scholarly journals CEO Turnover: Governance, Games and Real Options

2021 ◽  
Author(s):  
◽  
Thomas Stannard
Keyword(s):  
Learning Process ◽  
Firm Value ◽  
Group Performance ◽  
Peer Group ◽  
Empirical Work ◽  
Ceo Turnover ◽  
Lower Threshold ◽  
Empirical Literature ◽  
High Quality ◽  
Perceived Ability

<p>The decision a Board of Directors (a board) makes to dismiss or retain its CEO is one of extreme importance in its role of representing shareholder interests and maximising shareholder value. This thesis presents three independent but highly related studies pertaining to the dynamics between a board and its selected CEO in deciding to retain or replace an incumbent manager. The first study presents a theoretical model of CEO turnover that is examined in order to develop new empirical testable predictions. The model employs a learning process for perceived CEO ability that offers new insight into the dynamics of the problem. We find empirical support for the theoretical predictions that: (1) if a CEO sends high noise performance signals to the board relative to the pool of possible replacements, the probability of turnover will be less sensitive early on in the manager’s tenure and more sensitive later due to the learning process; (2) the probability of turnover for a CEO who has a lower level of initial uncertainty relative to a pool of possible replacements will be less sensitive to performance because the CEO will need to be considered high quality to get the position in the first place; and (3) there is empirical evidence to support the notion that ongoing volatility in the board’s estimate of a manager’s ability plays a role in the updating process of ability assessment by a board.  Recent empirical work has indicated that board-induced CEO turnover is a function of industry business cycles and not just relative performance evaluation. The literature notes that this could be because: (1) CEOs may optimally be rewarded or punished for peer group performance if a CEO’s actions affect peer performance; (2) boards receive more, or better information in industry downturns than they do during booms; or (3) boards misattribute industry performance to CEO ability. The literature concludes (3) largely due to the results not being sensitive to CEO tenure, where high tenure CEOs should have proven themselves in good and bad times. There is however no theoretical framework to help interpret these empirical findings and we consider conclusions incomplete. It is well established in the macroeconomic literature that downturns are highly correlated with increased levels of uncertainty, and as a result firm behaviour is impacted. The second study in this thesis presents a model of board-induced CEO turnover that allows analysis under two stochastic state variables: (1) perceived managerial ability; and (2) precision of the perceived ability. We use the constructed model to show that, following shocks that increase uncertainty, the probability of turnover for high tenure CEOs may be higher or lower than low tenure CEOs depending on the board’s estimate of CEO ability. This casts doubt on conclusions made from the findings of the empirical literature.  The final study presented by this thesis is my job market paper. It presents a new game of performance-induced CEO turnover that analyses CEO turnover decisions in a context where the CEO and the board both have meaningful options. We show that under certain conditions a CEO has the incentive to lock in a high level of perceived ability, through good firm performance, and exercise their option to leave for other roles and increased prestige. This creates an upper and lower threshold for performance-induced CEO turnover. The lower threshold relates to the board’s option to terminate a low-quality CEO and the upper threshold relates to a high-quality CEO’s option to leave the firm. The upper threshold creates a credible threat for the board that affects its decision making. We define two types of threats: (1) the persistent threat, where the firm is one where the incumbent and any replacement will have an upper threshold; and (2) a unique threat, where only the incumbent has the upper threshold and replacements are taken from a pool of candidates who do not have an upper threshold. We estimate that both threat types have a negative impact on firm value. Empirically we find that consistent with the theory, the probability of a turnover event increases following positive relative accounting performance for small firms and firms with young CEO’s, indicating upper threshold constraints for these two groups.</p>

scholarly journals CEO Turnover: Governance, Games and Real Options

2021 ◽  
Author(s):  
◽  
Thomas Stannard
Keyword(s):  
Learning Process ◽  
Firm Value ◽  
Group Performance ◽  
Peer Group ◽  
Empirical Work ◽  
Ceo Turnover ◽  
Lower Threshold ◽  
Empirical Literature ◽  
High Quality ◽  
Perceived Ability

