be concluded that both variants are the same. Through t-test
using equal variances not assumed, it was found that the value of significance (2-tailed Sig.)
is equal to 0.000. Since 0.000 <0.05, then H0 is rejected. It means that there are significant
differences in financial performance as measured by ROA, ROE, and NPM between PT Toba
Pulp Lestari Tbk. (INRU) and PT Fajar Surya Tbk. Wisesa. (FASW).
9.Mean Difference Test Result of Textile & Garment Sub-Industry
Table21
Group Statistics
Ownership Structure
Mean
Foreign (UNTX)
12
-1,8425
14,48321
4,18094
Local (ESTI)
12
-,6217
5,12698
1,48003
Output of SPSS 21.0
Table 21 indicates that the average financial performance as measured by ROA, ROE,
and NPM at PT Ever Shine Textile Industry Tbk. (ESTI) is equal to -0.62%, in this case
ISBN: 978-979-99365-8-5
935
greater than average financial performance of PT Unitex Tbk. (UNTX), that is -1.84%. This
may imply that the financial performance of company with Local ownership structure better
than the financial performance of company with Foreign ownership structure.
Table22
Levene's Test
for Equality of
Variances
F
Sig.
Financial
Performance
Equal
variances
assumed
Equal
variances not
assumed
10,480

,004
df
22
,786
-1,22083
4,43518
95% Confidence
Interval of the
Difference
Lower
Upper
-10,41883 7,97716
-,275 13,714
,787
-1,22083
4,43518
-10,75197 8,31030
-,275
Sig. (2tailed)
Mean
Difference
Std. Error
Difference
Output of SPSS 21.0
Table 22 shows that the significance value of the F-test is equal to 0.004. Because
0.004 <0.05, then H0 is rejected. Thus, it can be concluded that both variants are different.
Through t-test using equal variances not assumed, it was found that the value of significance
(2-tailed Sig.) is equal to 0.787. Since 0.787> 0.05, then H0 is accepted. It means that there
are no significant differences in financial performance as measured by ROA, ROE, and NPM
between PT Unitex Tbk. (UNTX) and PT Ever Shine Textile Industry Tbk. (ESTI).
10.Mean Difference Test Result of Tobacco Manufacturers Sub-Industry
Table23
Group Statistics
Ownership Structure
Mean
Foreign (RMBA)
12
3,5250
9,95427
2,87355
Local (GGRM)
12
16,6308
6,83979
1,97448
Output of SPSS 21.0
ISBN: 978-979-99365-8-5
936
and NPM PT Gudang Garam Tbk. (GGRM) is quantified to 16.63%, in this case greater than
average financial performance of PT Bentoel International Investama. (RMBA), which is
equal to 3.52%. This may imply that the financial performance of a company with Local
ownership structure are better than the financial performance of the company with Foreign
Table24
Levene's
Test for
Equality of
Variances
F
Sig.
Equal
variances
assumed
Financial
Performance Equal
variances not
assumed

