Institutional investors and director pay: An empirical study of UK companies

By Ming Dong, Aydin Ozkan. 2008

136 citations recorded by the source corpus.

Abstract This paper empirically examines the determinants of director pay for a sample of listed non-financial firms in the UK by focusing on the effects of institutional ownership on both director pay and pay–performance relationship. Our analysis reveals that institutional investors, as a whole, make no appreciable difference in the determination of director pay level and pay–performance relationship. However, after we divide institutions into “dedicated” and “transient” groups. We show that dedicated institutions restrain the level of director pay and strengthen pay–performance link. This is consistent with our expectation that dedicated (long-horizon) institutions are more involved in corporate governance and serve a better monitoring and disciplining role than other short-horizon institutions.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/11cfb3757d190f57ef4727a7b851e36fe901b4ba

How researchers see this paper

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In Accounting

1. Collins G. Ntim
2. Kofi A. Osei
3. Dennis Thomas
4. S. Lindop
5. Ahmed A. Elamer
6. Hussein A. Abdou
7. A. Gerged

In Finance

1. Dennis Thomas
2. Collins G. Ntim
3. S. Lindop
4. Kofi A. Osei

Citations in the corpus

• Executive Compensation, Corporate Governance and Corporate Performance: A Simultaneous Equation Approach (2015, background): “In response to the later problem, subsequent and more recent UK (Conyon, 1997; Benito and Conyon, 1999; Dong and Ozkan, 2008; Ozkan, 2011) and US (Mehran, 1995; Core et al., 1999; Chen et al., 2006; Tang, 2012; Lin et al., 2012) studies have mostly examined the executive pay and corporate…”