Proceedings of the 3rd Annual International Seminar and Conference on Global Issues (ISCoGI 2017)

Influence of Financial Performance, Value of Company, Corporate Governance Mechanism For Executive Compensation

Authors
Sri Retnoningsih, Setyo Mahanani
Corresponding Author
Sri Retnoningsih
Available Online April 2019.
Keywords
Return on Asset (ROA); corporate values (Tobin’s Q); Mechanism of Corporate Governance (Institutional Ownership); Executive Compensation
Abstract
This study explains the effect of corporate performance, corporate values and corporate governance mechanisms on executive compensation. The sample is 16 firms listed in the manufacturing company for the period of 2010-2016 (112 research data). Results of F test show that the regression model used to determine the ROA variable (X1), Tobin’s Q (X2), Institutional ownership (X3) on Executive Compensation (Y) is jointly influential, so the proposed hypothesis is proved true. Result of F test 20,275 with p value (sig.) Equal to 0.000 which is much smaller 5% (0.05). The regression model in this study indicates that the independent variables are able to explain the Executive compensation by 36%. Based on t test result, it is found that ROA (X1) variable has no effect on execitive compensation, Tobin's Q (X2), Institutional Ownership (X3), which significantly influence Executive Compensation (Y).
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Proceedings
Part of series
Advances in Social Science, Education and Humanities Research
Publication Date
April 2019
ISBN
978-94-6252-701-0
ISSN
2352-5398
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Sri Retnoningsih
AU  - Setyo Mahanani
PY  - 2019/04
DA  - 2019/04
TI  - Influence of Financial Performance, Value of Company, Corporate Governance Mechanism For Executive Compensation
PB  - Atlantis Press
SP  - 179
EP  - 183
SN  - 2352-5398
UR  - https://www.atlantis-press.com/article/55916211
ID  - Retnoningsih2019/04
ER  -