Corporate governance, executive pay and firm performance: evidence from Bangladesh

Article

Rashid, Afzalur. 2013. "Corporate governance, executive pay and firm performance: evidence from Bangladesh." International Journal of Management. 30 (2), pp. 556-575.

Authors
Article Title	Corporate governance, executive pay and firm performance: evidence from Bangladesh
ERA Journal ID	19166
Article Category	Article
Author	Rashid, Afzalur
Journal Title	International Journal of Management
Journal Citation	30 (2), pp. 556-575
Number of Pages	20
Year	2013
Place of Publication	Poole, United Kingdom
ISSN	0813-0183
Web Address (URL)	http://www.internationaljournalofmanagement.co.uk/
Abstract	This study examines the relationship between executive pay and firm performance in Bangladesh. While doing so it examines the ownership structure and board practices on executive pay and pay-performance sensitivity. It is found that there is no significant relationship between ownership structure and executive pay. There is a significant positive relationship between board composition and executive pay; there is a significant negative relationship between board size and executive pay and CEO duality and executive pay. However, there is a positive relationship between executive pay and firm performance. These findings imply that the executives who have significant ownership stakes in the firm are not necessarily extracting rent in the form of executive pay even though they have a consolidation of powers (CEO duality). Insider representation in the board and management along with the consolidation of powers may have reduced the need for performance related pay and their monitoring skill may have allowed enhancing firm economic performance.
Keywords	Agency Theory, Bangladesh, Compensation, Corporate Governance, Insider Ownership, Rent Extraction, Stewardship Theory
ANZSRC Field of Research 2020	350799. Strategy, management and organisational behaviour not elsewhere classified
Public Notes	Copyright is the property of International Journal of Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.
Byline Affiliations	School of Accounting, Economics and Finance
Institution of Origin	University of Southern Queensland

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