Executive compensation, boards of directors, agency costs, and research and development of top furniture manufacturers

The purpose of the study was to investigate the executive compensation types, levels, and trends of publicly-traded furniture manufactures. Executive compensation positively impacted firm performance. Board of directors composition, remuneration, and activities were investigated for inferred levels of oversight in furniture manufacturers. Board performance positively impacted firm performance. Outside auditor costs were investigated to understand the practices and levels of internal and external agency costs associated with changing regulatory demands. Outside auditor costs negatively impacted firm performance. Research and development expenditures were investigated to understand the practice and levels of foreign activities, intellectual property protection, and growth strategies from competition. Foreign activity and intellectual property protection positively impacted firm performance. A Furniture Manufacturing Index (FMI) is offered to provide a more comprehensive measure of firm performance in congruence with general shareholder interests, furniture industry standards, and changing competitive environments.