The influence of CEOs’ equity-based compensation on restaurant firms’ CSR initiatives

2019 ◽  
Vol 31 (9) ◽  
pp. 3664-3682
Author(s):  
Sungbeen Park ◽  
Sujin Song ◽  
Seoki Lee
Keyword(s):  
Risk Management ◽  
Agency Theory ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Institutional Ownership ◽  
Content Type ◽  
Management Perspective ◽  
Negative Effect ◽  
Restaurant Firms ◽  
The Relationship

Purpose Based on the agency theory and risk management perspective, this study aims to examine the relationship between CEOs’ pay schemes and corporate social responsibility (CSR) activities in the restaurant industry. Specifically, the authors propose that CEOs with a higher proportion of equity-based compensation (EBC), which induces a greater propensity for risk-taking, are prone to indulge less in CSR. In addition, the authors investigate how institutional ownership moderates the proposed main relationship. Design/methodology/approach This study performs two-way fixed-effects models and clustered standard errors to test the proposed hypotheses. Findings The results of the panel analysis show a significant negative effect of CEOs’ EBC on CSR. Also, the authors found a significant positive moderating effect of institutional ownership between CEOs’ EBC and CSR. Originality/value Given the lack of empirical studies that incorporate both agency theory and the risk management perspective, and given the importance of understanding the determinants of restaurant firms’ CSR activities, this study expands upon the existing literature by showing the relationship between CEOs’ compensation schemes and restaurant firms’ CSR activities.

CEO age and analysts forecast properties

2019 ◽  
Vol 28 (1) ◽  
pp. 1-23
Author(s):  
Imran Haider ◽  
Nigar Sultana ◽  
Harjinder Singh ◽  
Yeut Hong Tham
Keyword(s):  
Financial Reporting ◽  
Firm Value ◽  
Empirical Studies ◽  
Forecast Accuracy ◽  
Information Environment ◽  
Analyst Forecast ◽  
Content Type ◽  
Negative Effect ◽  
Ceo Age ◽  
The Relationship

Purpose The purpose of this paper is to assess whether there is an association between CEO age and analysts forecast properties (particularly forecast accuracy and bias/optimism). CEOs, having the central role in managing firms, can significantly influence the financial and non-financial decisions in an organisation. Furthermore, having been identified as key culprits in past major accounting scandals, it is also important to identify the CEO characteristics that affect financial reporting decisions. Design/methodology/approach This study adopts the upper echelon theory on the relationship between CEO age and analysts forecast properties. The authors use a sample of 2,730 Australian firm-year observations for the period 2004–2013 drawn from IBES, Connect 4 and SIRCA databases. Findings The authors find that analyst forecast accuracy increases and bias (optimism) reduces with the CEO age. The authors conclude that earnings and related information provided to analysts improves with the CEO age, which increases the forecast accuracy and reduces bias (optimism). Additional results suggest that the positive (negative) effect of CEO age on forecast accuracy (bias) remains until the CEOs reach the age of their retirement age (65 years). The results remain consistent with a number of sensitivity tests and provide implication for stakeholders such as firms, analysts, auditors, financial statements users and regulators. Practical implications The authors demonstrate that the relationship between CEO age and analyst forecast properties is not linear but is, in fact, curvilinear substantiating concerns that CEOs that are much younger or much older do not help increase the quality of the information environment. Consequently, firms hiring CEOs in the right age bracket also benefit by having higher-quality information environment leading possibly to reduce costs such as those relating to debt and/or equity ultimately increasing firm value. Originality/value Empirical studies on the association between CEO age and analysts earnings properties in Australia are scarce and this paper contributes to the determinants of the analysts forecast accuracy and bias (optimism) and the CEO age literature.

CEO duality, earnings quality and board independence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Alves
Keyword(s):  
Agency Theory ◽  
Fixed Effects ◽  
Earnings Quality ◽  
Chief Executive ◽  
Board Independence ◽  
Ceo Duality ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose This study draws on agency, theory to evaluate the relationship between chief executive officer (CEO) duality and earnings quality, proxied by discretionary accruals. Additionally, this study aims to examine whether board independence moderates the relationship between CEO duality and earnings quality. Design/methodology/approach This study uses a fixed-effects regression model to examine the effect of CEO duality on earnings quality and to test whether board independence moderates that relationship for a sample of non-financial listed Portuguese firms-year from 2002 to 2016. Findings Consistent with agency theory, this study suggests that CEO duality decreases earnings quality. Further, the results also suggest that the earnings quality reduction associated with CEO duality is attenuated when the board of directors has a higher proportion of independent directors. Practical implications The findings based on this study provide useful information to investors and regulators in evaluating the impact of CEO duality on earnings quality and the effect of board independence on the role of CEO duality, especially under concentrated ownership. Originality/value To the knowledge, this study is the first to investigate the role of board independence on the association between CEO duality and earnings quality. In addition, this paper is the first empirical study to investigate the direct and indirect effect of CEO duality on earnings quality in Portugal.

