Negative performance feedback, CEO tenure, and punctuated equilibrium innovation

Hostile takeover attempts are considered a key external governance mechanism aimed at addressing perceived managerial underperformance in a target firm. Studies show that target chief executive officers (CEOs) are usually dismissed shortly after a takeover attempt, regardless of whether the bidder actually completes the acquisition. Yet, little is known about the investment behaviors of target CEOs who actually retain their positions in the wake of an unsuccessful hostile takeover attempt. Engaging with this underexplored governance context, we advance a behaviorally informed model of CEO investment behaviors in response to external governance as a function of the negative performance feedback event of the takeover attempt and the timing of the market’s attempt in terms of the stage of the target CEO’s tenure. Based on a matched-pair study of 71 failed takeover attempts from 1995 to 2006, we find evidence of a nonlinear relation between target CEO tenure and degree of uncertainty of expected returns in subsequent strategic investments in the wake of a failed hostile takeover attempt. We discuss the implications for research on external governance, behavioral agency, and executives’ influences on firm processes and outcomes.

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I Like Myself, I Really Do (at Least Right Now)

European Journal of Psychological Assessment ◽

10.1027/1015-5759/a000501 ◽

2020 ◽

Vol 36 (1) ◽

pp. 196-206 ◽

Cited By ~ 1

Author(s):

Almut Rudolph ◽

Michela Schröder-Abé ◽

Astrid Schütz

Keyword(s):

Construct Validity ◽

Performance Feedback ◽

Repeated Measures ◽

Temporal Stability ◽

Social Feedback ◽

Student Sample ◽

Empirically Supported ◽

Good Internal Consistency ◽

And Performance ◽

Induced Changes

Abstract. In five studies, we evaluated the psychometric properties of a revised German version of the State Self-Esteem Scale (SSES; Heatherton & Polivy, 1991 ). In Study 1, the results of a confirmatory factor analysis on the original scale revealed poor model fit and poor construct validity in a student sample that resembled those in the literature; thus, a revised 15-item version was developed (i.e., the SSES-R) and thoroughly validated. Study 2 showed a valid three-factor structure (Performance, Social, and Appearance) and good internal consistency of the SSES-R. Correlations between subscales of trait and state SE empirically supported the scale’s construct validity. Temporal stability and intrapersonal sensitivity of the scale to naturally occurring events were investigated in Study 3. Intrapersonal sensitivity of the scale to experimentally induced changes in state SE was uncovered in Study 4 via social feedback (acceptance vs. rejection) and performance feedback (positive vs. negative). In Study 5, the scale’s interpersonal sensitivity was confirmed by comparing depressed and healthy individuals. Finally, the usefulness of the SSES-R was demonstrated by assessing SE instability as calculated from repeated measures of state SE.

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The Influence of Cognitive and Affective Reactions to Feedback on Subsequent Goals

European Psychologist ◽

10.1027/1016-9040/a000011 ◽

2010 ◽

Vol 15 (2) ◽

pp. 121-131 ◽

Cited By ~ 20

Author(s):

Remus Ilies ◽

Timothy A. Judge ◽

David T. Wagner

Keyword(s):

Performance Feedback ◽

Business School ◽

Structural Equation ◽

Emotional Reactions ◽

Equation Model ◽

Proposed Model ◽

And Performance ◽

Dispositional Measure ◽

The Relationship ◽

Reactions To Feedback

This paper focuses on explaining how individuals set goals on multiple performance episodes, in the context of performance feedback comparing their performance on each episode with their respective goal. The proposed model was tested through a longitudinal study of 493 university students’ actual goals and performance on business school exams. Results of a structural equation model supported the proposed conceptual model in which self-efficacy and emotional reactions to feedback mediate the relationship between feedback and subsequent goals. In addition, as expected, participants’ standing on a dispositional measure of behavioral inhibition influenced the strength of their emotional reactions to negative feedback.

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