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The purpose of this study was to examine the extent to which chief executive officers (CEOs) deserve the pay they receive both in terms of over and underpayment.

Rather than using the traditional normal distribution view in which CEO performance clusters around the mean with relatively little variance, the authors adopt a novel power law approach. They studied 22 industries and N = 4,158 CEO-firm combinations for analyses based on Tobin’s Q and N = 5,091 for analyses based on return on assets. Regarding compensation, they measured the CEO distribution based on total compensation and three components of CEO total pay: salary, bonus, and value of options exercised.

In total, 86 percent of CEO performance and 91 percent of CEO pay distributions fit a power law better than a normal distribution, indicating that a minority of CEOs are producing top value for their firms (i.e. CEO performance) and a minority of CEOs are appropriating top value for themselves (i.e. CEO pay). But, the authors also found little overlap between CEOs who are the top performers and CEOs who are the top earners.

The findings shed new light on CEO pay deservingness by using a novel conceptual and methodological lens that highlights systematic over and underpayment. Results suggest a violation of distributive justice and offer little support for agency theory’s efficient contracting hypothesis, which have important implications for agency theory, equity theory, justice theory, and agent risk sharing and agent risk bearing theories.

Results highlight erroneous practices when trying to benchmark CEO pay based on average levels of performance in an industry because the typical approach to CEO compensation based on averages significantly underpays stars and overpays average performers.

Results offer new insights on the extent of over and underpayment. The findings uncover an extremely large non-overlap between the top earning and top performing CEOs and to an extent far greater in magnitude than previously suggested.

Objetivo – El objetivo de nuestro estudio fue examinar si los directores ejecutivos (CEOs) merecen la remuneración monetaria que reciben.

Metodología – En lugar de utilizar el enfoque tradicional que asume que la distribución del rendimiento de CEOs sigue la curva normal (con la mayoría de CEOs agrupados en torno a la media y relativamente poca variación), adoptamos un enfoque diferente basado en la ley de potencia. Incluimos 22 industrias y N = 4.158 combinaciones de CEO-firma para análisis basados en Tobin’s Q y N = 5.091 para análisis basado en la rentabilidad de los activos. En cuanto a la remuneracion, medimos distribuciones basadas en la remuneración total y tres componentes del pago completo a los CEOs: salario, bonos, y el valor de las opciones ejercitadas.

Resultados – 86% de las distribuciones de rendimiento de CEOs y el 91% de las distribuciones de pago de los CEO se aproximan mejor a una distribución de ley de potencia que a una distribución normal. Esto indica que una minoría de los CEOs produce un valor muy superior para sus empresas (es decir, el rendimiento CEO) y una minoría de los CEOs apropia valor superior para sí mismos (es decir, pago de los CEO). Sin embargo, encontramos muy poco solapamiento entre aquellos CEOs que se desempeñan mejor y los CEOs que ganan más.

Implicaciones – Nuestros hallazgos usando una conceptualización y metodología novedosas ponen en relieve que a muchos CEOs se les paga demasiado y que a muchos no se les paga suficiente (en comparación con su desempeño). Los resultados sugieren una violación de los principios de justicia distributiva y no apoyan la hipótesis de “contratación eficiente,” y tienen implicaciones para para la teoría de la agencia, de la equidad, de la justicia, y de la distribución de riesgos.

Implicaciones prácticas – Los resultados destacan las prácticas erróneas con respecto a la distribución de compensación a CEOs que se basan en los niveles medios de rendimiento en una industria. Estas prácticas llevan a no pagar suficiente a los directivos “estrella” y pagar demasiado a los directivos con desempeño medio.

Originalidad/valor – Los resultados ofrecen nuevas perspectivas sobre la relación entre desempeño y compensación de CEOs y que los que se desempeñan mejor no son los que reciben más pago, y viceversa. Estas diferencias son mucho más grandes de que lo que se creía anteriormente.

Objetivo – O objetivo do nosso estudo foi examinar se os CEOs merecem a compensação monetária que recebem.

