Translated Titles

The Effect of the Establishment and the Quality of Compensation Committee on Top Executives' Pay-Performance Sensitivity




吳幸蓁(Shing-Jen Wu);謝佳純(Chia-Chun Hsieh);梁書瑋(Shu-Wei Liang)

Key Words

薪酬委員會 ; 薪酬績效敏感性 ; 高階經理人現金薪酬 ; 公司治理 ; compensation committee ; pay-performance sensitivity ; top executives' cash compensation ; corporate governance



Volume or Term/Year and Month of Publication

10卷2期(2014 / 12 / 01)

Page #

135 - 188

Content Language


Chinese Abstract


English Abstract

This study examines whether the establishment of compensation committees and the governance quality of the committees improve the association between top executives' cash compensation and accounting performance (i.e., pay-performance sensitivity). Using a sample of Taiwanese-listed firms over the period spanning 2009-2012, the empirical results support our argument that the establishment of compensation committees has a positive effect on pay-performance sensitivity. We also find that, after the mandatory establishment of compensation committees in 2012, the positive association between top executives' cash compensation and accounting earnings is more pronounced when the quality of compensation committees is high. Overall, our findings indicate that several characteristics of compensation committee quality (e.g., attendance, multiple directorships, members' tenure and committee size) have a significant impact on corporate governance mechanisms. In summary, the role of compensation committees in improving pay-performance sensitivity depends on specific characteristics of its committee members.

Topic Category 社會科學 > 財金及會計學
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