• Richard Friendly Simbolon Universitas Advent Indonesia
  • Francis Hutabarat Universitas Advent Indonesia
Abstract viewed = 0 times
PDF (Bahasa Indonesia) downloaded = 0 times


Theories and well-documented research findings have provided information regarding the management compensation and firm performance relationship, yet a robust and consistent relationship is still on quest. The purpose of this study is to find if the prevalent linear assumption is the reason behind the insignificant results regression analysis on management compensation and firm performance. This study used data of government owned company in Indonesia during 2016 to 2018. This study employed the curve estimation on statistical software to find out the most effective fit to describe the relationship between variables.  The result showed significant results on the effect of management compensation to Return on Asset (ROA), Return on Equity (ROE, and average of performance with linear model as the most effective based on the highest F value compared to other models, however there is an insignificant result on the effect of management compensation to Net Profit Margin (NPM) although linear model still the most effective model compared to others.

Berbagai teori dan bukti hasil penelitian yang terdokumentasi dengan baik telah memberikan informasi terkait pengaruh kompensasi manajemen dan performa perusahaan namun pengaruh yang signifikan dan konsisten masih tetap dalam pencarian. Tujuan dari penelitian ini untuk mengetahui apakah asumsi hubungan secara garis lurus yang merupakan hipotesa berdasarkan teori yang umum digunakan merupakan alasan dibalik hasil pengaruh yang tidak signifikan antara kompensasi manajemen dan performa perusahaan. Penelitian ini menggunakan data dari perusahaan Badan Usaha Milik Negara (BUMN) di Indonesia yang terdaftar di Bursa Efek Indonesia (BEI) dari tahun 2016 hingga 2018. Selain itu penelitian ini akan menggunakan fungsi estimasi kurva pada perangkat lunak statistik untuk mendapatkan model yang paling efektif untuk menggambarkan pengaruh antara variabel terkait.  Hasil menunjukkan pengaruh signifikan antara kompensasi manajemen terhadap Return on Asset (ROA), Return on Equity (ROE) dan rata-rata performa (ROA, ROE dan NPM) dengan model linear menjadi model yang paling efektif berdasarkan nilai F tertinggi dibanding model lainnya, namun kompensasi mananejemen tidak berpengaruh signifikan terhadap Net Profit Margin (NPM) meskipun model linear tetap menjadi model yang paling efektif.


Aaron, J., Harris, M., McDowell, W., & Cline, B. (2014). Optimal CEO Incentive Contracts: A Prospect Theory Explanation. Journal of Business Strategies, 31(2), 336.
Barro, J. R., & Barro, R. J. (1990). Turnover of Bank CEOs. Journal of Labor Economics, 8(4), 448–481. https://doi.org/10.1086/298230
Conyon, M. J. (1997). Corporate governance and executive compensation. 15, 493–509.
Devers, C. E., Cannella, A. A., Reilly, G. P., & Yoder, M. E. (2007). Executive compensation: A multidisciplinary review of recent developments. Journal of Management, 33(6), 1016–1072. https://doi.org/10.1177/0149206307308588
Eastwell, P. (2014). Understanding Hypotheses , Predictions , Laws , and Theories. 13(1), 16–21.
Frey, B. S., & Osterloh, M. (2005). Yes, managers should be paid like bureaucrats. Journal of Management Inquiry, 14(1), 96–111. https://doi.org/10.1177/1056492604273757
Ghodrati, H., & Taghizad, G. (2014). Management Science Letters. 4, 1951–1960. https://doi.org/10.5267/j.msl.2014.8.029
Guo, L. (2013). Does CEO compensation stimulate performance.pdf (p. 4).
Jensen, M. C., Murphy, K. J. (2015). Performance Pay and Top-Management Incentives. 98(2), 225–264.
Kazan, E. (2016). The impact of CEO compensation on firm performance in Scandinavia.
Leonard, J. S. (1990). Executive Pay and Firm Performance. Industrial and Labor Relations Review, 43(3), 13S. https://doi.org/10.2307/2523569
Lindström, A., & Svensson, J. (2016). Top management compensation and firm performance - A matter of context ?
Mallette, P., & Hopkins, W. (1995). Social, Political, and Economic Determinants of Chief Executive Compensation. Journal of Managerial Issues, 7(3), 253.
Matolcsy, Z., & Wright, A. (2011). CEO compensation structure and firm performance. 51(April 2010), 745–763.
Randoy, T., & Nielsen, J. (2015). Company Performance , Corporate Governance , and CEO Compensation in Company Performance , Corporate Governance , and CEO Compensation in Norway and Sweden. March 2002. https://doi.org/10.1023/A
Sheikh, M. F., Bhutta, A. I., & Sultan, J. (2019). CEO Compensation and Unobserved Firm Performance in Pakistan. 6(3), 305–313. https://doi.org/10.13106/jafeb.2019.vol6.no3.305
Turner, S. (2016). Hypothesis : Including the History of the Scientific Fact. https://doi.org/10.1002/9781405165518.wbeosf002.pub2
Utami, E. R., & Kusuma, I. W. (2019). Firm Performance, Top Management Compensation, and Risk Preference: A Story of Indonesian Firms. The Indonesian Journal of Accounting Research, 22(02), 261–286. https://doi.org/10.33312/ijar.465
van der Laan, G., van Ees, H., & van Witteloostuijn, A. (2010). Is pay related to performance in The Netherlands? An analysis of Dutch executive compensation, 2002-2006. Economist, 158(2), 123–149. https://doi.org/10.1007/s10645-010-9140-7
Vanvoorhis, C. R. W., & Morgan, B. L. (2007). Understanding Power and Rules of Thumb for Determining Sample Sizes. 3(2).
How to Cite
SIMBOLON, Richard Friendly; HUTABARAT, Francis. KOMPENSASI MANAJEMEN DAN PERFORMA PERUSAHAAN PADA BADAN USAHA MILIK NEGARA YANG TERDAFTAR PADA BURSA EFEK INDONESIA TAHUN 2016 - 2018: CURVE-FITTING YANG EFEKTIF. Kurs : Jurnal Akuntansi, Kewirausahaan dan Bisnis, [S.l.], v. 5, n. 1, p. 102-111, june 2020. ISSN 2527-8215. Available at: <https://www.ejournal.pelitaindonesia.ac.id/ojs32/index.php/KURS/article/view/687>. Date accessed: 15 aug. 2022.

Most read articles by the same author(s)

Obs.: This plugin requires at least one statistics/report plugin to be enabled. If your statistics plugins provide more than one metric then please also select a main metric on the admin's site settings page and/or on the journal manager's settings pages.