Metodologia – Em vez de utilizar a abordagem tradicional que assume que a distribuição do desempenho do CEO segue a curva normal (com a maioria dos CEOs agrupados em torno da média e relativamente pouca variação), adotamos uma abordagem diferente com base num enfoque inovador da lei de potência. Incluímos 22 indústrias e N = 4.158 combinações de CEO-empresa para análise baseada no Q de Tobin e N = 5091 para análise baseado na rentabilidade dos ativos. Em relação à compensação, medimos as distribuições de CEO com base no total de compensação e três componentes do pagamento total dos CEOs: salário, bônus e o valor das opções exercidas.

Resultados – 86% do desempenho do CEO e 91% das distribuições de pagamento do CEO correspondem a uma lei de potência melhor do que uma distribuição normal, indicando que uma minoria de CEOs está produzindo valor superior para suas empresas (ou seja, desempenho do CEO) e uma minoria de CEOs se apropriando do valor superior para si próprios (isto é, o salário do CEO). Mas, também encontramos pouca sobreposição entre CEOs que tem os melhores desempenhos e os CEOs que tem as maiores ganancias.

Implicações – Nossas descobertas lançam nova luz sobre o merecimento do pagamento do CEO, usando uma nova lente conceitual e metodológica que destaca o excessivo e o baixo pagamento sistemático. Os resultados sugerem uma violação da justiça distributiva e não apoiam a hipótese da contratação eficiente, e tem implicações para a teoria da agência, teoria da igualdade, teoria da justiça e distribuição de riscos.

Implicações práticas – Os resultados destacam práticas errôneas quando se tenta benchmark de remuneração do CEO baseado em níveis médios de desempenho em uma indústria, porque essas práticas levam a não pagar o suficiente aos CEOs “estrela” e pagar em excesso CEOs com desempenho médio.

Originalidade/valor – Os resultados oferecem novas perspectivas sobre a relação entre desempenho e retribuição dos CEOs e que os que desempenham melhor não são os que recebem um pagamento maior, e vice-versa. Estas diferenças são muito maiores do que se pensava anteriormente.

Drawing on institutional logics theory, this paper aims to examine the determinants of entrepreneurs’ planning behavior in the first years of 212 Spanish new firms. Additionally, this study identifies four different planning profiles: systematic planner, early planner, late planner and non-planner.

This study’s data structure is a (yearly) pooled cross-sectional time series. This paper investigates the determinants of planning behaviors among entrepreneurs, as well as the impact of that activity on new firm performance (i.e. employment growth).

The results confirm the relevance of institutional forces in explaining the involvement of founders of new firms upon planning activities. Institutional factors, in the form of public external support seem to explain early- and systematic-planner behavior while the influence of entrepreneurial family background does so with late-planner behavior.

The authors focus their attention on two key moments of a new venture’ life: the first year of operation and once the firm has overcome the four-year hurdle that is often used to distinguish new from established businesses. Four different patterns emerge: systematic planner (those who consistently plan over time), early planner (those who engage in planning activities in the early moments of the firm’s life but not later), late planner (those who do not plan at the beginning but end up conducting planning activities a few years later) and non-planner (those who never get involved in planning activities). This new division is an interesting additional feature of this study.

Utilizando la teoría de lógica institucional, el presente artículo analiza los factores determinantes del comportamiento planificador de los emprendedores durante los primeros años de operaciones, por lo que se refiere a sus negocios. A tal efecto, identificamos cuatro perfiles planificadores: sistemático, temprano, demorado y no-planificador.

A partir de una muestra de 201 emprendedores españoles se examinan los determinantes del comportamiento planificador y el efecto subsecuente en el desempeño de las empresas.

Los resultados de este artículo ponen de relieve la importancia de las fuerzas institucionales, a la hora de explicar la involucración de éstos en cuanto a la planificación de actividades se refiere. Por un lado, factores institucionales en forma de apoyo público, tienden a explicar el comportamiento del planificador temprano y sistemático, mientras que la influencia del contexto familiar definiría el modo de actuar del planificador-demorado. Asimismo, en este artículo se analiza el impacto de los diferentes perfiles planificadores en el desempeño del crecimiento de empleo de las empresas.

El presente artículo intenta examinar de manera inédita el comportamiento planificador de los emprendedores usando la teoría de lógica institucional. Además, los resultados sugieren que planificar aporta un efecto positivo en el desempeño de las iniciativas emprendedoras.

