Agency theory and financial crime: the paradox of the opportunistic executive

2016 ◽  
Vol 23 (3) ◽  
pp. 574-587 ◽  
Author(s):  
Michel Dion
Keyword(s):  
Agency Theory ◽  
Design Methodology ◽  
Financial Crime ◽  
Governance Mechanisms ◽  
Content Type ◽  
Managerial Opportunism ◽  
Self Interest ◽  
Medium Risk ◽  
Compensation Packages ◽  
The Way

Purpose The purpose of this paper is to philosophically address the issue of managerial opportunism and to describe the paradox of the opportunistic executive, particularly when the CEO could be considered as a “criminal-to-be”. Design/methodology/approach It will be seen to what extent governance mechanisms really contribute to prevent managerial opportunism, particularly through compensation packages (“financial carrots”). Then, Oliver E. Williamson’s viewpoint will be analyzed on opportunism, as his theory has largely influenced the way agency theories actually define managerial opportunism. Williamson was thinking opportunism without referring to philosophical works. The gap in exploring three basic types of opportunism will be filled: the Smithian egoist, the Hobbesian egoist and the Machiavellian egoist. Findings The Smithian egoist tries to reach an equilibrium between self-interest and compassion, while the Hobbesian egoist is motivated by self-interest, desire of power and the attitude of prudence. The Machiavellian egoist is always searching for power and makes followers’ fear arising. The way governance mechanisms and structures should be designed and implemented could be quite different if the CEO actually behaves as a Smithian, Hobbesian or Machiavellian egoist. CEO’s propensity to commit financial crime could largely vary from one type to another: low risk (Smithian egoist), medium risk (Hobbesian egoist) or high risk (Machiavellian egoist). Research limitation/implications Smith’s, Hobbes’ and Machiavelli’s philosophy was chosen because the agency theory sometimes refers to it, when defining the notion of opportunism. Other philosophies could also be analyzed to see to what extent they are opening the door to opportunism (for example, Spinoza). Originality/value The paper analyzes managerial opportunism from a philosophical viewpoint. Whether executives are Smithian, Hobbesian or Machiavellian egoists, their opportunism cannot give birth to similar behaviors.

Co-workers’ perceptions of and reactions to employee’s involuntary demotion

2019 ◽  
Vol 41 (4) ◽  
pp. 740-757 ◽  
Author(s):  
Sophie Hennekam ◽  
Subramaniam Ananthram ◽  
Steve McKenna
Keyword(s):  
Design Methodology ◽  
Emotional Responses ◽  
Emotional Reaction ◽  
Content Type ◽  
Informational Justice ◽  
Behavioural Responses ◽  
Behavioural Reaction ◽  
Three Stages ◽  
Depth Interviews ◽  
The Way

Purpose The purpose of this paper is to investigate how individuals perceive and react to the involuntary demotion of a co-worker in their organisation. Design/methodology/approach The authors draw on 46 semi-structured in-depth interviews (23 dyads) with co-workers of demoted individuals. Findings The findings suggest that an individual’s observation of the demotion of a co-worker has three stages: their perception of fairness, their emotional reaction and their behavioural reaction. The perception of fairness concerned issues of distributive, procedural, interpersonal and informational justice. The emotional responses identified were feelings of disappointment/disillusion, uncertainty, vulnerability and anger. Finally, the behavioural reactions triggered by their emotional responses included expressions of voice, loyalty, exit and adaptation. Originality/value Perceptions of (in)justice perpetrated on others stimulate emotional and behavioural responses, which impacts organisational functioning. Managers should therefore pay attention to the way a demotion is perceived, not only by those directly concerned, but also by co-workers as observers.

scholarly journals Stewardship theory: is board accountability necessary?

