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Article
Publication date: 20 August 2018

How to strike a balance between CEO compensation and strategic risk? A longitudinal analysis

Bradley Olson, Satyanarayana Parayitam, Bradley Skousen and Christopher Skousen

The purpose of this paper is to examine the relationships between CEO ownership, stock option compensation, and risk taking. The authors include important CEO power…

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Abstract

Purpose

The purpose of this paper is to examine the relationships between CEO ownership, stock option compensation, and risk taking. The authors include important CEO power variables as moderators.

Design/methodology/approach

The paper uses a longitudinal regression analysis. In addition, the paper includes interactional plots for further interpretation.

Findings

The results indicate that CEO ownership reduces risk taking, while there is a partial support that stock options increase risk taking. CEO tenure is a powerful moderator that decreases risk taking in both CEO ownership and CEO stock option scenarios. Board independence, counter to the hypothesis in this paper, may encourage risk taking.

Research limitations/implications

The findings in this paper provide support for the inclusion of CEO power variables in CEO compensation studies. However, the study examines large publicly traded companies; thus, all findings may not be applicable to small- and medium-sized companies.

Originality/value

Scholars have encouraged more complex CEO compensation models and the authors have examined both main effect and interaction models.

Details

Journal of Strategy and Management, vol. 11 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/JSMA-08-2017-0055
ISSN: 1755-425X

Keywords

  • CEO compensation
  • Strategic risk
  • Longitudinal analysis

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Article
Publication date: 11 February 2019

Family influence mediates the relation between helicopter-parenting and millennial work attitudes

Shelomi B. Gomes and Jacqueline K. Deuling

Drawing from life course theory, the purpose of this paper is to investigate the mediating role of family influence on career development (FICD) on the relationship of…

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Abstract

Purpose

Drawing from life course theory, the purpose of this paper is to investigate the mediating role of family influence on career development (FICD) on the relationship of helicopter-parenting (over-parenting behavior) and US millennials’ work attitudes.

Design/methodology/approach

In Study 1 (n=268), confirmatory factor analysis was tested on all scales to derive fit models. Mediation analyses using PROCESS (Preacher and Hayes, 2004) were conducted on Study 1 and Study 2 (n=196) on survey collected data sets.

Findings

Capturing life course theorists’ proposition that parental involvement now extends itself through childhood and into millennials’ adulthood, results from both studies indicate helicopter-parenting is related to FICD. Further, for both studies, information support (FICD factor) positively mediates the relationship between helicopter-parenting and, affective commitment and job satisfaction, and negatively mediates the relationship between helicopter-parenting and turnover intentions. Additionally, direct effects on helicopter-parenting on work outcomes were found in both studies.

Practical implications

CEOs and managers seem perplexed on how to manage millennial workers. Understanding the co-occurring positive and negative effects of the millennial-parent relationship on work attitudes can help alleviate this conundrum to create better supervision, retention and engagement of millennial workers.

Originality/value

This study contributes to the sparse empirical literature on millennial’s work attitudes and is the first to provide empirical evidence of the role parents play in shaping millennial’s work attitudes. The findings highlight the concerns CEOs have in managing their millennial workers via their parental relationship and provide insightful management strategies.

Details

Journal of Managerial Psychology, vol. 34 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JMP-12-2017-0450
ISSN: 0268-3946

Keywords

  • Career development
  • Organizational commitment
  • Job satisfaction
  • Generations

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Article
Publication date: 1 July 2006

Managing aggression in organizations: what leaders must know

Bradley John Olson, Debra L. Nelson and Satyanarayana Parayitam

The paper aims to incorporate a sensemaking framework that augments research on organizational justice and aggression.

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Abstract

Purpose

The paper aims to incorporate a sensemaking framework that augments research on organizational justice and aggression.

