Advertisement

Asia Pacific Journal of Management

, Volume 36, Issue 4, pp 1111–1164 | Cite as

Interactive effects of executive compensation, firm performance and corporate governance: Evidence from an Asian market

  • Omar Al FarooqueEmail author
  • Wonlop Buachoom
  • Nam Hoang
Article

Abstract

Much of the management compensation literature focuses either on the level and structure of executives’ pay or the pay-for-performance sensitivity in a set of corporate governance structure in the Western economies. In this study, we examine the interactive effect of executive compensation, firm performance and corporate governance in different institutional and governance settings of an emerging market economy. Capturing monitoring and incentive alignment aspects as suggested in agency theory, we argue that in a markedly different executive compensation system in Thailand, the interrelationships between executive compensation, firm performance and corporate governance would exhibit some similarities to those found in developed economies. While there remains sparse research on how these relationships operate in Thailand, using data for 432 publicly listed Thai firms between 2000 and 2011, we find evidence of a reciprocal positive significant relationship between compensation and performance, as well as between corporate governance and performance. However, a reciprocal relationship is not found between corporate governance and compensation, which shows a mono-directional positive significant relationship running from corporate governance to compensation. These findings show similarities with those of developed economies and provide support for the need for an effective governance system to determine optimal executive compensation that will enhance firm performance and value. Our findings thus add some potentially noteworthy dimensions to the compensation literature that are especially important to policy makers and other stakeholders, and aiming to shape an optimal governance system in the emerging markets around the world.

