Executive Compensation and Risk: An Empirical Study in Indonesia Rahmat Setiawan (a*), Zunairoh (b)
a)Economics and Bussiness Faculty of Airlangga University
Jalan Airlangga 4, Surabaya, Indonesia
*rahmatsetiawan[at]feb.unair.ac.id
b) Economics and Bussiness Faculty of Airlangga University
Jalan Airlangga 4, Surabaya, Indonesia
zunairoh9[at]gmail.com
Abstract
We investigate the relationship between executive compensation and risk for banks in Indonesia over the 2010 until 2013 periods with 412 observations. Risk of banks measured by non-performing loan that implicated in loan risk. Non-performing loan as dependent variable. The executive compensation as independent variable. Firm size, firm age, and capital asset ratio as control variable. Here, the result of the study indicates that executive compensation, firm size, firm age, and capital asset ratio have negative effect on risk significantly
