Search results

1 – 10 of over 11000
Article
Publication date: 22 August 2023

Zhe Li, Xinrui Liu and Bo Wang

Accounting scandals and earnings management problems at large firms such as Global Crossing and Enron have resulted in lots of wealth loss not only to corporate investors but also…

Abstract

Purpose

Accounting scandals and earnings management problems at large firms such as Global Crossing and Enron have resulted in lots of wealth loss not only to corporate investors but also led tremendous damage to societies. Hence, policymakers and academic researchers have started to explore mechanisms to prevent improprieties in financial reporting and further enhance firm value. Using data from United States (US)-listed companies between 2000 and 2018, this article explores the effect of ex-military executives on earnings quality, the role of financial analysts in their interplay and the firm value implication of earnings quality driven by ex-military executives.

Design/methodology/approach

This study employs a firm fixed-effects model to validate the main conjecture and adopts the weighted least squares, Granger causality analysis, instrumental variable approach, propensity score matching, entropy balancing approach and dynamic system Generalized Method of Moments (GMM) estimator to address robustness and endogeneity issues.

Findings

Authors reveal that companies run by ex-military senior executives exhibit lower levels of accruals-based and real earnings management than those without. The effect of management military leadership on constraining earnings management is more prominent for companies with low analyst coverage, suggesting that the military experience of executives could be a substitute for external monitoring. Authors also find that these ethical managers alleviate the negative impact of earnings management on firm value and that companies managed by these managers exhibit higher firm performance.

Practical implications

This study highlights the importance of the intrinsic motivation behind the effect of military experience on senior managers' personalities and offers essential stakeholder-related implications regarding the effect of military experience. The military experience of senior managers helps facilitate the attainment of broader corporate governance and economic objectives.

Originality/value

This article adds new insights to the literature on the role of managerial military experience in decision-making processes, financial reporting outcomes and firm performance by employing the upper echelons and imprinting theoretical perspectives.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 17 September 2020

Zhe Li and Megan Rainville

The purpose of this study is to examine the relationship between independent director military service and monitoring effectiveness, focusing on chief executive officer (CEO…

Abstract

Purpose

The purpose of this study is to examine the relationship between independent director military service and monitoring effectiveness, focusing on chief executive officer (CEO) compensation.

Design/methodology/approach

The authors identify independent directors with military experience using BoardEx data. The authors focus on the level of CEO compensation. The methods used include panel data estimation, propensity score matching analysis and instrumental variable analysis.

Findings

The authors find more powerful CEOs are more likely to appoint independent directors with past military service to the board. Boards with a larger proportion of independent directors with military experience tend to award higher levels of CEO compensation. Moreover, the positive relationship between independent directors with military experience and executive compensation is stronger when the CEO is more powerful.

Originality/value

This paper examines a relatively unexplored director background, directors with military experience, and finds this type of independent director is associated with weak monitoring. The authors contribute to the literature examining the effect of executive and board member military experience on corporations. The authors identify weak monitoring of powerful CEOs as a potential weakness of directors with military experience. This drawback should be considered before appointing a director with military experience to the board.

Details

International Journal of Managerial Finance, vol. 17 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 1 August 2023

Iman Harymawan, Damara Ardelia Kusuma Wardani and John Nowland

This study investigates the relationship between companies with military directors and audit fees in Indonesia.

Abstract

Purpose

This study investigates the relationship between companies with military directors and audit fees in Indonesia.

Design/methodology/approach

Using upper echelon and audit pricing theories, the authors examine military directors' roles in the demand for and supply of auditing services. The authors use Indonesia as their research setting as their military forces have a long history of involvement in business. The study sample includes 898 firm-year observations on the Indonesia Stock Exchange during 2014–2018.

Findings

The authors find a negative relationship between military connections and audit fees. This is consistent with auditors assessing lower audit risk and charging lower audit fees to companies that have leaders with military experience. The study findings are strongest where there is military experience on the board of directors and where the military experience is from the Army.

Originality/value

This study extends the literature on the benefits of military experience in company leadership, especially in the context of auditing research. The study findings also have implications for the selection of board candidates and auditor risk assessments.

Details

Journal of Accounting in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 10 September 2021

Xi Zhong, Tiebo Song and Liuyang Ren

Based on the socioemotional wealth theory, this study aims to empirically investigate how founder reign, that is a founder serving as a cheif executive officer (CEO) or chairman…

Abstract

Purpose

Based on the socioemotional wealth theory, this study aims to empirically investigate how founder reign, that is a founder serving as a cheif executive officer (CEO) or chairman, influences family firms' research and development (R&D) investment in emerging economies (e.g. China).

