Corporate Governance Mechanism and Firm Performance as Determinants of CEO Compensation: A Panel Data Analysis of Pakistani Listed Companies


  • zahid Irshad younas GC University Lahore
  • Bilal Mehmood GC University Lahore
  • Asal Ilyas GC University Lahore
  • Haseeb Asif Bajwa GC University Lahore



Firm Performance, CEO Compensation, Corporate Governance, Board Size, Audit Expenditure.


The purpose of this study is to investigate the impact of corporate governance, firm performance on CEO compensation. More specific, firm performance, board size and audit expenditure are linked with CEO compensation. Using panel data for 151 Pakistani firms listed on Karachi Stock Exchange (KSE), fixed effects regression has been performed. The results indicate firm performance is negatively associated with CEO compensation, which hold managerial power theory. While, board size and audit expenditure showed a positive relationship with CEO compensation, which reflects the presence of human capital theory. The results of study are in line with the prior studies done on CEO compensation.

Author Biographies

zahid Irshad younas, GC University Lahore

Lecturer: Department of Economics

Bilal Mehmood, GC University Lahore

PhD Scholar

Asal Ilyas, GC University Lahore

Graduate student: Department of Economics

Haseeb Asif Bajwa, GC University Lahore

Graduate Student: Department of Economics


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How to Cite

younas, zahid I., Mehmood, B., Ilyas, A. and Bajwa, H. A. (2013) “Corporate Governance Mechanism and Firm Performance as Determinants of CEO Compensation: A Panel Data Analysis of Pakistani Listed Companies”, Journal of Global Economy, 8(4), pp. 307–314. doi: 10.1956/jge.v8i4.262.