Nomination and Remuneration Committee Effectiveness, Environmental Performance, Government Ownership, And Friendship Ties
DOI:
https://doi.org/10.23917/reaksi.v11i2.15186Keywords:
Nomination and remuneration committee, environmental performance, corporate governance, government ownership, friendship ties.Abstract
This study aims to examine the effect of Nomination and Remuneration Committee (NRC) effectiveness on environmental performance, with government ownership, and friendship ties as moderating variables in Indonesian public companies. Using panel regression on 198 samples from 2016-2022, results show that NRC effectiveness positively impacts environmental performance. Government ownership does not moderate this relationship, while friendship ties weaken it. This study implies by linking remuneration packages to environmental performance metrics, companies can provide stronger incentives for executives to achieve sustainability targets. This research offers insights for policymakers and firms to strengthen NRC independence and align executive incentives with sustainability goals.
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