Sales Growth, CEO Pay, and Corporate Governance in India

Jaiswall, Sudhir S.; Raman, K. K.

doi:10.1177/0148558x19825672

Cited by 9 publications

(3 citation statements)

References 48 publications

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“…This finding is consistent with the traditional theoretical understanding, that emerging markets have an overall risky political and economic setting (Fan et al, 2011). As such, firms prefer to reduce the agency problem by aligning the interests of shareholders and the CEO by linking CEO remuneration with the firm's long-term stability (or profits and performance) (Jaiswall & Raman, 2019). The limitations of the current study provide direction for future research to further enhance the literature on CEO remuneration.…”

Section: O N C L U S I O Nmentioning

confidence: 89%

Setting CEO Remuneration in Pakistan: Comparing Theory and Practice

Siddiqui,

Sohail,

Niazi

2023

jirms

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Purpose - The current study examines the explanatory power of four main theories (Agency, Stakeholder, Management Power, and Institutional) for setting CEO remuneration in Pakistan. As such, the study evaluates CEO remuneration from a country-specific perspective. Design/methodology/approach - Data for 58 non-financial firms is collected for the past ten years (from 2012 to 2021) for the examination. GMM/IV approach is used for estimating the output to control the potential endogeneity problem. The study also applies the Fixed Effects EGLS estimation approach as a robustness check while changing certain proxies. Findings - The results show evidence to support the explanatory power of all four theories selected for the examination when determining CEO remuneration in Pakistan. Based on the results of the study, the order of importance or explanatory power (from highest to lowest) of the theories is: (i) Agency theory (represented by firm performance), (ii) Management Power theory (represented by firm size), (iii) Stakeholder theory (represented by CSR and sustainable practices), and (iv) Institutional theory (represented by governance and CEO-specific factors). Therefore, the study concludes that in Pakistan, CEO remuneration is set following the notions of Agency theory, where the primary aim of the Board is to align the interests of the CEO with the shareholders. Practical Implications-The major practical implication of the current study relates to setting an optimal CEO remuneration policy. The study empirically shows which factors play a role in setting CEO remuneration in Pakistan, providing an avenue of reassessing and refining the policy as and when needed, as the external factors change. However, improving the sample size and examining the relationship of Stakeholder theory with aspects like ESG (environmental, social, and governance) disclosures would further improve the quality and generalizability of the study. Originality/value - Available literature covering CEO remuneration is quite diverse, however, as scholars have examined it using different theoretical approaches, the results are inconclusive. As such, there is a need to establish the explanatory powers of different theorized relationships for CEO remuneration and consider how CEO remuneration is determined in practice. Furthermore, the studies covering different countries and markets show different results, reflecting the importance of considering institutional and market settings when inferring the results. Both these gaps are addressed in the current study.

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Section: O N C L U S I O Nmentioning

confidence: 89%

Setting CEO Remuneration in Pakistan: Comparing Theory and Practice

Siddiqui,

Sohail,

Niazi

2023

jirms

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“…The paper utilizes data from the Centre for Monitoring Indian Economy (CMIE)—ProwessIQ Database for credit rating and firms’ financial information. Several Indian studies have used the above database (Jaiswall & Bhattacharyya, 2016; Jaiswall & Raman, 2021; Jawed et al, 2019). The paper analyzes the competition among CRAs by focusing on India’s domestic credit rating industry.…”

Section: Data and Summary Statisticsmentioning

confidence: 99%

Impact of Competition in Credit Rating Industry: Evidence From India

2023

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Credit rating agencies (CRAs) play an essential role in efficiently allocating capital in the financial system. However, several researchers have highlighted shortcomings of CRAs, leading to drastic consequences such as the 2008 financial crisis. The paper focuses on the competition among CRAs as one of the critical drivers of issues plaguing the credit rating industry. The paper uses quantitative and regression techniques to check the impact of competition on a firm’s credit rating. The paper utilizes firm-level financial and credit rating data from India. The paper uses dual ratings to check whether competition leads to rating inflation and shopping practices in the credit rating industry. The paper finds that CRA inflates a firm’s credit rating due to competition from other CRAs. Rating shopping is also evident in the credit rating industry, driven by competition between CRAs to gain new clients. The paper’s findings also indicate that increased competition for large-size firms business leads to CRAs showing leniency when rating such firms. The results raise the need for regulators to actively monitor and control the competition among CRAs to ensure the accuracy of credit ratings.

