Executive Compensation, Corporate Governance and Corporate Performance: A Simultaneous Equation Approach

Collins G. Ntim, Sarah Lindop, Kofi A. Osei, Dennis A. Thomas

Allbwn ymchwil: Cyfraniad at gyfnodolynErthygladolygiad gan gymheiriaid

72 Wedi eu Llwytho i Lawr (Pure)

Crynodeb

This paper investigates the association between executive compensation and performance. It uniquely utilises a comprehensive set of corporate governance mechanisms within a three-stage least squares (3SLS) simultaneous equation framework. Results based on estimating a conventional single equation model indicate that the executive pay and performance sensitivity is relatively weak, whereas those based on estimating a 3SLS model generally suggest improved executive pay and performance sensitivity. Our findings highlight the need for future research to control for possible simultaneous interdependencies when estimating the executive pay and performance link. The findings are generally robust across a raft of econometric models that control for different types of endogeneities, executive pay and performance proxies
Iaith wreiddiolSaesneg
Tudalennau (o-i)67-96
Nifer y tudalennau20
CyfnodolynManagerial and Decision Economics
Cyfrol36
Rhif cyhoeddi2
Dyddiad ar-lein cynnar18 Hyd 2013
Dynodwyr Gwrthrych Digidol (DOIs)
StatwsCyhoeddwyd - Maw 2015

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