The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh

One of the main controversial issues arises from the weaknesses in the corporate governance practices is the directors’ remuneration. The question raised is whether the remuneration paid to the directors is consistent with the interest of the shareholders. Therefore, the main aim of this study is to...

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Main Author:	Mohd Tareh, Fattiadriati
Format:	Thesis
Language:	English
Published:	2019
Subjects:	Public administration General. Comparative government
Online Access:	http://ir.uitm.edu.my/id/eprint/28337/ http://ir.uitm.edu.my/id/eprint/28337/1/28337.pdf

id	uitm-28337
recordtype	eprints
spelling	uitm-283372020-02-12T07:17:40Z http://ir.uitm.edu.my/id/eprint/28337/ The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh Mohd Tareh, Fattiadriati Public administration General. Comparative government One of the main controversial issues arises from the weaknesses in the corporate governance practices is the directors’ remuneration. The question raised is whether the remuneration paid to the directors is consistent with the interest of the shareholders. Therefore, the main aim of this study is to identify the key determinants of directors’ remuneration in Malaysia. This study examines the relationships between the company’s characteristics and corporate governance characteristics with directors’ remuneration. For this research, the company’s characteristics selected are the company size, company leverage, company performance. Meanwhile, the corporate governance characteristics selected are the board leadership structure and the independence of the remuneration committee. A sample of 260 public listed companies on Bursa Malaysia was selected using stratified random sampling for the financial reporting year 2018. All data concerning company and corporate governance characteristics are obtained from the annual reports of the company which are accessible from the Bursa Malaysia website. Pearson correlation and multi regression was used to analyses the data to determine the relationship of the predictor variables with directors’ remuneration. It was found that only company size showed a significant positive relationship with directors’ remuneration. Company performance showed a positive but weak relationship with directors’ remuneration, which suggest that the remuneration paid to directors are not linked to company performance. The remaining predictors have no relationship with directors' remuneration. The findings suggest that the larger the company, the higher would be the remuneration paid to the directors. Besides, the directors' remuneration is not depending on the profit made by the company. Lastly, company compliance with the recommendation of Malaysian Code on Corporate Governance does not guarantee the effectiveness of the monitoring function of the remuneration committee in ensuring that the directors' remuneration is commensurate with the company performance. 2019-12 Thesis NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/28337/1/28337.pdf Mohd Tareh, Fattiadriati (2019) The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh. Masters thesis, Universiti Teknologi MARA.
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Public administration General. Comparative government
spellingShingle	Public administration General. Comparative government Mohd Tareh, Fattiadriati The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
description	One of the main controversial issues arises from the weaknesses in the corporate governance practices is the directors’ remuneration. The question raised is whether the remuneration paid to the directors is consistent with the interest of the shareholders. Therefore, the main aim of this study is to identify the key determinants of directors’ remuneration in Malaysia. This study examines the relationships between the company’s characteristics and corporate governance characteristics with directors’ remuneration. For this research, the company’s characteristics selected are the company size, company leverage, company performance. Meanwhile, the corporate governance characteristics selected are the board leadership structure and the independence of the remuneration committee. A sample of 260 public listed companies on Bursa Malaysia was selected using stratified random sampling for the financial reporting year 2018. All data concerning company and corporate governance characteristics are obtained from the annual reports of the company which are accessible from the Bursa Malaysia website. Pearson correlation and multi regression was used to analyses the data to determine the relationship of the predictor variables with directors’ remuneration. It was found that only company size showed a significant positive relationship with directors’ remuneration. Company performance showed a positive but weak relationship with directors’ remuneration, which suggest that the remuneration paid to directors are not linked to company performance. The remaining predictors have no relationship with directors' remuneration. The findings suggest that the larger the company, the higher would be the remuneration paid to the directors. Besides, the directors' remuneration is not depending on the profit made by the company. Lastly, company compliance with the recommendation of Malaysian Code on Corporate Governance does not guarantee the effectiveness of the monitoring function of the remuneration committee in ensuring that the directors' remuneration is commensurate with the company performance.
format	Thesis
author	Mohd Tareh, Fattiadriati
author_facet	Mohd Tareh, Fattiadriati
author_sort	Mohd Tareh, Fattiadriati
title	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_short	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_full	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_fullStr	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_full_unstemmed	The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh
title_sort	determinants of directors’ remuneration in the malaysian public listed companies / fattiadriati mohd tareh
publishDate	2019
url	http://ir.uitm.edu.my/id/eprint/28337/ http://ir.uitm.edu.my/id/eprint/28337/1/28337.pdf
first_indexed	2023-09-18T23:20:04Z
last_indexed	2023-09-18T23:20:04Z
_version_	1777419371777359872

The determinants of directors’ remuneration in the Malaysian public listed companies / Fattiadriati Mohd Tareh

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