scholarly journals Impacts of Top Five Executives’ Compensation on Employee Wages

2021 ◽  
Vol 12 (1) ◽  
pp. 242
Author(s):  
Qianqian Li ◽  
Unyong Pyo
Keyword(s):  
Firm Performance ◽  
Executive Compensation ◽  
Top Management Teams ◽  
Incentive Compensation ◽  
Top Management ◽  
Top Executives ◽  
Technology Firms ◽  
Performance Sensitivity ◽  
Long Run ◽  
Negative Impacts

This paper studies the impacts of incentive compensation to top five executives on employee wages. We employ pay-performance sensitivity to measure executive incentive compensation. Using the sample during 1992 – 2017, we find that executive compensation has negative impacts on employee wages. In addition, we examine the impacts of executive incentive compensation on employee wages in different industries and find that the impacts are more severe in technology firms than in non-technology firms. Finally, we show that the executives with higher incentive compensation are more likely to suppress employee wages in financially safe firms. Our results suggest that while top management teams are compensated as a team on average, they are compensated as isolated individuals on other aspects. Furthermore, firm performance may not always improve in the long run by granting high incentive compensation to top executives.

scholarly journals Management Accounting Systems, Top Management Teams, and Sustainable Knowledge Acquisition: Effects on Performance

2020 ◽  
Vol 12 (5) ◽  
pp. 2132
Author(s):  
Andrés F. Ugalde Vásquez ◽  
David Naranjo-Gil
Keyword(s):  
Firm Performance ◽  
Knowledge Acquisition ◽  
Management Accounting ◽  
Top Management Teams ◽  
Management Teams ◽  
Mediating Effect ◽  
Top Management ◽  
Accounting Systems ◽  
Management Accounting Systems ◽  
Acquisition Processes

Organizations are increasingly aware of the importance of managing the acquisition processes of new and sustainable knowledge, which allows them to increase performance. These knowledge-acquisition processes require top management teams to focus on the external environment to search for sustainable opportunities and initiatives. This spurs top teams to make strategic decisions that require more comprehensive managerial information, which is provided by management accounting systems. Our research analyzes how top management team composition facilitates the acquisition of new knowledge. Our management accounting paper also analyzes the mediating effect of the interactive use of management accounting systems (MASs) and their impact on sustainable firm performance. A survey was conducted among the main manufacturer firms in the Republic of Ecuador. Results were analyzed by using the partial least squares methodology, and they showed a positive effect for the interactive use of management accounting systems on sustainable knowledge-acquisition processes. Results also showed that knowledge acquisition increased firm performance through an interactive use of MASs.

The Inclusion of CIOs in Top Management Teams

2016 ◽  
Vol 29 (3) ◽  
pp. 37-52 ◽  
Author(s):  
Wenhong Luo
Keyword(s):  
Organizational Factors ◽  
Top Management Teams ◽  
Top Management ◽  
Data Set ◽  
Top Executives ◽  
Firm Diversification ◽  
Upper Echelons Theory ◽  
Role Of It ◽  
The Relationship

The inclusion of the CIO in the top management team (TMT) is one indicator of how top executives view the role of IT within their firms. This study draws upon the upper echelons theory to examine the organizational factors contributing to the CIO inclusion. A panel data set is used to empirically test the hypotheses. The results show that TMT age and firm diversification are found to be linked to the CIO inclusion. The study contributes to an understanding of the relationship between the CIO and TMT and provides a potential measure of IT importance within firms.

Using Causal Mapping to Uncover Cognitive Diversity within a Top Management Team

2005 ◽  
pp. 203-232 ◽  
Author(s):  
David P. Tegarden ◽  
Linda F. Tegarden ◽  
Steven D. Sheetz
Keyword(s):  
Firm Performance ◽  
Top Management Team ◽  
Black Box ◽  
Top Management Teams ◽  
Management Team ◽  
Top Management ◽  
Cognitive Diversity ◽  
Causal Mapping ◽  
And Cluster Analysis ◽  
Cognitive Factions

The cognitive diversity of top management teams has been shown to affect the performance of a firm. In some cases, cognitive diversity has been shown to improve firm performance, in other cases, it has worsened firm performance. Either way, it is useful to understand the cognitive diversity of a top management team. However, most approaches to measure cognitive diversity never attempt to open the “black box” to understand what makes up the cognitive diversity of the team. This research reports on an approach that identifies diverse belief structures, i.e., cognitive factions, through the use of causal mapping and cluster analysis. The results show that the use of causal mapping provides an efficient and effective way to identify idiosyncratic and shared knowledge among members of a top management team. This approach allows the cognitive diversity of the top management team to not only to be uncovered, but also to be understood.

scholarly journals Strategy patterns and corporate competitive advantage in hypercompetition

