Title: Directors' remuneration, banks' specifics and board characteristics: the case of Indian listed banks

Authors: Najib H.S. Farhan; Faozi A. Almaqtari; Waleed M. Al-ahdal; Hafiza Aishah Hashim

Addresses: Faculty of Business Studies, Arab Open University, Saudi Arabia ' Department of Accounting, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Malaysia ' Department of Accounting, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Malaysia ' Department of Accounting, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Malaysia

Abstract: The article attempts to examine the impact of banks' specifics and board of directors' characteristics on directors' remuneration (REM) of 38 Indian listed banks from 2010 to 2019. The current study is based on secondary data that are extracted from the Prowess IQ database. Fixed effect model is used for analysing the data and generalised method of moment is applied for dealing with endogeneity problem. Finally, the sample is classified into three groups in order to check the robustness of the results. Results revealed that return on assets, size, and market capitalisation positively and significantly impact directors' REM of Indian listed banks. While banks' age, capital adequacy, current ratio, and board of directors' composition have an insignificant impact on directors' REM of Indian listed banks. The findings of the study provide new evidence about the impact of banks' specifics and board of directors' characteristics on directors' REM in the Indian banking sector. The findings suggest that firms' specifics are significant determinants of directors' REM.

Keywords: directors' remuneration; board characteristics; Indian listed banks; banks' characteristics.

DOI: 10.1504/IJBGE.2023.134213

International Journal of Business Governance and Ethics, 2023 Vol.17 No.6, pp.726 - 748

Received: 05 Jan 2022
Accepted: 10 Jun 2022
Published online: 13 Oct 2023 *

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