Search results
1 – 10 of over 168000Mao-Feng Kao, Cih-Huei Jian and Chien-Hao Tseng
The purpose of this study is to explore the effect of managerial ability on voluntary environmental, social and governance (ESG) disclosure and assurance. By focusing on…
Abstract
Purpose
The purpose of this study is to explore the effect of managerial ability on voluntary environmental, social and governance (ESG) disclosure and assurance. By focusing on managerial ability, this study provides a more nuanced understanding of the factors influencing a firm’s ESG disclosure and assurance practices. This study contributes to a relatively unexplored area of study regarding the role of top management in promoting ESG reporting.
Design/methodology/approach
This study draws on a sample of publicly listed firms from 2014 to 2019 in Taiwan and applies the data envelopment analysis method to measure managerial ability. Heckman’s (1979) two-step model is used to estimate the primary models to prevent the results from being affected by possible bias because of self-selection.
Findings
The empirical evidence suggests that managerial ability is positively related to voluntary ESG disclosure and intention to seek third-party assurance of the report. Overall, managerial ability determines whether a firm will use voluntary ESG disclosure and assurance as a corporate strategy to respond effectively to stakeholders’ needs. The findings are robust after using alternative measures of managerial ability.
Practical implications
Investors and other stakeholders keen on seeking ESG information offered by companies could find the findings of this study valuable. By better comprehending how managerial competence impacts voluntary ESG disclosure and assurance, stakeholders may be better equipped to hold companies responsible for their ESG disclosure practices and make informed investment decisions.
Social implications
In the ESG decision-making process, managers with better abilities have a higher tendency to use voluntary disclosure and assurance as a part of the company’s sustainable policy.
Originality/value
Unlike previous studies of the determinant factors of ESG disclosure, which mainly explore factors at the national or corporate level, this study focuses on factors at the individual level (i.e. managerial ability) to fill the gap in the literature. This study also presents empirical evidence that corroborates the idea that managerial competence can influence not only ESG disclosure but also the voluntary assurance of ESG information.
Details
Keywords
Most prior studies investigating determinants of CEO compensation in nonprofit hospitals ignore how managerial ability affects compensation. This study aims to examine whether…
Abstract
Purpose
Most prior studies investigating determinants of CEO compensation in nonprofit hospitals ignore how managerial ability affects compensation. This study aims to examine whether CEOs with greater ability to manage corporate resources efficiently receive more payment in nonprofit hospitals.
Design/methodology/approach
This study employs a sample of 764 observations from 85 Pennsylvania nonprofit hospitals for the period 2010–2020.
Findings
This study finds a positive and statistically significant association between managerial ability and CEO compensation. The results are robust to alternative measures of managerial ability.
Practical implications
The measure of managerial ability proposed in this study could be used by boards of directors to quantify, evaluate and benchmark CEO ability. The results are also relevant to policymakers, stakeholders and the public interested in understanding the determinants of CEO compensation in nonprofits.
Originality/value
This study is among the first to use a more precise measure of managerial ability, which captures the unobserved manager-specific aspects of CEO ability. In addition, this study contributes to the literature by providing evidence that CEO's ability to manage hospital resources efficiently plays an essential role in designing executive compensation contracts.
Details
Keywords
Erdogan Koc, Senay Yurur and Mehtap Ozsahin
This study compared the results of self-report and ability-based tests of problem-solving abilities of 144 hospitality managers working at hotels and restaurants through an online…
Abstract
Purpose
This study compared the results of self-report and ability-based tests of problem-solving abilities of 144 hospitality managers working at hotels and restaurants through an online survey. In the first stage of the study, the managers were asked to fill in the self-report problem-solving ability scale by Tesone et al. (2010). In the second stage of the study, the managers were asked to respond to questions in a case-study-based problem-solving test.
Design/methodology/approach
Problem-solving is a key aspect of business process management. This study aims to investigate and compare hospitality managers' actual and claimed (self-report) problem-solving abilities. A lack of unawareness of the actual level of skills may be an important problem as managers who tend to have inflated self-efficacy beliefs are less likely to allocate resources, e.g. time, money and effort, to develop a particular skill or ability they lack. They are also more likely to take risks regarding that skill or ability.
Findings
The results of the study showed that there was a major difference between the results of the self-report test and the actual test. This meant that the managers who participated in the study had inflated self-efficacy beliefs regarding their problem-solving abilities, i.e. they operated under the influence of the Dunning–Kruger effect. The study showed that self-report tests that are commonly used in businesses in recruitment and promotion may not provide a correct level of people's abilities. In general, managers who have inflated self-efficacy beliefs are less likely to be interested in developing a particular skill due to the overconfidence arising from their inflated self-efficacy beliefs. The study showed that managers were less likely to allocate resources, e.g. time, money and effort, to develop a particular skill they lack and are more likely to take risks regarding that particular skill.
