Year: 2013
Type: article
Abstract: The aim in this research was to investigate the relation between executive remuneration and financial performance in Brazilian companies. The research data are secondary and were collected from two databases: a) Study Program on Personnel Management (PROGEP); b) Institute for Accounting, Actuarial and Financial Research Foundation (FIPECAFI). The non-probabilistic sample consists of 82 non-financial companies. To operate the independent variable “remuneration”, besides the mean monthly wage and the mean variable wage, three indices were used that were created especially for this research: benefits, career and development. These indices measured the access to benefits; to career encouragement and support mechanisms and to educational encouragement mechanisms. These are items the companies offer to their directors, deputy presidents and presidents, hereinafter called “executives”. These remuneration data refer to 2008. As regards the dependent variable “financial performance”, three financial indicators were used: sales growth, return on equity and return on assets, for the financial years 2008 and 2009. Company size and activity sector were used as control variables. The results of the Spearman correlation test indicated a significant relation between financial remuneration and financial performance. And the results of the multiple linear regression analysis showed a significant relation between financial remuneration and financial performance and between non-financial remuneration and financial performance.
Author: Elizabeth Krauter
Institution: Universidade de São Paulo
Language: Portuguese
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W1570567559