Do employees' salaries and board of director's remuneration impact gold demand?: An empirical study

Nitya Nand Tripathi, Asha Binu Raj and Aviral Tiwari

Resources Policy, 2022, vol. 75, issue C

Abstract: This study discuss the relation between gold demands and employees' salaries. It also examines the linkages between the board of director's remuneration and gold demands. We investigate the association between two forms of gold, i.e., gold jewellery and gold bars & coins between both categories of incomes. There are two sources of income, one of them is from organized sources of income, and another is from unorganized sources of income. However, approximately 92% of the workforce falls under the unorganized sectors, and 8% fall under the organized sectors. Our study is based on the only income of corporate sectors (i.e. formal sectors) which fall under the organized income group. In this study, the demand function is investigated in terms of corporate incomes and the price of the gold. This study provides analytical and empirical linkages between gold demands and corporate income during 2010–2019. It is an unbalanced panel data with 386,312 quarterly board of directors' remuneration from 2424 listed firms. We take quarterly employees' salaries paid by 2223 listed firms to their employees. We test the unit root test to check the stationarity of data. This paper uses the Two-Stage Least Squares Estimation and Error Correction Models to test the research hypotheses. We find a positive relation between gold jewellery and income and no significant association between the gold bars & coins and income.

Keywords: Gold demand; gold jewellery; bars and coins; Salaries; remuneration; 2SLS; Error Correction Model (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:75:y:2022:i:c:s0301420721005493

DOI: 10.1016/j.resourpol.2021.102542

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