Effect of Employ Stock Option Plan (ESOP) on Company Performance with Good Corporate Govrnance as Moderation

Abstract

This study aims to obtain empirical evidence regarding the effect of execution prices and employee stock option plan (ESOP) on Corporate Performance with GCG as Moderation. The inconsistency of the results of research conducted on execution prices and employee stock option plan (ESOP) on Corporate Performance motivates to conduct research again. Inconsistent research is due to other variables that moderate the relationship between execution prices and employee stock option plan (ESOP) on Corporate Performance, namely GCG. The population in this study were manufacturing companies listed on the Indonesia Stock Exchange (Highlights Company OJK publication Profile) throughout 2002 - 2016. The sample collection technique used purposive sampling. The number of companies sampled is 13 companies with 39 years of observation. The analysis technique used is Moderated Regression Analysis (MRA). Before being analyzed using MRA, the GCG factor section was analyzed using factor analysis, and obtained managerial ownership was a variable that was able to represent GCG. The regression model has also passed the classic assumption test. The test results show empirical evidence that (1) the price of execution has a positive effect on company performance; (2) employee stock option plan (ESOP) has a positive effect on company performance; (3) managerial ownership is not able to moderate the relationship between execution prices on company performance; (4) managerial ownership strengthens the influence of ESOP on company performance.