CEO Information Ability, Absorptive Capacity, and E-Commerce Adoption among Small, Medium, and Micro Enterprises in China

The purpose of this study was to explore the relationship between chief executive officer (CEO) characteristics, absorptive capacity, and e-commerce adoption in SMMEs. To achieve this objective, the study analyzed primary data gathered from 2675 small, medium, and micro enterprises (SMMEs) in China. A logistic regression model was employed to estimate how the CEO characteristics and absorptive capacity of SMMEs influenced their e-commerce adoption. The study revealed a significant positive relationship between CEO information ability, confidence, and e-commerce adoption. Additionally, this study confirmed a positive relationship between absorptive capacity and the adoption of e-commerce.

The Impact of Board Diversity, CEO Characteristics, and Board Committees on Financial Performance in the Case of Romanian Companies

This paper examines the impact of board diversity, CEO characteristics, and board committees on the financial performance of the companies listed on the Bucharest Stock Exchange (BSE). In order to test the influence of these characteristics, detailed data on more than 70 firms are collected by hand, for the 2016–2020 period, and comprehensive regression models are estimated. The findings show that there are positive effects of board diversity especially with regard to the independent board members. In terms of the board committees, the audit committee is found to have a favourable influence. The regression coefficients imply that a 10% increase in the share of independent board members would be associated with a 0.93% increase in ROE. Based on these findings, it can be argued that improving the corporate governance practices of the companies listed on the BSE would increase the performance and the value of these firms.

Through the rhetoric art: CEO incentives in sustainability sensitive industries

Purpose This paper aims to explore the relationship between the readability of sustainability reports and chief executive officer (CEO) attributes, comprising monetary, non-monetary incentives and personal characteristics. Design/methodology/approach The study is based on an international sample of companies operating in sustainability-sensitive industries during 2016–2018. Findings The results prove that CEO monetary incentives, as well as CEO non-monetary incentives, negatively influence the readability of sustainability reports, revealed in a positive relationship with readability indexes, by providing reports with greater reading difficulty. Additionally, this study shows evidence about the relation of complementarity between these incentives. Other CEO characteristics have no significant effect on the readability of sustainability reports. Originality/value This research sheds the light on the role of CEO incentives in obfuscating sustainability information to portray the company, operating in sustainability-sensitive industries, in a favorable image.

CEO characteristics, management support for internal audit and corporate performance: an analysis of listed Malaysian companies

Purpose This study aims to advance the discussion on internal audit (IA) findings by empirically investigating the relationship between chief executive officer (CEO) characteristics and the IA function, particularly IA findings and implementing IA recommendations and examining whether CEO and management support for IA moderate the effect of the recommendations on corporate performance. Design/methodology/approach Data were gathered from two sources. A survey was conducted, directed at 217 heads of internal audit (HIAs) in listed companies on the Bursa Malaysia, and the annual reports of these companies for the period of 2018–2019 were consulted. A second survey was directed at audit committee chairs to obtain a perspective from other parties. Findings The results indicate that although CEO characteristics are not significantly associated with the number of IA findings, only CEO experience has a significant relationship with the level of the implementation of IA recommendations. The study also demonstrates that management support for IA is positively associated with corporate performance. Further, CEO experience and management support for IA increase the effects of the level to which those recommendations are implemented on corporate performance. However, the effect of management support on corporate performance is eliminated when it interacts with the involvement of CEOs in the HIA appointment and when these HIAs report directly to CEOs. Practical implications These outcomes provide implications for policymakers, regulators and researchers. Malaysia’s regulatory authorities, as well as those in other countries, particularly emerging markets where the institutional and cultural environments have similar characteristics, could consider the evidence of the relationship between the CEO’s financial background, management support for IA and IA recommendations when guiding companies about the mechanisms for appointing HIAs. Simultaneously, the results obtained could be useful when auditors are involved in risk assessment and rely on IA recommendations. Originality/value This study adds to the literature on the significant relationship between CEO characteristics (particularly CEO experience) and the level of implementing IA recommendations. It advances the research efforts on management support for IA by providing empirical evidence of how such support fosters a greater role for IA in improving corporate performance, as well as moderates the effect of IA in that endeavour. Further, the present study contributes to the developing literature on determinants of corporate performance by considering how these variables perform in the Malaysian setting.

