Pengaruh Risiko Likuiditas Dan Kompensasi Eksekutif Terhadap Profitabilitas Perusahaan Perbankan Di Indonesia

Abstract

This study aims to examine the effect of liquidity risk and executive compensationon bank profitability listed in Indonesia Stock Exchange period 2011-2015. Liquidity risk is proxied by deposit, cash, liquidity gap, and NPL. Executive compensation is proxied by total compensation given by the company to its executives. Profitability is proxied by income before taxes. Samples were taken by using purposive sampling and sample selection criteria. The analysis technique used in this research is simple regression analysis. The results showed that the liquidity risk affect bank profitability significantly and executive compensation affect bank profitability significantly. The increase in cash and deposits can increase the profitability of banks. Both of these faktors have a positive affect on bank profitability, while the liquidity gap and NPL as faktors exacerbating bank profitability and negatively affect on bank profitability. Executive compensation has a positive effect on bank profitability. The result of the study are expected to add to the research literature that discuss the faktors that affect of profitability on banking companies. Further research can add control variable is firm size.