The Impact of Board Governance on Director Compensation in West African IPO Firms
Research in International Business and Finance, 28, 82-104, (2013)
31 Pages Posted: 5 Oct 2011 Last revised: 20 Nov 2012
Date Written: October 4, 2011
Abstract
This paper undertakes a unique study of the determinants of corporate governance in the West African developing region and their impact on director compensation. A new measure of director total remuneration is constructed providing a conservative estimate of expropriation of private benefits of control. Using a hand-collected sample of 51 West African IPO firms from 2000 and 2011 we find evidence that increased presence of nonexecutives that are unconnected to CEO or dominant insider groups within firm and nominally independent board level committees are highly associated with expropriation inferring that firm’s with directors engaging in this behaviour are more likely to adopt measures indicative of governance best practice
Keywords: IPO, Board of Directors, Institutional Theory
Suggested Citation: Suggested Citation
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