Nexus between Managerial Compensation and Financial Performance, Size of the Firm & Risk of Indian Manufacturing Companies: A Study on Automobile Companies
Journal Title: Journal of Social Welfare and Management - Year 2019, Vol 11, Issue 2
Abstract
In India the issue of managerial compensation has been seen with greater importance since the start of liberalisation, privatization and globalisation. More specifically, after the collapse of some renowned large companies namely, Satyam Computers, Enron, Tyco, WorldCom etc., the issue on managerial compensation has come to the centre of debate. Top executives of those companies were granted Employee Stock Option Plan as a regular practice evenwhen the company were making huge losses. As a result, top executives were made huge oney depriving the shareholders. Top executives also used company’s fund for personal use and shareholders, the real owners of the funds were deprived. In this context, we have made an attempt to explore the interrelationships between managerial compensation, firm performance and firm characteristics parameters by studying some selected Indian automobile companies. A linear regression model that captures ompensation data along with key financial performance and corporate characteristics parameters are used to explain the determinants of managerial compensation. It is found that return on capital employed, market capitalisation, firm size and debt equity are the significant determinants of managerial compensation.
Authors and Affiliations
Brajaballav Pal
Keywords
Related Articles
- EP ID EP654978
- DOI 10.21088/jswm.0975.0231.11219.1
- Views 75
- Downloads 0
Coping with Spousal Suicide’: A Sociological Study of Widows of Farmers’ Suicides in Ananthapuramu Dist
The growing incidence of farmers all over the country has shattered the farmers’ households. Piled up debt, erratic and insufficient monsoon burden of the family, farming have fallen on the shoulders of the widows of far...
Relationship between Self Concept and Adjustment Level among B.Sc. Nursing Students in SRM College of Nursing, SRM University
Adolescence is a dynamic period of growth and development that bridges childhood to adulthood while being distinctively different from both groups. Adolescence is characterized by many interrelated change of body mind an...
Assess the Occupational Stress and Coping Strategies among Staff Nurses Working in SRM Hospital
Nursing is a stressful profession. Caring for clients, individuals, families, groups, populations or entire communities, with multiple, complex and distressing problems can be overwhelming for even the most experienced p...
Dragon' vs 'Elephant': The Battle of Economic Supremacy
An effort is made in this article to compare the economies of two Asian giants, India and China. While China is world’s second largest economy, India also appears to be a promising endeavor. The recent growth in the GDP...
Trend and Growth of Export from Medicinal Plants and Aswahagandha in India
Medicinal plants defend the means of support of millions of people, predominantly in the Indian Himalayan region. The present paper deals with the trend and growth of export earnings from medicinal plants and aswahagandh...