CEO beauty and management guidance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jun Guo ◽  
Jung Yeun Kim ◽  
Sungsoo Kim ◽  
Nan Zhou
Keyword(s):  
Design Methodology ◽  
Forecast Error ◽  
Facial Appearance ◽  
Management Forecasts ◽  
Regression Analyses ◽  
Earnings Guidance ◽  
Content Type ◽  
Perceived Credibility ◽  
Self Selection ◽  
Management Guidance

PurposeThe authors study whether CEO beauty influences management guidance.Design/methodology/approachThe authors calculate an attractiveness score based on facial symmetry and perform regression analyses to examine the relation between CEO beauty and management guidance.FindingsThe authors find that attractive CEOs are more likely to issue voluntary management earnings guidance. After controlling for this appearance-based self-selection, the authors document that management forecasts provided by attractive CEOs are more optimistic yet less precise. Consistent with this result, the authors find that analysts' consensus forecast error following management forecasts made by attractive CEOs is larger than such error following management forecasts made by unattractive CEOs. The authors further find that the perceived credibility of management forecasts by attractive CEOs is not different from that by unattractive CEOs.Originality/valueThese findings suggest that attractive CEOs are more active but less skillful in issuing management forecasts. This adds to the emerging accounting literature on the relation between facial appearance and information delivery.

(Dis)aggregated earnings forecasts and acquisition financing

2019 ◽  
Vol 28 (2) ◽  
pp. 255-271
Author(s):  
Paul Ordyna
Keyword(s):  
Voluntary Disclosure ◽  
Logistic Model ◽  
Earnings Forecasts ◽  
Merger And Acquisition ◽  
Management Forecasts ◽  
Earnings Guidance ◽  
Content Type ◽  
True Value ◽  
Acquiring Firms ◽  
Management Guidance

Purpose The purpose of this paper is to examine how a firm’s mergers and acquisitions (M&A) goals influence its voluntary disclosure policy. Specifically, this paper examines how a firm’s M&A financing intentions influence the degree of aggregation in management guidance prior to and after the M&A transaction. Design/methodology/approach Using a logistic model, this study tests the relation between M&A financing and the decision to issue disaggregate earnings guidance for 3,929 acquiring firms from 2007 to 2011. Findings The logistic regression results show that firms are more likely to provide disaggregate earnings guidance when using mostly stock to finance M&A and that the incentives to disaggregate guidance vary throughout the M&A transactional window. Alternatively, because the value of cash is independent of the true value of the acquirer, the results show that firms offering mostly cash to finance M&A are less likely to issue disaggregate earnings forecasts. Additional analysis reveals that the decision to issue disaggregate earnings guidance also influences post-merger outcomes such as CEO turnover. Research limitations/implications The choice to disaggregate earnings guidance and the choice to use stock as a means to finance an acquisition is made by management, thus are endogenous which could introduce bias. Originality/value This study provides insights into management’s incentives and attitudes toward the use of management forecasts to effect a potential merger and acquisition. Given the flexibility management has in issuing voluntary forecasts, management can tailor a financial message toward investors and potential targets in attempt to facilitate a merger and acquisition and to further the firm’s goals.

Fake news on Facebook: examining the impact of heuristic cues on perceived credibility and sharing intention

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khudejah Ali ◽  
Cong Li ◽  
Khawaja Zain-ul-abdin ◽  
Muhammad Adeel Zaffar
Keyword(s):  
Public Health ◽  
Social Media ◽  
Design Methodology ◽  
Fake News ◽  
Content Type ◽  
Perceived Credibility ◽  
News Credibility ◽  
The Impact ◽  
Practical Implications ◽  
Active Processing

