CFO gender in curbing CEO dominance on overpriced acquisition premiums

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amanda Grossman ◽  
Christine Naaman ◽  
Najib Sahyoun
Keyword(s):  
Design Methodology ◽  
Gender Diversity ◽  
Chief Executive ◽  
Ordinary Least Squares ◽  
Chief Financial Officer ◽  
Business Organizations ◽  
Female Executives ◽  
Content Type ◽  
Acquisition Premium ◽  
Practical Implications

PurposeThe purpose of this study is to evaluate the tempering effect of the presence of a female chief financial officer (CFO) on potentially dominant chief executive officer (CEO) behavior expressed through the overvaluing of acquisition premiums.Design/methodology/approachThis study used Securities Data Corporation (SDC) database data over an eight-year period to analyze the relationships between CEO dominance and the acquisition premiums paid in an acquisition deal. The study also analyzes the effect of CFO gender in curbing CEO dominance in the acquisition deals. The authors employ clustered standard errors ordinary least squares (OLS) regression analysis along with robustness testing, which supports the validity of our conclusions.FindingsThe authors expect and find that as CEO dominance rises, so does the acquisition premium; however, the presence of a female CFO in such situations significantly reduces the overpayment of the acquisition premium.Practical implicationsThe study findings advocate for organizational change in the form of an increased presence of female CFOs within business organizations.Originality/valueThis study contributes to the accounting literature by timely exploiting a rising trend in which female executives are expected to become more prolific. The authors’ research indicates that their entrenchment into business organizations, thereby promoting gender diversity, produces beneficial outcomes for those organizations. It also capitalizes on the specific attributes of the CEO–CFO relationship, which lends itself to particular effectiveness in the hands of female CFOs.

Do females in audit firm governance affect firm performance? Findings from Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Murat Ocak
Keyword(s):  
Firm Performance ◽  
Least Squares ◽  
Design Methodology ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Audit Firm ◽  
Hierarchical Levels ◽  
And Gender ◽  
Practical Implications

Purpose This study aims to contribute to the literature by offering a different sector and emphasising the importance of females in audit firm (AF) governance on audit firm performance (AFP). Design/methodology/approach Ordinary least squares (OLS) and instrument variables regression (IVREG) with two-stage least squares are used to test the paper’s hypotheses. Findings Both OLS and IVREG estimation results show that both the proportion of females and gender diversity at board and owner levels and the total number of shares of female owners seem to enhance the performance of AFs. Practical implications These results may be important for policymakers and regulators to set a quota for women’s representation on AF governance or decide arrangements for women in AFs as in the regulations for the high hierarchical levels of other corporate firms. Originality/value This paper extends the current literature in the context of AFs in Turkey, positing that females in AF governance might enhance performance to a great extent.

Hopes and fears

2015 ◽  
Vol 29 (3) ◽  
pp. 27-29
Keyword(s):  
Design Methodology ◽  
Reading Time ◽  
Business Organizations ◽  
Operating Environment ◽  
Content Type ◽  
Technological Developments ◽  
Pertinent Information ◽  
New Challenges ◽  
The One ◽  
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 – To say it is tough for business organizations today would be a massive understatement. Thanks largely to globalization and technological developments, the operating environment has arguably become more competitive than ever before. Firms thus need to constantly evolve in order to meet the array of new challenges which regularly face them. For those unable to adapt, survival and prosperity may ultimately be elusive. Change has invariably proved to be something of a double-edged sword. On the one hand, it can signal opportunity and prompt excitement and anticipation. But many others see change in terms of threat. 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.

New trends in intellectual capital reporting

2018 ◽  
Vol 19 (4) ◽  
pp. 814-835 ◽  
Author(s):  
Francesca Manes Rossi ◽  
Giuseppe Nicolò ◽  
Paolo Tartaglia Polcini
Keyword(s):  
Intellectual Capital ◽  
Design Methodology ◽  
Information Needs ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
University System ◽  
Content Type ◽  
Explanatory Factors ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to explore a new way to disclose intellectual capital (IC) in universities through their websites. Going beyond traditional tools used for intellectual capital disclosure (ICD), this study aims at identifying possible determinants of ICD via the web. Design/methodology/approach This paper analyses the institutional websites of a sample of Italian universities adapting the theoretical framework developed by Low et al. (2015) to the peculiarities of the Italian university system. Moreover, the relationship between certain explanatory factors identified in previous research and the extent of online ICD represented by two disclosure indexes was tested through an ordinary least squares regression model. Findings The analysis reveals the extensive use of ICD via websites, especially regarding human and internal capital, while the disclosure of external capital through this means is still limited. Internationality and online visibility both positively affect the extent of a university’s ICD. Research limitations/implications The paper represents the first study investigating online ICD and its determinants in universities, contributing new knowledge to help answer the how and what of the matter. Practical implications The results can serve as encouragement to university managers to enhance online ICD to meet the information needs of a wider audience. Originality/value This is the first study to provide evidence about online ICD in universities and to reveal some of the possible determinants to improve this disclosure.

