scholarly journals The relationship between CEO compensation and financial performance in Jordanian public shareholding industrial companies

2020 ◽  
Vol 17 (2) ◽  
pp. 240-254
Author(s):  
Marie H. Bani Khaled
Keyword(s):  
Financial Performance ◽  
Significant Relationship ◽  
Chief Executive Officers ◽  
Ceo Compensation ◽  
Stock Exchange ◽  
Secondary Data ◽  
Chief Executive ◽  
Industrial Companies ◽  
Q Model ◽  
The Relationship

This study aimed to examine the relationship between the compensation received by chief executive officers (CEOs) and the financial performance of Jordanian public shareholding industrial companies listed on the Amman Stock Exchange (ASE) from 2010 to 2017. To measure the variables of interest, secondary data published on the ASE website were processed to become preliminary data suitable for the study. The study population consisted of 56 companies, 25 of which met the inclusion criteria. The results of the analysis of the data on these 25 companies revealed a large difference between the amount of financial compensation received by CEOs and the earnings per share (EPS) received by shareholders. The results also showed a statistically positive and significant relationship between the amount of CEO compensation and the financial performance of industrial companies. Furthermore, return on assets (ROA), EPS, and leverage have a statistically negative and significant relationship with financial performance. However, the net profit margin has a statistically positive and significant relationship with financial performance. Besides, the results showed a positive and significant relationship between the age of the CEO and the amount of compensation received. On the other hand, Tobin’s Q model demonstrated that the relationship between CEO duality and the amount of CEO compensation is not statistically significant. Therefore, the study recommends using more than one type of compensation for the CEOs of public shareholding industrial companies in Jordan and that CEO compensation should be related to financial performance.

scholarly journals The Relationship between Exercising of Shareholders’ Rights and the Performance of Firms listed at the Nairobi Securities Exchange

2018 ◽  
Vol 6 (07) ◽  
Author(s):  
Dr. Edward Kandiru Maina
Keyword(s):  
Significant Relationship ◽  
Chief Executive Officers ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Chief Executive ◽  
Shareholder Theory ◽  
Vision 2030 ◽  
And Performance ◽  
Executive Officers ◽  
The Relationship

The continued decline in performance of firms listed in the Nairobi Securities Exchange (NSE) has lately become a source of concern to both the country’s policy makers and researchers. Already, reports from the Kenyan government reveal that the decline in performance is becoming an impediment to the country’s realization of Vision 2030 as the dwindling performance is leading to lower economic development and loss of jobs. This study examines the relationship between exercising of shareholders’ rights and the performance of firms listed in the NSE for the period 2011-2015. The study is anchored on the shareholder theory. The study population comprises all 60 companies listed in NSE in the stated period. The study uses descriptive research and correlational research designs. Both primary and secondary data are obtained from the 60 Chief Executive Officers of the corporations or their representatives. Descriptive statistics (mean and standard deviation) and inferential statistics (Pearson correlation and multiple regression) are used to analyze the data. The study finds that there is a statistically significant relationship between shareholders exercising their rights and performance of firms listed at the Nairobi Securities Exchange. The hypothesis that shareholders exercising their rights has no significant relationship with performance of firms listed at the NSE (p<0.001) is rejected. Finally, results vindicate tthe shareholder theory

scholarly journals THE MODERATING EFFECT OF INDEPENDENT COMMISIONERS ON FINANCIAL POLICY AND PUBLIC OWNERSHIP TOWARD CORPORATE FINANCIAL PERFORMANCE

2020 ◽  
Vol 2 (2) ◽  
pp. 139
Author(s):  
Niko Silitonga
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Measurement Instrument ◽  
Secondary Data ◽  
Sampling Technique ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Financial Policy ◽  
Public Ownership ◽  
The Relationship