Keywords

Executive compensation Firm performance Corporate governance Thailand 

JEL classification

G34 G32 M14 M48 M52 

Notes

References

  1. Abbott, L. J., Park, Y., & Parker, S. 2000. The effects of audit committee activity and independence on corporate fraud. Managerial Finance, 26(11): 55–67.CrossRefGoogle Scholar
  2. Alba, P., Claessens, S., & Djankov, S. 1998. Thailand's corporate financing and governance structures: Impact on firms' competitiveness. Paper presented at the Conference on Thailand's Dynamic Recovery and Competitiveness, Bangkok.Google Scholar
  3. Anderson, D. W., Melanson, S. J., & Maly, J. 2007. The evolution of corporate governance: Power redistribution brings boards to life. Corporate Governance: An International Review, 15(5): 780–797.CrossRefGoogle Scholar
  4. Anderson, R. C., & Bizjak, J. M. 2003. An empirical examination of the role of the CEO and the compensation committee in structuring executive compensation. Journal of Banking & Finance, 27(7): 1323–1348.CrossRefGoogle Scholar
  5. Anderson, R. C., & Reeb, D. M. 2003. Founding-family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58(3): 1301–1328.CrossRefGoogle Scholar
  6. Anderson, R. C., & Reeb, D. M. 2004. Board composition: Balancing family influence in S&P 500 firms. Administrative Science Quarterly, 49(2): 209–237.Google Scholar
  7. Arellano, M., & Bond, S. 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58(2): 277–297.CrossRefGoogle Scholar
  8. Bank of Thailand 2000. Bank of Thailand supervision report. Accessed May 05, 2016.Google Scholar
  9. Barclay, M., & Holderness, C. 1989. Private benefits from control of public corporations. Journal of Financial Economics, 25(2): 371–395.CrossRefGoogle Scholar
  10. Bauguess, S. W., Moeller, S. B., Schlingemann, F. P., & Zutter, C. J. 2009. Ownership structure and target returns. Journal of Corporate Finance, 15(1): 48–65.CrossRefGoogle Scholar
  11. Beasley, M. S., Carcello, J. V., Hermanson, D. R., & Lapides, P. D. 2000. Fraudulent financial reporting: Consideration of industry traits and corporate governance mechanisms. Accounting Horizons, 14(4): 441–454.CrossRefGoogle Scholar
  12. Bhagat, S., & Bolton, B. 2008. Corporate governance and firm performance. Journal of Corporate Finance, 14(3): 257–273.CrossRefGoogle Scholar
  13. Blundell, R., & Bond, S. 1998. Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1): 115–143.CrossRefGoogle Scholar
  14. Bratten, B., Xue, Y., & Yu, Y. 2011. CEO equity incentives, firm performance, and corporate governance. University of Kentucky, George Washington University and University of Texas working paper.Google Scholar
  15. Brenes, E. R., Madrigal, K., & Requena, B. 2011. Corporate governance and family business performance. Journal of Business Research, 64(3): 280–285.CrossRefGoogle Scholar
  16. Brick, I. E., & Chidambaran, N. 2010. Board meetings, committee structure, and firm value. Journal of Corporate Finance, 16(4): 533–553.CrossRefGoogle Scholar
  17. Brown, L. D., & Caylor, M. L. 2006. Corporate governance and firm valuation. Journal of Accounting and Public Policy, 25(4): 409–434.CrossRefGoogle Scholar
  18. Bryan, S., Hwang, L., & Lilien, S. 2000. CEO stock-based compensation: An empirical analysis of incentiveintensity, relative mix and economic determinants. Journal of Business, 73(4): 661–693.CrossRefGoogle Scholar
  19. Buachoom, W. 2017. Simultaneous relationship between performance and executive compensation of Thai non-financial firms. Asian Review of Accounting, 25(3): 404–423.CrossRefGoogle Scholar
  20. Carney, M. 2005. Corporate governance and competitive advantage in family-controlled firms. Entrepreneurship Theory and Practice, 29(3): 249–265.CrossRefGoogle Scholar
  21. Carpenter, M. A., & Sanders, W. M. G. 2002. Top management team compensation: The missing link between CEO compensation and firm performance? Strategic Management Journal, 23(4): 367–375.CrossRefGoogle Scholar
  22. Carpenter, M. A., & Sanders, W. M. G. 2004. The effects of top management team compensation and firm internationalization on MNC performance. Journal of Management, 30(4): 509–528.CrossRefGoogle Scholar
  23. Cheng, S. 2008. Board size and the variability of corporate performance. Journal of Financial Economics, 87(1): 157–176.CrossRefGoogle Scholar
  24. Cheung, Y. L., Connelly, J. T., Jiang, P., & Limpaphayom, P. 2011. Does corporate governance predict future performance? Evidence from Hong Kong. Financial Management, 40(1): 159–197.CrossRefGoogle Scholar
