The impact of two types of CEO overcompensation on corporate social responsibility

Journal of Management and Governance - This article explores the impact of two types of CEO overcompensation—internal and external overcompensation—on the socially responsible...     

The influence of CEO equity incentives on licensing

In a study of life science firms, we find that, in accordance with predictions drawn from agency theory and behavioral agency theory, CEO stock ownership is negatively associated with licensing while CEO stock options are positively associated with licensing. Furthermore, by combining theoretical insights from the capabilities literature with both agency theory and behavioral agency theory, we predict that a key measure of capabilities in the licensing context—a firm's alliance experience—significantly influences the ways in which CEO equity incentives impact licensing. More specifically, we find that, in accordance with our theoretical predictions, alliance experience positively (negatively) moderates the relationship between CEO stock ownership (CEO stock options) and licensing. Our study contributes to the wider literature on the determinants of licensing by examining whether licensing is sensitive to CEO equity incentives. We also extend the capabilities literature on licensing by examining the contrasting influences of a firm's alliance experience on the relationship between CEO equity incentives and licensing. Our findings also inform behavioral agency-based research on the effects of equity incentives by highlighting the usefulness of a capabilities perspective in augmenting our understanding of the behavioral role of CEO equity incentives.     

Fresh in the saddle: The influence of a new CEO's vision and origin,and CEO succession type on market actors' reactions

CEO succession is a critical event in the life of a company. How external stakeholders respond to it, can affect the company's valuation. This study investigates how securities analysts' and investors' reactions to CEO succession are affected by the interplay between the charisma of the new CEO's vision, the new CEO's origin (whether an insider or outsider), and the type of CEO succession (whether routine, dismissal or interim). Drawing on the literature on signaling, we suggest that because a charismatic vision emits a positive signal about the company's future performance, it will affect market actors' reactions by either weakening or strengthening the influence of the signals emitted by other succession context contingencies, namely, CEO origin and succession type. To test our predictions regarding analysts' and investors' reactions, we respectively analyze panel data and conduct an event study. The results support most of our predictions. We discuss the study's contributions and implications.     

The double-edged sword of CEO/chairperson duality in corporatized state-owned firms: evidence from top management turnover in China

This study examines how board leadership structure (CEO duality) affects the corporate governance of corporatized state-owned firms where the state shareholders use these firms to serve both profit and non-profit objectives. We propose that CEO duality will generate a positive (negative) significant impact on the firms’ corporate governance when state owners tend to monitor their CEOs on the basis of profit (non-profit) considerations. We test our hypotheses by examining the relations between CEO duality and CEO turnover in Chinese listed companies that are ultimately controlled by central or local governments. We find that CEO duality is negatively related to turnover in marginal profit-making firms where turnover would be value-enhancing. This suggests that CEO duality is detrimental to these firms’ corporate governance because it entrenches relatively poorly performing CEOs. Duality is also negatively related to turnover in high-profitability firms where turnover would be non-value-enhancing. This suggests that CEO duality might positively contribute to the corporate governance of these firms by reducing the occurrence of non-value enhancing turnover. Overall, our study suggests that CEO duality is a double-edged sword in corporatized state-owned firms.     

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.     

The role of CEO emotional stability and team heterogeneity in shaping the top management team affective tone and firm performance relationship

In this paper, we aim to bridge the micro-macro divide by addressing continued calls from strategic leadership and affect researchers to examine the black box to consider how CEO characteristics relate to top management team (TMT) affective experiences, and, in turn firm outcomes. We further consider the role of one key contextual factor in this relationship: TMT heterogeneity. We predict that CEO personality, specifically, emotional stability, is positively associated with TMT affective tone. Moreover, we posit that the relationship between TMT affective tone and firm performance depends on TMT task-related heterogeneity, such that positive affective tone benefits firm performance in heterogeneous TMTs, whereas negative affective tone benefits firm performance in homogeneous TMTs. Using a novel methodology that measures key psychological aspects of the CEO and TMT, we examined 50 TMTs from publicly-traded companies to test our predictions. Our findings offer theoretical contributions to the strategic leadership, affect and diversity literatures as well as managerial applications for CEO selection and management and managing diversity in upper echelons.     

