TY - JOUR
T1 - Executive compensation policy and company performance in Japan
AU - Kubo, Katsuyuki
PY - 2005/5
Y1 - 2005/5
N2 - The purpose of this paper is to analyse whether companies' "way to pay their director" matters or not. Firstly, we fail to find a positive relationship between the performance-pay sensitivity and company performance. Thus, these results do not support our hypothesis that those companies that intensify the performance-pay sensitivity are more likely to improve their performance. In addition, this research fails to find a positive relationship between the change of pay policy and performance. These results are consistent with previous studies that directors' pay is not designed to motivate directors to work toward shareholders' value.
AB - The purpose of this paper is to analyse whether companies' "way to pay their director" matters or not. Firstly, we fail to find a positive relationship between the performance-pay sensitivity and company performance. Thus, these results do not support our hypothesis that those companies that intensify the performance-pay sensitivity are more likely to improve their performance. In addition, this research fails to find a positive relationship between the change of pay policy and performance. These results are consistent with previous studies that directors' pay is not designed to motivate directors to work toward shareholders' value.
KW - Board of directors
KW - Corporate governance
KW - Executive compensation
UR - http://www.scopus.com/inward/record.url?scp=19744376189&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=19744376189&partnerID=8YFLogxK
U2 - 10.1111/j.1467-8683.2005.00437.x
DO - 10.1111/j.1467-8683.2005.00437.x
M3 - Review article
AN - SCOPUS:19744376189
VL - 13
SP - 429
EP - 436
JO - Corporate Governance: An International Review
JF - Corporate Governance: An International Review
SN - 0964-8410
IS - 3
ER -