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1 – 10 of over 3000The purpose of this paper is to develop a multistakeholder scale for assessing an excellent human resource (HR) function to demonstrate the extent to which it is focused on…
Abstract
Purpose
The purpose of this paper is to develop a multistakeholder scale for assessing an excellent human resource (HR) function to demonstrate the extent to which it is focused on creating value from the perspective of its key internal and external stakeholders.
Design/methodology/approach
At the first stage, an in-depth literature review was conducted to extract the best practices for an excellent HR function. Then, to test the validation of the developed framework, it was sent to HR academics and practitioners in different countries. The survey responses were analyzed using the methods of the structural equation modeling (SEM) and confirmatory factorial analysis.
Findings
This study proposes an excellent HR multistakeholder assessment scale consisting of ten criteria based on the perceptions of internal and external HR stakeholders.
Research limitations/implications
This study suggests a framework for assessing overall HR excellence based on the perceptions of key internal and external HR stakeholders. In addition, it is recommended that future researchers empirically test the developed scale across various industries and firm sizes.
Practical implications
HR managers, by using this framework, could continuously assess their HR excellence and compare their HR excellence with other companies’ HR excellence in the industry and then plan for continuous improvement in different HR areas to improve their stakeholders’ experiences.
Originality/value
This paper identifies the enablers and results of an excellent HR department and designs a multistakeholder feedback scale to better understand key internal and external HR stakeholders’ perceptions.
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Arash Arianpoor and Somaye Efazati
The present study investigates the impact of accounting comparability on chief executive officer (CEO) incentive plans and the moderating role of board independence for companies…
Abstract
Purpose
The present study investigates the impact of accounting comparability on chief executive officer (CEO) incentive plans and the moderating role of board independence for companies listed in Tehran Stock Exchange (TSE).
Design/methodology/approach
The information about 177 companies in 2014–2021 was examined. In this study, equity-based compensation and cash-based compensation were used as the CEO incentive plans. The equity-based compensation was calculated through the ownership of the CEO shares.
Findings
The results suggest that the higher accounting comparability increases not only CEO equity-based compensation, but also cash-based compensation. Board independence also strengthens the relationship between accounting comparability and CEO compensation. Hypothesis testing based on robustness checks confirmed these results.
Originality/value
The paper is pioneering, to the authors' knowledge, in identifying how board independence moderates the impact of accounting comparability on CEO compensation. The findings provide insights into economic consequences to the firm related to accounting comparability and board monitoring. The results have important practical implications for international investors to evaluate accounting comparability, corporate governance mechanisms and CEO incentives.
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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.
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Andrew Pendleton, Andrew Robinson and Graeme Nuttall
The paper traces the development of employee ownership in the UK since the 1980s. It proposes that employee ownership is a function of macro-level contexts and micro-level…
Abstract
Purpose
The paper traces the development of employee ownership in the UK since the 1980s. It proposes that employee ownership is a function of macro-level contexts and micro-level decisions, with the latter framed and guided by the former. The macro context comprises the regulatory framework and the provision of incentives to adopt employee ownership. The paper shows how the evolution of these has led to a steep increase in employee ownership in the last eight years.
Design/methodology/approach
The paper draws on several sources of empirical data to chart the development of employee ownership in the UK since the 1980s and to identify the current features of employee ownership. Two firm-level surveys conducted in 2015 and 2020/21 are supplemented by qualitative case study data collected in the early 1990s. An annual census of all employee-owned firms facilitates a comprehensive overview of the current state of UK employee ownership.
Findings
It is found that there has been a steep increase in the number of UK employee-owned firms since 2014 after several decades of uneven growth. This is attributed to the introduction of new incentives and to refinements of the regulatory framework. Over the period, there has been a shift from hybrid employee ownership, combining direct and indirect forms, to indirect ownership associated with the employee ownership trust model.
Originality/value
The paper provides an original history of employee ownership in the UK using rich and unique data, along with the most comprehensive picture of current employee ownership to date.
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Weiting Wang, Yi Liao and Jiacan Li
The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.
Abstract
Purpose
The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.
Design/methodology/approach
This study develops a stylized game-theoretic model of delegating customer acquisition and retention, focusing on how firms choose delegation and wage information disclosure strategy.
Findings
The results confirm the necessity for enterprises to disclose salary information. When sales agents are risk neutral, firms should choose multi-agent (MA) delegation and disclose their wages. However, when agents are risk averse, firms may disclose the wages of acquisition agents or both agents in MA delegation, depending on the uncertainty of the retention market.
Originality/value
This paper contributes to the literature on delegation of customer acquisition and retention and demonstrates that salary disclosure can be used as a supplement to the incentive mechanism.
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Baba Adibura Seidu, Yaw Ndori Queku and Emmanuel Carsamer
This paper focused on financial constraints scenario and tax planning activities of banks in Ghana. The study explores how financial constraints could motivate the banks to pursue…
Abstract
Purpose
This paper focused on financial constraints scenario and tax planning activities of banks in Ghana. The study explores how financial constraints could motivate the banks to pursue tax planning mechanism and the implication on tax revenue mobilisation.
