Firm valuations and board compensation: Evidence from alternative banking models

This study examines whether the board of directors' compensation schemes affect stock market valuations for banks in a dual banking system (Islamic and conventional banks). We employ an international sample 11 countries period 2010–2015. Our results show that full (i.e. irrespective bank type), has significant positive impact on valuations. For different types, we find effect holds only banks, with insignificant evidence their Islamic counterparts. We, also, examine Shari'ah supervisory board's value. investors positively perceived priced information related to this boards' compensation.