Design/methodology/approach

Sensemaking is used as a basis for designing an aggression model. Organizational justice and attribution theory are key components of sensemaking triggers. In addition, the model includes both organizational and personal influences on the sensemaking process. Finally, information processing theory provides explanations as to the importance of retrospect in sensemaking.

Findings

The sensemaking framework: presents the workplace antecedents of the sensemaking process; specifies the sensemaking triggers that provoke aggressive responses; identifies the individual and organizational factors that affect both the sensemaking triggers and the link between triggers and aggressive behaviors; and incorporates a full range of aggressive behaviors (e.g. violence, verbal abuse, or refusal to return telephone calls) that occur in organizations.

Practical implications

The paper proposes that by taking a sensemaking perspective, leaders can understand and proactively manage aggressive behavior in the workplace.

Originality/value

This paper provides a comprehensive aggression model that can assist both researchers and practitioners regarding the sensemaking process and its role in workplace aggression.

Details

Leadership & Organization Development Journal, vol. 27 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/01437730610677981
ISSN: 0143-7739

Keywords

  • Organizational behaviour
  • Violence
  • Workplace
  • Bullying

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Article
Publication date: 29 July 2014

Political behavior, trustworthiness, job satisfaction, and commitment: An empirical study

Bradley Olson, Yongjian Bao and Satyanarayana Parayitam

The purpose of this paper is to examine the effects trustworthiness can have on the perception of organizational politics and organizational outcomes. Most studies on…

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Abstract

Purpose

The purpose of this paper is to examine the effects trustworthiness can have on the perception of organizational politics and organizational outcomes. Most studies on organizational politics examine the negative effects of organizational politics on organizational outcomes such as organizational commitment. This study focuses on moderators that can decrease these negative effects.

Design/methodology/approach

The organization landscape consists of Chinese organizations, with a total of 249 employees who were surveyed in 2009. Multiple and moderated hierarchical regression were used in the analyses.

Findings

The results show that trustworthiness moderates the negative effects of organizational politics on job satisfaction, affective commitment and normative commitment. These findings support the importance of combating the negative effects that are in most, if not all, organizations.

Originality/value

This study uses as its sample an Asian culture that has been under-represented in organizational politics studies, as the majority of these studies are conducted in North America. Yet, organizational politics likely occurs in organizations worldwide.

Details

Chinese Management Studies, vol. 8 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/CMS-09-2012-0129
ISSN: 1750-614X

Keywords

  • Politics
  • Trustworthiness

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Article
Publication date: 16 February 2010

Task conflict, relationship conflict and agreement‐seeking behavior in Chinese top management teams

Satyanarayana Parayitam, Bradley J. Olson and Yongjian Bao

This paper aims to investigate the effects task conflict has on agreement seeking behavior and interpersonal conflict. In addition, it seeks to examine the moderating role…

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Abstract

Purpose

This paper aims to investigate the effects task conflict has on agreement seeking behavior and interpersonal conflict. In addition, it seeks to examine the moderating role of trust on the effects of agreement seeking behavior and interpersonal conflict on the styles of handing conflict, namely, avoidance, collaboration, and third party intervention.

Design/methodology/approach

Using a structured survey instrument, this paper gathered data from 252 senior executives from Mainland China and analyzed these using the regression technique to see how interpersonal trust between executives moderates the relationship between conflict and conflict response mechanisms. The study also investigates the relationship between task and relationship conflict as well as agreement‐seeking behavior among Chinese executives in Mainland China.

Findings

Results show that the presence of interpersonal trust among executives affects the conflict responses for the benefit of organization. The results show that task conflict in top management teams is positively related to relationship conflict and negatively related to agreement‐seeking behavior. The data support the view that intra‐group trust moderates the relationship between agreement‐seeking behavior and collaborating responses such that high‐trust groups will have greater collaboration than low‐trusting teams. Results also support that intra‐group trust moderates the relationship between agreement‐seeking behavior and third party responses such that high‐trust groups will have greater third‐party responses than low‐trusting teams.

