 The Impact of Financial Performance Indicators on Executive Compensationİbrahim Kaya Fiscaoeconomia, 2026, issue 2 Abstract: The relationship between executive compensation and firm performance has long been a subject of debate in both academic literature and business practice. This study aims to examine the relationship between executive compensation and both accounting-based and market-based financial indicators. The sample consists of 28 firms listed in the BIST 50 index over the period 2014–2023. The effects of accounting-based indicators (earnings per share, return on equity) and market-based indicators (market value, market-to-book ratio, stock price) on executive compensation are analyzed using panel data methods. The findings indicate that earnings per share and return on equity, as accounting-based indicators, and the market-to-book ratio, as a market-based indicator, have statistically significant effects on executive compensation. In addition, firm size and the COVID-19 variable, included as control variables, are also found to be significant. The results reveal that firm size is the most influential determinant of executive compensation. Specifically, a 1% increase in total assets leads to approximately a 0.78% increase in executive compensation. In contrast, the effects of other variables are relatively limited. Keywords: Company Performance; Panel Data Analysis; Senior Executive Compensation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:260231 Access Statistics for this article More articles in Fiscaoeconomia from Tubitak Ulakbim JournalPark (Dergipark) |
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