scholarly journals The Power of Unrequited Love: The Parasocial Relationship, Trust, and Organizational Identification Between Middle-Level Managers and CEOs

2021 ◽  
Vol 12 ◽  
Author(s):  
Youliang Liao ◽  
Bin Lin ◽  
Haiyan Zhou ◽  
Xi Yang

Previous studies have found that CEOs manage their firms through traditional methods such as leadership and management practices. In this study, we investigate how the parasocial relationship (PSR) between middle-level managers and CEOs affects the organizational trust and the organizational identification (OI) of middle managers. We find that the PSR between middle managers and CEOs has a positive effect on the OI of middle managers, which is mediated by the organizational trust of middle managers.Purpose: Middle managers and CEOs are the key components of a firm and are crucial to firm strategies and control systems. Middle managers play a vital role in information transmission like in the organizational hierarchy while CEOs influence low-level employees through middle managers. In this study, we investigate how the PSR between middle managers and CEOs affects organizational trust and OI.Design/Methodology: In this study, the data concerning OI, integrity perception, and organizational trust are derived from a survey conducted by the internal control research group of the China Securities Regulatory Commission (CSRC). The research group began the survey on September 5, 2014, for the firms listed in the A-share market, accounting firms with securities and future practice qualifications, and institutional investors through the accounting department of the CSRC, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and the Asset Management Association of China. The research group members surveyed 2,536 A-share firms listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange. As of October 31, 2014, 2,154 sets of questionnaires with a total of 12,551 questionnaires were received, with a response rate of 84.95%. The financial and accounting data are from the China Stock Market and Accounting Research (CSMAR) database.Findings: We find that the PSR between middle managers and CEOs has a positive effect on the OI of middle managers, which is mediated by the organizational trust of middle managers. This study extends the application of the parasocial interaction (PSI) theory, organizational trust theory, and social identity theory in listed firms.Practical Implication: There are practical implications for internal relationship management, corporate governance, and performance management. CEOs should value the influence of organizational trust and improve his/her own social and work abilities on middle-level managers as the organizational trust of middle-level managers has a significant positive impact on their sense of responsibility, ethical behavior, organizational commitment, job satisfaction, and performance. CEOs should adopt various methods to influence different managers because organizational trust mediates the relationship between the PSR and OI.Originality/Value: Our study is one of the first attempts to apply the PSI theory to the corporate world. Given the dynamics of present-day markets and changing stakeholder demands, there is little insight into how this relationship affects organizational health and functioning. Much less what a PSR between CEO and middle management looks like in practice. Our study attempts to fill the gap by investigating how CEOs might come to affect middle managers through their practices and behaviors.

2019 ◽  
Vol 27 (2) ◽  
pp. 123
Author(s):  
Hilma Faza Ariyani ◽  
Irene Rini Demi Pangestuti ◽  
Susilo Toto Raharjo

The purpose of this study was to determine and examine the effect of asset structure, profitability, firm size and company growth on the capital structure of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2013 – 2017. The sampling method used was purposive sampling that was 52 companies in the criteria. Data obtained from the Financial Reports and Performance Reports published in the Indonesian Capital Market Directory (ICMD). The analytical tool that used is multiple regression. Hypothesis testing is done by the F test, t-test and determination coefficient. For the classical assumption, the test is done by the normality test, autocorrelation test, multicollinearity test, and heteroscedasticity test. The analysis of asset structure has a positive effect on the capital structure and not significant to the capital structure, profitability has a negative and significant effect on the capital structure, the size of the company has a positive and significant effect on the capital structure, and the company’s growth has a negative and significant effect on the capital structure. 


2021 ◽  
Vol 65 (2) ◽  
pp. 207-219
Author(s):  
Olusola Olowofela ◽  
◽  
Abiola Tonade ◽  
Benjamin Lisoyi ◽  
◽  
...  

