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The relationship of compensation for the board of directors and board of commissioners with corporate social irresponsibility

The relationship of compensation for the board of directors and board of commissioners with corporate social irresponsibility

Title : The Relationship of Compensation for Board of Directors and Board of Commissioners with Corporate Social Irresponsibility

Authors:

  1. Marlin Pernila Susilawati
  2. Harymawan Faith

Department : Accounting

Journal Name : Journal of Accounting and Business Education

Kinds of Journal:

Keywords : Board of Directors Compensation, Board of Commissioners Compensation, Boards Compensation, Corporate Social Irresponsibility

Abstract:

This study aimed at determining and analyzing the effect of compensation for the Board of Directors and Board of Commissioners on Corporate Social Irresponsibility. This study used 353 Observations of 76 Companies listed in the Indonesia Stock Exchange and the Global Reporting Initiative's Database of 2014-2018 and Employed the Ordinary Least Square Regression Analysis Method. This study found that board compensation had positive and significant effect on corporate social irresponassability. This study indicated that the higher the board compensation, the more company tended to carry out corporate social irresponsibility due to lack of oversight in board decision-making or poor corporate governance practices and the boards' desire to have their prospected regardless of the stakession. This study implied that the company managers and stakeholders should determine the amount of board compensation.

For details : https://journal2.um.ac.id/index.php/jabe/article/view/16963