Abstract
This study aims to determine the factors that affect the CEO compensation. Variables used in this study include corporate social responsibility, return on assets, CEO ownership, independent board, tobin's q, firm size, and leverage. The approach used in this research is quantitative approach. The samples in this study are companies in the mining sector listed on the Indonesia Stock Exchange (BEI) in the period of 2012-2016. Based on the results of the test, the results obtained that the variables of corporate social responsibility, return on assets, CEO ownership, board independent, firm size, and leverage have a significant influence on CEO compensation Return on assets variables have a significant positive impact on CEO compensation. CEO ownership variables have a significant negative impact on CEO compensation. Variable board independent, firm size, and leverage have a significant positive impact on CEO compensation.
Highlights
Penelitian ini bertujuan untuk mengetahui faktor-faktor yang mempengaruhi CEO compensation
According to Jian et al (2015) in his study that discussed CEO compensation and corporate social responsibility by using independent variables namely corporate social responsibility (CSR), company size (FIRMSIZE), return on assets (ROA), volatility return on assets (VOLAROA), return (RETURN ), stock return volatility (VOLARET), dividend (MTB) market value of equity, TUNURE, age of CEO (AGE), independent directors on the board (BINDEP), common stock owned (BDOWN), institutional shareholders (INSTI)
The results of this study indicate that FIRMSIZE, Tobin's Q (TOBQ), LEV, ROA, board independence (BINDEP) have a significant positive influence on CEO compensation
Summary
Penelitian ini bertujuan untuk mengetahui faktor-faktor yang mempengaruhi CEO compensation. Variabel yang digunakan dalam penelitian ini antara lain corporate social responsibility, return on asset, CEO ownership, board independent, tobin’s q, firm size, dan leverage. In order to be able to produce good performance, the involvement of business entities in conflict and problems in business must be minimized by creating a good relationship between the company and the community in the form of social responsibility or called Corporate Social Responsibility (CSR). Kane in Mahoney & Thorne (2006) stated that when companies are more socially responsible and prioritize long-term goals, those companies will enjoy long-term benefits This is because the implementation of CSR will have a positive impact on consumer buying interest, so that it will increase sales which will affect the increasing of the company's performance.
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call