APTISI Transactions on Technopreneurship (ATT) Vol.
No.
November 2025, pp.
751Oe765 E-ISSN: 2656-8888 | P-ISSN: 2655-8807.
DOI:10.
ye Driving Shareholder Value through Technopreneurship Innovation Deni Sunaryo1 .
Etty Puji Lestari2* .
Siti Puryandani3 .
Hersugondo4 1,2 Doctoral of Management Science.
Universitas Terbuka.
Indonesia 3 Management Department.
STIE Bank BPD Jawa Tengah.
Indonesia 4 Faculty Economics and Business.
Universitas Diponegoro.
Indonesia 1 denisunaryomm@gmail.
com, 2 ettypl@ecampus.
id, 2 sitipuryandani@gmail.
com, 3 hersugondo@lecturer.
*Corresponding Author
Article Info
ABSTRACT
Article history:
The Food and Beverage (F&B) industry in Southeast Asia faces challenges such as raw material price volatility, high debt burden, and changes in consumer preferences, so companies need to manage their financial performance well through financial ratio analysis and product innovation to remain competitive amidst the instability of the ASEAN market and policies.
This study analyzes the effect of Return on Assets/ROA.
Cash Ratio/CR.
Debt to Asset Ratio/DAR.
Asset Turnover/ATO, and Price Earnings Ratio/PER on managerial ownership and their impact on stock returns.
We assess how product development costs and financial distress moderate the relationship.
The objects of the study were F&B sector companies in Southeast Asia listed on the stock exchange, data period 2012 to 2023.
The method used was panel data regression.
The results showed that ROA and CR positively and significantly affected managerial ownership.
Conversely.
DAR and PER did not show a significant Moderation of product development costs weakened the impact of ROA on managerial ownership, while financial distress weakened the relationship between DAR and managerial ownership.
This study suggests the importance of efficient management of assets, cash, and liabilities and the need for strategic product innovation to maintain and increase managerial ownership.
Combining various financial ratios with managerial ownership and their effects on stock returns offers a more comprehensive perspective than previous studies.
Submission February 22, 2025 Revised May 10, 2025 Accepted September 26, 2025 Published October 8, 2025 Keywords:
Managerial Ownership Financial Distress Product Development Cost Financial Ratio Stock Return This is an open access article under the CC BY 4.
0 license.
DOI: https://doi.
org/10.
34306/att.
This is an open-access article under the CC-BY license .
ttps://creativecommons.
org/licenses/by/4.
AAuthors retain all copyrights INTRODUCTION Southeast AsiaAos Food and Beverage (F&B) industry significantly contributes to GDP and employment .
Ae.
Financial ratio analysis covering liquidity, profitability, efficiency, and solvency is vital for assessing company performance.
Key challenges include raw material price volatility, high debt, and shifting consumer Major firms like Indofood and CP Foods face profitability pressures from global instability and cost fluctuations.
Effective cash flow, debt, and cost management, along with strong product innovation, are essential for competitiveness amid seasonal and policy variations across ASEAN markets.
This study aims to investigate the impact of managerial ownership on financial performance in the F&B sector across ASEAN .
According to agency theory, managers who hold shares in their company are more motivated to improve firm performance, aligning their interests with those of the shareholders.
However.
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E-ISSN: 2656-8888 | P-ISSN: 2655-8807
the relationship between managerial ownership and financial metrics, such as Return on Assets (ROA).
Current Ratio (CR), and Debt-to-Asset Ratio (DAR), remains unclear in the context of Southeast Asian markets.
Previous research has shown both positive and negative outcomes regarding this relationship .
Managerial ownership is a condition in which a companyAos managers also own shares in the company .
, .
in agency theory states that managerial ownership can reduce conflict between shareholders and managers because managers who own shares have greater incentives to improve company performance .
Good company performance is expected to positively impact stock returns, which is an important indicator for This ownership can affect company performance because management who owns shares tends to be more committed to increasing the companyAos value.
In the context of the F&B sector in ASEAN, managerial ownership can be an important factor influencing company strategy and performance.