  25. Christensen, J., Kent, P., & Stewart, J. 2010. Corporate governance and company performance in Australia. Australian Accounting Review, 20(4): 372–386.CrossRefGoogle Scholar
  26. Chung, K. H., & Pruitt, S. W. 1996. Executive ownership, corporate value, and executive compensation: A unifying framework. Journal of Banking & Finance, 20(7): 1135–1159.CrossRefGoogle Scholar
  27. Claessens, S., Djankov, S., & Lang, L. H. P. 2000. The separation of ownership and control in east Asian corporations. Journal of Financial Economics, 58(1–2): 81–112.CrossRefGoogle Scholar
  28. Coles, J. L., Daniel, N. D., & Naveen, L. 2008. Boards: Does one size fit all? Journal of Financial Economics, 87(2): 329–356.CrossRefGoogle Scholar
  29. Conheady, B., McIlkenny, P., Opong, K. K., & Pignatel, I. 2015. Board effectiveness and firm performance of Canadian listed firms. British Accounting Review, 47(3): 290–303.CrossRefGoogle Scholar
  30. Connelly, J. T., Limpaphayom, P., & Nagarajan, N. J. 2012. Form versus substance: The effect of ownership structure and corporate governance on firm value in Thailand. Journal of Banking & Finance, 36(6): 1722–1743.CrossRefGoogle Scholar
  31. Conyon, M. J. 2014. Executive compensation and board governance in US firms. The Economic Journal, 124(574): F60–F89.CrossRefGoogle Scholar
  32. Conyon, M. J., & He, L. 2011. Executive compensation and corporate governance in China. Journal of Corporate Finance, 17(4): 1158–1175.CrossRefGoogle Scholar
  33. Conyon, M. J., & He, L. 2012. CEO compensation and corporate governance in China. Corporate Governance: An International Review, 20(6): 575–592.CrossRefGoogle Scholar
  34. Conyon, M. J., & Peck, S. I. 1998. Board control, compensation committees, and top management compensation. Academy of Management Journal, 41(2): 146–157.Google Scholar
  35. Core, J. E., Holthausen, R. W., & Larcker, D. F. 1999. Corporate governance, chief executive officer compensation, and firm performance. Journal of Financial Economics, 51(3): 371–406.CrossRefGoogle Scholar
  36. Cyert, R. M., Sok-Hyon, K., & Kumar, P. 2002. Corporate governance, takeovers, and top-management compensation: Theory and evidence. Management Science, 48(4): 453–469.CrossRefGoogle Scholar
  37. Daily, C. M., Dalton, D. R., & Cannella, A. A. 2003. Corporate governance: Decades of dialogue and data. Academy of Management Review, 28(3): 371–382.CrossRefGoogle Scholar
  38. Dalton, D. R., Daily, C. M., Ellstrand, A. E., & Johnson, J. L. 1998. Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 19(3): 269–290.CrossRefGoogle Scholar
  39. Dalton, D. R., Daily, C. M., Johnson, J. L., & Ellstrand, A. E. 1999. Number of directors and financial performance: A meta-analysis. Academy of Management Journal, 42(6): 674–686.Google Scholar
  40. Davis, J. H., Schoorman, F. D., & Donaldson, L. 1997. Toward a stewardship theory of management. Academy of Management Review, 22(1): 20–47.CrossRefGoogle Scholar
  41. Demsetz, H., & Lehn, K. 1985. The structure of corporate ownership: Causes and consequences. Journal of Political Economy, 93(6): 1155–1177.CrossRefGoogle Scholar
  42. Demsetz, H., & Villalonga, B. 2001. Ownership structure and corporate performance. Journal of Corporate Finance, 7(3): 209–233.CrossRefGoogle Scholar
  43. Denis, D. J., & Sarin, A. 1999. Ownership and board structures in publicly traded corporations. Journal of Financial Economics, 52(2): 187–223.CrossRefGoogle Scholar
  44. Dharwadkar, R., George, G., & Brandes, P. 2000. Privatization in emerging economies: An agency theory perspective. Academy of Management Review, 25(3): 650–669.CrossRefGoogle Scholar
  45. Eisenberg, T., Sundgren, S., & Wells, M. T. 1998. Larger board size and decreasing firm value in small firms1. Journal of Financial Economics, 48(1): 35–54.CrossRefGoogle Scholar
  46. Erah, D. O., Samuel, E., & Izedonmi, F. 2012. Chief executive officer duality and financial performance of firms in Nigeria. International Journal of Business and Social Research, 2(6): 125–134.Google Scholar
  47. Fama, E. F., & Jensen, M. C. 1983. Separation of ownership and control. Journal of Law and Economics, 26(2): 301–325.CrossRefGoogle Scholar
  48. Farmer, M., Archbold, S., & Alexandrou, G. 2013. CEO compensation and relative company performance evaluation UK evidence. Compensation & Benefits Review, 45(2): 88–96.CrossRefGoogle Scholar