The influence of top management support for ICTs on organisational performance through knowledge acquisition,transfer, and utilisation

This research analyses, first, whether top management support for information and communications technologies has positive consequences for knowledge management by analysing the specific influence of top management support for ICTs on each of the knowledge management processes (knowledge acquisition, transfer, and utilisation). Second, it analyses the influence of each knowledge management process on organisational performance. The theoretical model is tested using data collected from March to May 2010 from 201 CEOs in Spanish technology organisations. The results indicate that the stage-based disaggregation of the knowledge management process into knowledge acquisition, transfer, and utilisation, and the three-stage management process are the mediating mechanisms in the relationship between top management support for ICTs and organisational performance. CEOs should thus support the information and communication technologies necessary to improve all of the interrelated stages of knowledge management as a mechanism for achieving better organisational performance. Various strategic actions should be stimulated within the organisation to intensify the interrelation between these stages of acquisition, transfer, and utilisation of knowledge.     

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.     

The corporate energy policy: A management planning perspective

The energy problems facing the world have been receiving increasing attention in the press and in business journals. This article examines the attitudes of 224 U.S. business executives toward the energy crisis and examines the role of a corporate energy policy in minimizing the economic impact of future energy price increases and/or shortages. A plan for a corporate energy policy is proposed.     

CEO human capital,top management teams,and the acquisition of venture capital in new technology ventures: An empirical analysis

We combine signalling and human capital theory to analyze how competencies of new venture CEOs impact the amount of money technology ventures acquire in venture capital (VC) financing rounds. Using data on 117 financing events in the biotechnology industry, we show that education in management, founder-based firm-specific experience, international experience, and industry-specific experience of the CEO impact the VCs’ financial commitments. Moreover, we find that the effects of management education and industry experience are moderated by the size of the venture's top management team. We discuss the implications of these findings for the research literature on technology ventures and venture capital.     

The New CEO and the Post‐succession Process: An Integration of Past Research and Future Directions

The early tenure of a new Chief Executive Officer (CEO), also referred to as ‘the CEO post‐succession process’, is a critical phase in the history of an organization, because it is associated with a high rate of organizational failure and CEO dismissal. Research on this important process has grown rapidly over the last decade, focusing particularly on the question of how the match between the CEO, the organization and the environment is created in the post‐succession process. Yet, the respective literature is highly fragmented, which suggests that there is a need for a systematic review and evaluation of existing works. Adopting the conceptual vocabulary of the practice perspective, the authors review this literature in terms of what it reveals about (1) the practices adopted by new CEOs and other actors involved in the post‐succession process, (2) the properties of the key practitioners involved, and (3) the practical context of the post‐succession process. This review suggests that new CEOs are primarily involved in practices aimed at integrating the new CEO into the organization, and practices aimed at realigning the organization with its environment. The important insights that the existing literature affords are identified, and the gaps in this body of research are highlighted. On this basis, a concrete research agenda is developed in terms of topics, methodologies and theories.     

The need for a corporate strategy on risk management and risk transfer

Accidents happen to companies every day, but only some are catastrophic. Minimising them is more than just insurance; the correct strategy is risk management and involves the development of a Disaster Plan and a Crisis Management Plan. Sue Braithwaite explores the setting-up and organisation of such plans which involve, among other things, the interrelationship and co-ordination of risks, responsibilities, back-up contact, support and communications, testing and insurance. She insists that a company's long-term viability must include a developed strategy on the management of risk, loss prevention and control and damage containment.     

The forms and use of intuition in top management teams

Nascent research suggests that benefits of intuition use accrue not only to individuals but also to teams. These benefits may be especially important for top management teams (TMTs), who formulate strategic decisions for their firms. However, work on intuition use in strategic decision making (SDM) remains focused on the intuitions of chief executive officers (CEOs). Furthermore, the emerging literature on team intuition is very fragmented, leaving an unclear picture of how teams may develop and use intuition in their decision-making activities. To address these problems, we integrate team intuition and TMT research to propose four forms of TMT intuition, which differ based on the locus and integration of intuition. We describe the forms of TMT intuition, clarify the mechanisms that shape them, and discuss their relevance for TMTs' decision-making activities. Overall, we advocate for strategy research that focuses on the notion of “team” in team intuition.     

