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1 – 10 of over 12000Ashish Kalra, Omar S. Itani and Sijie Sun
This study examines the contextual variables that can curb the negative effects of role conflict on job satisfaction and enhance the positive effect of job satisfaction on…
Abstract
Purpose
This study examines the contextual variables that can curb the negative effects of role conflict on job satisfaction and enhance the positive effect of job satisfaction on creativity and service performance. More specifically, adopting the job demands-resources theory, the authors explore the interactive effect of frontline employee (FLE) self-monitoring and FLE-manager trust on the relationship between role conflict and job satisfaction. Extending this line of inquiry, the authors adopt social identity theory and analyze the moderating effect of FLE-manager identification on the relationship between job satisfaction and creativity and between job satisfaction and service performance.
Design/methodology/approach
Dyadic data utilizing 122 responses from FLEs and their managers were obtained from FLEs working with a major financial services firm in India. Structural equation modeling and PLS were used to assess the hypothesized relationships.
Findings
The negative relationship between role conflict and job satisfaction is reduced at higher levels of FLE self-monitoring and FLE-manager trust. Furthermore, FLE manager identification accentuates the effect of job satisfaction on creativity and service performance.
Practical implications
Organizations should invest in developing FLEs' personal and job-related resources to reduce the deleterious effects of role conflicts on FLEs' job outcomes. Specifically, managers should hire FLEs who are high in self-monitoring while enhancing FLE-manager trust and FLE-manager identification.
Originality/value
Role conflict is inevitable in a service job and can have serious negative downstream consequences. Hence, the study explores the important contextual factors that can help an organization develop policies to reduce the negative effects of role conflict.
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Serdar Turedi and Asligul Erkan-Barlow
The purpose of this paper is to examine the effects of managerial myopia on information technology (IT) investment. Specifically, it aims to investigate the influence of chief…
Abstract
Purpose
The purpose of this paper is to examine the effects of managerial myopia on information technology (IT) investment. Specifically, it aims to investigate the influence of chief information officer (CIO) compensation on IT investment and the moderating role of the board monitoring strength on this relationship.
Design/methodology/approach
The study examines a sample of 194 firms listed on US stock exchanges with a CIO position in 2019. The authors employ hierarchical regression analysis to test the hypothesis.
Findings
The results show that CIO compensation negatively influences IT investment. Further, even though vigilant board monitoring does not necessarily reduce such opportunistic behaviors, weak board monitoring creates an environment for such actions.
Research limitations/implications
First, the cross-sectional data can limit the results' generalizability. Second, the sampling frame is not perfectly random as it consists of firms that have CIO compensation information in the ExecuComp for 2019. Third, we include only two measures of board monitoring strength.
Practical implications
Board of directors should wisely select compensation packages' components since equity incentives potentially exacerbate managerial myopia. Moreover, firms may regulate CIOs' investment behaviors through board-level IT governance.
Originality/value
This study is one of the few studies that utilize CIO sensitivity to measure CIO compensation. Moreover, by examining the factors affecting IT investment behavior, this study sheds light on CIO incentives' impact on IT investment behaviors. Finally, to the best of the authors' knowledge, this is the first study to investigate board monitoring's role in the relationship between CIO sensitivity and IT investment intensity.
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Muhammad Ilyas, Rehman Uddin Mian and Affan Mian
This study examines whether and how the legal origin of foreign institutional investors (FIIs) impacts corporate investment efficiency.
Abstract
Purpose
This study examines whether and how the legal origin of foreign institutional investors (FIIs) impacts corporate investment efficiency.
Design/methodology/approach
The study employs a large panel dataset of firms from 32 non-USA countries from 2005 to 2018. Financial and institutional ownership data are obtained from the COMPUSTAT Global and Public Ownership databases in S&P Capital IQ, respectively. The study employed ordinary least squares (OLS) regression with year and firm fixed effects. In addition, two-stage least squares with instrumental variable regression (2SLS-IV) and propensity score matching (PSM) approaches were employed to address the potential endogeneity.
