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1 – 10 of over 2000
Article
Publication date: 1 June 2006

Jan Didrichsen

Jan Didrichsen draws on his own experience to explain the role of an interim chief executive.

Abstract

Jan Didrichsen draws on his own experience to explain the role of an interim chief executive.

Details

International Journal of Leadership in Public Services, vol. 2 no. 2
Type: Research Article
ISSN: 1747-9886

Keywords

Article
Publication date: 8 June 2012

Xin Liang, Yanxin Liu, Sibin Wu and Shujuan Zhang

There is no previous systematic and theoretical investigation of the interim CEO succession practice. This research attempts to fill the gap by studying this phenomenon and hence

Abstract

Purpose

There is no previous systematic and theoretical investigation of the interim CEO succession practice. This research attempts to fill the gap by studying this phenomenon and hence advance executive succession research/practice.

Design/methodology/approach

Based on agency theory, the authors propose a model and several propositions to predict what determines the origin of interim CEOs, the length of the interim tenure, and the career prospects for the interim CEO after the interim tenure.

Findings

Both firm performance and environmental uncertainty play an important role in the dynamic interim CEO succession process.

Research limitations/implications

The paper provides the foundations for future empirical research on interim CEO succession.

Practical implications

Board members at companies experiencing sudden CEO departures should choose a loyal non‐aggressive veteran to be the interim CEO so as to minimize disruption and to smooth the transition. They should use caution when choosing an internal candidate because if such a candidate is not chosen to be the permanent CEO later, a talent may be lost.

Originality/value

The research is the first to systematically examine the phenomenon of interim CEOs. The authors make a unique contribution to the literature on CEO succession.

Details

Corporate Governance: The international journal of business in society, vol. 12 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 20 October 2021

Rachana Kalelkar and Qiao Xu

The authors investigate whether the different tenure phases of executives have a differential effect on audit pricing. Two alternate views – career concern and power – can explain…

Abstract

Purpose

The authors investigate whether the different tenure phases of executives have a differential effect on audit pricing. Two alternate views – career concern and power – can explain the effect of executives’ tenure on audit pricing. This paper aims to determine, which viewpoint dominates in explaining the relationship between audit pricing and executive tenure phases.

Design/methodology/approach

Using a sample of 11,198 firm-year observations from 2007 to 2016, the authors adopt an ordinary least squares regression model to assess the impact of the middle and long phases of executives’ tenure on audit fees.

Findings

Audit fees are significantly lower when executives enter the middle and long phases of tenure. The reduction in audit fees is greatest as both chief executive officers and chief financial officers enter the long tenure phase. Although audit fees gradually decrease as executive tenure is extended, they start increasing two years before the end of executive tenure. Furthermore, the negative association between the executive tenure phase and audit fees is greater when the executive is appointed externally. Finally, the long phase of executive tenure also mitigates the positive relationship between audit fees and internal control weaknesses.

Research limitations/implications

This study is based on US data. Future research may extend this study to other countries.

Practical implications

The findings are important to firms, practitioners and academicians, particularly, as the length of tenure of top executives has increased in recent years. By documenting that executives’ middle and long tenure phases reduce audit fees, the findings highlight the importance of maintaining executives in the firm. Finally, the findings have implications for investors, policymakers and auditors to identify companies with high audit risk.

Originality/value

This study is the first to document the impact of executives’ middle and long tenure phases on audit fees.

Details

Review of Accounting and Finance, vol. 20 no. 5
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 8 January 2024

Ahmed Bouteska, Taimur Sharif and Mohammad Zoynul Abedin

Given the serious question raised by the subprime of the 2008 global financial crisis over the rising practices of excessive rewarding of executives in the USA and European firms…

Abstract

Purpose

Given the serious question raised by the subprime of the 2008 global financial crisis over the rising practices of excessive rewarding of executives in the USA and European firms, the executive pay-performance nexus has emerged as a popular topic of debate in the contemporary corporate finance research. Conducted mostly on the Anglo-Saxon contexts, research outcomes have been inconclusive and dichotomous. Considering this backdrop, this study aims to investigate the endogenous relationship between executive compensation and risk taking in the context of the USA.