  49. Farooque, O. A. 2010. Corporate governance: An emerging market context – Lessons for regulators, policy makers and stakeholders. Germany:LAP AG & Co. KG.Google Scholar
  50. Firth, M., Fung, P. M. Y., & Rui, O. M. 2006. Corporate performance and CEO compensation in China. Journal of Corporate Finance, 12(4): 693–714.CrossRefGoogle Scholar
  51. Flannery, M. J., & Hankins, K. W. 2013. Estimating dynamic panel models in corporate finance. Journal of Corporate Finance, 19(C): 1–19.CrossRefGoogle Scholar
  52. Florackis, C. 2008. Agency costs and corporate governance mechanisms: Evidence for UK firms. International Journal of Managerial Finance, 4(1): 37–59.CrossRefGoogle Scholar
  53. Frydman, C., & Saks, R. E. 2010a. Executive compensation: A new view from long-run perspective. Review of Financial Studies, 23(5): 2099–2138.CrossRefGoogle Scholar
  54. Frydman, C., & Jenter, D. 2010b. CEO compensation. National Bureau of Economic Research Working Paper No. 16585.Google Scholar
  55. Gao, H., & Li, K. 2014. Large shareholders and CEO performance-based pay: New evidence from privately-held firms. https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=AFA2014&paper_id=149, Accessed May 15, 2016.
  56. Gigliotti, M. 2013. The compensation of top managers and the performance of Italian firms. The International Journal of Human Resource Management, 24(4):889–903.Google Scholar
  57. Goergen, M., & Renneboog, L. 2011. Managerial compensation. Journal of Corporate Finance, 17(4): 1068–1077.CrossRefGoogle Scholar
  58. Grundy, B. D., & Li, H. 2010. Investor sentiment, executive compensation, and corporate investment. Journal of Banking & Finance, 34(10): 2439–2449.CrossRefGoogle Scholar
  59. Guest. 2009. The impact of board size on firm performance: Evidence from the UK. The European Journal of Finance, 15(4): 385–404.Google Scholar
  60. Gujarati, D. N. 1995. Basic econometrics. McGraw-Hill Companies.Google Scholar
  61. Hanlon, M., Rajgopal, S., & Shevlin, T. 2003. Are executive stock options associated with future earnings? Journal of Accounting and Economics, 36(1–3): 3–43.CrossRefGoogle Scholar
  62. Hansmann, H., & Kraakman, R. H. 2004. Agency problems and legal strategies. In R. Kraakman, P. Davies, H. Hansmann, G. Hertig, K. Hopt, H. Kanda, & E. Rock (Eds.). The anatomy of corporate law: A comparative and functional approach: 21–31. Oxford University Press.Google Scholar
  63. Henderson, A. D., & Fredrickson, J. W. 2001. Top management team coordination needs and the CEO pay gap: A competitive test of economic and behavioral views. The Academy of Management Journal, 44(1):96–117.Google Scholar
  64. Hermalin, B. E., & Weisbach, M. S. 2001. Boards of directors as an endogenously determined institution: A survey of the economic literature. National Bureau of Economic Research Working Paper Series, No. 8161.Google Scholar
  65. Huang, Y. I., & Chen, C. R. 2010. Simultaneous estimation of executive compensation and firm performance in the banking industry. Advances in Quantitative Analysis of Finance and Accounting, 8: 99–132.Google Scholar
  66. Jensen, M. C. 1998. Self-interest, altruism, incentives, and agency. Foundations of organizational strategy. Cambridge, MA:Harvard University Press.Google Scholar
  67. Jensen, M. C. 2003. A theory of the firm: Governance, residual claims, and organizational forms. Harvard University Press.Google Scholar
  68. Jensen, M. C., & Meckling, W. H. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4): 305–360.CrossRefGoogle Scholar
  69. Jensen, M. C., & Murphy, K. J. 1990. Performance pay and top-management incentives. Journal of Political Economy, 98(2): 225–264.CrossRefGoogle Scholar
  70. Judge, W. Q., Douglas, T. J., & Kutan, A. M. 2008. Institutional antecedents of corporate governance legitimacy. Journal of Management, 34(4): 765–785.CrossRefGoogle Scholar
  71. Kang, Y.-S., & Kim, B.-Y. 2012. Ownership structure and firm performance: Evidence from the Chinese corporate reform. China Economic Review, 23(2): 471–481.CrossRefGoogle Scholar
  72. Kaplan, S. N., & Minton, B. A. 1994. Appointments of outsiders to Japanese boards: Determinants and implications for managers. Journal of Financial Economics, 36(2): 225–258.CrossRefGoogle Scholar
