What determines directors' remuneration in Malaysia?

This study aims to provide recent evidence on factors influencing directors' remuneration in Malaysia. Using a large number of samples, 2,535 firm-year observations, from year 2009 to 2011, this study examines whether firm-specific characteristics such as the firmsize, profitability, leverage and growth influence the total remunerations paid to the directors. The study includes control for board size, the number of board meeting, industry and year effects. The regression estimates based on panel data show that firm size and profitability are significant determinants of directors'remunerations. Further analyses using cross sectional approach produce qualitatively similar results.