The management of international manufacturing networks: a missing link towards total management of global networks

Abstract

The purposes of this article are to provide a brief overview of the research on international manufacturing networks (IMNs), identify corresponding gaps and provide background for the papers published in this special issue. First, this article shows the importance of addressing the management of IMNs, especially in times of global turbulence as a result of new economic, political and technological trends. Second, it highlights research into the management of IMNs as a missing link in the Operations Management (OM) discipline, as most of the current OM research neglects the fact that the internal structures and relationships of multi-plant organizations inside firms play a critical role in how a supply chain/network operates and relies mostly on scholars in other fields for insights into high-level and strategic issues in the management of global operations. Finally, this article argues there is still a lot to do in order to develop new theories towards the total management of global networks that can holistically analyze different global (intra- and inter-firm multi-functional) networks and address the complex interdependencies between them.     

A neuroscience-based model of why and when CEO social values affect investments in corporate social responsibility

Why and when do CEOs invest in corporate social responsibility (CSR)? We theorize how CEOs' intrinsic motivations – their social values – and the incentivizing context interact to determine the utility they attach to generating collectively beneficial outcomes in decision-making, subsequently manifested in organizations' CSR investments. Based on a review of neuroscience evidence, indicating that social values are associated with distinct patterns of neural activation, we propose that these values are the compass by which CEOs navigate in complex decision environments. For CEOs with other-regarding values, generating collectively beneficial outcomes is part and parcel of their utility function. They are intrinsically motivated to invest in CSR, regardless of context. In contrast, CEOs with self-regarding values derive utility from generating collective benefits only when it is monetarily or socially incentivized. They are extrinsically motivated to invest in CSR when they stand to gain from it personally.     

The interactive relationship of corporate culture and knowledge management: a review

Knowledge management and corporate culture are two managerial concepts that are often connected in articles, especially in knowledge management literature. It is, however, a rather complex relationship, as evidenced by the existence of various theoretical and empirical contributions as well as various implicit assumptions. This review therefore, aims at systemizing and clarifying different approaches towards the relationship between intraorganizational knowledge management and corporate culture. I identified three different perspectives on this topic. The first perspective regards cultural values as knowledge resources. The second approach deals with the characteristics of “knowledge cultures” that are regarded as a favorable antecedents for knowledge management. The third view assumes a different causal relationship because knowledge management initiatives can also modify cultural assumptions if employees are subject to positive experiences. This paper describes all three, discusses their underlying assumptions, and shows their implications for theory and practice. By comparing the three perspectives, this systematic review reveals that they are based on different theories and therefore, their results cannot be easily combined. Our conclusions show that being aware of these differences and providing a common theoretical basis opens up avenues for future research in this field.     

论公司财务管理在公司治理结构中发挥的作用

公司制企业财务管理存在着三个层次,即出资者财务、经营者财务和专业财务;它们在公司治理结构中发挥着不同的作用.出资者财务以资本的终极所有权为依据,以资本的安全和增值为目的,对其出资及运用状况进行管理,是一种间接约束机制;经营者财务以法人所有权为依据,在出资者的监控下,以直接控制的方式对企业的资金运行进行管理,发挥在治理结构中的纽带作用,处于财务管理的核心地位;专业财务以现金流转为管理对象,保证经营者财务决策的顺利执行和预期效益的实现.三者的辩证统一是实现公司有效治理的关键.     

Cultural convergence through web-based management techniques? The case of corporate web site recruiting

This paper empirically analyzes the influence of national culture on the comprehensiveness to which companies in different countries make use of corporate web site recruiting. Based on Hofstede's 4-Dimensions model of culture, four hypotheses are developed and tested against data from 420 companies in 14 countries. The results indicate that cultural effects are relevant even though a management technique is provided on the World Wide Web. Particularly, individualism has a strong influence on the use of corporate web site recruiting in different countries. Thus, the results lend support for the divergence approach in international management research.