scholarly journals Do New Brooms Sweep Clean? Evidence that New CEOs Take a ‘Big Bath’ in the Banking Industry

2019 ◽  
Vol 18 (1) ◽  
pp. 106-144
Author(s):  
Chung-Hua Shen ◽  
Chien-An Wang
Keyword(s):  
Mergers And Acquisitions ◽  
Chief Executive Officers ◽  
Banking Industry ◽  
Chief Executive ◽  
Jel Classification ◽  
Big Bath ◽  
Asset Quality ◽  
Executive Officers ◽  
Loan Losses ◽  
Privately Owned

This study investigates whether significant changes exist in providing loan losses and loan charge-offs during turnovers of chief executive officers (CEOs). Providing loan losses is referred to as a ‘big bath in earnings’, and providing loan charge-offs is referred to as a ‘big bath in asset quality’. We classify CEO turnovers into three types, namely, forced and voluntary CEO turnovers in privately owned banks (POB), turnovers in government-owned banks (GOB) and turnovers as outcomes of mergers and acquisitions (M&As). Using findings based on the data of Taiwanese commercial banks, we demonstrate that the forcibly appointed CEOs exhibit big baths in earnings and asset quality, whereas the voluntarily appointed CEOs exhibit a big bath in earnings but not in asset quality. Compared with the CEO turnover in a POB, the appointed CEO in a GOB shows no big bath in either earnings or asset quality. Moreover, turnovers resulting from M&As do not induce big baths. JEL Classification: C23, G21, G28, M41, M48

scholarly journals FortuneFavors the Bold

2017 ◽  
Vol 52 (3) ◽  
pp. 895-925 ◽  
Author(s):  
Costanza Meneghetti ◽  
Ryan Williams
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Chief Executive Officers ◽  
Market Reaction ◽  
Chief Executive ◽  
Exogenous Shock ◽  
Stock Market Reaction ◽  
Corporate Decisions ◽  
Executive Officers

We investigate whether incentives to join theFortune500 affect corporate decisions. Firms closer to the cutoff appear to take actions to join the list by engaging in more mergers and acquisitions activity, bidding for larger targets, and paying higher takeover premia. Further, the relation is stronger for firms with more-entrenched chief executive officers, and the stock market reaction to bids is worse when bidders are close to theFortune500’s cutoff. A 1994 methodological change byFortuneacts as an exogenous shock for identification. Our results suggest that firms try to increase revenues to join theFortune500 but that such actions adversely affect shareholders.

Searching in the regulatory environment: The impact of regulatory search on firm innovativeness

2019 ◽  
Vol 45 (1) ◽  
pp. 153-171
Author(s):  
Lu Jiao ◽  
Kevin Baird ◽  
Graeme Harrison
Keyword(s):  
Survey Data ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Jel Classification ◽  
Regulatory Environment ◽  
Private Firms ◽  
Firm Innovativeness ◽  
Direct Association ◽  
Executive Officers ◽  
The Impact

This article examines the effect of regulatory search on firm innovativeness using survey data from Chief Executive Officers (CEOs) of Australian listed and private firms. We used a self-developed scale to measure regulatory search, which consists of both reactive and proactive regulatory search. The results show that only reactive regulatory search exhibits a positive and direct association with firm innovativeness. However, the results suggest that slack moderates the relations between the two regulatory search factors and innovativeness in different ways. Specifically, under a high (low) slack environment, reactive regulatory search is negatively (positively) related to innovativeness, while, under a high (low) slack environment, proactive regulatory search is positively (negatively) related to innovativeness. JEL Classification: L51, O31

CEO Characteristics Enhancing the Impact of CEO Overconfidence on Firm Value After Mergers and Acquisitions — A Case Study in China

2020 ◽  
Vol 23 (01) ◽  
pp. 2050003 ◽  
Author(s):  
Chia-Hsien Tang ◽  
Yen-Hsien Lee ◽  
Ming-Chih Lee ◽  
Ya-Ling Huang
Keyword(s):  
Mergers And Acquisitions ◽  
Chief Executive Officers ◽  
Firm Value ◽  
Positive Impact ◽  
Chief Executive ◽  
Female Ceos ◽  
Executive Officers ◽  
The Impact ◽  
Ceo Characteristics

This study aims to explore whether various characteristics of chief executive officers (CEO) enhance the impact of CEO overconfidence on a firm’s value after mergers and acquisitions. The study finds that overconfident CEOs have a positive impact on firm value after mergers and acquisitions. The study also shows that overconfidence amongst CEOs can help to explain merger and acquisition decisions and the likelihood of pursuing acquisitions. Young CEOs were also found to significantly increase the impact of CEO overconfidence on a firm’s value after mergers and acquisitions, while female CEOs were found to be more risk averse when compared to their male peers, with lower leverage and less volatility in their firms when compared to firms run by male CEOs.

