R&D Intensity and Economic Recession

2012 ◽  
Vol 19 (3) ◽  
pp. 284-293 ◽  
Author(s):  
Dilek Gulistan Yunlu ◽  
Dianne D. Murphy
Keyword(s):  
Research And Development ◽  
Chief Executive Officer ◽  
Economic Recession ◽  
Chief Executive ◽  
Moderating Effect ◽  
Moderating Effects ◽  
Upper Echelons Theory ◽  
Ceo Tenure ◽  
The Relationship ◽  
Ceo Characteristics

The authors employ the upper echelons theory and contingency theory in understanding the moderating effect of the chief executive officer (CEO) characteristics on the relationship between recession and research and development (R&D) intensity. The authors selected 2004 (nonrecession) and 2008 (recession) years for the analysis. Evidence was found that during recession, indeed, organizations decreased their R&D spending. The findings supported that CEOs with a shorter career horizon decreased R&D spending more dramatically than CEOs with a longer career horizon during recession. No evidence was found for the moderating effects of CEO tenure and insider status.

scholarly journals Chief executive officer retirement and auditor’s risk assessment

2020 ◽  
Vol 18 (2) ◽  
pp. 343-361
Author(s):  
Salau Olarinoye Abdulmalik ◽  
Noor Afza Amran ◽  
Ayoib Che-Ahmad
Keyword(s):  
Risk Assessment ◽  
Chief Executive Officer ◽  
Perceived Risk ◽  
Family Firms ◽  
Chief Executive ◽  
Family Businesses ◽  
Moderating Effect ◽  
Content Type ◽  
Client Risk ◽  
The Relationship

Purpose This study aims to examine the unique nature of family firms by investigating the moderating effect of chief executive officer (CEO) identity on CEO career horizon and the auditor’s client risk assessment. Consistent with literature on family businesses, the level of CEO attachment to socio-emotional wealth (SEW) varies among family businesses. Design/methodology/approach This study used a longitudinal sample of 2,063 non-financial family firm-year observations from 2005 to 2016 listed on the Bursa Malaysia. The study used the general method of moments (GMM), which controls for endogeneity concerns. Findings The results reveal that, without the moderating effect of CEO identity, the relationship between CEO career horizon and auditor’s risk assessment is positive, which suggests that the auditor’s risk perception of retiring CEOs is very high. However, the interaction of CEO identity reverses the relationship as evidenced by the negative and significant coefficient on the interacted terms. The finding suggests that the auditor’s perceived risk associated with CEO career horizon is lower in family firms with CEOs affiliated to family members or in which the CEO has an equity stake. Overall, the findings provide compelling evidence that the extent of the CEO’s attachment to the firm’s SEW affects the auditor’s client risk assessment. Practical implications The findings of the study serve as an enlightenment to policymakers such as Bursa Malaysia and Security Commission that within the family-controlled firms, differences still exist; therefore, there might be a need for future regulatory initiative to cater for the specific need of family-controlled firms. Originality/value The study contributes to prior literature by departing from the agency theory adopted in previous studies on auditor choice in family firms under the assumption that family firms are homogenous.

CEO characteristics: do they matter for carbon performance? An empirical investigation of Australian firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jibriel Elsayih ◽  
Rina Datt ◽  
Ali Hamid
Keyword(s):  
Chief Executive Officers ◽  
Chief Executive ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Ceo Tenure ◽  
Carbon Performance ◽  
Executive Officers ◽  
The Impact ◽  
Industry Experience ◽  
Ceo Characteristics

