Are executive pay and firm performance related? Evidence-based on meta-regression analysis

IF 4.9 2区 管理学 Q1 MANAGEMENT
Madhur Bhatia, Rachita Gulati, Sunil Kumar
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引用次数: 0

Abstract

The empirical research on executive pay has garnered growing interest in recent years; however, these studies produce inconclusive evidence. Thereby, this study endeavors to quantitatively synthesize the results of the 137 research studies on the performance-pay relationship while factoring both institutional contexts (cross-sectional heterogeneity) and institutional dynamics (longitudinal heterogeneity). The meta-regression results corroborate the agency’s viewpoint that a positive and statistically significant relation exists between executive pay and firm performance. However, the variations in corporate governance systems substantially impact the relationship between performance and remuneration, highlighting the importance of the managerial power approach. As determined by the temporal analysis, this association has weakened over time, which is substantially attributable to the development of sound regulatory policies, the growing significance of alternative governance practices, analytical approaches, and firm nature. Furthermore, it is noted that with the convergence in governance practices, the moderating impact of different institutional contexts has become statistically less significant over time. Our results unequivocally demonstrate the critical role that institutional dynamics play in moderating the performance-pay relationship. This way, the study answers unresolved queries about the performance-pay association.

Abstract Image

高管薪酬与公司业绩是否相关?基于元回归分析的证据
近年来,有关高管薪酬的实证研究日益受到关注;然而,这些研究并没有提供结论性的证据。因此,本研究在考虑到制度背景(横向异质性)和制度动态(纵向异质性)的同时,努力对 137 项关于绩效与薪酬关系的研究结果进行定量综合。元回归结果证实了机构的观点,即高管薪酬与公司业绩之间存在统计意义上的显著正相关关系。然而,公司治理制度的差异对绩效与薪酬之间的关系产生了重大影响,这凸显了管理权力方法的重要性。时间分析表明,随着时间的推移,这种关系有所减弱,这在很大程度上归因于完善的监管政策的发展、替代性治理方法的重要性日益增加、分析方法以及公司性质。此外,我们还注意到,随着治理实践的趋同,不同制度背景的调节作用在统计上的显著性也随着时间的推移而减弱。我们的研究结果清楚地表明,制度动态在调节绩效-薪酬关系方面发挥着至关重要的作用。因此,本研究回答了有关绩效-薪酬关系的未决问题。
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来源期刊
CiteScore
9.70
自引率
9.30%
发文量
56
期刊介绍: The Asia Pacific Journal of Management publishes original manuscripts on management and organizational research in the Asia Pacific region, encompassing Pacific Rim countries and mainland Asia. APJM focuses on the extent to which each manuscript addresses matters that pertain to the most fundamental question: “What determines organization success?” The major academic disciplines that we cover include entrepreneurship, human resource management, international business, organizational behavior, and strategic management. However, manuscripts that belong to other well-established disciplines such as accounting, economics, finance, marketing, and operations generally do not fall into the scope of APJM. We endeavor to be the major vehicle for exchange of ideas and research among management scholars within or interested in the broadly defined Asia Pacific region.Key features include: Rigor - maintained through strict review processes, high quality global reviewers, and Editorial Advisory and Review Boards comprising prominent researchers from many countries. Relevance - maintained by its focus on key management and organizational trends in the region. Uniqueness - being the first and most prominent management journal published in and about the fastest growing region in the world. Official affiliation - Asia Academy of ManagementFor more information, visit the AAOM website:www.baf.cuhk.edu.hk/asia-aom/ Officially cited as: Asia Pac J Manag
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