The Relationship of Family Control with Excess Management Compensation: A Further Discussion on the Impact of Information Disclosures

• Main Authors: Chen, Yi-Ting, 陳怡廷
• Other Authors: Uang, Jinn-Yang
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/54dqfp

碩士 === 中國文化大學 === 會計學系 === 103 === This study aims to examine the impact of family-business characteristics, control ownership and information disclosures on excess top management compensation. To conduct this research, a sample consisting of listed and OTC companies trading in the Taiwan Stock Exchange from 2011 to 2013 is used and the excess compensation model developed by Core, Guay, and Larcker (2008) is employed. The results show that the interaction variable of controlling ownership and family firms positively associated with excess top management compensation. Such results indicate that family-business characteristics alter the relationship between controlling ownership and excess top management compensation, in line with the argument of core-agency problems. In addition, the result shows that transparency moderates the impact of controlling ownership and family firms own excess top management compensation. This finding indicates that improving information transparency can reduce the impact of family-business characteristics on the relationship between controlling ownership and excess top management compensation, which may lead to mitigate the fat-cat problems.‬‬