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Open Access
Article
Publication date: 11 April 2024

Jiali Fang, Yining Tian and Yuanyuan Hu

The purpose of this study is to examine the relationship between the corporate social responsibility (CSR) performance of job-hopping executives at their former and subsequent…

Abstract

Purpose

The purpose of this study is to examine the relationship between the corporate social responsibility (CSR) performance of job-hopping executives at their former and subsequent firms.

Design/methodology/approach

We conduct regression analyses using a sample of firms listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2020 to examine whether CSR performance is similar from one firm to the next as executives switch jobs.

Findings

We find a positive relationship between the CSR performance of former and subsequent firms under job-hopping executives. This relationship is the strongest in the year of the job switch; it weakens in the second year and eventually disappears in the third year. In addition, we show that this relationship benefits different CSR stakeholder groups and is contingent on executive and subsequent firm attributes and job-hopping characteristics. Furthermore, we demonstrate that firms that hire a new chief executive officer from a firm with a strong track record in CSR, the new firm experiences a significant surge in CSR performance compared with firms that do not experience such a shock.

Practical implications

This study has implications for executive hiring decisions.

Originality/value

This study extends the understanding of CSR determinants through the lens of inter-organisational ties associated with job-hopping executives.

Details

China Accounting and Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 10 April 2024

Sigtona Halrynjo and Mari Teigen

The European Union (EU) has recently adopted gender quotas for corporate boards (CBQ), anticipating ripple effects on women’s careers in the companies concerned, as well as…

Abstract

Purpose

The European Union (EU) has recently adopted gender quotas for corporate boards (CBQ), anticipating ripple effects on women’s careers in the companies concerned, as well as throughout the economy. The purpose of this paper is to investigate whether CBQ has spurred ripple effects and discuss mechanisms hindering or facilitating women’s occupancy of top executive positions.

Design/methodology/approach

Norway was the first country in the world to introduce CBQ in 2003, with full effect from 2008. The policy requires company boards to be composed of 40% of each gender. Drawing on original data mapping boards and executive committees in Norway’s 200 largest companies, the authors analyze the association between CBQ and the gender composition of executive management almost 15 years after the full implementation. The data include both companies covered by the CBQ and large companies not covered.

Findings

The investigation does not find a positive association between CBQ and more women in executive positions. Thus, the ripple effect hypothesis of CBQ is not supported. CBQ may have contributed to an increased awareness of gender imbalances, yet these findings indicate that to achieve more gender balance in executive positions, scholars and practitioners may need to focus more on gendered conditions and processes in organizations and society throughout executive careers than on the gender composition of boards.

Originality/value

This paper provides empirical analyses of original data 15 years after the implementation of CBQ. The authors further contribute to scholarly debate by identifying and discussing possible mechanisms that explain how requiring more women on corporate boards may – or may not – have ripple effects on executive management.

Details

Gender in Management: An International Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 8 April 2024

Shifang Zhao, Xu Jiang and Yoojung Ahn

Research on the effect of executive equity incentives is equivocal. Based on agency theory, some scholars take the convergence of interest logic to highlight the benefits of…

Abstract

Purpose

Research on the effect of executive equity incentives is equivocal. Based on agency theory, some scholars take the convergence of interest logic to highlight the benefits of executive equity incentives. In contrast, others adopt the entrenchment logic to emphasize the increased agency costs. This study attempts to reconcile the debate on executive equity incentives and integrates the opposing views to unveil how executive equity incentives impact corporate social responsibility (CSR) performance.

Design/methodology/approach

Using the panel dataset of Chinese A-share listed firms from 2006 to 2022, this study integrates the convergence of interest and entrenchment logic to examine how executive equity incentives affect CSR performance.

Findings

We find that the relationship between executive equity incentives and CSR performance follows an inverted U-shaped form. According to the convergence of interest logic, executive equity incentives reduce agency costs when allocating resources to engage in CSR activities and enable firms to increase their CSR investments, ultimately realizing increased CSR performance. After a threshold, however, the accumulation of extensive equity incentives causes the entrenchment effect, resulting in declined CSR performance. Our empirical results also shed new light on its contingent perspective – the inverted U-shaped relationship is attenuated when firms’ stock liquidity is high.

