2023, Vol. 4, Issue 1, Part C
The role of board remuneration in driving firm performance: Evidence from Indian IT sector
Author(s): Sukhjinder Kaur and Dr. Gurpreet Kaur
Abstract: Financial analysts and academics are very interested in board compensation since it is thought to be a deterrent to financial crises that have rocked corporations in the 21st century. This study sought to determine the effect of board remuneration on financial performance of Indian IT companies. The sample of this study comprised of BSE (IT) index listed companies which comprised of 53 IT companies listed on Bombay stock exchange for the financial year 2017-2018. Focussing on Grounding the study on the agency theory, the study assumed that board remuneration will positively influence financial performance. Secondary data was obtained from annual reports and from Ace Equity Database. Board remuneration was measured by Executive and non-executive remuneration while financial performance was measured using the variable return on assets (ROA) and board size, NED proportion and firm size as control variables. Multiple linear Regression technique was used on cross-sectional data for 2017-18 to draw the inferences of the study. The study found statistically significant relationship of board remuneration with firm performance of BSE (IT) index listed companies and insignificant relation with control variables.
Pages: 246-251 | Views: 77 | Downloads: 34
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How to cite this article:
Sukhjinder Kaur, Dr. Gurpreet Kaur. The role of board remuneration in driving firm performance: Evidence from Indian IT sector. Asian J Manage Commerce 2023;4(1):246-251.