2018 ◽  
Vol 69 (3) ◽  
pp. 229-250 ◽  
Author(s):  
Maja Daraboš Longin
Keyword(s):  
Competitive Advantage ◽  
Market Power ◽  
Strategic Behavior ◽  
Top Management Team ◽  
Top Management Teams ◽  
Management Team ◽  
Top Management ◽  
Special Focus ◽  
Long Run ◽  
Firm Response

Action aggressiveness is considered as a firm response to the phenomenon of temporary advantage. Firms able to respond quickly to market demands strengthen their market power and generate advantages; but those that can be even faster, will generate even greater market power and advantage over its competitors. However, there is no guarantee that competitive advantage achieved today will remain unchanged in the long run. The focus is on being prepared to take an action, i.e. the extent to which the firm is willing to participate with competitors and act quickly in the involvement and participation. The dynamics of top management is a very important component of the ability of the firm competitive behavior. The top management team is the kingpin that coordinates and mobilizes organizational resources and efforts for firms’ aggressive competitive engagement. The assumption of being more aggressive at the market and collaborative with competitors is the integration of top management of the firm that depends primarily on compatible traits and members’ communication skills. With a special focus on top management teams, this paper explores the extent to which firms’ certain strategic behavior in hypercompetitive industry can be related to gaining temporary competitive advantage, measured through improving its firm performance. The central goal of this research is to theoretically and empirically define and examine firms’ strategic behavior in hypercompetition through defining new taxonomy of strategy patterns, i.e. firm specific strategic behavior that provides and raises the probability of gaining the competitive advantage in hypercompetitive industries. An important contribution of this research is also reflected in the development of the model that analyze the influence of specific characteristics of top management team (TMT) on pattern firm uses, as well as the relationship between firms’ market position on specific strategic behavior.

Top Management Teams’ Academic Experience and Firms’ Corporate Social Responsibility Voluntary Disclosure

2020 ◽  
Vol 16 (2) ◽  
pp. 293-333
Author(s):  
Zhiming Ma ◽  
Hong Zhang ◽  
Weiguo Zhong ◽  
Kaitang Zhou
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Top Management Teams ◽  
Management Teams ◽  
Top Management ◽  
Academic Background ◽  
Top Executives ◽  
Csr Disclosure ◽  
Corporate Social

ABSTRACTCorporate social responsibility (CSR) disclosure is becoming increasingly important for modern corporations. Focusing on voluntary CSR disclosure and drawing on upper echelons theory, we propose that voluntary CSR disclosure is the manifestation of managerial preferences (e.g., managers’ professional ethical values and standards). Specifically, we argue that top executives with an academic background tend to have higher professional and ethical standards than their non-academic counterparts. These standards lead them to act with self-restraint and to perceive CSR disclosure as an opportunity rather than a threat. Compared with non-academic executives, therefore, top executives with an academic background provide stakeholders with more CSR information. Based on a sample of publicly listed firms in China, we find a significant difference in voluntary CSR disclosure between firms led by academic executives and firms without academic top executives. This difference is smaller for firms that are state-owned, firms that are audited by large audit firms, and firms with greater analyst coverage. We contribute to the literature on CSR voluntary disclosure by providing an in-depth analysis of the effects of top management teams’ academic backgrounds.

Dynamic modeling of strategic thinking for top management teams and its impact on firm performance: a system dynamics approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aqueeb Sohail Shaik ◽  
Sanjay Dhir
Keyword(s):  
Firm Performance ◽  
System Dynamics ◽  
Modeling And Simulation ◽  
Top Management Teams ◽  
Strategic Thinking ◽  
Top Management ◽  
Psychological Traits ◽  
Content Type ◽  
Psychological Constructs ◽  
Thinking Process

PurposeThe purpose of this study is to model the strategic thinking process, considering the different psychological traits of TMTs (top management teams) and how the technological dynamism affects the strategies framed together impacting the performance of the firm.Design/methodology/approachModeling and simulation are done in this study using the system dynamics (SD) tool. The data are extracted using social media analytics, and the same is given as an input for the SDmodel, which is used for modeling and simulation of the interdependencies between the psychological factors, technological dynamism and firm performance. The analysis decodes how a change in the thinking process of a TMT has an impact on the performance of the company in an automobile market.FindingsThe study has explained how different psychological traits affect the thinking process of a TMT and how the strategies framed with this thinking behavior have an impact on firm performance.Research limitations/implicationsThe study is limited only to the automobile industry in India, and only partial psychological constructs were considered to examine their impact on firm performance. This study can be further extended by analyzing the same to various other industries along with many other psychological constructs.Practical implicationsThe findings identify the change in behavior of the performance due to the thinking process and technological dynamism. This helps the top management to take into consideration different factors that affect the strategies framed for the company and what are the threshold points in the system that are to be focused on during the framing of a strategy.Originality/valueThe study fills the unattended gaps in the literature regarding how the psychological traits are interdependent and how their relationship is affecting the thinking process, which is going to have an impact on the behavior of the firm performance. It also adds to the literature of systems thinking.

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