This study examines and analyzes the effect of innovation on the price to book value mediated by managerial ownership in Indonesian companies. In order to achieve the goals and objectives, the company increases its value by increasing shareholders. Improving the welfare of shareholders can be done through investment and financial policies, and is reflected in share prices in the capital market. The higher the share price, the better the owner’s welfare, and the company’s value will also increase. The population of this study is the manufacturing companies – as many as 162 – listed on the Indonesia Stock Exchange in 2012-2017. By using a purposive sampling method, 25 companies met the criteria for the sample. The data comes from the companies’ annual report taken from the Indonesia Stock Exchange website. The data is further analyzed using partial least square (PLS). The results of the study showed that innovation has a significant effect on price to book value. The companies with high marketing innovation produce high company performance as well. The companies get a commensurate reward from marketing innovation activities to carry out continuous marketing innovations. In addition, managerial ownership does not mediate the relationship between innovation and price to book value

Abstract
1. Introduction
2. Literature Review
3. Research Methods
4. Results
    4.1. Descriptive Statistics
    4.2. Inner Model Testing
    4.3. Hypothesis Testing
5. Discussion
    5.1. The Effect of Innovation on PBV
    5.2. The Effect of Innovation on Managerial Ownership
    5.3. The Effect of Managerial Ownership on PBV
6. Conclusion
References

• Udin UDIN(Business and Economic Faculty, Universitas Muhammadiyah Yogyakarta) Corresponding Author
• Nur Aisyah F. PULUNGAN(Economic Faculty, Universitas Mercubuana)
• Basuki BASUKI(Economic Faculty, Universitas Mercubuana)