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This study assesses the effects of CEO power on green innovation and, more importantly, explores how different performance feedback affects this relationship by considering the positive and negative aspects of financial and environmental performance feedback. We further discuss how institutional investors respond to the decision‐making of powerful CEOs on green innovation. By using Chinese manufacturing observations, we find that although powerful CEOs positively promote firms' green innovation, this positive effect does not apply to all conditions. The impacts of CEO power on green innovation are different under the positive and negative aspects of performance feedback, and under financial and environmental performance feedback. Accordingly, heterogeneous institutional investors respond differently to these various situations. Specifically, pressure‐resistant institutional investors serve as 'supervisors' under the positive aspects of financial and environmental performance feedback and shift to 'bystanders' under the negative aspects of financial and environmental performance feedback. Pressure‐sensitive institutional investors always act as 'bystanders' under different performance feedback. [ABSTRACT FROM AUTHOR]

We investigate the increasingly common practice of chief executive officers (CEOs) taking public stances on social and political issues (CEO activism). We find that CEO activism stems from a CEO's personal ideology and its alignment with investor, employee, and customer ideologies. We show that CEO activism results in positive market reactions. Furthermore, firms with CEO activism realize increased shareholdings from investors with a greater liberal leaning, who rebalance their portfolios toward these firms. Our results suggest that investors' socio-political preferences are an important channel through which CEO activism affects equity demand and stock prices. Notably, CEOs are less likely to be fired when their activist stances generate positive market responses. This paper was accepted by Victoria Ivashina, finance. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2023.4971. [ABSTRACT FROM AUTHOR]

Digital transformation, as a global trend, has captured a lot of attention from management. How management allocates attention resources has become an important issue if a firm plans to pursue digital transformation. We provide an empirical analysis for this problem from the perspective of the attention-based view. We use data from 493 listed Chinese manufacturing firms from 2012–2020 to examine how the allocation of top management team (TMT) attention to digital transformation affects innovation activities. The results reveal that TMT attention to digital transformation and its intensity has a positive impact on corporate innovation activities, while the breadth of attention exhibits an inverted U-shaped impact on innovation activities. These findings are consistent with theoretical predictions. We also examine the moderating roles of external factors such as market conditions, corporate ownership, CEO duality, and policy support that distract managers' attention, and reveal different characteristics of moderating role of Chinese state-owned firms. These findings provided a reference for further promoting digital transformation. [ABSTRACT FROM AUTHOR]

Copyright of Gazi Journal of Economics & Business is the property of Gazi Journal of Economics & Business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examines how abnormal trading volumes reflect new information, such as CEO-related announcements. Using hand-collected data on 1,236 CEO reappointments and turnovers from Polish firms listed on the Warsaw Stock Exchange, we show that investor reaction to CEO-related announcements is stronger in the winter-spring season than in the summer-fall season. However, in the summer-fall season, CEO reappointment triggers higher trading activity than CEO turnover announcements, while in the winter-spring season, the reaction is opposite. We also discover that abnormal trading volumes induced by CEO-related announcements are significantly lower at the beginning and end of the week than in the middle of the week. Furthermore, when it comes to day of the week anomalies, investors are much less interested in CEO reappointment than in turnover. The findings suggest that calendar effects influence investor reactions to CEO appointments, offering new insights into market anomalies and corporate governance mechanisms. [ABSTRACT FROM AUTHOR]

This study examines the role of foreign institutional ownership in corporate social responsibility (CSR). Using the Shanghai-Hong Kong Stock Connect as a quasi-natural experiment, our difference-in-differences estimation shows that foreign institutional ownership drives firms' CSR corporate social responsibility. Further, the positive effect of foreign institutional ownership on CSR is motivated by foreign institutional investors shifting the stakeholders' logics about social responsibility, not by profit maximization. We also provide evidence that this effect of foreign institutional ownership on CSR is more pronounced among firms with fewer political connections and with non-overconfident CEOs. Overall, our results indicate that foreign institutional investors transmit social norms and shift stakeholders' logics regarding social responsibility and, in turn, propel firms to improve CSR to satisfy their stakeholders' expectations. [ABSTRACT FROM AUTHOR]