Purpose Research suggests that chief executive officers (CEOs) play an important role in enhancing a firm’s legitimacy with regard to environmental performance. The purpose of this paper is to use the upper echelons theory and stakeholder theory to investigate whether the characteristics of CEOs are associated with carbon performance (CP). Design/methodology/approach This paper uses a sample of 128 firm-year observations from Australian companies that participated in the carbon disclosure project from 2011 through 2014. Findings Two-stage least squares estimation reveals that CEO executive experience and CEO duality are positively associated with CP. By contrast, CEO tenure, CEO functional background experience and CEO industry experience are negatively related to CP, and CEO ownership is not related to CP. Practical implications The results might provide evidence for investors, policymakers and regulators with respect to the effectiveness of CEO characteristics for addressing carbon risks and possible linkages between CEO characteristics and carbon emission levels. In addition, the results give support CEO accountability regarding the carbon emissions. Originality/value This study provides the first empirical evidence of the impact of CEO characteristics on CP. Furthermore, this study contributes to the existing literature by showing how the characteristics of CEOs can impact corporate CP and provides a more in-depth understanding of whether such characteristics play important roles in determining corporate carbon action.

scholarly journals Chief Executive Officer Regulatory Focus and Competitive Action Frequency

2020 ◽  
pp. 105960112098141
Author(s):  
Arpita Agnihotri ◽  
Saurabh Bhattacharya
Keyword(s):  
Chief Executive Officer ◽  
Regulatory Focus ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Moderating Effects ◽  
Upper Echelons ◽  
Prevention Focus ◽  
Competitive Action ◽  
Executive Officers ◽  
The Relationship

Using regulatory focus, the Chief Executive Officer-Top Management Team (CEO-TMT) interface, and upper echelons theories, the present study casts additional light on the competitive action frequency of firms, as determined by their chief executive officers (CEOs) regulatory focus under the contingent effect of the CEO–TMT dissimilarity of informational demographics. Applying regulatory focus and upper echelons theories, this study first hypothesizes how CEO regulatory focus influences competitive action frequency. Next, leveraging CEO–TMT interface research, this study suggests moderating effects on the part of CEO–TMT dissimilarity, across functional background and tenure, and on the relationship between CEO regulatory focus and competitive action frequency. Drawing on a sample of 218 firms from India for a 5-year period (2010–2015), we find that a CEO promotion focus enhances a firm’s competitive action frequency and that a prevention focus diminishes the same. Furthermore, dissimilarities in terms of both CEO–TMT functional background orientation and tenure in the organization moderate this relationship. This study concludes with a discussion of the article’s theoretical and practical implications.

A Meta-Analysis of the Relationship Between Chief Executive Officer Tenure and Firm Financial Performance: The Moderating Effects of Chief Executive Officer Pay and Board Monitoring

2021 ◽  
pp. 105960112198957
Author(s):  
Xian Cao ◽  
Junyon Im ◽  
Imran Syed
Keyword(s):  
Financial Performance ◽  
Chief Executive Officer ◽  
Positive Relationship ◽  
Meta Analysis ◽  
Chief Executive ◽  
Firm Financial Performance ◽  
Ceo Tenure ◽  
Ceo Pay ◽  
Board Monitoring ◽  
The Relationship

Prior empirical research investigating the relationship between chief executive officer (CEO) tenure and firms’ financial performance has shown inconclusive results. Based on arguments of agency and behavioral agency theories, we suggest that this relationship is nuanced and may vary depending on CEO pay and board monitoring. In response to these arguments, we meta-analytically test 385 studies ( n = 1,029,602). We find that CEO tenure is positively related to firms’ financial performance. This positive relationship is enhanced when CEOs receive higher cash compensation or hold more stock ownership. On the other hand, the above positive relationship becomes weaker when CEOs receive higher long-term incentives or when the firm has more independent board directors. These findings suggest that CEO pay and board monitoring, or agency mechanisms in general, can offer new research avenues to help explore boundary conditions of the CEO tenure and firms’ financial performance relationship.

scholarly journals Chief Executive Officer Characteristics and Financial Restatements in Malaysia