Research limitations/implications

Self‐report measures may have some inherent social desirability bias. Despite this potential weakness, this study examines Chinese executives and therefore provides insights into top management team literature.

Practical implications

This study contributes to both practicing managers as well as to strategic management literature. This study suggests that administrators need to focus on interpersonal trust while dealing with the outcomes of task and relationship conflict.

Originality/value

Although the study is related to Chinese executives, the findings from the study, that task conflict has its affect on interpersonal conflict and agreement‐seeking behavior, contribute to the strategic decision making literature.

Details

International Journal of Conflict Management, vol. 21 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/10444061011016641
ISSN: 1044-4068

Keywords

  • Conflict
  • Conflict management
  • Conflict resolution
  • Behavior
  • Senior management
  • China

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Article
Publication date: 3 April 2007

Strategic decision‐making in the healthcare industry: the effects of physician executives on decision outcomes

Satyanarayana Parayitam, Lonnie D. Phelps and Bradley J. Olson

Research on strategic decision‐making has emphasized the importance of team decision‐making as it brings the benefits of synergy. Literature on healthcare is silent on the…

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Abstract

Purpose

Research on strategic decision‐making has emphasized the importance of team decision‐making as it brings the benefits of synergy. Literature on healthcare is silent on the role of professional doctors in the strategic decision‐making process and their impact on decision outcomes. The purpose of the present paper is to empirically examine the outcomes of decisions when physician executives were involved in strategic decision‐making process in healthcare organizations.

Design/methodology/approach

Using a structured survey instrument, this paper gathered data from 361 senior executives from 109 hospitals in USA and analyzed the data using regression techniques on whether the presence of physicians in strategic decision‐making processes enhanced decision quality, commitment, and understanding.

Findings

Results showed the presence of professional doctors in the decision‐making process enhances commitment and decision quality in healthcare organizations.

Research limitations/implications

Only the healthcare industry was considered. Self‐report measures may have some inherent social desirability bias.

Practical implications

This study contributes to both practicing managers as well as to strategic management literature. This study suggests that healthcare administrators need to engage physician executives in strategic decision‐making to have successful decision outcomes.

Originality/value

To the extent strategic decision‐making process is similar in other industries, the findings can be generalizable across other industries.

Details

Management Research News, vol. 30 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/01409170710736329
ISSN: 0140-9174

Keywords

  • Decision making
  • Strategic management
  • Medical management
  • Health services
  • United States of America

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Article
Publication date: 1 March 2009

Assessing the impact of perceived school board effectiveness on financing k-12 education in tennessee

P. Edward French

Education funding has been a significant concern of both providers and consumers of the educational system in the United States for many generations. This expenditure…

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Abstract

Education funding has been a significant concern of both providers and consumers of the educational system in the United States for many generations. This expenditure accounts for the single largest allocation in most state and local government budgets; and scholars, practitioners, and the general public often question whether or not American students are getting the most “bang for their buck”. While school board members are not responsible for the allocation of revenues from federal, state, and local governments, these individuals are directly responsible for the distribution of these funds for the operation of local schools within their districts. The purpose of this study is to determine if school board members in Tennessee understand the role they play in allocating educational finances which ultimately influence student achievement. The results of this analysis suggest that the perceptions of school board members in Tennessee are not always reflective of the actual outcomes when real data is examined regarding school district expenditures.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 21 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JPBAFM-21-01-2009-B007
ISSN: 1096-3367

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Article
Publication date: 30 August 2011

Ex ante variables and carve‐out parent returns

Thomas H. Thompson

The purpose of this paper is to provide a comprehensive initial evaluation of the changing issuer objective and partial price adjustment hypotheses as applied to carve‐out…

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Abstract

Purpose

The purpose of this paper is to provide a comprehensive initial evaluation of the changing issuer objective and partial price adjustment hypotheses as applied to carve‐out parent initial and three‐year returns for the period 1988‐2006.