<p>The decision a Board of Directors (a board) makes to dismiss or retain its CEO is one of extreme importance in its role of representing shareholder interests and maximising shareholder value. This thesis presents three independent but highly related studies pertaining to the dynamics between a board and its selected CEO in deciding to retain or replace an incumbent manager. The first study presents a theoretical model of CEO turnover that is examined in order to develop new empirical testable predictions. The model employs a learning process for perceived CEO ability that offers new insight into the dynamics of the problem. We find empirical support for the theoretical predictions that: (1) if a CEO sends high noise performance signals to the board relative to the pool of possible replacements, the probability of turnover will be less sensitive early on in the manager’s tenure and more sensitive later due to the learning process; (2) the probability of turnover for a CEO who has a lower level of initial uncertainty relative to a pool of possible replacements will be less sensitive to performance because the CEO will need to be considered high quality to get the position in the first place; and (3) there is empirical evidence to support the notion that ongoing volatility in the board’s estimate of a manager’s ability plays a role in the updating process of ability assessment by a board.  Recent empirical work has indicated that board-induced CEO turnover is a function of industry business cycles and not just relative performance evaluation. The literature notes that this could be because: (1) CEOs may optimally be rewarded or punished for peer group performance if a CEO’s actions affect peer performance; (2) boards receive more, or better information in industry downturns than they do during booms; or (3) boards misattribute industry performance to CEO ability. The literature concludes (3) largely due to the results not being sensitive to CEO tenure, where high tenure CEOs should have proven themselves in good and bad times. There is however no theoretical framework to help interpret these empirical findings and we consider conclusions incomplete. It is well established in the macroeconomic literature that downturns are highly correlated with increased levels of uncertainty, and as a result firm behaviour is impacted. The second study in this thesis presents a model of board-induced CEO turnover that allows analysis under two stochastic state variables: (1) perceived managerial ability; and (2) precision of the perceived ability. We use the constructed model to show that, following shocks that increase uncertainty, the probability of turnover for high tenure CEOs may be higher or lower than low tenure CEOs depending on the board’s estimate of CEO ability. This casts doubt on conclusions made from the findings of the empirical literature.  The final study presented by this thesis is my job market paper. It presents a new game of performance-induced CEO turnover that analyses CEO turnover decisions in a context where the CEO and the board both have meaningful options. We show that under certain conditions a CEO has the incentive to lock in a high level of perceived ability, through good firm performance, and exercise their option to leave for other roles and increased prestige. This creates an upper and lower threshold for performance-induced CEO turnover. The lower threshold relates to the board’s option to terminate a low-quality CEO and the upper threshold relates to a high-quality CEO’s option to leave the firm. The upper threshold creates a credible threat for the board that affects its decision making. We define two types of threats: (1) the persistent threat, where the firm is one where the incumbent and any replacement will have an upper threshold; and (2) a unique threat, where only the incumbent has the upper threshold and replacements are taken from a pool of candidates who do not have an upper threshold. We estimate that both threat types have a negative impact on firm value. Empirically we find that consistent with the theory, the probability of a turnover event increases following positive relative accounting performance for small firms and firms with young CEO’s, indicating upper threshold constraints for these two groups.</p>

Audit Quality and the Market Value of Cash Holdings: The Case of Office-Level Auditor Industry Specialization

2014 ◽  
Vol 34 (2) ◽  
pp. 27-57 ◽  
Author(s):  
Jeong-Bon Kim ◽  
Jay Junghun Lee ◽  
Jong Chool Park
Keyword(s):  
Financial Reporting ◽  
Firm Value ◽  
Capital Investment ◽  
Audit Quality ◽  
Cash Holdings ◽  
Market Value ◽  
High Quality ◽  
Value Of Cash ◽  
Office Level ◽  
Industry Specialist

SUMMARY This study investigates the monitoring role of high-quality auditors defined as office-level industry specialists in the stock market valuation of cash assets. We find that the market value of cash holdings is significantly higher for the client of an industry specialist auditor. The marginal value of cash is 34 cents higher for the client of a joint-industry specialist at both the national and city levels than for the client of a nonspecialist. We also find that cash holdings are more closely associated with capital investment and the market value of capital investment is significantly higher when the auditor is a joint-industry specialist. Moreover, we find that the value of cash increases significantly when the client changes its auditor to a joint-industry specialist. Our findings hold even after controlling for the client's governance efficacy and financial reporting quality. Our results provide new insight into the mechanism through which high-quality audits affect firm value: External audits facilitate shareholders' monitoring over managerial cash expenditures, thereby leading market participants to attach a higher value to cash holdings.

