The Relationship between Managers' Compensation and Market Value Added (MVA) in Iranian Listed Firms: Panel Data Technique

Meysam Doaei (), Mohammad Hossein Vadiee () and Hasan Bari ()
Additional contact information
Meysam Doaei: Faculty of Management and Human Resource Development, Universiti Teknologi Malaysia
Mohammad Hossein Vadiee: Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad
Hasan Bari: Board of Director Iranian Accounting Association in Khorasan Razavi Province

Review of Economics & Finance, 2012, vol. 2, 37-42

Abstract: Nowadays, manager compensation is considered as one of the motivation factors in many communities. Other researchers have been done in scientific and professional associations about what variable should be the subject of compensation. Many firms and economic organizations determine the manager compensation based on profitability rates; however, it has been criticized due to formulating some failures on modification and computation of it. So, this research has intended to investigate the relationship between manager¡¯s compensation and market value added (MVA). In this paper, it is applied panel data technique for 46 listed firms in five years. Finally, it is concluded that there is a relationship between manager¡¯s compensation and market value added in Tehran Stock Exchange (TSE) and the 47% of fluctuations is explained by the defined regression model.

Keywords: Compensation; Market value added; Panel data technique; Tehran Stock Exchange (search for similar items in EconPapers)
JEL-codes: C23 G3 J3 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.bapress.ca/ref/ref-2012-4/1923-7529-2012-04-37-06.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bap:journl:120404

Ordering information: This journal article can be ordered from
17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada

Access Statistics for this article

Review of Economics & Finance is currently edited by H. Carlson

More articles in Review of Economics & Finance from Better Advances Press, Canada 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada.
Bibliographic data for series maintained by Carlson ( this e-mail address is bad, please contact ).