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>

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 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.

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.

CEO characteristics and bank performance: evidence from India

2020 ◽  
Vol 35 (8) ◽  
pp. 1057-1093
Author(s):  
Neeraj Gupta ◽  
Jitendra Mahakud
Keyword(s):  
Personal Characteristics ◽  
Chief Executive ◽  
Bank Performance ◽  
Public And Private ◽  
Content Type ◽  
Ceo Tenure ◽  
Ceo Age ◽  
Effect Estimation ◽  
The Impact ◽  
Ceo Characteristics

Purpose The purpose of this study is to examine the impact of chief executive officer (CEO) personal characteristics on the performance of Indian commercial banks. Additionally, it also analyses the nonlinear relationship of CEO age and CEO tenure on the bank performance. Design/methodology/approach A balanced panel data approach has been used in this study. Particularly, the fixed effect estimation technique is used to examine the relationship between CEO characteristics and bank performance during the period 2009–2010 to 2016–2017. Findings The authors find that professional qualification of CEOs in finance stream enhances performance. Additionally, the impact of CEO duality is found to be positive and significant on performance. Male CEOs are beneficial for bank performance. Well experienced CEOs contribute to higher performance. The results are robust across the various proxies of bank performance, and sub-samples based on ownership, size of the bank and board size. Practical implications This study provides insights to policy regulators and policymakers who are entrusted with the appointment of the CEOs in the banks in the light of the ongoing regulatory reforms. Originality/value This study can be considered as one of the early studies, which examines the association between CEO characteristics and bank performance from an emerging economy perspective. It also extends the existing study by considering both public and private banks operating in India.

The effect of board multiple directorships and CEO characteristics on firm performance: evidence from Palestine

2020 ◽  
Vol 10 (4) ◽  
pp. 637-654
Author(s):  
Mohammed W.A. Saleh ◽  
Rabee Shurafa ◽  
Siti Norwahida Shukeri ◽  
Abdulnasr Ibrahim Nour ◽  
Zaharaddeen Salisu Maigosh
Keyword(s):  
Firm Performance ◽  
Chief Executive ◽  
Content Type ◽  
Return On Equity ◽  
Regression Methods ◽  
Multiple Directorships ◽  
Ceo Tenure ◽  
Potential Benefits ◽  
Set Up ◽  
Ceo Characteristics

PurposeThe purpose of this study is to empirically examine the effect of board multiple directorships and chief executive officer (CEO) characteristics on firm performance among nonfinancial firms listed on the Palestine Security Exchange (PSE) during the period from 2009 to 2016.Design/methodology/approachBased on 200 observations, this study utilizes panel data to examine the effect of the predictors on firm performance measured by return on assets. The analysis is repeated using the return on equity and two regression methods to evaluate the robustness of the main analysis (pooled regression, and backward stepwise regression analysis).FindingsThe results show that the “busyness” of a CEO reduces their effectiveness and is associated with losses in the companies where they are in charge. On the other hand, the results show that CEO tenure, CEO experience and CEO political connections have a positive effect on corporate performance.Originality/valueThis study is timely given that the practice of multiple directorships is widely common among firms in developing countries. Prior research in Palestine has not investigated the role of multiple directorships and the CEO characteristics on corporate outcomes. This study provides a picture of the potential benefits to firms, policymakers and professional bodies from considering CEO variables. The findings of such an examination can help them to set up suitable policies and enhance the role and the quality of the CEO in firms.

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.

Is your CEO an accountant?

2018 ◽  
Vol 34 (2) ◽  
pp. 7-9
Keyword(s):  
Case Studies ◽  
Chief Executive Officer ◽  
Design Methodology ◽  
Reading Time ◽  
Chief Executive ◽  
Cutting Edge ◽  
Content Type ◽  
Pertinent Information ◽  
Ceo Characteristics ◽  
Practical Implications

Purpose Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Who is your chief executive officer (CEO)? Are they tall or short; have an MBA or self-made; are they bullish or cautious; are they smart or limited; are they passionate or cold? There are reams of studies based on CEO characteristics that seek to define types of leaders and the links to choices that are made by them and their company. But do these undoubtedly worthy academic studies ever get anywhere near the truth? By observing CEO characteristics, there will surely be some subjective conclusions that do not actually occur in reality, along with the nagging doubt that we will never really be able to peer behind the curtain to see what is going on at the top table. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals When Does the Family Govern the Family Firm?

2018 ◽  
Vol 54 (5) ◽  
pp. 2085-2117
Author(s):  
Øyvind Bøhren ◽  
Bogdan Stacescu ◽  
Line F. Almli ◽  
Kathrine L. Søndergaard
Keyword(s):  
Chief Executive Officer ◽  
Family Firms ◽  
Chief Executive ◽  
Family Firm ◽  
Low Risk ◽  
Firm Characteristics ◽  
Costs And Benefits ◽  
Family Governance ◽  
The Family ◽  
Positive Effect

We find that the controlling family holds both the chief executive officer and chair positions in 79% of Norwegian family firms. The family holds more governance positions when it owns large stakes in small, profitable, low-risk firms. This result suggests that the family trades off expected costs and benefits by conditioning participation intensity on observable firm characteristics. We find that the positive effect of performance on participation is twice as strong as the positive effect of participation on performance. The endogeneity of participation, therefore, should be carefully accounted for when analyzing the effect of family governance on the family firm’s behavior.

Peregrine—Twenty Years of Fraudulent Cash Balances

2013 ◽  
Vol 29 (2) ◽  
pp. 337-348
Author(s):  
Randal J. Elder ◽  
Diane J. Janvrin ◽  
Paul Caster
Keyword(s):  
Information System ◽  
Chief Executive Officer ◽  
Accounting Information ◽  
Chief Executive ◽  
Cash Balance ◽  
Accounting Information System

ABSTRACT In July 2012, Peregrine Financial Group filed for bankruptcy following the discovery that $215 million in customer balances had been embezzled. Investigation revealed that its Chief Executive Officer, Russell Wasendorf, Sr., fooled auditors and regulators for 20 years by preparing fictitious bank statements and cash balance confirmations to hide the theft of cash. The fraud was uncovered when Peregrine's regulator, the National Futures Association (NFA), demanded that Peregrine participate in an electronic confirmation process for verification of customer accounts. This case discusses how the fraud was allowed to go undetected for 20 years, the importance of auditing cash, and how new electronic confirmation technology improves the ability to authenticate confirmation responses. The case is suitable for use in both auditing and accounting information system courses.

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