Board Compensation, Corporate Governance, and Firm Performance in Indonesia

Author(s):  
Salim Darmadi
2021 ◽  
Vol VI (I) ◽  
pp. 53-70
Author(s):  
Ishtiaq Ahmad ◽  
Bibi Aisha Sadiqa ◽  
Rashid Khan

The study focuses on whether the Corporate Governance characteristics influence the firm performance of Non-Financial Firms in Pakistan. In this study, three types of industries like pharmaceutical, cement, and food were analyzed from the Pakistan Stock Exchange for the period of 2010 to 2019. The authors used the diagnostic test on data that argued that the model is better, like the fixed effect model or random-effect model for analysis. Multiple regression-based methodologies were developed to use a fixed-effect model for both dependent variables, Return on Assets and Tobin-Q variables, to discover the association between corporate governance and firm performance. It is concluded that board size, board education board experience, board nationality and board compensation have significant the ROA and board size, board experience, the board size, and board compensation shows significance with Tobin-Q.


The point of the exploration is to look at the relationship among corporate administration and firm execution. In this examination study board information of S&P BSE-100 listed organizations from 2011-2018 and LSDV board information model, 2SLS model are utilized as instruments for investigation of the information. Where Market to Book worth and Tobin Q are taken as the needy variable while size of the board, freedom with the board; compensation given for the board, advertiser shareholding are considered as autonomous factors. The result of the examination uncovers that great corporate administration practices actualized by organizations are decidedly identified with money related execution. The finding of the examination uncovers that littler sheets are probably going to be progressively proficient in observing execution (Fuerst and Kang 2000; Loderer and Peyer 2002). The present examination affirms that there is a negative relationship among board freedom and execution of the firm and higher level of outside executives negatively affect firm execution (Yermack, 1996; Klein, 1998).


CFA Digest ◽  
2009 ◽  
Vol 39 (4) ◽  
pp. 16-18
Author(s):  
Frank T. Magiera

Sign in / Sign up

Export Citation Format

Share Document