Faculty Scholarship 1994 - Present

Comp Study on the Determinants of Top Exec Comp: Emp Investigation of the US and Japanese Firms

This paper investigates the determinants of top executive compensation in Japanese and US manufacturing firms. The results suggest top executive compensations, in general, have a significant and positive relationship with firm size (in sales) in both countries. Japanese CEO's compensation, however, shows a statistically significant relationship with accounting-based performances measures such as ROA and ROE. For the US manufacturing executives, the total compensations show a significantly positive relationship with market based performance measures such as market value of equity and market to book asset ratio.