The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh

One of the main controversial issues arises from the weaknesses in the corporate governance practices is the directors’ remuneration. The question raised is whether the remuneration paid to the directors is consistent with the interest of the shareholders. Therefore, the main aim of this study is to...

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Main Author:	Mohd Tareh, Fattiadriati
Format:	Thesis
Language:	English
Published:	2019
Subjects:	Public administration
Online Access:	https://ir.uitm.edu.my/id/eprint/28337/1/28337.pdf
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id	my-uitm-ir.28337
record_format	uketd_dc
spelling	my-uitm-ir.283372022-03-07T03:12:20Z The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh 2019-12 Mohd Tareh, Fattiadriati Public administration General. Comparative government One of the main controversial issues arises from the weaknesses in the corporate governance practices is the directors’ remuneration. The question raised is whether the remuneration paid to the directors is consistent with the interest of the shareholders. Therefore, the main aim of this study is to identify the key determinants of directors’ remuneration in Malaysia. This study examines the relationships between the company’s characteristics and corporate governance characteristics with directors’ remuneration. For this research, the company’s characteristics selected are the company size, company leverage, company performance. Meanwhile, the corporate governance characteristics selected are the board leadership structure and the independence of the remuneration committee. A sample of 260 public listed companies on Bursa Malaysia was selected using stratified random sampling for the financial reporting year 2018. All data concerning company and corporate governance characteristics are obtained from the annual reports of the company which are accessible from the Bursa Malaysia website. Pearson correlation and multi regression was used to analyses the data to determine the relationship of the predictor variables with directors’ remuneration. It was found that only company size showed a significant positive relationship with directors’ remuneration. Company performance showed a positive but weak relationship with directors’ remuneration, which suggest that the remuneration paid to directors are not linked to company performance. The remaining predictors have no relationship with directors' remuneration. The findings suggest that the larger the company, the higher would be the remuneration paid to the directors. Besides, the directors' remuneration is not depending on the profit made by the company. Lastly, company compliance with the recommendation of Malaysian Code on Corporate Governance does not guarantee the effectiveness of the monitoring function of the remuneration committee in ensuring that the directors' remuneration is commensurate with the company performance. 2019-12 Thesis https://ir.uitm.edu.my/id/eprint/28337/ https://ir.uitm.edu.my/id/eprint/28337/1/28337.pdf text en public masters Universiti Teknologi MARA Faculty of Administrative Science and Policy Studies Lokman, Norziana
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Lokman, Norziana
topic	Public administration Public administration
spellingShingle	Public administration Public administration Mohd Tareh, Fattiadriati The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
description	One of the main controversial issues arises from the weaknesses in the corporate governance practices is the directors’ remuneration. The question raised is whether the remuneration paid to the directors is consistent with the interest of the shareholders. Therefore, the main aim of this study is to identify the key determinants of directors’ remuneration in Malaysia. This study examines the relationships between the company’s characteristics and corporate governance characteristics with directors’ remuneration. For this research, the company’s characteristics selected are the company size, company leverage, company performance. Meanwhile, the corporate governance characteristics selected are the board leadership structure and the independence of the remuneration committee. A sample of 260 public listed companies on Bursa Malaysia was selected using stratified random sampling for the financial reporting year 2018. All data concerning company and corporate governance characteristics are obtained from the annual reports of the company which are accessible from the Bursa Malaysia website. Pearson correlation and multi regression was used to analyses the data to determine the relationship of the predictor variables with directors’ remuneration. It was found that only company size showed a significant positive relationship with directors’ remuneration. Company performance showed a positive but weak relationship with directors’ remuneration, which suggest that the remuneration paid to directors are not linked to company performance. The remaining predictors have no relationship with directors' remuneration. The findings suggest that the larger the company, the higher would be the remuneration paid to the directors. Besides, the directors' remuneration is not depending on the profit made by the company. Lastly, company compliance with the recommendation of Malaysian Code on Corporate Governance does not guarantee the effectiveness of the monitoring function of the remuneration committee in ensuring that the directors' remuneration is commensurate with the company performance.
format	Thesis
qualification_level	Master's degree
author	Mohd Tareh, Fattiadriati
author_facet	Mohd Tareh, Fattiadriati
author_sort	Mohd Tareh, Fattiadriati
title	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_short	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_full	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_fullStr	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_full_unstemmed	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_sort	determinants of directors’ remuneration in the malaysian public listed companies / fattiadriati mohd tareh
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Administrative Science and Policy Studies
publishDate	2019
url	https://ir.uitm.edu.my/id/eprint/28337/1/28337.pdf
_version_	1783734064948183040

The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh

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