scholarly journals Information leaks before CEO change: financial gain and ethical cost

2020 ◽  
Vol 24 (1) ◽  
pp. 19-29
Author(s):  
Gregor Halff ◽  
Anne Gregory
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Design Methodology ◽  
Fortune 500 ◽  
Content Type ◽  
The Public ◽  
Financial Gain ◽  
Fortune 500 Companies ◽  
Search Patterns ◽  
A Company

PurposeThe purpose of this paper is to investigate whether there are information leaks immediately before CEOs change and – if so – whether some investors take financial advantage of such prior knowledge. It thirdly investigates the ethical, practical and professional options for communication managers to deal with such situations.Design/methodology/approachWorking from sentiment theory of financial markets, the authors studied Internet search patterns for incoming CEO names and stock market movements immediately prior to the public mention or speculation of CEO change.FindingsThe authors find that in nearly a quarter of CEO changes at Fortune 500 companies, the name of the future CEO seems to have been leaked. Additionally, nearly half of those companies also experience extreme, otherwise unexplainable movements in the stock market.Originality/valueThis paper discovers the prevalence of extreme stock market movements for a company when the name of that company's next CEO has likely been leaked. Such leaks are an opportunity for unscrupulous investors, but they create ethical dilemmas for organizations. Communication managers typically respond by organizing tighter governance. However, to keep up with the speed of information and investments traveling through algorithms, organizing radical transparency could become an alternative instead.

Relational cultivation strategies and community building on Fortune 500 company corporate blogs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tugce Ertem-Eray ◽  
Eyun-Jung Ki
Keyword(s):  
Public Relations ◽  
Sense Of Community ◽  
Communication Channel ◽  
Community Building ◽  
Online Communication ◽  
Fortune 500 ◽  
Content Type ◽  
The Public ◽  
Fortune 500 Companies ◽  
Corporate Blogs

PurposeAs the number of corporate blogs has continued to increase over the years, this study examines the use of relationship cultivation strategies of Fortune 500 companies on their corporate blogs. Moreover, it focuses on how companies use corporate blogs as interactive online communication channels to create a sense of community among their publics.Design/methodology/approachA content analysis of Fortune 500 company corporate blogs was conducted to examine the use of relational cultivation strategies and their methods of promoting a sense of community.FindingsFindings indicate that networking and sharing tasks are used most frequently among all relational cultivation strategies on corporate blogs, and that there are statistically significant differences among industries for using relationship cultivation strategies on corporate blogs. The most frequently used dimension of sense of community on corporate blogs is shared emotional connection.Originality/valueStudies analyzing social media as public relations tools have not yet focused on community building. In fact, few studies have examined the community building aspect of corporate blogs in the public relations field. To fill this gap, this study focuses on community building and analyzes how companies use corporate blogs as an interactive online communication channel to create a sense of community among their publics.

Does institutional theory explain integrated reporting adoption of Fortune 500 companies?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Merve Kılıç ◽  
Ali Uyar ◽  
Cemil Kuzey ◽  
Abdullah S. Karaman
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Institutional Theory ◽  
Institutional Environment ◽  
Fortune 500 ◽  
Business Environment ◽  
Integrated Reporting ◽  
Content Type ◽  
The Public ◽  
Fortune 500 Companies

