Description of variables
| Acronym | Variable | Description | Source |
|---|---|---|---|
| Panel A: dependent variable | |||
| EDRS | Short-term executive directors’ remuneration | The natural logarithm of average short-term EDR | IAR |
| EDRL | Long-term executive directors’ remuneration | The natural logarithm of average long-term EDR | IAR |
| EDRI | Incentive-based executive directors’ remuneration | EDRS plus EDRL | IAR |
| Panel B: independent variables ‒ continuous | |||
| EPS | Headline earnings per share | Ratio between the normalised headline earnings attributable to ordinary shareholders to weighted average outstanding ordinary shares | Iress |
| ROA | Return on assets | Ratio between profit before interest and tax, depreciation, and amortisation to total assets | Iress |
| TSR | Total shareholder return | Ratio between share price at year-end plus (dividend yield times share price at beginning of the year) to share price at the beginning of the year | Iress |
| TQ | Tobin’s Q | Ratio between equity (market value) and book value of debt to total assets (at replacement cost) | Iress |
| Panel B: independent variable – dichotomous | |||
| King IV | Whether the King IV report on corporate governance was applicable | Dummy variable equal to 1 for 2019–2022 financial year ends, 0 for 2012–2018 financial year ends | |
| Panel C: control variables – continuous | |||
| LEV | Leverage | Ratio between total debt and total owners’ interest | Iress |
| GRO | Growth | Revenue current accounting period less revenue previous accounting period divided by the revenue in the previous accounting period | Iress |
| SIZE | Firm size | The natural logarithm of total assets | Iress |
| DSHARE | Directors’ shareholding | The percentage of direct, indirect, beneficial, and non-beneficial shareholding held by executive directors of the firm | Iress |
| ISHARE | Institutional shareholding | The percentage shares of direct or beneficial nature held by institutional investors which include firms, retirement funds and insurance firms, investment banks and other financial institutions | Iress |
| Panel C: control variable – dichotomous | |||
| BSHARE | Block shareholding | Dummy variable equal to 1 if a single shareholder owns more than 5% of the issued shares, 0 otherwise | Iress |
| Acronym | Variable | Description | Source |
|---|---|---|---|
| EDRS | Short-term executive directors’ remuneration | The natural logarithm of average short-term EDR | IAR |
| EDRL | Long-term executive directors’ remuneration | The natural logarithm of average long-term EDR | IAR |
| EDRI | Incentive-based executive directors’ remuneration | EDRS plus EDRL | IAR |
| EPS | Headline earnings per share | Ratio between the normalised headline earnings attributable to ordinary shareholders to weighted average outstanding ordinary shares | Iress |
| ROA | Return on assets | Ratio between profit before interest and tax, depreciation, and amortisation to total assets | Iress |
| TSR | Total shareholder return | Ratio between share price at year-end plus (dividend yield times share price at beginning of the year) to share price at the beginning of the year | Iress |
| TQ | Tobin’s Q | Ratio between equity (market value) and book value of debt to total assets (at replacement cost) | Iress |
| King IV | Whether the King IV report on corporate governance was applicable | Dummy variable equal to 1 for 2019–2022 financial year ends, 0 for 2012–2018 financial year ends | |
| LEV | Leverage | Ratio between total debt and total owners’ interest | Iress |
| GRO | Growth | Revenue current accounting period less revenue previous accounting period divided by the revenue in the previous accounting period | Iress |
| SIZE | Firm size | The natural logarithm of total assets | Iress |
| DSHARE | Directors’ shareholding | The percentage of direct, indirect, beneficial, and non-beneficial shareholding held by executive directors of the firm | Iress |
| ISHARE | Institutional shareholding | The percentage shares of direct or beneficial nature held by institutional investors which include firms, retirement funds and insurance firms, investment banks and other financial institutions | Iress |
| BSHARE | Block shareholding | Dummy variable equal to 1 if a single shareholder owns more than 5% of the issued shares, 0 otherwise | Iress |
Note(s): IAR – Integrated Annual Report
Source(s): Authors’ own creation