Director remuneration and performance in Malaysia family firms: an expropriation matter?

Jaafar, Syaiful Baharee and Wahab, Effiezal Aswadi Abdul and James, Kieran (2012) Director remuneration and performance in Malaysia family firms: an expropriation matter? World Review of Business Research, 2 (4). pp. 204-222. ISSN 1838-3955

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Abstract

This study examines the relationship between director remuneration and performance in Malaysia family firms. The proxies of director remuneration include fees, salary, bonuses, and benefits of kin. The proxy for family firm is a dummy variable that is one (1) if the firm is a family firm and zero (0) is a non-family firm. The dependent variable (performance) is measured by ROA and ROE. A panel analysis of 537 firms from 2007 and 2009 finds that the relationship between director remuneration and performance is significantly positive. This suggests that the remuneration driven board motivation to enhance performance. Furthermore, this study does not find evidence the family firm manipulated a power and control for personal wealth.

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Item Type:	Article (Commonwealth Reporting Category C)
Refereed:	Yes
Item Status:	Live Archive
Additional Information:	Deposited with blanket permission of publisher.
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Date Deposited:	20 Jan 2013 23:48
Last Modified:	22 Aug 2014 05:35
Uncontrolled Keywords:	director remuneration, family firm, performance, direct shareholding, indirect shareholding
Fields of Research (2008):	15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150103 Financial Accounting 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150106 Sustainability Accounting and Reporting
Socio-Economic Objectives (2008):	C Society > 95 Cultural Understanding > 9599 Other Cultural Understanding > 959999 Cultural Understanding not elsewhere classified
URI:	http://eprints.usq.edu.au/id/eprint/21400

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