Internationalization as a determinant of systematic risk: the role of restaurant type

2018 ◽  
Vol 30 (8) ◽  
pp. 2791-2809 ◽  
Author(s):  
SoYeon Jung ◽  
Michael Dalbor ◽  
Seoki Lee
Keyword(s):  
Risk Management ◽  
Risk Reduction ◽  
Systematic Risk ◽  
Content Type ◽  
International Operations ◽  
Restaurant Firms ◽  
Reduction Effect ◽  
The Relationship ◽  
Limited Service

Purpose The purpose of this study is twofold: to investigate the relationship between restaurant firms’ internationalization and systematic risk, and to further examine the relationship between internationalization and systematic risk based on the type of restaurant firm (i.e. limited-service vs full-service restaurants). Design/methodology/approach This study analyzes data from US-based publicly traded restaurant firms by estimating systematic risk based on the Carhart four-factor model and by performing a two-way random-effects model. Findings Findings support not only the risk-reduction effect of internationalization on systematic risk but also the moderating effect of the role of restaurant type on the relationship between internationalization and systematic risk. More specifically, the risk-reduction effect of internationalization on systematic risk is greater for limited-service than full-service restaurants. Practical implications The findings of this study can provide restaurant executives with more confidence in pursuing internationalization as part of their risk management strategy, acknowledging that more international operations could mitigate restaurant firms’ systematic risk. More specifically, limited-service restaurants can more significantly enjoy the risk-reduction benefits by increasing their international operations than full-service restaurants based on the findings of this study. Furthermore, risk-averse investors could consider purchasing shares of limited-service multinational restaurants’ stocks to enjoy more risk-reduction benefits. Originality/value By focusing on the restaurant industry with consideration for the restaurant type, this study provides more tailored recommendations for implementing internationalization strategies with regard to risk management.

Does franchising reduce geographically diversified restaurant firms’ risk?

2019 ◽  
Vol 31 (1) ◽  
pp. 161-179 ◽  
Author(s):  
Sujin Song ◽  
Sungbeen Park ◽  
Seoki Lee
Keyword(s):  
Fixed Effects ◽  
Hospitality Management ◽  
Restaurant Industry ◽  
Fixed Effects Model ◽  
Geographic Diversification ◽  
Content Type ◽  
Diversification Strategies ◽  
Negative Effect ◽  
Contingent Factor ◽  
Restaurant Firms

PurposeThis study aims to examine how geographic diversification affects firms’ risk by introducing the franchising strategy as a moderator.Design/methodology/approachThe panel regression analysis was conducted with a sample of US restaurant firms. Specifically, a two-way random (or fixed) effects model clustered by firm was used to test hypotheses.FindingsFindings show that geographic diversification does not significantly affect restaurant firms’ risk. However, franchising aggravates the negative effect of geographic diversification on restaurant firms’ risk, which contradicts the traditional theories of franchising.Research limitations/implicationsThe results are expected to contribute to the diversification literature in the hospitality management by providing in-depth evidence for the effects of geographic diversification strategies on firms’ risk. Specifically, the study provides relevant theories for explaining the effect of geographic diversification in the restaurant context by examining franchising, a prominent strategy in the restaurant industry.Practical implicationsThe results encourage restaurant firms to improve their managerial capability to react to changes in a geographically wider scope of markets and develop franchising contracts specifically to prevent misbehavior and moral hazard on the part of franchisees.Originality/valueConsidering the lack of research on the effect of geographic diversification on restaurant firms’ risk, this study examines not only the link between geographic diversification and firms’ risk but also a contingent factor, franchising.