2017 ◽  
Vol 59 (6) ◽  
pp. 1292-1314 ◽  
Author(s):  
Andrew Keay
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Design Methodology ◽  
Agency Problems ◽  
Stewardship Theory ◽  
Content Type ◽  
General Terms ◽  
Practical Implications

Purpose The purpose of the paper is to demonstrate that notwithstanding the fact that stewardship theory embraces things like trust of directors, their professionalism, loyalty and willingness to be concerned for the interests of others, as well as rejecting the foundations of classic agency problems that are asserted by agency theory, board accountability is as relevant to stewardship theory as it is to agency theory. Design/methodology/approach The paper applies the theory underlying board accountability in corporate governance, which is so often applied both in the corporate governance literature and in practice with agency theory in mind, to stewardship theory. Findings While the idea of accountability of boards is generally associated with an explanation and conceptualisation of the role and behaviour of directors as agents within classic agency theory, the paper demonstrates that board accountability is a necessary part of board life even if the role of directors is explained and conceptualised in terms of stewardship theory. Practical implications The paper suggests some accountability mechanisms that might be employed in a stewardship approach. Originality/value While many authors have talked in general terms about board accountability and its importance, this is the first paper that has engaged in a substantial study that links board accountability directly with stewardship theory, and to establish that accountability is necessary.

Blockchain as supply chain technology: considering transparency and security

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pei Xu ◽  
Joonghee Lee ◽  
James R. Barth ◽  
Robert Glenn Richey
Keyword(s):  
Supply Chain ◽  
Text Mining ◽  
Information Security ◽  
Design Methodology ◽  
Use Cases ◽  
Future Research ◽  
Content Type ◽  
Blockchain Technology ◽  
Twitter Data ◽  
The Way

PurposeThis paper discusses how the features of blockchain technology impact supply chain transparency through the lens of the information security triad (confidentiality, integrity and availability). Ultimately, propositions are developed to encourage future research in supply chain applications of blockchain technology.Design/methodology/approachPropositions are developed based on a synthesis of the information security and supply chain transparency literature. Findings from text mining of Twitter data and a discussion of three major blockchain use cases support the development of the propositions.FindingsThe authors note that confidentiality limits supply chain transparency, which causes tension between transparency and security. Integrity and availability promote supply chain transparency. Blockchain features can preserve security and increase transparency at the same time, despite the tension between confidentiality and transparency.Research limitations/implicationsThe research was conducted at a time when most blockchain applications were still in pilot stages. The propositions developed should therefore be revisited as blockchain applications become more widely adopted and mature.Originality/valueThis study is among the first to examine the way blockchain technology eases the tension between supply chain transparency and security. Unlike other studies that have suggested only positive impacts of blockchain technology on transparency, this study demonstrates that blockchain features can influence transparency both positively and negatively.

The future of HR is being BRAVE

2018 ◽  
Vol 17 (4) ◽  
pp. 186-192
Author(s):  
Wendy Silver
Keyword(s):  
Design Methodology ◽  
Real Life ◽  
Content Type ◽  
New Approaches ◽  
The Future ◽  
Workplace Cultures ◽  
The Way

Purpose Organizations will need HR departments that take bold new approaches if they are to weather the uncertainty and changes on the horizon. This paper aims to discuss what makes an organization or a leader BRAVE, and examples of HR professionals and organizations leading the way are provided to help readers bravely shape their own organizations. Design/methodology/approach This paper draws upon various real-life examples of organizations whose HR departments are leading the way. Findings Organizations need BRAVE HR professionals and leaders to create, implement and communicate key initiatives to ensure companies make decisions that support workplace cultures that people choose to join and remain a part of. Originality/value No amount of technology can replace the forward-thinking thought, communication and action that being BRAVE requires. This paper will help HR professionals gain a braver perspective.

A critical examination of the regulation of Ponzi scheme in Mauritius

2018 ◽  
Vol 60 (6) ◽  
pp. 1393-1400
Author(s):  
Valerie Uppiah
Keyword(s):  
Research Method ◽  
Design Methodology ◽  
Legal Framework ◽  
Critical Examination ◽  
Financial Crime ◽  
Modus Operandi ◽  
Content Type ◽  
Ponzi Scheme ◽  
Definition Of ◽  
Legal Mechanism