Findings
The findings of this study suggest that common- and civil-law FIIs differ in their monitoring capabilities to promote investment efficiency. The authors find evidence that increased equity ownership by common-law FIIs, not civil-law investors, strengthens the investment-Q sensitivity, resulting in higher investment efficiency. Consistent with the monitoring and information channel, the results further indicate that the positive impact of common-law FIIs on investment efficiency is stronger in host environments susceptible to agency conflicts and information asymmetry.
Originality/value
This study offers novel evidence on the heterogeneous monitoring role of FIIs with regard to their home countries' legal origins and their impact on investment efficiency in an international context.
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Fang Xie, Xufan Zhang, Jing Ye, Lulu Zhou, Wenjian Zhang and Feng Tian
Based on the resource conservation theory, this research paper aims to evaluate the positive impact of customer orientation on frontline employees' emotional exhaustion and the…
Abstract
Purpose
Based on the resource conservation theory, this research paper aims to evaluate the positive impact of customer orientation on frontline employees' emotional exhaustion and the moderating effects of customer incivility and supervisor monitoring.
Design/methodology/approach
Two-wave data from 484 frontline employees in power supply business halls were analyzed. This study used AMOS 23.0, SPSS22.0 and PROCESS macro for data statistics and analysis.
Findings
Our empirical research demonstrates that customer orientation has a significant positive impact on frontline employees' emotional exhaustion. At the same time, supervisor monitoring moderates the relationship between customer orientation and emotional exhaustion. The higher the interactional or observational monitoring, the stronger customer orientation's effect on frontline employees' emotional exhaustion. Moreover, a three-way interaction model exists between customer orientation, customer incivility and supervisor monitoring.
Practical implications
This study yields practical implications for helping the frontline employees of service-oriented organizations alleviate multiple interpersonal workplace pressures.
Originality/value
Based on resource conservation theory, this paper used a novel approach to focus on customer orientation, customer incivility and supervisor monitoring as interpersonal stressors.
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This paper aims to investigate the impact of board characteristics on CEO turnover performance relationship (TPR) in Indian listed firms.
Abstract
Purpose
This paper aims to investigate the impact of board characteristics on CEO turnover performance relationship (TPR) in Indian listed firms.
Design/methodology/approach
A subset of the Standard and Poor’s Bombay Stock Exchange 500 (S&P BSE 500) Index companies was analyzed over the period 2015–2019 using the logistic (fixed-effects) regression model.
Findings
It was found that a weak relationship exists between CEO turnover and firm performance. With respect to board characteristics, board size was found to have a significant role in strengthening the TPR. However, other characteristics, such as board independence, multiple directors, board meetings and board gender diversity, played no role in influencing the TPR.
Research limitations/implications
First, the study period is limited to five years, during which several sample firms did not face any CEO turnover event leading to small sample size. Second, this study considers only the board’s gender diversity, whereas other types of diversity are omitted. Third, this study does not differentiate between insider and professional CEOs.
Practical implications
The findings suggest that regulators should focus on the effective enforcement of laws to strengthen the TPR and improve the monitoring role of boards, particularly in emerging economies like India, which face type II agency problems in addition to traditional principal–agent conflict. The results also offer implications for corporations, investors and academic researchers, highlighting areas that need considerable attention pertaining to corporate governance.
Originality/value
This study discerns the impact of several board-related characteristics on the TPR, particularly after the introduction of the new Companies Act 2013 in the emerging economy of India, where it has not been explored extensively.
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Ummya Salma and Md. Borhan Uddin Bhuiyan
This study aims to examine whether the presence of advisory directors affects firm discretionary accruals (DACC), a widely used proxy for financial reporting quality. The authors…
Abstract
Purpose
This study aims to examine whether the presence of advisory directors affects firm discretionary accruals (DACC), a widely used proxy for financial reporting quality. The authors argue that the advisory director weakens the board monitoring role and impairs the firm financial reporting quality by increasing DACC.
