scholarly journals Is It Necessary to Centralize Power in the CEO to Ensure Environmental Innovation?

2021 ◽  
Vol 11 (1) ◽  
pp. 27
Author(s):  
Beatriz Aibar-Guzmán ◽  
José-Valeriano Frías-Aceituno
Keyword(s):  
Corporate Sustainability ◽  
Economic Effect ◽  
Chief Executive ◽  
Ceo Power ◽  
Environmental Innovation ◽  
International Firms ◽  
Environmentally Sustainable ◽  
Sustainable Products ◽  
Using Data ◽  
The Impact

Using data from a sample of 4863 international firms corresponding to the period 2002–2017, this paper examines the role that chief executive officer (CEO) power plays in environmental innovation and the impact that these strategies have on financial performance. Both issues have been the subject of considerable debate in the literature, with opposite views and contradictory findings. The results indicate that investing in environmental innovations related to the use of clean technologies, ecological production processes, and the design, manufacture and commercialization of environmentally sustainable products requires that CEOs have a greater degree of power in order to support projects that do not entail a higher return in the short and medium terms. Additionally, the results show that the negative economic effect of eco-innovation reverses in the fourth and fifth years after environmental innovations were implemented. Thus, this study supports the view regarding a “bright side” of CEO power with regard to corporate sustainability.

scholarly journals The Role of CEO Power on CSR Reporting: The Moderating Effect of Linking CEO Compensation to Shareholder Return

2021 ◽  
Vol 13 (6) ◽  
pp. 3197
Author(s):  
María Consuelo Pucheta-Martínez ◽  
Isabel Gallego-Álvarez
Keyword(s):  
Ceo Compensation ◽  
Generalized Method Of Moments ◽  
Chief Executive ◽  
Ceo Power ◽  
Csr Reporting ◽  
Thomson Reuters ◽  
Csr Disclosure ◽  
The Impact ◽  
Moderating Role

The aim of this research was to provide further evidence of the impact of the power of the Chief Executive Officer (CEO) on corporate social responsibility (CSR) disclosure. Additionally, we explore the moderating role of CEO compensation linked to shareholder return on the association between CEO power and CSR disclosure. The theories used follow agency theory and stakeholder theory and the sample comprised 9182 international firm-year observations collected from the Thomson Reuters database from 2009 to 2018. Our model was estimated using the generalized method of moments (GMM) estimator. The results found that CEO power was positively associated with CSR disclosure, contrary to our expectations. Additionally, our evidence also shows that CEO compensation linked to shareholder return plays a positive moderating role on the relationship between CEO power and CSR reporting.

scholarly journals Does CEO power influence corporate risk and performance? Evidence from Greece and Hungary

2021 ◽  
Vol 18 (4) ◽  
pp. 77-89
Author(s):  
Um-E-Roman Fayyaz ◽  
Raja Nabeel-Ud-Din Jalal ◽  
Gianluca Antonucci ◽  
Michelina Venditti
Keyword(s):  
Firm Performance ◽  
Good Governance ◽  
Negative Impact ◽  
Market Competition ◽  
Chief Executive ◽  
Ceo Power ◽  
Moderation Effect ◽  
Corporate Decisions ◽  
Corporate Risk ◽  
The Impact

We intend to investigate the impact of chief executive officers’ (CEO) powers on corporate decisions made by firms in the context of board oversight (BO) and market competition (MC). From 2007 to 2017, we applied a quantitative approach to a sample of two stressed European markets (i.e., Hungary and Greece). We found that CEO power has a negative impact on corporate risk and firm performance. Furthermore, results also reveal no sign of moderation effect for MC with corporate decisions, whereas BO moderated the CEO power and corporate decisions in the Hungarian market. However, the results of moderation for the Greek market are diametrically opposed to those of the Hungarian market. Our study indicates that in stressed markets, the CEO power is suppressed and does not increase the corporate risk and firm performance despite the good governance and high market competition. The study can help boards in the optimal delivery of power to the CEO to perform well in a stressed environment

Right “Man” for the Job? The Influence of Gender on Civil–Military Friction

2017 ◽  
Vol 44 (3) ◽  
pp. 460-475 ◽  
Author(s):  
Theresa Schroeder ◽  
Jonathan Powell
Keyword(s):  
Chief Executive ◽  
Female Representation ◽  
Coup D'etat ◽  
Empirical Tests ◽  
Female Legislators ◽  
Women In Parliament ◽  
Using Data ◽  
Coup Risk ◽  
The Impact ◽  
The Relationship

The purpose of this study is to investigate the impact of women in politics on the risk of a coup d’état. Previous research indicates that the relationship between female political leaders and security is dependent on the office she holds. Subsequently, we expect female legislators to have a different influence than a female chief executive on the likelihood of a coup. We argue that a higher level of female representation reduces the risk of a coup d’état. However, we assert that a female chief executive has a different effect and increases coup risk. Using data covering 160 states over the years 1952 to 2009, our empirical tests provide support for our expectations. All else being equal, increased levels of women in parliament lead to a substantial drop in coup likelihood. However, the argument that a female chief executive will be more coup prone is not fully supported in our findings.

