Cash Compensation, Corporate Governance, Ownership, and Dividend Policy on Banking Performance
Tafdil Husni (a), Rida R (b*), Riyadi Aprayuda (c)
Faculty of Economi, Andalas University
Abstract
This study analyzes the behavior of cash compensation, corporate governance, dividend policy and the performance of the Banking Industry in Indonesia. This study uses 33 go-public banks that are listed on the Indonesia Stock Exchange with 165 observations in 2014-2018. The analytical method uses Panel data regression with the Random Effect Model (REM). The results of the regression data obtained by the executive compensation had a significant positive effect on company performance, the proportion of compensation received by executives tended to have a direct impact on firm value. The results also showed that dividend policy had a significant positive effect on firm value, the greater the number of dividends distributed gave a positive signal to the market
Keywords: Cash Compensation, Corporate governance, dividends, and the performance of the Banking Industry
Topic: Corporate Finance