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Article
Publication date: 1 February 1996

Richard A. Lheureux, James J. Hoff‐man, Bruce T. Lamont and Paul Simmonds

This study examines the moderating effect of international involvement on the relationship between two dimensions of managerial tenure and firm performance. Data for 89…

Abstract

This study examines the moderating effect of international involvement on the relationship between two dimensions of managerial tenure and firm performance. Data for 89 Fortune 500 firms of varying levels of international involvement were gathered and analyzed. The results of the empirical examination provided significant support for the moderating effect of internationalization on the relationship between top management team tenure and firm performance. In general, in firms with relatively higher levels of foreign involvement, teams with higher organizational tenure and lower job tenure realized superior performance outcomes.

Details

Cross Cultural Management: An International Journal, vol. 3 no. 2
Type: Research Article
ISSN: 1352-7606

Article
Publication date: 1 January 2010

Michael L. Mallin, Edward O'Donnell and Michael Y. Hu

The purpose of this paper is to extend previous research on trust and sales control to develop and test an argument that links informational uncertainty to the development…

2245

Abstract

Purpose

The purpose of this paper is to extend previous research on trust and sales control to develop and test an argument that links informational uncertainty to the development of managerial trust in the salesperson.

Design/methodology/approach

Hypotheses are developed suggesting that shared goals and length of attachment reduces uncertainty, which has the effect of promoting managerial trust in the salesperson. In addition, it is hypothesized that sales control will have a (negative) moderating effect on these uncertainty‐trust relationships. Data were collected from 100 sales managers to measure their: sales control strategies, degree of trust, goal congruence, and the relationship tenure with three of their salespeople. An ordinary least squares regression analysis was used to test a model of hypothesized relationships.

Findings

The results supported a direct and positive relationship between lower uncertainty (via goal congruence and relationship tenure) and managerial trust in the salesperson. Furthermore, the results confirmed that sales control had a negative moderating effect on these relationships.

Research limitations/implications

These study findings are important to researchers because the literature strongly suggests that trust is critical in the relationship between sales manager and salesperson and so furthering the understanding of trust‐building strategies is an important advancement to academic sales research.

Originality/value

Managers can use this study to understand and recognize factors that impact trust development while avoiding the potential risks of salesperson opportunism. Examples are provided as to how practitioners can operationalize these findings to build more productive relationships with their salespeople.

Details

Journal of Business & Industrial Marketing, vol. 25 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 2 March 2015

Nan Hu, Qian Hao, Ling Liu and Lee J. Yao (1958-2012)

– The purpose of this paper is to understand the impact of tenure on earnings management.

2848

Abstract

Purpose

The purpose of this paper is to understand the impact of tenure on earnings management.

Design/methodology/approach

Analytical model; multivariate regression analysis.

Findings

The paper predicts that managers are conservative in managing earnings when they first start to take top managerial positions, and then become aggressive in the next few years. Once they reach the maximum level of earnings management, they will become conservative again and report earnings less aggressively. This inverted U-shaped relationship between tenure and earnings management is confirmed by the data from the Chinese stock market.

Research limitations/implications

It is based on China stock market data. Generalization of the research results to other countries is limited.

Practical implications

With the knowledge of when earnings management is more likely to occur, regulators can set up policies targeting firms and managers with certain characteristics, instead of requiring observances from all firms and managers. This limited scope can greatly reduce the costs of preventing and identifying earnings management, while effectively maintaining the quality of earnings in the meantime.

Social implications

This paper examines the earnings management behavior related to CEO tenure. It is hoped that the research results can improve the overall understanding of earnings management, then social wealth spent on preventing and identifying it could be reduced.

Originality/value

It is an original work.

Details

International Journal of Accounting & Information Management, vol. 23 no. 1
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 26 February 2021

Mahdi Salehi, Ebrahim Ghanbari and Saleh Orfizadeh

This study aims to assess the relationship between managerial entrenchment and accounting conservatism in Iran.

Abstract

Purpose

This study aims to assess the relationship between managerial entrenchment and accounting conservatism in Iran.

Design/methodology/approach

To test hypotheses, all listed companies on the Tehran Stock Exchange during 2013–2018 (six years) that qualified were selected. Given the defined limitations of the study, a total of 120 firms with 720 year-observations was selected. After collecting data and figures, they were analyzed using EViews software. Having presented the inferential model tests, the panel data with fixed effects model is chosen.

Findings

The study results indicate a positive and significant relationship between managerial entrenchment and unconditional conservatism presented in the income statement. Moreover, the authors find a meaningful relationship between managerial entrenchment and unconditional conservatism about the balance sheet.

