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dc.contributor.authorElmagrhi, Mohameden
dc.contributor.authorNtim, Collinsen
dc.contributor.authorWang, Yanen
dc.contributor.authorAbdou, Husseinen
dc.contributor.authorZalata, Alaaen
dc.date.accessioned2018-08-20T09:02:42Z
dc.date.available2018-08-20T09:02:42Z
dc.date.issued2018-10-14
dc.identifier.citationElmagrhi, M., Ntim, C., Wang, Y., Abdou, H. and Zalata, A. (2018) Corporate Governance Disclosure Index–Executive Pay Nexus: The Moderating Effect of Governance Mechanisms. European Management Reviewen
dc.identifier.issn1740-4762
dc.identifier.urihttp://hdl.handle.net/2086/16483
dc.descriptionThe file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.en
dc.description.abstractThis paper first employs principal component analysis technique to develop and introduce an alternative UK corporate governance disclosure index to the US-centric ones. Second, we then investigate whether this new corporate governance disclosure index can determine the level of executive pay (including CEOs, CFOs, and all executive directors) in UK listed firms, and consequently ascertain whether the governance mechanisms can moderate the pay-for-performance sensitivity. Employing data on corporate governance, executive pay and performance from 2008 to 2013, we find that, on average, better-governed firms, tend to pay their executives lower compared with their poorly-governed counterparts. Additionally, our findings suggest that the pay-for-performance sensitivity is generally positive, but improves in firms with high corporate governance quality, implying that the pay-for-performance sensitivity is contingent on the quality of internal governance structures. We interpret our findings within the predictions of optimal contracting theory and managerial power hypothesis.en
dc.language.isoenen
dc.publisherJohn Wiley & Sonsen
dc.subjectcorporate governance disclosure indexen
dc.subjectcorporate performanceen
dc.subjectexecutive payen
dc.subjectendogeneityen
dc.subjectprincipal component analysisen
dc.subjectUK combined codeen
dc.titleCorporate Governance Disclosure Index–Executive Pay Nexus: The Moderating Effect of Governance Mechanismsen
dc.typeArticleen
dc.identifier.doihttps://doi.org/10.1111/emre.12329
dc.peerreviewedYesen
dc.explorer.multimediaNoen
dc.funderN/Aen
dc.projectidN/Aen
dc.cclicenceCC-BY-NCen
dc.date.acceptance2018-08-13en
dc.researchinstituteFinance and Banking Research Group (FiBRe)en


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