Header menu link for other important links
Executive compensation and firm performance: Evidence from Indian firms
Published in Elsevier
Volume: 28
Issue: 3
Pages: 160 - 169

The study examines the relationship between executive compensation and firm performance among Indian firms. The evidence suggests that firm performance measured by accounting, as well as market-based measures, significantly affects executive compensation. We also test for the presence of persistence in executive compensation by employing the system-generalised methods of moments (GMM) estimator. We find significant persistence in executive compensation among the sample firms. Further, we report the absence of pay–performance relationship among the smaller sample firms and business group affiliated firms. Thus, our findings cast doubts over the performance-based executive compensation practices of Indian business group affiliated firms.

About the journal
JournalData powered by TypesetIIMB Management Review
PublisherData powered by TypesetElsevier
Open AccessYes