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Relationship between Corporate Governance and CEO Compensation among Listed Firms in Tehran Stock Exchange

Author

Listed:
  • Mahroo Irani

    (Department of Accounting, Gorgan Branch, Islamic Azad University, Gorgan, Iran,)

  • Mahroo Irani

    (Department of Accounting, Glestan science and research Branch, Islamic Azad University, Gorgan, Iran,)

  • Mehdi Safari Gerayeli

    (Department of Accounting, Bandargaz Branch, Islamic Azad University, Bandargaz, Iran.)

Abstract

This study aims to investigate the relationship between corporate governance and executives' compensation. This is semi-empirical study and statistical sample of research was 95 companies listed in Tehran stock exchange from 2010 to 2014. Variables ratio of non-executive board members, dichotomy of managing director responsibility, ownership of institutional shareholders and managerial ownership were considered as independent variables. Factors influencing executives' compensation were considered and the relationship between these variables was studied using multivariate regression. Findings show that there is significant relationship between duty of managing director, ownership of institutional investors and managerial ownership. However, there was no evidence for significant relationship between ratios of non-executive board members with executives' compensation.

Suggested Citation

  • Mahroo Irani & Mahroo Irani & Mehdi Safari Gerayeli, 2017. "Relationship between Corporate Governance and CEO Compensation among Listed Firms in Tehran Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 285-292.
    • Handle: RePEc:eco:journ1:2017-01-37
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    References listed on IDEAS

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    More about this item

    Keywords

    Executives' Compensation; Ratio of Non-executive Board Members; Dichotomy of Managing Director Responsibility; Ownership of Institutional Investors; Managerial Ownership;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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