scholarly journals CEO Overconfidence And The Effectiveness Of Internal Control Over Financial Reporting

2015 ◽  
Vol 32 (1) ◽  
pp. 81 ◽  
Author(s):  
Jong Eun Lee
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Chief Executive Officers ◽  
Negative Impact ◽  
Empirical Test ◽  
Chief Executive ◽  
Test Results ◽  
Negative Consequences ◽  
Executive Officers

<p>In this study, I investigate the association between overconfidence, a cognitive bias of chief executive officers (CEOs), and the existence of internal control weaknesses (ICWs). As suggested in the prior finance literature on the negative impact of CEO overconfidence on corporate policy, overconfident CEOs could disregard the importance of internal control over financial reporting (ICFR), which could negatively affect the firm’s investment for infrastructure to implement effective financial reporting information system (FRIS) and result in less reliable financial information. Empirical test results show that CEO overconfidence is positively associated with the existence of ICWs, particularly with ICWs related to insufficient accounting personnel or ineffective FRIS. Those ICWs subsequently lead to lower earnings quality, higher absolute value of discretionary accruals and lower quality of accruals. Furthermore, potentially negative consequences of CEO overconfidence to the effectiveness of ICFR could downgrade investors’ confidence in the credibility of financial statements.</p>

scholarly journals Strategic Communication and Competitive Advantage: Assessing CEO Letters of Global Airline Alliances

2021 ◽  
Vol 13 (1) ◽  
pp. 57-72
Author(s):  
Gang-Hoon Seo ◽  
Munehiko Itoh ◽  
Zhonghui Li
Keyword(s):  
Competitive Advantage ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Strategic Communication ◽  
Aviation Industry ◽  
Competitive Advantages ◽  
Differentiation Strategy ◽  
Airline Alliances ◽  
Executive Officers

Abstract For the last several decades, global airline alliances have ensured their market presence in the aviation industry. Scholars have focused on the effects of alliance affiliation for airlines and what the competitive advantages of alliances are. However, these issues have been discussed in relation to operational aspects. The quality of strategic communication can be an important factor in achieving a competitive advantage and realizing a differentiation strategy. This study assessed the differences in quality of strategic communication between the three leading alliance groups (oneworld, SkyTeam, and Star Alliance) and a non-alliance group. Comprehensive content analysis was implemented using the letters of chief executive officers (CEOs) of 46 airlines. We found that the non-alliance group has more ideal CEO letters than the alliance groups, and the main topics and quality of CEO letters of alliance group differed. This study provides a novel insight into the competitive advantage of global airline alliances.

Corporate dispersion and tax avoidance

2019 ◽  
Vol 13 (3) ◽  
pp. 706-732 ◽  
Author(s):  
Kun Su ◽  
Bin Li ◽  
Chen Ma
Keyword(s):  
Internal Control ◽  
Chief Executive Officers ◽  
Tax Avoidance ◽  
Chief Executive ◽  
Corporate Tax ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
Executive Officers ◽  
The Impact

Purpose The purpose of this paper is to investigate the effects of corporate dispersion on tax avoidance from geographical and institutional dispersion perspectives by using evidence from China. Design/methodology/approach Using a panel data of Chinese listed firms during 2003-2015, this paper estimates with correlation analysis and multiple regression analysis. Findings Both geographical and institutional dispersion are negatively associated with the degree of corporate tax avoidance. Furthermore, corporate governance mechanisms and female chief executive officers can mitigate the negative relation between corporate dispersion and tax avoidance. The results also indicate that ineffective internal control is one of the channels through which corporate dispersion reduces tax avoidance. Originality/value This is the first paper about the impact of firm dispersion on the degree of tax avoidance, complementing the research content of diversification and corporate decision-making.

Passion in executive mentoring influences organizational innovativeness

2018 ◽  
Vol 46 (2) ◽  
pp. 219-231
Author(s):  
James Hatch Moore ◽  
Zhongming Wang
Keyword(s):  
Chief Executive Officers ◽  
Chief Executive ◽  
Organizational Improvement ◽  
Organizational Innovativeness ◽  
Confirmatory Factor ◽  
Managerial Implications ◽  
Opposite View ◽  
Executive Officers ◽  
First Time

Mentoring is a popular resource for individual and organizational improvement. In this study we examined for the first time passion in executive mentoring as a potential approach to developing organizational innovativeness. In most previous studies the executives, for example, chief executive officers, were the mentors, but we took the opposite view, namely, the executives were the mentees. Results confirmed the hypotheses that the executive's perception of the mentor's passion was positively related to the executive's perception of organizational innovativeness, through the quality of mentoring and cognitive adaptability. Confirmatory factor analysis and regression analysis confirmed the validity of the results. Results demonstrated the value of passion in executive mentoring and the subsequent link to organizational innovativeness via the quality of mentoring and cognitive adaptability. Theoretical and managerial implications and directions for further research are discussed.

scholarly journals Nonmonetary Benefits, Quality of Life, and Executive Compensation

