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Article
Publication date: 18 September 2024

Rukaiyat Adebusola Yusuf and Mamiza Haq

This paper examines the effect of restrictions on executive pay and high CEOs’ compensation on bank performance following the “2008 UK bank rescue policy”.

Abstract

Purpose

This paper examines the effect of restrictions on executive pay and high CEOs’ compensation on bank performance following the “2008 UK bank rescue policy”.

Design/methodology/approach

Using the difference-in-difference estimation technique we assess the relationship between executive compensation and financial performance of rescued banks relative to non-rescued banks over the period 1999–2019.

Findings

Our main finding indicates that the relationship between executive compensation and financial performance declines in rescued banks relative to non-rescued banks. Further, we document that performance continues to deteriorate in rescued banks relative to non-rescued banks. Our results are robust to different estimation techniques.

Originality/value

This study contributes to the literature that examines the efficacy of government bailouts during the 2008 crisis. To the best of the author’s knowledge, this study is among the first to examine the long-term implications of bank rescue and pay restrictions on executive compensation and performance post–rescue.

Details

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

Keywords

Article
Publication date: 14 September 2023

Rachana Kalelkar and Emeka Nwaeze

The authors analyze the association between the functional background of the compensation committee chair and CEO compensation. The analysis is motivated by the continuing debate…

Abstract

Purpose

The authors analyze the association between the functional background of the compensation committee chair and CEO compensation. The analysis is motivated by the continuing debate about the reasonableness of executive pay patterns and the growing emphasis on the role of compensation committees.

Design/methodology/approach

The authors define three expert categories—accounting, finance, and generalist—and collect data on the compensation committee (CC) chairs of the S&P 500 firms from 2008 to 2018. The authors run an ordinary least square model and regress CEO total and cash compensation on the three expert categories.

Findings

The authors find that firms in which the CC chair has expertise in accounting, finance, and general business favor performance measures that are more aligned with accounting, finance, and general business, respectively. There is little evidence that CC chairs who are CEOs of other firms endorse more generous pay for the host CEO; the authors find some evidence that CC chairs tenure relative to the host CEO's is negatively associated with the level of the CEO's pay.

Research limitations/implications

This study suggests that firms and regulators should consider the background of the compensation committee chair to understand the variations in top executive.

Practical implications

Companies desiring to link executive compensation to particular areas of strategy must also consider matching the functional background of the compensation committee chair with the target strategy areas. From regulatory standpoint, requiring compensation committees to operate independent of inside directors can reduce attempts by inside directors to skim the process, but a failure to also consider the impact of compensation committees' discretion over the pay-setting process can distort the executives' pay-performance relation.

Originality/value

This is the first study to examine the effects of the functional background of the compensation committee chair on CEO compensation.

Details

Asian Review of Accounting, vol. 32 no. 2
Type: Research Article
ISSN: 1321-7348

Keywords

Open Access
Article
Publication date: 8 April 2024

Toan Thi Phuoc Dang and Vinh Thi Thanh Do

This study offers an empirical framework for how hotel employees CSR perceptions affect their job satisfaction by incorporating the parallel mediating roles of organizational…

Abstract

Purpose

This study offers an empirical framework for how hotel employees CSR perceptions affect their job satisfaction by incorporating the parallel mediating roles of organizational identification and psychological contract fulfillment. In addition, it examines the moderator effects of employees' CSR-induced attributions on the constructed mediated model, providing a powerful lens through which to evaluate when and how employees' CSR perceptions influence organizational identification and psychological contract fulfillment.

Design/methodology/approach

The study use PLS-SEM techniques to analyze a sample of 520 employees from 49 luxury hotels with 4–5 stars in Khanh Hoa province, Vietnam.

Findings

The results show that CSR positively influences job satisfaction through the mediating role of psychological contract fulfillment and organizational identification. Besides, attachment styles also play moderator role in the relationship between CSR and psychological contract fulfillment/organizational identification.

Practical implications

The discoveries elucidated within this research endeavor proffer actionable discernments to be earnestly contemplated by professionals entrenched in the hotel industry, earnestly aspiring to ameliorate the contentment of their workforce and, concomitantly, augment the overarching efficacy of their organizational operations.

Originality/value

This study provides human resource departments with insights and suggestions for maximizing the efficacy of CSR implementation in the hotel industry.

Details

International Hospitality Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2516-8142

Keywords

Book part
Publication date: 13 May 2024

Anu Singh Lather and Simran Kaur

Introduction: The concept of diversity encompasses not only an individual’s self-perceptions but also perceptions of others. It exerts an influence on individuals’ social…

Abstract

Introduction: The concept of diversity encompasses not only an individual’s self-perceptions but also perceptions of others. It exerts an influence on individuals’ social interactions. The promotion of workforce diversity within an organisation holds considerable importance for several reasons. These include the impact of globalisation, the amalgamation of ideas stemming from diverse ethnic groups, the inclusive progress facilitated by individuals from varying economic and religious backgrounds, and the unique perspectives brought to work by those hailing from different regions of the country.