Socioemotional Wealth (SEW) of Family Firms and CEO Behavioral Biases in the Implementation of Sustainable Development Goals (SDGs)

Agreed upon by the UN member states, Agenda 2030 assumes joint action for long-term sustainable development. These actions are focused on the implementation of 17 Sustainable Development Goals (SDGs), where actions are assumed to lead to the suppression of negative externalities of human activity. It is stressed that the objectives of sustainable development can only be achieved through deep institutional changes in most dimensions of the economy, including the entrepreneurship dimension. Entrepreneurship plays a pivotal role in the sustainable transformation of the community, as the related activities of companies are the source of the desired structural changes. Entrepreneurial projects make the biggest contribution to the objectives of sustainable development through research and development, investment in new technologies, and innovation. The biggest threat to sustainable entrepreneurship is firms’ aggressive corporate financial strategy, which most often results from CEO overconfidence and aggressive financial behavior. The aim of the article is to indicate differences in corporate financial strategies regarding the status of the company (family or non-family) and CEO characteristics (overconfident or non-overconfident). The fulfilment of this aim by analyzing a selected EU member country (Poland) found more aggressive behavior of overconfident CEOs in non-family firms. It was also found that family firms are a fairly coherent group of companies that implement a more conservative corporate financial strategy regardless of CEO characteristics. We can state that family power can curb CEO overconfidence and its impact on aggressive financial strategy. This means that family firms are much more able to create sustainable entrepreneurship and contribute to Sustainable Development Goals (SDGs) within a market framework.

The Influence of CEO Characteristics on Firm Risk-taking: Evidence from UK SMEs

La exposición al riesgo de la empresa sigue siendo motivo de preocupación para los investigadores y los inversores. Se cree que la propensión a asumir riesgos de la empresa es un reflejo de los rasgos y características personales de la alta dirección. Por lo tanto, es fundamental explorar la relación entre varias características de la alta dirección y la propensión de la empresa a asumir riesgos. Esta investigación proporciona evidencia empírica del Reino Unido sobre las relaciones entre la edad, el mandato, la educación y la conexión política del CEO con la toma de riesgos de la empresa. Se emplean varias técnicas de estimación para determinar la idoneidad de los resultados. El estudio informa una asociación significativa de las características del CEO con el comportamiento de toma de riesgos de la empresa. Específicamente, se informa que la antigüedad y el mandato a largo plazo del CEO tienen una influencia negativa en la toma de riesgos de la empresa, mientras que los CEO la participación política y la educación influyen positivamente en el riesgo de la empresa. Con base en los hallazgos dados, se da a entender que, con el paso del tiempo, los ejecutivos comienzan a limitar sus perspectivas al pasar por alto la información y las oportunidades dadas. Por lo tanto, esta mentalidad estrecha los restringe a tomar más riesgos. Por lo tanto, tomar decisiones menos riesgosas en la vejez y con una antigüedad más larga.Por el contrario, la formación superior de los directores ejecutivos mejora su base de conocimientos y sus habilidades analíticas, lo que una vez mejora positivamente su toma de decisiones estratégicas y se sienten más motivados para tomar decisiones arriesgadas. Esta investigación también destaca la importancia de la conexión política, que es una fuente de poder y seguridad que fortalece el control de los directores ejecutivos sobre la empresa. Por lo tanto, los CEO con conexiones políticas toman decisiones más arriesgadas en comparación con sus contrapartes no políticas.

CEO Characteristics and Environmental Performance: Evidence from Indonesian Banks

Following the paradigm shift of company performance, from merely financial aspects to the balance between economics and environmental aspects, a study that explores the drivers of company environmental performance is indispensable. This study aims to empirically examine the role of CEO characteristics in determining the environmental performance from CEO's gender, age, expertise, and international experience in Indonesian banks. We use secondary data from banks' annual and sustainability reports that were analysed using panel data regression. The results demonstrate that CEO's international experience and education level positively affect bank's environmental performance while foreign CEO and CEO's abroad study exhibit negative effect. Our findings emphasise that CEO plays a great role in initiating banks' environmental activities. CEO's decision is crucial to adopt environmental practice that leads to better environmental performance. The study contributes to the Indonesian literature by providing empirical evidence of CEO factors in determining banks' environmental performance, in which there are very limited studies examining the role of CEO. We also suggest the Indonesian Financial Service Authority to encourage banks to deliver higher environmental contribution by maximizing the role of CEO.