EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM INDIAN FIRMS

By Mehul Raithatha, Surenderrao Komera. 2016

122 citations recorded by the source corpus.

Abstract The study examines the relationship between executive compensation and firm performance among Indian firms. The evidence suggests that firm performance measured by accounting, as well as market-based measures, significantly affects executive compensation. We also test for the presence of persistence in executive compensation by employing the system-generalised methods of moments (GMM) estimator. We find significant persistence in executive compensation among the sample firms. Further, we report the absence of pay–performance relationship among the smaller sample firms and business group affiliated firms. Thus, our findings cast doubts over the performance-based executive compensation practices of Indian business group affiliated firms.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/9c987e0874b071739d2dad3fc77bcbea163c47b4

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In Accounting

1. Muhammad Fayyaz Sheikh
2. S. F. Shah
3. S. Akbar

Citations in the corpus

• Firm performance, corporate governance and executive compensation in Pakistan (2018, background): “However, the adjustments made are usually insufficient therefore different starting points yield different estimates which are biased towards the anchor (Bender 2003; Raithatha and Komera 2016).”