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/ http://ir.uitm.edu.my/id/eprint/648/1/PPb_SITI%20MARLIAH%20BUHARI%20BM%2095_5%20P01.pdf

id	uitm-648
recordtype	eprints
spelling	uitm-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)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
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/ http://ir.uitm.edu.my/id/eprint/648/1/PPb_SITI%20MARLIAH%20BUHARI%20BM%2095_5%20P01.pdf
first_indexed	2023-09-18T22:44:48Z
last_indexed	2023-09-18T22:44:48Z
_version_	1777417153572503552

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

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