Figure 1.
Financial Ratio Trends in Southeast AsiaAos F&B Industry .
Figure 1 shows the trend of key financial ratios in the Southeast Asian F&B industry from 2012 to ROA remains stable and low, indicating inefficient use of assets to generate insignificant profits.
has been very low throughout the period, indicating that the company has limited cash reserves.
DAR is stable at a low level, indicating that the company uses little debt in its financing.
ATO fluctuates greatly, with a sharp increase in 2019 and a drastic decline thereafter.
This decline in efficiency indicates challenges in asset management after 2019.
PER increases until 2022, reflecting investor confidence in the company.
However, the P/E Ratio drops sharply in 2023, indicating investor concerns about earnings prospects.
The main issue identified is low liquidity, reflected in the cash ratio approaching zero.
The decline in operational efficiency is evident from the decline in AT after 2019.
In addition, negative investor perceptions about the companyAos future are evident from the decline in P/E Ratio in 2023.
Figure 2 shows the trend of managerial ownership, stock returns, financial distress, and product development costs in the Southeast Asian F&B industry between 2018-2024.
Managerial ownership has been consistently increasing, reflecting managers trust and involvement in decision-making.
Stock returns dropped sharply in 2020 due to the pandemic, but recovered thereafter.
Financial distress peaked in 2020 and declined thereafter, while product development costs continued to increase, highlighting the importance of innovation.
The negative correlation between stock returns and financial distress suggests that the crisis affected firm performance, but innovation remains key to success.
These dynamics are closely aligned with Sustainable Development Goals (SDG.
, particularly SDG 8 (Decent Work and Economic Growt.
, as resilient business practices and increasing managerial ownership promote sustainable economic recovery and support stable employment opportunities .
SDG 9 is reflected in the rising product development costs that highlight innovation as a key driver of competitiveness and long-term performance, while SDG 12 is addressed through improved resource efficiency and operational sustainability, ensuring environmentally responsible growth.
These efforts show how managerial involvement and innovation support both firm performance and the broader regional sustainability agenda .
APTISI Transactions on Technopreneurship (ATT).
Vol.
No.
November 2025, pp.
751Ae765 APTISI Transactions on Technopreneurship (ATT) ye Figure 2.
Trends in managerial ownership & financial performance of Southeast AsiaAos F&B Industry .
Although existing studies have explored the role of managerial ownership across various sectors, there is limited research specifically examining its influence in the F&B industry within ASEAN.
This gap is especially notable considering the unique market dynamics and challenges that emerged after 2019.
The COVID-19 pandemic further disrupted financial performance, highlighting the need to investigate how managerial ownership affects strategic decisions, product innovation, and stock returns during volatile periods.
Therefore, this study aims to fill that gap by evaluating both the direct and moderated effects of financial distress and product development costs on managerial ownership and firm performance.
Studies show mixed effects of ROA.
CR.
DAR.
ATO, and PER on managerial ownership, moderated by product development costs and financial distress.
ROA generally has a positive effect .
, .
, though not always .
, .
CR tends to be positive .
, but excess liquidity can reduce incentives .
, .
DAR often has a negative effect .
, .
, while ATO and PER are mostly insignificant .
Financial distress weakens the DARAeownership link, while product innovation strengthens ownership under good liquidity .
Higher managerial ownership improves stock returns .
, .
, yet F&B firms face low efficiency and liquidity.
This study explores how managerial ownership influences financial performance in the ASEAN F&B sector, with financial distress and product development costs as key moderators an area often overlooked in prior research.
It highlights how ASEANAos economic landscape shapes these dynamics and offers insights to help managers and policymakers improve F&B sector competitiveness and strategic decision-making.
This study investigates the unique influence of managerial ownership on financial performance in the ASEAN F&B sector, emphasizing the novel integration of financial distress and product development costs as moderating variables in this relationship.
By doing so, it fills a critical gap in the literature, as prior research has often overlooked these dynamics within this specific context.
