Main Article Content
The development of share prices during 2010 to 2019 fluctuated, and did not match some expectations of shareholders. This stock price development does not indicate an increase in firm value, even though a high firm value is an expectation for shareholders. Firm value is also important in order to increase investor confidence, especially domestic investors on the IDX (stock exchange). Domestic investors have a big role to play in strengthening the domestic stock market, so the stock price index (IHSG) is stable. Movement of the composite stock price index (IHSG) fluctuating, the role of domestic investors is very important. In holding back the fluctuation of the economic crisis, the number of domestic investors also plays an important role (Nabhani, 2013). The number of investors on the IDX (stock price) is still small compared to the total population of Indonesia, as shown in Figure 1. The number of investors on the Indonesia Stock Exchange in 2019 who had Single Investor Identification (SID) was 2,478,243 people. Single Investor Identification (SID) is a single investor identity, which used to carry out activities on the Indonesian capital market, from transactions to settlement. This Single Investor Identification is issued by PT.Indonesian Central Securities Depository (KSEI). The phenomenon of fluctuating firm value requires corporate governance to increase investor confidence, especially domestic investors. The role of domestic investors is needed so that dependence on foreign investors can be reduced and stock price fluctuations can be controlled.
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