Originality/value

This study attempts to reconcile the debate on executive equity incentives and integrates the opposing views to unveil the inverted U-shaped relationship between executive equity incentives and CSR performance. Our study opens promising avenues for further research on corporate governance and CSR strategies.

Details

Journal of Organizational Change Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 28 March 2024

James Kroes, Anna Land, Andrew Steven Manikas and Felice Klein

This study investigates whether the underrepresentation of women in executive-level roles within the supply chain management (SCM) field is justified or the result of gender…

Abstract

Purpose

This study investigates whether the underrepresentation of women in executive-level roles within the supply chain management (SCM) field is justified or the result of gender injustices. The analysis examines if there is a gender compensation gap within executive-level SCM roles and whether performance differences or other observable factors explain disparities.

Design/methodology/approach

Publicly reported executive compensation and financial data are merged to empirically test if gender differences exist and investigate whether the underrepresentation of women in executive-level SCM roles is unjust.

Findings

Women occupy only 6.29% of the positions in the sample of 447 SCM executives. Unlike prior studies, we find that women executives receive higher compensation. The analysis does not identify observable factors explaining the limited inclusion of women in top-level roles, suggesting that gender injustices are prevalent in SCM.

Research limitations/implications

This study only considers observable factors and cannot conclusively determine if discrimination is occurring. The low level of inclusion of women in executive roles suggests that gender injustice is intrinsic within the SCM profession. These findings will hopefully motivate firms to undertake transformative actions that result in outcomes that advance gender equity, ultimately leading to social justice for female SCM executives.

Originality/value

The use of social justice and feminist theories, a focus on SCM roles, and an empirical methodology utilizing objective measures represents a novel approach to investigating gender discrimination in SCM organizations, complementing prior survey-based studies.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 21 March 2024

Rishi Kappal and Dharmesh K. Mishra

Executive isolation, also known as workplace loneliness, its factors and impact are major issues for organizational development, future of work for leadership and learning…

Abstract

Purpose

Executive isolation, also known as workplace loneliness, its factors and impact are major issues for organizational development, future of work for leadership and learning culture. The purpose of this study is to examine the Executive isolation phenomenon where relationships between power distance, organizational culture and executive isolation of Chief Executive Officers (CEOs) are analysed on how it is considered by their teams. The same is contextualized through the inputs received through interviews conducted with CEOs and employee surveys.

Design/methodology/approach

The qualitative in-depth interviews of five CEOs, and survey across 34 of the 50 employees, were undertaken over the course of two phases of this study. The investigation focused on identifying executive isolation of CEOs and perspectives of employees that can impact the leadership and learning progress of organizations based on work culture, power distance and decision-making; awareness and experience of executive isolation; workplace friendliness and rejection; and management development initiatives to minimize the impact of executive isolation. Qualitative data analysis was conducted using MAXQDA 2022 (Verbi Software, Berlin, Germany), which is a qualitative data analysis software.

Findings

The findings highlight and expose the significant gap between understanding and analysing of the factors due to which the CEOs undergo executive isolation. It also extends to providing details related to the lack of awareness of the teams’ actions contributing to the CEOs’ isolation. It further highlights the fact that the difference of perspectives between the CEOs and teams leads to the organization slowing in its learning activities due to the leaders’ own challenges of executive isolation The findings also provide immense need of developing knowledge assets and management development initiatives for learning interventions, to help understand, analyse and mitigate executive isolation, in the interest of the organizational learning and development.

Originality/value

Earlier research work have contextualized the executive isolation impact on CEOs ability to be a leader. This study extends it to include the implications of leadership and learning culture on the teams that are affected by organization culture, power distance, decision-making and analysing the gap between the understandings about executive isolation of the CEOs. Eventually, it interprets how CEOs courting the executive isolation impacts the overall developmental culture of the organization. This will help in asserting the serious need of new learning frameworks needed to minimize the impact of CEO-level executive isolation.