  73. Kato, T., & Long, C. 2006. Executive compensation, firm performance, and corporate governance in China: Evidence from firms listed in the Shanghai and Shenzhen Stock Exchanges. Economic Development and Cultural Change, 54(4): 945–983.CrossRefGoogle Scholar
  74. Kim, K. A., Kitsabunnarat, P., & Nofsinger, J. R. 2004. Ownership and operating performance in an emerging market: Evidence from Thai IPO firms. Journal of Corporate Finance, 10(3): 355–381.CrossRefGoogle Scholar
  75. King, M. R., & Santor, E. 2008. Family values: Ownership structure, performance and capital structure of Canadian firms. Journal of Banking & Finance, 32(11): 2423–2432.CrossRefGoogle Scholar
  76. Klapper, L. F., & Love, I. 2004. Corporate governance, investor protection, and performance in emerging markets. Journal of Corporate Finance, 10(5): 703–728.CrossRefGoogle Scholar
  77. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. 2000. Investor protection and corporate governance. Journal of Financial Economics, 58(1–2): 3–27.CrossRefGoogle Scholar
  78. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. 2002. Investor protection and corporate valuation. Journal of Finance, 57(3): 1147–1170.CrossRefGoogle Scholar
  79. Larmou, S., & Vafeas, N. 2010. The relation between board size and firm performance in firms with a history of poor operating performance. Journal of Management and Governance, 14(1): 61–85.CrossRefGoogle Scholar
  80. Lee, K. W., Lev, B., & Yeo, G. H. H. 2008. Executive compensation dispersion, corporate governance, and firm performance. Review of Quantitative Finance and Accounting, 30(3): 315–338.CrossRefGoogle Scholar
  81. Lei, A. C., & Song, F. M. 2012. Board structure, corporate governance and firm value: Evidence from Hong Kong. Applied Financial Economics, 22(15): 1289–1303.CrossRefGoogle Scholar
  82. Limpaphayom, P., & Connelly, J. T. 2004. Corporate governance in Thailand. Working Paper. Asian Development Bank Institute. Retrieved from  https://doi.org/10.2139/ssrn.965300. Accessed September 6, 2018.
  83. Liu, H., Wang, H., & Wu, L. 2016. Removing vacant chairs: Does independent directors’ attendance at board meetings matter? Journal of Business Ethics, 133(2): 375–393.CrossRefGoogle Scholar
  84. Liu, Y., Miletkov, M. K., Wei, Z., & Yang, T. 2015. Board independence and firm performance in China. Journal of Corporate Finance, 30(C): 223–244.CrossRefGoogle Scholar
  85. Luo, Y., & Jackson, D. 2012. Executive compensation, ownership structure and firm performance in Chinese financial corporations. Global Business and Finance Review, 17(1): 56–74.Google Scholar
  86. Macey, J. R., & O'Hara, M. 2003. The corporate governance of banks. Economic Policy Review, 9(1): 91–107.Google Scholar
  87. Mak, Y. T., & Li, Y. 2001. Determinants of corporate ownership and board structure: Evidence from Singapore. Journal of Corporate Finance, 7(3): 235–256.CrossRefGoogle Scholar
  88. Martin, G. P., Wiseman, R. M., & Gomez-Mejia, L. R. 2016. The interactive effect of monitoring and incentive alignment on agency costs. Journal of Management.  https://doi.org/10.1177/0149206316678453.
  89. Martínez, J. I., Stöhr, B. S., & Quiroga, B. F. 2007. Family ownership and firm performance: Evidence from public companies in Chile. Family Business Review, 20(2): 83–94.CrossRefGoogle Scholar
  90. Meeamol, S., Rodpetch, V., Rueangsuwan, S., & Lin, B. 2011. Measuring the firm's financial value: Interrelationship with the board structure. International Journal of Performance Measurement, 1(1): 59–78.Google Scholar
  91. Mehran, H. 1995. Executive compensation structure, ownership, and firm performance. Journal of Financial Economics, 38(2): 163–184.CrossRefGoogle Scholar
  92. Murphy, K. 1999. Executive compensation. In O. Ashenfleter, & D. Cards (Eds.). Handbook of labor economics: 2485–2563. Amsterdam, Holland: Elsevier Science North.Google Scholar
  93. Nam, S. W., & Nam, I. C. 2004. Corporate governance in Asia: Recent evidence from Indonesia, Republic of Korea, Malaysia, and Thailand. Asian Development Bank Institute.Google Scholar
  94. National Corporate Governance Committee. 2012. Appointment of National Corporate Governance Committee, Bangkok, Thailand. Retrieved from www.egthailand.org, Accessed September 17, 2018.
  95. Nelson, J. 2005. Corporate governance practices, CEO characteristics and firm performance. Journal of Corporate Finance, 11(1–2): 197–228.CrossRefGoogle Scholar