Guiding Principals: Middle-Manager Coaching and Human-Capital Reform

2020 ◽  
Vol 122 (10) ◽  
pp. 1-50
Author(s):  
Susan Bush-Mecenas ◽  
Julie A. Marsh ◽  
Katharine O. Strunk
Keyword(s):  
Professional Development ◽  
Human Capital ◽  
Policy Implementation ◽  
Survey Data ◽  
Empirical Work ◽  
Think Aloud ◽  
High Quality ◽  
Wide Range ◽  
Role Of Principal

Background/Context School leaders are central to state and district human-capital reforms (HCRs), yet they are rarely equipped with the skills to implement new evaluation, professional development, and personnel data systems. Although districts increasingly offer principals coaching and training, there has been limited empirical work on how these supports influence principals’ HCR-related practices. Purpose Drawing on a two-year, mixed-methods study in the Los Angeles Unified School District (LAUSD), this article examines the role of principal supervisors in HCRs. We ask: What role did principal supervisors (Instructional Directors [IDs]) play in the implementation of human-capital reforms? What did high-quality coaching on the part of IDs look like in this context? Research Design Our two-part analysis draws upon survey and interview data. First, we conducted descriptive analyses and significance testing using principal and ID survey data to examine the correlations among principals’ ratings of ID coaching quality, ID coaching practices, and principals’ implementation of HCRs. Second, we conducted in-depth interviews, using a think-aloud protocol, with two sets of IDs—those consistently highly-rated and those with mixed ratings—who were identified using principals’ reports of coaching quality. Following interview coding, we created various case-ordered metamatrix displays to analyze our qualitative data in order to identify patterns in coaching strategy and approach across IDs, content, and contexts. Findings First, our survey data indicate that receiving high-quality coaching from IDs is correlated with stronger principal support for and implementation of HCRs. Our survey findings further illustrate that IDs support a wide range of principals’ HCR activities. Second, our think-aloud interviews with case IDs demonstrate that coaching strategy and approach vary between consistently highly-rated and mixed-rated coaches: Consistently highly-rated IDs emphasize the importance of engaging in, or defining HCR problems as, joint work alongside principals, while mixed-rated IDs often emphasize the use of tools to guide principal improvement. We find that, on the whole, the consistently highly-rated IDs in our sample employ a nondirective approach to coaching more often than mixed-rated coaches. Conclusions These findings contribute to a growing literature on the crucial role of principal supervisors as coaches to improve principals’ instructional leadership and policy implementation. While exploratory, this study offers the first steps toward building greater evidence of the connections between high-quality coaching and policy implementation, and it may have implications for the design and implementation of professional development for principal supervisors and the selection and placement of supervisors with principals.

scholarly journals Pre-Service Teachers’ Perceptions of ICT and TPACK Competencies

2021 ◽  
Vol 11 (2) ◽  
pp. 60-82
Author(s):  
Burak Demirtaş ◽  
Filiz Mumcu
Keyword(s):  
Learning Process ◽  
Ict Integration ◽  
Educational Value ◽  
Perceived Ability ◽  
Use Of Technology ◽  
Educational Processes ◽  
Ict Competence ◽  
Significant Difference ◽  
Teaching Learning ◽  
Ict Competencies

