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Title: Corporate governance and CEO compensation in Indian firms
Authors: Jaiswall, Sudhir Shiv Kumar
Bhattacharyya, Asish Kumar
Keywords: Board
CEO compensation
Corporate governance
Ownership structure
Public and private sectors
Issue Date: 2016
Publisher: SCOPUS
Journal of Contemporary Accounting and Economics
Elsevier Ltd
Series/Report no.: 12(2)
Abstract: We examine the role of the board, ownership, and CEO characteristics in CEO compensation in Indian firms. Contrary to the evidence documented in prior studies, we find that CEO compensation is not associated with board characteristics. Instead, compensation is associated with firm's ownership attributes and its CEO's tenure. We also document that leaving out CEO fixed effects in a longitudinal compensation study can lead to potentially erroneous conclusions about the role of several governance attributes in CEO compensation contracting. Finally, we find that CEO compensation attributed to ownership characteristics in the private sector is positively related to future firm performance, whereas remuneration attributed to board and CEO characteristics in both private and public sectors are not. Our evidence is consistent with efficient CEO compensation contracting, rather than CEO rent extraction, in Indian firms. � 2016 Elsevier Ltd.
Description: Jaiswall, Sudhir Shiv Kumar, University of Calcutta, Kolkata, West Bengal, India, Finance and Control Group, Indian Institute of Management Calcutta, Kolkata, West Bengal, India; Bhattacharyya, Asish Kumar, School of Corporate Governance and Public Policy, Indian Institute of Corporate Affairs, Manesar, Haryana, Gurgaon, India
ISSN/ISBN - 18155669
DOI - 10.1016/j.jcae.2016.06.001
Appears in Collections:Finance and Control

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