  96. Ntim, C. G., Lindop, S., Osei, K. A., & Thomas, D. A. 2015. Executive compensation, corporate governance and corporate performance: A simultaneous equation approach. Managerial and Decision Economics, 36(2): 67–96.CrossRefGoogle Scholar
  97. O’Connell, V., & Cramer, N. 2010. The relationship between firm performance and board characteristics in Ireland. European Management Journal, 28(5): 387–399.CrossRefGoogle Scholar
  98. Ozkan, N. 2011. CEO compensation and firm performance: An empirical investigation of UK panel data. European Financial Management, 17(2): 260–285.CrossRefGoogle Scholar
  99. Pathan, S., & Faff, R. 2013. Does board structure in banks really affect their performance? Journal of Banking & Finance, 37(5): 1573–1589.CrossRefGoogle Scholar
  100. Peng, M., Au, K., & Wang, D. 2001. Interlocking directorates as corporate governance in Third World multinationals: Theory and evidence from Thailand. Asia Pacific Journal of Management, 18(2): 161–181.CrossRefGoogle Scholar
  101. Pepper, A., Gore, J., & Crossman, A. 2013. Are long-term incentive plans an effective and efficient way of motivating senior executives? Human Resource Management Journal, 23(1): 36–51.CrossRefGoogle Scholar
  102. Puffer, S. M., & Weintrop, J. B. 1991. Corporate performance and CEO turnover: The role of performance expectations. Administrative Science Quarterly, 36(1): 1–19.CrossRefGoogle Scholar
  103. Raithatha, M., & Komera, S. 2016. Executive compensation and firm performance: Evidence from Indian firms. IIMB Management Review, 28(3): 160–169.CrossRefGoogle Scholar
  104. Ramaswamy, K., Li, M. F., & Veliyath, R. 2002. Variations in ownership behavior and propensity to diversify: A study of the Indian corporate context. Strategic Management Journal, 23(4): 345–358.CrossRefGoogle Scholar
  105. Ramdani, D., & Witteloostuijn, A. V. 2010. The impact of board independence and CEO duality on firm performance: A quantile regression analysis for Indonesia, Malaysia, South Korea and Thailand. British Journal of Management, 21(3): 607–627.CrossRefGoogle Scholar
  106. Rashid, A. 2013. Corporate governance, executive compensation and firm performance: Evidence from Bangladesh. International Journal of Management, 30(2): 556–575.Google Scholar
  107. Reddy, K., Abidin, S., & You, L. 2015. Does corporate governance matter in determining CEO compensation in the publicly listed companies in New Zealand? An empirical investigation. Managerial Finance, 41(3): 301–327.CrossRefGoogle Scholar
  108. Romano, G., Ferretti, P., & Rigolini, A. 2012. Corporate governance and performance in Italian banking groups. Paper presented at the International Conference “Corporate Governance and Regulation: Outlining New Horizons for Theory and Practice”.Google Scholar
  109. Roodman, D. 2009. How to do xtabond2: An introduction to difference and system GMM in Stata. Stata Journal, 9(1): 86.CrossRefGoogle Scholar
  110. Ryan, H. E., & Wiggins III, R. A. 2004. Who is in whose pocket? Director compensation, board independence, and barriers to effective monitoring. Journal of Financial Economics, 73(3): 497–524.CrossRefGoogle Scholar
  111. Sami, H., Wang, J., & Zhou, H. 2011. Corporate governance and operating performance of Chinese listed firms. Journal of International Accounting, Auditing and Taxation, 20(2): 106–114.CrossRefGoogle Scholar
  112. Sanchez-Marin, G., & Baixauli-Soler, J. S. 2014. CEO reputation and top management team compensation. Management Decision, 52(3): 540–558.CrossRefGoogle Scholar
  113. Sapp, S. G. 2008. The impact of corporate governance on executive compensation. European Financial Management, 14(4): 710–746.CrossRefGoogle Scholar
  114. Scholtz, H., & Smit, A. 2013. Executive compensation and company performance for South African companies listed on the Alternative Exchange (AltX). Southern African Business Review, 16(1): 22–38.Google Scholar
  115. Schultz, E., Tian, G. Y., & Twite, G. 2013. Corporate governance and the CEO compensation–performance link: Australian evidence. International Review of Finance, 13(4): 447–472.CrossRefGoogle Scholar
  116. Shleifer, A., & Vishny, R. W. 1997. A survey of corporate governance. Journal of Finance, 52(2): 737–783.CrossRefGoogle Scholar
  117. Shleifer, A., & Vishny, R. W. 1986. Large shareholders and corporate control. Journal of Political Economy, 94(3): 461–488.Google Scholar
  118. Sigler, K. J. 2011. CEO compensation and company performance. Business and Economic Journal, 31: 1–8.Google Scholar
