The impact of board governance on director compensation in West African IPO firms
The impact of board governance on director compensation in West African IPO firms
This paper undertakes a unique study of the determinants of corporate governance in the West African developing region and their impact on director compensation. A new measure of director total remuneration is constructed providing a conservative estimate of expropriation of private benefits of control. Using a hand-collected sample of 51 West African IPO firms from 2000 to 2011 we find evidence that increased presence of true independent nonexecutives that are unconnected to CEO or dominant insider groups within firm and nominally independent board level committees are highly associated with expropriation inferring that firm's with directors engaging in this behaviour are more likely to adopt measures indicative of governance best practice.
Board of directors, Institutional theory, IPO
82-104
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
May 2013
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2013)
The impact of board governance on director compensation in West African IPO firms.
Research in International Business and Finance, 28 (1), .
(doi:10.1016/j.ribaf.2012.09.005).
Abstract
This paper undertakes a unique study of the determinants of corporate governance in the West African developing region and their impact on director compensation. A new measure of director total remuneration is constructed providing a conservative estimate of expropriation of private benefits of control. Using a hand-collected sample of 51 West African IPO firms from 2000 to 2011 we find evidence that increased presence of true independent nonexecutives that are unconnected to CEO or dominant insider groups within firm and nominally independent board level committees are highly associated with expropriation inferring that firm's with directors engaging in this behaviour are more likely to adopt measures indicative of governance best practice.
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Accepted/In Press date: 23 September 2012
e-pub ahead of print date: 22 October 2012
Published date: May 2013
Keywords:
Board of directors, Institutional theory, IPO
Identifiers
Local EPrints ID: 423334
URI: http://eprints.soton.ac.uk/id/eprint/423334
ISSN: 0275-5319
PURE UUID: ad6869a2-3668-4ca3-8174-2c7b6397393f
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Date deposited: 20 Sep 2018 16:30
Last modified: 16 Mar 2024 04:37
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