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This study aims to examine the effect of CEO compensation risk, as measured by the proportion of equity-based pay (option and stock awards) relative to total compensation and pay sensitivity to stock volatility, on CEO pay for luck asymmetry. This paper also empirically examines CEO compensation risk as a mediating variable between the regulatory changes and CEO pay for luck asymmetry.

This paper test the proposed two hypothesis that CEO compensation risk is positively associated with the degree of CEO pay for luck asymmetry; and the pay related regulations implemented around 2006 could mitigate the degree of CEO pay for luck asymmetry using the fixed-effects regression models.

Consistent with the managerial talent retention hypothesis, this paper finds that CEO compensation risk, as measured by the equity-based pay as a proportion of CEO total compensation and CEO pay sensitivity to stock volatility, is positively associated with the degree of CEO pay for luck asymmetry. In addition, this paper find that CEO pay for luck asymmetry is significantly reduced by the major regulatory changes on executive compensation implemented around 2006.

This study is among the very few studies exploring the impact of CEO compensation risk on pay for luck asymmetry in the literature. While the major purpose of the widely used stock options is to align executive interests and shareholder values, it also tends to increase the risk level of CEO compensation. So, a well-designed CEO pay package should protect risk-averse CEOs from bad luck for the retention purpose, which is also beneficial to shareholder wealth maximization. Therefore, future research on executive compensation needs to examine the issue from various perspectives.

For board of directors who is responsible for the compensation of CEOs, it is necessary to consider a broad range of factors when designing an optimal CEO pay package.

The findings on the impact of regulations on CEO pay for luck asymmetry suggest that the executive-pay-related regulations around 2006 have indeed achieved some of their intended goals to significantly lower pay for nonperformance asymmetry, whereby CEO pay sensitivity to stock volatility has been identified as a major mediating variable.

This study contributes to the literature on executive pay for luck asymmetry in several perspectives. First, this paper finds that CEO compensation risk has a positive impact on the degree of CEO pay for luck asymmetry. Second, this paper finds that the CEO pay for luck asymmetry has been mitigated after 2006 when various regulatory changes on executive compensation began to be implemented in the USA. To the best of the authors’ knowledge, this study is among the very few studies investigating these issues in the literature.

In the context of an evolving digital-based global economy, this study aims to investige the impact of digital transformation (DT) on a firm’s internal control (IC) quality. It also explores how the personal traits of (CEOs) – such as age, gender and educational background – intersect with DT to shape the IC quality in various types of state-owned enterprises (SOEs).

The study uses the data from China A-shares non-financial enterprises, listed on Shanghai and Shenzhen stock exchanges between 2007 and 2020. Using the fixed effect regression method alongside various statistical techniques, such as propensity score matching, alternative analysis and instrumental variables analysis, yields robust findings. These methods effectively address issues related to functional form misspecification and potential biases from omitted explanatory variables.

The findings reveal a positive impact of DT on firm IC quality, and this impact is more pronounced in firms when the CEO is female, young and possesses a higher level of education. Notably, the study also distinguishes between central and local state-owned enterprises (SOEs), highlighting that DT has a greater influence on IC quality in central SOEs, where CEOs often have higher political ranks and closer to government monitoring. Overall, the findings are robust and consist to alternative variable and other statistical methods.

Following are the significant implications for both academia and business. First, firms that effectively adopt DT to enhance IC not only gain a strategic advantage over competitors but also establish efficient risk management practices and a robust IC system. Second, better IC resulting from DT can enhance investor and stakeholder confidence. This is particularly important for publicly traded companies, where investors and analysts closely scrutinize the robustness of IC systems. Third, DT could result in cost savings over time, as automation and streamlined processes may reduce the need for manual efforts and resource-intensive tasks associated with IC.

The findings are contributed to the literature in multiple ways. It enhances our comprehension of the intricate DT-IC quality relationship, and provides valuable insights into the transformative impact of DT on organizational operations and risk management. It also introduces a novel perspective by investigating how CEOs personal traits intersect with DT to shape IC quality, contributing to upper echelons theory. Furthermore, it expands the discussions on firm ownership by considering the types of SOEs (central vs. local), in the DT-IC quality context.

