Director pay slice, the remuneration committee, and firm financial performance
This study aimed to analyze the relationship between the director pay slice and firm financial performance. This study used 1024 observations from companies listed on the Indonesia Stock Exchange from 2011 to 2019. The analytical technique used in this study was ordinary least square regression with...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2087291 |
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| _version_ | 1849717328182247424 |
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| author | Nadia Klarita Rahayu Iman Harymawan Mohammad Nasih John Nowland |
| author_facet | Nadia Klarita Rahayu Iman Harymawan Mohammad Nasih John Nowland |
| author_sort | Nadia Klarita Rahayu |
| collection | DOAJ |
| description | This study aimed to analyze the relationship between the director pay slice and firm financial performance. This study used 1024 observations from companies listed on the Indonesia Stock Exchange from 2011 to 2019. The analytical technique used in this study was ordinary least square regression with a cluster model approach and fixed effects using the STATA 16.0 software. This study partially found that director pay slice and the existence of a remuneration committee are positively and significantly related to the company’s current and future performance. Furthermore, this study indicates that companies with a high director pay slice and remuneration committees tend to have a better level of performance because the presence of a remuneration committee helps to align the relationship between the director pay slice and firm financial performance. This study has implications for developing countries regarding effective corporate governance by analyzing the governance in Indonesia. Our study’s overarching goal was to understand the relationship between the director’s pay slice and the firm’s financial performance through the overall analysis. |
| format | Article |
| id | doaj-art-12015bd9c8fc412cb09d92aa10c65132 |
| institution | DOAJ |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-12015bd9c8fc412cb09d92aa10c651322025-08-20T03:12:42ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2087291Director pay slice, the remuneration committee, and firm financial performanceNadia Klarita Rahayu0Iman Harymawan1Mohammad Nasih2John Nowland3Department of Accounting, Faculty of Economic and Business, Universitas Airlangga, Surabaya, IndonesiaDepartment of Accounting, Illinois State University, Normal, Illinois, USADepartment of Accounting, Illinois State University, Normal, Illinois, USADepartment of Accounting, Illinois State University, Normal, Illinois, USAThis study aimed to analyze the relationship between the director pay slice and firm financial performance. This study used 1024 observations from companies listed on the Indonesia Stock Exchange from 2011 to 2019. The analytical technique used in this study was ordinary least square regression with a cluster model approach and fixed effects using the STATA 16.0 software. This study partially found that director pay slice and the existence of a remuneration committee are positively and significantly related to the company’s current and future performance. Furthermore, this study indicates that companies with a high director pay slice and remuneration committees tend to have a better level of performance because the presence of a remuneration committee helps to align the relationship between the director pay slice and firm financial performance. This study has implications for developing countries regarding effective corporate governance by analyzing the governance in Indonesia. Our study’s overarching goal was to understand the relationship between the director’s pay slice and the firm’s financial performance through the overall analysis.https://www.tandfonline.com/doi/10.1080/23322039.2022.2087291Director pay slicefirm financial performanceremuneration committeecorporate governanceM40M41 |
| spellingShingle | Nadia Klarita Rahayu Iman Harymawan Mohammad Nasih John Nowland Director pay slice, the remuneration committee, and firm financial performance Cogent Economics & Finance Director pay slice firm financial performance remuneration committee corporate governance M40 M41 |
| title | Director pay slice, the remuneration committee, and firm financial performance |
| title_full | Director pay slice, the remuneration committee, and firm financial performance |
| title_fullStr | Director pay slice, the remuneration committee, and firm financial performance |
| title_full_unstemmed | Director pay slice, the remuneration committee, and firm financial performance |
| title_short | Director pay slice, the remuneration committee, and firm financial performance |
| title_sort | director pay slice the remuneration committee and firm financial performance |
| topic | Director pay slice firm financial performance remuneration committee corporate governance M40 M41 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2087291 |
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