Design/methodology/approach
The sample consists of listed firms on the Australian Stock Exchange from 2001 to 2015 using 7,649 firm-year observations. The authors perform descriptive statistics, regression and propensity score matching analyses to examine the research hypothesis.
Findings
The research evidence that firms with a higher presence of advisory directors have more DACC, indicating poor financial reporting quality. Furthermore, the authors categorize the DACC and find that the firm has higher income-increasing DACC in the presence of higher advisory directors. The findings are robust concerning endogeneity issues.
Research limitations/implications
The research evidence that firms with a higher presence of advisory directors have more DACC, indicating poor financial reporting quality. Furthermore, the authors categorize the DACC and find that the firm has higher income-increasing DACC in the presence of higher advisory directors. The findings are robust concerning endogeneity issues.
Practical implications
The research contributes valuable insights for regulators and policymakers seeking to comprehend the implications of firms using more advisory directors. Additionally, the authors recognize the potential significance of the findings for the institution of directors, as they can provide a nuanced understanding of the specific roles played by advisory directors in organizational dynamics.
Originality/value
While the extensive body of literature on corporate governance and financial reporting quality has been well-established, a noticeable void exists in academic research delving into the relationship between advisory directors and DACC management. This study seeks to fill this gap, making a distinctive and original contribution to the existing literature on corporate governance.
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Jinwei Zhao, Shuolei Feng, Xiaodong Cao and Haopei Zheng
This paper aims to concentrate on recent innovations in flexible wearable sensor technology tailored for monitoring vital signals within the contexts of wearable sensors and…
Abstract
Purpose
This paper aims to concentrate on recent innovations in flexible wearable sensor technology tailored for monitoring vital signals within the contexts of wearable sensors and systems developed specifically for monitoring health and fitness metrics.
Design/methodology/approach
In recent decades, wearable sensors for monitoring vital signals in sports and health have advanced greatly. Vital signals include electrocardiogram, electroencephalogram, electromyography, inertial data, body motions, cardiac rate and bodily fluids like blood and sweating, making them a good choice for sensing devices.
Findings
This report reviewed reputable journal articles on wearable sensors for vital signal monitoring, focusing on multimode and integrated multi-dimensional capabilities like structure, accuracy and nature of the devices, which may offer a more versatile and comprehensive solution.
Originality/value
The paper provides essential information on the present obstacles and challenges in this domain and provide a glimpse into the future directions of wearable sensors for the detection of these crucial signals. Importantly, it is evident that the integration of modern fabricating techniques, stretchable electronic devices, the Internet of Things and the application of artificial intelligence algorithms has significantly improved the capacity to efficiently monitor and leverage these signals for human health monitoring, including disease prediction.
Moncef Guizani and Gaafar Abdalkrim
The purpose of this study is to analyze the impact of board gender diversity (BGD) on working capital management (WCM) decision by scrutinizing different positions covered by…
Abstract
Purpose
The purpose of this study is to analyze the impact of board gender diversity (BGD) on working capital management (WCM) decision by scrutinizing different positions covered by female board directors.
Design/methodology/approach
This study uses a panel data regression model with fixed effect estimations and the generalized method of moments (GMM) to determine the impact of BGD on WCM strategy. This study uses a panel data analysis for 277 non-financial firms listed on Bursa Malaysia over the period from 2011 to 2019.
Findings
The results of this study show that female directors fulfilling either monitoring or executive positions increase the investment in working capital (WC), suggesting a conservative WCM. Precisely, results from this study are consistent with the embedded risk aversion traits of female executives and, hence, preserve high level of investment in WC, which allows superior levels of liquidity to meet firms’ financial commitments. The results also show that Malaysia commitment to gender equality is a key moderator in the female directors – firm WCM relation. The authors find that when the level of gender equality is greater, female directors support firms in adopting aggressive WCM strategies.
