EXPRESS: How and when does top management team regulatory focus influence firm environmental misconduct?

2021 ◽  
pp. 001872672199753
Author(s):  
Zhe Zhang ◽  
Mijia Gong ◽  
Ming Jia
Keyword(s):  
Regulatory Focus ◽  
Top Management Team ◽  
Negative Relationship ◽  
Regulatory Fit ◽  
Management Team ◽  
Top Management ◽  
Environmental Dynamism ◽  
Prevention Focus ◽  
Promotion Focus ◽  
Listed Firms

Does top management team (TMT) regulatory focus impact firm environmental misconduct (FEM)? If so, how and when? Integrating upper echelon theory with regulatory focus theory, we examine how regulatory focus, as one of the most direct and important psychological characteristics of TMT, impacts FEM. Additionally, we explore how this relationship is moderated by external and internal environmental dynamism from the perspective of regulatory fit. Based on a sample of Chinese listed firms from 2011 to 2017, we conduct computer-aided content analysis to quantify TMT regulatory focus. Results show that TMTs high in promotion focus are more likely to engage in FEM, whereas TMTs high in prevention focus are less likely to misconduct. Moreover, external environmental dynamism strengthens (weakens) the positive (negative) relationship between promotion (prevention) focus and FEM. Internal environmental dynamism strengthens the positive relationship between TMT promotion focus and FEM. By examining this motivation-based psychological characteristic of TMT, the findings suggest the need to consider TMT regulatory focus when analyzing the antecedents of FEM.

Top management team heterogeneity, corporate social responsibility and firm risk: an emerging country perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Hassan Shakil ◽  
Nor Shaipah Abdul Wahab
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Total Risk ◽  
Firm Risk ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Social

Purpose This study aims to examine the effects of top management team (TMT) heterogeneity and corporate social responsibility (CSR) on the firm risk of Bursa Malaysia listed firms. Also, this study examines the moderating effect of CSR between TMT heterogeneity and firm risk. Design/methodology/approach This study uses panel regression models to test the hypotheses. The sample of this study is Bursa Malaysia non-financial listed firms from 2013 to 2017 with 3,055 observations. Findings This study finds significant effects of TMT age and tenure heterogeneities on total risk. Effects on idiosyncratic risk are evident only within age heterogeneity. Further, this study finds negative effects of CSR on total and idiosyncratic risks. CSR significantly moderates the relationship between total TMT heterogeneity and firm systematic risk. Practical implications This study reduces the literature gap by providing useful insights on the effects of CSR activities and TMT heterogeneity on firm risk. The findings can also provide hints to investors to assist them in assessing firm risk based on TMT heterogeneity and firms’ CSR. This study can also benefit shareholders in their attempts to mitigate the risk of their portfolio by investing in firms that are socially responsible as firms with high CSR suffer lower total and idiosyncratic risks. Originality/value Previous studies have emphasised on the influence of TMT characteristics and CSR on firm performance. However, studies that investigate the effects of TMT heterogeneity and CSR on firm risk are limited in the context of Malaysia.

Do Interaction and Education Moderate Top Management Team Age Heterogeneity and Corporate Social Responsibility?

2018 ◽  
Vol 46 (12) ◽  
pp. 2063-2079 ◽  
Author(s):  
Yawei Liu ◽  
M. Awais Gulzar ◽  
Zhaoguo Zhang ◽  
Qingxiang Yang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Listed Firms ◽  
Upper Echelons Theory ◽  
Csr Strategy ◽  
Corporate Social ◽  
The Relationship

Using Chinese listed firms' data from 2008 to 2012, we explored, on the basis of upper echelons theory, whether and how top management team (TMT) age heterogeneity affects corporate social responsibility (CSR) and if TMT interaction and TMT education moderate this relationship. Results revealed an inverted U-shaped relationship between TMT age heterogeneity and CSR, in which TMT interaction played a moderating role; however, TMT education did not moderate the relationship. These results are helpful and significant for the understanding of CSR strategy, and for the improvement of human resource management.

scholarly journals NCENTIVE EFFECT OF PAY GAP IN TOP MANAGEMENT TEAM UNDER DIFFERENT PROMOTION OPPORTUNITIES

2021 ◽  
Author(s):  
HAIFAN LU
Keyword(s):  
Panel Data ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Company Performance ◽  
Improve Performance ◽  
Pay Gap ◽  
Listed Firms ◽  
A Share

Abstract. This paper makes a research on the effect of pay gap in top management team on company performance under different promotion opportunities of managers by using panel data of Chinese A share listed firms during 2015-2019. The results show that when managers have less opportunities to be promoted, the pay gap in top management team is lager. But lager pay gap will not always improve performance.