Practical implications
Managers in the hospitality industry appear to lack problem solving-abilities. While the hospitality managers assigned high marks for their problem-solving abilities in a self-report problem-solving scale and appeared to be performing significantly good overall in problem-solving, they performed poorly in an actual problem solving exercise. It is recommended that businesses rather than depending on self-report problem-solving scales, they should resort to ability-based scales or exercises that actually measure managers' problem-solving abilities. Also, as managers who had formal tourism and hospitality education performed poorly, tourism and hospitality programme managers at universities are recommend to review their syllabi and curriculum so as to help support their graduates' problem-solving abilities.
Originality/value
The study is original as no previous study compared managers' problem-solving abilities by using self-report and ability-based tests. The study has implications for researchers in terms of developing knowledge, ability and skill-based scales in the future. The study has also significant practical implications for the practitioners.
Details
Keywords
Arfah Habib Saragih and Syaiful Ali
This study examines the moderating effect of XBRL mandatory adoption on the association between managerial ability and corporate tax outcomes.
Abstract
Purpose
This study examines the moderating effect of XBRL mandatory adoption on the association between managerial ability and corporate tax outcomes.
Design/methodology/approach
This study used a quantitative method with panel data regression models using a sample of listed firms on the Indonesia Stock Exchange from 2010 to 2019.
Findings
The regression results indicate that XBRL adoption moderates the relationship between managerial ability on tax avoidance and tax risk. Firms with higher managerial ability have relatively greater tax avoidance practices and lower tax risk following XBRL adoption. In this study, the authors document unfavorable and unexpected consequences of XBRL in an emerging country.
Research limitations/implications
Results are from a sample of firms from one emerging country.
Practical implications
It becomes important and necessary to develop more and better taxonomies with standardized extensions related to taxes information in the XBRL financial reporting to support the tax administrator’s performance in assessing firms’ tax avoidance and tax risk. The authors underscore the importance of improving taxes tags, including tags from financial statements and the disclosure section. This study may also inform policymakers in other countries that more adequate tax tags are needed to leverage benefit from XBRL adoption in monitoring and assessing corporate tax avoidance and tax risk.
Originality/value
This study is among the first to test an explanation for the moderating role of XBRL adoption on the association between managerial ability and corporate tax avoidance and tax risk.
Details
Keywords
Michael L. Birzer and Delores E. Craig
Studies a large midwestern police agency to find out whether female applicants failed the physical ability test more often than male applicants, whether the tasks were job related…
Abstract
Studies a large midwestern police agency to find out whether female applicants failed the physical ability test more often than male applicants, whether the tasks were job related or whether there was violation of the “four‐fifths” rule of the Equal Employment Opportunity Commission, and whether the test measured critical tasks. Finds that the test has an adverse effect on women and is not job related.
Details
Keywords
Yan Luo and Linying Zhou
The purpose of this paper is to examine the effect of managerial ability on the tone of earnings announcements and on the market response to the tone.
Abstract
Purpose
The purpose of this paper is to examine the effect of managerial ability on the tone of earnings announcements and on the market response to the tone.
Design/methodology/approach
This study constructs a model of the determinants of earnings announcement tone in order to examine whether managerial ability plays a significant role in determining earnings announcement tone. Further, to test whether the market response to the tone of earnings announcements is affected by managerial ability, this study also examines the interactive term between earnings announcement tone and managerial ability. The tone of earnings announcements is measured using the spread in the proportion of positive and negative words. Managerial ability is measured using the managerial ability rank developed by Demerjian et al. (2012).
Findings
More able management teams use a more positive tone in their earnings announcements. Stock markets have more pronounced positive reactions to positive tones in the earnings announcements issued by companies with more able management teams.
Originality/value
This study identifies managerial ability as a previously unrecognized determinant of tone in earnings announcements and of the stock price reaction to earnings announcements.
Details
Keywords
Tamanna Dalwai, Ahmed Mohamed Habib, Syeeda Shafiya Mohammadi and Khaled Hussainey
This study investigates the impact of managerial ability and auditor report readability on the cost of debt and corporate liquidity in Omani-listed industrial companies.
Abstract
Purpose
This study investigates the impact of managerial ability and auditor report readability on the cost of debt and corporate liquidity in Omani-listed industrial companies.
Design/methodology/approach
The study uses data from the S&P Capital IQ database and audited annual reports published on Muscat Securities Market. The sample consists of 35 firms (175 firm-year observations) from 2015 to 2019. Managerial ability is measured using the data envelopment analysis proposed by Demerjian et al. (2012a, b). Auditor report readability is measured as a log of the auditor report digital file size proposed by Loughran and McDonald (2014).
Findings
This study finds that a company's managerial ability reduces the cost of debt lending support to upper echelons and agency theory. Highly able managers of industrial companies are associated with increased corporate liquidity consistent with the precautionary motive of holding cash. In addition, less-readable auditor reports contribute to higher debt costs and reduce corporate liquidity.
Originality/value
To the best of the authors’ knowledge, few studies have explored the influence of managerial ability and auditor reporting readability on firms' financial policy. For industrial-sector firms, this study demonstrates the managerial ability and readability of auditor readability as significant determinants of the cost of debt and corporate liquidity, especially during periods of uncertainty. Thus, the findings can be generalized to other non-financial sector firms in the country and the Middle East.
