TY - JOUR
T1 - Mergers, executive compensation and firm performance
T2 - The case of Africa
AU - Amewu, Godfred
AU - Paul Alagidede, Imhotep
N1 - Publisher Copyright:
© 2020 John Wiley & Sons, Ltd.
PY - 2021/3
Y1 - 2021/3
N2 - This study examines the impact of executive compensation on firm performance after successful mergers and acquisitions (M&A) in Africa between 2005 and 2016. Using accounting and financial performance measures and controlling for firm, deal and corporate governance factors, we show that executive compensation induced by M&A in Africa negatively affect the performance of listed firms. There is also evidence to support the impact of firm size, deal size, target destination, foreign ownership, diversification, outside board representation and executive ownership on the pay-performance nexus. Besides, corporate governance factors in Africa, generally, worsen firm performance, especially for cash and total pay.
AB - This study examines the impact of executive compensation on firm performance after successful mergers and acquisitions (M&A) in Africa between 2005 and 2016. Using accounting and financial performance measures and controlling for firm, deal and corporate governance factors, we show that executive compensation induced by M&A in Africa negatively affect the performance of listed firms. There is also evidence to support the impact of firm size, deal size, target destination, foreign ownership, diversification, outside board representation and executive ownership on the pay-performance nexus. Besides, corporate governance factors in Africa, generally, worsen firm performance, especially for cash and total pay.
UR - http://www.scopus.com/inward/record.url?scp=85091607647&partnerID=8YFLogxK
U2 - 10.1002/mde.3244
DO - 10.1002/mde.3244
M3 - Article
AN - SCOPUS:85091607647
SN - 0143-6570
VL - 42
SP - 407
EP - 436
JO - Managerial and Decision Economics
JF - Managerial and Decision Economics
IS - 2
ER -