Relationship of corporate governance on directors' remuneration of listed small and medium-scale companies in Malaysia
Small and medium businesses play a significant role in the domestic economy. These businesses provide employment opportunities at lower and higher management levels with different employee remuneration schemes including directors. This research investigates the correlation between corporate gover...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Human Resource Management Academic Research Society
2024
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/116791/7/116791_Relationship%20of%20corporate%20governance.pdf http://irep.iium.edu.my/116791/ https://journals.indexcopernicus.com/search/details?id=7378 http://dx.doi.org/10.6007/IJARAFMS/v14-i4/23565 |
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| Summary: | Small and medium businesses play a significant role in the domestic economy. These
businesses provide employment opportunities at lower and higher management levels with
different employee remuneration schemes including directors. This research investigates the
correlation between corporate governance characteristics and directors' remuneration
within a sample of 50 small and medium-sized companies (SMCs) listed on Bursa Malaysia
spanning the period 2015 to 2018. The GMM estimator results reveal a positive association
between board size, board shareholding, family relationships, independent non-executive
directors, and directors' remuneration. Conversely, a negative relationship is observed
between the number of board meetings and directors' remuneration. The study suggests that
regulators take these findings into account to mitigate agency problems within small and
medium-sized listed companies in the country |
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