Tendo por base teórica as lógicas institucionais, este estudo analisa as estratégias de planeamento de empreendedores e seus determinantes nos primeiros anos de atividade. Adicionalmente, identificamos quatro perfis diferentes dependo do tipo de planeamento feito pelo empreendedor: planeador sistemático, planeador antecipado, planeador demorado, e não-planeador.

Com base numa amostra de 201 empreendedores Espanhóis, examinamos os determinantes de comportamentos de planeamento dos empreendedores e os seus impactos no desempenho das empresas.

Os resultados confirmam a relevância de forças institucionais na explicação do envolvimento de fundadores de novas empresas em atividades de planeamento. Fatores institucionais, sob a forma de apoio externo público, parecem explicar comportamentos de planeamento antecipado e sistemático, enquanto que a influência do contexto familiar do empreendedor tende a explicar planeamentos mais demorados. O estudo também analisa o impacto destes perfis de planeamento no desempenho das novas empresas (i.e., crescimento do emprego).

O presente artigo tenciona examinar de uma forma inédita o comportamento de planeamento dos empreendedores com base na teoria da lógica institucional. Adicionalmente, os resultados sugerem que planear tem um efeito positivo no desempenho das iniciativas empreendedoras.

The purpose of this paper is to analyse a firm’s internal and external drivers of formal and informal open innovation (OI) practices. To enrich the analysis and to obtain more robust results, the authors checked the study’s hypotheses using samples from two European regions, Navarre (Spain), classified an innovator follower, and Noord-Brabant (Netherlands), an innovator leader.

The sample selected includes manufacturing and service firms that completed the Community Innovation Survey for the year 2008 in both regions. The final sample had 1,288 observations from Navarre and 623 observations from Noord-Brabant. The authors consider two OI dimensions, breadth of information sources for informal OI practices and breadth of cooperation agreement for formal OI practices. Finally, the estimates were performed by means of a negative binomial regression.

Results indicate that for the internal drivers, product-related motives to innovate and in-house R&D intensity are strong drivers for both formal and informal OI engagement in general, while the influence of process- and environmental-related motives are context dependence.

This study distinguishes between formal (i.e. cooperation activities) and informal (i.e. external sources of information used for new ideas) inbound OI practices, while most of the literature has focussed on one single type of OI practice. The use of two samples coming from two different European regions allows observe whether the adoption motives of the OI practices are robust independently from the firms’ location or if they vary across regions owing to context dependence.

La innovación abierta (IA) ha demostrado ser crucial para aumentar la innovación y el desempeño económico de las empresas. Sin embargo todavía existe una comprensión limitada de los factores que impulsan realizar esta IA. El principal objetivo de este artículo es arrojar luz en esta dirección al analizar simultáneamente los determinantes internos y externos que llevan a las empresas a realizar prácticas formales e informales de IA.

Las hipótesis son contratadas con muestras de dos regiones europeas, Navarra (España), calificada como región seguidora en innovación, y Noord Brabant (Países Bajos), líder innovador. La muestra seleccionada incluye empresas manufactureras y de servicios que completaron la Community Innovation Survey (CIS) 2008.

Los resultados indican que, para los determinantes internos, los motivos relacionados con la búsqueda de innovaciones en producto y la intensidad interna de I + D son fuertes impulsores para todas las prácticas de IA, mientras que la importancia de los motivos relacionados con la obtención de innovaciones en proceso y medioambientales dependen del contexto regional. En cuanto a los factores externos, la política pública influye en la adopción de IA tanto formal como informal, pero estos resultados varían entre las regiones dependiendo del origen de los fondos.

El estudio presenta importantes implicaciones para la literatura en IA. En primer lugar, mientras la mayoría de la literatura analiza un único tipo de prácticas de IA, este estudio distingue prácticas formales e informales de IA y estudia sus determinantes internos y externos simultáneamente. Segundo, las hipótesis son contrastadas en dos regiones europeas diferentes. Esto permite observar si los resultados obtenidos son robustos independientemente de la localización de las empresas o si varían dependiendo del contexto de ambas regiones.

