The Impact of Corporate Governance on Executive Compensation in Iranian Firms

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Pourvosoughi Sarcheshmeh, Shaghayegh | 2020

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Type of Document: M.Sc. Thesis
Language: English
Document No: 53221 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Bahramgiri, Mohsen; Hagh-Panah, Farshad
Abstract:
In this study, I examine the role of board composition and ownership structure and trading days on board compensation of 156 Iranian non-financial public firms. Regarding board composition, I find that board size, CEO-Directorship, and the presence of busy directors positively explain board bonus. Concerning ownership structure, results reveal that outside block-holders and the percentage of individual investors negatively influence on board bonus. Also, trading days is proved to have a positive impact on board bonus. Furthermore, I examine the impact of compensation relating to board composition and ownership structure and trading days (predicted compensation) on the future operating performance and stock return. Similar to some other studies conducted in Asia, I do not find any association between future Return on Asset and predicted compensation. However, I observe a significant positive correlation between predicted compensation and future Return on Stock in one industry
Keywords:
Ownership Structure ; Corporate Governance ; Corporate Performance ; Board Composition Structure ; Board Directors ; Board Bonus ; Executive Compensation

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