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The effect of financial performance on directors remuneration / Siti Marliah Buhari

There is a growing controversy in many countries that the top management remuneration is totally out of tune with the firms performance. However , some economic theories of efficient compensation and remuneration predict a positive relationship between management pay and firm performance. The study...

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Main Author: Buhari, Siti Marliah
Format: Student Project
Language:English
Published: Faculty of Business and Management 1995
Subjects:
HG Finance
Online Access:http://ir.uitm.edu.my/id/eprint/648/1/PPb_SITI%20MARLIAH%20BUHARI%20BM%2095_5%20P01.pdf
http://ir.uitm.edu.my/id/eprint/648/
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spelling my.uitm.ir.6482018-10-29T07:07:29Z http://ir.uitm.edu.my/id/eprint/648/ The effect of financial performance on directors remuneration / Siti Marliah Buhari Buhari, Siti Marliah HG Finance There is a growing controversy in many countries that the top management remuneration is totally out of tune with the firms performance. However , some economic theories of efficient compensation and remuneration predict a positive relationship between management pay and firm performance. The study try to determine whether these economic theories are acceptable in the Malaysian labour market. Data from the sample of 12 commercial banks from 1984 to 1993 is examined, using the average of EPS, EBIT, EAT and Dividend payable with the average remuneration receive by its directors. The remuneration is regressed against the EPS, EBIT, EAT and Dividend payable using Least Square method on a Single Linear Function. The empirical study shows that each of the variable used namely, EPS, EBIT, EAT and Dividend payable proposed a positive relationship. Referring to the test conducted, T- statistics, F-test and R2 indicates that this relationship is statistically significant except for the F - test of the EPS is insignificant Therefore, it is concluded that the financial performance do effect its directors' remuneration and theories of efficient compensation and remuneration saying that there is a positive relationship between management pay and financial performance is applicable in Malaysian labour market. Faculty of Business and Management 1995 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/648/1/PPb_SITI%20MARLIAH%20BUHARI%20BM%2095_5%20P01.pdf Buhari, Siti Marliah (1995) The effect of financial performance on directors remuneration / Siti Marliah Buhari. [Student Project] (Unpublished)
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 HG Finance
spellingShingle HG Finance
Buhari, Siti Marliah
The effect of financial performance on directors remuneration / Siti Marliah Buhari
description There is a growing controversy in many countries that the top management remuneration is totally out of tune with the firms performance. However , some economic theories of efficient compensation and remuneration predict a positive relationship between management pay and firm performance. The study try to determine whether these economic theories are acceptable in the Malaysian labour market. Data from the sample of 12 commercial banks from 1984 to 1993 is examined, using the average of EPS, EBIT, EAT and Dividend payable with the average remuneration receive by its directors. The remuneration is regressed against the EPS, EBIT, EAT and Dividend payable using Least Square method on a Single Linear Function. The empirical study shows that each of the variable used namely, EPS, EBIT, EAT and Dividend payable proposed a positive relationship. Referring to the test conducted, T- statistics, F-test and R2 indicates that this relationship is statistically significant except for the F - test of the EPS is insignificant Therefore, it is concluded that the financial performance do effect its directors' remuneration and theories of efficient compensation and remuneration saying that there is a positive relationship between management pay and financial performance is applicable in Malaysian labour market.
format Student Project
author Buhari, Siti Marliah
author_facet Buhari, Siti Marliah
author_sort Buhari, Siti Marliah
title The effect of financial performance on directors remuneration / Siti Marliah Buhari
title_short The effect of financial performance on directors remuneration / Siti Marliah Buhari
title_full The effect of financial performance on directors remuneration / Siti Marliah Buhari
title_fullStr The effect of financial performance on directors remuneration / Siti Marliah Buhari
title_full_unstemmed The effect of financial performance on directors remuneration / Siti Marliah Buhari
title_sort effect of financial performance on directors remuneration / siti marliah buhari
publisher Faculty of Business and Management
publishDate 1995
url http://ir.uitm.edu.my/id/eprint/648/1/PPb_SITI%20MARLIAH%20BUHARI%20BM%2095_5%20P01.pdf
http://ir.uitm.edu.my/id/eprint/648/
_version_ 1685648076841156608
score 13.211869

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