<p align="center"><strong>Abstract</strong></p><p><em>The corporate financial performance is one of the measurement instrument whether the company is sustainable. This study aims to determine the effect of financial policy and public ownership on corporate financial performance with Independence of commissioners as a moderating variable in mining companies listed on Indonesia Stock Exchanges. This research uses a quantitative research model using secondary data. The data in this study were processed by the Moderating Regression Analysis (MRA) method supported by the IBM SPSS and Microsoft Excel programs as support software with data analysis techniques in the form of a classic assumption test and R2 test, F test, and t test. The population in this study are companies that have reported annual reports consistently during the 2014-2017 period. This study used a purposive sampling technique and obtained as many as 19 companies in accordance with predetermined criteria. The results of this study indicate that financial policy proxied by debt policy (DER) has a significant and positive effect on corporate financial performance, public ownership has no significant effect on corporate financial performance, independence commissioners strengthen the relationship between financial policy on corporate financial performance and independence commissioners do not has a moderating role between the relationship between Public Ownership and corporate financial performance. This study uses data from mining sector companies, it is recommended for further research to use other sectors such as: Property &amp; Real Estate Sector, Manufacturing Sector, and others listed on the Indonesia Stock Exchange.</em> <em>The implications of this study for the company management, this research can provide input to the company to be able to choose and use an independent commissioner who fulfills expertise in the financial and business fields of his company in order to make a decision on his company's financial policy.</em></p><strong>Keywords:</strong> <em>Independence of Commissioners, Financial Policy, Public Ownership, Corporate Financial Performance</em>.

scholarly journals The relationship between chief executive officer compensation and the size and industry of South African state-owned enterprises

2019 ◽  
Vol 17 ◽  
Author(s):  
Mariette Coetzee ◽  
Magda L. Bezuidenhout
Keyword(s):  
Chief Executive Officers ◽  
Ceo Compensation ◽  
African State ◽  
Chief Executive ◽  
Annual Reports ◽  
Performance Contracts ◽  
Ceo Pay ◽  
Managerial Implications ◽  
Executive Officers ◽  
The Relationship

Orientation: Concerns about exorbitant executive compensation are making headlines, because executives receive lucrative packages despite state-owned enterprises (SOEs) performing poorly. It appears as if chief executive officers (CEOs) are not being held accountable for the performance of the SOEs.Research purpose: The purpose of the study was to determine whether the size and the industry of an SOE had an impact on CEO compensation packages.Motivation for the study: A greater understanding of the relationship between CEO remuneration and the size and type of industry of SOEs would assist with the standardisation of CEO remuneration and linking CEO pay to SOE performance.Research approach/design and method: A multiple regression analysis on a pooled dataset of 162 panel observations was conducted over a 9-year period. Financial data of 18 SOEs were extracted from the McGregor BFA database and the annual reports of SOEs.Main findings: The findings show that the size of an SOE does not influence the total compensation of CEOs. However, larger SOEs pay larger bonuses due to these SOEs being in a stronger financial position to offer lucrative bonuses. CEO’s remuneration was aligned within certain industries.Practical/managerial implications: The findings emphasise the need to link CEO compensation with SOE performance. Standardisation in setting CEO compensation and implementing performance contracts should be considered.Contribution/value-add: The study confirms that CEO pay is not linked to performance and not justified when considering SOE size or industry.

The effects of global financial crisis on the relationship between CEO compensation and earnings management

2020 ◽  
Vol 28 (2) ◽  
pp. 389-408 ◽  
Author(s):  
Oheneba Assenso-Okofo ◽  
Muhammad Jahangir Ali ◽  
Kamran Ahmed
Keyword(s):  
Financial Crisis ◽  
Earnings Management ◽  
Chief Executive Officers ◽  
Ceo Compensation ◽  
Global Financial Crisis ◽  
Chief Executive ◽  
Content Type ◽  
Multivariate Tests ◽  
Executive Officers ◽  
The Relationship