Furthermore, this research highlights how the broader economic landscape of ASEAN shapes the interplay between managerial ownership and these moderating factors.
The ultimate goal is to provide actionable recommendations for managers and policymakers to enhance the competitiveness of F&B companies in the region, thereby contributing to a better understanding of strategic decision-making in a rapidly evolving market.
RESEARCH METHOD
This research employs a quantitative positivist method to analyze the influence of ROA, cash flow.
DAR.
ATO, and PER on managerial ownership and its implications for stock returns.
Product development costs and financial distress are also introduced as moderating variables to explore how they impact the relationship between managerial ownership and financial performance.
The study focuses on manufacturing companies in the F&B subsector listed on Southeast Asian stock exchanges between 2012 and 2023.
From a population of 55 companies, 38 were selected as samples using a purposive sampling technique.
E-ISSN: 2656-8888 | P-ISSN: 2655-8807
ye Figure 3.
Research Model This study differs by using financial distress and product development in Figure 3 costs as moderating variables, a perspective rarely explored in the F&B sector.
Variables are clearly defined in tables for clarity:
ROA measures asset-based profitability, cash flow shows liquidity.
DAR reflects debt reliance.
ATO measures asset use efficiency, and PER indicates investor growth expectations .
ee Figure .
Managerial ownership shows managers shareholding, stock returns reflect investor gains, product development costs indicate innovation efforts, and financial distress captures liquidity and solvency challenges.
This framework provides insights for managers and policymakers to improve ASEAN F&B performance and competitiveness.
We use panel data regression, combining time series and cross-sectional data, applying common, fixed, and random effect models.
Additional tests include multicollinearity to detect variable correlation.
RA to measure explanatory power, t-tests for individual significance, and F-tests for overall model significance.
The equations produced by this model include:
M Oit = 0 X1 ROAit X2 CRit X3 DARit X4 AT Oit X5 P ERit AA(M O) .
M Oit = 0 1 (ROA)it 2 (P DC)it 3 (ROA)(P DC)it AA(M O) .
M Oit = 0 1 (CR)it 2 (P DC) 3 (CR)(P DC)it AA(M O)it .
M Oit = 0 1 (DAR)it 2 (P DC)it 3 (DAR)(P DC)it AA(M O) .
M Oit = 0 1 (AT O)it 2 (P DC)it 3 (AT O)(P DC)it AA(M O)it .
M Oit = 0 1 (P ER)it 2 (P DC)it 3 (P ER)(P DC)it AA(M O) .
M Oit = 0 1 (ROA)it 2 (F D)it 3 (ROA)(F D)it AA(M O) .
M Oit = 0 1 (CR)it 2 (F D)it 3 (CR)(F D)it AA(M O) .
M Oit = 0 1 (DAR)it 2 (F D)it 3 (DAR)(F D)it AA(M O) .
M Oit = 0 1 (AT O)it 2 (F D)it 3 (AT O)(F D)it AA(M O) .
M Oit = 0 1 (P ER)it 2 (F D)it 3 (P ER)(F D)it AA(M O) .
M Oit = 0 1 (P DC)it 2 (F D)it AA(M O) .
M Oit = 0 1 (SR)it AA(M O) .
Where MO is managerial ownership at the company i in year t.
ROA is Return on Assets at the company i in year t.
CR is Cash Ratio at the company i in year t.
DAR is Debt to Asset Ratio at the company i in year t.
ATO is Asset Turnover at the company i in year t, and PER is Price Earnings Ratio at the company i in year t.
APTISI Transactions on Technopreneurship (ATT).
Vol.
No.
November 2025, pp.
751Ae765 ye APTISI Transactions on Technopreneurship (ATT) This study uses panel data regression with a focus on PDC and FD to ensure transparency and reliability.
PDC, measured as annual R&D spending on product innovation or major improvements, moderates the relationship between financial performance and managerial ownership.
FD, based on standardized liquidity and debt ratios, captures financial distress and its moderating effect on ownership decisions.
Interaction terms between PDC.