Purpose: Literature exhibits that the perception of organisational justice is a crucial factor in elucidating the dynamic between subordinates and their supervisors, and its consequential effect on the long-term viability of the enterprise.

Methodology: The research reports responses from 107 Delhi NCR employees. Before the main investigation, a pilot study with 20 employees was conducted for assessing the scale’s reliability and validity.

Findings: The current study has provided evidence indicating that different dimensions of organisational justice have a significant impact on individual work behaviour, specifically task performance behaviour (TP), employee silence (ES), and organisational counterproductive behaviour (CBP). Moreover, this impact is influenced by several factors, including emotional intelligence (EI), social desirability, and the age of employees.

Article
Publication date: 30 June 2023

Junhee Kim, Kibum Kwon and Jeehyun Choi

This study aims to examine the effect of firm-specific skills on formal and informal training and development (T&D) effectiveness, job satisfaction, turnover intentions, and the…

Abstract

Purpose

This study aims to examine the effect of firm-specific skills on formal and informal training and development (T&D) effectiveness, job satisfaction, turnover intentions, and the moderating effect of job tenure on each hypothesized path. The authors adopt a micro perspective on human capital, arguing its significance to examine the role of job attitudes in developing firm-specific skills.

Design/methodology/approach

A total of 1,514 South Korean workers' responses were obtained from the Human Capital Corporate Panel dataset. This study conducted structural equation modeling (SEM) to examine the structural relationships between the study variables. A subsequent multigroup SEM was conducted to determine whether the structural model differed across job tenures by comparing the results for employees with more than and less than six years of tenure.

Findings

The findings indicate that (a) firm-specific skills have a negative effect on formal T&D effectiveness and no significant effect on informal T&D effectiveness; (b) firm-specific skills have a negative effect on job satisfaction and no significant effect on turnover intentions; (c) formal T&D effectiveness has a positive effect on job satisfaction and a negative effect on turnover intentions; (d) informal T&D effectiveness has a positive effect on job satisfaction and no significant effect on turnover intentions; and (e) job tenure partially moderates the relationships among the proposed study variables.

Originality/value

The study's findings provide new insights into human capital theory, focusing on whether firm-specific skills can be a source of sustained competitive advantage from employees' perspectives.

Details

Personnel Review, vol. 53 no. 3
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 21 April 2022

Hani El-Chaarani and Zouhour El-Abiad

The purpose of this research is to reveal the impact of public legal protection on the efficiency of internal corporate governance in banks. In addition, this research proposes a…

Abstract

Purpose

The purpose of this research is to reveal the impact of public legal protection on the efficiency of internal corporate governance in banks. In addition, this research proposes a new corporate governance index that could be employed by the banking sector to evaluate the performance of their internal corporate governance mechanisms.

Design/methodology/approach

Orbis database, annual reports and direct questionnaire are used to collect corporate governance data of 127 banks from 14 countries during 2020. The Mann–Whitney U-test is employed to compare the efficiency of corporate governance mechanisms based on three subsamples of countries having different legal protection levels (weak, middle and strong).

Findings

This research suggests a new corporate governance index for banks based on seven constructs and 62 variables. This new non-parametric index could be used by bankers to improve the monitoring process and enhance the overall performance of banking. The results of this research show that the existence of a strong public legal protection environment within a specific country enhances the efficiency of corporate governance mechanisms in the banking sector and thus, leads to improve the protection of shareholders, depositors and other relevant stakeholders. However, in countries that are characterized by weak legal protection level, the efficiency of corporate governance mechanisms is very low and there are possibilities of entrenchment, expropriation and extraction of private benefits. These findings could be interpreted within the prediction of agency, moral hazard, asymmetric information, political and entrenchment theories.

Originality/value

This research paper provides information that bankers and other relevant stakeholders in the banking sector working in MENA (the Middle East and North Africa) and European countries. A strong public legal protection level could improve the efficiency of internal corporate governance mechanisms within banks.

Details

Journal of Economic and Administrative Sciences, vol. 40 no. 3
Type: Research Article
ISSN: 2054-6238

Keywords

Article
Publication date: 30 August 2024

Lei Ren, Guolin Cheng, Wei Chen, Pei Li and Zhenhe Wang

This paper aims to explore recent advances in drift compensation algorithms for Electronic Nose (E-nose) technology and addresses sensor drift challenges through offline, online…

Abstract

Purpose

This paper aims to explore recent advances in drift compensation algorithms for Electronic Nose (E-nose) technology and addresses sensor drift challenges through offline, online and neural network-based strategies. It offers a comprehensive review and covers causes of drift, compensation methods and future directions. This synthesis provides insights for enhancing the reliability and effectiveness of E-nose systems in drift issues.

