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

Authors

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

DOI:

https://doi.org/10.1956/jge.v8i4.262

Keywords:

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

Abstract

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

References

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Published

04.01.2013

Issue

Vol. 8 No. 4 (2012)

Section

Articles

License

Copyright (c) 2013 Journal of Global Economy

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How to Cite

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

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