How analyst recommendation change influences strategic change

2018 ◽  
Vol 31 (6) ◽  
pp. 1234-1248
Author(s):  
Wan Jiang ◽  
Linlin Wang ◽  
Zhaofang Chu ◽  
Xifang Ma
Keyword(s):  
Corporate Governance ◽  
Institutional Theory ◽  
Design Methodology ◽  
Strategic Change ◽  
Ceo Power ◽  
Content Type ◽  
External Assessment ◽  
Analyst Recommendation ◽  
The Relationship

Purpose The purpose of this paper is to examine how analyst recommendation change is associated with a firm’s magnitude of strategic change. Design/methodology/approach This study argues that unfavorable analyst recommendation change serves as a powerful external assessment that current strategies are inappropriate and that changes are needed. This study also incorporates the moderating roles of CEO power and board’s informal hierarchy in the relationship between analyst recommendation change and firm’s magnitude of strategic change. Results from a sample of 824 observations generally support our predictions. Findings The findings of this study show that the greater the analysts downgrade for the company’s stock, the larger the magnitude of strategic change will be made. This study also considers the moderating roles of CEO power and the clarity of board’s informal hierarchy. In particular, the higher the CEO power, the weaker the relationship between analyst recommendation change and the magnitude of strategic change will be. The higher the clarity of board’s informal hierarchy, the more positive the relationship between analyst recommendation change and the magnitude of strategic change will be. Originality/value It extends research on the external predictors of strategic change by incorporating the role of unfavorable analyst recommendation change. In addition, it contributes to institutional theory by showing how external legitimacy pressure and internal corporate governance tool complement each other.

scholarly journals Corporate governance and earnings conservatism in Malaysia

2016 ◽  
Vol 29 (4) ◽  
pp. 391-412 ◽  
Author(s):  
Marziana Madah Marzuki ◽  
Effiezal Aswadi Abdul Wahab ◽  
Hasnah Haron
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Design Methodology ◽  
Content Type ◽  
The Third ◽  
Financial Expertise ◽  
Two Measures ◽  
The Relationship

Purpose This paper aims to investigate whether the revised Malaysian Code on Corporate Governance in 2007 enhances earnings conservatism. In addition, the authors examine the relationship between board of directors’ expertise and conservatism. The third objective is to investigate the relationship between audit committee characteristics and earnings conservatism. Design/methodology/approach The sample of this study is based on 3,183 firm-year observations for a period of 2004-2009. The authors hand collected the corporate governance variables, whereas the remaining data were extracted from Compustat Global. The authors used two measures of conservatism. The first is the market-based model by Basu’s (1997), and the second measure is the accrual-based measure by Ball and Shivakumar (2005). Findings The authors find that the revision of Malaysian Code on Corporate Governance 2007 results in improving earnings conservatism. The authors find two audit committee characteristics, namely, audit committee financial expertise and independence increase earnings conservatism, after 2007. However, the authors could not find support whether board financial expertise mix affect conservatism. Research limitations/implications This study did not consider other possible corporate governance variables that could influence earnings conservatism, as it would be a difficult task to gather them. Originality/value The authors provide evidence on the role of corporate governance and earnings conservatism in Malaysia.

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.

Managing different forms of distances in Dutch healthcare organizations

2015 ◽  
Vol 29 (7) ◽  
pp. 1080-1097
Author(s):  
Annemiek Stoopendaal
Keyword(s):  
Design Methodology ◽  
Healthcare Organization ◽  
Ethnographic Study ◽  
Healthcare Organizations ◽  
Content Type ◽  
Daily Work ◽  
Healthcare Executives ◽  
Governance Practices ◽  
The Relationship

Purpose – Dichotomous “gap” thinking about professionals and managers has important limits. The purpose of this paper is to study the specific ontology of “the gap” in which different forms of distances are defined. Design/methodology/approach – In order to deepen the knowledge of the actual day-to-day tasks of Dutch healthcare executives an ethnographic study of the daily work of Dutch healthcare executives and an ontological exploration of the concept “gap” was provided. The study empirically investigates the meaning given to the concept of “distance” in healthcare governance practices. Findings – The study reveals that healthcare executives have to fulfil a dual role of maintaining distance and creating proximity. Coping with different forms of distances seems to be an integral part of their work. They make use of four potential mechanisms to cope with distance in their healthcare organization practices. Originality/value – The relationship between managers and professionals is often defined as a dichotomous gap. The findings in this research suggest a more dynamic picture of the relationship between managers and professionals than is currently present in literature. This study moves “beyond” the gap and investigates processes of distancing in-depth.

scholarly journals Expatriates’ withdrawal intentions

2017 ◽  
Vol 46 (8) ◽  
pp. 1852-1869 ◽  
Author(s):  
Luisa Helena Pinto ◽  
Carlos Cabral Cardoso ◽  
William B. Werther Jr
Keyword(s):  
Organizational Culture ◽  
Goal Orientation ◽  
Design Methodology ◽  
Negative Influence ◽  
Content Type ◽  
Mediating Role ◽  
Business Goals ◽  
Culture Characteristics ◽  
The Relationship