22
,001 -13,10583
95% Confidence
Interval of the
Difference
Lower
Upper
3,48652 -20,33644 -5,87523
-3,759 19,494
,001 -13,10583
3,48652 -20,39072
,385 ,541 -3,759
df
Sig. (2tailed)
Mean
Std. Error
-5,82095
Output of SPSS 21.0
Table 24 shows that the significance value of the F-test is equal to 0.541. Because
0.541> 0.05, then H0 is accepted. So it can be concluded that both variants are the
same.Through the t-test using equal variances not assumed, it is found that the value of
significance (2-tailed Sig.) is equal to 0.001. Since 0.001 <0.05, then H0 is rejected. This
means that there are significant differences in financial performance as measured by ROA,
ROE, and NPM between PT Bentoel International Investama. (RMBA) and PT Gudang
Garam Tbk. (GGRM).
ISBN: 978-979-99365-8-5
937
CONCLUSION
In general, the summary of research finding, using analytical tools Independent Sample
T-Test can be seen in Table 25.
Table 25
Summary of the Research Findings
Significance Value (=5%)
Annotation
Animal Feed
0,889 > 0,05
H0accepted
Automotive & Components
0,177 > 0,05
H0accepted
Cable
0,123 > 0,05
H0accepted
Chemicals
0,000 < 0,05
H0rejected
Food & Beverages
0,003 < 0,05
H0rejected
Pharmaceuticals
0,756 > 0,05
H0accepted
Plastics & Packaging
0,003 < 0,05
H0rejected
Pulp & Paper
0,000 < 0,05
H0rejected
Textile & Garment
0,787 > 0,05
H0accepted
Tobacco Manufacturers
0,001 < 0,05
H0rejected
Sub-Industry
Output of SPSS 21.0
Table 25 shows that among the ten manufacturing sub-industries that listed in the
Indonesia Stock Exchange (IDX), five of them, namely Animal Feed, Automotive &
Components, Cable, Pharmaceuticals, Textile & Garment did not show any significant
difference in financial performance between companies with Foreign and Local ownership
structure when were measured by ROA, ROE, and NPM. However, the 5 sub-industries,
namely, Chemicals, Food & Beverages, Plastics & Packaging, Pulp & Paper, and Tobacco
Manufacturers seen any significant difference in financial performance when were measured
by the variable ROA, ROE, and NPM.
The result of the studyonthe sub-industry of
Animal Feed, Automotive &
Components, Cable, Pharmaceuticals, Textile & Garmentis in line with results of previous
studies, conducted by Sondakh ( 2011) where the results of his study showed that there was
ISBN: 978-979-99365-8-5
938
no significant difference in financial performance based on differences structure of ownership

(Local vs. Foreign institutional)in10 manufacturing sub-industry research sample. In
addition to the research conducted by Munthe (2007) also showed that variable of ownership
structure has no significant effect on firm performance. Only variables firm sizepart of the
characteristic elements of the company and the number of committees within the board of
directors, as part of the elements of corporate governancehasa positive and significant
effect on firm performance. In addition in the research conducted by Hastuti (2005) also
showed no significant relationship between ownership structure and corporate performance .
The results of the study of five other sub-industries, namely, Chemicals, Food &
Beverages, Plastics & Packaging, Pulp & Paper, and Tobacco Manufacturers actually are not
in line with the three previous studies. There isa significance differences on financial
performance between companies with Foreign and Local ownership structure. The results of
research on this five sub-industries is in line with research byAbdurrahman and Septyanto
(2008) because the results of the the two researchers showed that the variable composition of
fixed assets, growth opportunities, firm size, ownership structure, and commitment to the
implementation of good corporate governance together affect the performance of the
company.
Based on this studythecomparative financial performance between the companies
with different structure of ownership: Foreign and Localwith the analysis unit
ofthecompanies listed on the Indonesia Stock Exchange within 2009-2012, it can be
concluded some main points as follows.
1. There were no significant differences in financial performance as measured by ROA,
ROE, and NPM among themanufacturing companies, sub-industry of Animal Feed
which were listed on the Stock Exchange (IDX)during 2009-2012.
ISBN: 978-979-99365-8-5
939

ROE, and NPM among manufacturing companies, sub-industry of Automotive &
Industrial Components which were listed on IDXduring 2009-2011.
ROE, and NPM among manufacturing companies, sub-industry of Cable which were
listed on IDX during 2009 to 2012.
4. There were significant differences in financial performance as measured by ROA,
ROE, and NPM among manufacturing companies, sub-industry of Chemicals which
were listed in IDX during 2009 - 2012 .
ROE, and NPM among manufacturing companies, sub-industry of Food & Beverages
which were listed on IDX during 2009-2012.
6. 6. There were no significant differences in financial performance as measured by
ROA, ROE, and NPM among manufacturing companies, sub-industry of
Pharmaceuticals which were listed on IDX in 2009-2012.
ROE, and NPM among the manufacturing companies, sub-industry of Plastics &
Packaging which were listed on IDX in 2009-2012.
ROE, and NPM among the manufacturing companies, sub-industry of Pulp & Paper
which were listed on IDX in 2009- 2012.
ISBN: 978-979-99365-8-5
940

