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Article
Publication date: 30 December 2020

Adrien Bouchet, Xuehu Song and Li Sun

This study aims to examine the impact of a chief executive officer (CEO) social network centrality on corporate social responsibility (CSR) performance.

Abstract

Purpose

This study aims to examine the impact of a chief executive officer (CEO) social network centrality on corporate social responsibility (CSR) performance.

Design/methodology/approach

This study carries out a multivariate linear regression analysis on a panel data sample of 11,507 firm-year observations (representing 1,386 unique US firms) from 2004 to 2014.

Findings

This paper finds a significant negative relation between CEO network centrality and irresponsible CSR performance (measured as CSR concerns). The findings suggest that better-connected CEOs can better mitigate CSR concerns or weaknesses, leading to improved overall CSR performance of a firm.

Originality/value

This is the first study that directly examines the empirical link between CEO centrality and CSR performance.

Details

Social Responsibility Journal, vol. 18 no. 1
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 5 July 2021

Akhilesh Bajaj and Li Sun

Borderline firms whose bond rating has a plus or minus specification by a rating agency face a greater potential for an upgrade or downgrade by the agency. The authors examine the…

Abstract

Purpose

Borderline firms whose bond rating has a plus or minus specification by a rating agency face a greater potential for an upgrade or downgrade by the agency. The authors examine the level of chief executive officer (CEO) power in firms with a plus or minus bond rating. The authors test whether CEOs of these firms become more or less powerful, along with the effect of corporate governance and existing bond rating.

Design/methodology/approach

The authors use a panel sample with 16,429 observations from 1992 to 2016 from the ExecuComp database.

Findings

The authors find that CEOs of borderline-rated firms tend to be less powerful, relative to firms with a non-proximate rating. This result is largely present in firms with a plus rating. The authors also find that our primary findings are mainly driven by firms with low bond ratings (i.e. below investment grade) or by firms with weak corporate governance. Lastly, the authors document that CEO personal characteristics (i.e. CEO age, gender and tenure) impact our findings.

Research limitations/implications

First, firms in our sample are large public companies, and the external validity of our results to smaller firms that may also be private is unknown. Second, the Compustat database discontinued reporting bond rating data (i.e. S&P bond ratings) in 2017. Hence, the authors are unable to analyze the CEO power of borderline firms in years after 2016.

Practical implications

The study contributes to the larger debate on whether having powerful CEOs is beneficial to an organization or not, because prior research has examined the consequences of CEO power with mixed results. The authors document evidence to support the research stream that links CEO power to negative consequences.

Social implications

The authors find that our primary results are enhanced in firms with weak corporate governance, which is consistent with prior research that finds effective governance may mitigate CEO power and agency problems between the CEO and the Board.

Originality/value

Prior research primarily uses CEO power as a driver for performance. Our study focuses on CEO power as a dependent variable, with the bond rating change proximity as a driver of CEO power. The authors believe that this helps develop a more comprehensive understanding of CEO power.

Details

Managerial Finance, vol. 47 no. 12
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 12 September 2020

Jiasen Sun, Shuqi Xu and Guo Li

To improve the sustainable performance of the power supply chain system (PSCS), the Chinese government proposed a series of relevant policies and promoted the application of…

Abstract

Purpose

To improve the sustainable performance of the power supply chain system (PSCS), the Chinese government proposed a series of relevant policies and promoted the application of various technologies in the power industry. This study analyzes the sustainable performance and technology levels of PSCSs in various regions of China.

Design/methodology/approach

To quantify the technological heterogeneity between PSCSs, this study incorporates a meta-frontier into the performance evaluation model. To increase the performance of inefficient PSCSs, this study also proposes a series of performance improvement path indexes.

Findings

Empirical analysis of China's provincial PSCSs, using data from 2014 to 2017, has yielded several key findings. First, the average performance of PSCSs of all provinces in China is 0.7192, indicating that PSCSs in China have great potential for improvement. Second, independent of power generation subsystem (PGS) or power retail subsystem (PRS), regional differences affect the technological heterogeneity of PSCSs in China. Third, for PGS, the technological level of PSCSs in the eastern region displays a high level, while the management level can still be greatly improved. Fourth, only the PSCS of Beijing is best in both PGS and PRS. The two subsystems of the PSCSs in the other provinces are either insufficiently managed or technologically inadequate.

Originality/value

Compared with the traditional performance model, the model proposed in this study considers the technological heterogeneity between PSCSs. In addition, the path indexes proposed in this study clearly indicate an improvement direction and the specific improvement level for inefficient PSCSs.