FD, and key financial indicators (ROA.
CR.
DAR.
ATO.
PER) are included to better understand managerial ownership dynamics in Southeast AsiaAos F&B industry.
FINDINGS
Descriptive Statistical Analysis The descriptive statistics for each variable are shown in Table 1.
The average ROA of 531.
054 indicates good performance, though values range widely from -6272.
829 to 71600.
The mean CR of 179.
1837 suggests good liquidity, despite some firms showing issues .
The debt-to-asset ratio of 356.
reveals high debt dependence, while the asset turnover average of 3301.
648 reflects efficiency with some underperformers .
These variations indicate differing financial and operational strategies, implying that managerial ownership and innovation may help reduce performance gaps and enhance stability.
Variables ROA
DAR
ATO
PER
PDC
Obs Table 1.
Descriptive Statistics Mean Std.
Min Max The average PER of 1078.
127 indicates high market expectations, but negative values indicate some companies are in trouble.
Product development costs and the level of financial distress show variations between companies, while stock returns show large fluctuations.
The Decisions are based on the recommendations, and the Hausman test is based on the Chi-Square probability value.
Hausman test
M1 to with M5
M10
M11
M12
M13
M14
M15
M16 & M17
M18
Table 2.
Hausman Test Chi-square test Value P-Value Table 2 shows that the Hausman test favors the Fixed Effect Model (FEM) over the Random Effect Model (REM), with strong support for FEM from hypotheses 1Ae5, 10, and 15.
The fixed effect model was chosen because it is more appropriate to the data tested and is significant in most important hypotheses.
E-ISSN: 2656-8888 | P-ISSN: 2655-8807
ye Table 3.
Lagrange Multiplier Test
Lagrange Multiplier Test
Chi-square test
Value P-Value M1 to with M5
M10
1,0000
M11
M12
M13
M14
M15
M16 & M17
M18
The results of the Lagrange Multiplier test in Table 3 show that the FEM is superior and more significant than the REM, so FEM was chosen for the overall analysis.
Model
M10
M11
Variables Coefficient ROA
DAR
ATO
PER
Constantine 33.
ROA
PDC
X1Z1
Constantine 33.
PDC
X2Z1
Constantine 31.
DAR
PDC
X3Z1
Constantine 3 3.
ATO
PDC
X4Z1
Constantine 3 2.
PER
PDC
X5Z1
Constantine 3 4.
ROA
X1Z2
Constantine 40.
Table 4.
Fixed Effect Model Std.
P>t .
% conf.
Interval APTISI Transactions on Technopreneurship (ATT).
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751Ae765 Significance *** *** *** *** *** *** *** ye APTISI Transactions on Technopreneurship (ATT) Model Variables Coefficient M12 CashRatio .
X2Z2
Constantine 3 7.
M13
DAR
X32Z
Constantine 39.
M14
ATO
X42Z
Constantine 40.
M15
PER
X52Z
Constantine 41.
M16
PDC
M17
Constantine 39.
M18
Constantine 33.
Std.
P>t .
% conf.
35,663
Interval Significance *** *** *** *** *** The fixed effect regression shows that Managerial Ownership (MO) positively impacts profitability (ROA), liquidity (CR), and market valuation (PER), but has no significant effect on leverage (DAR) and asset utilization (ATO).
Product Development Cost (PDC) is linked to higher Financial Distress (FD) in the short term but boosts stock returns (SR) in the long term, suggesting long-term value creation.
These results highlight the strategic role of managerial ownership and innovation investment in improving firm performance, aligned with SDGs on economic growth (SDG .
, innovation (SDG .
, and resource management (SDG .
ROA on Managerial Ownership The ROA coefficient in Table 4 is positive and significant .
P-value 0.
, showing that ROA positively influences managerial ownership.
ROA reflects asset profitability and signals operational efficiency, which boosts managers confidence in the firmAos prospects.
In Southeast AsiaAos emerging markets where information asymmetry and corporate governance challenges are common a high ROA serves as a reliable indicator of strong performance.