Purpose The purpose of this paper is to examine the role of perceived home and destination organizational culture characteristics and general satisfaction with the assignment as antecedents of expatriates’ withdrawal intentions. Design/methodology/approach Data were collected through a web survey of an international sample of expatriates with a broad representation of industries, organizations and countries of origin and destination. Findings The results indicate that home and destination organizational cultures affect expatriates’ withdrawal intentions, after controlling for demographics and national cultural differences, namely: home organizational culture has a stronger influence on withdrawal intentions from the organization, while host organizational culture affects withdrawal intentions from the assignment. Further, the relationship between host organizational culture and expatriates’ intentions to withdraw from the assignment is mediated by expatriates’ satisfaction with the assignment. Evidence was also found supporting a stronger and negative influence of the goal orientation dimension of organizational culture, thus suggesting that a collective orientation toward common business goals (i.e. solidarity) may help retain expatriates. Originality/value This study seeks to fill a gap in the literature by exploring the influence of organizational culture on expatriates’ withdrawal intentions, and the mediating role of expatriates’ satisfaction with the assignment, on that relationship.

Relationship between corporate governance and audit switching: Iranian evidence

2017 ◽  
Vol 59 (5) ◽  
pp. 673-686
Author(s):  
Mahdi Salehi ◽  
Ali Asgar Alinya
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Stock Exchange ◽  
Listed Companies ◽  
Panel Analysis ◽  
Cross Sectional ◽  
Content Type ◽  
Effective Factors ◽  
Dependent Variables ◽  
The Relationship

Purpose This paper aims to investigate the relationship between corporate governance and auditors switching of listed companies on the Tehran Stock Exchange. Design/methodology/approach To achieve the objectives of this study, 12 hypotheses developed which and tests the relationship between corporate governance and selecting and switching auditors in Iran during 2008-20014 by selecting 116 listed companies on the Tehran Stock Exchange. To test the hypotheses, the cross-sectional time-series nature of research variables data, panel analysis is used. Also, to investigate the relationship between independent and dependent variables in each year, the logistic regression is used. Findings The results of the study indicate that there is a weak relationship between corporate governance auditors switching. Therefore, it could be concluded that there are some other effective factors on which selecting and switching auditors in studied companies are more dependent. Originality/value The current study is almost the first study which has been conducted in Iran, so the results of the study may be beneficial to the Iranian conditions as well as other developing countries.

The effectiveness of e-corporate governance: an exploratory study of internet voting at shareholders’ annual meetings in France

2020 ◽  
Vol 20 (4) ◽  
pp. 673-702
Author(s):  
Sonia Abdennadher ◽  
Walid Cheffi
Keyword(s):  
Corporate Governance ◽  
Practical Implementation ◽  
Business Law ◽  
Content Type ◽  
Internet Voting ◽  
Documentary Analysis ◽  
Governance Effectiveness ◽  
Voting System ◽  
The Relationship

Purpose E-corporate governance or the use of technologies and information systems (ISs) in corporate governance, is still a subject that is too seldom addressed in business research. This paper is at the intersection between two fields of research (corporate governance and the management of ISs), which are interdependent in ways that are still unexplored. The paper analyzes the implications of internet voting (IV) at shareholders’ annual meetings (SAM) for the corporate governance of listed companies in France, in particular for the relationship between executives and shareholders. Most of the studies that have dealt with IV at SAM have focused on techno-legal issues and were often conducted by business law researchers. The purpose of this paper is to investigate the implications of the new voting system through the prism of corporate governance. Design/methodology/approach The authors proceeded by triangulation of methods. This qualitative study is based on observations, interviews and documentary analysis. It assessed the IV implications for both the issuing companies and the shareholders. Findings The new voting system brings undeniable competitive advantage to the issuing company and facilitates shareholders’ activism, yet it has serious risks both for the corporations and for certain categories of the shareholder. Interestingly, the authors propose an original and field-grounded typology that distinguishes the risks and benefits associated with IV in relation to executives’ attitudes. Social implications The paper shows that the resolving of identified deficiencies with IV development could contribute to the alignment of companies’ interests with those of shareholders. Moreover, the study calls for policymakers to appoint an official body to regulate the practical implementation of the new system and to prevent its dissemination being held hostage to the executives’ willingness. Originality/value An original aspect of this research lies in the effective operationalization of the constructs of corporate governance effectiveness with a view to examining corporate governance as a set of technologically mediated practices. Moreover, this study emphasizes the key role of the construct of “executives’ willingness” in facilitating/impeding IV diffusion. This underlies their attempts to reverse the corporate governance relationship.

scholarly journals Can compensation committees effectively mitigate the CEO horizon problem? The role of co-opted directors