PurposeAs the epidemic of online fake news is causing major concerns in contexts such as politics and public health, the current study aimed to elucidate the effect of certain “heuristic cues,” or key contextual features, which may increase belief in the credibility and the subsequent sharing of online fake news.Design/methodology/approachThis study employed a 2 (news veracity: real vs fake) × 2 (social endorsements: low Facebook “likes” vs high Facebook “likes”) between-subjects experimental design (N = 239).FindingsThe analysis revealed that a high number of Facebook “likes” accompanying fake news increased the perceived credibility of the material compared to a low number of “likes.” In addition, the mediation results indicated that increased perceptions of news credibility may create a situation in which readers feel that it is necessary to cognitively elaborate on the information present in the news, and this active processing finally leads to sharing.Practical implicationsThe results from this study help explicate what drives increased belief and sharing of fake news and can aid in refining interventions aimed at combating fake news for both communities and organizations.Originality/valueThe current study expands upon existing literature, linking the use of social endorsements to perceived credibility of fake news and information, and sheds light on the causal mechanisms through which people make the decision to share news articles on social media.

When and why does a “poker face” facilitate workplace creativity?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Weiyi Chen ◽  
Xinmei Liu ◽  
Xiaojie Zhang
Keyword(s):  
Design Methodology ◽  
Positive Relationship ◽  
Time Pressure ◽  
Hierarchical Regression ◽  
Conservation Of Resources ◽  
Regression Analyses ◽  
Expressive Suppression ◽  
Content Type ◽  
Workplace Creativity

PurposeThe authors investigate when and why a subordinate's expressive suppression facilitates workplace creativity, building on the conservation of resources theory and considering the effect of the supervisor's expressive suppression and time pressure as boundary conditions.Design/methodology/approachMultisource data were collected from 132 teams in northwestern China, including 132 supervisors and 648 subordinates. Hierarchical regression analyses were used to test the effects.FindingsThe subordinate’s expressive suppression was positively related to their workplace creativity. Challenge time pressure was positively related to workplace creativity, and the subordinate’s expressive suppression was positively related to workplace creativity when challenge time pressure was lower and the supervisor's expressive suppression was higher. Hindrance time pressure was negatively related to workplace creativity, and a positive relationship between a subordinate's expressive suppression and workplace creativity was also found with less hindrance time pressure and greater expressive suppression by their supervisor.Originality/valueBy examining the role of the supervisor as a source of downward spillovers in various time pressure contexts, the study explains why a subordinate’s suppression facilitates workplace creativity from the conservation of resources perspective.

Consequences of the implementation of expanded audit reports with key audit matters (KAMs) on audit quality

2020 ◽  
Vol 35 (8) ◽  
pp. 1095-1119
Author(s):  
Weerapong Kitiwong ◽  
Naruanard Sarapaivanich
Keyword(s):  
Design Methodology ◽  
Audit Quality ◽  
Discretionary Accruals ◽  
Regression Analyses ◽  
Content Type ◽  
Weak Evidence ◽  
Financial Restatements ◽  
Audit Reports ◽  
The Impact ◽  
Made In

Purpose This paper aims to ask whether the implementation of the expanded auditor’s report, which included a requirement to disclose key audit matters (KAMs) in Thailand since 2016, has improved audit quality. Design/methodology/approach To answer this question, the authors examined audit quality two years before and two years after its adoption by analysing 1,519 firm-year observations obtained from 312 companies. The authors applied logistic regression analyses to the firm-year observations. Findings The authors found some weak evidence that KAMs disclosure improved audit quality because of auditors putting more effort into their audits and audits being performed thoroughly after the implementation of KAMs. Interestingly, the number of disclosed KAMs and the most common types of disclosed KAMs are not associated with audit quality. Only disclosed KAMs related to acquisitions are more informative because the presence of this type of disclosed KAMs signals the greater likelihood of financial restatements being made in a later year. Originality/value Unlike previous studies on the impact of KAMs disclosure on audit quality, which used discretionary accruals as proxy for audit quality, this study used the occurrence of financial restatements.

