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Article
Publication date: 13 October 2023

Faraj Salman Alfawareh, Edie Erman Che Johari and Chai-Aun Ooi

This paper aims to investigate the effect of governance mechanisms and firm performance on chief executive officer (CEO) compensation in relation to the Jordanian business…

Abstract

Purpose

This paper aims to investigate the effect of governance mechanisms and firm performance on chief executive officer (CEO) compensation in relation to the Jordanian business environment. This study also examines the moderating role of gender diversity.

Design/methodology/approach

The sample is drawn from the annual reports of 68 Jordanian firms between 2015 and 2019. This paper uses the ordinary least square regression. It also uses the generalised method of moments approach to control any endogeneity issue and analyses the data in depth. In addition, it uses a dynamic model to address concerns regarding causality in the study’s models.

Findings

The results show that governance mechanisms and firm performance have an impact on CEO compensation. Furthermore, the outcomes indicate that gender diversity significantly and positively moderates the association between firm performance and CEO compensation. These findings enhance and support agency theory in the context of Jordan.

Practical implications

The study’s results have significant implications for policymakers, shareholders, investors, academicians and the public in the developing Jordanian market. The findings also support more monitoring and inspection to prevent the occurrence of opportunistic management behaviour and ensure that CEO remuneration packages are appropriately designed.

Originality/value

This study provides a unique understanding by explaining the impact of governance and performance on CEO compensation in a developing country such as Jordan. Besides that, the current study extends prior studies in Jordan significantly.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 23 January 2024

Fan Zhang and Haolin Wen

Based on dual information asymmetry, the two-stage segmented compensation mechanism for technological innovation of civilian enterprises’ participation in military (CEPIM) has…

Abstract

Purpose

Based on dual information asymmetry, the two-stage segmented compensation mechanism for technological innovation of civilian enterprises’ participation in military (CEPIM) has been discussed.

Design/methodology/approach

On the basis of the traditional principal-agent problems, the incentive compatibility condition is introduced as well as the hybrid incentive compensation model is established, to solve optimal solution of the compensation parameters under the dynamic contract condition and the validity is verified by numerical simulation.

Findings

The results show that: (1) The two-stage segmented compensation mechanism has the functions of “self-selection” and “stimulus to the strong”, (2) It promotes the civilian enterprises to obtain more innovation benefit compensation through the second stage, (3) There is an inverted U-shaped relationship between government compensation effectiveness and the innovation ability of compensation objects and (4) The “compensable threshold” and “optimal compensation threshold” should be set, respectively, to assess the applicability and priority of compensation.

Originality/value

In this paper, through numerical simulation, the optimal solution for two-stage segmented compensation, segmented compensation coefficient, expected returns for all parties and excess expected returns have been verified under various information asymmetry. The results show that the mechanism of two-stage segmented compensation can improve the expected returns for both civilian enterprises and the government. However, under dual information asymmetry, for innovation ability of the intended compensation candidates, a “compensation threshold” should be set to determine whether the compensation should be carried out, furthermore an “optimal compensation threshold” should be set to determine the compensation priority.

Article
Publication date: 29 September 2023

Tyler Hancock, Michael L. Mallin, Ellen B. Pullins and Catherine M. Johnson

This study aims to use cognitive appraisal theory to explain how organizational disruption influences the development of envy resulting in unethical selling practices, turnover…

Abstract

Purpose

This study aims to use cognitive appraisal theory to explain how organizational disruption influences the development of envy resulting in unethical selling practices, turnover intentions and a reduction in customer orientation that causes disruption to impact customer relationships. This research helps to address drivers of salesperson envy, the potential disruptions to customer relationships and the required need to invest in psychological resources to offset these negative effects.

Design/methodology/approach

A total of 211 salespeople were surveyed to test the hypotheses. First, the measurement model was validated using a confirmatory factor analysis. Next, the hypotheses were tested using structural equation modeling AMOS 27. Mediation and moderated mediation were tested using the bootstrap method. Estimands were created within AMOS to test the indirect and interaction effects in the full model. A post hoc analysis further informed the findings.