Purpose This paper aims to examine the effects of global financial crisis (GFC) on chief executive officers’ (CEO) compensation and earnings management relationship. Specifically, the authors examine whether the recent financial crisis had moderated the relationship between CEO bonus and discretionary accruals. Design/methodology/approach The authors use panel data for 1,800 firm-year observations (over a period of six years from 2005 to 2010) and use univariate and multivariate tests to test their hypothesis. The authors divide the period into pre-crisis, during-crisis and post-crisis periods to examine how the different financial crisis periods affect the relationship between CEO compensation and earnings management. Various alternative tests including endogeneity test suggest that the results are robust. Findings The authors’ multivariate results indicate that the relationship between CEO’ compensation and earnings management changes because of the GFC. Practical implications The findings, therefore, justify more monitoring and scrutiny to limit the existence of opportunistic managerial behaviour and for the appropriate designing of CEO compensation packages during abnormal economic circumstances. Originality/value So far as the authors’ knowledge goes, this is the first study which examines the relationship between CEO compensation and earnings management during GFC.

scholarly journals Effect of gender diversity on the financial performance of insurance firms in Kenya

2019 ◽  
Vol 8 (5) ◽  
pp. 274-285
Author(s):  
Hassan Bashir Ibrahim ◽  
Caren Ouma ◽  
Jeremiah N. Koshal
Keyword(s):  
Financial Performance ◽  
Chief Executive Officers ◽  
Audit Committee ◽  
Gender Diversity ◽  
Secondary Data ◽  
Chief Executive ◽  
Primary Data ◽  
Financial Reports ◽  
Insurance Firms ◽  
Executive Officers

The aim of this study was to examine the effect of gender diversity on the financial performance of insurance firms in Kenya. The study analyzed data from the 55 insurance firms licensed by the Insurance Regularity Authority (IRA) in Kenya. Gender diversity was operationalized by the number of female directors serving on the boards of insurance firms operating in Kenya. Primary data was collected from a sample of 412 board directors, Chief Executive Officers (CEOs), Chief Finance Officers (CFOs), Audit Committee members (AUDIND) and Internal Auditorsusing a questionnaire instrument while secondary data was retrieved from audited financial reports of the year 2017. Data were analyzed using descriptive and inferential statistics. Firm performance was measured by the two accounting-based measures Return On Assets (ROA) and Return On Equity (ROE). The findings from the regression analysis indicate that gender diversity significantly and positively affects the financial performance of insurance firms in Kenya.

The relationship between business strategy and management entrenchment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Arash Arianpoor
Keyword(s):  
Significant Relationship ◽  
Business Strategy ◽  
Stock Exchange ◽  
Chief Executive ◽  
Developed Countries ◽  
International Standards ◽  
Defensive Strategy ◽  
Content Type ◽  
Management Entrenchment ◽  
The Relationship

PurposeThe present study's main objective is to assess the relationship between business strategy and management entrenchment in listed firms on the Tehran Stock Exchange (TSE).Design/methodology/approachIn this paper, 128 firms have been assessed during 2012–2017. The management entrenchment variable is measured using five factors: management ownership, board independence, chief executive officer (CEO) tenure, managers' compensation and CEO duality.FindingsThe obtained results show a negative and significant relationship between the aggressive strategy of the current year (and that of the previous year) and management entrenchment such that adopting an aggressive business strategy in the current and previous years can debilitate the management entrenchment. Moreover, there is a negative and significant relationship between the current year's defensive strategy and management entrenchment, and employing a defensive business strategy in the current year can also weaken the management entrenchment. At the same time, there is no significant relationship between the previous year's defensive business strategy and management entrenchment.Originality/valueManagerial entrenchment is a determining factor in the economy, and regarding the dominant norms in the emerging markets and developing countries, this factor is different from that of the developed countries. It is more important in some markets, like Iran that is dealing with economic sanctions. On the other hand, Tehran Stock Exchange observes numerous modifications, especially providing financial statements in accordance with international standards that are expected to affect the determination of business strategy in firms.

scholarly journals Pengaruh intellectual capital terhadap financial performance dengan corporate reputation sebagai variabel moderasi

2020 ◽  
Vol 2 (3) ◽  
pp. 96
Author(s):  
Putri Purnama Sari ◽  
Rosyeni Rasyid
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Secondary Data ◽  
Total Sample ◽  
Return On Assets ◽  
Financial Reports ◽  
Company Reputation ◽  
Regression Test ◽  
The Relationship