This encourages managers to increase their share ownership as a commitment to align interests with shareholders and reduce agency conflicts, consistent with agency theory.
Southeast AsiaAos business culture, emphasizing long-term relationships and stability, encourages managers to increase share ownership when profitability is strong.
Managerial ownership acts as a self-monitoring mechanism and long-term investment, showing confidence in the firmAos sustainability.
In the F&B sector, high profitability reflects effective cost management and product innovation, increasing company value and motivating managers to strengthen their position through ownership.
However, factors like ownership structure, market regulations, and macroeconomic conditions may also affect these decisions.
Further research with broader data is recommended to explore these influences in depth, reinforcing the link between profitability and managerial behavior in Southeast AsiaAos capital markets.
This statement refers to the findings of .
, .
To ensure that ROA continues to positively and significantly affect managerial ownership, companies must manage assets efficiently, implement good corporate governance, and focus on increasing long-term profitability.
As supported by research, avoiding poor investment decisions and weak governance practices will help maintain this positive relationship .
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ye Type Within Between Overall M1-5 Table 5.
Determination Coefficient Test R-Squared M7 M8 M9 M10 M11 M12 M13 M14 M15 M16- M18 The coefficient of determination (R-square.
test results in Table 5 show that the regression model cannot explain data variability.
The coefficient of determination value ranges from 0.
0328 to 0.
0932, indicating that the model can only explain a small part of the entity variation.
Between value is higher, reaching 0.
indicating a better ability to explain entity variation.
However, the overall value remains low, the highest at 0854, indicating that the model as a whole does not explain much variation in the data.
This model requires further refinement to improve its accuracy.
Relationship CR.
DAR.
ATO.
PER to Managerial Ownership The cash ratio coefficient is positive and significant, showing liquidityAos influence on managerial ownership in Southeast Asia.
High liquidity signals financial stability, increasing managers confidence to raise share ownership as commitment and alignment with shareholders.
Liquidity also serves as a resilience indicator in volatile markets, motivating managers to strengthen their position.
Southeast AsiaAos stability-oriented business culture supports managerial ownership as a self-monitoring tool and long-term investment.
Other factors such as ownership structure, regulations, and macroeconomic conditions may also affect decisions, requiring further research.
This interpretation aligns with findings from .
, .
and confirms that well-managed liquidity positively impacts managerial ownership.
Companies should maintain optimal liquidity without excessive cash hoarding through efficient management and strategic investment, consistent with research by .
The DAR coefficient is negative and insignificant, showing limited influence on managerial ownership in Southeast Asia.
Debt is less relevant due to macroeconomic fluctuations, high interest rates, and stability-oriented corporate culture, while profitability and liquidity play a greater role.
High financial risk makes managers cautious, and external factors like politics and minority shareholder rights are more influential than debt ratios .
Efficient debt management, healthy ratios, and strong operations are needed, as wise debt use can increase firm value and attract managerial ownership .
, 20, .
The ATO coefficient is positive, but the P value is not significant, so this variable does not have a significant effect on managerial ownership.
Asset Turnover has a positive coefficient of 0.
000277, but the P value of 0.
803 indicates that its effect is insignificant on managerial ownership.
This means that although ATO tends to have a positive impact, its impact is not statistically strong enough to influence organizational decisions regarding stock ownership.
Several studies, such as by .
, .
, also support the finding that asset turnover efficiency does not always determine stock ownership decisions.
To ensure that ATO positively and significantly affects managerial ownership, companies must increase asset use efficiency, manage investments properly, reduce operating costs, and focus on growing sales.
Research from .
supports that effective asset management can improve firm performance and make stock ownership more attractive to managers.
The PER coefficient is negative with a P-value of 0.
110, showing no significant effect on managerial In Southeast Asia.
PER often fails to reflect company fundamentals due to market volatility, economic uncertainty, and limited transparency, making it a less reliable indicator for managerial share decisions.
In the F&B sector, factors like profitability, liquidity, and ownership structure play a greater role, reducing PERAos impact.
