BUNDLING HUMAN CAPITAL WITH ORGANIZATIONAL CONTEXT: THE IMPACT OF INTERNATIONAL ASSIGNMENT EXPERIENCE ON MULTINATIONAL FIRM PERFORMANCE AND CEO PAY.

2001 ◽  
Vol 44 (3) ◽  
pp. 493-511 ◽  
Author(s):  
M. A. Carpenter ◽  
W. G. Sanders ◽  
H. B. Gregersen
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Organizational Context ◽  
Multinational Firm ◽  
International Assignment ◽  
Ceo Pay ◽  
The Impact

scholarly journals CEO Compensation and Firm Performance: The Role of ESG Transparency

2020 ◽  
Vol 4 (2) ◽  
pp. 278
Author(s):  
Chetna Rath ◽  
Florentina Kurniasari ◽  
Malabika Deo
Keyword(s):  
Firm Performance ◽  
Chief Executive Officers ◽  
Ceo Compensation ◽  
Negative Relationship ◽  
Chief Executive ◽  
Long Run ◽  
Ceo Pay ◽  
Executive Officers ◽  
The Impact

Chief executive officers (CEOs) of environmental, social, and governance (ESG) firms are known to take lesser pay and engage themselves in corporate social responsibility activities to achieve the dual objective of the enhancement of firm’s performance as well as benefit for stakeholders in the long run. This study examines the role of ESG transparency in strengthening the impact of firm performance on total CEO pay in ESG firms. A panel of 67 firms for the period of 2014–2019 has been analyzed using the two-step system GMM model, with NSE Nifty 100 ESG Index as the data sample and ESG scores from Bloomberg database as a proxy for transparency. Findings reveal that environmental and governance disclosure scores have the potential to intensify the negative relationship between firm performance and CEO compensation, while social disclosure scores do not. In addition, various firm-specific, board-specific, and CEO-specific attributes have also been considered controls affecting remuneration. This paper contributes to the literature by exploring the effect of exhibiting ESG transparency and its nexus with CEO pay as well as firm performance.

The Impact of Social Capital, Managerial Human Capital and Managerial Knowledge Structure on Firm Performance

2019 ◽  
Vol 10 (3) ◽  
pp. 95-113
Author(s):  
Abdulkareem Salameh Awwad ◽  
Mamoun Nadim Akroush ◽  
Majdy Issa Zuriekat ◽  
Yassir Yahya Al Masoudi
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Firm Performance ◽  
Structural Equation ◽  
Knowledge Structure ◽  
Knowledge Structures ◽  
Equation Modeling ◽  
Telecommunications Sector ◽  
Managerial Knowledge ◽  
The Impact

This article aims to examine the relationships between external and internal social capital, managerial human capital, and managerial knowledge structures, respectively. It also examines the effect of managerial human capital and managerial knowledge structures on firm performance in the telecommunications sector in Jordan. A questionnaire was distributed to 250 managers in the telecommunications sector in Jordan. Utilizing structural equation modeling, it was found that external social capital has a positive significant effect on internal social capital and managerial human capital. Internal social capital has positively and significantly affected managerial knowledge structures. Furthermore, both managerial human capital and managerial knowledge structure had affected firm performance positively. As technology is expanding in this sector, relevant knowledge and information is becoming a source of competitive advantage, thus managers in this sector should build beneficial ties that might enhance human resources' capabilities that benefit the decision-making processes.

Human capital and firm performance: a contingent analysis

2014 ◽  
Author(s):  
Vicente Roca-Puig ◽  
Inmaculada Beltrán-Martín ◽  
Mercedes Segarra-Ciprés ◽  
Ana Belén Escrig Tena ◽  
Juan Carlos Bou-Llusar
Keyword(s):  
Human Capital ◽  
Comparative Analysis ◽  
Firm Performance ◽  
Temporary Employment ◽  
Organizational Size ◽  
Temporary Work ◽  
Research Attention ◽  
Return On Sales ◽  
High Degree ◽  
The Impact

Growing interest has been shown in the degree to which investment in human capital contributes to firm performance, yet limited research attention has been paid to the contextual conditions that moderate this relation. This investment may be more beneficial in some contexts than in others. Specifically, this study examines how temporary work and organizational size affect the value of human capital. We carry out a comparative analysis of the impact of human capital on firm performance among small and large companies with high and low use of temporary employment. From a sample of 1,403 industrial Spanish companies, findings indicate that the impact of human capital on labor productivity and return on sales is moderated by temporary work and organizational size. The most beneficial context is represented by a large company with a high degree of human capital and a lower use of temporary employment.

