摘要：The aim of this study is to identify the relationship between executive compensation, firm value and performance in Brazil. The literature provides mixed results but most studies show that firms with higher executive compensation tend to have greater value and performance in comparison with companies with lower compensation. We analyze a unique Brazilian database to test this hypothesis. This paper differs from previous studies on executive remuneration in Brazil since it uses dynamic models, estimated by systemic generalized method of moments, to control potential sources of endogeneity. The analysis of 420 Brazilian companies from 2002 to 2009 does not indicate a significant relation between executive compensation and firm value (price-to-book and Tobin´s Q), suggesting that companies that pay greater executive remuneration do not have higher value. Furthermore there is no significant relation between executive compensation and operational performance (ROA and sales growth).
其他摘要：The aim of this study is to identify the relationship between executive compensation, firm value and performance in Brazil. The literature provides mixed results but most studies show that firms with higher executive compensation tend to have greater value and performance in comparison with companies with lower compensation. We analyze a unique Brazilian database to test this hypothesis. This paper differs from previous studies on executive remuneration in Brazil since it uses dynamic models, estimated by systemic generalized method of moments, to control potential sources of endogeneity. The analysis of 420 Brazilian companies from 2002 to 2009 does not indicate a significant relation between executive compensation and firm value (price-to-book and Tobin´s Q), suggesting that companies that pay greater executive remuneration do not have higher value. Furthermore there is no significant relation between executive compensation and operational performance (ROA and sales growth).
关键词：Executive remuneration;Firm value and performance;Brazil;Remuneração executiva;Valor e desempenho da firma;Brasil
其他关键词：Finance;Executive remuneration; Firm value and performance; Brazil;G30; G32; G34; L25
