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1 – 2 of 2Kurt Matzler, Florian Andreas Bauer and Todd A. Mooradian
The purpose of this paper is to investigate whether transformational leadership behavior is a function of the leader’s own self-respect and his/her evaluation of being capable…
Abstract
Purpose
The purpose of this paper is to investigate whether transformational leadership behavior is a function of the leader’s own self-respect and his/her evaluation of being capable, significant, and worthy (self-esteem). It is also tested whether transformational leadership is related to innovation success.
Design/methodology/approach
Data were collected from 411 entrepreneurs and managing directors of small- and medium-sized Austrian companies. The proposed hypotheses were tested using structural equation modeling (PLS).
Findings
A strong and significant relationship between self-esteem and transformational leadership was found. Furthermore, data analyses revealed that transformational leadership has a positive impact on innovation success.
Originality/value
This study reveals the important but heretofore neglected role of self-esteem, defined as a manager’s overall self-evaluation of his/her competences, as an important predictor of transformational leadership.
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Keywords
Florian Barth, Benjamin Hübel and Hendrik Scholz
The authors investigate the implications of environmental, social and governance (ESG) practices of firms for the pricing of their credit default swaps (CDS). In doing so, the…
Abstract
Purpose
The authors investigate the implications of environmental, social and governance (ESG) practices of firms for the pricing of their credit default swaps (CDS). In doing so, the authors compare European and US firms and consider nonlinear and indirect effects. This complements the previous literature focusing on linear and direct effects using bond yields and credit ratings of US firms.
Design/methodology/approach
For this purpose, the authors apply fixed effects regressions on a comprehensive panel data set of US and European firms. Further, nonlinear and indirect effects are investigated utilizing quantile regressions and a path analysis.
Findings
The evidence indicates that higher ESG ratings mitigate credit risks of US and European firms from 2007 to 2019. The risk mitigation effect is U-shaped across ESG quantiles, which is consistent with opposing effects of growing stakeholder influence capacity and diminishing marginal returns on ESG investments. The authors further reveal a mediating indirect volatility channel that substantially amplifies the direct effect of ESG on credit risk. A one-standard-deviation improvement in ESG ratings is estimated to reduce CDS spreads of low, medium and high ESG firms by approximately 4%, 8% and 3%, respectively.
Originality/value
This is the first study to examine whether credit markets reflect regional differences between Europe and the US with regard to the ESG-CDS-relationship. In addition, this paper contributes to the existing literature by investigating differences in the response of CDS spreads across ESG quantiles and to study potential indirect channels connecting ESG and CDS spreads using structural credit risk variables.
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