Director Remuneration Pay: Trends During and After the Financial Crisis of 2007 to 2009
The objective of this study is to examine the trends of director remuneration in Malaysia’s publicly listed companies. The proxies for executive pay are based on cash remuneration consisting of fees, salary, bonuses, and benefits to kin. Based on the data collected from 486 publicly listed companies...
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University of Wollongong
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doaj-fecc83cc7aec4a139d83e8dfd528d8db2020-11-24T22:01:50ZengUniversity of WollongongAustralasian Accounting, Business and Finance Journal1834-20001834-20192014-09-0183556810.14453/aabfj.v8i3.6Director Remuneration Pay: Trends During and After the Financial Crisis of 2007 to 2009Syaiful Baharee Jaafar0Kieran James1Polytechnic Tuanku Sultanah Bahiyah, MalaysiaUniversity of Fiji, FijiThe objective of this study is to examine the trends of director remuneration in Malaysia’s publicly listed companies. The proxies for executive pay are based on cash remuneration consisting of fees, salary, bonuses, and benefits to kin. Based on the data collected from 486 publicly listed companies in Bursa Malaysia from 2007 to 2009, we empirically tested findings that the trends for remuneration increased during and after the financial crisis. The study also reveals that the structure of remuneration, such as salary and bonuses for executives, showed an increasing trend during and after the financial crisis; however, it shows that the trend of director remuneration in family firms after the financial crisis was decreasing. Further analysis indicates that family members were willing to accept lower fees, bonuses, and benefits to kin in order to maintain cash flow. Our study suggests that no expropriation existed in family firms during and after the financial crisis. However, executives in non-family firms are less interested in accepting lower remuneration as part of a contract. http://ro.uow.edu.au/aabfj/vol8/iss3/6Trends in remunerationFinancial CrisisMalaysiafamilynon-familyBursaBursa MalaysiaDirector remuneration |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Syaiful Baharee Jaafar Kieran James |
spellingShingle |
Syaiful Baharee Jaafar Kieran James Director Remuneration Pay: Trends During and After the Financial Crisis of 2007 to 2009 Australasian Accounting, Business and Finance Journal Trends in remuneration Financial Crisis Malaysia family non-family Bursa Bursa Malaysia Director remuneration |
author_facet |
Syaiful Baharee Jaafar Kieran James |
author_sort |
Syaiful Baharee Jaafar |
title |
Director Remuneration Pay: Trends During and After the Financial Crisis of 2007 to 2009 |
title_short |
Director Remuneration Pay: Trends During and After the Financial Crisis of 2007 to 2009 |
title_full |
Director Remuneration Pay: Trends During and After the Financial Crisis of 2007 to 2009 |
title_fullStr |
Director Remuneration Pay: Trends During and After the Financial Crisis of 2007 to 2009 |
title_full_unstemmed |
Director Remuneration Pay: Trends During and After the Financial Crisis of 2007 to 2009 |
title_sort |
director remuneration pay: trends during and after the financial crisis of 2007 to 2009 |
publisher |
University of Wollongong |
series |
Australasian Accounting, Business and Finance Journal |
issn |
1834-2000 1834-2019 |
publishDate |
2014-09-01 |
description |
The objective of this study is to examine the trends of director remuneration in Malaysia’s publicly listed companies. The proxies for executive pay are based on cash remuneration consisting of fees, salary, bonuses, and benefits to kin. Based on the data collected from 486 publicly listed companies in Bursa Malaysia from 2007 to 2009, we empirically tested findings that the trends for remuneration increased during and after the financial crisis. The study also reveals that the structure of remuneration, such as salary and bonuses for executives, showed an increasing trend during and after the financial crisis; however, it shows that the trend of director remuneration in family firms after the financial crisis was decreasing. Further analysis indicates that family members were willing to accept lower fees, bonuses, and benefits to kin in order to maintain cash flow. Our study suggests that no expropriation existed in family firms during and after the financial crisis. However, executives in non-family firms are less interested in accepting lower remuneration as part of a contract. |
topic |
Trends in remuneration Financial Crisis Malaysia family non-family Bursa Bursa Malaysia Director remuneration |
url |
http://ro.uow.edu.au/aabfj/vol8/iss3/6 |
work_keys_str_mv |
AT syaifulbahareejaafar directorremunerationpaytrendsduringandafterthefinancialcrisisof2007to2009 AT kieranjames directorremunerationpaytrendsduringandafterthefinancialcrisisof2007to2009 |
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