scholarly journals CEO power and R&D investment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christine Naaman ◽  
Li Sun
Keyword(s):  
Chief Executive ◽  
Ordinary Least Squares ◽  
Financial Accounting ◽  
Least Squares Regression ◽  
Ceo Power ◽  
Firm Level ◽  
Content Type ◽  
Negative Relation ◽  
The Impact ◽  
D Investment

Purpose This study aims to examine whether and how the power of a chief executive officer (CEO) relates to firm-level research and development (R&D) investment. Design/methodology/approach The authors use clustered standard errors ordinary least squares regression using a large sample of US firms from 1994 to 2017. Findings The authors find a significant negative relation between CEO power and R&D investment, suggesting that firms with more powerful CEOs are less likely to invest in R&D activities. Besides, the study finds that this significant negative relation is largely driven by firms with weaker corporate governance. Originality/value This study contributes to the finance literature on the impact and consequences of having powerful CEOs and the financial accounting literature on the determinants of R&D expenditures.

scholarly journals The impact of CEO power on different measures of environmental disclosure: Evidence from U.S. firms

2020 ◽  
Vol 18 (1, Special Issue) ◽  
pp. 423-437
Author(s):  
Jacqueline Jarosz Wukich
Keyword(s):  
Chief Executive ◽  
Seemingly Unrelated Regression ◽  
Ceo Power ◽  
Environmental Disclosure ◽  
Impact Investing ◽  
Publicly Traded Companies ◽  
Unrelated Regression ◽  
Business Roundtable ◽  
Environmental Disclosures ◽  
The Impact

The purpose of this paper is to investigate if the detriment to environmental (E) disclosures as a result of a chief executive officer’s (CEO) power is different for outcome versus intention-oriented disclosure characteristics. This paper creates four measures to capture the diverse nature of E disclosures that vary in the degree of accountability and comparability they provide: a) qualitative, b) quantitative, c) effectiveness, and d) effort. Seemingly unrelated regression is used on a sample of over 2,200 U.S. publicly traded companies. Findings suggest that the relationship between CEO power and E disclosures is not uniform. Powerful CEOs suppression of the most comparable outcome-based environmental disclosures (effectiveness) is greater than the suppression of other environmental disclosures. This is a particularly relevant relationship given shifts in corporate priorities as demonstrated by the proliferation of impact investing, the growth in E reporting, and the CEO’s stated commitment to maximizing stakeholder wealth that was discussed at the August 2019 Business Roundtable

CEO power and corporate social responsibility

2019 ◽  
Vol 34 (2) ◽  
pp. 93-115 ◽  
Author(s):  
Joel Harper ◽  
Li Sun
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Design Methodology ◽  
Research Question ◽  
Chief Executive ◽  
Ceo Power ◽  
Content Type ◽  
Stakeholder Groups ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of chief executive officer (CEO) power on corporate social responsibility (CSR) performance. Design/methodology/approach The authors use regression analysis to investigate the research question. Findings Using a 23-year panel sample with 1,574 unique US firms and 8,575 firm-year observations, the authors find a significant and negative relation between CEO power and CSR, suggesting that firms with more powerful CEOs engage in less CSR activities. Originality/value The results reveal that more powerful CEOs become less responsive to the needs of stakeholder groups, confirming the validity of the stakeholder theory of CSR.

R&D investment in new technology-based firms

2016 ◽  
Vol 30 (4) ◽  
pp. 278-291
Author(s):  
Michael J. Lynskey
Keyword(s):  
New Technology ◽  
Chief Executive ◽  
Tertiary Level ◽  
Complementary Effect ◽  
New Technology Based Firms ◽  
Using Data ◽  
The Impact ◽  
D Investment ◽  
Industry Experience ◽  
Entrepreneurial Dynamics

This article examines how two core factors – strategic and entrepreneurial dynamics – influence research and development (R&D) investment in new technology-based firms (NTBFs) using data from a questionnaire survey conducted in Japan. Among the strategic dynamics, it is found that joint R&D projects with universities have a positive, complementary effect on R&D investment. Moreover, among the entrepreneurial dynamics, a chief executive officer’s higher education and prior industry experience in an R&D role (the latter implying at least a tertiary-level education in order to have acquired such experience) are positively related to R&D investment. These results indicate that the impact of universities on R&D expenditure in NTBFs occurs in strategic and entrepreneurial dynamics, and is expressed both directly and indirectly, with consequent implications for R&D capability and innovation.

