Board remuneration, directors’ ownership and corporate performance: the South African evidence

Lemma, Tesfaye; Mlilo, Mthokozisi; Gwatidzo, Tendai

doi:10.1080/02692171.2020.1773654

Cited by 21 publications

(14 citation statements)

References 64 publications

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“…This result is in line with the argument that NEDR correlates with directors' social networks, qualifications, age and experience (Adams and Ferreira, 2008;Goh and Gupta, 2016;Horton et al, 2012), suggesting that investment in outside directors (paying attractive remuneration) contribute to board effectiveness. The result is also consistent with previous evidence that the amount of directors' remuneration positively associates with corporate performance (Lemma et al, 2020;Marzuki and Shukri, 2020) and negatively related to the risk of financial statement fraud (Nasir, 2013).…”

Section: Discussion Of Empirical Resultssupporting

confidence: 91%

“…These findings indicate that companies value directors' characteristics, social networking and the ability to contribute to board effectiveness. Lemma et al (2020) and Marzuki and Shukri (2020) find an association between the amount of directors' remuneration and corporate performance. Nasir (2013) documents an inverse relationship between board remuneration and risk of financial statement fraud.…”

Section: Non-executive Directors' Remuneration and Remmentioning

confidence: 96%

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Investment in outside governance monitoring and real earnings management: evidence from an emerging market

Ghaleb

Kamardin

Hashed

2021

JAEE

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PurposeThe main aim of this study is to examine the effect of investment in outside governance monitoring (IOGM), through non-executive directors' remuneration (NEDR) and external audit fees (AFEE), on real earnings management (REM) in an emerging market in the Southeast Asia region, Malaysia.Design/methodology/approachThe data comprises 1,056 observations from manufacturing companies listed on Bursa Malaysia for the four-year period, 2013 to 2016. The study tests IOGM individually and aggregately with REM. Feasible generalized least squares (FGLS) regression is used to test the hypotheses.FindingsThe results show that NEDR is negatively and significantly associated with REM. Likewise, AFEE is significantly associated with lower REM. Aggregate IOGM significantly mitigates REM. Additional tests conducted show consistent findings.Research limitations/implicationsThis evidence supports agency theory and signaling theory, that a high level of investment in governance monitoring signals a high demand for monitoring and fewer agency problems. It justifies more investment in outside scrutiny and monitoring to limit the existence of managers' opportunistic behavior in concentrated markets. This study relies on an aggregate measure of REM and focuses on manufacturing companies in Malaysia; thus, the results may not be the same using other measurements and samples.Originality/valueThe study, to the best of the researchers' knowledge, is the first to document evidence in an emerging market suggesting that higher NEDR and AFEE are individually and aggregately associated with lower REM. Policymakers, shareholders and researchers may consider investment in these two mechanisms as a proxy of high-quality monitoring that mitigates REM.

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Section: Discussion Of Empirical Resultssupporting

confidence: 91%

Section: Non-executive Directors' Remuneration and Remmentioning

confidence: 96%

Investment in outside governance monitoring and real earnings management: evidence from an emerging market

Ghaleb

Kamardin

Hashed

2021

JAEE

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“…Padia & Callaghan (2020; Harymawan et al, 2020) emphasized the important role of remuneration in increasing company performance. In addition, Lemma et al (2020) also found in South Africa companies, and Akter et al (2020) in Bangladesh companies, that remuneration does not have significant influence on company financial performance. A number of literatures provide different findings regarding the influence of remuneration.…”

Section: Literature Reviewmentioning

confidence: 91%

Remuneration to improve employee performance at waled regional hospital, Cirebon regency

Permana

Bharoto

2021

IJRBS

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Remuneration is a government policy that aims to improve employee welfare and improve employee performance. Through allowances in the form of remuneration, it is hoped that it can encourage more fun and can improve employee performance. However, even in agencies that already have remuneration, in reality, there are still dissatisfied employees. This study used a qualitative research design, with an inductive descriptive approach. The results of the study say that remuneration is closely related to performance, so the better the wage system, the better the employee's performance. However, it turns out that providing good remuneration does not necessarily result in good performance. Employee performance, in terms of service quality has been considered quite good, the speed, ability and initiative of employees are not considered maximal.

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“…A análise de regressão revelou que a distribuição de lucros ou resultados aos funcionários (PART) aumenta em 0,0045 pontos percentuais RENT2. Este achado, que destoa do percebido na análise de correlação, concorda com o percebido por autores como Murphy (1985), Main et al (1996), Pham et al (2013) e Lemma et al (2020), que defendem a remuneração variável baseada no desempenho passado, para melhorar o desempenho futuro, sendo que os lucros e os resultados distribuídos aos funcionários seguem essa mesma estrutura temporal.…”

Section: Influência Do Capital Humano No Desempenhounclassified

“…A remuneração foi percebida por Lemma et al (2020) como influenciadora na performance financeira, levando a inferir que as empresas podem utilizar a remuneração para melhorar seus resultados. Xavier et al (1999) trazem a remuneração estratégica como direcionada e, ao mesmo tempo, integrada à estratégia e ao negócio da empresa (Xavier et al, 1999).…”

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Remuneração e Desempenho Organizacional: uma Análise da Relação entre o Investimento em Capital Humano e o Desempenho Econômico-Financeiro das Concessionárias de Distribuição de Energia Elétrica Brasileiras

Cunha

Bianchi

Pain

2022

SCG

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Resumo: Com o objetivo de analisar a relação do investimento em capital humano com o desempenho econômico-financeiro das concessionárias de distribuição de energia elétrica brasileiras, no período de 2011 a 2018, este estudo contou com uma amostra composta por 35 empresas elencadas no Relatório de Indicadores de Sustentabilidade Econômico-Financeira das Distribuidoras que divulgaram os Indicadores Sociais Internos (ISIs). A análise foi realizada por meio da estatística descritiva dos dados, da correlação entre as variáveis dependentes e independentes e da verificação de regressão dos dados. Entre os resultados, pode-se destacar que os indicadores de investimento em capital humano ligados ao labor afetam positivamente o desempenho das empresas, já o investimento direcionado ao convívio social do trabalhador afeta de forma negativa. No entanto, a remuneração variável baseada no desempenho passado, representada pela participação nos lucros e resultados, pode melhorar o desempenho futuro das distribuidoras de energia elétrica. A evidenciação de correlação positiva entre as variáveis de investimento em capital humano, seguida da percepção de que influenciam com sinais contrários no desempenho das distribuidoras e com coeficientes de valores próximos, levam ao entendimento de que a relação pode ser nula pela sua própria estrutura. Assim, salienta-se a necessidade de monitoramento pelos gestores tanto dos resultados quanto dos indicadores

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Board remuneration, directors’ ownership and corporate performance: the South African evidence

Cited by 21 publications

References 64 publications

Investment in outside governance monitoring and real earnings management: evidence from an emerging market

Investment in outside governance monitoring and real earnings management: evidence from an emerging market

Remuneration to improve employee performance at waled regional hospital, Cirebon regency

Remuneração e Desempenho Organizacional: uma Análise da Relação entre o Investimento em Capital Humano e o Desempenho Econômico-Financeiro das Concessionárias de Distribuição de Energia Elétrica Brasileiras

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