Findings

The results show that the development of envy increases under conditions of organizational disruptions, leading to potential customer disruptions through turnover intentions, unethical selling behaviors and a reduction in customer orientation. In addition, the mediation analysis shows that envy drives the relationship between organizational disruption and unethical selling, turnover intentions and customer orientation through fully mediated relationships. Finally, the interaction effects between organizational disruption and psychological capital show high levels of psychological capital help to decrease the development of envy, thus reducing unethical selling behaviors and turnover intentions while increasing customer orientation.

Practical implications

The study provides practitioners with insights into how to reduce envy by investing in the psychological capital of their salesforce. The study also provides suggestions for handling disruptions and managing envy to prevent actions that act to damage customer relationships.

Originality/value

Salespeople are likely to encounter organizational disruption. Sales managers need to be prepared to manage the outcomes of organizational disruption as it impacts the sales force. Understanding how disruptions impact customer relationships through envy is an important yet under-explored topic. This research adds to and expands the sales literature using cognitive appraisal theory to help address drivers of salesperson envy and its potentially negative impact on customer relationships and shows the required need to invest in psychological resources to offset these negative effects. The study also helps expand the recent focus on worldwide disruptions by adopting another context for disruption stemming from organizational disruption.

Details

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

Keywords

Article
Publication date: 3 October 2023

Xiaochuan Tong, Weijie Wang and Yaowu Liu

The authors study and compare the effects of three CEO compensation restricting policies issued by the Chinese government in 2009, 2012 and 2015. This paper aims to shed light on…

Abstract

Purpose

The authors study and compare the effects of three CEO compensation restricting policies issued by the Chinese government in 2009, 2012 and 2015. This paper aims to shed light on the conditions under which CEO compenstation can be effectively regulated without negatively affecting firm performance.

Design/methodology/approach

These policies targeted state-owned enterprises (SOEs), especially central state-owned enterprises (CSOEs). Using these policies as natural experiments, the authors investigate how their effects differ on CEO compensation, firm performance and two known performance-decreasing mechanisms: perk consumption and tunneling activities.

Findings

The authors show that restricting CEO pay does not necessarily backfire in terms of deteriorating firm performance. This non-decreasing firm performance can be achieved by restricting perk consumption and tunneling activities while introducing CEO pay regulations.

Originality/value

The authors exploit a powerful experimental setting in the context of China. The evidence contributes to the literature on CEO pay regulations and is relevant to the managerial decisions of policy makers and boards of directors.

Details

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

Keywords

Article
Publication date: 30 April 2024

Omar Malla and Madhavan Shanmugavel

Parallelogram linkages are used to increase the stiffness of manipulators and allow precise control of end-effectors. They help maintain the orientation of connected links when…

Abstract

Purpose

Parallelogram linkages are used to increase the stiffness of manipulators and allow precise control of end-effectors. They help maintain the orientation of connected links when the manipulator changes its position. They are implemented in many palletizing robots connected with binary, ternary and quaternary links through both active and passive joints. This limits the motion of some joints and hence results in relative and negative joint angles when assigning coordinate axes. This study aims to provide a simplified accurate model for manipulators built with parllelogram linkages to ease the kinematics calculations.

Design/methodology/approach

This study introduces a simplified model, replacing each parallelogram linkage with a single (binary) link with an active and a passive joint at the ends. This replacement facilitates countering motion while preserving subsequent link orientations. Validation of kinematics is performed on palletizing manipulators from five different OEMs. The validation of Dobot Magician and ABB IRB1410 was carried out in real time and in their control software. Other robots from ABB, Yaskawa, Kuka and Fanuc were validated using control environments and simulators.

Findings

The proposed model enables the straightforward derivation of forward kinematics and transforms hybrid robots into equivalent serial-link robots. The model demonstrates high accuracy streamlining the derivation of kinematics.

Originality/value

The proposed model facilitates the use of classical methods like the Denavit–Hartenberg procedure with ease. It not only simplifies kinematics derivation but it also helps in robot control and motion planning within the workspace. The approach can also be implemented to simplify the parallelogram linkages of robots with higher degrees of freedom such as the IRB1410.

Details

Industrial Robot: the international journal of robotics research and application, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-991X

Keywords

Article
Publication date: 10 April 2024

Weiting Wang, Yi Liao and Jiacan Li

The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.

