EVALUATING THE ROLE OF EDUCATION AND HUMAN CAPITAL IN POVERTY REDUCTION AND INCLUSIVE GROWTH IN SOUTH ASIA

Economic growth necessitates the development of human capital and education. It plays a critical and necessary role in the formulation of income distribution policies and alleviating poverty. This study investigates the relationship through ordinary least square (OLS), fully-modified OLS and dynamic OLS models using panel data from the South Asian Association for Regional Cooperation (SAARC) countries from 1990 to 2018. According to the findings, imbalance plays an important role in influencing poverty and concludes that the government should embrace procedures that help improve pay distribution to reduce poverty at the strategy level. Furthermore, the findings state that a bi-directional Granger causality exists between schooling and poverty. In terms of strategy, SAARC countries should continue to increase the proportion of sustainable energy used for financial development, thereby decreasing the use of fossil energy for environmental improvements. Additionally, this study shows that the association of pay disparity hoses the positive effect of financial development on poverty, and it supports the contention that the degree of imbalance reduces the impact of comprehensiveness. Pay disparity is now a critical determinant of poverty.

CEO pay and family firm heterogeneity: A behavioral agency model perspective

We study the effects of family control on CEO pay from the perspective of behavioral agency model (BAM), with particular focus on family firm’s generational stage and CEO family ties. Using a panel of Australian listed firms, we find that family firms present lower total and variable CEO pay, showing also less pay disparity between the CEO and other top executives. We also find that multi-generational family firms and those run by non-family CEOs offer higher total and variable CEO pay and present high pay disparity. The BAM and family’s aversion to socioemotional wealth loss can explain the effects of family control based on the pursuing of non-financial family goals. The decline of these goals derived from the aging of the firm and the hiring of external CEOs shape family control and should be considered in the design of executive compensation policies and by external parties when assessing their suitability. JEL CLASSIFICATION: G30; G32; G34; G38

Economics And Management

Employees do not just perform in accordance with their own pay but also the pay of their peers. Pay inequality can act as a disincentive, reducing employee output and attendance by a significant amount. It is irrelevant whether they have a higher or lower salary than that of their co-workers. Pay disparity also lowers the ability of employees to work in their own interests and cooperate with other workers effectively. Pay inequality may have no discernible effect if an employee is aware that a peer with a higher salary produces a greater output than them.

Can TMT vertical pay disparity promote firm innovation performance? The moderating role of CEO power and board characteristics

PurposeBased on the tournament theory and the principal agent theory, this study aims to empirically investigate how top management team (TMT) vertical pay disparity (the pay disparity between the CEO and non-CEO executives) influences firm innovation performance.Design/methodology/approachThis study empirically tested the hypotheses based on a sample of listed high-tech companies in China during the period between 2007 and 2018.FindingsTMT vertical pay disparity promotes innovation performance; CEO power undermines the positive effect of TMT vertical pay disparity on innovation performance; the negative moderating effect of CEO power is mitigated by board age and gender and educational levels, whereas the proportion of female directors has no such effect at any significant level.Originality/valueThis study uniquely contributes to the theoretical and empirical development of tournament theory and the principal agent theory.

Grounded theory in management research: through the lens of gender-based pay disparity

PurposeThe purpose of this study is to apply grounded theory in management research in the context of gender-based pay disparity and showcase the applicability of the method in deriving a new theory toward describing the factors responsible for the slow career advancement of women compared to men across various employment sectors. This study is focused mainly in the northern part of India.Design/methodology/approachA cross-sectional qualitative study was conducted across participants chosen by purposive sampling. Data were collected through in-depth interviews after taking informed consent with an inclusion criterion of some years of work experience. Grounded theory method was used to analyze the data found through qualitative research.FindingsThrough the grounded theory research method, an in-depth understanding of factors responsible for pay disparity as faced by women at work has emerged. Also, factors responsible for the slow career advancement of women employees viz. social construct of gender, workplace representation of gender, perceptions/perspectives of managers regarding genders, lack of multi-step affirmative actions have also emerged from the data.Research limitations/implicationsGreater understanding has been gained toward the applicability of grounded theory as a method for expounding various aspects of management and theorizing them.Practical implicationsGreater understanding has been gained toward the applicability of grounded theory as a method for expounding various aspects of management and theorizing them.Originality/valueThis particular work showcases the intent and applicability of the grounded theory research method in management research by studying gender-based pay disparity. Through this method, barriers faced by women in pay parity across various employment sectors in the northern part of India were ascertained, leading to the emergence of various probable solutions as well.