Effect of leadership styles on organizational commitment and performance in small- and medium-sized enterprises in Iraqi Kurdistan

2020 ◽  
Vol 48 (9) ◽  
pp. 1-12
Author(s):  
Karwan Hamasalih Qadir ◽  
Mehmet Yeşiltaş
Keyword(s):  
Organizational Commitment ◽  
Organizational Performance ◽  
Leadership Styles ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Mediating Effect ◽  
Positive Effects ◽  
Iraqi Kurdistan ◽  
And Performance ◽  
Executive Officers

Since 2003 the number of small- and medium-sized enterprises (SMEs) has increased exponentially in Iraqi Kurdistan. To facilitate further growth the owners and chief executive officers of these enterprises have sought to improve their leadership skills. This study examined the effect of transactional and transformational leadership styles on organizational commitment and performance in Iraqi Kurdistan SMEs, and the mediating effect of organizational commitment in these relationships. We distributed 530 questionnaires and collected 400 valid responses (75% response rate) from 115 SME owners/chief executive officers and 285 employees. The results demonstrate there were positive effects of both types of leadership style on organizational performance. Further, the significant mediating effect of organizational commitment in both relationships shows the importance of this variable for leader effectiveness among entrepreneurs in Iraqi Kurdistan, and foreign entrepreneurs engaging in new businesses in the region.

scholarly journals Toward a Working Model of Leadership in Nonprofit Sport Governance

2019 ◽  
Vol 33 (3) ◽  
pp. 189-202 ◽  
Author(s):  
Ian O’Boyle ◽  
David Shilbury ◽  
Lesley Ferkins
Keyword(s):  
Chief Executive Officers ◽  
Leadership Skills ◽  
Chief Executive ◽  
Future Research ◽  
Limited Attention ◽  
Study Approach ◽  
Working Model ◽  
Executive Officers ◽  
Scholarly Discourse

The aim of this study is to explore leadership within nonprofit sport governance. As an outcome, the authors present a preliminary working model of leadership in nonprofit sport governance based on existing literature and our new empirical evidence. Leadership in nonprofit sport governance has received limited attention to date in scholarly discourse. The authors adopt a case study approach involving three organizations and 16 participant interviews from board members and Chief Executive Officers within the golf network in Australia to uncover key leadership issues in this domain. Interviews were analyzed using an interpretive process, and a thematic structure relating to leadership in the nonprofit sport governance context was developed. Leadership ambiguity, distribution of leadership, leadership skills and development, and leadership and volunteerism emerged as the key themes in the research. These themes, combined with existing literature, are integrated into a preliminary working model of leadership in nonprofit sport governance that helps to shape the issues and challenges embedded within this emerging area of inquiry. The authors offer a number of suggestions for future research to refine, test, critique, and elaborate on our proposed working model.

In retrospect: The influence of chief executive officers’ historical relative pay on overconfidence

2021 ◽  
pp. 147612702110048
Author(s):  
J Daniel Zyung ◽  
Wei Shi
Keyword(s):  
Chief Executive Officers ◽  
Empirical Support ◽  
Chief Executive ◽  
Firm Level ◽  
Self Confidence ◽  
Self Worth ◽  
Executive Officers ◽  
Leadership Research ◽  
The Relationship

This study proposes that chief executive officers who have received over their tenure a greater sum of total compensation relative to the market’s going rate become overconfident. We posit that this happens because historically overpaid chief executive officers perceive greater self-worth to the firm whereby such self-serving attribution inflates their level of self-confidence. We also identify chief executive officer- and firm-level cues that can influence the relationship between chief executive officers’ historical relative pay and their overconfidence, suggesting that chief executive officers’ perceived self-worth is more pronounced when chief executive officers possess less power and when their firm’s performance has improved upon their historical aspirations. Using a sample of 1185 firms and their chief executive officers during the years 2000–2016, we find empirical support for our predictions. Findings from this study contribute to strategic leadership research by highlighting the important role of executives’ compensation in creating overconfidence.

scholarly journals Leadership or luck? Randomization inference for leader effects in politics, business, and sports

2021 ◽  
Vol 7 (4) ◽  
pp. eabe3404
Author(s):  
Christopher R. Berry ◽  
Anthony Fowler
Keyword(s):  
Chief Executive Officers ◽  
Chief Executive ◽  
Anecdotal Evidence ◽  
Political Leaders ◽  
Quantitative Test ◽  
Wide Range ◽  
Randomization Inference ◽  
Executive Officers ◽  
Sports Coaches

Anecdotal evidence suggests that some leaders are more effective than others but observed differences in outcomes between leaders could be attributable to chance variation. To solve this inferential problem, we develop a quantitative test of leader effects that provides more reliable inferences than previous strategies, and we implement the test in the settings of politics, business, and sports. We find significant effects of political leaders, particularly in nondemocracies. We find little evidence that chief executive officers influence the performance of their firms. In addition, we find clear evidence that sports coaches matter for a wide range of outcomes in football, basketball, baseball, and hockey.

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