scholarly journals Top management team pay, firm size and performance relationship in Saudi Arabian firms

2017 ◽  
Vol 13 (1) ◽  
pp. 21-27 ◽  
Author(s):  
Basmah Altuwaijri ◽  
Lakshmi Kalyanaraman

We study the relationship of top management team’s (TMT) pay with firm performance with a sample of 80 firms listed on Saudi stock market. We find that firm performance and firm size emerge as significant variables in explaining TMT compensation. This is in line with many of the earlier studies which proxy the firm performance as the ability of the firm to pay higher compensation and firm size as a proxy for complexity of operations. We find that large firms and firms with better financial performance pay higher compensation to their TMT. When we group the firms into large firms and small firms, we find that firm size and firm performance are significant variables that influence TMT pay only in case of large firms. Our results show that firm size does not influence TMT pay and only firm performance impacts TMT pay.

Author(s):  
Homero Zambrano

A simple theoretical model explains the divergent empirical results concerning the effect of wage dispersion on firm performance. First, causality in the relationship is clarified. Then, through the model, it is shown that firm performance is non-monotonic with respect to wage dispersion. Likewise, it is shown that large firms are more likely to benefit from a dispersed wage structure than small firms.


1983 ◽  
Vol 43 (4) ◽  
pp. 953-980 ◽  
Author(s):  
David C. Mowery

The literature on the development of American industrial research suggests that during the twentieth century large firms “dominated” industrial research, and reaped the majority of the benefits from such activity. This paper utilizes new data to analyze both the relationship between firm size and research employment and the impact of research activity on firm growth and survival during 1921–1946. The results suggest that large firms were no more research-intensive than were small firms during the 1921–1946 period. Research activity significantly enhanced the probability of firms' survival among the ranks of the 200 largest manufacturing firms during 1921–1946. Research employment also improved the growth performance of both large and small firms during 1933–1946.


Author(s):  
Camilla Jensen ◽  
Low Mei Peng

This chapter addresses at the outset the topic of SMEs and economic development from an institutions perspective. The authors argue that the transaction cost theory is not helpful towards understanding the role that institutions play for SME performance for several reasons. Instead, they argue for combining the resource-based theory with an institutions-based approach towards constructing a more practical and empirical oriented analytical framework. After the preliminary discussion and introduction to the different theories used, the authors then take a focus on the analytical framework used to study the relationship between the institution of competition, firm performance, and firm size distributions. This chapter studies the relationship between competition and firm size, whereas subsequent research could also involve the inclusion of other measures of institutions and firm performance.


2014 ◽  
Vol 30 (3) ◽  
pp. 701 ◽  
Author(s):  
Ramiz Ur Rehman ◽  
Junrui Zhang ◽  
Rizwan Ali

<p>The study explores the relationship between firm performance, macro-economic variables, and firm size. The analysis was conducted over a period of 12 years, for seven non-financial sectors of Pakistan economy, considering an emerging economy. The analysis was conducted stepwise. First estimation of models considering all co-efficient constant across time and individuals (Sector) was conducted. Secondly, to know the significant difference among the sectors with respect to firm size, return on assets, and earnings per share, we applied LSDV model and kept sectors constant. Lastly, we analyzed the time influence. The results of the study indicate that the size and performance of firms both depend upon financial ratios and macroeconomic variables included in the study. There is significant difference in terms of size and performance between all sectors. There is significant difference in terms of size and performance when measured between 2008 to 2010 and before.</p>


2017 ◽  
Vol 8 (1) ◽  
pp. 119
Author(s):  
Hamidah Hamidah ◽  
Ari Wicaksono ◽  
Gatot Nazir Ahmad

In this study,the author investigate the relationship of firm performance, leverage, firm size, and firm growth on the agency cost. In the company’s life, there are several holders an important role in the company itself. Agency theory explains that there are two parties to a company, the agent and principal.Researcher use firm performance, leverage, firm size, and firm growth as the independent variables. Researcher use the operational expenses ratio as proxy of agency cost. The high firm performance, expected to leads the lower agency cost.Researcher use the 19 listed trading firm on Indonesia, 26 listed trading firm on Malaysia, and 29 listed trading firm on Thailand. The empirical result show varying effect on agency cost in those three countries. The result of research depends on the characteristics of each country   Keywords: Agency Cost, firm performace, leverage, firm size, firm growth


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