Determinant of Executive Compensation (Evidence from Indonesian Banking)

Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 02

Abstract

The Covid-19 pandemic, in addition to having an impact on Indonesia's economic growth which is a minus, also has a negative impact on almost all industrial sectors in Indonesia. One of the industrial sectors under pressure is the banking sector. The decline in the performance of the banking company will affect the company's profitability. There are many things that will be done by the principal to make efficiencies related to all kinds of expenses, one of the components that can be reviewed is the amount of executive compensation. This study aims to analyze the effect of ROA, credit growth, growth of third-party funds, NPLs, and Covid-19 on the amount of executive compensation for banking companies listed on the Indonesia Stock Exchange in 2018 to 2021. This research is a quantitative study that uses the puposive sampling method. The results of the study found that ROA, credit growth, and company size were able to influence the amount of executive compensation for banking companies in Indonesia. Meanwhile, the growth of deposits, NPLs, and the Covid-19 pandemic did not affect the amount of executive compensation for banking companies in Indonesia.

Authors and Affiliations

Wahyu Usmawati, Ratna Septiyanti, Usep Syaipudin

Keywords

Related Articles

Factors Affecting the Low Preference of Culinary Traders in Choosing Sharia Financing in Bima City

This study aims to analyze the factors that influence the low preference of culinary traders in choosing sharia financing in Bima City. This research was conducted using quantitative methods. The type of data in this stu...

Leadership Model and Work Motivation of Employees Research and Development Planning Agency for Regional South Sulawesi Province

The research aims to determine the model of leadership and motivation simultaneously on the performance of employees of the South Sulawesi Regional Development Planning Research and Development Agency. The population in...

Analysis of the Influence of Motivation, Work Discipline and Recruitment on Performance of Tni-Au Members at Disbangopsau Mabesau Cilangkap Jakarta

The purpose of this study was to analyze the influence of motivation, work discipline and recruitment on the performance of TNI-AU members at the Cilangkap Jakarta Air Force Operations Development Office, either simultan...

Corporate Factors and Holding Period of Stock: Evidence Indonesia LQ45 Company

The goal of this study is to discover how corporate factors affect holding period. This study's population is companies in the LQ45 group between 2016 and 2020. Multiple linear regression is the analysis tool that was us...

Status Quo of Entrepreneurship in the Mekong River Delta

In the context of an integrated economy with many opportunities and challenges, especially the Coronavirus disease (Covid-19) is causing many difficulties for all nations of the world, entrepreneurship is seen as an eff...

Download PDF file
  • EP ID EP726737
  • DOI 10.47191/jefms/v6-i2-05
  • Views 34
  • Downloads 0

How To Cite

Wahyu Usmawati, Ratna Septiyanti, Usep Syaipudin (2023). Determinant of Executive Compensation (Evidence from Indonesian Banking). Journal of Economics, Finance and Management Studies, 6(02), -. https://europub.co.uk/articles/-A-726737