This study first investigates the effect of firm performance on executive pay in listed firms in Turkey, an emerging market from 2009 to 2013. The results reveal a positive and significant link between firm profitability and executive pay: executive pay is sensitive to performance. The question of whether internal corporate control mechanisms play a significant role in the association between executive pay and firm profitability is revisited. Executive pay is weakly tied to profitability when the ownership concentration is high. We expected that, following the managerial power propositions, leadership duality and board size will weaken performance sensitivity of executive pay, with the impact of board independence on this sensitivity being the opposite. However, it was found that only board leadership duality and board size negatively affect the association between return on equity and executive compensation. This study concludes that the performance sensitivity of pay is weaker when executives have more control over decisions, especially those related to their compensation, and when the board of directors' monitoring effectiveness is relatively low.
This study investigates the performance consequences of Chief Executive Officer (CEO) succession in an emerging market as prior research suggests that the differences in the performance implications of CEO successor's origin may be related to the distinctive contexts offered by these economies. Hence, we investigated the impact of a new CEO origin on firm profitability in Turkey for the years 2010 and 2011. The results showed that there is a positive association between outsider successors and postsuccession profitability in listed companies in Turkey. Further, the effects of unrelated and related outside succession on post-succession firm performance differ. While the related outsiders affect negatively the firm performance, unrelated outsiders contribute positively to the post-succession profitability (ROA). These findings thus contribute to the existing CEO succession literature by emphasizing the value of outsider CEOs' fresh perspectives, new and diverse skills and initiative for change.
ÖzGenel müdür değişimleri alanında bugüne kadar yapılmış araştırmalar genel müdür haleflerinin şirket içinden veya dışından seçilmesinin firma performansı üzerinde farklı etkilere neden olmasını gelişen ekonomiler tarafından sunulan farklı bağlamlarla da ilişkili olabileceğini öne sürmektedir. Bu kapsamda, çalışmamızda gelişen bir ekonomi olan Türkiye'de genel müdür değişimlerinin firma performansı üzerindeki etkilerinin incelenmesi hedeflenmektedir. Bu amaçla, 2010 ve 2011 yılları arasında atanan yeni genel müdürlerin firma karlılığı üzerindeki etkisi araştırılmıştır. Sonuçlar, Türkiye'de borsada işlem gören şirketlerde şirket dışından atanan halefler ile değişim sonrası firma karlılıkları arasında olumlu bir ilişki olduğunu göstermiştir. Ayrıca, şirket dışından atanan bağlantılı veya bağlantısız haleflerin firma performansına etkilerinin farklı olduğu bulunmuştur. Şirket dışından atanan fakat bağlantılı yöneticiler firma performansını olumsuz yönde etkilerken, bağlantısız şirket dışı genel müdürlerin şirket kârlılığına (aktif karlılığı) olumlu katkıda bulunduğu saptanmıştır. Bu bulgular, şirket dışından transfer edilen genel müdürlerin yeni bakış açıları, yeni ve çeşitli becerileri ve değişim yönelimliliklerinin önemini bir kere daha vurgulayarak mevcut Genel Müdür değişimi yazınına katkıda bulunmaktadır.
My aim was to explain gender differences in relation to pay level satisfaction using social comparison theory. I investigated the relative effects of referents' gender and pay level on pay satisfaction levels of men and women, exploring how referents shape individuals' pay satisfaction.
The results validate prior research findings showing women have greater pay satisfaction than men have. In contrast to previous research, I found that referents' pay level was more important than gender in explicating men's and women's pay satisfaction levels. However, this association is
limited. Even when women compared themselves with referents at the same levels as the men were using as comparison, women's pay level satisfaction differed from that of the men in that women have relatively lower pay level satisfaction because of upward comparisons. This suggests that women
are needed as managerial role models in organizations to improve other women's expectations of pay and accomplishments, and top executives need to encourage women, so they are not undervalued or underemployed.
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