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This study examines the effects of board members’ compensation on the voluntary establishment of an internal audit function in publicly listed firms. While previous studies have identified some individual determinants related to the voluntary establishment of an internal audit function, the existing evidence on how board members’ compensation affects voluntary use of internal audit is, at best, ambiguous, scarce and incoherent.

Board compensation is a central incentive instrument in the classic principal–agent relationship between the owners and board members. The theme is empirically examined by using data compiled from Finnish publicly listed companies for the period 2015 to 2018. Since the dependent variable of the study is a binary variable, the logistic regression method was chosen as the statistical method of the study.

Our results unequivocally show that generous compensation of the board members increases the likelihood of establishing an internal audit function. Thus, we conclude that good corporate governance can be improved through generous compensation of board members.

Identifying the determinants of internal audit is vital to better understand the mechanisms that facilitate firms' improvement of internal control and risk management in terms of voluntarily adopting an internal audit function, and the implementation of good governance in general. Although numerous determinants of internal audit have been identified in previous studies, this study showed that one of the key determinants has so far been overlooked; namely, the remuneration of board members.

This study aims to investigate the satisfaction of farmers with the compensation policy for wildlife-caused damages and its influencing factors, analyze the current situation of satisfaction with the compensation policy among farmers, identify factors significantly affecting satisfaction, and explore ways to optimize the compensation policy and improve the satisfaction of farmers based on the effects of various influencing factors.

The Xishuangbanna National Nature Reserve in Yunnan Province, China, is selected as the research area for the study. Through field interviews, 370 valid questionnaires were collected to obtain relevant data on farmers' satisfaction with the compensation policy for wildlife-caused damages. The Oprobit model is utilized to explore the factors influencing farmer satisfaction and to analyze their underlying reasons.

The study reveals that farmers in the communities surrounding the Xishuangbanna National Nature Reserve generally experience low satisfaction with the compensation policy, particularly concerning satisfaction with compensation amounts, which tends to be dissatisfied on average. Satisfaction with the compensation policy is significantly influenced by individual characteristics and household labor structure, while the degree of human-wildlife conflict, wildlife conservation attitudes and household income structure have insignificant impact. Among individual characteristics, gender, education level, health status, and ethnicity are highly significant. In household labor structure, the number of agricultural laborers, non-agricultural laborers, and household agricultural labor time are highly significant.

Building on the overall satisfaction of farmers with the compensation policy, this study further decomposes policy satisfaction into satisfaction with compensation amounts, coverage, and procedures. It provides more targeted recommendations for enhancing satisfaction with the compensation policy, which can help effectively mitigate human-wildlife conflicts and achieve harmonious coexistence between humans and nature.

This study aims to understand differences in perceptions of CEO compensation between working adults and business students in the USA before and after reading CEO pay information.

Participants completed a survey about their perceptions of chief executive officer (CEO) compensation before and after reading CEO compensation information that included the median CEO-to-employee ratio and salary in 2021.

Working adults and business students had similar levels of concern about CEO compensation. Participants were more concerned with CEO compensation after reading information about CEO pay but also believed CEO pay was more justified, contrary to equity theory (Adams, 1965). Among the student and adult samples, women and noninvestors were more likely to have concerns about CEO compensation than other participants.

Individuals may not understand the components of CEO compensation, and the size of CEO salaries may be difficult to comprehend. Educators and the media should consider presenting CEO compensation information in a different way, for example, how long it takes a CEO to earn as much as an average employee does annually, for the public to understand how much more CEOs are paid than their employees.

Little research exists on CEO compensation understanding and concerns. This research opens the opportunity for future studies on CEO compensation, for example, that consider variables other than CEO pay (e.g. equity and other forms of compensation) and what individuals believe CEOs do that justifies their high compensation.

This study investigates the relationship between media and social media sentiment and the likelihood of CEO pay cuts. The purpose is to examine whether and how these pay cuts influence market reactions. The study aims to provide insights into how external sentiment affects corporate decision-making and market perceptions, particularly in the context of CEO compensation.

Using a sample of 6,331 firm-year observations from 2015 to 2021, this paper employs quantitative analysis to assess the association between media and social media sentiment and CEO pay cuts. We utilise company DEF14A SEC filings to identify CEO pay cut dates and capture traditional media and Twitter sentiment 30-days prior to these filing dates.

We find a negative association between media and social media sentiment and CEO pay cuts, indicating that firms facing more negative sentiment are more likely to engage in pay cuts. We find evidence that CEO pay cuts are negatively correlated with market reactions, suggesting markets generally do not seem to favour decisions to cut CEO pay. This relationship, however, is complex and influenced by multiple factors, including the nature of sentiment and the specific components of CEO compensation.

