AICS
Vol. 3 No. 1 (2020): International Conference on Global Innovation and Trends in Economy 2020

Leverage and Executive Pay-Performance of The Indonesian Family Firms

Aang Kunaifi (Institut Teknologi Sepuluh Nopember Surabaya Indonesia)
Ninditya Nareswari (Institut Teknologi Sepuluh Nopember Surabaya Indonesia)
Byz Risyad (Institut Teknologi Sepuluh Nopember Surabaya Indonesia)

Article Info

Publish Date
04 Mar 2021

Abstract

This study aims to investigate the impact of firm performance on executive compensation. This study also examines the moderating role of leverage on the firm performance and executive pay-performance relationship. Used data panel regression as a method, this study showed that firm performance had a positive impact on executive compensation. This paper also showed that leverage weakens the pay-performance relationship. These results indicate that creditors prefer to assess family firm performance based on the risk rather than accounting performance. Higher leverage illustrated a high risk. The firm with high risk indicated poor executive performance. As a result, compensation will be lower.

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Journal Info
AICS
Website

Abbrev

conferenceseries

Publisher

Asosiasi Dosen Indonesia

Subject

Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education

Description

ADI International Conference Series (AICS) is open access journal published by Asosiasi Dosen Indonesia. AICS (ADI International Conference Series) is Supported by ADI Publisher & Organized by Pandawan. AICS (ADI International Conference Series) provides media to publish scientific articles from ...