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Executive pay and firm performance in the Philippines

Author

Listed:
  • Unite, Angelo A.
  • Sullivan, Michael J.
  • Brookman, Jeffrey
  • Majadillas, Mary Anne
  • Taningco, Angelo

Abstract

This paper provides the first systematic evidence on the nature of the relation between executive compensation and firm performance in the Philippines. Comparable to studies of Japan, Korea, and China, we find a positive relation between executive compensation and performance in the Philippines for those firms not affiliated to a corporate group, but that this relation does not hold for affiliated firms. We conclude that the substantial portion of the Philippine economy that is under the control of group networks incentivize managers in ways other than through use of pay-performance schemes.

Suggested Citation

  • Unite, Angelo A. & Sullivan, Michael J. & Brookman, Jeffrey & Majadillas, Mary Anne & Taningco, Angelo, 2008. "Executive pay and firm performance in the Philippines," Pacific-Basin Finance Journal, Elsevier, vol. 16(5), pages 606-623, November.
  • Handle: RePEc:eee:pacfin:v:16:y:2008:i:5:p:606-623
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    References listed on IDEAS

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    Cited by:

    1. Kuo, Hsien-Chang & Lin, Dan & Lien, Donald & Wang, Lie-Huey & Yeh, Li-Jen, 2014. "Is there an inverse U-shaped relationship between pay and performance?," The North American Journal of Economics and Finance, Elsevier, vol. 28(C), pages 347-357.
    2. Hearn, Bruce, 2013. "The determinants of director remuneration, executive tenure and individual executive disclosure in North African IPO firms," Research in International Business and Finance, Elsevier, vol. 27(1), pages 162-182.
    3. Hearn, Bruce, 2013. "The impact of board governance on director compensation in West African IPO firms," Research in International Business and Finance, Elsevier, vol. 28(C), pages 82-104.
    4. Intan Oviantari Author_Email: ioviantari@yahoo.com, 2011. "Directors And Commissioners Remuneration And Firm Performance: Indonesian Evidence," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-287, Conference Master Resources.
    5. Chengedzai Mafini, 2016. "Constraints to Strategy Implementation and their Influence on Business Performance: the Case of a Waste Management Logistics Company," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 51-71, August.
    6. repec:eee:pacfin:v:43:y:2017:i:c:p:72-83 is not listed on IDEAS
    7. Duong, Lien & Evans, John, 2015. "CFO compensation: Evidence from Australia," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 425-443.
    8. repec:bla:afrdev:v:29:y:2017:i:3:p:429-445 is not listed on IDEAS

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