[ ABSTRAK
Penelitian ini bertujuan untuk menguji pengaruh kepemilikan keluarga terhadapkeputusan perusahaan non finansial dalam melakukan merger dan akuisisi.Penelitian ini juga menguji pengaruh kepemilikan keluarga terhadap cumulativeabnormal return, ketika perusahaan memutuskan untuk melakukan merger danakuisisi. Regresi logistik untuk 249 perusahaan dalam 6 tahun penelitianmenemukan bahwa perusahaan dengan kepemilikan keluarga secara signifikanlebih pasif dalam melakukan kegiatan merger dan akuisisi. Secara umum, seiringpertambahan persentase kepemilikan keluarga, efek entrenchment semakinmenguat. Walaupun begitu, pengaruh persentase kepemilikan dalam berbagairentang ditemukan berbeda, dikarenakan ada hubungan non linear antarakonsentrasi kepemilikan dengan keputusan merger dan akuisisi. Regresi OLSmenemukan bahwa walaupun sentimen pasar akan kegiatan merger dan akuisisisecara umum positif, namun efeknya melemah seiring dengan pertambahanpersentase kepemilikan dalam perusahaan bidder keluarga.

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ABSTRACT This research aims to examine the impact of family ownership to merger and

acquisition decision. This research also aims to examine the difference of family

ownership in terms of market sentiment using proxy stock cumulative abnormal

return following merger and acquisition. Logistic regression for 249 firms in 6

years discovers that family firms are significantly more passive towards merger

and acquisition decision, and this entrenchment effect is reinforced as the family

percentage increases. However, it is found that there is non linear relationship

between family percentage and its likelihood to merge and acquire. OLS

regression finds that even when merger and acquisition decision generally create

positive value on abnormal return, this effect is weakened as family ownership

percentage increases in bidder firm.;This research aims to examine the impact of family ownership to merger and

acquisition decision. This research also aims to examine the difference of family

ownership in terms of market sentiment using proxy stock cumulative abnormal

return following merger and acquisition. Logistic regression for 249 firms in 6

years discovers that family firms are significantly more passive towards merger

and acquisition decision, and this entrenchment effect is reinforced as the family

percentage increases. However, it is found that there is non linear relationship

between family percentage and its likelihood to merge and acquire. OLS

regression finds that even when merger and acquisition decision generally create

positive value on abnormal return, this effect is weakened as family ownership

percentage increases in bidder firm.;This research aims to examine the impact of family ownership to merger and

acquisition decision. This research also aims to examine the difference of family

ownership in terms of market sentiment using proxy stock cumulative abnormal

return following merger and acquisition. Logistic regression for 249 firms in 6

years discovers that family firms are significantly more passive towards merger

and acquisition decision, and this entrenchment effect is reinforced as the family

percentage increases. However, it is found that there is non linear relationship

between family percentage and its likelihood to merge and acquire. OLS

regression finds that even when merger and acquisition decision generally create

positive value on abnormal return, this effect is weakened as family ownership

percentage increases in bidder firm.;This research aims to examine the impact of family ownership to merger and

acquisition decision. This research also aims to examine the difference of family

ownership in terms of market sentiment using proxy stock cumulative abnormal

return following merger and acquisition. Logistic regression for 249 firms in 6

years discovers that family firms are significantly more passive towards merger

and acquisition decision, and this entrenchment effect is reinforced as the family

percentage increases. However, it is found that there is non linear relationship

between family percentage and its likelihood to merge and acquire. OLS

regression finds that even when merger and acquisition decision generally create

positive value on abnormal return, this effect is weakened as family ownership

percentage increases in bidder firm., This research aims to examine the impact of family ownership to merger and

acquisition decision. This research also aims to examine the difference of family

ownership in terms of market sentiment using proxy stock cumulative abnormal

return following merger and acquisition. Logistic regression for 249 firms in 6

years discovers that family firms are significantly more passive towards merger

and acquisition decision, and this entrenchment effect is reinforced as the family

percentage increases. However, it is found that there is non linear relationship

between family percentage and its likelihood to merge and acquire. OLS

regression finds that even when merger and acquisition decision generally create

positive value on abnormal return, this effect is weakened as family ownership

percentage increases in bidder firm.]