Climate change, responsible leadership and organizational commitment

2019 ◽  
Vol 30 (5) ◽  
pp. 945-962 ◽  
Author(s):  
Mohamed Mousa ◽  
Vesa Puhakka ◽  
Hala A. Abdelgaffar
Keyword(s):  
Climate Change ◽  
Organizational Commitment ◽  
Empirical Studies ◽  
Public Hospitals ◽  
Responsible Leadership ◽  
Normative Commitment ◽  
Content Type ◽  
Negative Effect ◽  
The Relationship

Purpose The purpose of this paper is to focus on physicians in the four public hospitals located in the October province of Egypt in an attempt to explore the effect of climate change on physicians’ affective, continuance and normative commitment with and without mediating the role of responsible leadership. Design/methodology/approach A total of 360 physicians were contacted and all of them received a set of questionnaires. After two follow-ups, a total of 240 responses were collected with a response rate of 66.67 percent. Multiple regressions were employed to show how much variation in affective, continuance and normative commitment can be explained by climate change with and without the mediation of responsible leadership. Findings The findings show a statistically negative effect for climate change on physicians’ three approaches of organizational commitment (affective, continuance and normative). Furthermore, the statistical analysis proved that having responsible leaders in hospitals has a negligible effect on the relationship between climate change and the affective, continuance and normative commitment. Originality/value This paper contributes by filling a gap in environment and organization literature, in which empirical studies on the relationship between climate change and organizational commitment have been limited until now.

Improving new product development performance by risk management

2016 ◽  
Vol 31 (3) ◽  
pp. 418-425 ◽  
Author(s):  
Mehran Salavati ◽  
Milad Tuyserkani ◽  
Seyyede Anahita Mousavi ◽  
Nafiseh Falahi ◽  
Farshid Abdi
Keyword(s):  
Risk Management ◽  
Product Development ◽  
New Product Development ◽  
Small Sample Size ◽  
New Product ◽  
Small Sample ◽  
Content Type ◽  
Total Performance ◽  
The Relationship ◽  
Npd Performance

Purpose The principal aim of this study is to investigate the relationship between technological, marketing, organizational and commercialization risk management on new product development (NPD) performance. Design/methodology/approach Based on questionnaire, the data were collected from a sample of general automotive industry in Iran. Based on theoretical considerations, a model was proposed and descriptive statistic and hierarchical regression were used to measure the relationship between risk management factors and NPD performance. Findings Data analysis revealed that if organization can amplify their knowledge and information about risk and main factors that affect NPD process, not only can they do their work better but can also increase their ability to predict future happenings that affect performance. Research limitations/implications First, due to the relatively small sample size, caution should be exercised when interpreting the results. Second, the data were collected from automotive producer in Iran, which may restrict to some extent generalizability of the findings. Practical implications The results suggest that managers should consider more attention to risk management. If managers spread the risk management in all aspects of the NPD project, total performance will be increased and it can develop the probability of NPD success. Also organizations should perform great market research due to best commercialization. Originality/value Past researches have presented complete information about NPD process. But identifying and considering the effect of the risk management parameters that are connected to the NPD process were the main thrusts to perform the study. In this paper, based on past research about risk management of NPD, the extra aspect of process that can improve total performance of NPD has been examined.

scholarly journals Creating relationship continuity across projects in the construction industry

IMP Journal ◽  
2017 ◽  
Vol 11 (2) ◽  
pp. 207-229 ◽  
Author(s):  
Malena Ingemansson Havenvid ◽  
Elsebeth Holmen ◽  
Åse Linné ◽  
Ann-Charlott Pedersen
Keyword(s):  
Construction Industry ◽  
Empirical Studies ◽  
Mutual Orientation ◽  
Content Type ◽  
Construction Firms ◽  
Relationship Continuity ◽  
Time Period ◽  
Strategy Types ◽  
The Relationship ◽  
Over Time

Purpose The purpose of this paper is to investigate the relationship continuity across projects among actors in the construction industry, and to discuss why and how such continuity takes place. Design/methodology/approach The authors draw on the results from four in-depth case studies illustrating different strategies for pursuing relationship continuity. The results are analysed and discussed in light of the oft-mentioned strategies suggested by Mintzberg (1987): emergent, deliberate and deliberately emergent strategies. Furthermore, the ARA-model is used to discuss why the relationship continuity strategies are pursued, and which factors might enable and constrain the relationship continuity. Findings The main findings are twofold. First, the authors found that the strategy applied for pursuing relationship continuity may, in one-time period, contain one type of strategy or a mix of strategy types. Second, the type of strategy may evolve over time, from one type of strategy being more pronounced in one period, to other strategies being more pronounced in later periods. The strategies applied by construction firms and their counterparts can thus contain elements of emergent, deliberate and deliberately emergent strategies, in varying degrees over time. It is also shown that the strategies of the involved actors co-evolve as a result of interaction. Also, the main reasons for pursuing continuity appear to lie in the re-use and development of important resources and activities across projects to create efficiency and the possibility to develop mutual orientation, commitment and trust over time, and thus reduce uncertainty. Research limitations/implications Further empirical studies are needed to support the findings. For managers, the main implication is that relationship continuity can arise as part of an emerging interaction pattern between firms or as part of a planned strategy, but that elements of both might be needed to sustain it. Originality/value The authors combine Mintzberg’s strategy concepts with the ARA-model to bring new light to the widely debated issue of discontinuity and fragmentation in the construction industry.