The study faces limitations in identifying the varying degrees of pay cuts and their motivations. Additionally, the content of news articles and Twitter posts used to measure sentiment was not specifically identified, which may affect the accuracy of sentiment measurement.

This research offers valuable insights for managers and corporate decision-makers, highlighting the potential impact of public sentiment on critical executive compensation decisions.

The study underscores the influence of media and social media in shaping public opinion and driving corporate actions, highlighting the growing intersection between social perceptions and corporate governance. This has broader implications for how firms engage with media platforms and manage their public image, particularly in the realm of executive compensation.

We are the first to study the impact of media and social media sentiment on CEO compensation decisions and market reactions. By employing DEF14A filings as event dates for market reaction studies, we offer a novel approach to analysing the impact of executive compensation changes on market behaviour.

In the context of sustainable development goal 5 of the United Nations 2030 Agenda: “Achieve gender equality and women’s empowerment”, where gender equality is not only a matter of justice but also essential to achieve sustainable development, this paper aims to examine the gender pay gap in executive director compensation and the influence of female board representation and participation in nomination and remuneration committee (NRC) on this gap in Spanish listed firms over the period 2012–2022.

The analysis is conducted using a data set created by the authors, which includes executive director compensation data for 164 unique firms. This data set comprises 128 distinct observations for a given firm and year for women, and 2,333 observations for men. The authors estimate ordinary least squares models, clustering standard errors by executive. The authors use Oaxaca-Blinder decomposition to decompose gender differences in compensation into differences in the characteristics of men and women and differences in the return on the same characteristics.

The authors find evidence of pay penalty for female executive directors compared to male counterparts. After controlling for firm, board and executive characteristics, the authors find that women earn 27% less than comparable men. The penalty is lower in companies with a higher share of women on the compensation committee, suggesting that women’s participation plays a role in setting a more equal remuneration policy. The gender gap in executive compensation narrows over time due to a substantial reduction of the differences between men and women in both characteristics and the return on these characteristics.

This study is one of the few analysing the gender gap in executive director compensation and its evolution in Spain. It specifically explores how gender diversity on both the board and the NRC impacts this gap. The analysis is focused on the most recent period characterized by important efforts to promote gender diversity.

This paper aims to explore the psychological, emotional and equity implications of compulsory acquisition, evaluate the adequacy of compensation in mitigating those consequences and assess the sustainability of cash compensation for future generations.

A case study approach was operationalised to investigate the experiences of 40 project-affected persons (PAPs) four years after a compulsory acquisition project in Ghana’s New Akrade-Mpakadan region for the construction of a railway line. These perspectives were analysed through descriptive statistics and thematic analyses using the NVivo software. Figures and a holistic framework were adopted to report the identified issues.

Overall, only 25% of PAPs received formal communication prior to the acquisition, and only 10.3% have been fully compensated four years later. Despite the acquiring body initiating the marking of properties and compensation assessment in 2019, no payments were made until 2021. This induced emotional responses of distress, loss, uncertainty, stress and sadness, which was further exacerbated by feelings of hopelessness because there was no platform to voice concerns or pursue arbitration. Although PAPs were only offered compensation in the form of single monetary payments, a third would have preferred re-settlement.

By exploring the emotional and psychological effects of compulsory land acquisition, the study adds a new dimension to understanding its consequences. This may spark more interest, debate and discourse amongst researchers and policymakers and lead to the creation or enhancement of existing policy and legal measures to address the needs of PAPs in compulsory acquisition projects in developing countries.

The financial consequences of eminent domain are well documented, but this study explored the psychological, emotional and equity implications of the practice under conditions of weak regulatory frameworks. The adequacy of single lump-sum compensations was also explored to highlight preferred alternatives to ensure fairness for generations unborn.

Excessive borrowing significantly contributes to pushing businesses towards default and their transition into zombie enterprises. Despite government efforts to implement deleveraging policies and guide bank credit flows, it’s essential to delve into the internal dynamics that steer the borrowing behavior of these zombie enterprises at a micro level. To gain a comprehensive understanding of the issue, this study focuses on examining the incentives that drive corporate executives of zombie enterprises to consistently engage in large-scale borrowing from banks.

In this study, panel data analysis is utilized, incorporating firm-, industry- and year-fixed effects. Drawing from data pertaining to listed companies in China spanning from 2007 to 2020, we employ a one-by-one identification method to pinpoint zombie enterprises. Ultimately, a total of 2,533 samples of zombie enterprises were obtained.