Purpose The purpose of this paper is to analyse the regulation of the financial crime of Ponzi scheme in Mauritius. Contrary to money laundering which has a legal framework to combat it, for Ponzi scheme, there is no specific legal mechanism to combat this particular financial crime. Therefore, the aim of the paper is to provide for an analysis of Ponzi scheme which includes, inter alia, the definition of a Ponzi scheme, its modus operandi and how it should be tackled. Focus will be placed on devising a specific legal framework for it in Mauritius. Design/methodology/approach The research method used to conduct this research and write this paper is a black letter legal research method. An analysis of several laws and cases is carried out so as to provide for the legal background of the research. Findings The investigation conducted in this paper will lead to the conclusion that Mauritius has to devise a law which will specifically combat Ponzi schemes. This law shall provide for the ways to counter this financial crime as well as the duties of the various financial supervisory bodies. Originality/value The paper provides for an analysis of the operation of Ponzi scheme in the Mauritian context. The paper also examines the existing legal framework that combats this financial crime in Mauritius and highlights its strengths and weaknesses.

Entrepreneurship in the digital press: a semantic analysis

2019 ◽  
Vol 26 (3) ◽  
pp. 416-431
Author(s):  
Myriam Martí-Sánchez ◽  
Desamparados Cervantes-Zacarés ◽  
Arturo Ortigosa-Blanch
Keyword(s):  
Empirical Evidence ◽  
Thematic Analysis ◽  
Design Methodology ◽  
Semantic Analysis ◽  
Word Association ◽  
Innovation Ecosystem ◽  
Content Type ◽  
The Public ◽  
The Media ◽  
The Way

Purpose The purpose of this paper is to analyse how the media addresses entrepreneurship and to identify the attributes linked to this phenomenon. Design/methodology/approach The sample is defined in terms of a linguistic corpus comprised of content related to entrepreneurship drawn from the digital editions of the three most important Spanish economic newspapers for the period 2010–2017. Word association and co-occurrence analyses were carried out. Further, a non-supervised clustering process was used as the basis for a thematic analysis. Findings Correspondence between social and media patterns related to the entrepreneurship phenomenon is revealed by the results. It is shown how attributes such as “success”, “innovation”, “ecosystem” and “woman” appear as very relevant and are linked to different co-occurrence scenarios. Relevant thematic groups are also identified related to lexical associations such as innovation, digital economy and public policies linked to entrepreneurship. Research limitations/implications It is important to emphasise that this study has identified and explored relationships between words, but not their evolution. Furthermore, conclusions cannot be drawn concerning whether there are differences in how each newspaper has dealt with entrepreneurship because of the way the corpus was constructed. Originality/value The study provides empirical evidence that helps to identify the way media approaches entrepreneurship. The authors carried out the analysis on the media contents and not on the perception of the public on the phenomenon.

No Harm Done – dispelling myths, giving hope and practical help for young people, parents and professionals affected by self-harm

2016 ◽  
Vol 15 (3) ◽  
pp. 134-135 ◽  
Author(s):  
Marc Bush
Keyword(s):  
Young People ◽  
Design Methodology ◽  
Parent Engagement ◽  
Life Experiences ◽  
Real Life ◽  
Content Type ◽  
Practical Advice ◽  
Short Films ◽  
Self Harm ◽  
The Way

Purpose The No Harm Done films provide hope and give support to those affected by self-harm. The accompanying digital packs dispel myths, answer frequently asked questions, provide practical advice and signpost to further help and support. The paper aims to discuss these issues. Design/methodology/approach YoungMinds employed its sector-leading expertise in youth and parent engagement. Both the films and digital packs were co-created with young people, parents and professionals, reflecting their real-life experiences of self-harm. Findings The project responded to young people who self-harm telling us they feel isolated, alone, in need of hope and help to counteract the negative and frightening messages widely available online. Parents confided they also feel isolated and that it is their fault their child is harming themselves. Teachers told us they see the signs but cannot bring themselves to say anything, and even if they want to, they cannot find the words to reach out to young people. Originality/value Quote from a professional “I personally found the No Harm Done short films to be incredibly valuable resources for my practice with young people. The way the films have been produced will make it a lot harder for young people that I work with to judge the action of self-harm given that there are no graphic harming words/stories and the films themselves do not come across as triggering. I feel enthusiastic that these films will encourage understanding and empathy from peers and spark conversation enabling those who have no knowledge around self-harm to be more accepting, open and supportive of those who have issues with self-harm.”