Abstract

Purpose

The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.

Design/methodology/approach

This study develops a stylized game-theoretic model of delegating customer acquisition and retention, focusing on how firms choose delegation and wage information disclosure strategy.

Findings

The results confirm the necessity for enterprises to disclose salary information. When sales agents are risk neutral, firms should choose multi-agent (MA) delegation and disclose their wages. However, when agents are risk averse, firms may disclose the wages of acquisition agents or both agents in MA delegation, depending on the uncertainty of the retention market.

Originality/value

This paper contributes to the literature on delegation of customer acquisition and retention and demonstrates that salary disclosure can be used as a supplement to the incentive mechanism.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 15 September 2022

Parul Trivedi and B.B. Tiwari

The primary aim of this paper is to present a novel design approach for a ring voltage-controlled oscillator (VCO) suitable for L-band applications, whose oscillation frequency is…

Abstract

Purpose

The primary aim of this paper is to present a novel design approach for a ring voltage-controlled oscillator (VCO) suitable for L-band applications, whose oscillation frequency is less sensitive to power supply variations. In a few decades, with the advancement of modern wireless communication equipment, there has been an increasing demand for low-power and robust communication systems for longer battery life. A sudden drop in power significantly affects the performance of the VCO. Supply insensitive circuit design is the backbone of uninterrupted VCO performance. Because of their important roles in a variety of applications, VCOs and phase locked loops (PLLs) have been the subject of significant research for decades. For a few decades, the VCO has been one of the major components used to provide a local frequency signal to the PLL.

Design/methodology/approach

First, this paper chose to present recent developments on implemented techniques of ring VCO design for various applications. A complementary metal oxide semiconductor (CMOS)-based supply compensation technique is presented, which aims to reduce the change in oscillation frequency with the supply. The proposed circuit is designed and simulated on Cadence Virtuoso in 0.18 µm CMOS process under 1.8 V power supply. Active differential configuration with a cross-coupled NMOS structure is designed, which eliminates losses and negates supply noise. The proposed VCO is designed for excellent performance in many areas, including the L-band microwave frequency range, supply sensitivity, occupied area, power consumption and phase noise.

Findings

This work provides the complete design aspect of a novel ring VCO design for the L-band frequency range, low phase noise, low occupied area and low power applications. The maximum value of the supply sensitivity for the proposed ring VCO is 1.31, which is achieved by changing the VDD by ±0.5%. A tuning frequency range of 1.47–1.81 GHz is achieved, which falls within the L-band frequency range. This frequency range is achieved by varying the control voltage from 0.0 to 0.8 V, which shows that the proposed ring VCO is also suitable for low voltage regions. The total power consumed by the proposed ring VCO is 14.70 mW, a remarkably low value using this large transistor count. The achievable value of phase noise is −88.76 dBc/Hz @ 1 MHz offset frequency, which is a relatively small value. The performance of the proposed ring VCO is also evaluated by the figure of merit, achieving −163.13 dBc/Hz, which assures the specificity of the proposed design. The process and temperature variation simulations also validate the proposed design. The proposed oscillator occupied an extremely small area of only 0.00019 mm2 compared to contemporary designs.

Originality/value

The proposed CMOS-based supply compensation method is a unique design with the size and other parameters of the components used. All the data and results obtained show its originality in comparison with other designs. The obtained results are preserved to the fullest extent.

Details

Circuit World, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0305-6120

Keywords

Article
Publication date: 7 November 2023

Qingyun Zhu, Yanji Duan and Joseph Sarkis

The purpose of this study is to determine if blockchain-supported carbon offset information provision and shipping options with different cost and environmental footprint…

Abstract

Purpose

The purpose of this study is to determine if blockchain-supported carbon offset information provision and shipping options with different cost and environmental footprint implications impact consumer perceptions toward retailers and logistics service providers. Blockchain and carbon neutrality, each can be expensive to adopt and complex to manage, thus getting the “truth” on decarbonization may require additional costs for consumers.

