Lindrianasari, Lindrianasari (2012) Corporate growth and CEO compensation: Case from Indonesia. The Indonesian Journal of Accounting Research, 15 (2). pp. 167-186. ISSN 2086-6887

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Abstract

This study aims to obtain empirical evidence about whether a corporate growth affects the amount of compensation received by CEOs in Indonesia. The contribution of this study is to provide empirical evidence about the existence of perceived of justice by the CEO in the term of compensation when they succeeded create the value of the firm. It is important to ensure the sustainability of performance, even encourage CEO loyalty to the firm. The samples used are as many as 395 firms-years with growth data used are from the firm's annual report, period 2005-2008. The growth of the corporate performance for three consecutive periods (2005/2006; 2006/2007, and 2007/2008), then compared it with the amount (growth) of compensation received by CEOs. Test results showed that the growth of the corporate performance growth has a positive relationship to the amount of compensation received by the CEO in Indonesia. Two of three financial performance used in the model, the net income and total assets, are significantly linked to the amount of compensation received by CEOs. While stock price is not show a relationship with what the theory predicted. With these findings, the research hypothesis that says the growth of the company's performance was positively related to the amount of compensation received by the CEO, statistically supported.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance
Divisions:	Fakultas Ekonomi dan Bisnis (FEB) > Prodi Akuntansi
Depositing User:	Prof. Dr. Lindrianasari
Date Deposited:	04 Nov 2016 02:47
Last Modified:	04 Nov 2016 02:47
URI:	http://repository.lppm.unila.ac.id/id/eprint/148

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