Farzan Yahya; Zahiruddin Ghazali
Volume 3, Issue 6 , June 2016, , Pages 354-366
Abstract
This study aims to report the results of an investigation into the effect of accounting and market based performance measures on CEO compensation along with the moderating role of dividend policy. The study has utilized hierarchical multiple regression on a sample of 66 financial companies/banks listed ...
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This study aims to report the results of an investigation into the effect of accounting and market based performance measures on CEO compensation along with the moderating role of dividend policy. The study has utilized hierarchical multiple regression on a sample of 66 financial companies/banks listed on Karachi Stock Exchange (KSE), for a 5-year period (2010-2014). The results indicate that there is positive and significant impact of accounting based measures (operating performance and firm size) on CEO compensation. In case of market-based measures only growth opportunities have significant and positive impact on CEO compensation. Significant negative impact of market share and insignificant effect of market performance on CEO compensation has been revealed. Contrary to agency theory, this study finds that dividend policy is not utilized as a substitute control device. Additionally, dividend policy cannot mitigate agency conflicts in financial sector of Pakistan due to its ineffective role as aligning mechanism. Overall, the results imply that inefficient dividend policy can further distort the pay-performance link.
Mahmoud Nozarpour; Hamid Norouzi
Volume 2, Issue 6 , June 2015, , Pages 538-546
Abstract
The main goal of this study is to investigate the effect of capital structure and growth opportunities on earnings management in companies accepted in Tehran securities exchange during 2008 to 2013. Before data analysis, Chow test was applied to determine the appropriate model to estimate parameters ...
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The main goal of this study is to investigate the effect of capital structure and growth opportunities on earnings management in companies accepted in Tehran securities exchange during 2008 to 2013. Before data analysis, Chow test was applied to determine the appropriate model to estimate parameters and independent variables effect on dependent variable. Then, research hypotheses were tested through pooled data method. Research results showed that there is a significant relationship between capital structure index financial leverage and earnings management. Also, research showed that there is a nonlinear and significant relationship between growth opportunities and earnings management and growth opportunities have a significant effect on this relationship.