Top management team (TMT) tenure diversity and firm performance

2016 ◽  
Vol 24 (3) ◽  
pp. 454-470 ◽  
Author(s):  
Tomohiko Tanikawa ◽  
Yuhee Jung
Keyword(s):  
Firm Performance ◽  
Top Management Team ◽  
Negative Relationship ◽  
Management Team ◽  
Hierarchical Regression ◽  
Top Management ◽  
Content Type ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Age Related

Purpose The purpose of this paper is twofold: first, to investigate the effect of top management team (TMT) tenure diversity and firm financial performance (return on equity [ROE], return on assets [ROA]), and, second, to examine the moderating effect of TMT average age between TMT tenure diversity and firm performance. Design/methodology/approach The paper presented results from a quantitative study of 744 TMTs in Japanese manufacturing firms. The multiple hierarchical regression analysis was used to test the hypotheses. Findings The results show that TMT tenure diversity had a negative and significant main effect on ROE but not ROA. Furthermore, the results also indicated that the negative relationship between TMT tenure diversity and firm performance was attenuated by having older TMTs. Originality/value First, this paper expands scope of research on TMT diversity, which has hitherto primarily on non-individualistic variables (such as industry setting) by examining the moderating role of an individualistic variable (TMT average age). Second, this paper extended the attempts to apply the age-related theory by considering the role from the viewpoint of group level, namely, TMT average age.

scholarly journals Firm-size elasticity of top management team compensation in Saudi Arabian listed firms

2016 ◽  
Vol 14 (1) ◽  
pp. 656-662
Author(s):  
Lakshmi Kalyanaraman ◽  
Basmah Altuwaijri
Keyword(s):  
Firm Size ◽  
Family Firms ◽  
Top Management Team ◽  
Market Value ◽  
Saudi Arabian ◽  
Management Team ◽  
Top Management ◽  
Listed Firms ◽  
Size Measure ◽  
Compensation Relationship

We evaluate the firm-size elasticity of top management team (TMT) compensation with a sample of 80 firms listed in Saudi Arabian stock market. We find that the TMT compensation increases with firm size. The results are found to be robust when the total assets as the firm size measure is altered with other proxies, sales and market value of the firm. We show that the firm size and TMT compensation relationship is same as in the case of all firms sample when the firms are grouped into family firms and nonfamily firms. This finding is in line with the results of the previous studies that analyze the link between CEO compensation and firm size. We conclude that the large firms are willing to pay high compensation not just to their CEOs but also to the entire team at the top

scholarly journals Reviewing Regulatory Focus Based on Four Regulatory Forms

2017 ◽  
Vol 21 (4) ◽  
pp. 354-371 ◽  
Author(s):  
Yu-Shan Athena Chen ◽  
Lien-Ti Bei
Keyword(s):  
Regulatory Focus ◽  
Active Avoidance ◽  
Goal Pursuit ◽  
Regulatory Fit ◽  
Effect Sizes ◽  
Weak Effect ◽  
Prevention Focus ◽  
Promotion Focus ◽  
Goal Maintenance ◽  
Meta Analyses

This study employs the four regulatory forms (goal pursuit, goal maintenance, negative escape, and active avoidance) to illuminate the heterogeneousness among regulatory focus measurements and activations. The first two studies consistently found that promotion focus involves goal pursuit orientation; however, prevention focus encompasses a goal maintenance and a negative escape orientation. The regulatory forms were then applied to regulatory fit research to investigate how the matches of regulatory forms determine the effect sizes of regulatory fit. By meta-analyses, the weak effect in one third of regulatory fit studies, whose regulatory forms were mismatched or partially matched, decreased the overall fit effect and increased the heterogeneousness among regulatory fit studies. However, a strong and consistent regulatory fit effect was found in well-matched of regulatory forms. By examining and extending regulatory forms to measurement, activation, and regulatory fit studies, this paper offers further understanding of the mechanisms of regulatory focus.

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