Corporate financial performance and occupational stress

Abstract

Although a great deal of research has been carried out in the occupational stress field, little work has focused on the link between corporate financial performance and corporate culture on individual stress. The sample comprised senior marketing managers working in 14 electronics companies selected on the basis of their recent profit/loss performance. It was found that corporate financial performance and culture variables were more strongly associated with many of the felt stresses than were the individual and role-related predictors.     

Corporate financial performance and occupational stress

Although a great deal of research has been carried out in the occupational stress field, little work has focused on the link between corporate financial performance and corporate culture on individual stress. The sample comprised senior marketing managers working in 14 electronics companies selected on the basis of their recent profit/loss performance. It was found that corporate financial performance and culture variables were more strongly associated with many of the felt stresses than were the individual and role-related predictors.     

Classifying capital projects for top management decision-making

This paper is an attempt to redress a perceived imbalance in the research and literature of capital project analysis. There is a plethora of work on the quantitative aspects of project analysis, yet empirical surveys show limited use of such techniques. There is limited work on the organizational processes of project selection, but there appears to be little or no work taking place on formal organizational systems for project selection.The more quantitative literature generally takes a deductive approach using a model developed from microeconomics based on the assumption that the objective of the firm is the maximization of owners' wealth. In this paper it is argued that there is a need to take an inductive approach and place the capital investment decision in its organizational setting. This paper looks at the formal capital budgeting system within the corporate setting.It is suggested that the specific capital investment decision takes place against the background of a set of policies and constraints, which are more or less explicit.The selection of corporate projects is a complex issue, but to provide some structure so that the problems can be processed by the organization, a capital budgeting system is designed. Part of this system is the classification of projects according to some criteria. It would therefore appear that the purpose of this classification system is to aid capital project selection within an organizational context.A consideration of classification systems for capital projects is undertaken, this is followed by a survey of the classification systems which have been proposed in the capital investment literature. Finally a classification system based upon specific criteria is proposed.     

Linear programming and financial cost models for industrial enterprises

Linear programming models of complex interrelated manufacturing enterprises have improved production planning decisions. With a linear programming formulation, the planning engineer concerned with specifying levels of production activity need not be concerned with cost accounting formulations of product costs to make his production decisions. He is only concerned with examining alternative production activities in terms of the added production costs the activity incurs, and the amount of product that is fed or consumed. The financial analyst, however, is concerned with development of budgetted average product costs. He must roll the costs of feed and intermediate products down to the final stage products. This paper bridges these two interests by demonstrating a methodology for the direct translation of the solution of the linear programming model to the development of rolled product standard costs.     

The determinants of top management pay

Agency theory argues that companies need to structure their top management pay so as to attract, retain, motivate, and reward senior executives. It is implicit in this literature that managers should be rewarded for performance and that company size should not be a significant determinant of compensation. Empirical evidence in many countries has concluded, however, that size is a major determinant of management remuneration and the pay-for-performance link is very weak. This study examines the determinants of senior executives’ remuneration and bonus payments in Hong Kong companies using recently available data. We examine both the level of pay and changes in pay. Corporate size is found to be a major explanator of remuneration levels and of changes in the pay of the CEO and executive directors. Accounting profitability is also a significant explanator of compensation. Performance, as measured by stock returns, has little or no statistically significant relationship with pay; in fact, some of the results show negative relationships. Some share ownership characteristics have influences on the levels of remuneration. In particular, share ownership by directors and share ownership by institutional investors moderate the compensation levels. In contrast, corporate governance variables have little association with change in pay. Overall, the results imply agency arguments that advocate pay-for-performance compensation schemes are not major factors in setting top management remuneration in Hong Kong.     

Business models as a basis for regulation of financial reporting

The paper observes that the term ‘business model’ has been incorporated in recent financial reporting regulations. The first section of the paper describes various meanings of ‘business model’ and demonstrates that the term has no settled or agreed meaning. The second part of the paper considers the suitability of the term ‘business model’ as a basis for a measurement standard (IFRS 9) or for requirements for narrative reporting and concludes it is not suitable for either purpose. Examples from the UK FTSE 100 index companies are used to illustrate existing usage in narrative reporting, finding varying levels of informativeness of disclosures about business models. The final part of the paper discusses reasons for incorporating an ambiguous and contested term in reporting guidance. It identifies parallels with ambiguity in other branches of financial reporting and the potential utility of ambiguity in allowing consensus to be arrived at on a form of words, apparently tightening up reporting regulation, while allowing participants ‘wiggle room’.     

Corporate compliance programs: risk management for the future

The Department of Justice has estimated that the government loses $100 billion annually in health care fraud. Consequently, the government's health care fraud enforcement activities with respect to all health care providers and suppliers continue to grow. Last year alone, the government collected more than $8 billion in settlements, fines, and penalties involving health care fraud. Recent settlements with the government have begun to include corporate compliance programs that require continued government oversight of the health care organization as an essential part of the settlement. The first section of this article describes the legal significance of health care companies' having corporate compliance programs. The second section provides a sample list of topics that should be included in any corporate compliance program. Finally, we describe various issues related to the creation and implementation of corporate compliance programs.     

企业高层管理团队研究的进展

自从1984 年Hambrick 与Mason 提出“高层梯队理论”后,学术界涌现出大量高层管理团 队与组织绩效、战略、组织变革等方面的研究. 在此之前,有关高层领导的研究几乎完全针对领 导人个体,我国目前也沿袭这种研究模式. 激烈的市场竞争要求高层领导更多地以团队方式进 行运作,加强中国高层管理团队的研究势在必行. 文章对近20 年来国际有关企业高层管理团 队的科学管理做一综述,探讨高层管理团队的特征、运作过程以及不同文化背景对高层管理团 队绩效、组织绩效的影响,分析企业高层管理团队建设的研究框架,提出已有研究的局限及对 未来研究的展望.     