A inovação aberta (IA) provou ser crucial para aumentar a inovação e o desempenho económico das empresas. No entanto, ainda há uma compreensão limitada dos fatores que conduzem essa IA. O principal objetivo deste artigo é lançar luz nessa direção, analisando simultaneamente os determinantes internos e externos que levam as empresas a realizar práticas de IA formais e informais.

As hipóteses são contratadas com amostras de duas regiões européias, Navarra (Espanha), classificada como uma região de inovação, e Noord Brabant (Holanda), um líder inovador. A amostra selecionada inclui empresas de fabricação e serviços que completaram o Community Innovation Survey (CIS) 2008.

Os resultados indicam que, para os determinantes internos, os motivos relacionados à busca de inovações no produto e na intensidade interna de P & D são fortes impulsionadores para todas as práticas de IA, enquanto a importância dos motivos relacionados à obtenção Inovações em processo e ambientes dependem do contexto regional. Em relação aos fatores externos, observamos que a política pública influencia a adoção de IA formal e informal, mas esses resultados variam de acordo com as origens dos fundos.

O estudo apresenta implicações importantes para a literatura em IA. Primeiro, enquanto a maioria da literatura analisa um único tipo de práticas de IA, este estudo distingue práticas formais e informais de IA e simultaneamente estuda seus determinantes internos e externos. Em segundo lugar, as hipóteses são contrastadas em duas regiões européias diferentes. Isso permite verificar se os resultados obtidos são robustos independentemente da localização das empresas ou se variam de acordo com o contexto de ambas as regiões.

Corporate social responsibility (CSR) and corporate sustainability have gained prominence in the major capital markets. In Brazil, the São Paulo Stock Exchange (BM&FBovespa) has created the Corporate Sustainability Index (ISE) and the Carbon Efficient Index (ICO2), responsible for indicating the performance of sustainable companies. Therefore, this study proposes to examine and compare the stock returns of the sustainability index member companies with the returns of companies out of these indexes. In this methodology we selected the two principal negotiability indexes of that market (IBOV and IBrX50), which are indexes that meet the most traded stocks of BM&FBovespa, and calculated the average daily returns of the four indexes in order to make performance comparisons over the period 2005–2014, based on nonparametric statistical tests. Our findings indicate that the average returns of sustainability indexes were higher, but these differences were not statistically significant, confirming previous evidence. Additionally, by means of a cointegration test, we found that the indexes are cointegrated in the long term. These findings are limited to the analyzed emerging market and are also subject to the limitations of the estimated models. Thus, we can infer that presence in the sustainability indexes does not indicate statistically significant higher returns, which means that companies with sustainable practices in Brazil are not only concerned with economic performance, but also with social, cultural, and environmental issues. The main findings are aligned with the concept of triple bottom line, even in the case of an emerging market.

We compare the financial stock performance of companies that participate in the Carbon Efficient Index (ICO2) and those that participate only in market-wide indices of the BM&FBovespa (the IBOV, IBrX50, and IBrX100). The data includes the daily quotations of the shares from these four indices for September 2010 to December 2014. We exclude companies from market-wide indices that also participated in the ICO2. We use the stock market and average volume liquidity indices in order to analyze liquidity. We employ financial indicators to analyze the performance of the indices. Returns of companies participating in the ICO2 exceed those of all other companies except those participating in the IBrX50. The returns of all indices are statistically similar. There is a proven long-term equilibrium relationship between the indices’ returns. The ICO2 does not present obvious superiority in terms of the Sharpe and Jensen indices, although the results surpass those of the market-wide indices. Although the financial performance of sustainable companies does not surpass that of other companies, the economic benefits are similar. Thus, even though the financial result presents no significant difference, it is crucial to acknowledge that investing in sustainable stocks does not result in financial loss; rather, it has a positive environmental impact. The literature connecting the performance of the shares of the ICO2 and broad indices is scarce. Our study improves understanding of how company stocks can generate economic benefits to both society and companies.

The relationship between the role played by corporate governance (CG) mechanisms and shareholder wealth is an important and mature topic in some countries and regions. However, despite the considerable number of studies, the results are still inconclusive. The purpose of this paper is to contribute to the debate around the theme in Latin America through a meta-analysis.