Details

The Learning Organization, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-6474

Keywords

Article
Publication date: 23 February 2024

Yang Zhang, Wentao Zhou and Xiaoyao Pan

This article empirically tests the impact of risk appetite of the executive team on the re-innovation strategy after technological innovation failure using a panel regression…

Abstract

Purpose

This article empirically tests the impact of risk appetite of the executive team on the re-innovation strategy after technological innovation failure using a panel regression model from the perspective of regional financial development level of enterprises.

Design/methodology/approach

By means of time series global principal component analysis and panel regression model method, the study validated and analyzed the impact of risk appetite of the executive team on the re-innovation strategy after enterprise technological innovation failure.

Findings

The research found that the higher the risk appetite of executive team, the more inclined the enterprise is to choose the “focusing on quantity, ignoring quality” re-innovation strategy after technological innovation failure. The better the financial development level of the region where the enterprise is located, the better it can effectively reduce the re-innovation strategy of “focusing on quantity, ignoring quality” of the enterprise due to the high risk appetite of the executive team.

Originality/value

The findings of this study are helpful in improving the financial development level of the region where the enterprise is located. It can help the executive team of the enterprise to more objectively choose the innovation strategy after technological innovation failure, and reduce the phenomenon that the executive team of the enterprise only pays attention to the quantity of re-innovation and underestimates the quality of re-innovation after technological innovation failure due to its high risk appetite.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 6 February 2024

Ning Xu, Di Zhang, Yutong Li and Yingjie Bai

Green technology innovation is the organic combination of green development and innovation driven. It is also a powerful guarantee for shaping sustainable competitive advantages…

Abstract

Purpose

Green technology innovation is the organic combination of green development and innovation driven. It is also a powerful guarantee for shaping sustainable competitive advantages of manufacturing enterprises. To explore what kind of executive incentive contracts can truly stimulate green technology innovation, this study aims to distinguish the equity incentive and reputation incentive, upon their contractual elements characteristics and green governance effects, and then put forward suggestions for green technology innovation accordingly.

Design/methodology/approach

This study establishes an evaluation model and uses empirical methods to test. Concretely, using data from A-share listed manufacturing companies for the period from 2007 to 2020, this study compares and analyzes the impact of equity and reputation incentive on green technology innovation and explores the relationship between internal green business behavior and external green in depth.

Findings

This study finds that reputation incentives focus on long-term and non-utilitarian orientation, which can promote green technology innovation in enterprises. While equity incentives, linked to performance indicators, have a inhibitory effect on green technology innovation. Internal and external institutional factors such as energy conservation measures, the “three wastes” management system, and environmental recognition play the regulatory role in the relationship between incentive contracts and green technology innovation.

Originality/value

Those findings validate and expand the efficient contracting hypothesis and the rent extraction hypothesis from the perspective of green technology innovation and provide useful implications for the design of green governance systems in manufacturing enterprises.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 9 January 2024

Stephen J. Perkins and Susan Shortland

The purpose of this viewpoint is to comment on the implications of the Financial Reporting Council’s (FRC) Review and Consultation Documents expected to update regulation…

Abstract

Purpose

The purpose of this viewpoint is to comment on the implications of the Financial Reporting Council’s (FRC) Review and Consultation Documents expected to update regulation governing the determination/reporting of executive remuneration in UK stock market listed companies. Practical points from actors involved in executive remuneration decision-making/reporting are presented, set within the context of neo-institutional theory.

Design/methodology/approach

This qualitative research systematically analyses UK Corporate Governance Codes, the FRC’s recent Review/Consultation and peer-reviewed published studies of executive pay determination based on in-depth interviews with non-executive directors, institutional investors, executive pay advisers and human resources (HR) professionals.

Findings

Further regulation, while providing coercive influence over executive remuneration decision-making, is likely to lead to only limited change in processes and reporting due to benchmarking, the make-up of Remco membership and shareholders' preferences. Mimetic and normative isomorphic forces work against coercive isomorphism leading to resistance to change as decision-makers strive to safeguard their social status/reputations.