2020 ◽  
Vol 34 (1) ◽  
pp. 1-21
Author(s):  
Ruonan Liu
Keyword(s):  
Corporate Governance ◽  
Research And Development ◽  
Empirical Evidence ◽  
Design Methodology ◽  
Ceo Compensation ◽  
Content Type ◽  
Horizon Problem ◽  
Accruals Management ◽  
Compensation Committees

Purpose This study aims to examine whether compensation committees dominated by co-opted directors are less effective in mitigating the CEO horizon problem. Design/methodology/approach The author uses a sample of 7,280 firm-year observations from 1998 to 2011. Findings In this study, the author finds evidence of opportunistic research and development (R&D) reduction and accruals management in firms with retiring CEOs and compensation committees dominated by co-opted directors. Moreover, it is found that R&D reduction and income-increasing accruals are less discouraged when determining the compensation for retiring CEOs by compensation committees that are dominated by co-opted directors. The results suggest that compensation committees dominated by co-opted directors are less effective in adjusting CEO compensation to mitigate the CEO horizon problem. Originality/value The study reveals that co-opted directors are weak monitors. Moreover, the study adds empirical evidence to the debate of organizations’ CEO horizon problem. Finally, the study adds to the literature on corporate governance, revealing that compensation committees play an important role in mitigating an organization’s CEO horizon problem by adjusting CEO compensation.

Mindfulness, indigenous knowledge, indigenous innovations and entrepreneurship

2014 ◽  
Vol 16 (1) ◽  
pp. 63-83 ◽  
Author(s):  
Celine Capel
Keyword(s):  
Indigenous Knowledge ◽  
Design Methodology ◽  
Indigenous Communities ◽  
Content Type ◽  
Indigenous Innovation ◽  
New Business ◽  
The Relationship ◽  
Indigenous Innovations ◽  
New Entry

Purpose – This paper aims to highlight the role of mindfulness in the development of indigenous knowledge (IK), indigenous innovations and entrepreneurship or new entry. Design/methodology/approach – Through an extensive analysis of extant mindfulness and indigenous entrepreneurship literatures, the paper argues for the facilitating role of individual mindfulness in IK, indigenous innovations and entrepreneurship and generates several propositions as a result. Findings – The paper argues that mindfulness encourages the appreciation of other forms of knowledge and practices distinct from the more prevalent Western forms, and by so doing, promotes indigenous innovation and indigenous entrepreneurship (or indigenous new entry or new business venture). Research limitations/implications – It is reasoned that indigenous communities around the world have rich experiences and accumulated knowledge that have enabled them develop explanations of their environments and economic development and sustainability, and by recognizing and valuing such knowledge and experiences, mindfulness facilitates innovations and entrepreneurship. Social implications – The facilitating role of IK in developing indigenous innovations and indigenous entrepreneurship is clearly evident, at least in indigenous societies; however, researchers are yet to recognise and explore this dynamics as deserved. Mindfulness not only opens up the mindset of researchers to further explore this phenomenon but also helps society to recognise the contributions and value of IK. Originality/value – This work is a pioneer in the effort to integrate mindfulness concept into the indigenous entrepreneurship research. By using mindfulness lens to view the relationship between IK, indigenous innovations and entrepreneurship, the study locates mindfulness as both antecedent to and moderator of these relationships.

How corporate governance structures affect strategic change decisions

2018 ◽  
Vol 34 (4) ◽  
pp. 4-6
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Reading Time ◽  
Strategic Change ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Governance Structures ◽  
Content Type ◽  
Pertinent Information ◽  
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 Major acquisitions involve strategic decision-making of the highest order. Companies most inclined toward such acquisitions tend to exhibit particular corporate governance structures. The CEO is invariably highly influential and this influence is strengthened by board and committee compositions which impact on levels of internal monitoring. 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.

The role of salesperson brand selling confidence in enhancing important sales management outcomes: a social identity approach

2018 ◽  
Vol 33 (3) ◽  
pp. 277-290 ◽  
Author(s):  
Bashar S. Gammoh ◽  
Michael L. Mallin ◽  
Ellen Bolman Pullins ◽  
Catherine M. Johnson
Keyword(s):  
Job Satisfaction ◽  
Cross Section ◽  
Design Methodology ◽  
Sales Management ◽  
Measurement Model ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Social Identity Approach

Purpose The purpose of the study is to address the gap in understanding how the brand influences sales outcomes by focusing one’s attention on the salesperson perceptions of the brand and the salesperson brand selling confidence. Design/methodology/approach The study uses a cross-section survey of professional salespeople. SmartPLS was used to estimate the measurement model and test the hypothesized path relationships. Findings The study’s results indicate that salespeople who believe in the strength of the brands they represent are more likely to identify with the brand, are more confident in selling the brand and, overall, tend to perform better, have higher job satisfaction and are more committed to their companies. Originality/value This paper contributes to the sales literature by further exploring the relationship between the brand and sales function in the firm. This area has recently received academic attention but has not yet considered the mediating processes that connect the two areas. This study identifies perceptions of brand strength and brand selling confidence as mechanisms that mediate the impact of brand on sales outcomes.

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