This insignificance may also stem from data variability, requiring broader research.
Studies .
, .
confirm financial ratios, including PER, often have little influence on managerial decisions.
To enhance PERAos effect, firms should improve profitability, maintain stable growth, and ensure transparency and risk management, as supported by .
Product Development Costs Moderate The Interaction of ROA.
CR.
DAR.
ATO, and PER on Managerial Ownership ROA interaction on managerial ownership moderated by PDC has a coefficient of -4.
92e-06 with a Pvalue of 0.
002, indicating that the interaction is negative and significant.
This means high product development cost weakens the positive effect of ROA on managerial ownership.
ROA itself has a positive and significant APTISI Transactions on Technopreneurship (ATT).
Vol.
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751Ae765 APTISI Transactions on Technopreneurship (ATT) ye impact on managerial ownership, as supported by previous studies stating that the higher the financial performance, the greater the incentive for managers to own company shares .
Ae.
However, the influence of product development cost is negative and significant on ownership, so high costs can reduce the attractiveness of stock ownership.
These results also show that the interaction between ROA and product development cost is negative, where high development cost weakens positive ROA on managerial ownership, in harmony with research discussing moderation of operational cost to financial performance and organizational ownership .
Ae .
, .
Ae.
Companies must manage product development costs effectively, improve operational efficiency, and focus on long-term innovation to ensure the interaction between ROA and development costs positively affects managerial ownership.
Research from .
, .
supports that good cost management and high-quality innovation can strengthen the positive connection between ROA and managerial ownership, improving company The interaction between CR and PDC .
P=0.
is positive and significant, showing PDC strengthens CR positive effect on managerial ownership.
Although PDC alone is not significant, its interaction enhances ownership, requiring effective cash management, cost control, and innovation focus .
, .
Meanwhile, the interaction of DAR and PDC .
P = 0.
is negative and insignificant, where high PDC reduces managerial share interest while DAR and its interaction remain insignificant, increasing risk and discouraging ownership .
, .
Efficient debt use, cost control, and profitability improvement are needed to reverse this effect .
, .
The coefficient of 1.
34e-06 with a P-value of 0.
367 shows no significant effect, meaning the interaction of ATO and product development costs (PDC) does not influence managerial ownership.
PDC significantly reduce managerial ownership, while ATO and its interaction remain insignificant.
Factors like profitability, risk, liquidity, and innovation strategy play a stronger role, with PDC having greater impact.
Companies need to improve asset efficiency and manage development costs strategically to create stronger incentives for managerial ownership, as supported by .
, .
The coefficient of -6.
98e-07 with a P-value of 0.
722 shows no significant effect, meaning the interaction between PER and PDC does not influence managerial ownership.
PDC positively affects managerial ownership, while PER is insignificant due to its speculative nature.
No synergistic interaction is found.
Companies should improve profitability, manage development costs efficiently, and reduce risks to strengthen this relationship, consistent with research showing effective cost management and stable PER can enhance managerial influence .
, 59, .
The Interaction of ROA.
CR.
DAR.
ATO.
PER on Managerial Ownership Moderated by Financial Distress Financial distress significantly and negatively affects managerial ownership, indicating managers reduce share ownership during financial difficulties.
ROA and its interaction with financial distress are insignificant, suggesting factors like company risk, management policies, and economic conditions influence this Companies should improve profitability through operational efficiency and financial risk management, while concentrated ownership and capital optimization can mitigate financial distress and enhance performance, as supported by .
The coefficient of -0.
001963 with a P-value of 0.
082 shows no significant effect, meaning the interaction between cash ratio and financial distress does not influence managerial ownership.
Both variables negatively affect ownership individually, but their interaction is insignificant, consistent with .
, .
To improve results, companies should manage liquidity efficiently, reduce financial risk, and enhance operations, as supported by .
, 62, .
CR and financial distress each have a significant negative effect on managerial ownership, showing managers tend to sell shares when companies are highly liquid or financially distressed.
Their interaction is insignificant, indicating no combined effect.