The results indicate that as bank loans to zombie enterprises increase, executive monetary compensation decreases, while on-the-job consumption by executives increases, and they are less likely to be forced into rotation. Mechanism testing reveals that corporate performance partially mediates the relationship between bank loans and executive monetary compensation, but this mediation is ineffective for on-the-job consumption and job rotation. Further investigation suggests that the property rights nature of central enterprises and modified audit opinions can exacerbate the adverse impact of bank loans on the monetary compensation of zombie corporate executives, without significantly affecting on-the-job consumption or job rotation. Conversely, executive power does not enhance the positive effects of bank loans on monetary compensation or on-the-job consumption, but it diminishes the negative impact of bank loans on the forced rotation of zombie executives.

These results indicate that while bank loans may have a negative impact on corporate value, they function as safeguards for the positions and interests of executives. As a result, bank loans serve as incentives for executives of zombie enterprises.

This study holds theoretical significance as it explores the motivations behind non-performing loans in high-borrowing enterprises, sheds light on corporate governance challenges encountered by zombie enterprises and provides policy insights aimed at addressing the underlying causes of persistent non-performing loans in high-borrowing enterprises, including zombie enterprises.

The purpose of this paper is to explain the amendments to the listing standards of the New York Stock Exchange (NYSE) and the NASDAQ Stock Market (Nasdaq), which were approved by the Securities and Exchange Commission (the SEC) on January 11, 2013 to implement the SEC's final rules on the independence of compensation committees and their selection of advisors pursuant to Rule 952 of the Dodd‐Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank).

After a summary of notable provisions, the paper explains effective dates and respective Nasdaq and NYSE listing standards pertaining to compensation committee compensation; director independence standards, advisors, and charters; certain exemptions for foreign issuers; exemptions for certain types of companies and partnerships; and recommended next steps for companies that are subject to the amended listing standards.

Over the past few years, the independence of compensation committees and their advisors has been a hot button corporate governance issue. Dodd‐Frank prohibits national securities exchanges from listing any equity security of an issuer that is not in compliance with the exchanges' compensation committee independence and advisor requirements.

The listing standards generally become effective on July 1, 2013; however, listed companies have until the earlier of: their first annual meeting after January 15, 2014; or October 31, 2014, to comply with certain requirements including the independence structure of their compensation committees.

The paper provides practical advice from experienced financial services lawyers.

This study seeks to examine whether CEO duality further exacerbates CEOs' motivation of self‐interest to engage in mergers and acquisitions to increase their compensation.

Regression tests using CEO compensation as the dependent variable, and CEO duality, firm size and firm performance as independent test and control variables. The regression tests are used for various sub‐samples of the firms, those that merge and those that have CEO duality.

The results indicate that for merging firms CEO compensation is positively associated with firm size. However, this association is unaffected by CEO duality. For non‐merging firms, the results indicate that CEO compensation is positively associated with firm size and firm performance. CEO duality moderates the positive association between CEO compensation and firm performance.

This study is limited to the extent that it does not observe the deliberations of compensation committees in their setting of CEO compensation, but only examines the outcomes of those deliberations. A future area of research is to examine compensation schemes of merger/acquisition CEOs in the context of other government structures, such as board independence and composition.

Shareholders who desire to keep CEO compensation levels positively associated with firm performance may consider supporting the separation of the positions of CEO and Chairperson of the Board.

This study contributes to the literature by concluding that governance structure influences CEO compensation schemes and CEOs of merging firms command higher compensation in spite of governance structure and firm performance.

The purpose of this paper is to focus on the problems of compensation for compulsory acquisition of oil exploration fields in Delta State with particular reference to the oil field acquired by Agip Oil Company for gas pipeline way leave in Irri and Okpai towns of Delta State.

A survey was conducted in which questionnaires were administered on some residents whose lands were acquired compulsorily on one hand and some estate surveying and valuation firms who are professionals in the fields of compensation on the other hand. The data collected were analyzed and presented using simple statistical methods.

The findings in this paper show that the compensation paid to residents whose lands were acquired is grossly inadequate, since professionals are not always involved in the process.

The paper shows that the issue of compensation for compulsory acquisition for oil exploration is very central in the oil‐rich Niger‐Delta, and if this is not handled carefully, it can lead to uncontrollable crisis.

This paper empirically examined the process involved in compulsory acquisition and compensation of land in the Niger‐Delta for oil exploration with a view to determining the adequacy or otherwise of the compensation paid.