Previous studies considered effectuation and causation as alternative decision-making strategies used by entrepreneurs to navigate uncertainty, having various individual- and firm-level antecedents. This study aims to broaden our understanding of individual-level antecedents by examining the role of Chief Executive Officer (CEO) temporal focus in decision-making processes in small and medium-sized enterprises (SMEs).

Based on a multiple case study research design, the authors empirically analyse 16 Russian SMEs to uncover how the CEO temporal focus relates to the choice of effectuation/causation strategies under uncertainty.

CEOs with past orientation tend to adopt causation, future-oriented CEOs adhere to effectuation, while present-focused CEOs rely on both decision-making strategies (i.e. ambidexterity). Prior crisis-related experience is the underlying mechanism behind the relationship between CEO temporal orientation and effectuation/causation strategies. The authors formulate several propositions that may be tested in future studies in the field.

The contribution of this study consists in uncovering a new individual-level antecedent of effectuation/causation under uncertainty (i.e. CEO temporal focus) and suggesting that prior crisis experience acts as a mechanism underlying this relationship. The authors advance the strategic leadership theory by underscoring the CEO’s role in decision-making processes in SMEs.

The purpose of this study is to examine the nexus between geopolitical risk, female CEOs and firm performance through a cross-country analysis.

The study period ranges from 2014 to 2021, and the dataset uses an unbalanced panel of 4,955 companies across 50 nations comprising both developed and emerging economies. Our study has employed a fixed-effect panel regression model, to examine this issue. This analysis was supplemented with applying a dynamic panel technique, i.e. System generalized method of moments (SGMM), to address any endogeneity problems.

The study reveals that female CEOs positively impact firm performance, while geopolitical risks decrease it. Gender plays a significant role in this relationship, with firms with female executives tending to make conservative financial decisions amidst increased risks. The study also shows that geopolitical threats (GPRT) have a greater impact on female CEOs-firm performance relationship in developed nations.

This study is a new investigation that explores the intertwining relationship between geopolitical risk, female CEOs and firm performance across the countries.

Prior research suggests a chief executive officer’s (CEO) background is highly predictive of the strategic predisposition. This paper aims to focus on the need for accuracy in the categorization of CEO background and the impact that modest, nuanced changes in coding definitions yield.

This study evaluates the use of biographic and demographic information of CEOs to provide a more nuanced and expansive approach to understanding the influence of legal education and experience on business strategy. Propositions as to more nuanced coding definitions are developed. Building upon Fligstein (1987), a proof-of-concept example is developed using CEO information available for 2010. That data is then reexamined using an altered method (Modified Fligstein) to discern changes in the number of CEOs contained within the background categories.

The two categorizations performed reveal that substantial differences in the number of CEOs coded into a category can come from relatively small changes in categorical definitions. In comparing the first categorization to the second, each of the vocational categories experienced a change, ranging from a decrease of 11.1% to an increase of 142.9%.

This study informs both theory and practice by increasing the efficacy of the use of biographic and demographic information to assess the strategic orientation of executives. It postulates and demonstrates that simple changes in the categorical definition produce significant changes and can skew empirical results that reduce the utility of prior studies.

This study aims to explore the relationship between foreignness and CEO pay.

This study combines cross-sectional and time series observations analyzed with panel data methodology in a sample of 59 firms listed in the Spanish IBEX-35 index between 2006 and 2020.

International ownership influences CEO underpayment and foreign sales influence CEO overpayment.

CEO pay is susceptible to being influenced by foreign non-American variables. An appropriate understanding of these factors can contribute to discussing policies that balance the level of CEO payment in large public firms.

Research on internationalization and CEO pay is scarce. A handful of studies confirm the link between Americanization and executive compensation in Europe. However, the authors still do not know if the level of CEO pay is influenced by non-American exposure. To do this, the authors test the effect of firm – ownership, sales, board – and individual – CEO – exposure to international, non-US environments on the level of over/underpayment of CEOs in a sample of Spanish firms.

