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Ownership, board compensation and company performance in sub-Saharan African countries

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  • Gibson Hosea Munisi
  • Roy Mersland

Abstract

In countries with weak institutions board governance becomes more important. This study uses a unique dataset from listed Sub-Saharan African companies to examine the relationship between ownership composition and board compensation. It further analyses the association between board compensation and company performance. The findings indicate that board ownership and CEO ownership are positively associated while state ownership and concentrated ownership are negatively associated with board compensation. There is no evidence of a significant association between chairperson ownership or foreign ownership and board compensation. Finally, there is a negative but not significantly relationship between board compensation and company performance.

Suggested Citation

  • Gibson Hosea Munisi & Roy Mersland, 2013. "Ownership, board compensation and company performance in sub-Saharan African countries," Working Papers CEB 13-041, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/151414
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    Cited by:

    1. Arindam Banik & Chanchal Chatterjee, 2021. "Ownership Pattern and Governance–Performance Relation: Evidence from an Emerging Economy," Global Business Review, International Management Institute, vol. 22(2), pages 422-441, April.
    2. Chen, Zonghao & Keefe, Michael O’Connor, 2018. "Board of director compensation in China: To pay or not to pay? How much to pay?," Emerging Markets Review, Elsevier, vol. 37(C), pages 66-82.

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    More about this item

    Keywords

    Boards of Directors; Ownership Structure; Board Compensation; Corporate Governance; Company Performance; Sub-Saharan Africa; Weak Institutions;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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