The Relationship between Family-firms, Executive Compensation, and Firm Performance of listed in the Stock Exchange of Thailand
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Abstract
The objectives of this research are 1) to study the differences between the executive remuneration of family firm and non-family firm 2) to study the effect of executive’s remuneration on firm performance (ROA and ROE). These definitions of family firm are 1) at least two representatives of the family member in board of directors 2) more than 20% of shareholders are family member 3) at least three representatives of the family member in board of directors or majority shareholder 4) The president and at least two boards of directors or shareholders are same family member. The 2,718 data collected from Thai-listed Company in 2013-2017. The statistics used for the data analyses were descriptive statistics; One-way ANOVA and Simple Regression Analysis.
The results showed 1): no in executive remuneration differences on family firm and non-family firm for definition 1, at the same time, had differences in executive remuneration on family firm and non-family firm for definition 2, 3 and 4. 2) There was a relationship and a negative effect between executive compensation and firm performance in aspect of ROA. 3) There was a relationship and a positive effect between executive compensation and firm performance in aspect of ROE. The result from this study, investors can be useful for making decision on investment, organization can be appropriately considered of executive compensation conform to good corporate governance.
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The articles published in the journals are the authors' opinions, not the opinion of the editorial team or administrative staff. The articles published is copyright of the Journal of Business Administration and Accounting, Khon Kaen University.
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