Strategic planning for sustainable performance: the role of firm spirituality

2017 ◽  
Vol 33 (5) ◽  
pp. 26-29
Keyword(s):  
Strategic Planning ◽  
Design Methodology ◽  
Reading Time ◽  
Well Being ◽  
Business Organizations ◽  
Content Type ◽  
Sustainable Performance ◽  
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 Growing pressure from different groups has forced business organizations to reconsider existing strategies of securing a competitive advantage through the exploitation of natural resources. Demands for greater sustainability have forced companies to seek new ways to differentiate their offerings. Firm spirituality is offered as a novel means of increasing sustainability and maximizing the focus on enhancing the well-being of society and the environment. This can be achieved by aligning key spirituality elements with the different stages of strategic planning to position the organization as one with limitless capabilities. 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.

Depositor discipline and the bank ' s incentive to monitor

2014 ◽  
Vol 6 (2) ◽  
pp. 98-111
Author(s):  
Michael F. Ferguson ◽  
Bradley A. Stevenson
Keyword(s):  
Design Methodology ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Bank Loan ◽  
Content Type ◽  
Depositor Discipline ◽  
Study Methodology ◽  
Loan Announcements ◽  
Practical Implications ◽  
Event Study Methodology

Purpose – The aim of this paper is to examine the question of the specialness of banks by addressing concerns raised in the recent studies and deriving policy implications for the future of banking. The specialness of banks has been well documented in the finance literature. More recent research, however, calls into question the special nature of banks. Design/methodology/approach – We use event study methodology to study 423 bank loan announcements from 1988 to 1996 and examine the returns relative to proxies for the bank ' s monitoring incentives and skill using ordinary least squares (OLS) regressions. Findings – Our results indicate borrower abnormal announcement returns are positively related to proxies for the bank ' s monitoring incentives and skill as measured by: the ratio of uninsured deposits to total loans; a risk-adjusted measure of recovered charge-offs; and the relative bank-to-borrower capital ratio. Research limitations/implications – The results reveal how the fragile nature of the bank ' s structure improves the bank ' s incentives to monitor borrowers. Practical implications – Our results can inform the current debates in the Fed and in Congress surrounding reapplying the Glass-Steagall Act and limiting the size of banks. We show that banks were special before the Gramm-Leach-Bliley Act and when fewer banks belonged to the too-big-to-fail category. This suggests that reregulating banks to re-establish their fragile nature will re-establish them as information-generating intermediaries instead of just transactional institutions. Originality/value – Our findings have not previously been documented but are broadly consistent with models developed by Calomiris and Kahn (1991) and especially Diamond and Rajan (2001).

Influence of perceived and effective congruence on recall and purchase intention in sponsored printed sports advertising

2019 ◽  
Vol 20 (4) ◽  
pp. 617-633 ◽  
Author(s):  
Manuel Alonso Dos Santos ◽  
Ferran Calabuig Moreno ◽  
Josep Crespo-Hervás
Keyword(s):  
Visual Attention ◽  
Purchase Intention ◽  
Design Methodology ◽  
Ordinary Least Squares ◽  
Analysis Of Covariance ◽  
Objective Measures ◽  
Full Time ◽  
Content Type ◽  
Brand Recall ◽  
Practical Implications

Purpose The purpose of this paper is to examine the influence of congruence (perceived and effective) and the level of visual attention towards sponsors on recall and purchase intention in sports sponsorship by applying neurophysiological measures. Design/methodology/approach This study is part of neuromarketing research applied to sports. The experiment entails eye tracking with 111 men and 129 women (n=24) with 24 sports posters of three different disciplines (sailing, tennis and F1), varying the congruence, the number of sponsors and the position (2×2×2). The data are analyzed via analysis of covariance and regression using ordinary least squares. Findings Brand recall is influenced by the number of sponsors present on the poster and by the time of fixation. Effective and perceived congruence covariance the purchase intention, but the full time of fixation on the sponsor does not. The latter only, purchase intention indirectly. Practical implications The results enable managers to implement better poster designs and sponsors to have objective measures of sponsorship. Originality/value There are few studies that analyze print media in sponsorship using neurophysiological techniques. This research is a pioneer in considering attention to sports posters to examine recall and purchase intention.

More women on Indian boards: moving beyond mere regulations and tokenism

2016 ◽  
Vol 32 (3) ◽  
pp. 13-15 ◽  
Author(s):  
Atul Arun Pathak ◽  
Anish Purkayastha
Keyword(s):  
Design Methodology ◽  
Reading Time ◽  
Gender Diversity ◽  
Board Members ◽  
Leadership Roles ◽  
Content Type ◽  
Long Run ◽  
Pertinent Information ◽  
The Government ◽  
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 independent writers who add their own impartial comments and place the articles in context. Findings – In patriarchal societies such as India, there is great reluctance to allow women to take up leadership roles. Although the benefits of gender diversity in board composition are understood by organizations, there is limited progress. The government, companies and women who are potential board members all need to coordinate and work together towards solving this issue in the long run. Research limitations/implications – Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Social implications – 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.

