The Relations Between Market Value Added, Economic Value Added and Accounting Performance with Executive Compensation: Companies Listed on the Stock Exchange of Thailand
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Abstract
This article aimed to study and analyze the impact of market value added, economic value added, and accounting performance on executive compensation of companies listed on the Stock Exchange of Thailand. The research objectives were: 1) to study and analyze the relationship between executive compensation and performance indicators; 2) to study and analyze the relationship between executive compensation and market value added (MVA) and economic value added (EVA) indicators; 3) to study and synthesize the relationship between executive compensation and MVA through the influence of performance indicators; and 4) to study and synthesize the relationship between executive compensation and EVA through the influence of performance indicators. In this study, a total of 300 samples were selected from seven industrial groups listed on the Stock Exchange of Thailand during the period from 2018 to 2021. This research used descriptive and inferential statistics, including path analysis, correlation analysis, and regression analysis, to analyze the data.
It was found that accounting performance, including return on assets and return on equity, was correlated with executive compensation. Moreover, market value added and economic value added showed a relationship with executive compensation. Conversely, market value added did not affect executive compensation through return on assets and return on equity. In contrast, economic value added affected executive compensation through return on assets and return on equity of listed companies on the Stock Exchange of Thailand.
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