An assessment of firm efficiency and the link to executive pay: A study of UK building societies

This study utilises an unbalanced panel data set of 41 U.K building societies from 1998 to 2011, examining the relationship between cost efficiency and CEO salary. Using maximum-likelihood I estimate the parameters of a stochastic cost frontier under a transcendental logarithmic functional form. Th...

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Main Author: Mir, Ahmed
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2012
Online Access:https://eprints.nottingham.ac.uk/25876/
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author Mir, Ahmed
author_facet Mir, Ahmed
author_sort Mir, Ahmed
building Nottingham Research Data Repository
collection Online Access
description This study utilises an unbalanced panel data set of 41 U.K building societies from 1998 to 2011, examining the relationship between cost efficiency and CEO salary. Using maximum-likelihood I estimate the parameters of a stochastic cost frontier under a transcendental logarithmic functional form. The stochastic frontier analysis finds that on average building societies in the sample operate with a mean cost inefficiency of 18%. The latter stages of the investigation involve a regression analysis, which estimates the correlation between the cost efficiency of a smaller sample of building societies and CEO salary. Ultimately, the evidence presented in this paper finds that efficiency does not have a statistically significant impact on CEO remuneration but firm size has a substantial influence on executive pay levels.
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spelling nottingham-258762017-10-19T13:10:28Z https://eprints.nottingham.ac.uk/25876/ An assessment of firm efficiency and the link to executive pay: A study of UK building societies Mir, Ahmed This study utilises an unbalanced panel data set of 41 U.K building societies from 1998 to 2011, examining the relationship between cost efficiency and CEO salary. Using maximum-likelihood I estimate the parameters of a stochastic cost frontier under a transcendental logarithmic functional form. The stochastic frontier analysis finds that on average building societies in the sample operate with a mean cost inefficiency of 18%. The latter stages of the investigation involve a regression analysis, which estimates the correlation between the cost efficiency of a smaller sample of building societies and CEO salary. Ultimately, the evidence presented in this paper finds that efficiency does not have a statistically significant impact on CEO remuneration but firm size has a substantial influence on executive pay levels. 2012 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/25876/1/MSC_20TH_SEP.pdf Mir, Ahmed (2012) An assessment of firm efficiency and the link to executive pay: A study of UK building societies. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Mir, Ahmed
An assessment of firm efficiency and the link to executive pay: A study of UK building societies
title An assessment of firm efficiency and the link to executive pay: A study of UK building societies
title_full An assessment of firm efficiency and the link to executive pay: A study of UK building societies
title_fullStr An assessment of firm efficiency and the link to executive pay: A study of UK building societies
title_full_unstemmed An assessment of firm efficiency and the link to executive pay: A study of UK building societies
title_short An assessment of firm efficiency and the link to executive pay: A study of UK building societies
title_sort assessment of firm efficiency and the link to executive pay: a study of uk building societies
url https://eprints.nottingham.ac.uk/25876/