Abstract Introduction: The competencies needed for information and communication technologies (ICT) integration in the teaching-learning process are related to the use of technology, pedagogical attitudes, and content planning. These qualifications are all interrelated and should not be seen separately (Becuwe et al., 2017). In this context, ICT and TPACK competencies are important for ICT integration. The standards of ISTE for educators define the ICT skills that teachers should have as designers and facilitators (International Society for Technology Education [ISTE], 2020). These standards are gathered within the framework of ICT literacy, digital literacy, and ICT competence (Tondeur et al., 2017). The concept of ICT competence discussed in this study refers to the integrated and functional use of digital knowledge, skills and attitudes (Hatlevik et al., 2015). In this study, the ICT integration competencies of pre-service teachers (PSTs) were examined as ICT competencies and TPACK competencies in terms of a range of variables. For this purpose, the following question was asked: “Is there any significant difference in the ICT integration competencies of PSTs according to a range of variables?” Methods: This study is based on causal-comparative research. The research was conducted in the autumn term of the 2019-2020 academic year. A convenience sampling method was used. In this regard, 413 PSTs, who are students of faculties of education at ten state universities located in different cities in Turkey, participated voluntarily in the study. The “Pre-service Teachers’ ICT Competencies Scale” developed by Tondeur et al. (2017) and the “TPACK-Deep Scale” developed by Kabakçı Yurdakul et al. (2012) were used to collect the data in the study. In addition to the scales, seven questions were asked about gender, grade, department, GPA, ICT course grade, owning a computer for educational purposes, and one’s perceived ability to use technology. Two methods have been adopted to collect data. The first was to collect the printed forms that were completed in pen by the PSTs, and the second was to prepare the electronic form and deliver it to the PSTs via e-mail and social media applications and then collect the data. To analyse the data, descriptive statistics, independent samples t-test and one-way analysis of variance (ANOVA) were used. Results: ICT and TPACK competencies of PSTs differ according to grade, having one’s own computer for educational purposes, and one’s perceived ability to use technology, but do not differ by gender. There is no significant difference in ICT and TPACK competencies according to the gender of PSTs. There is a significant difference in ICT and TPACK competencies according to the grade of PSTs and this difference is in favour of fourth grades. There is a significant difference in terms of ICT competencies and TPACK competencies according to computer ownership for educational purposes. This difference is in favour of PSTs who have their own computers. According to the perceived ability to use the technology of PSTs, there is a significant difference in ICT competencies and TPACK competencies. This difference is in favour of PSTs who think they can use technology at the advanced or expert level. Discussion: In the face of constantly developing and changing technology, an important consideration is the competencies teachers and PSTs should have for ICT integration. Factors contributing to the explanation of the ICT integration process such as skills and competencies, pedagogical beliefs and self-efficacy, professional development and teacher experiences, ICT infrastructure, and access and tools are seen to have a positive effect on ICT use (Kaya & Usluel, 2011). It has been suggested that competence and pedagogical knowledge regarding ICT integration as perceived by teachers are important when starting to integrate ICT into teaching practices (Aslan & Zu, 2015). In this study, it was found that there is a difference in ICT integration competencies of PSTs in favour of those who have their own computers and those who think they can use technology at the advanced or expert level. As the PSTs experience an increase in their perceived level of skill in their use of technology, their ICT integration competencies increase. This study also shows that PSTs’ computer ownership has an impact on their education and improves their technological skills, making a difference in terms of ICT integration competencies. Limitations: This study was limited to PSTs who studied at the faculty of education at state universities in Turkey. In addition, two scales related to ICT integration and one demographic questionnaire were used. Also, the convenience sampling method was used and the sampling was confined to 413 PSTs. Conclusions: There is a need for educational processes that emphasise technology’s educational value and enable teachers to improve themselves pedagogically and plan more effective teaching-learning processes using this pedagogical knowledge. To meet the needs of the learners of this century, teachers must first be equipped with the necessary knowledge and skills in their educational processes (Yıldırım, 2000; Zhou et al., 2010). PSTs should experience this process in their teaching-learning process, and should receive training in the integration of ICT in the teaching-learning process (Çubukçu et al., 2017). Research shows that the learning experiences of PSTs in this sense and the integration of ICT with their subject areas are closely related to understanding the educational value of ICT (Mumcu & Usluel, 2015). Academics, who take a role in teacher education, should use technology effectively in their lessons, and PSTs should experience the educational uses of technology through their education (Başal, 2015). In this sense, academics who take part in teacher education have important duties.