Controlling shareholders' stock pledges and strategic change: the moderating effects of corporate governance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xi Zhong ◽  
He Wan ◽  
Qiuping Peng
Keyword(s):  
Fixed Effects ◽  
Family Firms ◽  
Strategic Change ◽  
Balance Of Power ◽  
Controlling Shareholder ◽  
Analyst Coverage ◽  
Content Type ◽  
Controlling Shareholders ◽  
Change Behavior ◽  
Negative Effect

PurposeThe authors analyze the effects of controlling shareholders' stock pledging on firms' strategic change behavior, and investigate how the balance of power between shareholders and analyst coverage moderates those effects.Design/methodology/approachEmploying fixed effects models, the authors test hypotheses based on Chinese listed company data from 2011 to 2017.FindingsControlling shareholders' stock pledges has a negative effect on strategic change. As the balance of power among shareholders and/or analyst coverage increases, it mitigates the effect of controlling shareholder stock pledges on strategic change. In particular, the balance of power between shareholders and analyst coverage weakened the relationship between controlling shareholder stock pledges and strategic change. Lastly, after distinguishing family from nonfamily firms, the authors discovered that these findings only held for family firms.Originality/valueThis study makes important contributions to strategic change, stock pledge and family firm literature, and also provides guidance on firms' strategic change practices.

Characterizing response quantity on academic social Q&A sites: a multidiscipline comparison of linguistic characteristics of questions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lei Li ◽  
Anrunze Li ◽  
Xue Song ◽  
Xinran Li ◽  
Kun Huang ◽  
...  
Keyword(s):  
Information Needs ◽  
Function Words ◽  
Second Person ◽  
Content Type ◽  
Five Disciplines ◽  
Negative Effect ◽  
Academic Communication ◽  
High Level ◽  
The Impact ◽  
The Relationship

PurposeAs academic social Q&A networking websites become more popular, scholars are increasingly using them to meet their information needs by asking academic questions. However, compared with other types of social media, scholars are less active on these sites, resulting in a lower response quantity for some questions. This paper explores the factors that help explain how to ask questions that generate more responses and examines the impact of different disciplines on response quantity.Design/methodology/approachThe study examines 1,968 questions in five disciplines on the academic social Q&A platform ResearchGate Q&A and explores how the linguistic characteristics of these questions affect the number of responses. It uses a range of methods to statistically analyze the relationship between these linguistic characteristics and the number of responses, and conducts comparisons between disciplines.FindingsThe findings indicate that some linguistic characteristics, such as sadness, positive emotion and second-person pronouns, have a positive effect on response quantity; conversely, a high level of function words and first-person pronouns has a negative effect. However, the impacts of these linguistic characteristics vary across disciplines.Originality/valueThis study provides support for academic social Q&A platforms to assist scholars in asking richer questions that are likely to generate more answers across disciplines, thereby promoting improved academic communication among scholars.

The relationship between knowledge-based economy and fraudulent financial reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abbas Koolivand ◽  
Mahdi Salehi ◽  
Meysam Arabzadeh ◽  
Hassan Ghodrati
Keyword(s):  
Financial Markets ◽  
Financial Reporting ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Fraudulent Financial Reporting ◽  
Content Type ◽  
Knowledge Based ◽  
Robust Testing ◽  
Knowledge Based Economy ◽  
The Relationship

Purpose This paper aims to assess the relationship between a knowledge-based economy and fraudulent financial reporting. Design/methodology/approach The study is descriptive-correlation based on published information from enlisted firms on the Tehran Stock Exchange during 2013–2019 with a sample of 178 firms (1,246 observations). The method used for hypothesis testing is linear regression using the panel data. Findings The results show that a knowledge-based economy is associated negatively and significantly with financial reporting. Moreover, robust testing has also examined the hypotheses (including fixed effects, OLS and t + 1) that confirmed the study’s preliminary results. Originality/value As the study was carried out in the emergent financial markets, like Iran, to figure out the relationship between knowledge-based economy and financial reporting, it can provide helpful information for the practitioners in this field.

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