Search results
1 – 10 of 336Rachana Kalelkar and Emeka Nwaeze
The authors analyze the association between the functional background of the compensation committee chair and CEO compensation. The analysis is motivated by the continuing debate…
Abstract
Purpose
The authors analyze the association between the functional background of the compensation committee chair and CEO compensation. The analysis is motivated by the continuing debate about the reasonableness of executive pay patterns and the growing emphasis on the role of compensation committees.
Design/methodology/approach
The authors define three expert categories—accounting, finance, and generalist—and collect data on the compensation committee (CC) chairs of the S&P 500 firms from 2008 to 2018. The authors run an ordinary least square model and regress CEO total and cash compensation on the three expert categories.
Findings
The authors find that firms in which the CC chair has expertise in accounting, finance, and general business favor performance measures that are more aligned with accounting, finance, and general business, respectively. There is little evidence that CC chairs who are CEOs of other firms endorse more generous pay for the host CEO; the authors find some evidence that CC chairs tenure relative to the host CEO's is negatively associated with the level of the CEO's pay.
Research limitations/implications
This study suggests that firms and regulators should consider the background of the compensation committee chair to understand the variations in top executive.
Practical implications
Companies desiring to link executive compensation to particular areas of strategy must also consider matching the functional background of the compensation committee chair with the target strategy areas. From regulatory standpoint, requiring compensation committees to operate independent of inside directors can reduce attempts by inside directors to skim the process, but a failure to also consider the impact of compensation committees' discretion over the pay-setting process can distort the executives' pay-performance relation.
Originality/value
This is the first study to examine the effects of the functional background of the compensation committee chair on CEO compensation.
Details
Keywords
Tyler Skinner, Steven Salaga and Matthew Juravich
Using the lens of upper echelons theory, this study examines the degree to which National Collegiate Athletic Association athletic department performance outcomes are associated…
Abstract
Purpose
Using the lens of upper echelons theory, this study examines the degree to which National Collegiate Athletic Association athletic department performance outcomes are associated with the personal characteristics and experiences of the athletic director leading the organization.
Design/methodology/approach
The authors match organizational performance data with athletic director and institutional characteristics to form a robust data set spanning 16 years from the 2003–04 to 2018–19 seasons. The sample contains 811 observations representing 136 unique athletic directors. Fixed effects panel regressions are used to analyze organizational performance and quantile regression is used to analyze organizational revenues.
Findings
The authors fail to uncover statistically significant evidence that athletic director personal characteristics, functional experience and technical experience are associated with organizational performance. Rather, the empirical modeling indicates organizational performance is primarily driven by differentiation in the ability to acquire human capital (i.e. playing talent). The results also indicate that on average, women are more likely to lead lower revenue organizations, however, prior industry-specific technical experience offsets this relationship.
Originality/value
In opposition to upper echelons research in numerous settings, the modeling indicates the personal characteristics and experiences of the organization's lead executive are not an economically relevant determinant of organizational performance. This may indicate college athletics is a boundary condition in the applicability of upper echelons theory.
Details
Keywords
This study aims to focus on the resource-based faultline of a top management team (TMT) and intends to investigate the impact of TMT resource-based faultline on corporate green…
Abstract
Purpose
This study aims to focus on the resource-based faultline of a top management team (TMT) and intends to investigate the impact of TMT resource-based faultline on corporate green innovation, by indicating the environmental management as a mediator and slack resources as a moderator to understand the relationship.
Design/methodology/approach
Based on the empirical data of Chinese listed manufacturing companies from 2008 to 2020, this study assesses the hypotheses using an OLS model with fixed effects of time and industry.
Findings
The results indicate that TMT resource-based faultline is significantly negatively correlated with corporate green innovation. The conclusion remains valid after endogeneity tests and robustness checks. Mechanism test shows that environmental management plays a mediating role in the association between TMT resource-based faultline and corporate green innovation. Moreover, slack resources diminish the negative association between TMT resource-based faultline and corporate green innovation.
Originality/value
The study not only expands the theoretical understanding of the deeper motivation of TMT faultline on corporate green innovation, but also provides a practical reference for optimizing the human resource allocation of the TMT and accelerating green transformation development.
Details
Keywords
Shangkun Liang, Rong Fu and Yanfeng Jiang
Independent directors are important corporate decision participants and makers. Based on the Chinese cultural background, this paper interprets the listing order of independent…
Abstract
Purpose
Independent directors are important corporate decision participants and makers. Based on the Chinese cultural background, this paper interprets the listing order of independent directors as independent directors’ status, exploring their influence on the corporate research and development (R&D) behavior.
Design/methodology/approach
This paper studies A-share listed firms in China from 2008 to 2018 as the sample. The main method is ordinary least square (OLS) regression. We also use other methods to deal with endogenous problems, such as the firm fixed effect method, change model method, two-stage instrumental variable method, and Heckman two-stage method.