Practical implications

Managers will be more aware of the positive consequences of employment optimal corporate governance such as conservative accounting. Such corporate governance is likely to serve their interest in the long run by providing positive signals to the equity owners and board of directors.

Originality/value

By assessing conservatism’s literature in Iran, we observe many studies on this concept. Still, no investigation is carried out on the relationship between conservatism in accounting and managerial entrenchment. The present study is innovative because it evaluates the relationship between managerial entrenchment and two types of conservatism, namely, balance sheet and income statement conservatism, which have never been investigated by prior studies, notably in emerging markets.

Details

Journal of Facilities Management , vol. 19 no. 5
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 2 December 2020

Mahdi Salehi, Masomeh Mirozadeh, Mohammad Sadegh Adibian, Hamideh Nazaridavaji and Fahimeh Irvani Qale Sorkh

The current study aims to investigate the relationship between relative performance and change manager in Iran.

Abstract

Purpose

The current study aims to investigate the relationship between relative performance and change manager in Iran.

Design/methodology/approach

For this study, the reasons for CEO change and the contributing factors to performance were defined based on the industry type. A systematic elimination approach is applied to select the study sample among listed companies on the Tehran Stock Exchange during 2012–2016. Finally, a 390 firm-year population was tested using multiple regression.

Findings

The results of hypothesis testing indicate that the possibility of managerial change is less likely after a positive return of the market performance. Moreover, hypothesis testing results reveal that peer firms and specific-firm performance do not contribute to managerial change. The findings also demonstrate that systematic risk has a negative impact on managerial change, whereas unsystematic risks do not significantly play a part in managerial change.

Originality/value

As the present study is the pioneer study on the impact of managerial change factors on Iranian firms' relative performance, the findings of this study can contribute to the realm of this study and the related literature.

Details

Journal of Facilities Management , vol. 19 no. 1
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 1 June 2005

Shu‐Chi Lin and Yin‐Mei Huang

This study aims to examine what kind of role social capital plays in the relationship between human capital and career outcomes, with a particular focus on testing the…

5420

Abstract

Purpose

This study aims to examine what kind of role social capital plays in the relationship between human capital and career outcomes, with a particular focus on testing the mediation and moderation models.

Design/methodology/approach

Using data compiled from 111 employees at three financial institutions in Taiwan, social capital was measured by employees based on network in‐degree centrality, and development potential was measured by supervisors.

Findings

Results showed that the effects of human capital on developmental potential were fully mediated by social capital. Moreover, employees with firm‐specific human capital, managerial positions and longer tenure, received higher potential evaluations by their supervisors through their central positions.

Research limitations/implications

The study shed light on the direct and significant effects of social capital on developmental potential, while human capital should translate into social capital to get positive career outcomes. That is, it is social capital that transforms human capital into workplace gains, e.g. producing positive career outcomes and increasing supervisors' perception of potential.

Practical implications

Employees should make best use of social capital transformed from human capital to obtain positive career outcomes in the organizations.

Originality/value

Support for the authors' mediation model suggests that both social capital and careers literature can be enhanced though integration. It follows that future research on career outcomes would benefit from the inclusion of social capital variables.

Details

Journal of Intellectual Capital, vol. 6 no. 2
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 20 June 2016

M. Carmen Díaz-Fernández, M. Rosario González-Rodríguez and Biagio Simonetti

Despite an increasing number of studies focusing on workforce diversity, few consistent results and conclusions have yet been reached (Shore et al., 2009). The purpose of…

1459

Abstract

Purpose

Despite an increasing number of studies focusing on workforce diversity, few consistent results and conclusions have yet been reached (Shore et al., 2009). The purpose of this paper is to develop an integrative model of diversity, taking the Upper Echelon Theory further.

Design/methodology/approach

The model proposed tests the influence of job-related and non-job-related (or task-related) top management team (TMT) diversity on firm performance and strategic change. The mediation effect of performance on the TMT diversity-strategic change relation is emphasized in the model. A covariance-based structural equation modelling has been used to test the relationships involved in the research model.

Findings

An inverse relation between prior organizational performance and strategic change is found and some TMT diversity predictors appear to be more relevant than others in explaining performance and strategic change. In addition the mediator role of performance significantly influences the TMT diversity composition-strategic change relation.

Originality/value

The paper makes several contributions to the existing literature on TMT diversity and the TMT diversity composition-firm performance-strategic change relation.

Details

Management Decision, vol. 54 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 4 December 2017

Pi-Hsun Tseng, Xuan-Qi Su and Hsiu-Jung Tsai

The purpose of this paper is to study the effect of managerial education levels on the wealth effect at the time of investment announcements, by testing two competitive…

Abstract

Purpose

The purpose of this paper is to study the effect of managerial education levels on the wealth effect at the time of investment announcements, by testing two competitive hypotheses: the agency theory-based overinvestment hypothesis vs the Q-theory-based organizational legitimacy hypothesis.

