The pay-performance relationship for Malaysian public listed firms

The pay-performance relationship for Malaysian public listed firms

The purpose of this study is to examine the pay-performance relationship for Malaysian public listed firms. It is often argued whether executive compensation is positively linked to firm performance and for organizations it is hard to justify their compensation decisions. Therefore, this study can b...

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Main Author: Fokkema, Itsanne
Format: Thesis
Language:eng
eng
Published: 2015
Subjects:
HF5549-5549.5 Personnel Management
Employment
Online Access:https://etd.uum.edu.my/4626/1/s814853.pdf
https://etd.uum.edu.my/4626/2/s814853_abstract.pdf
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id my-uum-etd.4626
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Abdul Majid, Abdul Halim
topic HF5549-5549.5 Personnel Management
Employment
spellingShingle HF5549-5549.5 Personnel Management
Employment
Fokkema, Itsanne
The pay-performance relationship for Malaysian public listed firms
description The purpose of this study is to examine the pay-performance relationship for Malaysian public listed firms. It is often argued whether executive compensation is positively linked to firm performance and for organizations it is hard to justify their compensation decisions. Therefore, this study can be useful for providing insights on this matter. The first part of this research theoretically examines how executive compensation is determined according to the Human Capital Theory, Agency Theory, and Managerial Power Theory and what the components are of executive compensation packages. Furthermore, it is theoretically examined what the determinants of firm performance are and what role human capital has in determining firm performance. Thereafter, it is empirically investigated by using the Ordinary Least Squares Regression method whether executive compensation has a positive influence on firm performance while controlling for firm size and industry product as previous studies have found evidence for these being firm performance determinants. The sample of 90 Malaysian public listed firms has been manually selected based on the availability of information in annual reports regarding executive compensation. The empirical results have found a positive and significant relationship between executive compensation and firm performance in terms of return on equity. This study makes a significant contribution to the existing literature on the pay-performance relationship for Malaysian firms as little evidence has been found yet
format Thesis
qualification_name masters
qualification_level Master's degree
author Fokkema, Itsanne
author_facet Fokkema, Itsanne
author_sort Fokkema, Itsanne
title The pay-performance relationship for Malaysian public listed firms
title_short The pay-performance relationship for Malaysian public listed firms
title_full The pay-performance relationship for Malaysian public listed firms
title_fullStr The pay-performance relationship for Malaysian public listed firms
title_full_unstemmed The pay-performance relationship for Malaysian public listed firms
title_sort pay-performance relationship for malaysian public listed firms
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2015
url https://etd.uum.edu.my/4626/1/s814853.pdf
https://etd.uum.edu.my/4626/2/s814853_abstract.pdf
_version_ 1747827768936103936
spelling my-uum-etd.46262021-03-18T06:59:03Z The pay-performance relationship for Malaysian public listed firms 2015 Fokkema, Itsanne Abdul Majid, Abdul Halim Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5549-5549.5 Personnel Management. Employment The purpose of this study is to examine the pay-performance relationship for Malaysian public listed firms. It is often argued whether executive compensation is positively linked to firm performance and for organizations it is hard to justify their compensation decisions. Therefore, this study can be useful for providing insights on this matter. The first part of this research theoretically examines how executive compensation is determined according to the Human Capital Theory, Agency Theory, and Managerial Power Theory and what the components are of executive compensation packages. Furthermore, it is theoretically examined what the determinants of firm performance are and what role human capital has in determining firm performance. Thereafter, it is empirically investigated by using the Ordinary Least Squares Regression method whether executive compensation has a positive influence on firm performance while controlling for firm size and industry product as previous studies have found evidence for these being firm performance determinants. The sample of 90 Malaysian public listed firms has been manually selected based on the availability of information in annual reports regarding executive compensation. The empirical results have found a positive and significant relationship between executive compensation and firm performance in terms of return on equity. This study makes a significant contribution to the existing literature on the pay-performance relationship for Malaysian firms as little evidence has been found yet 2015 Thesis https://etd.uum.edu.my/4626/ https://etd.uum.edu.my/4626/1/s814853.pdf text eng public https://etd.uum.edu.my/4626/2/s814853_abstract.pdf text eng public masters masters Universiti Utara Malaysia Abdullah, S.N. (2014). Directors’ remuneration, firm’s performance and corporate governance in Malaysia among distressed companies. Corporate Governance, 6(2), 162-174. Baptista, M. (2010). CEO compensation and firm performance in France. HEC Paris. Bhattacharya, M., Doty, D.H. & Garavan, T. (2014). The organizational context and performance implications of Human Capital investment variability. Human Resource Development Quarterly, 25(1), 87-113. Bootsma, A.A. (2009). Pay-for-performance? An empirical investigation of the relationship between executive compensation and firm performance in the Netherlands. 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