The determinants of director remuneration, executive tenure and individual executive disclosure in North African IPO firms
The determinants of director remuneration, executive tenure and individual executive disclosure in North African IPO firms
This paper examines the impact of board governance mechanisms, namely board size, independence ratio, opacity of earnings disclosure, and ratio of genuinely independent nonexecutive directors to total board size on director remuneration, executive tenure and likelihood of individual executive salary disclosure in a unique and comprehensive sample of 69 North African IPO firms. I find evidence of the enhanced governance role of true independent nonexecutives in family as opposed to non-family firms in improving disclosure of individual salaries and moderating lengths of executive tenure. However while their role is only significant in the context of family firms the evidence suggests that their presence is associated with higher levels of remuneration. The evidence also ascribes a greater role for business angel as opposed to more formal private equity financing which is more applicable within the highly social networked economy of the Maghreb region.
Board of directors, Institutional theory, IPO, Remuneration
162-182
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
January 2013
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
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, 27 (1), .
(doi:10.1016/j.ribaf.2011.11.002).
Abstract
This paper examines the impact of board governance mechanisms, namely board size, independence ratio, opacity of earnings disclosure, and ratio of genuinely independent nonexecutive directors to total board size on director remuneration, executive tenure and likelihood of individual executive salary disclosure in a unique and comprehensive sample of 69 North African IPO firms. I find evidence of the enhanced governance role of true independent nonexecutives in family as opposed to non-family firms in improving disclosure of individual salaries and moderating lengths of executive tenure. However while their role is only significant in the context of family firms the evidence suggests that their presence is associated with higher levels of remuneration. The evidence also ascribes a greater role for business angel as opposed to more formal private equity financing which is more applicable within the highly social networked economy of the Maghreb region.
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Accepted/In Press date: 14 November 2011
e-pub ahead of print date: 22 November 2011
Published date: January 2013
Keywords:
Board of directors, Institutional theory, IPO, Remuneration
Identifiers
Local EPrints ID: 423330
URI: http://eprints.soton.ac.uk/id/eprint/423330
ISSN: 0275-5319
PURE UUID: 447b4f51-619e-4c23-a4c6-41101d17b9f4
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Date deposited: 20 Sep 2018 16:30
Last modified: 16 Mar 2024 04:37
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