Explorar la relación entre la extranjería y la remuneración de los CEO.

Combinamos observaciones transversales y de series temporales analizadas con metodología de datos de panel en una muestra de 59 empresas del índice IBEX-35 español entre 2006 y 2020.

La propiedad internacional influye en la remuneración insuficiente de los CEO y las ventas en el extranjero influyen en la remuneración excesiva de los CEO.

La investigación sobre la internacionalización y la remuneración de los CEO es escasa. Un puñado de estudios confirman el vínculo entre la americanización y la remuneración de los ejecutivos en Europa. Sin embargo, todavía no sabemos si el nivel de remuneración de los CEO está influenciado por la exposición no estadounidense. Para ello, probamos el efecto de la exposición de la empresa (propiedad, ventas, consejo) y del individuo (CEO) a entornos internacionales, no estadounidenses, sobre el nivel de sobre/insuficiente remuneración de los CEO en una muestra de empresas españolas.

La remuneración de los CEO es susceptible de verse influenciada por variables extranjeras no estadounidenses. Una comprensión adecuada de estos factores puede contribuir a discutir políticas que equilibren el nivel de remuneración de los CEO en las grandes empresas públicas.

Explorar a relação entre estrangeirismo e remuneração de CEO.

Combinamos observações transversais e de séries temporais analisadas com metodologia de dados em painel em uma amostra de 59 empresas listadas no índice espanhol IBEX-35 entre 2006 e 2020.

A propriedade internacional influencia o sub pagamento de CEO e as vendas no exterior influenciam o super pagamento de CEO.

Pesquisas sobre internacionalização e remuneração de CEO são escassas. Alguns estudos confirmam a ligação entre americanização e remuneração de executivos na Europa. No entanto, ainda não sabemos se o nível de remuneração de CEO é influenciado pela exposição não americana. Para fazer isso, testamos o efeito da exposição da empresa - propriedade, vendas, conselho - e individual - CEO - a ambientes internacionais, não americanos, no nível de super/sub pagamento de CEOs em uma amostra de empresas espanholas.

A remuneração de CEO é suscetível a ser influenciada por variáveis estrangeiras não americanas. Uma compreensão adequada desses fatores pode contribuir para discutir políticas que equilibram o nível de remuneração de CEO em grandes empresas públicas.

This study aims to reveal the mechanism of CEO overconfidence in the digital transformation of specialized, refined, distinctive and innovative (SRDI) enterprises, thereby enriching research related to upper echelons theory and corporate digital transformation.

This study uses listed SRDI companies in China from 2017 to 2022 as a sample and adopts a fixed-effects regression model to analyze the direct, mediating, and moderating effects of CEO overconfidence on corporate digital transformation.

First, CEO overconfidence significantly promotes SRDI enterprises' digital transformation. Second, according to the “cognition-behavior-outcome” model, we found that entrepreneurial orientation plays a mediating role. Third, based on the principle of procedural rationality and the interaction perspective between the CEO and the executive team, we introduce the heterogeneity of the executive team as a moderating variable. Our findings indicate that age heterogeneity within the executive team has a negative moderating effect, whereas educational and occupational heterogeneities have positive moderating effects.

This study expands on earlier research that focuses primarily on CEO demographic characteristics. It enriches the analytical perspective of upper echelons theory on corporate digital transformation by analyzing the psychological characteristics of CEOs, that is, overconfidence and its mediating pathways. Moreover, this study goes beyond the previous literature that does not differentiate between CEOs and executive teams by introducing the concept of CEOs' interactions with the executive team and including the heterogeneity of the executive team as a moderating variable in the literature. Thus, continuing to deepen the application of upper echelons theory to corporate digital transformation. Additionally, this study contributes to the literature on the positive consequences of overconfidence.

The role played by corporate governance mechanisms on corporate deleveraging policies has not been clarified. Empirical evidence is confined to developed economies, even with conflicting and inconclusive results. This paper aims to examine the role of corporate governance mechanisms, such as ownership structure, board composition and CEO dominance, in explaining corporate deleveraging policies.