Practical implications
This study’s findings provide insights for corporate decision-makers in helping them to determine the board’s design in term of roles and composition that enhances the efficiency of WC. The results also provide guidelines for policymakers and regulators to formulate strategies that support more female board representation. In this way, firms should appoint more female directors on their boards to ensure prudent WC decisions. Moreover, given that female directors are an important determinant of a firm’s WC policy, investors and various internal or external monitoring groups need to factor boardroom gender diversity into their investing, hiring and monitoring mechanisms.
Originality/value
While prior research has examined the effect of BGD on firm performance, to the best of the authors’ knowledge, this study is the first to investigate the effect of BGD on the WCM decision.
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Taha Almarayeh, Beatriz Aibar-Guzman and Óscar Suárez-Fernández
In light of the key role attributed to the board of directors as a monitoring tool to constrain earnings management practices, this study aims to examine the effect of some board…
Abstract
Purpose
In light of the key role attributed to the board of directors as a monitoring tool to constrain earnings management practices, this study aims to examine the effect of some board attributes on accrual-based earnings management and real earnings management in the Middle Eastern and North African (MENA) context, whose institutional, economic and legal environment is markedly different from that of most organization for economic cooperation and development countries.
Design/methodology/approach
The authors selected a sample of 161 nonfinancial companies from nine MENA countries between 2014 and 2021 (corresponding to an unbalanced data panel of 486 observations). The authors used the generalized least squares regression test to examine the relationship between board attributes and earnings management.
Findings
The authors found that three board attributes (size, independence and gender diversity) have no effect on both types of earnings management practices, while CEO duality has no effect on accrual-based earnings management but has a significant and negative effect on real earnings management. Overall, the results suggest that most board attributes do not play a crucial role in reducing earnings management.
Research limitations/implications
The results provide valuable insights into the universal role of corporate governance mechanisms and raise questions about the role of the board of directors in improving reporting quality in the MENA context.
Practical implications
Regulators should adapt corporate governance mechanisms to the characteristics of the institutional context in which they are inserted.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine the effect of various board characteristics on both types of earnings management practices in the MENA context. It also provides the first empirical evidence of the relationship between board gender diversity and earnings management in the MENA region.
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Muhammad Ilyas, Rehman Uddin Mian and Affan Mian
Using a comprehensive sample from developed and emerging economies, this study aims to examine whether foreign institutional investors (FIIs) enhance the value of excess cash by…
Abstract
Purpose
Using a comprehensive sample from developed and emerging economies, this study aims to examine whether foreign institutional investors (FIIs) enhance the value of excess cash by constraining the potential self-appropriating managerial propensity related to its inefficient utilization.
Design/methodology/approach
This study uses a large panel data set of firms from 32 non-US countries from 2007 to 2018. Using data from COMPUSTAT Global and S&P Capital IQ, this study uses ordinary least squares regression with year- and firm-fixed effects for the baseline analysis. In addition, two-stage least squares with instrumental variable regression and propensity score matching approaches were used to address the potential endogeneity.
Findings
This study shows that FIIs significantly increase the value of excess cash holdings. The authors also found that the positive impact of FIIs is more significant when investors come from common-law countries with better governance and investor protection. Furthermore, in countries and firms with weaker governance controls, the relationship between FIIs and the value of excess cash is stronger, consistent with the institutional monitoring hypothesis. Collectively, the findings imply that FIIs are advantageous to investees because they effectively promote the efficient deployment of corporate resources.
Practical implications
Collectively, the findings of this study imply that FIIs are advantageous to investees because they effectively promote the efficient deployment of corporate resources.
Originality/value
This study offers new evidence on how FIIs impact the value of excess cash in an international setting. In addition, it highlights the significance of the legal origin of institutional investors’ home country and the governance quality of host countries and investee firms in influencing the effect of foreign institutional monitoring on the value of excess cash.
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