CEO Compensation, firm profitability and risk-taking: Evidence from selected non-financial listed Tunisian companies

This paper examines the impact of CEO compensation on both firm profitability and risk-taking, from a sample 61 Tunisian non-financial listed companies, during period 2010-2018. For robustness, we have used three different measures; which are ROA, ROE, Tobin’s Q. Besides, investigated executive returns volatility. Moreover, controlled for sector interaction to obtain more pertinent results. Consistent with agency theory, evidence suggests that an increase in remuneration would improve return equity, but affects Q increases firm's risk-taking. findings suggest when control sector, improvThis amends Q, risk-taking level. Finding be useful companies develop thinking about most effective governance practices able ensure transparent policy, reassure investors, stock-market value. e