Design/methodology/approach

Using a large sample of non-financial firms from 2010 to 2020 based on panel data and two-stage least square regression. In this study, the riskier corporate decision is measured as book leverage and ratio of R&D expense to total assets. Chief executive officers’ (CEO) experience and age are used as instrumental variables, and these are expected to influence compensation incentives and, hence, affect firm riskiness indirectly. Firm size, return on assets and CEO turnover are reported to affect compensation and corporate decisions, therefore, included as control variables. Given that higher executive compensation is related to riskier corporate decision in firms, this study incorporates total wealth (i.e. accumulated equity related compensation) as an additional proxy of compensation, and this selection is justifiable by the perfect contracting notion of the agency theory.

Findings

The results of this study show a significant positive and increasing nexus among compensation and riskier corporate decisions. Besides, the compensation level proxied through the percentage of each form of compensation in total compensation is very important as greater equity and greater salary diminishes risk taking.

Practical implications

The outcomes of this study have useful implications for firm stakeholders and policymakers.

Originality/value

The level of pay measured by the percentage of each type of compensation in total compensation is of utmost importance as it can increase or decrease risk taking in corporate decisions.

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

Case study
Publication date: 20 January 2017

James B. Shein, Robert Anstey and Nathan Lang

The case begins with newly appointed chairman and interim CEO Garo Armen dwelling on the significant issues that Elan Corporation, an Irish pharmaceutical company, faces. Its…

Abstract

The case begins with newly appointed chairman and interim CEO Garo Armen dwelling on the significant issues that Elan Corporation, an Irish pharmaceutical company, faces. Its share price has plummeted 96% after accusations of accounting fraud and the discontinuation of an important clinical trial due to the drug's severe side effects. As a result, Elan faces insolvency. About $2 billion in debt that could no longer be satisfied in stock will soon mature, and there are questions regarding the company's structure and various operating concerns. Armen is also concerned about the ethical consequences of the company's failing and thus not being able to develop potentially life-saving medicines. Armen must decide what the nature of Elan should be moving forward and what strategy it should adopt. The operational and financial issues discussed in the case are complicated by Elan's status as an Irish company with significant international operations. The case closes with Armen reflecting on the decisions he has made—which students should critique and suggest alternatives to—as well as an open decision on choosing a successor CEO.

1. Crafting a vision and strategy for a newly streamlined organization and implementation 2. Balancing the complexities of an international corporation in a turnaround situation 3. Quantitatively identifying the probability, advantages, and disadvantages of bankruptcy 4. Succession planning decision making 5. Responding to fraud accusations 6. Managing a distressed workforce and retaining key employees

Abstract

Details

International Journal of Leadership in Public Services, vol. 2 no. 3
Type: Research Article
ISSN: 1747-9886

Content available
Article
Publication date: 7 November 2008

263

Abstract

Details

Structural Survey, vol. 26 no. 5
Type: Research Article
ISSN: 0263-080X

Keywords

Article
Publication date: 14 October 2013

M.S Rao

Highlights the importance of top people in an organization having both hard and soft skills.

3336

Abstract

Purpose

Highlights the importance of top people in an organization having both hard and soft skills.

Design/methodology/approach

Connects hard and soft skills with left and right-brain respectively. Distinguishes between book-smart and street-smart.

Findings

Argues that leaders with hard and soft skills are more likely to enjoy career success and to achieve organizational excellence.

Practical implications

Observes how successful leaders treat others as partners rather than as subordinates.

Originality/value

Demonstrates how leaders with soft skills along with hard skills handle knowledge workers who crave partnership rather than traditional command-and-control management.

Details

Human Resource Management International Digest, vol. 21 no. 7
Type: Research Article
ISSN: 0967-0734

Keywords

Article
Publication date: 1 September 2008

Abstract

Details

Working with Older People, vol. 12 no. 3
Type: Research Article
ISSN: 1366-3666

Abstract

Details

Mental Health Review Journal, vol. 11 no. 3
Type: Research Article
ISSN: 1361-9322

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