PurposeThe objective of this study is to investigate whether the institutional environment is associated with the adoption of integrated reporting.Design/methodology/approachThe sample of the study is based on the firms included in the list of Fortune Global 500. The logistic regression analysis was run to test the proposed hypotheses.FindingsThe findings indicated that the code-law orientation and strength of the institutional quality are significantly associated (i.e. positively and negatively, respectively) with the integrated reporting of Fortune 500 companies. Firms are motivated for more transparency in stakeholder-oriented and weakly regulated contexts. Thus, stakeholder pressure is more influential than shareholder interest in motivating or forcing firms to issue integrated reports. Besides, there appears to be a trade-off between the public sector and the private sector in terms of ensuring an accountable and transparent business environment. If the public sector does not undertake its role in ensuring a transparent business environment, the private sector fills the gap. The results are robust to alternative sampling and methodologies.Research limitations/implicationsThis study implied that the stakeholder orientation of countries fosters the transparency and accountability of firms. Corporate behavior is impacted by the institutional strength or weakness of nations. The institutional theory provides an appropriate ground to understand drivers of corporate reporting practices of firms beyond firm-level characteristics.Practical implicationsThe adoption of integrated reporting framework by Fortune 500 companies can be leveraged to alleviate concerns about their social and environmental impacts. Policy-makers in the countries which have a weak institutional environment force or encourage their firms to increasingly meet the transparency and accountability demands of society.Social implicationsThe research findings might play an encouraging role in that various stakeholders (i.e. customers, public, civil organizations and press) should undertake active roles and responsibilities to encourage firms to behave in socially and environmentally responsible ways.Originality/valueThis study adds to the literature by examining the influence of the institutional environment on the adoption of integrated reporting, using recent international data, and focusing on the largest companies according to the Fortune's annual Global 500 list. This study is one of the first to examine the association between a set of governance characteristics (i.e. board size, board independence and board diversity) and integrated reporting adoption.

Reflections on civil culpability and accountability in the destabilization of financial institutions

2010 ◽  
Vol 17 (3) ◽  
pp. 333-336
Author(s):  
Mario Serio
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Design Methodology ◽  
Practical Implication ◽  
Comparative Approach ◽  
Private Law ◽  
New Approach ◽  
Content Type ◽  
The Public ◽  
Practical Implications

PurposeThe purpose of this paper is to try and trace a new itinerary in the matter of the destabilization of financial institutions, i.e. the identification of a catalogue of measures that private law can offer in order to make sure that all unlawful initiatives resulting in the loss of credibility of financial markets and prejudice to the public at large do not escape the imposition of all possible liabilities.Design/methodology/approachThe matter here applied consists of the recourse to a number of experiences deriving from European legal systems that have tackled the phenomenon of unlawful attacks on the integrity of the financial markets through individual or organized acts. This comparative approach also benefits from the scrutiny of both legislation and judicial decisions: the latter are also looked at from the perspective of legal authors.FindingsThe most striking result of the research is that the instruments provided for by the private law remedies seem to be very efficient in the contrast of unlawful practices adversely affecting financial markets: the new spirit emerging from this survey is that it is imperative to set aside all contracts and agreements aimed at creating illicit ways to make profits and hide their origins.Practical implicationsThe practical implication should be to encourage all institutions with the task of checking the good functioning of financial markets to avail themselves of the tools here described to stabilize markets and deprive illegal contracts of their ill effects: it would be most desirable if such an approach were to be taken.Originality/valueThe novelty lies in the new approach described above (practical implications).

The importance of looking good

2016 ◽  
Vol 32 (7) ◽  
pp. 14-16
Keyword(s):  
Social Media ◽  
Design Methodology ◽  
Reading Time ◽  
Online Communication ◽  
Fundamental Aspect ◽  
Content Type ◽  
The Public ◽  
Pertinent Information ◽  
A Company ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The ever-widening expanse of social media means that all companies now need an online profile. But such increased exposure means that companies are now under the influence of the public to look good. The need to strive for a good e-reputation is a fundamental aspect of any social media presence for a company. Instant communication means that public dissatisfaction can accumulate uncontrollably. Therefore, effective online communication of ethical plans and initiatives by companies through social media is a key concern. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Six Sigma, stock returns and operating performance

2017 ◽  
Vol 40 (3) ◽  
pp. 331-351 ◽  
Author(s):  
Bora Ozkan ◽  
J. Francisco Rubio ◽  
M. Kabir Hassan ◽  
James R. Davis
Keyword(s):  
Stock Returns ◽  
Six Sigma ◽  
Design Methodology ◽  
Operating Performance ◽  
Fortune 500 ◽  
Operational Performance ◽  
Content Type ◽  
Fortune 500 Companies ◽  
Negative Growth