Brand forgiveness

2019 ◽  
Vol 28 (5) ◽  
pp. 633-652 ◽  
Author(s):  
Marc Fetscherin ◽  
Alexandra Sampedro
Keyword(s):  
Coping Strategies ◽  
Research Design ◽  
Representative Sample ◽  
Design Methodology ◽  
Regression Analyses ◽  
Content Type ◽  
Research Designs ◽  
Brand Transgression ◽  
Degrees Of Severity ◽  
A Performance

Purpose This paper aims to explore and discuss the concept of brand forgiveness. It empirically assesses the relationships among three types of brand transgressions, brand forgiveness and three consumer coping strategies. Design/methodology/approach A 3 × 2 research design is used to evaluate the effects of three types of brand transgression (performance, image and value) and two degrees of severity (high vs low) for brand forgiveness. Then, this paper use a 2 × 3 research design, evaluating two degrees of brand forgiveness (high vs low) together with their effects on three different consumer coping strategies (switching, attacking and purchasing again). Using a representative sample of 472 US consumers, various hypotheses related to these research designs are tested. Findings The results show that almost half (48 per cent) of the consumers are unlikely or very unlikely to forgive a brand compared to about a third (32 per cent) who are likely or very likely to forgive. The results of ANOVA show the more severe the brand transgression, the less likely the forgiveness. Consumers who are more likely to forgive are less likely to avoid the brand or engage in attacking behaviors; they are also more likely to purchase the brand again. The results of regression analyses show that consumers witnessing a performance-based brand transgression are more likely to forgive the brand than in the case of image- or value-based brand transgressions. Originality/value This paper explores and outlines the brand forgiveness construct, both theoretically and empirically.

Observed effectiveness of the COSO 2013 framework

2019 ◽  
Vol 16 (1) ◽  
pp. 31-45
Author(s):  
Ifeoma Udeh
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Design Methodology ◽  
Control Process ◽  
Regression Analyses ◽  
Section 404 ◽  
Content Type ◽  
Sarbanes Oxley ◽  
Material Weaknesses ◽  
Practical Implications

Purpose This paper aims to examine the effectiveness of the Committee of Sponsoring Organization’s 2013 Framework, by investigating how the number of auditor-reported material weaknesses compares for Early-, Timely- and Late-adopters of the framework, and how the number of auditor-reported material weaknesses changed for Early- and Timely-adopters following their adoption of the framework. Design/methodology/approach The paper uses regression analyses based on a sample of US firms subject to Sarbanes-Oxley Act Section 404(b). Findings Timely-adopters of the 2013 Framework continued to exhibit fewer instances of auditor-reported material weaknesses than Late-adopters, even though they had a marginal increase in the number of auditor-reported material weaknesses, in the post-2013 Framework period. Practical implications The findings suggest that the effectiveness of the 2013 Framework may lie in the iterative nature of the internal control process, and as firms remedy deficiencies they or their auditors identify, they will continuously improve the effectiveness of their internal control systems. Originality/value Unlike existing literature, this paper uses data from the pre-2013 Framework, transition and post-2013 Framework periods to examine changes in the number of auditor-reported material weaknesses, thus differentiating between Early-, Timely- and Late-adopters of the 2013 Framework. It also shows the effect of adopting the 2013 Framework on the number of auditor-reported material weaknesses.

Successful rebounds: how firms overcome their middle age crisis

2018 ◽  
Vol 39 (3) ◽  
pp. 3-8
Author(s):  
Candace Ten Brink ◽  
Betsy D. Gelb ◽  
Robert Keller
Keyword(s):  
Design Methodology ◽  
New Products ◽  
Published Data ◽  
Regression Analyses ◽  
Organizational Changes ◽  
Content Type ◽  
Technology Firms ◽  
Industry Performance ◽  
Performance Decline ◽  
Practical Implications

Purpose This paper aims to examine technology-based firms that successfully turned around a decline in performance, to report what they did and what characterized the firms themselves, relating those actions and characteristics to effective rebounds. Design/methodology/approach The authors use published data, including financial data, to examine 59 successful rebounds, and then apply regression analyses to relate firm actions and characteristics to performance. Findings Strategic moves by these firms included layoffs, new products and new inter-company relationships. However, none of those actions predicted rebound success, either individually or in combination. Successful rebounds were associated only with smaller size and a deeper decline – from exceeding the industry performance median to falling far below it. Research limitations/implications Technology firms may or may not represent all middle-aged companies in terms of authors’ implications, that a one-size-fits-all turnaround formula is unavailable. Practical implications Wise managers will therefore consider various scenarios to prepare for decline and test several if possible. Further, the finding that dramatic drops in performance are associated with successful rebounds should warn managers who think that a competitor’s major problems mean they will disappear; they may be likelier to rebound than a competitor experiencing only a mild performance decline. Originality/value Managers who think they have THE answer to decline can profit from the news that one cannot count on layoffs, on new products or on new relationships to turn around performance decline. And, the small-is-beautiful (for rebounds) result suggests rethinking the assumption that bigger is better and making organizational changes in large organizations to allow them to imitate the flexibility advantages that a smaller firm achieves.

