How does Directors remuneration affect SMEs’ performance?
Afrifa, G. and Adesina, S. 2018. How does Directors remuneration affect SMEs’ performance? Review of Accounting and Finance. 17 (2), pp. 238-258. https://doi.org/10.1108/RAF-12-2016-0199
|Authors||Afrifa, G. and Adesina, S.|
The purpose of this paper is to explain empirically the relationship between the remuneration levels of a sample of listed Small and Medium Enterprises (SMEs) directors and firm performance. The paper also investigates whether deviations from the optimal directors’ remuneration level reduce firm performance.
The study uses a panel data regression analysis of 802 AIM-listed SMEs over an eight-year period (2005-2012).
Compared with previous literature on directors’ remuneration, this paper focuses on AIM-listed SMEs and our finding of a concave relationship between directors’ remuneration level and performance of leads us to recommend that firms, especially SMEs should endeavour to determine the optimal level of directors’ remuneration to maximise performance.
|Keywords||Directors’ remuneration, SMEs, AIM, performance, UK|
|Journal||Review of Accounting and Finance|
|Journal citation||17 (2), pp. 238-258|
|Digital Object Identifier (DOI)||https://doi.org/10.1108/RAF-12-2016-0199|
|Publication process dates|
|Deposited||09 Nov 2017|
|Accepted||28 Oct 2017|
|Accepted author manuscript|
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