scholarly journals Understanding the implementation of evidence-informed policies and practices from a policy perspective: a critical interpretive synthesis

2020 ◽  
Author(s):  
Heather L Bullock ◽  
John N Lavis ◽  
Michael G Wilson ◽  
Gillian Mulvale ◽  
Ashleigh Miatello
Keyword(s):  
Grey Literature ◽  
Synthesis Method ◽  
Empirical Work ◽  
Implementation Process ◽  
Empirical Literature ◽  
Implementation Theory ◽  
Policy Perspective ◽  
Implementation Processes ◽  
Critical Interpretive Synthesis ◽  
Way Of Thinking

Abstract Background: The fields of implementation science and knowledge translation have evolved somewhat independently from the field of policy implementation research, despite calls for better integration. As a result, implementation theory and empirical work do not often reflect the implementation experience from a policy lens nor benefit from the scholarship in all three fields. This means policymakers, researchers and practitioners may find it challenging to draw from theory that adequately reflects their implementation efforts.Methods: We developed an integrated theoretical framework of the implementation process from a policy perspective by combining findings from these fields using the critical interpretive synthesis method. We began with the compass question: how is policy currently described in implementation theory and processes and what aspects of policy are important for implementation success? We then searched 12 databases as well as grey literature and supplemented these documents with other sources to fill conceptual gaps. Using a grounded and interpretive approach to analysis, we built the framework constructs, drawing largely from the theoretical literature and then tested and refined the framework using empirical literature.Results: A total of 11,434 documents were retrieved and assessed for eligibility and 35 additional documents were identified through other sources. Eighty-six unique documents were ultimately included in the analysis. Our findings indicate that policy is described as: 1) the context; 2) a focusing lens; 3) the innovation itself; 4) a lever of influence; 5) an enabler/facilitator or barrier; or 6) an outcome. Policy actors were also identified as important participants or leaders of implementation. Our analysis led to the development of a two-part conceptual framework, including process and determinant components. Conclusions: This framework begins to bridge the divide between disciplines and offers a new way of thinking about implementation processes at the systems level. It offers researchers, policymakers and implementers with a new way of thinking about implementation and can be used for planning or evaluating implementation efforts.

Technical Details and Educational Applications for Virtual Reality Technologies

2021 ◽  
pp. 74-95
Author(s):  
Yongzhi Wang
Keyword(s):  
Higher Education ◽  
Virtual Reality ◽  
Learning Process ◽  
State Of The Art ◽  
The State ◽  
High Quality ◽  
Comprehensive Survey ◽  
Technical Details ◽  
Educational Applications ◽  
Teaching Learning

The application of virtual reality (VR) in higher education has drawn attention. Understanding the state of the art for VR technologies helps educators identify appropriate applications and develop a high-quality engaging teaching-learning process. This chapter provides a comprehensive survey of current hardware and software supports on VR. Secondly, important technical metrics in VR technology are considered with comparisons of different VR devices using identified metrics. Third, there is a focus on software tools and an explore of various development frameworks, which facilitate the implementation of VR applications. With this information as a foundation, there is a VR use in higher education. Finally, there is a discussion of VR applications that can be potentially used in education.

College Students’ Cognitive Learning Outcomes in Technology-Enabled Active Learning Environments: A Meta-Analysis of the Empirical Literature

2019 ◽  
Vol 58 (4) ◽  
pp. 791-817 ◽  
Author(s):  
Yinghui Shi ◽  
Huiyun Yang ◽  
Jason MacLeod ◽  
Jingman Zhang ◽  
Harrison Hao Yang
Keyword(s):  
College Students ◽  
Active Learning ◽  
Learning Outcomes ◽  
Learning Environments ◽  
Meta Analysis ◽  
Cognitive Learning ◽  
Empirical Literature ◽  
High Quality ◽  
Moderator Variable ◽  
Cognitive Learning Outcomes