The relationship between CEO personal power, CEO competencies, and company performance

2018 ◽  
Vol 43 (4) ◽  
pp. 188-198
Author(s):  
Samson Amedu ◽  
Victor Dulewicz
Keyword(s):  
Chief Executive ◽  
Share Price ◽  
Company Performance ◽  
Tobin’S Q ◽  
Ceo Power ◽  
Tobin's Q ◽  
Personal Power ◽  
Price Performance ◽  
The Impact ◽  
The Relationship

This article examines the impact of chief executive officer (CEO) power (formal and informal) on company performance and investigates the relationship between the CEO’s power and the company’s financial performance: share price performance, return on assets (ROA), and Tobin’s Q. The research employed both primary and secondary data. A questionnaire collected data from 391 professionals (respondents) in the market and comprised two scales, one adapted from existing research on personal competencies of directors and the second on CEO personal power dimension and demographics. Seven hypotheses were tested. Seven were supported for share price performance, four for ROA and three for Tobin’s Q. The CEO’s is a key role in general management, probably the most important. This is the only study found in the extant literature, which investigates the links between CEO power, competencies, and company performance. It identifies some of the most important characteristics of the effective CEO.

scholarly journals Their Control will Make or Break the Sustainable Clothing Deal-A Study of the Moderating Impact of Actual Behavioural Control on the Purchase Intention-Behaviour Gap for Sustainable Clothing in India

2021 ◽  
Vol 15 (5) ◽  
pp. 82-98
Author(s):  
Jaspreet Kaur ◽  
Neha Bhardwaj
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Marketing Strategies ◽  
Behavioural Control ◽  
Equation Modeling ◽  
Environmentally Sustainable ◽  
The Past ◽  
Sustainable Products ◽  
Proxy Measure ◽  
The Impact

The area of the purchase intention and purchase behaviour gap for consumers buying environmentally sustainable products with respect to the Theory of planned behaviour (TPB) framework has been studied extensively in past literature. But literature is scant when one studies the impact of ‘Actual behavioural control’ on the Purchase intention (PI) and purchase behaviour (PB) gap for the consumption of environmentally sustainable clothing. The TPB theory formulated by Ajzen in 1991 assumes that the actual behavioural control (ABC) will impact the purchase intention in the TPB. As there was no validated scale on the ABC in the past literature. Sheeran et al in 2003 made an attempt in testing the impact of Actual behavioural control on the purchase intention and formulate scale of Proxy measure of actual control (PMAC) in their study. Further Carrington et al. in 2010 tested the impact of the Actual behavioural control as a moderator in the purchase intention-behaviour gap qualitatively. The Empirical testing of the ABC to test the impact as a moderator in the Purchase intention-behaviour gap has never been done in the past studies. This study is the first study which analyses the impact of “Actual behavioural control” through a scale of “Proxy measure of actual behaviour” as a moderator in the PI-PB gap in the framework of the TPB for the consumption of sustainable clothing in India. Data collection has been done from Millennials of India. The research method of Structural equation modeling (SEM) has been used to assess the moderation impact of ABC on the purchase intention-behaviour gap. The findings of the study have shown that the PMAC positively moderates the relation of purchase intention and purchase behaviour for environmentally sustainable clothing. The outcome of the study is important to generate some crucial insights for the marketing strategies for the environmentally sustainable brands in Indian and to predict the behaviour of the Indian consumer towards such products.

scholarly journals Exploring the development of environmentally sustainable products through reward-based crowdfunding

2021 ◽  
Author(s):  
Filippo Corsini ◽  
Marco Frey
Keyword(s):  
Success Factors ◽  
Success Probability ◽  
Environmentally Friendly ◽  
Good Alternative ◽  
High Impact ◽  
Exploratory Research ◽  
Environmentally Sustainable ◽  
Sustainable Products ◽  
Sustainable Product ◽  
The Impact

AbstractLiterature on crowdfunding is rapidly expanding by exploring typologies of crowdfunding projects, success factors of the projects, and how success factors might change depending on the project typologies. Firstly, based on the literature that suggests crowdfunding platforms provide a good alternative for financing innovative ideas, the present exploratory research aims to analyze how the crowdfunding instrument has been used in supporting the development of sustainable products. Secondly, based on researches that focus on success factors of crowdfunding campaigns, the present work aims to explore the success determinants of projects developing sustainable products. The results of the investigation show that the impact of crowdfunding in supporting the development and commercialization of sustainable products is quite marginal and only a few successful projects showed a high impact potential to contribute to the pathway to more sustainability by directing influencing incumbents. Moreover, through an in-depth examination of the campaigns aimed at developing sustainable products, we found that adopting just a generic keyword (i.e. sustainable, ecologic) to describe a sustainable product might weaken the success probability of the campaign. In light of the results achieved, the paper formulates some managerial suggestions illustrating how crowdfunding platforms could stimulate the collection of more environmentally friendly projects.

Sign in / Sign up

Export Citation Format

Share Document