ROE, and NPM among manufacturing companies, sub-industry of Textile & Garment
which were listed on IDX in 2009-2012.
ROE, and NPM among manufacturing companies, sub-industry of the Tobacco
Manufacturers which were listed on IDX in 2009-2012.
REFERENCES
Books and Articles
Gitman, Lawrence J. (2011). Principles of Managerial Finance. thirteenth Edition. Boston:
Pearson International Edition.
Hastuti, Theresia Dwi. (2005). Hubungan antara Good Corporate Governance dan Struktur
Kepemilikan dengan Kinerja Keuangan (Studi Kasus pada Perusahaan yang listing di
Bursa Efek Jakarta). Solo: SNA VIII, 15 16 September 2005.
Kuncoro, Mudrajad. (2009). Metode Riset untuk Bisnis & Ekonomi. Edisi Ketiga. Jakarta:
Erlangga.
Munthe, Kornel. (2007). Pengaruh Struktur Kepemilikan, Karakteristik Perusahaan, Tata
Kelola Korporasi Terhadap Kinerja Perusahaan Manufaktur di Bursa Efek Indonesia.
Medan: Fakultas Ekonomi Universitas Santo Thomas SU, 2007.
Priyatno, Duwi. (2013). Mandiri Belajar Analisa Data dengan SPSS. Cetakan Pertama.
Yogyakarta: Mediakom.
Septyanto, Dihin dan Abdurrahman. (2008). Pengaruh Penerapan Good Corporate
Governance dan Struktur Kepemilikan dengan Kinerja Keuangan (Studi Empiris Pada
Perusahaan LQ-45 Tahun 2001 2005 di BEJ). Jakarta: FE Universitas INDONUSA
Esa Unggul, Volume 13, Nomor 1, Mei 2008.
Sondakh, Jolly J.J. (2011). Analisis Komparasi Kinerja Keuangan Berdasarkan Perbedaan
Struktur Kepemilikan Institusi Foreign vs Local (Studi Pada Industri Manufaktur yang
Go Publik di Indonesia). Manado: Konferensi Nasional Riset Manajemen V, 24
November 2011.
Suharyadi. & Purwanto S.K. (2004). Statistika untuk Ekonomi & Keuangan Modern. Edisi
Pertama. Jakarta: Salemba Empat.
ISBN: 978-979-99365-8-5
941
URLs and Websites

List of the Companies
http://www.idx.co.id/id-id/beranda/perusahaantercatat/profilperusahaantercatat.aspx
Data Source for ROA, ROE dan NPM
Foreign
PT Malindo Feedmill Tbk. (MAIN)
http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/MAIN.pdf
PT Goodyear Indonesia Tbk. (GDYR)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/GDYR.pdf
PT Sumi Indo Kabel Tbk. (IKBI)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/IKBI.pdf
PT Barito Pacific Tbk. (BRPT)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/BRPT.pdf
PT Akasha Wira International Tbk. (ADES)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/ADES.pdf
PT Darya Varia Laboratoria Tbk. (DVLA)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/DVLA.pdf
PT Alam Karya Unggul Tbk. (AKKU)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/AKKU.pdf
PT Toba Pulp Lestari Tbk. (INRU)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/INRU.pdf
PT Unitex Tbk. (UNTX)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/UNTX.pdf
PT Bentoel Internasional Investama Tbk. (RMBA)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/RMBA.pdf
ISBN: 978-979-99365-8-5
942
Local
PT Charoen Pokphand Indonesia Tbk. (CPIN)
http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/CPIN.pdf
PT Indospring Tbk. (INDS)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/INDS.pdf
PT Jembo Cable Company Tbk. (JECC)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/JECC.pdf
PT Ekadharma International Tbk. (EKAD)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/EKAD.pdf
PT Siantar Top Tbk. (STTP)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/STTP.pdf
PT Tempo Scan Pacific Tbk. (TSPC)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/TSPC.pdf
PT Yanaprima Hastapersada Tbk. (YPAS)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/YPAS.pdf
PT Fajar Surya Wisesa Tbk. (FASW)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/FASW.pdf
PT Ever Shine Textile Industry Tbk. (ESTI)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/ESTI.pdf
PT Gudang Garam Tbk. (GGRM)

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/PerformanceSummary/GGRM.pdf
ISBN: 978-979-99365-8-5
943

Comparison Analysis of Financial Performance Between The Companies With Foreign and Local Ownership Structure

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11th UBAYA INTERNATIONAL ANNUAL SYMPOSIUM ON MANAGEMENT