当前位置: X-MOL 学术Review of Quantitative Finance and Accounting › 论文详情
Our official English website, www.x-mol.net, welcomes your feedback! (Note: you will need to create a separate account there.)
The effect of board composition and managerial pay on Saudi firm performance
Review of Quantitative Finance and Accounting Pub Date : 2021-05-02 , DOI: 10.1007/s11156-021-00959-4
Mamdouh Abdulaziz Saleh Al-Faryan

Using five empirical methodologies to account for endogeneity issues, this study investigates the effects of board independence and managerial pay on the performance of 169 Saudi listed firms between 2007 and the end of 2014. Studying board independence and managerial pay utilises the main internal governance mechanism in relation to firm performance; therefore, the effect of the 2009 exogenous regulatory shock on board independence was also examined to learn whether it impacted firm performance. The empirical results show that the board composition–performance relationship is endogenous. Strong evidence is found through the dynamic generalised method of moments estimation, which indicates that board composition has a positive relationship with return on assets, and poor past performance of listed firms has a negative impact on the current level of performance. The difference-in-differences approach results show a positive relationship between board composition, stock returns, and Tobin’s Q. The findings also reveal that managerial pay has a positive relationship with firm performance, although when endogeneity is considered, there is a smaller positive relationship and a decrease in significance levels. Thus, pay-for-performance in Saudi Arabia matters, and firms are not simply controlled by the government. The results of this study have implications for both policy makers and investors. In particular, policy makers and Saudi regulators can evaluate the impact of Saudi corporate governance arrangements and, in so doing, highlight changes in corporate governance arrangements that need to be made to achieve their economic objectives, such as Vision 2030. This study also contributes to the literature by showing the importance of considering endogeneity in studies.



中文翻译:

董事会组成和管理人员薪酬对沙特公司业绩的影响

本研究使用五种经验方法来解释内生性问题,研究了董事会独立性和管理人员薪酬对2007年至2014年底之间169家沙特上市公司业绩的影响。与公司绩效的关系;因此,还研究了2009年外部监管冲击对董事会独立性的影响,以了解其是否影响了公司绩效。实证结果表明,董事会组成与绩效之间的关系是内生的。通过动态的矩量估算方法发现了有力的证据,表明董事会组成与资产收益率呈正相关,上市公司过去的业绩不佳对当前的业绩水平有负面影响。差异差异方法结果显示了董事会组成,股票回报率和托宾Q之间的正相关。研究结果还表明,尽管考虑到内生性,管理人员薪酬与公司绩效之间存在正相关关系。显着性水平下降。因此,沙特阿拉伯的按绩效支付很重要,而且公司不仅仅受到政府的控制。这项研究的结果对政策制定者和投资者都有影响。尤其是,政策制定者和沙特监管机构可以评估沙特公司治理安排的影响,并在此过程中,如2030年远景通过显示研究中考虑内生性的重要性,本研究也为文献做出了贡献。

更新日期:2021-05-03
down
wechat
bug