Details
Keywords
Nijs Bouman and Lianne Simonse
Engaging with customers and addressing unmet value have become increasingly challenging within multi-stakeholder environments of service innovation. Therefore, this paper aims to…
Abstract
Purpose
Engaging with customers and addressing unmet value have become increasingly challenging within multi-stakeholder environments of service innovation. Therefore, this paper aims to address this challenge by studying how strategic design abilities address unmet value in service engagement strategies.
Design/methodology/approach
The authors conducted a qualitative inductive study at a multinational corporation and interviewed marketing and design professionals on their innovation practices in service engagement strategies.
Findings
From the inductive analysis, this study identified three strategic design abilities that effectively contribute to addressing unmet value throughout the co-evolving process of service engagement: envisioning value, modelling value and engaging value. Based on this, this study proposes the emerging co-evolving loop framework of service engagement strategies.
Research limitations/implications
The limitation of this emerging theory is a lack of broad generalizability with mutual exclusivity or collective exhaustiveness across industries. A theoretical implication of the framework is the integration of strategic design and services marketing towards co-created engagement strategies.
Practical implications
The service engagement loop framework can be of great value to service innovation processes, for which an integrated, cross-functional approach is often missing.
Social implications
The findings further suggest that next to a methodological skillset, strategic design abilities consist of a distinct mindset.
Originality/value
This paper introduces strategic design abilities to address unmet value and proposes a novel co-evolving loop framework of service engagement strategies.
Details
Keywords
Italo Cesidio Fantozzi, Sebastiano Di Luozzo and Massimiliano Maria Schiraldi
The purpose of the study is to identify the soft skills and abilities that are crucial to success in the fields of operations management (OM) and supply chain management (SCM)…
Abstract
Purpose
The purpose of the study is to identify the soft skills and abilities that are crucial to success in the fields of operations management (OM) and supply chain management (SCM), using the O*NET database and the classification of a set of professional figures integrating values for task skills and abilities needed to operate successfully in these professions.
Design/methodology/approach
The study used the O*NET database to identify the soft skills and abilities required for success in OM and SCM industries. Correlation analysis was conducted to determine the tasks required for the job roles and their characteristics in terms of abilities and soft skills. ANOVA analysis was used to validate the findings. The study aims to help companies define specific assessments and tests for OM and SCM roles to measure individual attitudes and correlate them with the job position.
Findings
As a result of the work, a set of soft skills and abilities was defined that allow, through correlation analysis, to explain a large number of activities required to work in the operations and SCM (OSCM) environment.
Research limitations/implications
The work is inherently affected by the database used for the professional figures mapped and the scores that are attributed within O*NET to the analyzed elements.
Practical implications
The information resulting from this study can help companies develop specific assessments and tests for the roles of OM and SCM to measure individual attitudes and correlate them with the requirements of the job position. The study aims to address the need to identify soft skills in the human sphere and determine which of them have the most significant impact on the OM and SCM professions.
Originality/value
The originality of this study lies in its approach to identify the set of soft skills and abilities that determine success in the OM and SCM industries. The study used the O*NET database to correlate the tasks required for specific job roles with their corresponding soft skills and abilities. Furthermore, the study used ANOVA analysis to validate the findings in other sectors mapped by the same database. The identified soft skills and abilities can help companies develop specific assessments and tests for OM and SCM roles to measure individual attitudes and correlate them with the requirements of the job position. In addressing the necessity for enhanced clarity in the domain of human factor, this study contributes to identifying key success factors. Subsequent research can further investigate their practical application within companies to formulate targeted growth strategies and make appropriate resource selections for vacant positions.
Details
Keywords
Chandrakantan Subramaniam, Hassan Ali and Faridahwati Mohd Shamsudin
This paper aims to determine the influence of physical ability on initial emergency response performance among emergency response teams.
Abstract
Purpose
This paper aims to determine the influence of physical ability on initial emergency response performance among emergency response teams.
Design/methodology/approach
In an emergency incident, emergency responders are involved in vigorous physical activities. Previous attempts have demonstrated that job performance of emergency responders depends a great deal on their ability to perform strenuous physical activity. This paper examines the influence of physical ability namely weight, height, and cardiovascular endurance on emergency response performance among fire fighting teams in Malaysia. Emergency response performance was defined as team member's speed in responding to emergency situations. Data on team member's physical ability and emergency response time were collected for the duration of five months. The distance from the waiting room to the fire truck in each selected fire station was used to measure performance.
Findings
This study found that the team with higher average weight and cardiovascular endurance level had better initial response to emergency situations, contrary to the research hypothesis. But it is speculated that the relationship could be further understood by considering the proportion of fat in the body. The relationship between cardiovascular endurance and initial emergency response performance further validates and justifies the use of physical fitness test as a criterion for job performance of fire fighters.
Originality/value
This paper offers empirical evidence of emergency response performance in Malaysia. Specifically, it presents findings on the influence of physical ability measures on initial emergency response performance from a team perspective. In addition, the emergency response performance was measured by the distance traveled by the responders, which serves as a meaningful performance indicator.
Details