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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.

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.

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.

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.

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.

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.

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

Analytical model; multivariate regression analysis.

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.

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

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.

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.

It is an original work.

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

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.