Board composition, executive compensation, and financial performance: panel evidence from India

Pathak, Mohit; Chandani, Arti

doi:10.1057/s41310-023-00179-3

Cited by 5 publications

(6 citation statements)

References 87 publications

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“…Market capitalization is an indicator obtained by multiplying the number of shares of a company by the price of one share. Ordinary least squares (OLS) regression is a commonly used method [39][40][41][42][43] for estimating coefficients in linear regression equations. The OLS method is often used [44,45] Environmental performance is the dependent variable that reveals the carbon dioxide emissions of companies and is calculated as CO2 equivalent direct emissions (Scope 1) divided by market capitalization multiplied by 1000.…”

Section: Methodsmentioning

confidence: 99%

Does the Financial and Innovation Performance of European and Asian–Oceanian Companies Coincide with the Targets of the Green Deal?

Vaitiekuniene,

Sutiene,

Kovalov

et al. 2024

Sustainability

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The Paris Agreement, signed in 2015 and put into effect in 2016, led to the European Green Deal. It envisages ensuring climate neutrality by 2050. To achieve this, solutions to the climate challenge have to be implemented globally. This research aims to evaluate interactions among corporate financial, innovation, and environmental performance indicators in European and Asian–Oceanian companies. Financial performance refers to the financial capacity and financial resources of companies that enable the creation of more sustainable innovations. More sustainable innovation could contribute to limiting global warming to 1.5 °C. Science indicates that global greenhouse gas emissions need to be cut down by 43% by 2030, compared to 2019 levels, to limit global warming to 1.5 °C. According to our results, it is possible to compare which region, Europe or Asia, moved towards climate neutrality in the analyzed period of 2008–2019. By determining their starting positions, we seek to disclose how companies can contribute to climate change reduction. The results reveal that for both analyzed regions, financial and innovation indicators have an important impact on environmental performance. We found that the ROA ratio and R&D expenditures are significantly linked to carbon dioxide (CO2) emissions as an indicator of environmental performance. The interaction between ROA and CO2 emissions was identified as being stronger in Asia–Oceania. The relationship between R&D expenditures and CO2 emissions was more robust in Europe. Therefore, Europe is participating in the race towards sustainable goals by increasing R&D expenditures to stimulate green economy development. In the race to achieve the Green Deal’s long-term 2050 targets, companies will have to combine their strategic decisions, while business survival requires profitability, meaning that the race towards climate neutrality goals will hardly be possible without corporate R&D expenditures.

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Section: Methodsmentioning

confidence: 99%

Does the Financial and Innovation Performance of European and Asian–Oceanian Companies Coincide with the Targets of the Green Deal?

Vaitiekuniene,

Sutiene,

Kovalov

et al. 2024

Sustainability

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show abstract

“…Our findings are in the same spirit, showing that investors agreed with the government that executive compensation needed to be regulated more strictly and comprehensively. Furthermore, a recent study suggested that a fair compensation composition structure must be designed based on financial performance to reduce managerial opportunism since executives may not act in the interests of shareholders (Pathak and Chandani 2023). In this regard, Pathak and Chandani (2023) pointed out that a fair composition structure can align the interests of managers and shareholders.…”

Section: Do Investors Agree On Stricter and More Comprehensive Compen...mentioning

confidence: 99%

“…Furthermore, a recent study suggested that a fair compensation composition structure must be designed based on financial performance to reduce managerial opportunism since executives may not act in the interests of shareholders (Pathak and Chandani 2023). In this regard, Pathak and Chandani (2023) pointed out that a fair composition structure can align the interests of managers and shareholders. Accordingly, our findings also show that the new compensation and governance regulations were beneficial to TARP firms' shareholders by helping them align their interests with managers'.…”

Section: Do Investors Agree On Stricter and More Comprehensive Compen...mentioning

confidence: 99%

Stockholder Wealth Maximization during the Troubled Asset Relief Program Period: Is Executive Pay Harmful?

