Directors remuneration and firm performance among distressed firms

The purpose of this study is to investigate the extent to which firm's performance, the structure of the board of directors and ownership determine directors' remuneration in Malaysia among distressed firms. The study uses publicly available data from a sample of 86 distressed firms and 86...

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Main Author:	Abdullah, Shamsul Nahar
Format:	Article
Language:	English
Published:	Emerald 2006
Subjects:	HF5001 Business. Business Administration
Online Access:	http://irep.iium.edu.my/24955/ http://irep.iium.edu.my/24955/1/Directors_remuneration%2C_Firms_performance_and_corporate_governance_in_malaysian_among_distressed_companies.pdf

id	iium-24955
recordtype	eprints
spelling	iium-249552013-07-31T04:38:22Z http://irep.iium.edu.my/24955/ Directors remuneration and firm performance among distressed firms Abdullah, Shamsul Nahar HF5001 Business. Business Administration The purpose of this study is to investigate the extent to which firm's performance, the structure of the board of directors and ownership determine directors' remuneration in Malaysia among distressed firms. The study uses publicly available data from a sample of 86 distressed firms and 86 matched non-distressed firms for 2001 financial year. The findings for the full sample show that directors' remuneration is not associated with firm's profitability, as measured by ROA. A negative and significant association is observed between directors' remuneration and lagged ROA. With regard to corporate governance, board independence and the extent of non-executive directors' interests are found to have negative influence on directors' remuneration. In addition, findings also reveal that directors' remuneration is positively associated with firm's growth and size. In sub-sample analyes, a strong negative relation is observed between ROA and directors' remuneration for healthy sub-sample. Emerald 2006 Article PeerReviewed application/pdf en http://irep.iium.edu.my/24955/1/Directors_remuneration%2C_Firms_performance_and_corporate_governance_in_malaysian_among_distressed_companies.pdf Abdullah, Shamsul Nahar (2006) Directors remuneration and firm performance among distressed firms. Corporate Governance, 6 (2). pp. 162-174. ISSN 1472-0701
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5001 Business. Business Administration
spellingShingle	HF5001 Business. Business Administration Abdullah, Shamsul Nahar Directors remuneration and firm performance among distressed firms
description	The purpose of this study is to investigate the extent to which firm's performance, the structure of the board of directors and ownership determine directors' remuneration in Malaysia among distressed firms. The study uses publicly available data from a sample of 86 distressed firms and 86 matched non-distressed firms for 2001 financial year. The findings for the full sample show that directors' remuneration is not associated with firm's profitability, as measured by ROA. A negative and significant association is observed between directors' remuneration and lagged ROA. With regard to corporate governance, board independence and the extent of non-executive directors' interests are found to have negative influence on directors' remuneration. In addition, findings also reveal that directors' remuneration is positively associated with firm's growth and size. In sub-sample analyes, a strong negative relation is observed between ROA and directors' remuneration for healthy sub-sample.
format	Article
author	Abdullah, Shamsul Nahar
author_facet	Abdullah, Shamsul Nahar
author_sort	Abdullah, Shamsul Nahar
title	Directors remuneration and firm performance among distressed firms
title_short	Directors remuneration and firm performance among distressed firms
title_full	Directors remuneration and firm performance among distressed firms
title_fullStr	Directors remuneration and firm performance among distressed firms
title_full_unstemmed	Directors remuneration and firm performance among distressed firms
title_sort	directors remuneration and firm performance among distressed firms
publisher	Emerald
publishDate	2006
url	http://irep.iium.edu.my/24955/ http://irep.iium.edu.my/24955/1/Directors_remuneration%2C_Firms_performance_and_corporate_governance_in_malaysian_among_distressed_companies.pdf
first_indexed	2023-09-18T20:37:19Z
last_indexed	2023-09-18T20:37:19Z
_version_	1777409132236636160

Directors remuneration and firm performance among distressed firms

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