Type: Research Essays
Sample donated: Lionel Caldwell
Last updated: May 21, 2019
Sample of this study is selected from the top 15companies in the order of market capitalization and listed in Colombo StockExchange excluding financial and insurance companies.This study has not carried out for a particularindustry and findings can differ between industries.
Further this research isnot relevant to the firms providing financial services.Published annual reports from the companies listedare selected and in that case findings of the research are limited to thelisted companies in the Colombo Stock Exchange. As well external factors effecting the performanceof a firm such as economic conditions, political changes are disregarded in theresearch.In this research the association between directors’remuneration and firm performance is assessed depending on the 15 companieslisted in the Colombo Stock Exchange out of 295 listed companies for the years2012 – 2016.
From the list of market capitalization in ColomboStock Exchange, first 15 companies are selected excluding companies involved inbanking and finance industry as they are regulated by Central Bank and otherrelevant statutory Boards. Moreover by selecting first 15 companies in theorder of market capitalization, it is expected to reduce the effect of firmsize.Secondary data are collected from the CDs and website of CSE for the research. List prepared in order to the marketcapitalization is obtained from the database in Colombo Stock Exchange andfirst 15 companies select excluding finance and insurance industry companies. Thenusing the annual reports of the selected listed non-financial companies,relevant data are collected to carry out the research.
Directors’ compensationis disclosed under the notes to the financial statements as it is one of thestatutory requirements to be followed.In this research multiple linear regression analysisis expected to be used to investigate about the relationship and the extent ofimpact caused by directors’ remuneration on firm performance. Besides thatDescriptive Analysis is expected to use in analyzing the data spread andcorrelation analysis as a diagnosis test to diagnose the relationship betweenindependent and control variables.