Directors' remuneration, banks' specifics and board characteristics: the case of Indian listed banks

Q3 Business, Management and Accounting

International Journal of Business Governance and Ethics Pub Date : 2023-01-01 DOI:10.1504/ijbge.2023.134213

Najib H.S. Farhan, Faozi A. Almaqtari, Waleed M. Al ahdal, Hafiza Aishah Hashim

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Abstract

The article attempts to examine the impact of banks' specifics and board of directors' characteristics on directors' remuneration (REM) of 38 Indian listed banks from 2010 to 2019. The current study is based on secondary data that are extracted from the Prowess IQ database. Fixed effect model is used for analysing the data and generalised method of moment is applied for dealing with endogeneity problem. Finally, the sample is classified into three groups in order to check the robustness of the results. Results revealed that return on assets, size, and market capitalisation positively and significantly impact directors' REM of Indian listed banks. While banks' age, capital adequacy, current ratio, and board of directors' composition have an insignificant impact on directors' REM of Indian listed banks. The findings of the study provide new evidence about the impact of banks' specifics and board of directors' characteristics on directors' REM in the Indian banking sector. The findings suggest that firms' specifics are significant determinants of directors' REM.

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董事薪酬、银行特殊性与董事会特征:以印度上市银行为例

本文试图考察2010 - 2019年印度38家上市银行的银行特殊性和董事会特征对董事薪酬的影响。目前的研究是基于从高超智商数据库中提取的次要数据。用固定效应模型分析数据，用广义矩量法处理内生性问题。最后，将样本分为三组，以检验结果的稳健性。结果显示，资产回报率、规模和市值对印度上市银行董事的REM有显著的正向影响。而银行年龄、资本充足率、流动比率和董事会构成对印度上市银行董事REM的影响不显著。本文的研究结果为印度银行业中银行特殊性和董事会特征对董事REM的影响提供了新的证据。研究结果表明，公司的具体情况是董事REM的重要决定因素。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Business Governance and Ethics Business, Management and Accounting-Business and International Management

CiteScore

1.90

自引率

0.00%

发文量

期刊介绍： Issues of governance, responsibility and accountability are becoming increasingly important as the world, simultaneously, becomes dominated by corporations, interconnected via forces of globalisation and transparent through heightened media attention and the rise in internet-led democracy. Companies, and in particular leaders of business, can no longer hide from their responsibilities to wider stakeholder community by claims of ignorance of corporate malpractices and of failure. Boards of directors are being increasingly made responsible for both the successes and failures of their companies, as well as their own conduct and behaviours. Actions of business have increasingly become a concern not just for shareholders but also for the wider community at large.