Details

Industrial Management & Data Systems, vol. 121 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 March 2018

Li Sun, Qiushi Bian and Siqi Fan

The accelerating process of economic globalization and the increasingly fierce international competition are conducive to the promotion of the construction of the urban regional…

Abstract

The accelerating process of economic globalization and the increasingly fierce international competition are conducive to the promotion of the construction of the urban regional innovation system. Based on this, the Bayesian discriminant model was established in this paper, and the development stage of the regional innovation system was prejudged. Then according to the discriminant analysis, the results of the pre judgment were tested. In addition, based on the innovation system of urban planning and construction, a framework of urban planning analysis based on regional innovation system was put forward, which was used to guide regional planning and implementation, and was applied to the planning of Shanxi science and technology innovation city. It is proved that the fuzzy evaluation system based on Bayes is beneficial to the innovative planning of the new city.

Details

Open House International, vol. 43 no. 1
Type: Research Article
ISSN: 0168-2601

Keywords

Article
Publication date: 1 April 2021

Rong Zhu, Sunny Li Sun and Ying Huang

Initiated by non-governmental organizations (NGOs) over half a century ago, fair trade has successfully evolved from a regional business discourse to a global social movement…

Abstract

Purpose

Initiated by non-governmental organizations (NGOs) over half a century ago, fair trade has successfully evolved from a regional business discourse to a global social movement within international trade. In the matter of fair trade coffee, this global social movement has transformed the traditional coffee trade structure of inequality and unfairness into a conglomerate of international institutions that embrace equity and inclusivity – a metamorphosis that can be attributed to NGOs’ institutional entrepreneurship.

Design/methodology/approach

In this exploratory study, the authors examine the fair trade coffee industry and trace the actions of NGOs along with other stakeholders at the organizational field level, in moving toward an inclusive model of globalization.

Findings

Departing from exploitative globalization, fair trade practices advocate inclusive growth through the promotion and establishment of greater equity for all as well as higher environmental standards in global value chains.

Research limitations/implications

This study contributes to nascent research on inclusive growth by analyzing how fair trade promotes inclusive growth and trade in GVCs. This study also contributes to research on institutional entrepreneurship by examining two enabling conditions – the shift in institutional logics and the peripheral social position of NGOs – that enabled NGOs to serve as institutional entrepreneurs in the initiation phase of institutional entrepreneurship.

Practical implications

Policymakers may encourage collaboration between profit organizations and nonprofit organizations to provide entrepreneurial opportunities for trials, errors, and revisions. The evolution of fair trade coffee provides such an example.

Social implications

The coevolution of NGOs and MNEs has made the globalization of fair trade practices possible. The collaboration between NGOs as institutional entrepreneurs (operating on the community logic) and MNEs as institutional followers (operating on the financial logic) support inclusive globalization and sustain fair trade practices.

Originality/value

Drawing on the process model of institutional entrepreneurship, the authors seek to understand the role of NGOs as institutional entrepreneurs in the dynamics of initiating, diffusing and sustaining fair trade coffee practices.

Details

Multinational Business Review, vol. 29 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 6 March 2017

Li Sun and Joseph H. Zhang

The purpose of this study is to examine the impact of goodwill impairment losses on bond credit ratings.

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Abstract

Purpose

The purpose of this study is to examine the impact of goodwill impairment losses on bond credit ratings.

Design/methodology/approach

The authors use regression analysis to examine the relationship between goodwill impairment losses and bond credit ratings.

Findings

The empirical results show a negative relationship between the amount of goodwill impairment losses and bond credit ratings, suggesting that firms with goodwill impairment losses receive lower credit ratings. The authors perform various additional tests, including subsamples in good or bad market time, changes analysis, first time goodwill impairment firms vs subsequent impairment and the two-stage least squares regression analysis to address potential endogeneity issues. The main results persist.

Originality/value

This paper links and contributes to two streams of literature: goodwill impairment in accounting literature and bond credit ratings in finance literature. Whether a firm’s goodwill impairment losses affect the firm’s bond credit rating remains an interesting question that has not been examined previously. To the best of the authors’ knowledge, this is the first study that directly examines the relationship between goodwill impairment losses and bond ratings at the firm level.

Details

International Journal of Accounting & Information Management, vol. 25 no. 1
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 14 May 2018

Wen Pan, Liuyuan Sun, Li-yun Sun, Chenwei Li and Alicia S.M. Leung

Drawing on activation theory, this paper aims to examine the process through which abusive supervision influences job-oriented constructive deviance (JCD) in the hospitality…

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Abstract

Purpose

Drawing on activation theory, this paper aims to examine the process through which abusive supervision influences job-oriented constructive deviance (JCD) in the hospitality industry.

Design/methodology/approach

Data are collected from 198 employees working with 34 supervisors, at three time points across four hotel groups in Macau. The instantaneous indirect effect and moderated curvilinear effect using established measures are tested.

Findings

First, abusive supervision was positively associated with hotel employees’ job dissatisfaction and their job dissatisfaction had an inverted curvilinear effect on JCD. Second, job dissatisfaction nonlinearly mediated the impact of abusive supervision on JCD. Third, high problem-focused coping decelerated the diminishing benefits of job dissatisfaction on JCD.

