The Relationship Between Profitability and Executive Compensation of Listed Companies in the Stock Exchange of Thailand
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Abstract
The purpose of this research was to study the relationship between profitability and executive compensation of listed companies in the Stock Exchange of Thailand. It is a quantitative research. Using secondary data, financial data is collected from the annual report and the annual registration statement. The sample groups used in the study were companies listed on the Stock Exchange of Thailand, all groups of 50 indexes, except for financial institutions. The sample group used must have complete data for all 3 years, namely 2018-2020, a total of 3 years, totaling 29 companies, 87 samples. The statistics used in the data analysis were descriptive statistics and inferential statistics in Pearson's correlation coefficient analysis and multiple linear regression analysis. The results showed that the return on assets had a statistically significant correlation of 0.05 positively with the executive compensation and the return on equity had a statistically significant correlation of 0.05 positively with the Executive Compensation while the gross profit margin Profit margin before finance costs and income tax and the net profit margin is not related to the remuneration of the executive compensation.
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