Design/methodology/approach

The authors construct the sample by hand-collecting the announcement dates of capital investments from major newspapers published in Taiwan from 2006 to 2014. The authors then use the event study methodology to estimate cumulative abnormal returns at the time of investments announcements to measure the wealth effect. Finally, the authors examine the wealth effect for capital-investing firms with higher managerial education vs those with lower managerial education. The authors also conduct a cross-sectional regression to test the relation between the wealth effect of capital investment and managerial education.

Findings

The empirical results indicate that the wealth effect at the time of investment announcements is less favorable for firms with better-educated managers; this negative relation is mitigated for firms with higher institutional ownership and is aggravated for family-controlled firms; and the overall findings are supported by the agency theory-based overinvestment hypothesis, suggesting that higher managerial education lead to greater managerial optimism/overconfidence, which in turn increases the likelihood of overinvestment and implies a less favorable wealth effect associated with capital investment.

Originality/value

This study contributes to the literature by proposing a new, unexplored stock market’s reaction channel through which managerial education signals adverse information about potential overinvestment behavior, even though many studies suggests that managerial education serves as an indication of knowledge/capability and improves firm performance.

Details

Managerial Finance, vol. 43 no. 12
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 30 October 2009

Scott Fung, Hoje Jo and Shih‐Chuan Tsai

The purpose of this paper is to examine the ways in which stock market valuation and managerial incentives jointly affect merger and acquisition (M&A) decisions and…

3071

Abstract

Purpose

The purpose of this paper is to examine the ways in which stock market valuation and managerial incentives jointly affect merger and acquisition (M&A) decisions and post‐M&A performance, and to provide new evidence on the agency implications where such acquisitions are driven by the stock market.

Design/methodology/approach

Utilizing all publicly‐traded US firms in the NYSE, AMEX and NASDAQ during the period from 1992 to 2005 (excluding financial and utility firms), obtained from COMPUSTAT, CRSP, I/B/E/S, and the M&A database provided by SDC Platinum, this paper adopts a two‐stage approach: the first stage, predicts the probability of an M&A based on the market valuation variables; the second stage, regresses the post‐M&A firm performance on the predicted probability of a merger or acquisition from the first stage and other control variables.

Findings

Market valuation has a significant influence on corporate acquisition decisions, particularly for those firms whose compensation packages include less managerial equity ownership, more executive stock options and no long‐term incentive plans, and in those firms where CEOs are serving on the board of directors. The value‐destroying acquisitions made by these types of managers are likely to be financed using the firms' stocks, executed with high premiums and undertaken during periods of high market valuation.

Originality/value

The main finding suggests that market‐driven acquisitions could be value destroying when managers engage in opportunistic acquisitions for reasons of self‐interest. Managerial myopia, overconfidence, misaligned incentives, empire‐building motives and poor corporate governance can all exacerbate the agency problem of market‐driven acquisitions.

Details

Review of Accounting and Finance, vol. 8 no. 4
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 6 March 2017

Karnica Tanwar and Asha Prasad

The purpose of this paper is to conceptualise, develop and validate a scale to measure the employer brand from the perspective of existing employees.

3863

Abstract

Purpose

The purpose of this paper is to conceptualise, develop and validate a scale to measure the employer brand from the perspective of existing employees.

Design/methodology/approach

The methodology entailed the compilation of a literature review and conduction of qualitative interviews to generate items. Five employer brand dimensions have been derived through exploratory factor analysis and further validated through confirmatory factor analysis by using a separate data of 313 employees. Also, the employer brand has been specified as a second-order factor that is determined by five first-order factors.

Findings

A final 23-item EB scale covering five dimensions of the employer brand has been developed. The dimensions identified are: a healthy work atmosphere, training and development, work-life balance, ethics and corporate social responsibility, and compensation and benefits. Also, the higher order measurement model suggests that employer brand is most influenced by the “healthy work atmosphere” dimension. These dimensions reflect the perceptions of existing employees regarding their organisation. The scale is found to be psychometrically sound for measuring the employer brand.

Practical implications

The scale is useful for both researchers and practitioners. A deeper insight into the dimensions may help managers to identify their impact on organisational outcomes like employee satisfaction, employee retention, commitment and productivity. Also, organisations can measure the perceptions of employees for identifying improvement gaps and developing effective attraction and retention strategies. The scale also provides researchers with a sought-after conceptualisation of employer brand.

Originality/value

The authors believe that the study is the first of its kind wherein the employer brand has been modelled as a second-order factor from the perspective of the existing employees.

1 – 10 of over 11000