Watto, Waqas Ahmad, Fahlevi, Mochammad, Mehmood, Sidra, Asdullah, Muhammad Ashar ORCID: https://orcid.org/0000-0003-1256-1158 and uhandi, Nendi (2023) Executive compensation: A justified reward or a mis-fortune, an empirical analysis of banks in Pakistan. Journal of Open Innovation: Technology, Market, and Complexity, 9 (3).

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Abstract

The relationship between compensation, performance, and risk in a sample of Pakistani banks, using panel data
for 20 banks from 2011 to 2021 has been examined in this research. To the best of researcher’s knowledge, this is
one of the first study examining the relationship between performance, risk and employee compensation using
panel data approach in the context of Pakistan and using data for longer period. To examine the influence of
employee compensation on the performance and risk of banks, we employed three performance measures: return
on assets, return on equity, and operating profits. Risk assessment was conducted using non-performing loans
and risk-weighted assets. Findings of study suggest that employee compensation has no significant impact on
performance and risk of banks in Pakistan; this means in Pakistan higher employee’s compensation does not
enable banks to improve their performance or enable banks to take more risk.

Item Type:	Article
Status:	Published
DOI:	10.1016/J.JOITMC.2023.100092
Subjects:	H Social Sciences > H Social Sciences (General)
School/Department:	London Campus
URI:	https://ray.yorksj.ac.uk/id/eprint/11610

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