2020 ◽  
Vol 11 (2) ◽  
pp. 173
Author(s):  
Marwan Altarawneh ◽  
Rohami Shafie ◽  
Rokiah Ishak
Keyword(s):  
Regression Analysis ◽  
Chief Executive Officer ◽  
Significant Relationship ◽  
Chief Executive ◽  
Financial Statements ◽  
Financial Restatement ◽  
Dummy Variable ◽  
Ceo Tenure ◽  
Financial Restatements ◽  
Ceo Characteristics

The purpose of this paper is to investigate whether the Chief Executive Officer (CEO) characteristics affect the occurrence of financial restatements in Malaysian firms. The CEO characteristics used in this study were tenure, honorific title, gender, expertise, and age. In addition, the financial restatement has been measured as a dummy variable as to whether companies restate their financial statements or not. The sample of this study comprised 442 companies listed in the main market of Bursa Malaysia during the period 2012–2016. The panel data method was utilised to analyse the data. This study employed a logistic regression analysis. The results of this study revealed that there is a positive and significant relationship between CEO tenure and CEO gender with financial restatements. In addition, this study found a negative and significant relationship between CEO honorific title and financial restatements. However, the results found insignificant relationships between CEO expertise and age with financial restatements. This study highlighted the importance of considering CEO characteristics as one of the influential determinants of financial restatements in Malaysian companies.

scholarly journals Managerial Incentives And Changes In Corporate Focus

2011 ◽  
Vol 2 (3) ◽  
Author(s):  
Ronald W. Best ◽  
Charles W. Hodges ◽  
Bing-Xuan Lin
Keyword(s):  
Chief Executive Officer ◽  
Chief Executive ◽  
Managerial Incentives ◽  
Firm Characteristics ◽  
Font Size ◽  
Ceo Tenure ◽  
Equity Ownership ◽  
Corporate Focus ◽  
Ceo Characteristics

<p class="MsoTitle" style="text-align: justify; line-height: normal; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt; font-weight: normal; mso-bidi-font-size: 11.0pt;"><span style="font-family: Times New Roman;">We examine how Chief Executive Officer (CEO) equity ownership, CEO tenure, and the percentage of options in CEO annual compensation are related to decisions regarding changes in corporate focus.<span style="mso-spacerun: yes;">&nbsp; </span>We document that the CEOs whose companies change their level of corporate focus have significant differences from CEOs whose firms do not change focus.<span style="mso-spacerun: yes;">&nbsp; </span>However, we find no differences in the characteristics of CEOs who increase their firm&rsquo;s level of diversification and the CEOs who decrease their firm&rsquo;s level of diversification.<span style="mso-spacerun: yes;">&nbsp; </span>Firm characteristics, such as size or whether the firm sells at a premium or discount to its peers, are better predictors of changes in corporate focus than CEO characteristics. Overall, we find no evidence that changes in diversification are related to self-serving managers attempting to maximize their own wealth.</span></span></p>

scholarly journals Profitability and leverage in eco-efficiency and quality management system for increasing the firms’ performance

2020 ◽  
Vol 22 (3) ◽  
Author(s):  
Budiman Sutrisno ◽  
Wendy Wendy
Keyword(s):  
Quality Management ◽  
Management System ◽  
Quality Management System ◽  
Stock Exchange ◽  
Multiple Linear Regression Model ◽  
Moderating Effect ◽  
Management Systems ◽  
Moderating Effects ◽  
Quality Management Systems ◽  
The Relationship

This research aims to analyze the moderating effects of profitability and leverage on the relationship between the quality management system and eco-efficiency toward the firm’s performance. The research sample consists of 75 firms listed on the Indonesia Stock Exchange as of 2017. Data concerning eco-efficiency and the quality management system are collected from the firm's annual report. This research utilizes a multiple linear regression model. The result shows that eco-efficiency and quality management system do not affect the firm’s performance. Profitability has a negative and significant moderating effect on the relationship between eco-efficiency toward the firm’s performance. Further, the moderating variable also positively and significantly moderates the relationship between the quality management system and the firm's performance. Leverage, on the other hand, is found to have no moderating effect on the relationship between eco-efficiency and quality management systems toward the firm's performance.  This study contributes and extends previous research by exploring eco-efficiency and quality management systems toward the firm’s performance simultaneously. Besides, it also examines the moderating relation of profitability and leverage in relationship with eco-efficiency and quality management system toward a firm's performance by using the sample from all firms which are listed on the Indonesia Stock Exchange and have implemented the system.

