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Directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (SOE) in Malaysia

The objective of this paper is to examine the relationship between directors’ remuneration and firm performance among state-owned enterprise (SOE) in Malaysia. In addition, we examine whether board size and government’s role moderate the relationship between directors’ remuneration and firm performa...

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Main Authors: Marziana Madah Marzuki,, Roslina Salwani Haji Shukri,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2019
Online Access:http://journalarticle.ukm.my/14568/1/31191-116383-1-PB.pdf
http://journalarticle.ukm.my/14568/
http://ejournal.ukm.my/pengurusan/issue/view/1231
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spelling my-ukm.journal.145682020-05-06T00:21:44Z http://journalarticle.ukm.my/14568/ Directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (SOE) in Malaysia Marziana Madah Marzuki, Roslina Salwani Haji Shukri, The objective of this paper is to examine the relationship between directors’ remuneration and firm performance among state-owned enterprise (SOE) in Malaysia. In addition, we examine whether board size and government’s role moderate the relationship between directors’ remuneration and firm performance in SOE. Using panel data regression model on 118 firm-year observations of state-owned enterprise in Malaysia from 2011 to 2013, this study finds there is positive relationship between directors’ remuneration and firm performance. The result provides supports that directors’ remuneration acts as incentive to board of directors to perform their monitoring task. The result also indicates that larger board size and government play an important role in enhancing firm performance of state-owned enterprise in Malaysia. Nevertheless, when we interact both variables with directors’ remuneration, the result indicates that larger board size and political connected directors moderate the positive relationship between firm performance and directors’ remuneration. Our result provides evidence that the interaction between directors’ remuneration and board size as well as political connected directors explain firm performance among state owned enterprise in Malaysia. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/14568/1/31191-116383-1-PB.pdf Marziana Madah Marzuki, and Roslina Salwani Haji Shukri, (2019) Directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (SOE) in Malaysia. Jurnal Pengurusan, 57 . pp. 1-14. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/1231
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The objective of this paper is to examine the relationship between directors’ remuneration and firm performance among state-owned enterprise (SOE) in Malaysia. In addition, we examine whether board size and government’s role moderate the relationship between directors’ remuneration and firm performance in SOE. Using panel data regression model on 118 firm-year observations of state-owned enterprise in Malaysia from 2011 to 2013, this study finds there is positive relationship between directors’ remuneration and firm performance. The result provides supports that directors’ remuneration acts as incentive to board of directors to perform their monitoring task. The result also indicates that larger board size and government play an important role in enhancing firm performance of state-owned enterprise in Malaysia. Nevertheless, when we interact both variables with directors’ remuneration, the result indicates that larger board size and political connected directors moderate the positive relationship between firm performance and directors’ remuneration. Our result provides evidence that the interaction between directors’ remuneration and board size as well as political connected directors explain firm performance among state owned enterprise in Malaysia.
format Article
author Marziana Madah Marzuki,
Roslina Salwani Haji Shukri,
spellingShingle Marziana Madah Marzuki,
Roslina Salwani Haji Shukri,
Directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (SOE) in Malaysia
author_facet Marziana Madah Marzuki,
Roslina Salwani Haji Shukri,
author_sort Marziana Madah Marzuki,
title Directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (SOE) in Malaysia
title_short Directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (SOE) in Malaysia
title_full Directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (SOE) in Malaysia
title_fullStr Directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (SOE) in Malaysia
title_full_unstemmed Directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (SOE) in Malaysia
title_sort directors’ remuneration, firm performance and political connection: evidence from state-owned enterprise (soe) in malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2019
url http://journalarticle.ukm.my/14568/1/31191-116383-1-PB.pdf
http://journalarticle.ukm.my/14568/
http://ejournal.ukm.my/pengurusan/issue/view/1231
_version_ 1669008486125535232
score 13.211869

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