FACTOR ANALYSIS OF DETERMINANTS OF REMUNERATION OF DIRECTORS AND COMMISSIONERS OF THE INDONESIAN BANKING
No Thumbnail Available
Files
Date
2010-10-27
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This research explores the determinan analysis of remuneration for Directors and
Commissioners in banking industry which is listed in Indonesia Stock Exchange for period
2004-2009. The determinan factors of the remuneration for Directors and Commissioners
are bank performance, structure of ownership, and the proportion of relation between the
Directors and Commissioners to that of the owner of the company.
The bank performances are Return On Asset (ROA), Return On Equity (ROE), Net
Interest Margin (NIM), Loan to Deposit Ratio (LDR), Non Performing Loan (NPL),
Capital Adequacy Ratio (CAR), and Earning Per Share (EPS). The result shows that the
important determinant of Directors and Commissioners remuneration are Return On Asset
(negative association), Return On Equity (positive association), Net Interest Margin
(positive association), Loan to Deposit Ratio (positive association), Non Performing Loan
(positive association), Earning Per Share (positive association), family’s structure of
ownership (positive association), and foreign ownership (positive association).
Description
Keywords
Agency conflict, bank performance, ownerships structures, good corporate governance, and remuneration for directors and commissioners