Auditors’ response to corporate fraud: evidence from audit fees and auditor turnover

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eugenia Yujin Lee ◽  
Wonsuk Ha
Keyword(s):  
Least Squares ◽  
Design Methodology ◽  
Audit Fees ◽  
Ordinary Least Squares ◽  
Least Squares Estimation ◽  
Regulatory Requirements ◽  
Audit Pricing ◽  
Corporate Fraud ◽  
Content Type ◽  
Practical Implications

Purpose This study aims to examine how auditors respond to the revelation of clients’ corporate fraud. Design/methodology/approach This study uses an ordinary least squares estimation to examine how audit fees and audit turnover change after the revelation of corporate fraud. Findings After a client discloses fraudulent activities, average audit fees significantly increase due to an increase in audit hours, rather than in audit premiums. Both new and continuing auditors increase audit hours for fraud firms, but only new auditors charge higher audit fees for the increased effort. In addition, when auditors are designated by regulators following the revelation of fraud, audit fees and premiums increase, but audit hours do not. Finally, auditor turnover becomes more frequent after the revelation of fraud. Overall, the findings suggest that auditors update their assessment of audit risks after fraud revelation and, thus, adjust their audit pricing and client acceptance decisions. Practical implications The study provides regulators and audit practitioners with insights into how to audit contract characteristics and regulatory intervention (auditor designations) affect auditors’ response to increased audit risks. Originality/value The study contributes to the auditing literature and practice by providing evidence on how auditors respond to the revelation of fraudulent activities and how their response depends on their ability to determine audit fees. Moreover, we provide novel evidence that audit contracting characteristics and regulatory requirements result in different responses of auditors toward changes in audit risks.

scholarly journals The CEO-Chair relationship from a relational leadership perspective

2016 ◽  
Vol 37 (8) ◽  
pp. 1135-1146 ◽  
Author(s):  
Satu Koskinen ◽  
Lämsä Anna-Maija
Keyword(s):  
Leadership Practices ◽  
Design Methodology ◽  
Empirical Investigation ◽  
Chief Executive ◽  
Relational Leadership ◽  
Content Type ◽  
Prior Literature ◽  
The Relationship ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to conceptualise how the chief executive officer (CEO) and chairperson of the board (Chair) construct their relationship through their leadership practices, and to analyse the meaning of these practices to the relationship. An empirical investigation from both partners’ viewpoint is conducted. Design/methodology/approach The data were gathered through in-depth interviews with 16 CEOs and 16 chairpersons from the same companies. Content analysis was used to analyse the data. Findings Four types of leadership practices in the CEO-Chair relationship were conceptualised: emergent practices on company- and person-related issues, and scheduled practices on company- and person-related issues. For the effectiveness of the relationship, emergent practices on company-related issues seem to be most important. Research limitations/implications The basing of the analysis on interviewees’ descriptions rather than on the observation of leadership practices in action can be considered a limitation. Practical implications Knowledge of leadership practices in the CEO-Chair relationship and their meaning to the relationship can be utilised in leadership training. Originality/value This research contributes to the relational leadership literature by highlighting a specific leadership relationship, the CEO-Chair relationship, from both partners’ viewpoint. Additionally, the value of the study is that it shows that the CEO-Chair relationship is more multifaceted than traditionally assumed in prior literature.

Do organisations in developing economies legitimise their level of profit? Evidence from Fiji

2016 ◽  
Vol 29 (1) ◽  
pp. 59-80 ◽  
Author(s):  
Acklesh Prasad ◽  
Peter Green ◽  
Jon Heales
Keyword(s):  
Social Contract ◽  
Chief Executive Officer ◽  
Design Methodology ◽  
Developing Economies ◽  
Chief Executive ◽  
Annual Reports ◽  
Public Enterprises ◽  
Content Type ◽  
Practical Implications ◽  
Corporate Annual Reports

Purpose This paper aims to investigate whether organisations in developing economies legitimise their level of profit. Design/methodology/approach Organisations’ level of profit is evaluated against the readability of sections of information available in the corporate annual reports. These sections include the Chairman’s Report, the Chief Executive Officer Report and the Notes to the Accounts. Findings More profitable organisations report more readable information in their corporate annual reports. Information in the non-mandatory sections of the report (Notes to the Accounts) is more readable compared to the information in the mandatory sections of the report (Chairman’s Report). Larger organisations report more readable information. Public Enterprises report more readable information compared to the Publicly Listed Companies. Research limitations/implications Organisations in the developing economies are aware of their role in their society. They respond to instances of possible violation of the implied social contract by sharing information in ways that relays news in certain ways. Practical implications Evidence of presence of legitimising activities by organisations would imply the need to strengthen the regulatory and monitoring guidelines to ensure efficient use of society’s resources and a fair rent charge for the utilities. Social implications There is a greater need to monitor and question organisations’ level of earned profit to ensure it is necessary to maintain their operations. Originality/value This study is the first attempt to investigate organisations’ immediate legitimising activities in relation to their reported profit.

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