TY - JOUR
T1 - The effect of diversification and executive compensation on firm value
T2 - Study of manufacturing sector listed on BEI
AU - Fadilah, Wahyu Inayatul
AU - Habiburrochman,
N1 - Publisher Copyright:
© 2020 Primrose Hall Publishing Group.
PY - 2020/1/1
Y1 - 2020/1/1
N2 - Free trade in the Asia-Pacific region (AFTA) and Southeast Asia (MEA) becomes a challenge for family firms in developing their business activities. Strategies that can be taken by family firms to cope with existing market pressures can be pursued by implementing a diversification and compensation strategy. This study aims to explain and analyse the influence of diversification in related models, diversification on unrelated models, and executive compensation to firm value. In this research the population used family firms in the manufacturing sector listed on the Indonesia Stock Exchange during the year 2012-2016, amounted to 140. Based on the population criteria set, the sampling method is purposive sampling. Research samples are 90 companies. Eviews Ver 8.0 is used as a data processing tool in this research. The important findings of the research are that the diversification in the related model has no significant effect on firm value, the diversification on the unrelated model has no significant effect on firm value, the executive compensation in the related diversified company has a significant negative effect on firm value, and the executive compensation on the unrelated diversified company has a significant positive effect on the value of the company.
AB - Free trade in the Asia-Pacific region (AFTA) and Southeast Asia (MEA) becomes a challenge for family firms in developing their business activities. Strategies that can be taken by family firms to cope with existing market pressures can be pursued by implementing a diversification and compensation strategy. This study aims to explain and analyse the influence of diversification in related models, diversification on unrelated models, and executive compensation to firm value. In this research the population used family firms in the manufacturing sector listed on the Indonesia Stock Exchange during the year 2012-2016, amounted to 140. Based on the population criteria set, the sampling method is purposive sampling. Research samples are 90 companies. Eviews Ver 8.0 is used as a data processing tool in this research. The important findings of the research are that the diversification in the related model has no significant effect on firm value, the diversification on the unrelated model has no significant effect on firm value, the executive compensation in the related diversified company has a significant negative effect on firm value, and the executive compensation on the unrelated diversified company has a significant positive effect on the value of the company.
KW - Executive Compensation
KW - Family Firm
KW - Firm Value
KW - Related Diversification
KW - Unrelated Diversification
UR - http://www.scopus.com/inward/record.url?scp=85082183563&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85082183563
SN - 2201-1315
VL - 11
SP - 300
EP - 313
JO - International Journal of Innovation, Creativity and Change
JF - International Journal of Innovation, Creativity and Change
IS - 9
ER -