Design/methodology/approach

Experimental modeling is used to address these critical and emergent issues that influence practices across a set of supply chain actors. Three hypotheses relating to the relationship between blockchain-supported carbon offset information and consumer perceptions and intentions associated with the product and supply chain actors are investigated.

Findings

The results show that consumer confidence increases when supply chain carbon offset information has greater reliability, transparency and traceability as supported by blockchain technology. The authors also find that consumers who are provided visibility into various shipping options and the product's journey carbon emissions and offset – from a blockchain-supported system – they are more willing to pay a premium for both the product and shipping options. Blockchain-supported decarbonization information disclosure in the supply chain can lead to organizational legitimacy and financial gains in return.

Originality/value

Understanding consumer action and sustainable consumption is critical for organizations seeking carbon neutrality. Currently, the literature on this understanding from a consumer information provision is not well understood, especially with respect to blockchain-supported information transparency, visibility and reliability. Much of the blockchain literature focuses on the upstream. This study focuses more on consumer-level and downstream supply chain blockchain implications for organizations. The study provides a practical roadmap for considering levels of blockchain information activity and consumer interaction.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 29 November 2023

Sedki Zaiane and Halim Dabbou

The current study aims to investigate the mediating role of executive stock options in the nonlinear relationship between financial constraints and research and development (R&D…

Abstract

Purpose

The current study aims to investigate the mediating role of executive stock options in the nonlinear relationship between financial constraints and research and development (R&D) investment through two measures of financial constraints.

Design/methodology/approach

This study is based on a sample of 90 French firms for the period extending from 2008 to 2020. The authors employ a panel threshold method to analyze whether the impact of financial constraints on R&D investment depends on the level of financial constraints or not.

Findings

Using SA index (Hadlock and Pierce, 2010) and FCP index (Schauer et al., 2019) as measures of financial constraints, the authors demonstrate that the relationship between financial constraints and R&D investment is nonlinear. Moreover, the authors find that executive stock options mediate partially the relationship between financial constraints and R&D investment. More specifically, the authors show that stock options could play two roles depending on the level of the financial constraints; inconsistent mediation for firms with low/medium level of financial constraints and partial mediation for highly constrained firms.

Originality/value

This paper is the first to the best of the authors' knowledge to investigate the nonlinear relationship between financial constraints and R&D investment as well as the mediating role of executive stock option using dynamic panel threshold models.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 15 September 2023

Jan Voon and Yiu Chung Ma

This paper contributes to the literature as follows. First, it examines if option and stock compensations raise creditor's risk, and which one is more important than the other…

Abstract

Purpose

This paper contributes to the literature as follows. First, it examines if option and stock compensations raise creditor's risk, and which one is more important than the other. Second, it explores if CEO's compensation interacts with CEO overconfidence to raise creditor's risk. Third, it investigates how banks use different loan terms to alleviate their credit risk.

Design/methodology/approach

This study used advanced regression analysis and use of generalized methods of moment methodology.

Findings

The results show that option compensation is more important than stock compensation in raising credit risk; option compensation interacts with CEO overconfidence, giving rise to a much higher credit risk; and covenant usage is more important than other loan contract terms in mitigating credit risk given that covenant use could not be substituted away by using other loan contract terms such as increasing interest rate, reducing principal or shortening loan duration. This paper has practical implications for credit markets.

Research limitations/implications

The main implication is that hand-collect data are available up to 2010.

Practical implications

It informs creditors the potential sources of loan risk emanating from option rather than stock incentives; it informs creditors that option incentive interacts with CEO overconfidence rendering the credit risk bigger than expected, and it informs creditors the importance of using covenants vis-à-vis other loan contract terms for mitigating compensation and overconfidence risk.

Social implications

Banks are alerted to the risk due to the interaction between overconfidence and compensations, implying that overconfident managers remunerated with options compensations are more risky than overconfident managers who are not remunerated as such.

Originality/value

This paper is original: (1) The authors show that option compensation is more risky than stock compensation from viewpoint of creditors. This has not been assessed. (2) Interaction between managerial compensation and managerial overconfidence has not been assessed before. (3) Use of different loan contract terms to alleviate risk from overconfident managers (who are prone to over investment but who are innovative according to the literature) has not been evaluated.

Details

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

Keywords

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