Monika Pradnya Aurelia Wijayanti
Faculty of Economics and Business, Universitas Airlangga, Indonesia

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

Interacting Roles of Executive Compensation on Organizational Slack and Firm’s Innovation Performance Monika Pradnya Aurelia Wijayanti; Iman Harymawan; Nurul Fitriani
Jurnal Ilmiah Akuntansi dan Bisnis Vol 19 No 1 (2024)
Publisher : Fakultas Ekonomi dan Bisnis, Universitas Udayana bekerjasama dengan Ikatan Sarjana Ekonomi Cabang Bali

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24843/JIAB.2024.v19.i01.p06

Abstract

This study examines the interaction between executive compensation and three types of organizational slack (available, recoverable, and potential) and their impact on the innovation performance of publicly listed companies in Indonesia. The empirical analysis use a dataset of 1,081 firm-year observations from 2010 to 2019. The findings reveal that available slack positively affects innovation performance, whereas recoverable and potential slack have negative impacts. Executive compensation significantly moderates these relationships, especially nullifying the negative impact of recoverable slack on innovation. The results highlight the importance of strategic management and the role of executive compensation in enhancing a firm's innovation, offering valuable insights for shareholders and contributing to the understanding of organizational slack and compensation's effect on innovation in the Indonesian context. Keywords: organizational slack, executive compensation, innovation, innovation performance, Indonesia