This study aims to analyze whether there is an effect of intellectual capital on financial performance as moderated by the company's reputation. The financial performance is seen from the financial ratios, namely the ratio of profitability (return on assets).  This type of research is classified into comparative research. The population in this study were 45 banks listed on the Indonesian stock exchange in 2014-2018. Sampling in this study using purposive sampling method in order to obtain a sample of 36 banks with a total sample of 180 samples. The type of data used is secondary data obtained from the official website of the Indonesian stock exchange www.idx.id  and published financial reports on the websites of each bank sample. Based on the results of the regression test with a significant level of 0.1; The results obtained indicate (1) there is a significant effect of intellectual capital on financial performance. (2) company reputation moderates the relationship between intellectual capital and financial performance. Keywords: Intellectual capital, financial performance, company reputation

Value of supply chain resilience: roles of culture, flexibility, and integration

2019 ◽  
Vol 50 (1) ◽  
pp. 80-100 ◽  
Author(s):  
Li Chunsheng ◽  
Christina W.Y. Wong ◽  
Ching-Chiao Yang ◽  
Kuo-Chung Shang ◽  
Taih-cherng Lirn
Keyword(s):  
Organizational Culture ◽  
Supply Chain ◽  
Financial Performance ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Secondary Data ◽  
Content Type ◽  
Management Culture ◽  
Resource Orchestration ◽  
The Relationship

Purpose Building supply chain (SC) resilience is crucial for business continuity given the ever-changing environmental conditions. Based on the resource orchestration and organizational culture theories, the purpose of this paper is to investigate the business value of SC resilience with the consideration of the roles of internal integration (II) and external integration (EI), risk management culture (RMC) and SC flexibility (SCF). Design/methodology/approach This study investigates how RMC, SCF and intra and interorganizational integration affect the performance of SC resilience. It collects primary and secondary data from 194 manufacturing firms listed in the Taiwan Stock Exchange and Taipei Exchange. Findings Results validate the authors’ hypothesis that RMC, SCF and II improve the financial performance of firms through SC resilience efforts. Research limitations/implications This study uses firms from Taiwan manufacturing industry, which might introduce country and industry bias. Practical implications This study helps managers improve the financial performance of their SC resilience efforts by developing RMC, SCF, II and IE across functions and partner firms. Originality/value This study contributes to the literature by empirically testing the relationship between SC resilience and financial performance, and how the relationship is moderated by RMC, SCF, II and EI based on the theories of organizational culture and resource orchestration.

scholarly journals Hubungan Antara Laba Perusahaan Dan Kompensasi Ceo Dengan Menggunakan Data Panel

2008 ◽  
Vol 1 (1) ◽  
Author(s):  
Tiarapuspa Tiarapuspa
Keyword(s):  
Panel Data ◽  
Significant Relationship ◽  
Ceo Compensation ◽  
Stock Exchange ◽  
The Other ◽  
Other Hand ◽  
The Relationship

The main purpose of this research is to explain the relationship between profit and CEO compensation. The relationship between CEO compensation and company profit in 1992-1996 from 32 firms that listed in Jakarta Stock Exchange has a different result. Some researches find that there is a significant relationship but in the other hand find there isn’t a significant relationship. This result support generalization or validity external from previous research. This research used panel data to examination this relationship.

scholarly journals CEO compensation, corporate governance, and performance of listed platinum mines in South Africa

2016 ◽  
Vol 13 (2) ◽  
pp. 408-416
Author(s):  
Sam Ngwenya
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Financial Performance ◽  
Executive Compensation ◽  
Significant Relationship ◽  
Ceo Compensation ◽  
Company Performance ◽  
Performance Variables ◽  
And Performance ◽  
The Relationship

Executive compensation has been studied extensively in the past three decades, yet the relationship between company performance and executive compensation continues to be a debated topic judging from the number of articles in academic literature. The main objective of this study was to determine the relationship between CEO compensation, corporate governance and financial performance of listed platinum mines in South Africa. The results of the study indicated no statistics significant relationship between CEO compensation and the financial performance variables ROE and ROA. The results also indicated a positive relationship between some corporate governance variables such as board size and proportion number of independent non-executive directors, but found no statistic significant relationship between CEO compensation and proportion number of female board members.

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