ABSTRACT
The purpose of this research to examine the impact of managerial ownership on firm’s level of diversification at family firms and non-family firms listed on the Indonesia Stock Exchange. The samples of this research consisted of 120 samples from 30 family firms and 720 samples from 180 nonfamily firms listed on the Indonesia Stock Exchange during 2010-2013. Dependent variable was level of diversification and the independent variable used managerial ownership. This research used control variables, such as financial leverage, Return on Assets (ROA), business risk, firm size and institutional ownership. The empirical results of Ordinary Least Square regressions show that managerial ownership has significant impact with positive direction on level of diversification in family firms (family business), while in non-family firms (non-family business) it has significant impact with negative direction.
