INTERNATIONAL PUBLICATIONS

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DIRECTORS AND COMMISSIONERS REMUNERATION AND FIRM PERFORMANCE: INDONESIAN EVIDENCE
(2nd International Conference on Business and Economic Research (2nd ICBER 2011), 2011-03-14) Oviantari, Intan
The financial crisis in Asia in mid-1997 have an impact on the economic performance of countries in East Asian, including Indonesia. The lack of sound corporate governance has been argued to be a major cause of the 1997 financial and economic crisis experienced by countries in the East Asian region (D’Cruz, 1999). The Indonesian government through the relevant authorities such as the Ministry of Finance, Capital Market Supervisory Agency and Financial Institution (Bapepam-LK), Indonesia Stock Exchange, Bank Indonesia (Central Bank of the Republic of Indonesia), oversee the implementation of corporate governance practices in companies. Corporate governance principles require the disclosure of remuneration for directors and commissioners (“directors commissioners”). The purpose of this study is to investigate the relationship between Indonesian directors’ remuneration and firm performance. From a sample of 100 listed companies throughout the period 2008-2009, it has been found that there has been positive relationship between current year directors and commissioners remuneration and lag effect analysis accounting performance indicator.