This study investigates the impact of firm attributes on the financial performance of deposit money banks in Nigeria’s financial sector. The scope of this research covered the period 2007 – 2018 using audited financial statements and reports of nine (9) deposit money banks listed on the Nigerian Stock Exchange. The results revealed that bank liquidity has significant negative effect, while bank growth has insignificant negative effect on financial performance. On the other hand, bank size and leverage have insignificant positive effect on the financial performance of banks. It is recommended that banks should pay attention to liquidity management and use this to enhance performance. Also, the management of banks should endeavor to make use of their growth opportunities optimally.


Author(s):  
Praptini Yulianti

Employee engagement in the workplace is very important, especially for the organizational competitive advantage. Workplace procedural justice is an important motivator for employee work attitude and performance. Employee engagement in the workplace can be built through procedural justice, organizational trust  and organizational Identification. This research is an explanatory research that will explain the causal relationship between variables or through hypothesis testing. The sample in this study was collected through 100 respondents. The criteria of the selected respondents were the ones that working in the production division, since production division is the core of industrial companies. The sampling technique in this study used Partial Least Square. The results of this study supports that organizational trust and organizational identification  as  mediator  the relationship  of procedural justice and employee engagement  


2017 ◽  
Vol 9 (1) ◽  
pp. 65
Author(s):  
I Gusti Ketut Agung Ulupui ◽  
I Gusti Ayu Made Asri Dwija Putri

AbstractThe purposes of this study are as follows: (1) to determine whether executive compensation policies influenced by corporate governance practices, (2) to determine whether executive compensation policy are influenced by the size, growth and performance. This research have done in 2014 with the observation period from 2009 to 2011. The methods of collecting data in this research through the observations of the financial statements of companies listed on the Indonesian Stock Exchange. This study used inferential statistical methods in analyzing the data that is processed by regression analysis. The results showed performance and size have the positive effect significantly on the executive compensation.AbstrakTujuan dari penelitian ini adalah sebagai berikut: (1) menentukan apakah kebijakan kompensasi eksekutif dipengaruhi oleh corporate governance (2) untuk menentukan apakah kebijakan kompensasi eksekutif dipengaruhi oleh ukuran, pertumbuhan dan kinerja. Penelitian ini telah dilakukan pada tahun 2014 dengan periode pengamatan dari tahun 2009 sampai 2011. Metode pengumpulan data dalam penelitian ini melalui pengamatan terhadap laporan keuangan perusahaan yang tercatat di Bursa Efek Indonesia. Penelitian ini menggunakan metode statistik inferensial dalam menganalisis data yang diolah dengan analisis regresi. Hasilnya menunjukkan kinerja dan ukuran memiliki efek positif secara signifikan terhadap kompensasi eksekutif.


2020 ◽  
Vol 5 (1) ◽  
pp. 52
Author(s):  
Sukirno Sukirno

Abstract This study aims to empirically challenge the moderation of Non-Performing Loans to the effect of Credit Distribution Rates on Profitability. The population of 81 bank companies listed on the Indonesia Stock Exchange in the period 2014-2018 and which met the criteria of the research sample (purposive sampling) were 22 companies. The research method uses survey methods with quantitative research approaches, the analytical tool used is moderation regression. This study concludes that the level of credit distribution has a significant positive effect on profitability and the existence of the problem loan variable is proven to be a moderating variable that weakens the relationship between the level of credit distribution and profitability.    


2020 ◽  
Vol 1 (1) ◽  
pp. 27-35
Author(s):  
Lia Hendrawati ◽  
Said Djamaludin

This study to examine and analyze the effect of liquidity, credit growth, efficiency, and capital adequacy on the Bank’s profitability listed on the IDX partially and simultaneously. The research data are annual data for the 5-year observation period (2009-2013). This research was conducted at 33 banks listed on Indonesia Stock Exchange. Banks Analyzed that met the population criteria were 23 banks. The analytical method used in multiple linier regression. The results showed that liquidity, credit growth, efficiency, and capital adequacy together (simultaneously) significantly influence profitability. Partially,  liquidity has a significant positive effect on profitability, while efficiency has a significant negative effect. Credit growth and capital adequacy have no significant effect on profitability. Liquidity is the variable that has the biggest effect on the Bank’s profitability. 


