This study investigates the impact of board incentives as proxied by directors` remuneration on the financial performance of listed textile companies in Bangladesh. Using Generalized Method of Moments (GMM) and data pertaining to listed textile companies of Dhaka Stock Exchange (DSE) during the period from 2011 to 2017 (resulting in a total of 140 firm-year observations), we have estimated the firm performance equation involving directors’ remuneration and board independence as the independent variables and some other control variables like firm age, size, leverage, and operating efficiency. The results reveal that there is a negative association between board remuneration and firm performance. In addition, this study finds no significant relationship between board independence and firm performance of the sample firms. Our findings suggest that higher pay to the board does not stimulate higher firm performance and, in turn, results in shareholders getting nothing in return from this and, hence, is a matter of great concern for them. Moreover, our results indirectly indicate that currently directors` remuneration in Bangladesh is not aligned with the firm performance, which has been emphasized in extant corporate governance literature. Besides, this paper further raises questions about the effectiveness of independent directors in the boards of textile firms in Bangladesh.

Abstract
1. Introduction
2. The Context of Bangladesh
3. Literature Review and Hypotheses
    3.1. Board of Directors’ Remuneration
    3.2. Percentage of Independent Directors
    3.3. Age of the Firm
    3.4. Leverage of the Firm
    3.5. Efficiency of the Firm
    3.6. Size of the Firm
4. Methodology of the Study
    4.1. Data Source and Econometric Model
    4.2. Definition of the Variables
5. Results and Discussion
    5.1. Descriptive Statistics
    5.2. Correlation Analysis
    5.3 Estimation of the Model
6. Conclusions
References

• Sharmin AKTER(Department of Accounting & Information Systems, Faculty of Business Studies, Jashore University of Science & Technology) Corresponding Author.
• Md. Hossain ALI(Department of Accounting & Information Systems, Faculty of Business Studies, Jashore University of Science & Technology)
• Md. Thasinul ABEDIN(Department of Accounting, University of Chittagong)
• Balal HOSSAIN(MBA (Finance & Business Analytics),Texas Christian University)