DAR increases managerial ownership but weakens under financial distress, as debt risk in difficult conditions prompts managers to reduce ownership.
Positive moderation can be achieved through efficient debt management, productive investment, and strong risk control, supported by .
The coefficient of -0.
0000461 with a P-value of 0.
189 shows no significant effect, meaning the interaction between ATO and financial distress does not influence managerial ownership.
ATO strengthens, while financial distress weakens managerial ownership, but their interaction is insignificant, indicating asset efficiency does not change the impact of financial risk on ownership decisions.
Strengthening the positive and significant effect of the interaction of ATO and financial distress on managerial ownership can be achieved through improving model specifications, developing stronger theoretical concepts, and improving data qual-
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ity and statistical methods.
Recent research shows that effective managerial ownership can improve company performance and reduce the negative impact of financial distress through efficient asset management.
This summary refers to various theories and studies, such as .
related to agency theory, .
in the resource-based view, as well as recent studies by .
, .
which discuss the interaction of asset turnover and financial distress in the context of managerial ownership.
Financial distress significantly and negatively affects managerial ownership, as managers sell shares to reduce risk during financial difficulties.
PER has a negative but insignificant effect, and its interaction with financial distress is also insignificant, indicating both work independently.
Strengthening this interaction requires better model specifications, stronger theory, and improved data quality, as shown by .
where managerial ownership can strengthen PERAos impact on distress through strategies like R&D investment .
, .
Product Development Costs versus Managerial Ownership Recent studies show a positive relationship between product development costs and managerial ownership, where increased investment boosts managerial confidence in company prospects and encourages stock This aligns with research emphasizing innovation and R&D as drivers of managerial involvement .
and agency theory, which states that managerial ownership aligns interests with shareholders .
Innovation and long-term R&D investment incentivize managers, especially in firms with low R&D intensity, to increase ownership.
Firm size, economic conditions, and internal strategies should be considered to maintain this positive effect, supported by agency theory .
and resource theory .
Relationship Financial Distress and Stock Returns on Managerial Ownership Financial distress negatively affects managerial ownership as managers tend to sell shares to protect personal assets during periods of risk and uncertainty.
This occurs because financial difficulties lower stock values and shift focus to short-term stability.
Research supports that financial distress weakens managerial ownership .
Mitigating this impact requires debt restructuring, improved liquidity, and capital diversification.
Strengthening managerial commitment, investing in innovation, and applying organizational resilience theory .
and transformational leadership theory .
can also moderate this negative effect.
Stock returns have a positive and significant relationship with managerial ownership, where higher managerial ownership increases stock returns.
The coefficient of 0.
263473 with a P-value of 0.
000 confirms this strong effect .
, 24, 71Ae.
This supports prior findings that aligning manager and shareholder incentives improves firm performance and stock returns.
To sustain this positive relationship, companies must prevent conflicts of interest, overconfidence, and weak governance, ensuring managerial decisions effectively enhance performance and returns.
Managerial Implications for Cost and Risk Management Agency theory explains the relationship between owners .
and managers .
, where conflicts arise from differing goals and information asymmetry.
In Southeast AsiaAos competitive F&B industry, managers must balance long-term investments such as product development with short-term financial performance measures like ROA and liquidity.
Managerial ownership aligns managers and shareholders interests, promoting sustainable value creation.
Product development costs moderate this relationship, as high costs can pressure short-term profits and discourage ownership, while perceived growth opportunities can increase managerial investment.
Financial distress adds risk, often leading managers to reduce ownership and weakening the positive effect of financial performance.
Empirical results show profitability and liquidity positively influence managerial ownership, while product development costs and financial distress negatively moderate this Managing development costs and financial risks effectively is crucial to maintaining ownership Good corporate governance also reduces conflicts, builds trust, and supports managerial investment even during financial challenges.
Combining agency theory with the resource-based view offers a comprehensive understanding of managerial ownership dynamics in Southeast AsiaAos F&B sector, emphasizing the moderating roles of product development costs and financial distress.
