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The Social Sciences

Year: 2016  |  Volume: 11  |  Issue: 21  |  Page No.: 5060 - 5070

Credit Risk and Earning Management Mediate the Relationship Between Cash Compensation and Bank Performance: Evidence from Indonesia

K.D. Karlina Aprilia, Abdul Rohman, Anis Chariri and Imam Ghozali

Abstract

The objective of this study to investigate the association between cash compensation and bank performance and to observe whether credit risk and earning management mediate the relationship between cash compensation and bank performance. Data collected from 34 banks that listed on the Indonesian Stock Exchange for the period 2009-2014. The result showed that cash compensation has direct effect on bank performance. Credit risk was not a mediating variabel but earning management was able to mediate relationship between cash compensation and bank performance.

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