  119. Singh, D. A., & Delios, A. 2017. Corporate governance, board networks and growth in domestic and international markets: Evidence from India. Journal of World Business, 52(5): 615–627.CrossRefGoogle Scholar
  120. Singh, D. A., & Gaur, A. S. 2009. Business group affiliation, firm governance, and firm performance: Evidence from China and India. Corporate Governance: An International Review, 17(4): 411–425.CrossRefGoogle Scholar
  121. Smirnova, A. S., & Zavertiaeva, M. A. 2017. Which came first, CEO compensation or firm performance? The causality dilemma in European companies. Research in International Business and Finance, 42(C): 658–673.CrossRefGoogle Scholar
  122. Swatdikun, T. 2013a. Executive pay-performance sensitivity and its consequesnces: Empirical evidence on the role of ownership in Thailand. Doctor of Philosophy Thesis, University of Southampton.Google Scholar
  123. Swatdikun, T. 2013b. Is there a substitute cost from control to coordination? The effect of ownership structure on executive pay. Paper presented at the British Academy of Management conference.Google Scholar
  124. Sun, J., Cahan, S. F., & Emanuel, D. 2009. Compensation committee governance quality, chief executive officer stock option grants, and future firm performance. Journal of Banking & Finance, 33(8): 1507–1519.CrossRefGoogle Scholar
  125. Thai Institute of Directors. 2012. Corporate governance report of Thai listed companies 2012. Retrieved from http://www.thai-iod.com/imgUpload/file/CGR%202012/report%202013_250656%20Final.pdf, Accessed June 15, 2016.
  126. The Stock Exchange of Thailand (SET) 2006. The principles of good corporate governance for listed companies. Bangkok:Corporate Governance Center.Google Scholar
  127. The Stock Exchange of Thailand (SET) 2008. Listing manual for common shares. Bangkok:Issuer Marketing Department.Google Scholar
  128. Tornyeva, K., & Wereko, T. 2012. Corporate governance and firm performance: Evidence from the insurance sector of Ghana. European Journal of Business and Management, 4(13): 95–112.Google Scholar
  129. Valenti, M. A., Luce, R., & Mayfield, C. 2011. The effects of firm performance on corporate governance. Management Research Review, 34(3): 266–283.CrossRefGoogle Scholar
  130. Velnampy, T. 2013. Corporate governance and firm performance: A study of Sri Lankan manufacturing companies. Journal of Economics and Sustainable Development, 4(3): 228–235.Google Scholar
  131. Villalonga, B., & Amit, R. 2006. How do family ownership, control and management affect firm value? Journal of Financial Economics, 80(2): 385–417.CrossRefGoogle Scholar
  132. Weisbach, M. S. 1988. Outside directors and CEO turnover. Journal of Financial Economics, 20(1–2): 431–460.CrossRefGoogle Scholar
  133. Wintoki, M. B. 2007. Corporate boards and regulation: The effect of the Sarbanes-Oxley Act and the exchange listing requirements on firm value. Journal of Corporate Finance, 13(2–3): 229–250.CrossRefGoogle Scholar
  134. Wintoki, M. B., Linck, J. S., & Netter, J. M. 2012. Endogeneity and the dynamics of internal corporate governance. Journal of Financial Economics, 105(3): 581–606.CrossRefGoogle Scholar
  135. Wiwattanakantang, Y. 2001. Controlling shareholders and corporate value: Evidence from Thailand. Pacific-Basin Finance Journal, 9(4): 323–362.CrossRefGoogle Scholar
  136. Wooldridge, J. M. 2002. Econometric analysis of cross section and panel data. MIT Press.Google Scholar
  137. World Bank. 2013a. Thailand overview. Retrieved from http://www.worldbank.org/en/country/thailand/overview, Accessed June 15, 2016.
  138. World Bank. 2013b. World development indicators: Thailand. http://api.worldbank.org/datafiles/THA_Country_MetaData_en_EXCEL.xls, Accessed June 15, 2016.
  139. Xu, X., & Wang, Y. 1999. Ownership structure and corporate governance in Chinese stock companies. China Economic Review, 10(1): 75–98.CrossRefGoogle Scholar
  140. Yammeesri, J., & Herath, S. K. 2010. Board characteristics and corporate value: Evidence from Thailand. Corporate Governance, 10(3): 279–292.CrossRefGoogle Scholar
  141. Zhuang, J., Edwards, D., Webb, D., & Capulong, M. V. 2000. Corporate governance and finance in East Asia. Manila:Asian Development Bank.Google Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.UNE Business SchoolUniversity of New EnglandArmidaleAustralia
  2. 2.Faculty of AccountancyRangsit UniversityPathum ThaniThailand

Personalised recommendations