Design/methodology/approach

Using five primary variables: the percentage of the subsidiary retained by the parent, the ratio of offering size to parent market capitalization, filing range adjustments, the percentage of the offering used to retire subsidiary debt or to pay dividends, and the CBOE volatility index to predict initial and three‐year returns, the paper shows that ex ante variables can predict carve‐out parent initial and three‐year returns.

Findings

The paper shows that public information known prior to the offer date influences 7.52 percent of the variation in announcement, 5.57‐38.31 percent of the variation in ex‐date and 6 percent of the variation in three‐year market‐adjusted equity carve‐out parent returns.

Originality/value

This study makes several contributions to the literature. Although prior studies focus on ex post determinants of equity carve‐out returns, this study is the first to explore ex ante predictors of equity carve‐out parent returns. The implications of these results are that publicly available information known prior to the carve‐out offering date can influence market‐adjusted initial and three‐year parent carve‐out returns and can explain 6‐17 percent of the variation.

Details

Managerial Finance, vol. 37 no. 10
Type: Research Article
DOI: https://doi.org/10.1108/03074351111161574
ISSN: 0307-4358

Keywords

  • Carve‐outs
  • Spin‐offs
  • Divestitures
  • Equity capital
  • Corporate ownership
  • Economic returns

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Article
Publication date: 6 February 2009

Telemedicine: a process enabler for enhanced healthcare delivery systems

Archie Lockamy and Douglas L. Smith

The purpose of this paper is to provide a conceptual framework along with underlying propositions for the design and deployment of telemedicine projects which provide…

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Abstract

Purpose

The purpose of this paper is to provide a conceptual framework along with underlying propositions for the design and deployment of telemedicine projects which provide healthcare organizations with strategic benefits.

Design/methodology/approach

Field research conducted at four healthcare organizations along with academic literature in the areas of telemedicine and process management form the basis for the conceptual framework and propositions provided in this paper.

Findings

Telemedicine can be used as a process enabler for enhanced healthcare‐delivery systems. However, there are several challenges which must be considered prior to its implementation. The framework and propositions provided in the paper can be used to facilitate successful telemedicine project deployments.

Research limitations/implications

The framework and propositions are derived from a small sample and must be validated through more rigorous empirical research studies.

Practical implications

The concepts presented in the paper can be used by healthcare planners to increase the likelihood of telemedicine deployment success within their organizations.

Originality/value

This paper begins to fill a void in the literature concerning how telemedicine can be used as a process enabler for improving healthcare‐delivery systems.

Details

Business Process Management Journal, vol. 15 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/14637150910931433
ISSN: 1463-7154

Keywords

  • Communication technologies
  • Health care
  • Medical treatment
  • Teleconferencing
  • Service delivery

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Article
Publication date: 1 March 2017

Reforms in public sector accounting and budgeting in Indonesia (2003-2015): confusions in implementation

Tri Jatmiko Wahyu Prabowo, Philomena Leung and James Guthrie

This paper examines whether public sector reforms in a developing country is consistent with the principles of new public management (NPM). It examines whether Indonesian…

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Abstract

This paper examines whether public sector reforms in a developing country is consistent with the principles of new public management (NPM). It examines whether Indonesian public sector reforms from the late 1990s to 2015, specifically the adoption of accrual accounting, are motivated by NPM philosophy. Reviewing and analysing Government regulations and reports, the study finds that the reforms are an attempt to implement NPM, specifically in relation to five financial management aspects (i.e. market-oriented, budgeting, performance management, financial reporting and auditing systems). However, the reforms are inconsistent with the NPM philosophy of efficiency and effectiveness in public service provisions. By requiring the use of the existing system, the reforms actually created inefficiency. This research is novel in investigating the gap between 'ideal concepts' and examining practices in an emerging country context.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 29 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JPBAFM-29-01-2017-B005
ISSN: 1096-3367

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