The Chief Executive Officer and the Chief Information Officer: The Strategic Partnership

1991 ◽  
Vol 6 (3-4) ◽  
pp. 128-139 ◽  
Author(s):  
Yash P. Gupta
Keyword(s):  
Information Technology ◽  
Competitive Advantage ◽  
Chief Executive Officer ◽  
Chief Executive ◽  
Chief Information Officer ◽  
Strategic Partnership ◽  
The Future ◽  
The Common ◽  
Relationship Of ◽  
The Relationship

Information technology (IT) has become a strategic resource for many firms today. Coordination of this resource requires strong leadership and cooperation within the firm. The relationship of the Chief Executive Officer (CEO) and the Chief Information Officer (CIO) is crucial for the effective, successful utilization of IT for competitive advantage. This paper first explores the CIO position, giving reasons for its development, tracing its evolution, and pinpointing certain responsibilities associated with the position. The paper then highlights the CIO's concerns and identifies the future implications for the CIO. The second portion of the paper takes the CEO's perspective towards IT and the CIO's position. Special attention is directed towards describing the CEO's perspective on the CIO's qualifications, addressing the problem of overblown CEO expectations for the CIO position, and discussing ‘old-line’ CEOs’ attitudes towards IT and the CIO position. Also addressed is the exploration of the common CEO perception of the CIO as an ‘empire builder’ and an analysis of the CEO's perspective on the future need for a CIO position. Finally the paper focuses on developing this ‘strategic partnership’ between the CIO and the CEO. Suggestions are provided for the CIO and the CEO to help achieve this ideal partnership. Although these suggestions are not all conclusive, they are critical to the ‘partnership’.

Effects of CEO duality and tenure on innovation

2019 ◽  
Vol 12 (4) ◽  
pp. 536-552
Author(s):  
Mengge Li ◽  
Jinxin Yang
Keyword(s):  
Chief Executive Officers ◽  
Boards Of Directors ◽  
Chief Executive ◽  
Monitoring And Control ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Ceo Tenure ◽  
Executive Officers ◽  
Advance Theory ◽  
Exploratory Innovation

Purpose As the primary decision makers, chief executive officers (CEOs) play pivotal roles in firm innovation. However, little is known regarding how CEOs influence the exploitation and exploration paradox. To advance theory and research, the purpose of this paper is to investigate the joint effects of CEO tenure and CEO–chair duality on a firm’s shifting emphasis between exploitative and exploratory innovation. Design/methodology/approach This paper takes the approach of a longitudinal sample of 81 US pharmaceutical firms. Findings As CEOs’ tenure advance, their firms’ percentage of exploitative innovation increases. Furthermore, non-duality (separation of board chair and CEO) further strengthens the positive relationship between CEO tenure and the percentage of exploitative innovation. Research limitations/implications This study integrates upper echelons theory and behavioral agency theory to juxtapose the effects of CEOs on technological innovation. This study extends knowledge of strategic leadership and innovation by showing that CEOs influence the balance between exploitative and exploratory innovation. Furthermore, this study also contributes to the corporate governance literature by demonstrating that monitoring vigilance could inhibit capable CEOs from pursuing more exploratory innovation. Practical implications Boards of directors should allow CEOs to have greater discretion over innovation, and vigilant monitoring and control may force CEOs to focus less on exploration. Originality/value This is one of the few studies that explicitly investigate how CEO influences a firm’s emphasis on exploitative innovation and exploratory innovation.

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