How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan

This study empirically investigates the interrelationship between pay and performance of CEOs/board of directors in an emerging market, Pakistan. The study uses GMM approach to account for the problem of potential endogeneity and unobserved heterogeneity that arises due to the potential reverse caus...

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Main Authors:	azlam, ejaz, Haron, Razali, Tahir, Muhammad Naveed
Format:	Article
Language:	English English English
Published:	Borsa Istanbul Anonim Sirketi 2019
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/70554/ http://irep.iium.edu.my/70554/ http://irep.iium.edu.my/70554/ http://irep.iium.edu.my/70554/1/70554_How%20director%20remuneration%20impacts%20firm_article.pdf http://irep.iium.edu.my/70554/2/70554_How%20director%20remuneration%20impacts%20firm_scopus.pdf http://irep.iium.edu.my/70554/13/70554_How%20director%20remuneration%20impacts%20firm_wos.pdf

id	iium-70554
recordtype	eprints
spelling	iium-705542019-08-02T08:23:37Z http://irep.iium.edu.my/70554/ How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan azlam, ejaz Haron, Razali Tahir, Muhammad Naveed HG4001 Financial management. Business finance. Corporation finance. This study empirically investigates the interrelationship between pay and performance of CEOs/board of directors in an emerging market, Pakistan. The study uses GMM approach to account for the problem of potential endogeneity and unobserved heterogeneity that arises due to the potential reverse causality (pay and performance) for a sample of non-financial firms listed in the KSE over the period of 2009e2016. This study provides evidence that pays-performance framework supports the agency theory whereby CEOs/board of directors are compensated for their prior level of market-based performance. In addition, pay performance framework weakly support the notion of the steward/tournament theory where the CEOs/board directors pay sensitivity weakly enhanced the firm performance. Thus, CEOs/board director's remuneration is highly persistent and takes time to adjust to long-run equilibrium. Borsa Istanbul Anonim Sirketi 2019-02 Article PeerReviewed application/pdf en http://irep.iium.edu.my/70554/1/70554_How%20director%20remuneration%20impacts%20firm_article.pdf application/pdf en http://irep.iium.edu.my/70554/2/70554_How%20director%20remuneration%20impacts%20firm_scopus.pdf application/pdf en http://irep.iium.edu.my/70554/13/70554_How%20director%20remuneration%20impacts%20firm_wos.pdf azlam, ejaz and Haron, Razali and Tahir, Muhammad Naveed (2019) How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan. Borsa Istanbul Review, 19 (2). pp. 186-196. ISSN 2214-8450 https://reader.elsevier.com/reader/sd/pii/S2214845018301248?token=F4657892E75F10C896CF194BA7C2B9F82F5217DAA5386A18CCE4B42CE5BED39C9BC6956966FC8FAAE1BCACB0660043D2 10.1016/j.bir.2019.01.003
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. azlam, ejaz Haron, Razali Tahir, Muhammad Naveed How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan
description	This study empirically investigates the interrelationship between pay and performance of CEOs/board of directors in an emerging market, Pakistan. The study uses GMM approach to account for the problem of potential endogeneity and unobserved heterogeneity that arises due to the potential reverse causality (pay and performance) for a sample of non-financial firms listed in the KSE over the period of 2009e2016. This study provides evidence that pays-performance framework supports the agency theory whereby CEOs/board of directors are compensated for their prior level of market-based performance. In addition, pay performance framework weakly support the notion of the steward/tournament theory where the CEOs/board directors pay sensitivity weakly enhanced the firm performance. Thus, CEOs/board director's remuneration is highly persistent and takes time to adjust to long-run equilibrium.
format	Article
author	azlam, ejaz Haron, Razali Tahir, Muhammad Naveed
author_facet	azlam, ejaz Haron, Razali Tahir, Muhammad Naveed
author_sort	azlam, ejaz
title	How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan
title_short	How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan
title_full	How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan
title_fullStr	How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan
title_full_unstemmed	How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan
title_sort	how director remuneration impacts firm performance: an empirical analysis of executive director remuneration in pakistan
publisher	Borsa Istanbul Anonim Sirketi
publishDate	2019
url	http://irep.iium.edu.my/70554/ http://irep.iium.edu.my/70554/ http://irep.iium.edu.my/70554/ http://irep.iium.edu.my/70554/1/70554_How%20director%20remuneration%20impacts%20firm_article.pdf http://irep.iium.edu.my/70554/2/70554_How%20director%20remuneration%20impacts%20firm_scopus.pdf http://irep.iium.edu.my/70554/13/70554_How%20director%20remuneration%20impacts%20firm_wos.pdf
first_indexed	2023-09-18T21:40:08Z
last_indexed	2023-09-18T21:40:08Z
_version_	1777413084385640448

How director remuneration impacts firm performance: an empirical analysis of executive director remuneration in Pakistan

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