Yıl 2018, Cilt 10, Sayı 19, Sayfalar 231 - 242 2018-07-01

EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY

Levent ÜNAL [1] , Aslı AYBARS [2]

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Shareholders delegate daily operation to their agents with the assumption that they would work totally for their benefit. However, individual efforts of agents are not directly observable by the principal (shareholders). To align the interests of agents and those of shareholders, compensation schemes are based on either market or accounting measures (or a combination of the two). This paper, using longitudinal data of 151 listed Turkish firms over the years of 2006 to 2015, found that total compensation amount paid to executives and directors is sensitive to both accounting and market measures. It is revealed that current year net profit and lagged total shareholder value created played important role in the determination of compensation level of executives. The estimations revealed that TL 10,000 return provided to shareholders in the previous year caused TL 5 increase in executives’ total compensation, whereas TL 2 of TL 1000 current year net profit of the firms is given to the executives. It is believed that compensation contracts which are sharing only a fraction of created shareholder value with the agent cannot align the interests of both parties and fully mitigate the agency problem.

Compensation, Agency theory, Performance measures
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Yazar: Levent ÜNAL

Yazar: Aslı AYBARS

Bibtex @araştırma makalesi { marufacd502127, journal = {Finansal Araştırmalar ve Çalışmalar Dergisi}, issn = {1309-1123}, eissn = {2529-0029}, address = {Marmara Üniversitesi}, year = {2018}, volume = {10}, pages = {231 - 242}, doi = {10.14784/marufacd.502127}, title = {EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY}, key = {cite}, author = {ÜNAL, Levent and AYBARS, Aslı} }
APA ÜNAL, L , AYBARS, A . (2018). EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY. Finansal Araştırmalar ve Çalışmalar Dergisi, 10 (19), 231-242. DOI: 10.14784/marufacd.502127
MLA ÜNAL, L , AYBARS, A . "EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY". Finansal Araştırmalar ve Çalışmalar Dergisi 10 (2018): 231-242 <http://dergipark.gov.tr/marufacd/issue/41553/502127>
Chicago ÜNAL, L , AYBARS, A . "EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY". Finansal Araştırmalar ve Çalışmalar Dergisi 10 (2018): 231-242
RIS TY - JOUR T1 - EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY AU - Levent ÜNAL , Aslı AYBARS Y1 - 2018 PY - 2018 N1 - doi: 10.14784/marufacd.502127 DO - 10.14784/marufacd.502127 T2 - Finansal Araştırmalar ve Çalışmalar Dergisi JF - Journal JO - JOR SP - 231 EP - 242 VL - 10 IS - 19 SN - 1309-1123-2529-0029 M3 - doi: 10.14784/marufacd.502127 UR - http://dx.doi.org/10.14784/marufacd.502127 Y2 - 2019 ER -
EndNote %0 Finansal Araştırmalar ve Çalışmalar Dergisi EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY %A Levent ÜNAL , Aslı AYBARS %T EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY %D 2018 %J Finansal Araştırmalar ve Çalışmalar Dergisi %P 1309-1123-2529-0029 %V 10 %N 19 %R doi: 10.14784/marufacd.502127 %U 10.14784/marufacd.502127
ISNAD ÜNAL, Levent , AYBARS, Aslı . "EXECUTIVE COMPENSATION AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY". Finansal Araştırmalar ve Çalışmalar Dergisi 10 / 19 (Temmuz 2018): 231-242. http://dx.doi.org/10.14784/marufacd.502127