Junarsin,

Pelawi,

Pelawi

et al. 2024

JRFM

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This study investigates governance mechanisms and their relation to firm value, i.e., executive compensation restrictions during the regulatory period and their effects on the performance of firms that received Troubled Asset Relief Program (TARP) funds. We employ an event study to investigate the market reactions for TARP recipients, followed by OLS regression to examine the stock return effects of 10 announcements. For comparison, we also employ a multivariate regression model (MVRM) based on a system of equations with seemingly unrelated regressions (SURs). Our evidence shows that changes in firm value have a negative and significant relationship with changes in total compensation for TARP companies that have paid back their debts to the government. However, the relationship is weaker than that for TARP companies that have not paid back the bailout money.

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“…Entretanto, uma composição eficiente do conselho de administração pode reduzir os problemas de agência ao estruturar a remuneração dos executivos alinhada aos interesses dos executivos e dos acionistas (Pathak & Chandani, 2023). Além disso, as recentes crises e escândalos financeiros levaram a uma inquietação geral sobre a necessidade de reformas das políticas de remuneração dos executivos (Alkalbani et al, 2019).…”

Section: Introductionunclassified

“…Mulheres no Conselho de Administração e os Impactos na Remuneração dos Executivos e Performance de Grandes Empresas Brasileiras ASAA com a remuneração dos altos executivos. Concernente à efetividade dos conselhos de administração, a diversidade de gênero nos comitês e no conselho de administração possibilita remunerações menos abusivas, já que foram identificadas relações negativas com a remuneração total da diretoria (Patnaik & Suar, 2020;Usman et al, 2019) e relação positiva com a remuneração baseada na performance (Gilley et al, 2019;Lucas-Pérez et al, 2015;(Pathak & Chandani, 2023;Sarhan et al, 2019;Usman et al, 2019) e baseada em ações (Adams & Ferreira, 2009).…”

Section: Introductionunclassified

Mulheres no Conselho de Administração e os Impactos na Remuneração dos Executivos e Performance de Grandes Empresas Brasileiras

Iglesias,

Guimarães,

Rogers

2024

ASAA Journal

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Objetivo: Este estudo tem como objetivo investigar qual a influência da diversidade de gênero do conselho de administração no desempenho econômico-financeiro e na remuneração dos executivos das grandes empresas brasileiras. Método: Foram analisadas 84 empresas não financeiras do IBrX 100, por meio de painel dinâmico (2015 a 2019) com System GMM em um e dois estágios. Resultados ou Discussão: As principais evidências sinalizaram que a diversidade de gênero não possibilitou benefício econômico, seja pela melhoria do desempenho econômico-financeiro ou pela redução das compensações excessivas dos gestores, o que, portanto, indica que as hipóteses não foram respondidas. A despeito dos achados, ressalta-se que as empresas devem envidar esforços para que a política de cotas de gênero no âmbito da entidade seja implementada acima do mínimo, não se restringindo ao percentual instituído em lei. Tal ação inspira credibilidade nos stakeholders, pois evidencia o compromisso da instituição com a diversidade. Contribuições: A discussão sobre diversidade de gênero é pertinente, sobretudo na realidade brasileira, cuja representação feminina nas grandes organizações é pequena (10%), com apenas 53% das companhias com pelo menos uma mulher em seus conselhos de administração. Em países emergentes como o Brasil, as discussões relativas à diversidade são ainda incipientes, notadamente porque não há legislação consolidada sobre o assunto, senão projeto de lei aguardando votação e deliberação. Disso se infere o ineditismo do presente estudo, que normalmente encontra nos países desenvolvidos.

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Board composition, executive compensation, and financial performance: panel evidence from India

Cited by 5 publications

References 87 publications

Does the Financial and Innovation Performance of European and Asian–Oceanian Companies Coincide with the Targets of the Green Deal?

Does the Financial and Innovation Performance of European and Asian–Oceanian Companies Coincide with the Targets of the Green Deal?

Stockholder Wealth Maximization during the Troubled Asset Relief Program Period: Is Executive Pay Harmful?

Mulheres no Conselho de Administração e os Impactos na Remuneração dos Executivos e Performance de Grandes Empresas Brasileiras

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