Executive compensation: A justified reward or a mis-fortune, an empirical analysis of banks in Pakistan

Watto, Waqas Ahmad, Fahlevi, Mochammad, Mehmood, Sidra, Asdullah, Muhammad Ashar ORCID: https://orcid.org/0000-0003-1256-1158 and Juhandi, Nendi (2023) Executive compensation: A justified reward or a mis-fortune, an empirical analysis of banks in Pakistan. Journal of Open Innovation: Technology, Market, and Complexity, 9 (3). ISSN 2199-8531

[thumbnail of Watto_etal_2023_JOITMC]
Preview
PDF (Watto_etal_2023_JOITMC) - Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (1MB) | Preview

Abstract

The relationship between compensation, performance, and risk in a sample of Pakistani banks, using panel data for 20 banks from 2011 to 2021 has been examined in this research. To the best of researcher's knowledge, this is one of the first study examining the relationship between performance, risk and employee compensation using panel data approach in the context of Pakistan and using data for longer period. To examine the influence of employee compensation on the performance and risk of banks, we employed three performance measures: return on assets, return on equity, and operating profits. Risk assessment was conducted using non-performing loans and risk-weighted assets. Findings of study suggest that employee compensation has no significant impact on performance and risk of banks in Pakistan; this means in Pakistan higher employee's compensation does not enable banks to improve their performance or enable banks to take more risk.

Item Type: Article
Additional Information: Funding Information: The Authors would like to thank the Research and Technology Transfer Office (RTTO), Bina Nusantara University (BINUS University), who has funded the research results‘ publication costs.
Uncontrolled Keywords: executive compensation,non-performing loans,return of assets,return on equity,risk weighted assets,development,sociology and political science,economics, econometrics and finance(all) ,/dk/atira/pure/subjectarea/asjc/3300/3303
Related URLs:
Depositing User: LivePure Connector
Date Deposited: 22 May 2024 09:30
Last Modified: 22 May 2024 09:31
URI: https://ueaeprints.uea.ac.uk/id/eprint/95273
DOI: 10.1016/j.joitmc.2023.100092

Downloads

Downloads per month over past year

Actions (login required)

View Item View Item