scholarly journals The Impact of Ownership Structure on Wage Intensity in Japanese Corporations

2005 ◽  
Vol 31 (2) ◽  
pp. 278-300 ◽  
Author(s):  
Toru Yoshikawa ◽  
Phillip H. Phan ◽  
Parthiban David
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Ownership Structure ◽  
Opposite Effect ◽  
Economic Recession ◽  
Manufacturing Firms ◽  
Capital Investments ◽  
Human Capital Investments ◽  
The Impact ◽  
Japanese Corporations

The authors studied the effect of ownership structure on human capital investments as indicated by wage intensity, defined as the ratio of expenditure on employee wages to sales, in a sample of 996 Japanese manufacturing firms during their economic recession of 1998-2002. They found that domestic shareholders, with interests beyond financial considerations, enhance wage intensity, especially when performance is low, and thereby safeguard human capital investments. Foreign shareholders with sole interest in financial returns have an opposite effect; they reduce wage intensity when firm performance is low.

The determinants of CEO compensation: new insights from United States

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Bouteska ◽  
Salma Mefteh-Wali
Keyword(s):  
Firm Performance ◽  
Executive Compensation ◽  
Ceo Compensation ◽  
Future Research ◽  
Ceo Power ◽  
Content Type ◽  
Managerial Power ◽  
The Us ◽  
Ceo Pay ◽  
The Impact

PurposeThe purpose of this paper is to examine the determinants of CEO compensation for sample of the US firms. It emphasizes the presence of executive compensation persistence and the importance of CEO power besides performance while setting CEO pay.Design/methodology/approachThe empirical analysis is conducted on a large sample of US firms during the period 2006–2016. It is based on the generalized method of moments (GMM) models to assess the impact of numerous factors on CEO compensation.FindingsThe main findings reveal that firm performance proxied by accounting-based proxies, as well as market-based proxies, plays a significant role in explaining variations in levels of executive compensation. Moreover, there is a significant persistence in executive compensation among the US sample firms. The authors also document that poor governance conditions (managerial power hypothesis) lead to high compensation levels offered to CEO.Research limitations/implicationsAt the end, without a doubt, the analysis has some limitations that prompt the authors to consider future research directions. One future research avenue that can help better explain the effect of firm performance on the CEO compensation is to study this issue using an international sample to determine whether country-level characteristics (e.g. creditor rights, shareholder rights and the enforcement climate) can influence this relationship. Furthermore, it can be worthwhile to deepen the analysis of CEO power and its impact on CEO compensation. It will be interesting to emphasize how the CEO power interacts with the other governance characteristics and some CEO attributes as CEO gender.Practical implicationsThe paper's findings have implications for practitioners, policymakers and regulatory authorities. First, the findings inform regulators that performance is not the only determinant of CEO pay level. This may warrant increased firm disclosure of the details of the pay structure. Second, the study offers insights to policymakers and members of boards of directors interested in enhancing the design of executive compensation and internal corporate governance, to better align managerial incentives to shareholder interests. Firms should strengthen the board independence and properly constitute the board committees (compensation, risk, nomination…).Originality/valueThis paper presents a comprehensive overview of the CEO compensation determinants. It supplements the classic pay-for-performance sensitivity predictions with insights gained from the dynamics of wage setting theory and managerial power theory. The authors develop a composite index to measure the CEO power in order to test the impact of CEO attributes on CEO pay. Additionally, it verifies whether the determinants of CEO pay depend on firm age and size.

A Jack of All Trades Is a Master of None: The Nexus of Firm-specific Human Capital, Ambidexterity, Productivity and Firm Performance

2020 ◽  
pp. 232209372097001
Author(s):  
Navaneethakrishnan Kengatharan
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Theory Of The Firm ◽  
Capital Theory ◽  
Knowledge Based ◽  
Subsequent Effect ◽  
Time Lagged ◽  
A Chain ◽  
Specific Human Capital ◽  
The Impact

Drawing on the knowledge-based theory of the firm and organisational learning theory, the present study chiefly examines the impact of firm-specific human capital on organisational ambidexterity and the subsequent effect of organisational ambidexterity on productivity by integrating human capital theory with the theory of transaction cost. The data were garnered from 197 managers in Sri Lanka with self-reported questionnaires in a time-lagged approach. The results disclose strong significant relationships between the variables investigated: a chain of positive relationships between firm-specific human capital and organisational ambidexterity, organisational ambidexterity and productivity, and productivity and firm performance; and mediated relationships between firm-specific human capital and productivity through organisational ambidexterity, and between organisational ambidexterity and firm performance via productivity. The findings of the study push back the frontiers of human resource management literature in many ways. Notably, managers should be cognizant of the effects of firm-specific human capital, organisational ambidexterity, and productivity on firm performance.

