• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2013 Vol.4(6): 353-357 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2013.V4.316

Determinant of Director Remuneration in Malaysia Public Listed Companies

Syaiful Baharee Jaafar and Kieran James
Abstract—This study examines the relationships between a family firm, the remuneration committee and director remuneration. The proxies of the remuneration committee are the numbers of committee members. The family firm proxy is a family member, as in the board of directors. The dependent variable (director remuneration) is measured by fees, salary, bonuses and benefit of kin. The sample size of this study is 537 firms listed in Bursa, Malaysia with 1611 panel data from 2007 to 2009. This study finds that there is a significant positive relationship between the remuneration committee and director remuneration, which suggests the effectiveness of the monitoring role of the remuneration committee. Furthermore, findings from this study reveal that there is a significant positive relationship between family firms and director remuneration. This study suggests that family members combine power and control to award better remuneration to the board of directors.

Index Terms—Director remuneration, remuneration committee, family firm.

Syaiful Baharee Jaafar is with Polytechinc Tuanku Sultanah Bahiyan, Malaysia (e-mail: syaiful_1974@yahoo.com.my).

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Cite:Syaiful Baharee Jaafar and Kieran James, "Determinant of Director Remuneration in Malaysia Public Listed Companies," International Journal of Trade, Economics and Finance vol.4, no.6, pp. 353-357, 2013.

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