Abstract Book of the 9th International Academic Conference on Management and Economics
Year: 2025
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Does Ownership Impact Executive Pay Ratio?
Prof. Dr. Arun Kumar Tripathy, Dr Nidhi S Bisht
ABSTRACT:
Our study investigates the relationship between ownership and executive pay ratio in a sample of the top 500 Indian listed companies. Drawing on the theory of governance mobility, our results show that companies with foreign ownership have lower pay ratios than domestically owned companies. We contend that foreign ownership acts as a mechanism for superior governance, and these companies adapt their governance frameworks and procedures to enhance their credibility with stakeholders with diverse expectations regarding governance standards. Our findings add to the limited research on the impact of corporate governance on non-financial outcomes, pay ratio literature, and pay dispersion beyond the Western context by providing evidence from an emerging economy in the global south.
Keywords: corporate governance, ownership, pay ratio