Strategy to Improve Company Performance Strategies to improve firm performance include optimizing return on assets, developing human resources, diversifying revenue, maintaining strong liquidity, controlling product development costs, and managing the price-earnings ratio.
These efforts enhance profitability and long-term financial strength by maximizing resource use and technology to raise ROA, improving cash management and emergency funds to strengthen liquidity, and applying prudent debt management to reduce financial risk and build shareholder confidence.
APTISI Transactions on Technopreneurship (ATT).
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APTISI Transactions on Technopreneurship (ATT) ye
MANAGERIAL IMPLICATIONS
The results show that profitability (ROA) and liquidity (CR) significantly increase managerial ownership, while financial distress and high product development costs weaken these effects.
Managers should maintain strong operational performance and liquidity to signal stability and align interests with shareholders.
Product development costs must be managed strategically to balance innovation with financial stability, ensuring R&D supports long-term value without harming short-term performance.
Firms are encouraged to strengthen risk management, adopt prudent debt policies, and optimize asset use to reduce financial distress.
Emphasizing good governance, innovation strategy, and financial discipline can enhance resilience, shareholder value, and sustainable growth aligned with SDG 8.
SDG 9, and SDG 12.
CONCLUSION
This study reveals that higher profitability motivates managers to increase their stock ownership, suggesting a stronger alignment between managerial and shareholder interests as company performance improves.
In contrast, when financial distress intensifies, managers become less inclined to hold shares due to increased The findings also show that stock returns have a positive and significant relationship with managerial ownership, indicating that managers with greater ownership tend to contribute more effectively to improving firm value and shareholder wealth.
Furthermore, the research identifies that profitability, liquidity, and stock returns play a crucial role in encouraging managerial ownership, whereas financial risks and high debt levels tend to discourage it.
This highlights the delicate balance between opportunity and risk that shapes managerial decisions regarding equity By analyzing these dynamics, the study provides deeper insights into how financial performance indicators drive ownership behavior among managers in the corporate context.
Importantly, the inclusion of financial difficulties and product development costs as moderating variables offers a novel perspective on managerial ownership dynamics.
These factors refine the understanding of how internal and external conditions influence ownership patterns.
The practical implication is that firms, especially in Southeast AsiaAos F&B industry, should maintain strong liquidity and focus on innovation while managing risks effectively.
Such strategies are expected to enhance managerial engagement, improve company performance, and strengthen long-term shareholder value.
DECLARATIONS
About Authors Deni Sunaryo (DS) https://orcid.
org/0000-0002-1897-7587 Etty Puji Lestari (EP) https://orcid.
org/0000-0002-3501-5400 Siti Puryandani (SP) https://orcid.
org/0000-0002-0830-3028 Hersugondo (HH) https://orcid.
org/0000-0003-3860-3045 Author Contributions Conceptualization: DS.
EP.
SP, and HH.
Methodology: DS.
EP.
SP, and HH.
Software: DS.
Validation:
DS and SP.
Formal Analysis: EP and HH.
Investigation: DS.
EP.
SP, and HH.
Resources: DS.
EP.
SP, and HH.
Data Curation: HH.
Writing Original Draft Preparation: DS.
EP.
SP, and HH .
Writing Review and Editing:
DS.
EP.
SP, and HH.
Visualization: DS.
EP.
SP, and HH.
All authors.
DS.
EP.
SP, and HH, have read and agreed to the published version of the manuscript.
Data Availability Statement The data presented in this study are available on request from the corresponding author.
Funding We thank the Ministry of Education of the Republic of Indonesia for funding the BIMA Research for Doctoral Dissertation in 2024, with grant number 097/E5/PG.
PL/2024.
Additionally, we thank the LPPM Universitas Terbuka for providing the necessary facilities and infrastructure.
E-ISSN: 2656-8888 | P-ISSN: 2655-8807
Declaration of Conflicting Interest The authors declare that they have no conflicts of interest, known competing financial interests, or personal relationships that could have influenced the work reported in this paper.
REFERENCES