Modelling identity types through agency: part 2, personal identity and mindsets

Kybernetes ◽  
2017 ◽  
Vol 46 (7) ◽  
pp. 1112-1130
Author(s):  
Davide Di Fatta ◽  
Maurice Yolles
Keyword(s):  
Content Analysis ◽  
Agency Theory ◽  
Personal Identity ◽  
Qualitative Evaluation ◽  
Public Identity ◽  
Content Type ◽  
Behavioural Patterns ◽  
Self Interest ◽  
The Us ◽  
Theory Framework

Purpose The purpose of this paper is to evaluate the personal identity of Donald Trump in the US presidential election using the mindset agency theory framework and content analysis. Design/methodology/approach The qualitative evaluation of identity type is determined by the personality mindset agency theory (PMAT). This measures qualitatively by assigning a type to the personal identity. The methods being adopted are content analysis, and a coding frame is constructed that arises from the key words defined in PMAT. Findings Using PMAT, the authors determine that Trump’s personal identity is of the type hierarchical popularism (HP), from which behavioural patterns are derived, supposing that this is consistent with his public identity type measured using agency MAT (AMAT), which will be assessed in part 3 of this paper. Originality/value Appropriate image management can be used in an attempt to hide problematic purely self-interest aspects of a personality. This paper shows that it is possible to evaluate personality mindsets using content analysis. In a later paper, exploration of agency mindsets will occur that is indicative of the potential for behaviour.

The anti-social behaviour, crime and policing act in practice – a practitioner perspective

2016 ◽  
Vol 15 (4) ◽  
pp. 176-182
Author(s):  
Kirsty Varley
Keyword(s):  
Social Housing ◽  
Social Behaviour ◽  
Design Methodology ◽  
Case Law ◽  
Press Coverage ◽  
Content Type ◽  
Insight Into ◽  
The Way

Purpose The purpose of this paper is to offer a practitioner’s perspective to the Anti-Social Behaviour Crime and Policing Act 2014. Many of the new sections are now in force and three in particular have been of interest to me in the last 12-18 months. Design/methodology/approach The paper is written on the basis of the author’s own knowledge, experience and cases that the author has dealt with under the new legislation. Where cases have been published the author has included the relevant links to press coverage. Findings The financial limitations upon registered provides of social housing (RPs) will affect the way in which they conduct litigation and so might mean that RPs are less likely to want to take risks in court. The new grounds have not faced meaningful challenge yet, and so their use might be limited until case law is developed and settled to provide more certainty in this area. Originality/value The perspective is the author’s own and has been written solely by the author for this specific purpose. It is hoped that this will offer insight into the development of anti-social behaviour/housing law and how practitioners view the changes now that they are in force.

The impact of Covid-19 on customer journeys: implications for interactive marketing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
P.K. Kannan ◽  
Gauri Kulkarni
Keyword(s):  
Design Methodology ◽  
Future Research ◽  
Interactive Marketing ◽  
Content Type ◽  
Product Categories ◽  
The Impact ◽  
Rapid Shift ◽  
The Way

PurposeThe Covid-19 pandemic and the related closures and lockdowns have changed how consumers shop for products and how they consume them. In this paper, the authors focus on how customers' journeys from the awareness stage down to purchase and loyalty stages have been impacted by the pandemic across different product categories and markets and how they affect the same post-pandemic. The authors propose directions for future research based on our analysis.Design/methodology/approachAnalyzing the components of customer utility, the authors provide the basis for the rapid shift towards online and digital touchpoints and the nature of emerging interactions between firms and consumers. The authors highlight those areas where changes could be permanent.FindingsThe authors show why some of the changes due to the Covid-19 pandemic could be permanent and irrevocable and what this implies for firms' strategies to acquire, retain, and grow their business with their customers.Originality/valueThe authors highlight why omnichannel strategies are the way for firms to thrive in the post-pandemic marketplace, and outline areas for future research that will allow researchers to examine how customer journeys will evolve post-pandemic.

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