Practical implications

First, organizations should accept employees’ constructive deviance but suppress managers’ abusive supervision. Second, organizations need to improve employees’ problem-focused coping skills and channel job dissatisfaction into constructive and active behaviors.

Originality/value

Theoretically, the authors test a nonlinearly mediating and moderated curvilinear model and address the research concern on whether, why and how service employees decide to engage in positive deviant behaviors when encountering abusive supervision. Practically, the authors avoid concluding that moderate levels of abusive supervision can promote positive employee behaviors and refrain from justification of abusive supervision in the hospitality context.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 5 May 2023

Peiyi Jia and Sunny Li Sun

Examining multilevel effects of financial and social performance of microfinance institutions (MFIs), the authors aim to investigate microfinance mission drift from the trend…

Abstract

Purpose

Examining multilevel effects of financial and social performance of microfinance institutions (MFIs), the authors aim to investigate microfinance mission drift from the trend effect. The authors also seek to move the literature forward by decomposing the performance variance at different levels and examining whether and how much each level of analysis matters.

Design/methodology/approach

Growth curve modeling and variance decomposition analysis were conducted using a dataset consisting of 17,953 observations of 2,902 microfinance institutions in 122 countries from 1999 to 2017.

Findings

The study's result shows no evidence of mission drift in the microfinance industry. While MFIs improve their economic returns, they also increase the depth of outreach. In addition, firm-level heterogeneity is the dominant effect which explains 44% of the variance in microfinance financial performance (ROA) and 39% of the variance in social performance (Depth of outreach). The country-level is more critical in explaining financial performance (ROA) than social performance (Depth of outreach), accounting for 11 and 32% of the total variance, respectively. In particular, the interplay between the country-level and organizational-category level accounts for 9 and 11% of the total variance in financial performance (ROA) and social performance (Depth of outreach), respectively.

Originality/value

This study’s multilevel analysis of microfinance performances moves the literature forward by responding to the debate on microfinance mission drift and providing a comprehensive overview of both social and financial performance. By focusing on the trend effect, the result of our models shows that MFIs improve both financial and social performance to fulfill dual missions. The microfinance business model becomes sustainable over time. The study's results of country effect and its interaction effect with different organizational categories reveal the prominence of a good policy design on MFI's mission fulfillment.

Details

Cross Cultural & Strategic Management, vol. 30 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 6 October 2023

Thomas Kim and Li Sun

Using a sample of oil and gas firms in the USA, the study examines the relation between the presence of hedging and annual report readability.

Abstract

Purpose

Using a sample of oil and gas firms in the USA, the study examines the relation between the presence of hedging and annual report readability.

Design/methodology/approach

The authors use regression analysis to examine the relation between the presence of hedging and annual report readability.

Findings

The authors find that annual reports of firms with the use of hedging are less readable (i.e. difficult to read and understand). The authors also find that the primary results are more pronounced for firms with a higher level of business volatility.

Originality/value

The study contributes to the finance literature on the use and value of hedging and to the accounting literature on the determinants of annual report readability. The Securities and Exchange Commission (SEC) has persistently asked companies to improve the readability of their disclosures to stakeholders (SEC, 1998; 2013, 2014). Hence, the study not only identifies a potential determinant (i.e. hedging) that may influence the level of readability but also supports the current regulatory policy by the SEC, which is encouraging companies to improve readability.

Details

Asian Review of Accounting, vol. 32 no. 2
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 18 June 2020

Ryan Flugum, Joel Harper and Li Sun

This paper aims to examine the effect employee performance has on subsequent corporate cash holdings.

Abstract

Purpose

This paper aims to examine the effect employee performance has on subsequent corporate cash holdings.

Design/methodology/approach

The authors utilize panel data estimation, including an instrumental variable approach, to identify the relation between employee performance and subsequent corporate cash holdings. These panel data consist of 11,087 firm-year observations over the period 1992 to 2015.

Findings

The authors document a positive and statistically significant relation between firm employee performance and subsequent cash balances. A one standard deviation increase in employee performance is associated with an increase in cash holdings ranging from 1 to 2 percent. The findings support the view that firms seek to accommodate the preferences of better performing employees, thereby requiring greater levels of cash. This positive relation is most evident among firms with low bond ratings and firms with low managerial ability – characteristics that are indicative of a firm's ability to access capital markets.

Originality/value

Better corporate governance of the firm is commonly associated with lower levels of cash. The findings of this paper, however, suggest that holding greater levels of cash may be a consequence of corporate efforts to accommodate the needs of their employees. The predictive content of employee performance is orthogonal to existing determinants of corporate cash holdings shown in the literature. Furthermore, this paper shows the potential for firm cash balances to be an alternative and transparent measure that signals better employee performance and more socially responsible firm behavior.

Details

International Journal of Managerial Finance, vol. 17 no. 1
Type: Research Article
ISSN: 1743-9132

Keywords

11 – 20 of over 19000