Design/methodology/approach

This study empirically tested the hypotheses based on a sample of listed Chinese family companies from 2008 to 2018.

Findings

Founder reign has a negative impact on family firms' R&D investment. Particularly, the negative impact of the founder serving as chairman on family firms' R&D investment is larger than the negative impact of the founder serving as CEO on family firms' R&D investment. Founder's military experience weakens the negative impact of founder reign on family firms' R&D investment, but founder's executive master of business administration (E)MBA experience has no moderating effect on this relationship.

Originality/value

First, the authors contribute to the family firm innovation literature by providing an alternative but complementary explanation of why family firms have relatively low R&D investment levels. This research shows that founder reign is a key reason for family firms in China eschewing R&D investment. Second, by incorporating the founder serving as CEO and the founder serving as chairman into the analytical framework, and then examining their impact on family firms' R&D investment, our research helps us to fully understand the impact of founder reign on firm strategic actions. Third, we contribute to the “founder reign-firm strategic actions” framework by revealing how founders' human capital profoundly affects the relationship between founder reign and family firms' R&D investment.

Details

European Journal of Innovation Management, vol. 26 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 3 June 2021

Anna Molnár, Lili Takács and Anna Urbanovics

The European Union’s (EU’s) Common Security and Defence Policy (CSDP) has gained increasing attention as the EU faces new threats and challenges from its surroundings. As part of…

Abstract

Purpose

The European Union’s (EU’s) Common Security and Defence Policy (CSDP) has gained increasing attention as the EU faces new threats and challenges from its surroundings. As part of its CSDP, the EU currently runs six military operations and 11 civilian missions. This paper aims to analyze the EU’s social media use of four CSDP missions and operations running in two regions: in the Mediterranean and in the Western Balkans.

Design/methodology/approach

The paper has a mixed-methods research design. A computer-assisted content analysis was conducted to extract data on the Twitter communication of the chosen missions, followed by a quantitative analysis on which elements of the EU’s strategic communication can be identified. The timeframe for investigation was set up between 1 January 2019 and 31 August 2020.

Findings

Patterns of communication cannot be recognized either based on regional or on the civilian-military division. The strong connectivity with the accounts of other European actors and/or institutions is striking. This study finds that the concept of local ownership can be observed only at European level, local populations of the host countries are usually not targeted. Even though several elements of the EU’s strategic communication are recurrent on the missions’ official Twitter account, Twitter communication seems to be an intra-European communication tool.

Originality/value

The research revealed the main features of the Twitter communication of four CSDP missions. Due to the software-assisted methodology, measuring influence score was made possible, a feature that was still missing from academic literature regarding this specific area, the EU’s CSDP.

Details

Transforming Government: People, Process and Policy, vol. 15 no. 3
Type: Research Article
ISSN: 1750-6166

Keywords

Article
Publication date: 17 October 2008

Kim‐Kwang Raymond Choo

The purpose of this paper is to consider the risks posed by politically exposed persons (PEPs) and explain the money laundering risk when entering into financial transactions and…

1704

Abstract

Purpose

The purpose of this paper is to consider the risks posed by politically exposed persons (PEPs) and explain the money laundering risk when entering into financial transactions and business relationships with PEPs. Risk mitigation by regulated entities and corruption prevention strategies are also outlined. To minimise money‐laundering risks associated with PEPs, legislation will need to adapt to deal with threats that organized criminals and terrorists seek to exploit. Future directions for research in relation to PEPs are also identified.

Design/methodology/approach

An analysis of how regulated entities can reduce their risk of money laundering when entering into financial transactions and business relationships with PEPs is presented.

Findings

It was found that there is a need to harmonise legally enforceable obligations targeting PEPs. PEP monitoring, arguably, should be extended to individuals holding prominent public functions in their own jurisdictions, individuals exercising functions not normally considered prominent but who have political exposure comparable to that of similar positions at a prominent level, and individuals holding important positions in private sectors such as CEOs of listed companies. Regulated entities in the private sector need to play their part to mitigate their risks such as conducting ongoing environmental scans of risks of money laundering and the financing of terrorism.

Originality/value

This paper improves awareness of the potential money laundering risks when entering into financial transactions and business relationships with PEPs and makes several recommendations to mitigate the risk posed by PEPs.

