The evolution of traditional companies into modern one is characterized by the separation of ownership and control (Berle & Means 1932) and has two main characteristics of (1) limited liability and (2) transferability ownership (Williamson 1981). This separation of ownership will result in a condition where the interests of the owner and the ultimate manager will always be different and a lot of checking/monitoring efforts are needed to limit the use of power to maximize the profits and wealth of shareholders. A modern company is complex because the complexity in the principal hierarchical structure depends on (1) size (2) diversity and (3) internal organization (Williamson 1981). In modern companies, financial management decisions (financing decisions, investment, and dividends), can function as a tool to control management behavior by the owner in order to create common goals in achieving profit maximization and owner's wealth. This is important because, in modern companies, the separation of ownership will cause inequality of interests between owners and management or agency conflict (Jensen & Meckling 1976). The modern enterprise model developed by Jensen & Meckling (1976) sees companies as legal entities connected by a network of contracts between managers, shareholders, consumers, and other groups within the company (including employees). This model analyzes the impact of agency conflict in company decisions. This conflict can occur between managers and shareholders, shareholders with creditors, and creditors with management. Settlement of agency conflicts will contain costs (for example: costs for monitoring management activities by shareholders). Dividend policy, investment decisions, and spending are ways that can be taken by management to avoid conflicts of interest with shareholders so that market price increases and the value of shareholders increases. 2 RESEARCH METHODS Basically, investment decisions in the company consist of two forms, namely investment in fixed assets (capital budgeting) and current assets (investment in securities). Optimal investment decisions are investment decisions that are able to provide optimal

Top of FormThe main question in this study is whether the provision of compensation affect the discipline of work, especially on the study staff at the Faculty of Economics and Business UNSRAT. Based on the background and the formulation of the above problems, this study aims to determine and analyze the effect of compensation on the discipline of employee work studies at the Faculty of Economics and Business UNSRAT. Researchers took data using questionnaires on the civil servants of the study of Faculty of Economics and Business UNSRAT which amounted to 41 people. The research variable that the adoptive researcher is compensation and work discipline with primary data collected through questionnaire and using quantitative descriptive analysis technique. For simple linear regression test found value of constant equal to 7,686 which mean when giving of compensation (X) equal to zero hence work discipline (Y) equal to 7,686. Regression coefficient value found at 0.619 positive value so it can be concluded that the compensation has a positive effect on work discipline. The value of regression coefficient also shows if the variable implication of compensation increases 1 unit then the work discipline will rise by 0.619. The value of correlation coefficient of 0.624 menunujukkan there is a strong relationship between the two variables with the value of coefficient of determination of 0.389 which means the variable implications of compensation affect 38.9% of the discipline of work. The researcher then tested the hypothesis by looking at the value of T arithmetic and found 4.983 which is much higher than the value of T table for n 41 of 1.638 so it can be concluded that Ha accepted and H0 rejected or in other words the Implication of Compensation (X) Work Discipline (Y). Through the process of collecting data and testing with quantitative methods the researcher then concluded that the implication of compensation has a positive and significant effect to the work discipline on civil servant studies in the Faculty of Economics and Business UNSRAT.Bottom of FormKeyword : Implication, Compensation, Work Discipline, Civil Servant