2013 ◽  
Vol 48 (1) ◽  
pp. 197-218 ◽  
Author(s):  
Xin Deng ◽  
Huasheng Gao
Keyword(s):  
Quality Of Life ◽  
Executive Compensation ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Living Environment ◽  
Nonmonetary Benefits ◽  
High Crime ◽  
Executive Officers ◽  
High Crime Rate

AbstractWe examine the effects of nonmonetary benefits on overall executive compensation from the perspective of the living environment at the firm headquarters. Companies in polluted, high crime rate, or otherwise unpleasant locations pay higher compensation to their chief executive officers (CEOs) than companies located in more livable locations. This premium in pay for quality of life is stronger when firms face tougher competition in the managerial labor market, when the CEO is hired from outside, and when the CEO has short-term career concerns. Overall, the geographic desirability of the corporate headquarters is an effective substitute for CEO monetary pay.

Manager traits and quality-of-care performance in hospitals

2015 ◽  
Vol 28 (3) ◽  
pp. 200-215 ◽  
Author(s):  
Kjeld Harald Aij ◽  
René L.M.C. Aernoudts ◽  
Gepke Joosten
Keyword(s):  
Quality Of Care ◽  
Organizational Performance ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Content Type ◽  
Lean Transformation ◽  
Executive Officers ◽  
The Impact ◽  
Care Performance

Purpose – This paper aims to assess the impact of the leadership traits of chief executive officers (CEOs) on hospital performance in the USA. The effectiveness and efficiency of the CEO is of critical importance to the performance of any organization, including hospitals. Management systems and manager behaviours (traits) are of crucial importance to any organization because of their connection with organizational performance. To identify key factors associated with the quality of care delivered by hospitals, the authors gathered perceptions of manager traits from chief executive officers (CEOs) and followers in three groups of US hospitals delivering different levels of quality of care performance. Design/methodology/approach – Three high- and three low-performing hospitals were selected from the top and bottom 20th percentiles, respectively, using a national hospital ranking system based on standard quality of care performance measures. Three lean hospitals delivering intermediate performance were also selected. A survey was used to gather perceptions of manager traits (providing a modern or lean management system inclination) from CEOs and their followers in the three groups, which were compared. Findings – Four traits were found to be significantly different (alpha < 0.05) between lean (intermediate-) and low-performing hospitals. The different perceptions between these two hospital groups were all held by followers in the low-performing hospitals and not the CEOs, and all had a modern management inclination. No differences were found between lean (intermediate-) and high-performing hospitals, or between high- and low-performing hospitals. Originality/value – These findings support a need for hospital managers to acquire appropriate traits to achieve lean transformation, support a benefit of measuring manager traits to assess progress towards lean transformation and lend weight to improved quality of care that can be delivered by hospitals adopting a lean system of management.

scholarly journals Assessment of Government Internal Control Systems on Financial Reporting Quality in Ghana: A Case Study of Ghana Revenue Authority

2018 ◽  
Vol 10 (11) ◽  
pp. 40
Author(s):  
Wonder Agbenyo ◽  
Yuansheng Jiang ◽  
Prince Komla Cobblah
Keyword(s):  
Control Systems ◽  
Financial Reporting ◽  
Internal Control ◽  
Negative Impact ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Quality Reporting ◽  
The Impact

Internal control systems cannot be underestimated as it serves as the lifeblood of most institutions in terms of its imperative roles that it plays in both tangible and intangible assets of an organization. Internal control actions on quality financial report state positive goals more especially when all parties involved adhere to their duties; thus, making the quality of financial reporting comparable, understandable, relevant, and reliable. In this regard, this study investigated the impact of government internal control systems on financial reporting quality in Ghana using Ghana Revenue Authority as the case study. Specifically, the study examined the nature and quality of financial reporting and the impact of government internal control systems on financial reporting quality. Both quota and simple random sampling techniques were used to select fifty (50) persons as the sample size of the study. Questionnaires were used to obtain data. The correlation matrix was used to examine the relationship between government internal control systems and financial reporting quality. The study finds out that contrary to apriori expectation sign monitoring as an element of internal control system has a negative impact on the financial quality reporting but was however statistically significant. The study also revealed that with a unit increase in the collection performance, the financial reporting quality of GRA will improve. The study recommended that the government should ensure that the internal control systems are well monitored and regulated.&nbsp;

scholarly journals Corporate governance in banks: the Nigerian experience

2010 ◽  
Vol 7 (4) ◽  
pp. 34-41
Author(s):  
Babalola Adeyemi
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Chief Executive Officers ◽  
Boards Of Directors ◽  
Banking Sector ◽  
Chief Executive ◽  
Secondary Sources ◽  
Liability Management ◽  
Executive Officers ◽  
Financial Transactions

