Corporate Performance and Executive Compensation in Indonesia

Retnoningrum Hidayah*, Anwar Zahid, Trisni Suryarini, Sara R. Basher and Eko Handoyo
Additional contact information
Retnoningrum Hidayah*: Faculty of Economics Universitas Negeri Semarang, Indonesia
Anwar Zahid: Faculty of Business and Economics, Independent University, Bangladesh
Trisni Suryarini: Faculty of Economics, Universitas Negeri Semarang, Indonesia
Sara R. Basher: Faculty of Business and Economics, Omar Al Mukhtar University, Lybia
Eko Handoyo: Faculty of Social Sciences, Universitas Negeri Semarang, Indonesia

The Journal of Social Sciences Research, 2019, vol. 5, issue 3, 634-639

Abstract: The performance of a company can be determined by several factors like corporate governance and risk management. Adequate corporate governance will create a good corporate climate that makes company able to achieve its maximize profits. The purpose of this study is to examine the influence of the size of audit committees, audit committee expertise, institutional ownership, corporate performance and its impact on executive compensation. This study uses purposive sampling method. The research sample is 86 of manufacturing companies listed on the Indonesian Stock Exchange from 2013 to 2015. Data analysis method used structural equation modeling (SEM) with WarpPLS 6. The results showed that the number of audit committee personnel and audit committee’s expertise had no effect on company performance. However, institutional ownership affects the performance of the company. Furthermore, company performance does not contribute significantly to executive compensation. This study is useful for corporate internal system and gives policy makers a better understanding of corporate performance from management perspective. Furthermore, this paper contributes to the literature by identifying the role of audit committee characteristics, institusional ownership, and executive compensation in company performance.

Keywords: Audit committee; Corporate performance; Institutional ownership; Executive compensation. (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.arpgweb.com/pdf-files/jssr5(3)634-639.pdf (application/pdf)
https://www.arpgweb.com/journal/7/archive/03-2019/3/5 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arp:tjssrr:2019:p:634-639

Access Statistics for this article

The Journal of Social Sciences Research is currently edited by Dr. Paola Magnano

More articles in The Journal of Social Sciences Research from Academic Research Publishing Group Rahim Yar Khan 64200, Punjab, Pakistan.
Bibliographic data for series maintained by Managing Editor ().