University of Twente Student Theses
What is the effect of corporate governance on the pay-performance relationship in the Netherlands?
Weenders, V.P.M. (2019) What is the effect of corporate governance on the pay-performance relationship in the Netherlands?
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| Abstract: | The effect between CEO pay and firm performance has been examined by numerous scholars worldwide for decades. Despite this, still ambiguity among the results exists. Therefore, this study examines the effect of CEO pay on subsequent firm performance for 89 Dutch listed firms over a sample period of 2014 to 2017. Furthermore, this study also examines the moderating effect of several corporate governance variables on the effect of CEO pay on firm performance. Specifically, CEO tenure, audit committee presence, firm board independence and supervisory board gender diversity have been included. The results of the OLS regression analyses show that the effect of CEO pay on subsequent firm performance highly depends on how firm performance is measured, which control variables are included and which CEO compensation variables are used in the models. Moreover, the corporate governance variables do not seem to significantly influence the effect of CEO pay on subsequent firm performance. However, other interesting findings have emerged from the different analyses. This study contributes to the existing literature in that moderating effects of corporate governance on the effect of CEO pay on firm performance have been often neglected in the Dutch context. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 83 economics, 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Keywords: | CEO pay, CEO compensation, Firm performance, Corporate governance, CEO tenure, Audit committee, Independent directors, Gender diversity, Supervisory board, The Netherlands |
| Link to this item: | https://purl.utwente.nl/essays/77729 |
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