Technology-enabled active learning environments (TE-ALEs) have attracted considerable research interest, particularly in higher education. However, research shows inconsistent results describing the influence of TE-ALEs toward students’ cognitive learning outcomes. This study was designed to identify high-quality empirical research examining college students’ cognitive learning outcomes and to utilize meta-analysis to determine the overall effectiveness of TE-ALEs. A systematic literature search identified 31 high-quality peer-reviewed journal articles that met the inclusion criteria. Meta-analysis showed that the calculated effect size of TE-ALEs more positively influenced students’ cognitive learning than traditional lecture-based environments. Moderator variable analysis suggested that social context, study design, and sample size were significant factors that influence the effectiveness of TE-ALE. TE-ALEs were found more effective when instructors employed individualized learning contexts as well as when bias was reduced in randomized controlled trials. TE-ALEs were also found to be more effective in small courses rather than in large courses.

Firm Value Effects of Web Site Redesign

2010 ◽  
pp. 20-41
Author(s):  
Raquel Benbunan-Fich ◽  
Eliezer M. Fich
Keyword(s):  
Information Technology ◽  
Firm Value ◽  
Web Site ◽  
Empirical Literature ◽  
Publicly Traded ◽  
Cross Sectional ◽  
Web Presence ◽  
Service Companies ◽  
Study Methodology ◽  
Commercial Organizations

The redesign of a Web site can be classified as both an information technology (IT) investment and an e-commerce initiative. Although the empirical literature provides evidence that financial markets are sensitive to e-commerce announcements, it is still unknown what types of announcements affect the value of firms. We use the event study methodology on a sample of Web site redesigns from 1995 to 1999 to investigate the types of commercial organizations that announce changes to their Web presence and to study whether such redesign initiatives affect the value of publicly traded firms. Our findings indicate that, on average, refining a Web presence does not produce significant firm valuation adjustments. However, cross-sectional analyses reveal that Web site redesign increases firm value in service companies.

Modularity matters: a critical review and synthesis of service modularity

2016 ◽  
Vol 8 (1) ◽  
pp. 38-52 ◽  
Author(s):  
Nofie Iman
Keyword(s):  
Service Sector ◽  
Manufacturing Sector ◽  
Empirical Work ◽  
Empirical Literature ◽  
Service Development ◽  
Future Research ◽  
Content Type ◽  
Development Context ◽  
High Level ◽  
Service Perspective

Purpose – The literature on modularity is extensive, but most research has been concerned with the manufacturing sector and much less with the service sector. The purpose of this paper is to investigate the existing research, to provide a critique of the empirical literature on service modularity and to discuss future research opportunities. Design/methodology/approach – To perform this analysis of service modularity, a list of top-tier journals in the field of business management and organisation was compiled. From there, each and every article was identified, examined, coded and classified into high-level themes. These were then reviewed, analysed and interpreted. Findings – This paper argues that the application of modularity in services will likely be influenced by certain characteristics that distinguish services from products. Second, modularity, from the service perspective, has been closely connected to productisation of services, and the discussion of modularity related to services has been greatly influenced by the earlier discussion on product modularity. This paper concludes that modularity in the service development context is still seeking its theoretical “identity” and requires further theoretical and empirical work on service design modularity conceptualisation, methods and measures. Originality/value – This paper has reviewed several significant fields with which research on service modularity has been concerned. It captures and presents the core notion of service modularity in a critical way that might spur further research in the field.

Re-imagining the nature of (student-focused) learning through digital technology

2017 ◽  
Vol 16 (3) ◽  
pp. 321-326 ◽  
Author(s):  
Nina Hood
Keyword(s):  
Social Justice ◽  
Learning Process ◽  
Education System ◽  
Digital Technology ◽  
Educational Outcomes ◽  
Learning Experiences ◽  
Learning Opportunities ◽  
High Quality

Digital technology is frequently positioned as being central to the establishment of a ‘future focused’ education system that provides high quality student-focused learning opportunities and re-envisioned educational outcomes. While recognising the potential of technology, this paper explores some of the questions about its role in education and learning – in particular, how technology addresses issues of equity and social justice; what it means to design educational and learning experiences that are truly student-focused; and the potential for technology to dehumanise the learning process. The paper concludes with some considerations of how to integrate digital technology effectively into an education system.

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