Impact of board structure and firm performance on chief executive's compensation / Mohsin Ali Patel

Patel, Mohsin Ali (2019) Impact of board structure and firm performance on chief executive's compensation / Mohsin Ali Patel. Asia-Pacific Management Accounting Journal (APMAJ), 14 (2). pp. 185-199. ISSN 2550-1631

Abstract

The corporate board usually influences all important decisions of a firm including setting of its long-term goals, developing a corporate strategic policy, as well as hiring and setting the compensation of the chief executive. Moreover, the organization of the board may have a significant effect on the monitoring and governance of the company. This paper analyses the impact of structure of the board and firm performance on chief executive compensation, in an emerging economy context specifically, Pakistan. Chief executive compensation is one of the controversial and sought after topics in research nowadays. Interestingly, the exploration into the topic has found that there is a significant and positive impact of the non-executive directors serving on the corporate boards on the compensation of chief executive. Furthermore, the size of the board has also showed to have a significant and positive impact on the chief executive’s compensation which logically means that the companies in which the boards are larger than the mean size will relatively pay higher to their chief executives. Also it was found that the performance of the firm does not have a statistically significant impact on chief executive compensation. These results have policy implications and are important to corporate stakeholders.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Patel, Mohsin Alimpatel@iba.edu.pk
Subjects: H Social Sciences > HD Industries. Land use. Labor > Corporations > Corporate organization. Corporate governance
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
Journal: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 14
Number: 2
Page Range: pp. 185-199
Item ID: 29289
Uncontrolled Keywords: Corporate governance, Board structure, Firm performance
URI: http://ir.uitm.edu.my/id/eprint/29289

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