Purpose This paper aims to expand the literature on financial and operational performance by analyzing the effects of undergoing through Six Sigma training. Design/methodology/approach The effects of implementing Six Sigma trainings is analyzed for 108 Fortune 500 companies. The authors estimate long-term stock returns and 14 financial ratios of Six Sigma companies, both pre- and post-adoption periods. Furthermore, The authors match the 108 companies by size and industry to 108 non-Six Sigma companies also within the Fortune 500. Findings Looking at long-term stock returns, the evidence shows that Six Sigma firms need at least four years before they start to outperform the controlling sample. Furthermore, looking at operational performance, unlike prior reported results, the authors find supporting, and more importantly, persisting statistical evidence that Six Sigma firms are less liquid and have a negative growth in staff levels in comparison to the matching firms. Social implications The findings of this suggest that if Six Sigma provides any value to the company, it comes at the expense of overloaded staff levels, as evidenced by the fact that Six Sigma firms have less growth in staff levels than the matching firms. Originality/value It is one of the first paper to thoroughly investigate the effects on both financial performance and operational performance of spending, sometimes billions of dollars, in Six Sigma training.

Stock market co-movement in Latin America and the US: evidence from a new approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Puneet Vatsa ◽  
Hem Basnet ◽  
Frank Mixon
Keyword(s):  
Latin America ◽  
Stock Market ◽  
Financial Markets ◽  
Stock Markets ◽  
Design Methodology ◽  
Sufficient Time ◽  
New Approach ◽  
Content Type ◽  
The Us

Purpose The purpose of this paper is to investigate the interlinkages among four major stock markets in Latin America, i.e., those in Argentina, Brazil, Chile, and Mexico, as well as their associations with the US stock market, which influences financial markets globally. Design/methodology/approach Using the newly developed Hamilton filter methodology (Hamilton, 2018), the authors decompose each stock series to extract cyclical components. Findings Results indicate that the US S&P 500 is weakly contemporaneously correlated with stock market indices in Brazil, Mexico and Argentina, whereas it also leads the latter by three months. As such, sufficient time is available for policymakers and investors to enhance their forecasts of the latter. Originality/value Results indicate that the US S&P 500 is weakly contemporaneously correlated with stock market indices in Brazil, Mexico and Argentina, whereas it also leads the latter by three months. As such, sufficient time is available for policymakers and investors to enhance their forecasts of the latter.

Corporate governance effect on firms’ performance – evidence from the UAE

2017 ◽  
Vol 33 (1) ◽  
pp. 66-80 ◽  
Author(s):  
Ayda Farhan ◽  
Siti Normala Obaid ◽  
Hairul Azlan
Keyword(s):  
Corporate Governance ◽  
Financial Markets ◽  
United Arab Emirates ◽  
Design Methodology ◽  
Independence Number ◽  
Secondary Data ◽  
Board Independence ◽  
Content Type ◽  
The Public ◽  
Growing Economy

Purpose The purpose of this paper is to show the effect of the corporate governance (CG) on firms’ performance in the United Arab Emirates (UAE). The governance mechanisms employed in this study are board size, board independence and audit committee’s (AC) characteristics. The examined AC characteristics are: AC member’s independence, number of financial experts in the committee, ratio of meetings held during the year, and the incentives received by the AC members. Design/methodology/approach This paper uses all the public listed corporations in the UAE financial markets. The secondary data for four years are used starting from 2010 where the mandatory corporate governance code had been mandated. Findings Board independence has been found to negatively affect firms’ performance. AC meetings and financial experts’ ratio did not affect firm’s performance, while AC incentives and AC independence negatively affected firms’ performance. Originality/value This study is supposed to fill the gap of the lack in CG studies based on fast growing economy which is UAE. Besides, this research investigates the AC’s characters’ effect on firms’ performance which was rarely covered in literature.

HR digital disruption: the biggest wave of transformation in decades

2017 ◽  
Vol 16 (2) ◽  
pp. 55-59 ◽  
Author(s):  
James Larkin
Keyword(s):  
Human Resources ◽  
Digital Technology ◽  
Design Methodology ◽  
Fortune 500 ◽  
Content Type ◽  
Fortune 500 Companies ◽  
Accessible Information ◽  
Working Practices ◽  
Digital Disruption ◽  
Hr Function