Using a sample of listed Pakistani firms between 2010 and 2022, this study resorts to binary response models to examine the effects of governance mechanisms on firms’ decision to go debt-free.

A greater ownership concentration, institutional ownership and family ownership increase the propensity for zero leverage. Board gender diversity decreases the propensity for deleveraging policies, which seems to indicate that the presence of females reinforces the monitoring function of the board. Finally, lower managerial ownership or CEO dominance decreases the propensity toward zero leverage (interest convergence hypothesis), but higher managerial ownership or CEO dominance increases the propensity toward zero leverage (managerial entrenchment hypothesis).

Risk-averse managers who prefer to control a firm using little or no debt will find it easier to implement these financing policies in firms with greater ownership concentration and where institutional holders have a substantial stake. For shareholders, this study suggests that investing in firms with females on board reduces the risk of corporate deleveraging policies being adopted for entrenched reasons.

The presence of females on board seems to decrease the propensity of managers to adopt opportunistic actions and may also contribute to enhancing human welfare and society in developing countries.

To the best of the authors’ knowledge, this is the first study considering the effect of board diversity on zero leverage. Another singularity is that this study exhibits a nonlinear relationship between managerial ownership and corporate deleveraging policy.

This study examines the role of CEO communication in effective crisis management. Specifically, it examines whether the communication of private information about a CEO can create a positive pre-crisis image that serves as a buffer during actual crises.

This study uses a 2x2 experimental design to analyze the effect of CEO communication (private information vs no private information) on pre-crisis image and its effectiveness in different types of crises (victim crisis vs preventable crisis).

The results of this research show that the communication of private information about a CEO contributes to the improvement of public image perceptions when a crisis occurs. This effect is influenced by the recipient’s identification with the organization as well as perceptions of empathy and competence toward the CEO. Notably, stronger effects are observed in the context of a victim crisis.

This study contributes to the field by highlighting the importance of CEO communication in crisis management and its potential to proactively build a positive pre-crisis image. In addition, it examines how this mechanism varies by crisis type, providing valuable insights for crisis communication strategies.

This research employs a behavioural approach to investigate the determinants of CEO disclosure tone inconsistency. By examining CEO characteristics and psychological attributes, the study aims to unravel the complexities underlying tone variations in Management Discussion and Analysis (MD&A) reports. Through this exploration, the research seeks to contribute to understanding ethical considerations in corporate communications and provide insights into the nuanced interplay between personal, job-related and psychological factors influencing CEO disclosure tone.

The study utilises a dataset comprising 1,411 MD&A reports from 143 companies listed on the Tehran Stock Exchange between 2012 and 2021. Multiple regression analyses with year- and industry-fixed effects are employed to examine the relationships between CEO gender, tenure, duality, ability and psychological attributes such as narcissism, myopia, overconfidence and tone inconsistency. Data analysis involves MAXQDA software for analysing MD&A reports and Rahavard Novin software for document analysis, supplemented by audited financial statements.

The findings reveal significant relationships between CEO characteristics, psychological attributes and tone inconsistency. Female CEOs exhibit reduced tone inconsistency, contrasting with previous research trends. CEO tenure correlates negatively with tone inconsistency, whereas CEO ability shows a positive correlation, indicating a nuanced relationship with performance. However, CEO duality does not exhibit a significant association. Psychological attributes such as narcissism and myopia are positively associated with tone inconsistency, while no substantial connection is found with managerial overconfidence.

This research contributes to the inaugural exploration of CEO disclosure tone inconsistency through a behavioural lens, advancing measurement precision in the field. By delving into CEO characteristics and psychological attributes, the study offers unique insights into the roots of tone inconsistency. Applying comprehensive lexicon and phraseology enriches the methodological approach, fostering dialogue among diverse stakeholders and adding distinct perspectives to the discourse on ethical issues in business. Through its meticulous examination of behavioural underpinnings, this study becomes a catalyst for reflection, dialogue and progress in corporate communications and ethical considerations.