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“…Adanya pengaruh positif signifikan antara pertumbuhan penjualan dengan kinerja perusahaan. Adanya pertumbuhan penjualan mengidikasikan bahwa profitabilitas perusahaan tersebut meningkat [33], [34]. Namun terdapat penelitian yang menemukan hasil berbeda bahwa tidak terdapatnya hubungan antara pertumbuhan penjualan dengan kinerja perusahaan, dimana pertumbuhan penjualan suatu perusahaan tidak akan menjamin bahwa kinerja perusahaan itu baik [11].…”

Section: Sales Growthunclassified

Good Corporate Governance dan Operasional Perusahaan terhadap Kinerja Perusahaan

Sukmawati

Amalia

Sari

2021

BIEJ

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Abstract- This study aims to determine whether the components of good corporate governance, company operations and type of company ownership affect the firm's in companies listed on the Indonesia Stock Exchange. The population in this study are all companies listed as non-financial companies on the Indonesia Stock Exchange for the 2010-2019 period. The research sample was obtained by purposive sampling method, where there were 87 non-financial companies that met the sample criteria. This research was conducted using regression analysis, namely ordinary least squares (OLS), which aims to determine the influence of the independent variable on the dependent variable. The results showed that the frequency of board meetings 1 had a significant negative effect as indicated by the result that the number of "medium" meetings was smaller than the number of "slight" meetings. While the frequency of meeting 2, board size, sales growth, total asset turnover have positive significant effect on firm performance and the attendance of board members, leverage, firm size, firm age and type of company ownership consistently have no effect on firm performance. Abstrak- Penelitian ini bertujuan untuk mengetahui apakah komponen good corporate goverance, operasional perusahaan dan tipe kepemilikan perusahaan berpengaruh terhadap kinerja perusahaan pada perusahaan yang terdaftar di Bursa Efek Indonesia. Populasi dalam penelitian ini adalah perusahaan yang terdaftar sebagai perusahaan non keuangan di Bursa Efek Indonesia periode 2010-2019. Metode penentuan sampel menggunakan purposive sampling, dimana terdapat 87 perusahaan yang memenuhi kriteria sampel. Penelitian ini dilakukan dengan menggunakan analisis regresi yaitu ordinary least square (OLS), yang bertujuan untuk mengetahui pengaruh variabel independen terhadap variabel dependen. Hasil penelitian menunjukkan bahwa frekuensi rapat dewan 1 berpengaruh negatif signifikan yang ditunjukkan dengan hasil bahwa jumlah rapat “sedang” lebih kecil daripada jumlah rapat “sedikit”. Sedangkan frekuensi rapat 2, ukuran dewan, pertumbuhan penjualan, dan total perputaran aktiva berpengaruh positif signifikan terhadap kinerja perusahaan. Serta kehadiran anggota dewan, leverge, ukuran perusahaan, umur perusahaan dan tipe kepemilikan perusahaan tidak berpengaruh terhadap kinerja perusahaan.

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Sales Growth, CEO Pay, and Corporate Governance in India

Cited by 9 publications

References 48 publications

Setting CEO Remuneration in Pakistan: Comparing Theory and Practice

Setting CEO Remuneration in Pakistan: Comparing Theory and Practice

Impact of Competition in Credit Rating Industry: Evidence From India

Good Corporate Governance dan Operasional Perusahaan terhadap Kinerja Perusahaan

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