Accounting and Auditing Research

Accounting and Auditing Research

Study of board compensation and accounting performance indexes (Evidence from: listed firms in Tehran Stock Exchange)

Document Type : Original Article

Authors
Esfandiar Malakian
Mahmoud Samadi Lorgani
Abbasali Daryaie
10.22034/iaar.2014.104337
Abstract
With the advent of the representation theory of the separation of management from ownership, management performance evaluation is proposed. The indicators and criteria should be considered for this purpose, the accounting indicators and economic indicators are among them. Therefore, in this study the influence of board remuneration on account of the performance evaluation will be discussed. To this end, an empirical test of the implications of agency theory is based on data for the years 2002 to 2008 from all eligible companies in Tehran Stock Exchange were collected using the adjusted coefficient of determination, analysis of variance and A linear regression model this relationship was examined. In this study, the effect of bonuses on the net cash flows from operating activities and Tobin's Q ratio of all companies and industries chosen were examined. Research findings indicate there is a significant relationship between the level of the whole company bonus net cash flows from operating activities on board and the weak relationship between the amount of remuneration of the board and Tobin's Q. there is not a significant relationship between Tobin's Q ratio and compensation.
Keywords
compensation
management performance
Net cash flow from operating activities
Tobin's Q
Accounting and Auditing Research
Volume 6, Issue 23
Autumn 2014
Pages 24-35