The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation

Fullana, Olga; Priego, Alba María; Toscano, David

doi:10.1016/j.ijhm.2022.103242

Cited by 8 publications

(3 citation statements)

References 63 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Meanwhile, the measurement of the company's work from a management perspective uses return on assets. The company's ability to generate profits from total assets can reduce agency problems, and a high ROA also affects the provision of executive compensation (Wicaksono, 2017;Millati, 2019;Fauzi et al 2022;Fullana et al 2022). The theory of gender diversity, i.e.…”

Section: Methodsmentioning

confidence: 99%

Factors Influencing CEO Compensation in Companies Listed on The LQ-45 Index of The Indonesia Stock Exchange 2016-2020

Wijaya,

Ismanto,

Marciano

2023

jabm

View full text Add to dashboard Cite

The purpose of this study is to find out the influence of tobin's-q, return on asset, women as CEO, board independence, institutional ownership, concentrated ownership, and firm size towards CEO compensation in companies listed on LQ-45 Index of the Indonesia Stock Exchange for the period of 2016-2020. This study uses a quantitative perspective with a linear regression model and data panel. The number of 205 data was observed continuously for five years according to the sample characteristics. Test model specifications with the Chow test and Hausman test shows that random effect models using white correction provide the most suitable results. The results showed that tobin's-q, women as CEO and firm sizes have a significant positive effect on CEO compensation. Meanwhile, institutional ownership has a significant negative effect on CEO compensation. The test results show return on assets and concentration ownership have no effect on CEO compensation. The contribution of this research can provide input for investors and management to understand the conditions of female executives' compensation and the factors that have fundamentally proven to affect the compensation of CEOs. Furthermore, these results have a strong reliability to be considered in designing executive compensation packages and good governance systems.

show abstract

Section: Methodsmentioning

confidence: 99%

Factors Influencing CEO Compensation in Companies Listed on The LQ-45 Index of The Indonesia Stock Exchange 2016-2020

Wijaya,

Ismanto,

Marciano

2023

jabm

View full text Add to dashboard Cite

show abstract

“…Firm performance (FP) typically includes both financial and market measures. Although the literature considers the market risk or volatility along with the performance variables (Fullana et al 2022), this study only considers the fundamental proxies for measuring sample firms' financial and market performance. The literature extensively used the return on assets (ROA) for financial performance and Tobin's Q ratio (TQ) for market performance (Bennouri et al 2018;Nadeem et al 2017;Vishnu and Gupta 2014).…”

Section: Measurement Of Firm Performance (Fp)mentioning

confidence: 99%

Unraveling the Dynamics of Intellectual Capital, Firm Performance, and the Influential Moderators—BIG4 Auditors and Group Affiliation

Mohapatra,

Pattanayak

2024

IJFS

View full text Add to dashboard Cite

The importance of intellectual capital (IC) in past decades unfolds several dimensions of firm performance (FP). Still, the contradictory and inconclusive relationship between IC and FP in the literature motivates the researchers to explore further and understand the empirical connection using both linear and curvilinear approaches. Using the fixed-effect panel regression models on a sample of 795 non-financial firms of India from the financial years 2004–2005 to 2020–2021, this study reveals that, undoubtedly, the IC enhances the FP up to a certain threshold, and with any marginal investment, IC reduces the FP by forming the inverted U-shaped curve. Interestingly, the presence of BIG4 auditors in Indian firms helps to increase the FP with the help of IC, even for the group-affiliated firms. Thus, this study aligns with both value creation and cost concern perspectives and implies that management and regulatory bodies may adopt a balanced approach while enhancing the FP through IC, as the result suggests that investment in IC will not endlessly improve the FP in the Indian context.

show abstract

“…M€ akinen (2008) examined Finnish panel data from 1996 to 2002 and discovers no link between a company's accounting performance and CEO compensation. Fullana et al (2022) recently investigated the role of accounting-based as well as market-based performance on CEO compensation of EURO STOXX-listed hotel companies and discovered an insignificant nonlinear relationship between performance and CEO compensation. Brick et al (2006) took the data from Standard and Poor's and COMPUSTAT data sets and Core et al (1999) studied the US firms and discovered a significant negative relationship between firm performance and CEO compensation.…”

Section: Introductionmentioning

confidence: 99%

Do financial constraints moderate the relationship between CEO compensation and firm performance: an emerging market evidence

Farooq

Khan

Noor

2023

View full text Add to dashboard Cite

PurposeThe current study aims to investigate the impact of firm performance on chief executive officer (CEO) remuneration in the context of an emerging market, i.e. Pakistan. Further, the interactive effect of financial constraints is investigated in the pay–performance relationship.Design/methodology/approachThe study's sample includes 173 non-financial firms listed on the Pakistan Stock Exchange. This study covers the years 2010–2019. The CEO compensation of the sample firms is measured in terms of salary and bonuses, perquisites and stock options paid to the CEO, whereas firm profitability is measured by return on assets, return on equity, Tobin's Q (Q) and earnings per share. The KZ Index measures the degree of financial constraint. The fixed effect model (FEM) and system GMM estimation techniques were used to conclude the study's findings. In addition, to test the robustness of the results, the authors computed the level of financial constraints using the WW Index.FindingsThe findings show that firm performance has a significant positive impact on CEO compensation in all profitability measures except Tobin's Q. Further financial constraints have a significant negative impact on CEO compensation. The interactive variables of FC with all profitability measures have a significant negative impact on CEO compensation.Originality/valueThis study examines the relationship between firm performance and CEO compensation. Furthermore, the current study expanded the analysis by incorporating the role of financial constraints in the pay–performance relationship, which has not previously been tested, particularly in the context of an emerging market.

show abstract

The role of financial performance of Eurostoxx listed hotel companies in determining CEO compensation

Cited by 8 publications

References 63 publications

Factors Influencing CEO Compensation in Companies Listed on The LQ-45 Index of The Indonesia Stock Exchange 2016-2020

Factors Influencing CEO Compensation in Companies Listed on The LQ-45 Index of The Indonesia Stock Exchange 2016-2020

Unraveling the Dynamics of Intellectual Capital, Firm Performance, and the Influential Moderators—BIG4 Auditors and Group Affiliation

Do financial constraints moderate the relationship between CEO compensation and firm performance: an emerging market evidence

Contact Info

Product

Resources

About