| Abstrakt: |
This study seeks to assess whether CEO Compensation, Managerial Ability, and Tenure individually have a positive and significant impact on the Debt-to-Equity Ratio. Additionally, it aims to determine whether CEO Compensation, Managerial Ability, Tenure, and the Debt-to-Equity Ratio significantly and positively influence Return on Assets. The study employs a quantitative path analysis methodology using Eviews version 12 statistical software. Data comprises secondary sources from annual financial reports available on the Indonesia Stock Exchange website, covering a 5-year span (2018-2022) across 25 companies in the Consumer Non-Cyclicals sector listed on the IDX, resulting in 125 observations. The findings reveal that (1) CEO Compensation does not positively affect the Debt-to-Equity Ratio, (2) CEO Managerial Ability negatively impacts the Debt-to-Equity Ratio, (3) CEO Tenure does not negatively affect the Debt-to-Equity Ratio, (4) CEO Compensation does not positively influence Return on Assets, (5) CEO Managerial Ability does not positively impact Return on Assets, (6) CEO Tenure does not have a positive effect on Return on Assets, (7) the Debt-to-Equity Ratio negatively impacts Return on Assets, and (8) the Debt-to-Equity Ratio does not mediate the effect of CEO Tenure on Return on Assets. [ABSTRACT FROM AUTHOR] |