How job crafting relates to task performance

2016 ◽  
Vol 31 (3) ◽  
pp. 672-685 ◽  
Author(s):  
Daniela Weseler ◽  
Cornelia Niessen
Keyword(s):  
Task Performance ◽  
Design Methodology ◽  
Job Crafting ◽  
Hierarchical Regression ◽  
Future Research ◽  
Regression Analyses ◽  
Reduction Behavior ◽  
Content Type ◽  
Differential Relations ◽  
And Task

Purpose – The purpose of this paper is to investigate the relation between extending and reducing job crafting behavior, cognitive crafting and task performance. Design/methodology/approach – Hierarchical regression analyses of data from 131 employee-supervisor pairs were conducted to analyze the differential relations of five job crafting dimensions to self- and supervisor-rated task performance. Findings – The present study shows that reduction behavior is rated as counterproductive, and extension behavior is rated as productive in terms of task performance by employees themselves. Supervisors rated task performance higher when employees extended their tasks, and lower when they reduced relationships. Research limitations/implications – Future research should test the hypotheses in a longitudinal setting and should focus processes that moderate the differential job crafting-task performance relationships. Originality/value – By distinguishing extending and reducing task and relational boundaries and cognitive crafting, the authors give first evidence to possible negative sides of job crafting.

The riddle of self-centered leadership in Arab organizations: a measurement scale

2019 ◽  
Vol 42 (4) ◽  
pp. 430-459
Author(s):  
Hisham Hamid Hawass
Keyword(s):  
Factor Analysis ◽  
Confirmatory Factor Analysis ◽  
International Research ◽  
Design Methodology ◽  
Leadership Behaviors ◽  
The Self ◽  
Measurement Scale ◽  
Regression Analyses ◽  
Content Type ◽  
Confirmatory Factor

Purpose The purpose of this paper is to develop a scale to empirically measure the self-centered leadership SCL pattern in Arab organizations. Design/methodology/approach This paper depends on two Egyptian samples. It has conducted exploratory factor analysis, confirmatory factor analysis and multiple regression analyses to generate the proposed SCL measurement scale. Findings The analyses have revealed that the new measurement scale is valid and reliable. They have also confirmed the multidimensional structure of the self-centered leadership construct. Originality/value The Arab leadership literature is in short of scales which take into consideration the specialties of the Arab cultures. Therefore, this study fills a lacuna in international research which examines Arab leadership behaviors from a culture-bound perspective.

The multi-faceted impact of host country risk on the success of private participation in infrastructure projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alfredo Jiménez ◽  
Secil Bayraktar ◽  
Jeoung Yul Lee ◽  
Seong-Jin Choi
Keyword(s):  
Host Country ◽  
Design Methodology ◽  
Project Success ◽  
Country Risk ◽  
Lower Probability ◽  
Current Debate ◽  
Regression Analyses ◽  
Infrastructure Projects ◽  
Content Type ◽  
Private Participation

Purpose This paper aims to investigate the multi-faceted impact of host country risks on the success of private participation in infrastructure projects. The authors make a distinction between exogenous and endogenous risks, differentiating those that are completely beyond the control of the firm from those in which firms might exert some degree of influence to reduce the negative repercussions. Design/methodology/approach Drawing on logistic regression analyses, the authors analyze a sample of 10,350 private participation in infrastructure projects in 126 countries from 1997 to 2014. Findings The authors find that higher levels of exogenous risk are associated with a lower probability of project success, whereas they find no significant effect for endogenous risk. Originality/value By pointing to this differential effect, this study makes a contribution to the current debate in the literature on private participation projects.

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