Details

Journal of Money Laundering Control, vol. 11 no. 4
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 1 January 2005

Betty Santangelo and Margaret A. Jacobs

Discusses the most significant criminal prosecutions and regulatory actions in response to recent anti‐money laundering compliance lapses and the resulting concern in the…

2213

Abstract

Purpose

Discusses the most significant criminal prosecutions and regulatory actions in response to recent anti‐money laundering compliance lapses and the resulting concern in the financial community.

Design/methodology/approach

Reviews earlier criminal enforcement actions; the recent prosecution of Riggs Bank; non‐criminal regulatory enforcement actions toward Banco de Chile, Korea Exchange Bank, Arab Bank, and Gulf Corporation; additional consent orders and supervisory agreements requiring enhancement of PATRIOT Act and Bank Secrecy Act compliance systems at more than 20 banks; broker‐dealer actions; and other actions.

Findings

Concludes that both law enforcement and regulators have embraced stricter anti‐money‐laundering enforcement standards despite some criticism from the financial industry, and that recent criminal enforcement actions bear careful analysis by the financial community; predicts that regulators and law enforcement officials will broaden their scope from banking institutions to include broker‐dealers and other non‐bank institutions as well; and recommends that all financial institutions devote greater resources to establish effective anti‐money‐laundering policies and procedures, particularly in the areas of due diligence for high‐risk customers and suspicious activity reporting (SAR).

Originality/value

A detailed review of recent anti‐money‐laundering violations and enforcement actions along with practical recommendations for financial institutions by two expert compliance lawyers with a specialty in anti‐money‐laundering.

Details

Journal of Investment Compliance, vol. 6 no. 1
Type: Research Article
ISSN: 1528-5812

Keywords

Article
Publication date: 26 September 2023

Nam Hoang Le, Zhe Li and Megan Ramsey

The purpose of this study is to examine the relationships between chief executive officers (CEOs) with military service and firm dividend and cash holding decisions.

Abstract

Purpose

The purpose of this study is to examine the relationships between chief executive officers (CEOs) with military service and firm dividend and cash holding decisions.

Design/methodology/approach

The authors use a sample of Standard and Poor's (S&P) 1500 firms in the USA over a sample period from 1999 to 2017 and a panel data approach, as well as instrumental variable (IV)analysis. The models control for firm characteristics as well as industry and year-fixed effects.

Findings

The results show CEOs with military service are associated with higher total payout and less cash. Higher dividends appear to drive the total payout result. When cash holdings are split into pure cash and short-term investments, the reduction in cash holdings is driven by a reduction in pure cash. The findings are more pronounced for powerful CEOs and CEOs with low labor mobility. Military CEOs are also associated with less risk, measured by stock return volatility and return on assets (ROA) volatility.

Originality/value

Overall, the results are consistent with military CEOs implementing conservative policies that reduce firm risk, curtailing the demand for precautionary cash and reducing the necessity to forego dividend payouts.

Details

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

Keywords

Expert briefing
Publication date: 21 September 2015

Executive-military relations.

Details

DOI: 10.1108/OXAN-DB205415

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 10 April 2009

Yehuda Baruch and James Campbell Quick

The purpose of this paper is to discuss why organizations who are looking for top executives, should enlist former military officers and senior enlisted leaders, who make…

922

Abstract

Purpose

The purpose of this paper is to discuss why organizations who are looking for top executives, should enlist former military officers and senior enlisted leaders, who make excellent candidates.

Design/methodology/approach

Questionnaires with both closed‐ and open‐ended questions generate responses from more than 300 former Navy admirals. This paper reports the qualitative findings emerging from the open‐ended questions.

Findings

The authors identify the perspectives that enable a smooth transition from the structured military to a civilian career. Embracing the new environment proves essential, while clinging to the past has detrimental outcomes.

Research limitations/implications

It is yet to be determined whether former military leaders represent the wider population of executives at traditional organizations moving to a business environment.

Practical implications

The admirals' career shift should shed light on broader questions of transition into a business environment, as well as the specific element of embarking on a second career at a late age and the impact of organizational support mechanisms.

Originality/value

Careers in industry since the last quarter of the twentieth century have become boundaryless, turbulent, even chaotic. Many people have to change their approach to careers, yet few studies examine mass transition from traditional systems to a second career in business. This paper should assist HR theorists and practitioners who deal with such career transition.

Details

Personnel Review, vol. 38 no. 3
Type: Research Article
ISSN: 0048-3486

Keywords

1 – 10 of over 11000