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Journal of Applied Sciences

Year: 2004 | Volume: 4 | Issue: 4 | Page No.: 547-553
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Research Article

Corporate Performance and Directors’ Remuneration: An Empirical Study in Malaysia

Solucis Santhapparaj and Lin Yong Tong

ABSTRACT

The relationship between directors’ compensation and the corporate performance of the public listed companies in Malaysia has been studied with the help of secondary data available in the reports of Kuala Lumpur Stock Exchange. The regression analysis indicates that, out of the three explanatory variables, the assets and turnover of companies were consistent with expectations but the shareholders’ funds differed from expectation. The regression analysis indicates that the changes in shareholders fund and turnover significantly differ in their influence on directors’ compensation of companies with focused business and diversified business group of companies.
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