RISK AND EXECUTIVES COMPENSATION: AN INDUSTRY-WISE ANALYSIS OF PAKISTAN NON-FINANCIAL SECTORS

Muhammad Imran Khan, Muhammad Ghous, Muhammad Jabbar, A. Hanif and N. Ramzan
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Muhammad Imran Khan: Department of Economics, Government Graduate College, Kot Adu, Pakistan
Muhammad Ghous: Department of Geography, Government Graduate College of Science, Wahdat Road, Lahore, Pakistan
Muhammad Jabbar: Department of Geography, Government Associate College for Boys, Shalimar Town, Lahore, Pakistan
A. Hanif: Department of Geography, Lahore College for Women University, Lahore, Pakistan
N. Ramzan: Department of Geography, Government Ayesha Associate college (W) Timber Market, Ravi Road Lahore, Pakistan

Bulletin of Business and Economics (BBE), 2023, vol. 12, issue 2, 87-92

Abstract: Large compensation packages, according to critics, pushed managers to take unwarranted risks, which ultimately contributed to the financial crisis. This study explores the relationship between systematic risk and executive remuneration. For investigation, this study uses the data of 170 non-financial listed firms of the Pakistan Stock Exchange. Further, this study divides the data into the 5 majors listed sectors and explores the relationship between investigated variables. The estimation method used in this study is OLS. Results suggest that executive remuneration effect differently on systematic risk in different sectors of Pakistan. Important determinants for systematic risk return on assets, firm size, firm age, and TbinQ. In the context of Pakistan, this study contributes to the literature. Policymakers can use this study's findings for decisions making.

Keywords: Risk; executives Compensations; OLS; Non-Financial industries (search for similar items in EconPapers)
Date: 2023
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