Revitalizing Organizational Efficiency: Unpacking the Relationship between CEO Turnover, Research and Development, and Pay-Performance Sensitivities in the Financial Sector of Pakistan

Xiaoyu Yin, Xiujian Wei (), Muhammad Irfan () and Sonia Yasin
Additional contact information
Xiaoyu Yin: School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China
Xiujian Wei: School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China
Muhammad Irfan: Institute of Banking and Finance, Bahauddin Zakariya University, Multan 60800, Pakistan
Sonia Yasin: Institute of Banking and Finance, Bahauddin Zakariya University, Multan 60800, Pakistan

Sustainability, 2023, vol. 15, issue 13, 1-15

Abstract: This study examines the relationship between senior management turnover, wage structures, and organizational efficiency in the banking industry in Pakistan. Using secondary panel data from annual reports of commercial banks and multiple regression techniques, the study finds that pay-performance sensitivity, R&D investment, and firm age positively impact organizational efficiency. At the same time, higher expense ratios are negatively associated with efficiency. CEO turnover, duality, and board size have a relatively low impact on efficiency. This study provides valuable insights for managers and policymakers in the banking sector, highlighting key areas that should be prioritized to improve efficiency, reduce costs, and increase financial performance. By offering a roadmap for decision-makers to focus their efforts, this study provides a valuable framework for achieving tremendous success in the banking industry.

Keywords: organizational efficiency; CEO turnover; research and development; pay-performance sensitivities; banking industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/13/10578/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/13/10578/ (text/html)

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:gam:jsusta:v:15:y:2023:i:13:p:10578-:d:1187378

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().