Design/methodology/approach
The paper followed generalised method of moments and fixed effect estimators to investigate the financial constrained-tax planning activity nexus. Simulation approach is adopted to provide financially constrained bank scenario. Besides contemporaneous analysis, sensitivity analysis is conducted to determine time varying effect. Data from all the 20 commercial banks which have operated from 2008 to 2018 were used.
Findings
The paper found that when banks are faced with financial constraints, they exhibit lower cash-effective-tax-rate. The decomposition analysis also revealed that financially constrained banks are likely to take on both short- and long-term tax planning opportunities. The paper also found evidence of persistence in the tax planning activities under financial constrained scenario.
Originality/value
This paper is one of the few studies which have extended the tax planning literature to the Ghanaian banking sector. Further novelty is seen from the development of financial constraint scenario from liquidity and solvency. Liquidity and solvency are the anchors for continuity of banking operation and sensitive to regulatory watch and sanctions. Therefore, by applying simulation approach to trigger financial constraints scenarios from these fundamental indicators reveals the extent to which commercial banks rely on tax planning opportunities to mitigate the consequence of financial constraints.
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Chenhao Li, Huanan Sun and Qian Zhang
The purpose of this study is to explain the following questions: First, whether the executive equity incentive has an impact on enterprise innovation and digital transformation;…
Abstract
Purpose
The purpose of this study is to explain the following questions: First, whether the executive equity incentive has an impact on enterprise innovation and digital transformation; Second, if there is any influence, whether there is difference between state-owned enterprises and private enterprises in the research conclusions; Third, whether the digital transformation of enterprises has had an intermediary effect between executive equity incentive and enterprise innovation; Fourth, whether the proportion of independent directors in the corporate governance mechanism has a regulatory effect.
Design/methodology/approach
In the context of China's promotion of “digital China” construction and high-quality development of economic innovation, this paper takes Shanghai and Shenzhen A-share listed companies in 2011–2019 as a sample, empirically studies the linear and nonlinear relationship between executive equity incentive and enterprise digital transformation and innovation, and further considers the regulatory effect of heterogeneous property rights and the proportion of independent directors, with a view to improving the reform of China's enterprise equity incentive system make contributions to enterprise innovation and digital transformation.
Findings
The results show that executive equity incentive has a positive role in promoting enterprise digital transformation and innovation, and enterprise digital transformation has a positive role in promoting enterprise innovation; Digital transformation of enterprises has a partial intermediary effect between executive equity incentive and enterprise innovation.
Originality/value
First, it expands the research on the economic consequences of enterprise salary incentive system. Second, it expands the research on the specific role path of enterprise digital economy transformation. Third, provide new ideas for the reform of corporate governance mechanism.
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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.
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Abdelhakim Ben Ali and Jamel Chouaibi
This study aims to investigate whether integrating environmental, social and governance (ESG) practices mediates the relationship between executive incentive compensation and the…
Abstract
Purpose
This study aims to investigate whether integrating environmental, social and governance (ESG) practices mediates the relationship between executive incentive compensation and the financial performance of Islamic and conventional banks in the Middle East and North Africa (MENA) region.
Design/methodology/approach
This study used multiple regression models to analyze the effectiveness of ESG practices as a mediating variable in explaining the relationship between executive incentive compensation and banks’ financial performance between 2015 and 2021. The sample consisted of 57 Islamic and conventional banks operating in the MENA region, and the data were collected from the Thomson Reuters database (Data Stream).
Findings
This research paper showed the positive and significant mediating effect of the ESG practice on Banks’ financial performance. Thus, banks’ financial and stock market profitability is influenced by ESG information disclosure. This finding shows that taking ESG into account improves the relationship between executive incentive compensation and banks’ financial performance.
Practical implications
The results may interest academic researchers, regulators and policymakers and would support stakeholders and decision-makers who wish to discover how executive incentive compensation affects financial performance in banks.
Originality/value
This study contributes to previous literature by studying the mediating effect of ESG practices on the relationship between executive incentive compensation and banks’ financial performance. Indeed, the originality of this research paper is justified by the scarcity of studies and, to the best of the authors’ knowledge, constitutes one of the first attempts to examine this relationship via a mediating variable, i.e. ESG.
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Nicolas Aubert, Miguel Cordova and Gonzalo Hernandez
This study aims to investigate how a French multinational enterprise (MNE) is developing employee stock ownership (ESO) in its subsidiaries in Peru and Mexico, both Latin American…
Abstract
Purpose
This study aims to investigate how a French multinational enterprise (MNE) is developing employee stock ownership (ESO) in its subsidiaries in Peru and Mexico, both Latin American countries with deep social and economic inequalities.
Design/methodology/approach
This is a qualitative case study which conducted interviews with representatives of the French MNE and its subsidiaries in Peru and Mexico.
Findings
The employee stock purchase plans offered by the company to its employees support the achievement of the sustainable development goals (SDGs) 1, 8 and 10 in these countries.
Social implications
The authors argue that MNEs could become flagships in the SDG achievement in emerging economies.
Originality/value
By contributing to better workplace outcomes and enhanced corporate performance, ESO is in line with SDG 8. ESO also fulfills SDGs 1 and 10 by allowing employees to build up savings and wealth, whose lack is the main source of inequality and poverty. Reciprocity and binary economics theories explain these relationships.
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