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

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 [Dissertation (University of Nottingham only)] (Unpublished)

[img] PDF - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (1MB)

Abstract

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.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 04 Apr 2013 14:22
Last Modified: 19 Oct 2017 13:10
URI: https://eprints.nottingham.ac.uk/id/eprint/25876

Actions (Archive Staff Only)

Edit View Edit View