Findings
(1) Higher independent directors’ status attribute to more effective exertion of supervision and consultation function, and positively enhance the corporate R&D investment. The increase of the independent director’ status by one standard deviation will increase the R&D investment by 4.6%. (2) The above effect is more influential in firms with stronger traditional culture atmosphere, higher information opacity and higher performance volatility. (3) High-status independent directors promote R&D investment by improving the scientificity of R&D evaluation and reducing information asymmetry. (4) The enhancing effect of independent director’ status on R&D investment is positively associated with the firm’s patent output and market value.
Originality/value
This paper contributes to understanding the relationship between the independent directors’ status and their duty execution from an embedded cultural background perspective. The findings of the study enlighten the improvement of corporate governance efficiency and the healthy development of the capital market.
Details
Keywords
Junyu Pan, Han Bao, Javier Cifuentes-Faura and Xiaoqian Liu
This paper aims to examine whether chief executive officer’s (CEO) information technology (IT) background can affect enterprises’ continuous green innovation (CGI).
Abstract
Purpose
This paper aims to examine whether chief executive officer’s (CEO) information technology (IT) background can affect enterprises’ continuous green innovation (CGI).
Design/methodology/approach
This study uses the data of China’s listed enterprises from 2011 to 2019.
Findings
The statistical results reveal that when a company hires a CEO with an IT background, its CGI can be higher. Firm ownership, firm digitization and industry bias alter the impact of CEO’s IT background on firms’ CGI. This effect is most pronounced in non-state-owned enterprises (non-SOEs), high-digitalized enterprises and skill-biased industries, while not in SOEs, low-digitalized enterprises and labor-biased industries.
Practical implications
This study has practical implications, as it measures CGI of enterprises. It also points to the necessity for a CEO’s IT background to enhance CGI.
Social implications
The findings provide new strategies for incentivizing sustainable development and green innovation.
Originality/value
To the best of the authors’ knowledge, this study is the first to discuss the association between CEO’s IT background and enterprises’ CGI. The conclusions enrich both upper echelons theory and enterprise green innovation literature.
Details
Keywords
Changlong Ma, Yuhui Ge and Heng Zhao
Although strategic scholars have made great effects to exploring the moderating roles of team interaction in explaining the effect of top management team (TMT) diversity, they…
Abstract
Purpose
Although strategic scholars have made great effects to exploring the moderating roles of team interaction in explaining the effect of top management team (TMT) diversity, they have adopted seemingly conflicting theoretical perspectives to explain how it works. Drawing on ideas from the threat rigidity theory, the authors integrated these perspectives by proposing a contingency model in which the relationships between TMT diversity and adaptive firm performance depend on the matching between the internal context (i.e. overlapping team tenure) and external context (i.e. severity of threat).
Design/methodology/approach
This study sampled 579 Chinese A-share listed companies that have been severely affected by the COVID-19 pandemic, and multilevel linear regression analysis was used to test the hypothesis.
Findings
Results provided support for this hypothesis. Specifically, the interaction between TMT age/tenure diversity and overlapping team tenure is significant only when the severity of threat is high, while the interaction between TMT functional diversity and overlapping team tenure is significant only when the severity of threat is low.
Originality/value
The results of this study provide a comprehensive perspective to predict the performance impact of team diversity and contribute to diversity research and practice.
Details
Keywords
Jia Wells and Caroline S.L. Tan
This study aims to examine the relationships between functional value (quality and price), social value (extrinsic and intrinsic), emotional value and attitude toward a brand, as…
Abstract
Purpose
This study aims to examine the relationships between functional value (quality and price), social value (extrinsic and intrinsic), emotional value and attitude toward a brand, as well as the direct relationship between attitude toward a brand and the purchase intention of tires. This research also explores the moderating effect of social influence on the relationship between attitude toward a brand and purchase intention.
Design/methodology/approach
A conceptual model based on literature is developed and tested using an online survey, with a sample of 760 active drivers gathered through purposive sample judgment. The data were analyzed using structural equation modeling with AMOS 28 and Hayes Process Macro 4.
Findings
The results demonstrate that extrinsic social value has a positive direct relationship with attitude toward brands. The findings also indicate that intrinsic social value has a positive influence on attitudes toward brands. Attitude toward a brand is found to have a positive direct relationship with purchase intention.
Originality/value
This research extends the existing literature on consumption values and offers insights into the specific values that influence attitudes toward tire brands as well as purchase intention. The findings provide insights to tire businesses in values that they could focus on when developing strategies to increase positive brand attitude and purchase intention.
Details
Keywords
The purpose of this study is to examine the association between the combined roles of chief executive officer (CEO)-chairman titles (CEO duality) and investment efficiency…
Abstract
Purpose
The purpose of this study is to examine the association between the combined roles of chief executive officer (CEO)-chairman titles (CEO duality) and investment efficiency, defined as a lower deviation from expected investment for targeted S-curve firms used to propel an innovation-driven economy. This study also aims to investigate the moderating effect of financial reporting quality on this association.