Quality management remains top medical manager responsibility

Earlier this year, the Physician Executive Management Center conducted a survey of physician executives in management positions in hospitals, group practices, managed care organizations, and industry. Information was obtained for physician executives in both full-time and part-time roles. In addition to gathering compensation information, the survey sought to define the scope and intensity of the responsibilities of physician CEOs and senior medical managers (medical directors or the equivalent) in these organizations. In this article, the authors summarize the findings on responsibilities for senior medical managers in hospitals, group practices, and managed care organizations.     

Corporate planning and management by objectives

Management by Objectives seeks to integrate the company's objectives for profit and growth with the personal goals and satisfaction of managers. The system requires a review of company objectives and an attempt to translate these into key objectives and performance standards to which individual managers are committed. MBO dependes for its success on the existence of a company environment in which the individual can grow and provides a basis for harnessing the human resources of the organization in the achievement of company objectives.     

Corporate planning and management by objectives

Management by Objectives as described in literature has major shortcomings in not stressing that MbyO should start at the ‘top’, with a clear statement of the overall objectives of the business. MbyO assignments which are operated with middle management often have disappointing results, as the gap between their objectives and those at the higher levels becomes apparent. The practical difficulties of establishing overall objectives of the business is one reason, while another is that management consultants have sometimes operated corporate planning and MbyO as two separate assignments, or ‘techniques’, whereas they are two sides of the one coin. These articles detail how to establish overall objectives, which are then a firm basis for objectives throughout the business.     

Corporate social responsibility recognition and support for the arts: Evidence from European financial institutions

This research investigates whether financial institutions that have gained a good reputation in relation to their CSR activities also engage in significant corporate support for the arts (CSA). Using a sample composed of the 42 largest listed European financial institutions, data from 2004 to 2013 (i.e., 420 firm-year observations) and manually collected CSA disclosure information, our findings indicate that entities rewarded for their CSR initiatives are also those that engage in significant CSA. We also find that CSA disclosure reported in the social reports of financial institutions is a predictor for the attainment of a CSR award, whereas that reported in annual reports is not. Our findings suggest that annual and social reports have a different informative relevance, at least in relation to CSR initiatives in the form of CSA, for the stakeholders of financial institutions. Thus, our results provide useful insights for companies’ communication strategies showing, for example, that social reports are the best channel to communicate about CSA.     

Corporate risk management and pension investment policy

In this paper, we study whether firms manage their pension risk exposures within an integrated corporate risk management framework or they manage their pension and firm risk exposures independently following the adoption of fair value pension reporting regulation (IAS 19). Controlling for known factors affecting the risk-taking in pension plan investments, we document a robust negative association both at the cross-section and over time between pension risk and firm systematic risk and operating asset risk during the post-IAS 19 adoption period. The findings suggest that firms manage pension risk as an integral part of firm risk, consistent with a coordinated risk management explanation. Overall, our evidence highlights that pension investment strategy is a dynamic process that is ultimately determined by sponsoring firms' strategic corporate risk management considerations and the important role that changing pension reporting regulation plays in shaping these dynamics. Our conclusions have potential wider implications for ongoing reforms in financial reporting and disclosure policy settings.     

Corporate management and planning in local government

Following the U.K. Local Government Act (1972) the shire countries in England and Wales incurred increased responsibilities in regard to transport planning. From 1974, they were required to produce annual transport plans (TPPs) conveying all aspects of transport within each county, the level of the resulting planning effort being far higher than previously undertaken. As a consequence of examining the application of the TPP arrangements, a number of general issues about corporate management and planning emerged. This article considers these issues and examines the extent to which they have been and will be overcome.     

Corporate social responsibility,financial performance and risk in times of economic instability

Journal of Management and Governance - This article examines the relationship between the social performance of companies and their financial performance, analyzed from the systematic risk...     

Appraising financial performance for financial institutions

The author is an investment analyst whose area of specialization is financial shares, especially in banking. The prime responsibility of the investment analyst is to the investment institutions. However, the information available to the analyst is no more than that available to shareholders in the institution being monitored. The expertise of the analyst is in seeking out the information and interpreting it for the client. There has been a considerable improvement in investor relations in the U.K. in the past few years. The author suggests that more information could be provided by the U.K. Clearing Banks—information which is readily available within the banks—which would enable the investment analyst to make important comparisons from data which is not at present available to him.     

Physician managers can play key financial management role

Societal and technological changes experienced in the past few years have been instrumental in the creation of a new medical specialty--medical management. In this age of scarce resources for health care, physicians must be involved in management and leadership roles in the financial, managerial, and strategic planning aspects of their institutions.     

The influence of top management corporate networks on CEO succession

We analyze empirically how supervisory board members with multiple directorships affect the decision to hire an inside or outside CEO successor. While a growing number of both theoretical and empirical studies analyze the influence of corporate performance and size or the ownership structure on this decision, the role of multiple board memberships within the CEO recruitment process has been widely neglected so far. The present study is based on panel data of the largest German companies covering the period from 1996 to 2008. Applying competing risk estimations we find a weak and positive association between the number of external directorships of the supervisory board members and internal CEO replacements. Distinguishing between different groups of external board positions, we find that external executives on the supervisory board increase the likelihood of external CEO replacements. In line with empirical findings for the US we argue that external executives improve the assessment of potential CEO successors leading to more outside CEO replacements. In contrast, we find evidence that external supervisory board mandates of the supervisory board members cause more internal CEO replacements. This finding indicates a substitution of external expertise of the executives by multiple supervisory board mandates but could also reflect a reduction of the monitoring intensity of the supervisory board.