Executive compensation and firm performance: Evidence from selected publicly listed firms in the Philippines, 2009-2012

• Main Authors: Lim, Phil Gerard G., Montallana, Monn Ryan A., Vergara, Angelo M.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Executives > Philippines; Compensation management > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18318
• Institution: De La Salle University

The correlation of executive pay with respect to firm performance has been the focus of executive pay studies, addressing agency problems by aligning the rewards of executives and of the shareholders. However, majority of the studies prior to this have neglected the probability of motivational effects and two-way pay-performance causation. This study reports Philippine executive pay-permanence sensitivity, with international comparisons to examine if the Philippine's institutional environment has formed results at par with other market economies. Results show that there is no two-way causality on executive pay and firm performance. Only shareholder value was found to be significant and granger caused executive pay.