Directors' Remuneration And Firms' Performance In Malaysia

Nowadays, director's remuneration has becoming increasingly popular and being discussed by all walks oflife. Through a holistic approach based on corporate governance best practice, it could affect the internal and external performance. The main objective of the study is to investigate relat...

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Bibliographic Details
Main Author: Fenny Ester, Joslin
Format: Final Year Project Report
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2017
Subjects:
Online Access:http://ir.unimas.my/id/eprint/37139/2/Fenny%20Ester%20Joslin%20ft.pdf
http://ir.unimas.my/id/eprint/37139/
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Summary:Nowadays, director's remuneration has becoming increasingly popular and being discussed by all walks oflife. Through a holistic approach based on corporate governance best practice, it could affect the internal and external performance. The main objective of the study is to investigate relationship director's remuneration on firm performance. 266 samples of annual reports are listed firm for the period of 2013 to 2015 were obtained and examined. The regression result shows that director's remuneration has negative insignificant relationship on Return on Asset (ROA) and positive insignificant relationship on Return on Equity (ROE). Although they are not significant result, director's remuneration somehow motivates the directors to work harder and enhance firm's performance. Control variable in this study such as board independence, CEO duality, firm size and board size affect firm's performance differently. Future studies suggest this study can be extent by using other firm's performance measurement such as Tobin Q, growth and market value added