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Chief executive compensation - part and parcel of the agency problem: empirical evidence from Pakistan / Mohsin Ali Patel, Aamir Firoz Shamsi and Muhammad Asim.

As per the agency theory, there is a conflict of interest between shareholders and managers. Shareholders are the principal and managers are the agents of a company. Both these parties have different objectives. So, these top executives who are hired to safeguard the interests of shareholders, after...

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Main Authors: Patel, Mohsin Ali, Shamsi, Aamir Firoz, Asim, Muhammad
Format: Article
Language:English
Published: Universiti Teknologi MARA, Shah Alam: Accounting Research Institute (ARI) 2018
Subjects:
Compensation management
Performance standards
Online Access:http://ir.uitm.edu.my/id/eprint/29669/1/29669.pdf
http://ir.uitm.edu.my/id/eprint/29669/
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id my.uitm.ir.29669
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spelling my.uitm.ir.296692020-04-18T03:17:34Z http://ir.uitm.edu.my/id/eprint/29669/ Chief executive compensation - part and parcel of the agency problem: empirical evidence from Pakistan / Mohsin Ali Patel, Aamir Firoz Shamsi and Muhammad Asim. Patel, Mohsin Ali Shamsi, Aamir Firoz Asim, Muhammad Compensation management Performance standards As per the agency theory, there is a conflict of interest between shareholders and managers. Shareholders are the principal and managers are the agents of a company. Both these parties have different objectives. So, these top executives who are hired to safeguard the interests of shareholders, after a period might start working for their own personal interests like, increase in the amount of their compensation and benefits, and, on the contrary, shareholders might wish to decrease operating expenses, salaries and aim for higher profits, or dividends. The objective of this study is to study the agency theory with reference to an insight to compensation for chief executives in Pakistan. It aims to find the effect of shareholder dividends, financial performance and firm size on executive compensation. The results show that market capitalization and return on assets are the major factors effecting executive compensation. However, interestingly, shareholder dividends do not show to have any effect on compensation. Universiti Teknologi MARA, Shah Alam: Accounting Research Institute (ARI) 2018-04 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/29669/1/29669.pdf Patel, Mohsin Ali and Shamsi, Aamir Firoz and Asim, Muhammad (2018) Chief executive compensation - part and parcel of the agency problem: empirical evidence from Pakistan / Mohsin Ali Patel, Aamir Firoz Shamsi and Muhammad Asim. Asia-Pacific Management Accounting Journal (APMAJ), 13 (1). pp. 153-165. ISSN 2550-1631
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Compensation management
Performance standards
spellingShingle Compensation management
Performance standards
Patel, Mohsin Ali
Shamsi, Aamir Firoz
Asim, Muhammad
Chief executive compensation - part and parcel of the agency problem: empirical evidence from Pakistan / Mohsin Ali Patel, Aamir Firoz Shamsi and Muhammad Asim.
description As per the agency theory, there is a conflict of interest between shareholders and managers. Shareholders are the principal and managers are the agents of a company. Both these parties have different objectives. So, these top executives who are hired to safeguard the interests of shareholders, after a period might start working for their own personal interests like, increase in the amount of their compensation and benefits, and, on the contrary, shareholders might wish to decrease operating expenses, salaries and aim for higher profits, or dividends. The objective of this study is to study the agency theory with reference to an insight to compensation for chief executives in Pakistan. It aims to find the effect of shareholder dividends, financial performance and firm size on executive compensation. The results show that market capitalization and return on assets are the major factors effecting executive compensation. However, interestingly, shareholder dividends do not show to have any effect on compensation.
format Article
author Patel, Mohsin Ali
Shamsi, Aamir Firoz
Asim, Muhammad
author_facet Patel, Mohsin Ali
Shamsi, Aamir Firoz
Asim, Muhammad
author_sort Patel, Mohsin Ali
title Chief executive compensation - part and parcel of the agency problem: empirical evidence from Pakistan / Mohsin Ali Patel, Aamir Firoz Shamsi and Muhammad Asim.
title_short Chief executive compensation - part and parcel of the agency problem: empirical evidence from Pakistan / Mohsin Ali Patel, Aamir Firoz Shamsi and Muhammad Asim.
title_full Chief executive compensation - part and parcel of the agency problem: empirical evidence from Pakistan / Mohsin Ali Patel, Aamir Firoz Shamsi and Muhammad Asim.
title_fullStr Chief executive compensation - part and parcel of the agency problem: empirical evidence from Pakistan / Mohsin Ali Patel, Aamir Firoz Shamsi and Muhammad Asim.
title_full_unstemmed Chief executive compensation - part and parcel of the agency problem: empirical evidence from Pakistan / Mohsin Ali Patel, Aamir Firoz Shamsi and Muhammad Asim.
title_sort chief executive compensation - part and parcel of the agency problem: empirical evidence from pakistan / mohsin ali patel, aamir firoz shamsi and muhammad asim.
publisher Universiti Teknologi MARA, Shah Alam: Accounting Research Institute (ARI)
publishDate 2018
url http://ir.uitm.edu.my/id/eprint/29669/1/29669.pdf
http://ir.uitm.edu.my/id/eprint/29669/
_version_ 1685650549898215424
score 13.211869

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