CEO compensation, customer satisfaction, and firm value

Basuroy, Suman; Gleason, Kimberly C.; Kannan, Yezen H.

doi:10.1108/raf-11-2012-0120

Cited by 30 publications

(24 citation statements)

References 91 publications

(117 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Steenkamp (2014) found that the processes and ways in which brand value contributes to firm value differ for different firms. In addition, Fabrizi (2014) found that the chief marketing officer of a company, if correctly incentivised, could contribute more to the value of a company than the chief executive officer, whilst Basuroy et al (2014) found that executive compensation plays an important role in explaining firm value. A superior supply chain management system could also give a company a comparative advantage in value creation (Ellinger et al, 2012).…”

Section: Multiple Regression Analysismentioning

confidence: 99%

Industry-specific determinants of shareholder value creation

Hall

2016

SEF

View full text Add to dashboard Cite

Purpose -Prior studies on determinants of shareholder value creation have reported conflicting and sometimes confusing results. In this study, to obtain more refined and industry-specific results regarding variables determining shareholder value creation, an analysis was performed focusing on different categories of firms or industries. Design/methodology/approach -Two dependent and 11 independent variables were applied to five different industries to obtain the best set of significant value drivers of shareholder value creation for a particular industry. Findings -Market value added (MVA) is a better indicator of shareholder value created compared to a market adjusted return. Accounting-based variables (EPS, ROA and NOPAT) are superior to economic-based variables (EVA and ROCE) in explaining shareholder value creation, but results differ, depending on the dependent variable chosen as shareholder value creation measure. For each industry, there is a unique set of variables that determine shareholder value creation; the industrial goods industry has seven significant value drivers, namely, EPS, NOPAT, ROCE, the Spread, EVA, EBEI and REVA, whilst for the food and beverages industry, there were only two significant value drivers (EPS and ROA). Originality/value -These findings imply that management, analysts and shareholders should, depending on the specific industry in which their firm operates, take into account a more specific set of variables when making their financial decisions, including compensation or reward structuring.

show abstract

Section: Multiple Regression Analysismentioning

confidence: 99%

Industry-specific determinants of shareholder value creation

Hall

2016

SEF

View full text Add to dashboard Cite

show abstract

“…CRM is a philosophy that places the customer at the heart of a business organization's processes, culture and activities to improve customer's satisfaction of services, and maximizes the profits for the organizations (Agarwal, 2009). According to Basuroy et al, (2014) customer satisfaction is an investment, which is considered as an intangible asset to the organizational balance sheet. CEOs wealth on long-term incentives compensation and firm stock prices increases when the customers are satisfied with the products and services offered by the organization.…”

Section: Customer Satisfactionmentioning

confidence: 99%

An Implementation of Customer Relationship Management and Customer satisfaction in Banking Sector of Quetta, Balochistan

Ajmal¹,

Rehman²

2019

IBR

View full text Add to dashboard Cite

Banking industry in Pakistan has become highly competitive, bankers are putting enhanced efforts to acquire and retain customers by incorporating innovative customer relationship management (CRM) techniques. Due to rapid technology penetration, customers have rapid entrance and options to multiple financial products/services. Present study focuses on measuring customer satisfaction in the result of Bank’s CRM efforts. Research is based on the fact and evolve the theme of the study, that is to find the significant factors affect customer satisfaction, that is a center of customer relationship management (CRM) for controlling the excessive competition in Quetta banking industry. Two structured questionnaires are used based on quantitative view and hand out on a stratified sample. First questionnaire is having a data of 31 employees in the sampled banks to measure the CRM suitability while second one is having a data of 302 customers from the sampled banks to count the level of customer satisfaction. The findings show that the selected banks apply the CRM components and found that these are positively associated with customer satisfaction. Respecting the results of the bank survey, the level of CRM implementation and the relevance of its elements be unlikely from one to another bank. Findings confirm that in Quetta banking sector there is a tough competition going on as every bank (public, private) is trying its best to capture more and more customers. Banks have to bring change in their strategies to build and strengthen relationship with their customers because it is one of the major competitive advantages.

show abstract

“…They found that there is a positive relationship between equity based compensation and firm value. Although there are very limited studies on equity based compensation and firm value, many researchers suggested that the increase in the level of directors' equity will increase firm value (Fahlenbrach & Stulz, 2009, Basuroy et al, 2014, Wahba et al, 2014.…”

Section: Studies On Relationship Between Directors Remuneration and Firm Valuementioning

confidence: 99%

Differences in Directors’ Remuneration and Firm Value of Malaysian Listed Firms

Razali¹,

Manas²,

Lunyai³

et al. 2018

IJARBSS

View full text Add to dashboard Cite

Directors' remuneration has attracted considerable interest among scholars and financial analysts as it is seen to be one of the main reason of good firm performance. This paper aimed to examine relationship cash and non-cash director's remuneration towards firm value in Malaysia. Data and materials were collected from Bursa Malaysia website and Eikon Thomson Reuters. Data on director's remuneration, CEO duality and board size were obtained from the annual report whereas other variables such as the firm value, firm size and leverage were collected from Eikon Thomson Reuters database. 602 firms from different industries ranging from 2014 to 2016 period was used as the sample of this study. Regression analysis shows that non-cash directors remuneration has a stronger significant positive relationship with firm value rather than cash remuneration. It proves that the remunerations received by directors can motivate them to perform better for the firm. The analysis also shows that board size and firm age to have a positive and significantly related with the firm value. Nonetheless, the potential limitation of using firm value as the only dependent variable may not provide more meaningful insight of the impact of other components of the performance measure such as excess in value, growth and other performance measure. Hence, future studies may use these variables for further research.

show abstract

CEO compensation, customer satisfaction, and firm value

Cited by 30 publications

References 91 publications

Industry-specific determinants of shareholder value creation

Industry-specific determinants of shareholder value creation

An Implementation of Customer Relationship Management and Customer satisfaction in Banking Sector of Quetta, Balochistan

Differences in Directors’ Remuneration and Firm Value of Malaysian Listed Firms

Contact Info

Product

Resources

About