Design/methodology/approach
This paper focuses on the ten targeted S-curve industries – under the definition of the Thailand 4.0 model – listed on the Stock Exchange of Thailand (SET) from 2000 to 2019. Data related to CEO/chairman titles and investment supports were manually collected from the annual reports, the SET market analysis and reporting tool database and the company websites. Financial data used to estimate investment behaviors and discretionary accruals were extracted from 1999. The study analyzes unbalanced panel data using fixed-effects regressions. Additional tests embrace replacing the sample with nontargeted firms, partitioning into granted and nongranted firms, adding CEOs’ demographic moderators, using alternative variable measures and analyzing for lagged independent variables.
Findings
The main findings show that CEO duality reduces overinvestment but worsens underinvestment in targeted firms. Financial reporting quality (FRQ) appears to strengthen CEO duality in mitigating extreme spending but has no impact on the association between CEO duality and underinvestment. Additional results, for example, conclude that CEO duality has no association with both over- and underinvesting at nontargeted firms, but its effect becomes positively significant on overinvestment when financial reporting quality is high. The negative association between CEO duality and overinvestment is found only in government-granted and targeted firms. FRQ encourages CEO duality in lowering overinvestment among targeted firms without grants. CEOs’ female and serviced early years appear to elevate those main findings.
Practical implications
These findings assist innovative corporations in choosing a proper leadership structure to cope with investment inefficiency. The research gives the government and regulatory bodies an insight into the qualifications of the leadership structure and financial information that helps them put forward effective policies.
Originality/value
To the best of the author’s knowledge, this study is among the first to establish the association between CEO duality and investment efficiency for innovation-driven firms in a transforming economy. The study fills the gap in the literature on management, accounting and finance by unveiling the interplay between dual leadership and financial reporting in affecting the efficiency of investments.
Details
Keywords
Jiemei Zhang, Bingxin Tang, Bei Lyu and Zhaoran Song
This study explores how businesses can effectively market functional and emotional benefits through virtual corporate social responsibility co-creation (VCSRC) initiatives. The…
Abstract
Purpose
This study explores how businesses can effectively market functional and emotional benefits through virtual corporate social responsibility co-creation (VCSRC) initiatives. The aim is to enhance customer engagement through these initiatives.
Design/methodology/approach
The initial phase of this study involved recruiting 185 Chinese university students as participants. These individuals were randomly distributed into four distinct experimental groups, each designed to investigate the influence of varied marketing appeals and common in-group identity (CIGI) on consumer engagement willingness. This phase also sought to elucidate the mediating role of CSR associations in these dynamics. Following this, the second study engaged 570 individuals, recruited through “Credamo,” for a group-based experiment. This subsequent phase was intended to validate the findings of the preliminary study and explore the varying intensities of interaction between different marketing appeals and CIGI, with a particular focus on the dichotomy of independent and interdependent self-construals.
Findings
The study delineates a detailed relationship between consumers' willingness to participate in VCSRC, marketing appeals, and common in-group identity, revealing that strong common in-group identity correlates with a preference for functional appeals, while a weaker in-group identity inclines towards emotional appeals. Notably, interdependent self-construal significantly influences consumer responses, intensifying the interaction between in-group identity and marketing appeal and thereby influencing participation willingness. Moreover, CSR associations emerge as key mediators in this interaction, underscoring their role in enhancing the effectiveness of VCSRC strategies. These insights provide a new understanding of the crucial impact of consumer identity traits on marketing strategy efficacy.
Originality/value
This research stands as a trailblazing endeavor in evaluating the effects of varied advertising appeals under the VCSR paradigm. It probes into the foundational mechanisms, leveraging insights from interaction alignment theory and persuasion theory to elucidate the processes involved.
Details
Keywords
Erik Johansson, Erik Rådman, Hendry Raharjo and Petra Bosch-Sijtsema
This paper aims to identify and prioritize the needs of coworking members. The authors focus on maintaining the existing members rather than attracting new ones.
Abstract
Purpose
This paper aims to identify and prioritize the needs of coworking members. The authors focus on maintaining the existing members rather than attracting new ones.
Design/methodology/approach
The authors use two phases and multiple methods. The first phase focuses on a qualitative approach using observations and interviews to uncover and formulate the members’ needs. The second phase focuses on prioritizing the needs using a quantitative approach.
Findings
The authors discovered 19 member needs from the coworking spaces. Based on an online survey, the authors classified those needs into three main Kano model’s categories.
Originality/value
The resulting member needs and their strategic priorities provide a useful basis for coworking providers to direct their improvement efforts towards achieving greater member satisfaction.
Details