Recent failures/collapse of high profit institutions around the world such as Enron, Parmalat, Worldcom, Barings Bank to mention just a few have shown that no company can be too big to fail. A common trend that ran through these monumental failures was poor corporate governance culture, exemplified in poor management, fraud and insider abuse by both management and board members, poor asset and liability management, poor regulations and supervision among others. This paper examines the conceptual framework of corporate governance. Some of the components of corporate governance in general and in the Nigerian banking sector in particular were identified and observed. Secondary sources were basically consulted for the purpose of this work and simple percentages were also used to explain a few of the findings. The study revealed that the boards of directors of a good number of these banks were ineffective and that the internal controls were equally weak as a result of the overriding influence of the chairman/chief executive officers. It was also observed that there were instances of insider abuses such as granting of insider related credits, huge non-performing loans and so on. In addition, lack of transparency and non-disclosure of financial transactions were very rampant in the banking sector in Nigeria according to the study carried out. Recommendations made include total separation of ownership from management, sound internal control system, full disclosure of all financial transactions and strengthening the enforcement mechanism of the regulatory authorities.

scholarly journals Attentional Engagement as Practice: A Study of the Attentional Infrastructure of Healthcare Chief Executive Officers

2021 ◽  
Author(s):  
Davide Nicolini ◽  
Maja Korica
Keyword(s):  
Chief Executive Officers ◽  
Central Element ◽  
Chief Executive ◽  
Healthcare Organizations ◽  
Quality Of Information ◽  
Attentional Engagement ◽  
Multiple Issues ◽  
Executive Officers ◽  
Over Time

In this paper, we investigate the attentional engagement of chief executive officers (CEOs) of large healthcare organizations in England. We study attention ethnographically as something managers do—at different times, in context, and in relation to others. We find that CEOs match the challenges of volume, fragmentation, and variety of attentional demands with a bundle of practices to activate attention, regulate the quantity and quality of information, stay focused over time, and prioritize attention. We call this bundle of practices the CEO’s attentional infrastructure. The practices that compose the attentional infrastructure work together to ensure that CEOs balance paying too much with paying too little attention, sustain attention on multiple issues over time, and allocate attention to the issues that matter, while avoiding becoming swamped by too many other concerns. The attentional infrastructure and its component practices are constantly revised and adapted to match the changes in the environment and ensure that managers remain on top of the things that matter to them. The idea of a practice-based attentional infrastructure advances theory by expanding and articulating the concept of attentional engagement, a central element in the attention-based view of the firm. We also demonstrate the benefits of studying attention as practice, rather than as an exclusively mental phenomenon. Finally, we contribute to managerial practice by introducing a set of categories that managers can use to interrogate their existing attentional practices and address attentional traps and difficulties.

Why Malaysian Companies Are Involved in Related Party Transactions (RPT) in the Context of Corporate Governance (CG)

2021 ◽  
pp. 296-317
Author(s):  
Suleman Sherali Kamwani ◽  
Sofri B. Yahya
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Related Party Transactions ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanisms ◽  
Monitoring And Enforcement ◽  
And Performance ◽  
Executive Officers

The regulations related to corporate governance mechanisms such as the sensitivity of pay and performance of chief executive officers, board characteristics, and watches outside of those that are well connected in related party transactions (RPTs)in Malaysia are struggling from the monitoring and enforcement of good corporate governance. The primary aims of this study are to investigate the gap that exists in Malaysian company failures due to appropriate related party transactions and to evaluate the impact of good corporate governance on shareholders' confidence in related party transaction (RPTs) disclosures from the Malaysian Accounting Standards Board (MASB) of regulations. In the year 2000, a study was done by Claessens that examined the data of 236 Malaysian public organizations. The study found the dominancy of a large block of shareholders in organizations in addition to weak institutional structures. This chapter focuses on the usage of related party transactions undertaken to benefit Malaysian companies which have led to financial reporting disclosure information.

SEC enforcement actions getting up close and personal

2016 ◽  
Vol 17 (1) ◽  
pp. 131-132
Author(s):  
Matthew E. Kaplan ◽  
Alan H. Paley ◽  
Jonathan R. Tuttle
Keyword(s):  
Financial Reporting ◽  
Chief Executive Officers ◽  
Audit Committee ◽  
Chief Executive ◽  
Chief Financial Officers ◽  
Securities Fraud ◽  
Content Type ◽  
Securities Law ◽  
Public Company ◽  
Executive Officers

Purpose To alert public company management and directors to several recent SEC enforcement actions involving executives and other senior personnel arising out of securities law violations. Design/methodology/approach Reviews a series of enforcement actions against four chief executive officers, four chief financial officers, an audit committee chair, and one outside auditor (BDO USA LLC) and five of its partners arising out of securities law violations by four different corporations (MusclePharm Corporation, Bankrate, Inc., KIT Digital, Inc. and General Employment Enterprises, Inc.). Each of the actions involved financial reporting and disclosure violations. Also highlights the need for directors and senior management to maintain a sharp focus on their company’s controls and disclosure practices. Findings The SEC’S actions may portend renewed determination by the agency to hold executives and directors, as well as outside professionals, accountable for securities fraud and disclosure violations committed by corporations. Originality/value Practical guidance from experienced securities lawyers.

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