The study used meta-analytic procedures to review 42 articles produced by researchers from Latin American countries, whose samples were composed of Latin American firms.

The results suggest that CG best practices are associated with better Latin American firm performance. The evidence also suggests that results are moderated by the characteristics of boards of directors, the ownership, and control structure and various simultaneous CG mechanisms, through broad indices and special CG trading segments.

The relationship between GC and firm performance possesses certain peculiarities in the case of Latin American countries and the literature on the region is certainly not as abundant and mature. As most of the articles reviewed were written in Portuguese and Spanish and published in local journals, the consolidation produced should also be useful for researchers throughout the world by enabling them to access their ideas.

A relação entre o papel desempenhado pelos mecanismos de governança corporativa (GC) e a riqueza dos acionistas é um tópico importante e maduro em alguns países e regiões. No entanto, os resultados ainda se apresentam ambíguos, apesar do grande número de estudos. Este ensaio pretende contribuir para o debate do tema na região através de uma meta análise.

O trabalho fez uso de procedimentos meta-analíticos para revisar 42 artigos produzidos por pesquisadores da região e de outras localidades, cujas amostras são compostas por empresas de países da América Latina.

Os resultados sugerem que de forma geral melhores práticas de GC são associadas a um melhor desempenho das empresas latino-americanas. Este trabalho sugere também que os resultados encontrados são moderados pelas características dos conselhos de administração, da estrutura de propriedade e controle e de diversos mecanismos simultâneos de GC, como índices amplos e segmentos especiais de GC.

Esta relação possui peculiaridades quando se tratam de países latino-americanos e a literatura sobre a região certamente não se apresenta tão abundante e madura. Acredita-se que a consolidação produzida será útil para pesquisadores ao redor do mundo, uma vez que a maioria dos artigos revisados foi escrita em português ou espanhol e publicada em periódicos locais, o que não a torna acessível a todos.

The intangible assets of a company have been presented by national and international surveys as a resource to influence the creation of value and the increase in organizational performance. In view of this, this study aims to analyze the relationship between intangibility and the performance of companies in Latin America.

For this purpose, multiple regression with panel data was used and three perspectives for measuring intangible resources were defined: representativeness of the intangible asset, accounting measure for measuring the intangible, degree of intangibility and Tobin’ Q, the latter two representing economic and financial measures to determine intangibility. The study covered the period from 2011 to 2017 with a sample of 1,236 publicly traded companies located in some Latin American countries, namely, Argentina, Brazil, Chile, Colombia, Mexico and Peru.

The results demonstrated the existence of a significant and positive relationship between the variables of intangibility, degree of intangibility and Tobin’s Q, and the performance variables, return on assets, operating margin and asset turnover, reinforcing the study hypothesis that the greater the investment in intangible resource, the greater the company’s performance.

The limitations of this study involve the lack of complete information about intangible resources in the financial statements of some companies and some countries, making it hard to analyze the proposed relationship more broadly and accurately. Another limitation involves the causal relationship that may have existed between the regressors of the models defined in the study and their error, thus generating an endogeneity problem in the proposed models. It is recommended for future research to use specific methods to mitigate possible problems of endogeneity in regressions.

Mainly the possibility of deepening the relationship between intangibility and business performance, thus obtaining new knowledge through the reflexes of this relationship on companies in Latin American countries, finding more consistent results.

The study contributes to the decision-making process in the business world by informing the primary users of accounting information such as investors, administrators, accountants, regulators and creditors.

This research contributes by addressing a theme whose studies present many gaps, making it possible to deepen the relationship between intangibility and business performance and gain new knowledge through the reflexes of this relationship on companies in Latin American countries.