The importance of organizational context for the relation between human capital investment and firm performance: Evidence from labor unions

2020 ◽  
pp. 0000-0000
Author(s):  
Hee-Yeon Sunwoo ◽  
Justin Law ◽  
Woo-Jong Lee ◽  
Seungbin Oh
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Labor Unions ◽  
Union Membership ◽  
Capital Investment ◽  
Organizational Context ◽  
Human Capital Investment ◽  
Listed Firms ◽  
Unique Data ◽  
Cost Behavior

We study the importance of organizational context for the relation between human capital investment and firm performance. Using unique data from Korean listed firms, which were previously required to disclose information about union membership, we predict and find that the presence of unions attenuates the favorable relation between human capital investment and firm performance. We identify productivity, future employment, and cost behavior as channels through which this result could operate. Overall, we show that the benefits commonly associated with investments in human capital are contingent on attributes of the organization, including the presence of labor unions.

The influence of investors’ opinions of human capital and multitasking on firm performance: a knowledge management perspective

2020 ◽  
Vol 24 (7) ◽  
pp. 1585-1603
Author(s):  
Shashank Vaid ◽  
Benson Honig
Keyword(s):  
Human Capital ◽  
Knowledge Management ◽  
Firm Performance ◽  
Small Firms ◽  
Abnormal Returns ◽  
Content Type ◽  
Managerial Succession ◽  
Top Executive ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to examine the disruption-adaptation associated with knowledge management (KM) of entrepreneurial multitasking of top strategy and tactics executive (TSTE) succession in positions responsible for both S and T. This provides insight into KM and firm performance during turbulent periods. Design/methodology/approach The study examines investor’s opinions of human capital in the context of managerial succession. The data was based on 900 publicly available appointment announcements between 2006–2014, allowing for the examination of 459 observations of succession in 51 industries. Findings The findings indicate that the relationship between KM of entrepreneurial multitasking and firm performance was more positive for high innovation firms than for low innovation firms. As well, the relationship between investors’ opinions of a top executive manager’s human capital and firm performance is more positive for small firms than for large firms and more positive for high innovation firms than for low innovation firms. Research limitations/implications The study contributes to the literature by systematically examining the announced appointment of executives in one context where KM of entrepreneurial multitasking is prevalent – across marketing strategy and sales tactics (hereafter, S and T) responsibilities – for multiple firms listed at major US stock exchanges across a wide range of industries, using lagged performance data to discern performance outcomes. It highlights important issues related to organizational structure and human capital for firm performance and KM in dynamic environments. Further research could examine the impact on firm performance of a change in structure – from a joint sales and tactics position to a sales or tactics position and vice versa. By studying the impact of change to and from an intertwined position, future scholars can determine the level of risk stemming from coordination uncertainty changes with time. Practical implications Of practical relevance, the study shows that vesting dual responsibility for S and T in one executive during managerial succession may not be as universally valuable or adaptive as previously thought. One practical extension of this research may also be that larger firms that are more likely to have clearly defined silos may find that such vesting of multitasking responsibility not as valuable. High innovation and small firms may gain from new executives’ multitasking responsibility for S and T. Thus, firms should think twice before vesting S and T responsibilities with one incoming executive during the leadership change. Social implications Responsibility for both S and T compounds ambiguous accountability, frequently leaving the locus of customer-related problems unclear, and therefore unsolved. Originality/value Extant research has overlooked the relationship between the top management team’s (TMT) abilities to multitask firm performance over time across contexts of external and internal change, operationalized as firm innovation and firm size. Nor have studies explored the firm performance implications of external stakeholders’ opinions of such human capital across these contexts. A novel measure of executive-specific human capital – abnormal returns generated the appointment announcement, is introduced. Understanding the capability of a top executive to simultaneously multitask both S and T responsibilities is a critical component of KM; also relevant are investors’ opinions of their human capital, a particular oversight given the challenge of the “great transformational leader” with servant leadership theory (Carayannis et al., 2017; Gregory Stone et al., 2004).

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