Design/methodology/approach

The article adopts a comprehensive approach and systematically explores the causes of sensor drift in E-nose systems and proposes various compensation strategies. It covers both offline and online compensation methods, as well as neural network-based approaches, and provides a holistic view of the available techniques.

Findings

The article provides a comprehensive overview of drift compensation algorithms for E-nose technology and consolidates recent research insights. It addresses challenges like sensor calibration and algorithm complexity, while discussing future directions. Readers gain an understanding of the current state-of-the-art and emerging trends in electronic olfaction.

Originality/value

This article presents a comprehensive review of the latest advancements in drift compensation algorithms for electronic nose technology and covers the causes of drift, offline drift compensation algorithms, online drift compensation algorithms and neural network drift compensation algorithms. The article also summarizes and discusses the current challenges and future directions of drift compensation algorithms in electronic nose systems.

Details

Sensor Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0260-2288

Keywords

Article
Publication date: 21 December 2023

Wejdan Eissa Alhajaj and Syed Zamberi Ahmad

This study examines the impact of perceived human resource management practices on talent turnover intention, with work engagement mediating and self-efficacy moderating the…

Abstract

Purpose

This study examines the impact of perceived human resource management practices on talent turnover intention, with work engagement mediating and self-efficacy moderating the relationship. It examines how employees' perceptions of pay satisfaction, empowerment, participation and communication are related to their turnover intentions.

Design/methodology/approach

A total of 283 valid questionnaires from UAE government employees were used for data analysis. Partial least squares structural equation modeling (PLS-SEM) was used to examine the proposed hypothesis.

Findings

The results reveal that employees' perceptions of pay satisfaction, empowerment, participation and communication are significant contributors to work engagement. The findings further demonstrate that work engagement significantly negatively affects talent turnover intention and acts as a mediator between employees' perceptions of individual human resource management practices and talent turnover intention. However, the results contradict the hypothesis that self-efficacy moderates the association between work engagement and talent turnover intention.

Originality/value

This study focuses on the impact of perceived human resource management practices on talent turnover intention, an area that has received limited attention in literature. By focusing on perceived human resource management practices, this study illuminates employees' subjective experiences and how they perceive human resource management practices intended to reduce talent turnover intention. The inclusion of the mediating effect of work engagement offers a more profound understanding of how employees' perceptions of human resource management practices influence their turnover intentions. This comprehensive approach to understanding the interplay between these variables provides valuable insights for organizations seeking to improve their human resource management practices and talent turnover intention.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 8
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 11 July 2024

Jooh Lee and Niranjan Pati

This study aims to contribute to the ongoing assessment of executive compensation by investigating the nexus between managerial entrenchment factors, adopting a multifaceted…

Abstract

Purpose

This study aims to contribute to the ongoing assessment of executive compensation by investigating the nexus between managerial entrenchment factors, adopting a multifaceted perspective encompassing both economic and non-economic dimensions.

Design/methodology/approach

This research employs pooled cross-sectional Ordinary Least Squares (OLS) regression and Least Squares with Dummy Variables (LSDV) models with fixed effects to examine the determinants of Chief Executive Officer (CEO) compensation.

Findings

This research identifies firm size, performance (via ROA and Tobin’s Q), and CEO characteristics (age, tenure, stock ownership, MBA degree) as significant determinants of executive compensation at the 0.05 level. In contrast, the prestige of educational institutions, doctoral degrees, and the MBA’s relevance to short-term performance, along with CEO tenure, do not significantly affect pay. Additionally, the study highlights the significance of industry type (manufacturing vs technology) in shaping compensation, emphasizing the role of firm metrics and CEO credentials in designing executive pay packages.

Originality/value

This research introduces an innovative approach to controlling unobserved heterogeneity and adjusting for the dynamic nature of CEO compensation attributes across diverse CEO characteristics. By integrating both pooled Ordinary Least Squares (OLS) and Least Squares Dummy Variable (LSDV) models, the study addresses the challenges posed by time-invariant variables and unobservable heterogeneity. Such issues have historically skewed the accuracy of traditional OLS models in identifying the comprehensive array of factors—both economic and non-economic—that influence CEO compensation. This novel methodological framework significantly advances the examination of unobservable variables that may vary not only across the firms selected for analysis but also over time periods, thereby offering a more detailed understanding of the determinants of CEO pay.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

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