We present a critical literature review debating Brazilian research on social and environmental accounting (SEA). The aim of this study is to understand the role of politics in the construction of hegemonies in SEA research in Brazil. In particular, we examine the role of hegemony in relation to the co-option of SEA literature and sustainability in the Brazilian context by the logic of development for economic growth in emerging economies. The methodological approach adopts a post-structural perspective that reflects Laclau and Mouffe’s discourse theory. The study employs a hermeneutical, rhetorical approach to understand and classify 352 Brazilian research articles on SEA. We employ Brown and Fraser’s (2006) categorizations of SEA literature to help in our analysis: the business case, the stakeholder–accountability approach, and the critical case. We argue that the business case is prominent in Brazilian studies. Second-stage analysis suggests that the major themes under discussion include measurement, consulting, and descriptive approach. We argue that these themes illustrate the degree of influence of the hegemonic politics relevant to emerging economics, as these themes predominantly concern economic growth and a capitalist context. This paper discusses trends and practices in the Brazilian literature on SEA and argues that the focus means that SEA avoids critical debates of the role of capitalist logics in an emerging economy concerning sustainability. We urge the Brazilian academy to understand the implications of its reifying agenda and engage, counter-hegemonically, in a social and political agenda beyond the hegemonic support of a particular set of capitalist interests.

This paper aims to contribute to research on corporate governance in regulated sectors, with emphasis in the field of activity of foreign investors through the ownership structure and legal system that regulates companies in Brazil.

In the first moment, the investigation had a quantitative approach of relational nature. Based on the data about the valuation of actions, statistical methods were applied to a secondary database containing measurable information provided by the organizations that operate the Brazilian stock-market and documentary evidence provided by the companies. In the second moment, a qualitative approach was adopted, resorting on the use of semi-structured interviews with investors and agents of the sector.

The results lead to two paths: presenting the perspective that foreign investors play a key role in improving governance practices because foreign ownership mitigates agency problems, provides adequate follow-up and optimizes the use of corporate resources; and evidencing the existence of a mitigation of operational risks in the face of the various obligations imposed by the concession contract with the regulatory agency, without direct interference under the ownership structure of regulated companies.

The literature portrays a distinct economic scenario in Brazil, where stock control is pulverized and mechanisms of corporate governance and scope of action of investors and regulated sectors are well-defined and implemented.

A great part of the studies from this field discusses the same object: the impact of the adoption of corporate governance mechanisms on selected efficiency indicators or on the value of the companies' actions. This investigation, on the other hand, targeted a differentiated approach so that its contribution would lie in the investigation under the influence of the regulation on the legal attributions and the performance of the investors how many conflicts between the other shareholder/regulatory body, as the control measures import by the regulatory agent the concessionaires of the Brazilian highways and transportation sector.

The identification of the presence of foreign investors as a determinant for: better performance of companies in Brazilian regulated sector in terms of market valuation; better mitigation of requirements with the regulatory framework for the agencies that regulate the concession sector, targeting a reduction in the asymmetry of information and transparency among all stakeholders.

The fact that Brazil is an emerging country that lacks a rigid legal system and corruption-control measures in corporate environments and public sectors, stresses the importance of the application of the “Best Codes of Corporate Governance Practices” in the main developed countries. This also stresses the need for effective supervisory bodies that contribute to a better financial performance of companies, guaranteeing investors the legal system.

The purpose of this paper is to analyze the innovation process of organizations representing the main sectors of Brazilian economic activity.

The literature review focuses on analyzing the innovation process characteristics regarding the innovation types. The authors carried out interviews with executives and managers in charge of innovation at the leading large companies in the respective sectors analyzed. The data analysis of this qualitative research was structured in three steps. The first step is the analysis of data collected for encoding, the second step, the summarization of the common points presented by the companies in each sector and, finally, the interpretation of these data, aided by triangulation from secondary data that support the analysis of the collected primary data.

The main contribution of this study is to characterize the innovation process of organizations representing the main sectors of the Brazilian economy, with a classification regarding the sectoral innovation standard.

The authors’ intent is that the paper can contribute with a comparative analysis among companies of the same sector and, subsequently, among companies of the different surveyed sectors. Thus, the characterization aims to present the companies’ innovation process and the comparative analysis aims to verify the innovation sectoral patterns. In addition, as implications for management practice, some strategies for better knowledge management in the organization are suggested for each type of innovation.

The main theoretical contribution focuses on the development of a conceptual model that structures the analyzed variables of the constructs “innovation process” and “innovation sectoral patterns”, allowing not only the characterization but also the comparative analysis of the representative organizations present in the sample.