Purpose This paper aims to outline and explore the changes chief human resources officers (CHROs) can expect in the digital age, focusing on three distinct categories: inward (changes within the office), outward (changes at the employee/manager level) and across (changes to the organization at large). Design/methodology/approach This paper carried out a review of digitization’s impact on the CHRO role, an assessment of changes at the employee/manager level and an assessment of changes at the organization-wide level. Findings Mimicking social media aligns learning and engagement technology with the expectations and working practices of the millennial generation. The HR function, led by the CHRO, may leverage the power of digital technology to gain an advantage over competitors by attracting and retaining top millennial talent. Cloud technology makes available a wealth of easily accessible information, which facilitates far more effective communication between management and employees. Digital provides employees leverage in terms of formulating strategy, decision-making and even leadership. Expect a dramatic increase in plug-and-play digital solutions related to recruitment and talent. Originality/value Learning and opinion based on the experience of a talent advisory consultant partnering with CHROs across a broad range of Fortune 500 companies.

Social purpose in a social media world

2015 ◽  
Vol 6 (2) ◽  
pp. 163-177 ◽  
Author(s):  
Kathleen Wilburn ◽  
Ralph Wilburn
Keyword(s):  
Social Media ◽  
Web Sites ◽  
Design Methodology ◽  
Fortune 500 ◽  
Third Party ◽  
Content Type ◽  
Csr Reporting ◽  
Corporate Social ◽  
A Company ◽  
Third Party Assessment

Purpose – The purpose of this paper is to illustrate the effects of social media on a company when stakeholders decide select companies are not living up to their corporate social responsibility (CSR) goals. As the number of CSR and sustainability reports on company Web sites increases, the more stakeholders, not just stockholders, know about a company’s commitment to CSR, and the more they can use social media to comment on those goals. It will describe three strategies for CSR initiatives that move beyond self-reporting of goals and progress: third party assessment, specialized certifications and partnerships to provide trustworthy data to stakeholders. Design/methodology/approach – The experiences of Nestlé, Unilever, PepsiCo/Frito Lay and P & G are described. Key third-party assessors and their processes are described, as well as organizations who certify in specific areas. The importance of third-party assessment for CSR achievement is reinforced by examining the results of two reports on CSR reporting trends and capital markets’ response, one of Fortune 500® companies and the other of S & P 500® companies by the Governance & Accountability Institute, Inc. Findings – All three strategies used to verify the data for CSR accomplishment help companies communicate their goals through social media. Originality/value – All three strategies used to verify the data for CSR accomplishment are shown to help companies communicate and validate their CSR goals through social media.

Power imbalance issues in athlete sponsorship versus endorsement in the context of a scandal

2014 ◽  
Vol 48 (5/6) ◽  
pp. 1070-1091 ◽  
Author(s):  
François Anthony Carrillat ◽  
Alain d’Astous
Keyword(s):  
Experimental Design ◽  
Design Methodology ◽  
Negative Impact ◽  
Balance Of Power ◽  
Brand Attitude ◽  
Power Imbalance ◽  
Content Type ◽  
Probabilistic Sample ◽  
A Company

Purpose – The purpose of this study is to contrast athlete endorsement vs athlete sponsorship from a power imbalance perspective when a scandal strikes the athlete. Design/methodology/approach – A first study was conducted with a probabilistic sample of 252 adult consumers where the type of brand–athlete relationship (endorsement or sponsorship) and the level of congruence between the two entities (low or high) were manipulated in a mixed experimental design. A second study with a probabilistic sample of 118 adult consumers was conducted to demonstrate that consumers perceive that the balance of power between the brand and the athlete is not the same in endorsement and sponsorship situations. Findings – The results of the first study showed that when an athlete is in the midst of a scandal, the negative impact on the associated brand is stronger in the case of an endorsement than in the case of a sponsorship. However, this occurs only when the brand–athlete relationship is congruent. The results of the second study showed that the athlete’s power relative to the brand is greater in an endorsement than in a sponsorship context. Research limitations/implications – The findings suggest that a company that worries about the possibility that the athlete with whom it wants to build a relationship be eventually associated with some negative event (e.g. a scandal) should consider sponsorship rather than endorsement as a strategy. Originality/value – This study is the first to compare the athlete endorsement and sponsorship strategies in general and the first to put forward the notion of power imbalance in brand–athlete partnerships, its impact on how the two entities are represented in consumers’ memory networks and the consequences on brand attitude when the athlete is associated with a negative event.

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