The influence of abnormal directors’ compensation on corporate performance in Nigeria

Authors

  • Aroh Joseph Chike
  • Aroh Nkechi N.
  • Augustine Nwekemezie Odum

Keywords:

Executive Compensation, Agency Theory, Corporate Governance.

Abstract

The thrust of this paper is to examine the relationship between firm performance and abnormal directors’ compensation for thirteen (13) listed banks in Nigeria for the period from 2012 through 2016. The study adopted Robust Least Square Regression Analysis in finding coefficient estimates that will be used for policy recommendations. The researcher found that there is a positive but insignificant relationship between firm performance measured by shareholders’ value of Tobin Q and abnormal directors’ compensation. The results also showed that the size of the firm significantly influence shareholder’s wealth but not significantly affecting firms’ profitability. The study recommends the adoption of a sound framework and appropriate contractual arrangement that will direct the board of directors’ compensation of Nigerian quoted banks in order to ensure available best practices of corporate governance in the industry.

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Published

31-12-2018

How to Cite

Chike, A. J., N., A. N., & Odum, A. N. (2018). The influence of abnormal directors’ compensation on corporate performance in Nigeria. Caribbean Journal of Sciences and Technology, 6(1), 18–28. Retrieved from https://caribjscitech.com/index.php/cjst/article/view/14

Issue

Section

Review Article