Practical implications

Reviewing executive remuneration package components and paying attention to company strategy, sustainability and values in pay determination are welcomed but recognised as difficult to achieve. Drawing upon a wider range of information sources/voices can assist in broadening the discussion. HR professionals can help widen stakeholder input to executive remuneration decision-making.

Originality/value

The authors’ viewpoint is grounded in peer-reviewed empirical data that draws directly upon the views/experiences of executive remuneration decision-makers to identify problems in adhering to FRC recommendations for change. The authors extend the meta-theoretical perspective of neo-institutional theory – specifically institutional isomorphism – as providing explanatory and predictive power to understand executive pay decision-making.

Details

Journal of Organizational Effectiveness: People and Performance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2051-6614

Keywords

Article
Publication date: 27 November 2023

Muhammad Edo Suryawan Siregar, Suherman Suherman, Titis Fatarina Mahfirah, Berto Usman, Gentiga Muhammad Zairin and Herni Kurniawati

This study aims to investigate how the presence of female executives on the board affects a company’s capital structure decisions. The critical mass of female executives on the…

Abstract

Purpose

This study aims to investigate how the presence of female executives on the board affects a company’s capital structure decisions. The critical mass of female executives on the board was also considered to observe their impact on capital structure.

Design/methodology/approach

Samples were taken from nonfinancial sector companies listed on the Indonesia Stock Exchange between 2012 and 2021 (3,707 firm-year observations). Capital structure was measured using four approaches, namely, debt-to-total asset ratio (DAR), debt-to-equity ratio (DER), short-term debt-to-total assets (STD) and long-term debt-to-total assets (LTD). The data were analyzed using panel data regression analysis, including a fixed effects model with clustered standard errors.

Findings

The presence of female executives on the board is significantly negatively related to capital structure as measured by DER and STD. The critical mass of women provided no evidence of a relationship with a firm’s capital structure. Robustness checks were performed, and the results were consistent with those in the main analysis.

Research limitations/implications

Female executives can be appointed to management boards when determining a strategy to achieve the capital structure desired by a company.

Originality/value

This study increases the diversity of research in corporate governance by synthesizing various indicators from female executives into a single study to determine their relationships with companies’ capital structures. In addition, this study stands out by incorporating four distinct indicators for assessing capital structure and diverging from the norm observed in many other studies, many of which rely on just two indicators: DAR and DER. Moreover, it strongly emphasizes the unique economic, legal, social and cultural landscapes of developing countries like Indonesia in comparison to their developed counterparts, particularly Western nations.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

Keywords

Open Access
Article
Publication date: 5 December 2023

Susanna Bairoh

The purpose of this study is to understand how executives in technology companies relate to targets for gender equality, especially pertaining to top management.

Abstract

Purpose

The purpose of this study is to understand how executives in technology companies relate to targets for gender equality, especially pertaining to top management.

Design/methodology/approach

The study draws on 19 interviews of CEOs, senior line managers and HR directors in ten technology companies operating in Finland. The method is (reflexive) thematic analysis.

Findings

Previous studies on the role of executives in promoting gender equality provide somewhat mixed results: while their role is vital, senior leaders may not be inclined to support gender equality targets and measures. Drawing on critical feminist theorizing, this study identifies three ways in which the executives in technology companies related to gender equality targets: endorsing, negotiating and resisting. However, all these responses were constrained by the executives’ assumption that their companies are meritocratic. The study illustrates how executives’ narrow understanding of gender equality and reliance on the presumably well-working systems, combined with underlying doubts about the competence of women, hinder the advancement of women to top management.

Originality/value

While previous studies have evaluated targets to increase the number/percentage of women, both in certain “ideal case” companies and in terms of their effectiveness more broadly, this study discusses how technology company executives navigate these targets in relation to women's assumed “competence”.

Details

Gender in Management: An International Journal , vol. 39 no. 4
Type: Research Article
ISSN: 1754-2413

Keywords

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