ebook Executive remuneration and corporate performance Evidence from the Warsaw Stock Exchange companies Michał Bartłomiejczyk

Spis treści ebooka Executive remuneration and corporate performance

Acknowledgments 9
Introduction 11
1. Corporate governance and compensation theory 17
1.1. Introduction 17
1.2. Definition of corporate governance 17
1.3. Compensation theory 22
1.3.1. Reinforcement and expectancy theories 22
1.3.2. Equity theories 25
1.3.3. Agency theory 28
1.3.4. Transaction cost theory and incomplete contracts theory 34
1.3.5. Resource dependency theory 36
1.3.6. Compensation theory summarised 38
1.4. Corporate governance models 39
1.4.1. Simple financial model 39
1.4.2. Stewardship model 40
1.4.3. Stakeholder model 42
1.4.4. Political model 44
1.4.5. Corporate governance models summarised 46
1.5. Control mechanisms 46
1.5.1. Internal control mechanisms 47
1.5.2. External control mechanisms 52
1.5.3. Motivational mechanisms 56
1.6. Conclusions 56
2. Corporate governance and executive remuneration:An international comparison 59
2.1. Introduction 59
2.2. Corporate governance models across selected countries 59
2.2.1. Geographical taxonomy of corporate governance models 59
2.2.2. Corporate governance in the United States 61
2.2.3. Corporate governance in the United Kingdom 64
2.2.4. Corporate governance in Germany 66
2.2.5. Corporate governance in Poland 69
2.3. Executive remuneration across selected countries 72
2.3.1. Components of executive remuneration 72
2.3.2. Executive remuneration in the United States 74
2.3.3. Executive remuneration in the European Union 85
2.3.4. Executive remuneration in Poland 95
2.4. Conclusions 100
3. Corporate performance and executive remuneration 101
3.1. Introduction 101
3.2. Factors of corporate performance 101
3.2.1. Defining performance 103
3.2.2. Internal performance factors 105
3.2.3. External performance factors 112
3.3. Determinants of executive remuneration 114
3.3.1. The significance of determinants of executive remuneration 114
3.3.2. Managerial labour market as a determinant of executive remuneration 115
3.3.3. The role of the board of directors in executive remuneration 117
3.3.4. Sales, profits, and total assets as determinants of executive remuneration 119
3.3.5. Other determinants of executive remuneration 122
3.4. The influence of executive compensation on performance 123
3.5. Conclusions 144
4. The influence of CEO compensation on performance of companies listed on the Warsaw Stock Exchange 145
4.1. Introduction 145
4.2. Hypothesis development 145
4.3. Data Analysis 147
4.3.1. Sources of Data 147
4.3.2. Scope of data sample 151
4.3.3. The breakdown of CEO remuneration 152
4.4. Research method 161
4.4.1. Tools used 161
4.4.2. Variables 161
4.5. Descriptive statistics 173
4.6. Model 176
4.7. Assessment of the quality of the model 176
4.8. Results 178
4.9. Discussion 181
Conclusions 183
Bibliography 187
List of tables 197
List of figures 199
List of equations 201
List of abbreviations 203
Tools used 205
Appendices 211
Appendix I: Regression results for t for 2011–2015 211
Model Summary 211
Coefficients 212
Correlations with unstandardised residual 214
Appendix II: Regression results for t+1 for 2011–2015 216
Model Summary 216
Coefficients 216
Correlations with unstandardised residual 218
Appendix III: Regression results for t+2 for 2011–2015 220
Model Summary 220
Coefficients 220
Correlations with unstandardised residual 222
Appendix IV: Regression results for sample with state-owned companies excluded, 2011–2015 224
Model Summary 224
Coefficients 224
Correlations with unstandardised residual 226
List of excluded companies 228