2011 ◽  
Vol 3 (1) ◽  
pp. 1-13
Author(s):  
Agustin Ekadjaja ◽  
Vony Vony

This study aims to determine the effect of CSR Index to the value and performance of manufacturing companies listed on the Indonesia Stock Exchange (BEI), and to find out how much the ability of the variable CSR Index in explaining the variable Tobin’s Q, ROA, and ROE manufacturing companies listed on Indonesia Stock Exchange (BEI). This study uses data sampled during the 75 years from 2007 to 2009. A statistical method used to test the research hypothesis is a simple linear regression model. Therefore, before performing hypothesis testing carried out tests of classical assumptions. The results of this study prove that, CSR Index has a significant effect on Tobin’s Q and ROE with 95% confidence level. However, CSR Index has no significant influence on ROA with 95% confidence level. Key words : CSR Index, Variabel Tobin’s Q, ROA, ROE


Equity ◽  
2015 ◽  
Vol 18 (1) ◽  
pp. 39
Author(s):  
Taufan Septiawan ◽  
Erna Hernawati

This study was conducted to examine the effect of Earnings Per Share, Net Profit Margin, Debt to Equity Ratio toward Stock Price on manufacturing companies in Indonesia Stock Exchange during the years 2009-2012. The population consists of 36 companies and are used as a sample of 17  ompanies. Sampling technique using purposive sampling method. Data were tested by using multiple regression analysis and hypothesis test with 5% level of confidence. The research results that the variables Earnings Per Share (EPS) and Net Profit Margin (NPM) gives significantly positive effect on Stock Price. The other variables Debt to Equity Ratio is not significantly to Stock Price. We suggest for investors in Indonesia Stock Exchange that paying attention other factors that regards Stock Price because with those information they can make the best decision for their investments


Wahana ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 61-72
Author(s):  
Rani Eka Diansari ◽  
Sheftyka Rispin

This study aims to determine the effect of firm size on human resource accounting disclosure, the effect of profitability on human resource accounting disclosure and the effect of company age on human resources accounting disclosure. The population of this study are banking companies listed on the Indonesia Stock Exchange in 2015-2017 with a sample of 120 samples. The sampling technique uses purposive sampling method. The data used is secondery data. Analytical technique used are descriptive statistical analysis, classical assumption test, multiple linear regression, F test, t test and R2 test. The result of the study concluded that 1.) the value of the company sixe was 2,870 and a significance value of 0,005. This proves that the size of company has a significant positive effect on human resource accounting disclosure, 2.) the profitability value is -0,585 and the significance value is 0,560. This proves that profitability has a negative effect not significant on human resource accounting disclosure and 3.) the value of the company age is 1,616 and the significance value is 0,109. This proves that the age company has no significant positive effect on human resource accounting disclosure.  Keywords: company size, profitability, company age, human resource accounting disclosure


2018 ◽  
Vol 2 (1) ◽  
pp. 96-121
Author(s):  
Iwan Wirawardhana ◽  
Meco Sitardja

The aim of this study is to analyse the effect of Blockholder Ownership, Managerial Ownership,Institutional Ownership, and Audit Committee towards Firm Value. The background of this research isthe agency theory and ownership theory. The population in this study are 46 property companies listedon the Indonesia Stock Exchange (IDX) for the period 2012-2016. By using purposive samplingtechnique, 35 companies are qualified as data samples. This research uses the random effect model asthe estimation model and multiple regression as the method of analysis. The results of this study showsthat Institutional Ownership has a positive effect on Firm Value. Meanwhile, Blockholder Ownership,Managerial Ownership, and Audit Committee have no effect on Firm Value. Moreover, the F-testimplies that the variables, blockholder ownership, managerial ownership, institutional ownership, andaudit committee, simultaneously influence firm value.


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