Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies
Autor(a) principal: | |
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Data de Publicação: | 2018 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/16958 |
Resumo: | The modernization of corporate governance aims the alignment of the interests of managers with those of companies, promoting a new discipline of internal controls and risk analysis with an enforcement of shareholder rights of information. This research investigates the impact of corporate governance variables –ownership, board of directors and remuneration committee– on executive compensation. A balanced sample of 52 Italian listed companies has been adopted to test the hypotheses, covering 55.98% and 47.13% of market capitalization in 2011 and 2015 respectively and including 669 board members. Theoretical models evidence a certain stability of compensation schemes for Italian managers over time. Findings suggest that there is a statistically significant positive effect of familiar ownership on the amount of compensation. Along with nature of ownership, the number of directors in the remuneration committee appointed by minorities assume a determinant role. With statistical significance, it affects negatively the compensation level, but, contrarily to best practices, it affects negatively the adoption of forms of incentive compensation. |
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Relationship between top executive compensation and corporate governance: evidence from large Italian listed companiesExecutive compensationCorporate governanceRemuneration committeeFamily firmsItalyThe modernization of corporate governance aims the alignment of the interests of managers with those of companies, promoting a new discipline of internal controls and risk analysis with an enforcement of shareholder rights of information. This research investigates the impact of corporate governance variables –ownership, board of directors and remuneration committee– on executive compensation. A balanced sample of 52 Italian listed companies has been adopted to test the hypotheses, covering 55.98% and 47.13% of market capitalization in 2011 and 2015 respectively and including 669 board members. Theoretical models evidence a certain stability of compensation schemes for Italian managers over time. Findings suggest that there is a statistically significant positive effect of familiar ownership on the amount of compensation. Along with nature of ownership, the number of directors in the remuneration committee appointed by minorities assume a determinant role. With statistical significance, it affects negatively the compensation level, but, contrarily to best practices, it affects negatively the adoption of forms of incentive compensation.Springer/Palgrave Macmillan2018-12-13T17:47:17Z2019-12-13T00:00:00Z2018-01-01T00:00:00Z20182018-12-13T17:45:32Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/16958eng1741-359110.1057/s41310-018-0050-2Nannicini, A.Ferraz, D. P.Lopes, I. T.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:45:43Zoai:repositorio.iscte-iul.pt:10071/16958Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:21:53.627913Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies |
title |
Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies |
spellingShingle |
Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies Nannicini, A. Executive compensation Corporate governance Remuneration committee Family firms Italy |
title_short |
Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies |
title_full |
Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies |
title_fullStr |
Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies |
title_full_unstemmed |
Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies |
title_sort |
Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies |
author |
Nannicini, A. |
author_facet |
Nannicini, A. Ferraz, D. P. Lopes, I. T. |
author_role |
author |
author2 |
Ferraz, D. P. Lopes, I. T. |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Nannicini, A. Ferraz, D. P. Lopes, I. T. |
dc.subject.por.fl_str_mv |
Executive compensation Corporate governance Remuneration committee Family firms Italy |
topic |
Executive compensation Corporate governance Remuneration committee Family firms Italy |
description |
The modernization of corporate governance aims the alignment of the interests of managers with those of companies, promoting a new discipline of internal controls and risk analysis with an enforcement of shareholder rights of information. This research investigates the impact of corporate governance variables –ownership, board of directors and remuneration committee– on executive compensation. A balanced sample of 52 Italian listed companies has been adopted to test the hypotheses, covering 55.98% and 47.13% of market capitalization in 2011 and 2015 respectively and including 669 board members. Theoretical models evidence a certain stability of compensation schemes for Italian managers over time. Findings suggest that there is a statistically significant positive effect of familiar ownership on the amount of compensation. Along with nature of ownership, the number of directors in the remuneration committee appointed by minorities assume a determinant role. With statistical significance, it affects negatively the compensation level, but, contrarily to best practices, it affects negatively the adoption of forms of incentive compensation. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-12-13T17:47:17Z 2018-01-01T00:00:00Z 2018 2018-12-13T17:45:32Z 2019-12-13T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/16958 |
url |
http://hdl.handle.net/10071/16958 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
1741-3591 10.1057/s41310-018-0050-2 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Springer/Palgrave Macmillan |
publisher.none.fl_str_mv |
Springer/Palgrave Macmillan |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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|
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1799134779883388928 |