CEOs play a vital role in formulating corporate digital transformation and their cognitions and behaviours are often shaped by their experience. However, few studies have explored the impact of CEOs’ experience, especially foreign experience, on firms’ digital transformation. Drawing on upper echelons theory, we examine how CEO foreign experience affects corporate digital transformation. Since CEO foreign experience is one valuable human capital resource, we also examine how it interacts with other firm resources to affect digital transformation. Using a large sample of Chinese listed firms from 2007 to 2019, we find a significantly positive effect of returnee CEOs on corporate digital transformation. This effect is also strengthened by firm slack but weakened by the presence of digital leaders. Overall, our study suggests that returnee CEOs matter for corporate digital transformation, offering important implications for firms and government in emerging economies. [ABSTRACT FROM AUTHOR]

We investigate how the cultural heritage of bank CEOs shapes the relationship between public corruption and the cost of syndicated loans in the US market. We show that banks led by CEOs that trace their origin in high uncertainty avoidance societies penalize less sharply in loan pricing the presence of high local public corruption in the state of the borrowing firms. We find some similar evidence for banks led by CEOs that trace their origin to more individualistic societies. These findings are consistent with the view that certain cultural traits prompt tolerance for the risks of corruption and show that the pricing of institutional quality in corporate loans is conditional on banks led by CEOs with such traits. [ABSTRACT FROM AUTHOR]

Enterprises are drawing growing criticism for violating environmental rules. The research examines whether and how top executives' mental bias leads to corporate environmental misconduct (CEI). Drawing on upper echelon theory (UET) and agency theory, we link CEO overconfidence with CEI, and explore the boundary conditions from the perspective of management discretion at the governance level. Using a data set covering the Chinese listed enterprises from 2004 to 2016, the empirical results demonstrate that CEO overconfidence positively and markedly influenced CEI. Moreover, shareholder concentration and CEO duality reinforce the relationship between overconfidence and CEI, whereas board independence is the opposite. The findings clarify ecological outcomes of CEO overconfidence and have remarkable significance in theory and practice. [ABSTRACT FROM AUTHOR]

This paper explores the impact of the CEO's supervisory role as an independent director on firm performance, utilizing measures such as Return on Equity (ROE) and Tobin's Q. The supervisory effect is assessed through the remuneration of directors and supervisors. Empirical findings indicate a significant supervisory role when the CEO also serves as an independent director. Whether viewed from the perspective of shareholders' equity or company growth, the CEO's involvement as an independent director positively influences firm performance. Furthermore, the concurrent roles of CEO and independent director contribute to enhanced firm performance, irrespective of their relationship. [ABSTRACT FROM AUTHOR]

Since the Chinese government proposed the Belt and Road Initiative (BRI) in 2013, Chinese firms have been actively investing in countries participating in BRI. What kinds of firms are willing to respond to this geopolitical policy? According to resource dependence theory and resource-based view, this study examines the impact of CEO political connections on outward foreign direct investment (OFDI) in the context of BRI and its boundary conditions. The results show that CEO political connections can promote firm OFDI under BRI. However, a good institutional environment in the home region and host country weakens the positive impact of CEO political connections. Furthermore, central state ownership has a substitute role for CEO political connections. [ABSTRACT FROM AUTHOR]

The pressing global issue of climate change has led to increased scrutiny over corporate environmental practices, particularly carbon emission disclosures. This research aims to examine the influence of environmental performance and corporate governance mechanisms on carbon emission disclosure within the transportation and logistics sector in Indonesia from 2018 to 2023, with a specific focus on the moderating role of CEO power. By using a quantitative research design and panel data regression analysis, the study explores how environmental performance and board size affect carbon emission disclosure and assesses the impact of CEO power in moderating these relationships. The findings reveal that environmental performance and board size do not significantly impact carbon emission disclosure. This study contributes to the literature by emphasizing the crucial role of CEO power in enhancing corporate transparency regarding environmental performance and highlights the need for robust governance to improve ecological accountability. The results offer valuable insights for policymakers and corporate managers in developing governance frameworks that promote transparency and sustainable practices. [ABSTRACT FROM AUTHOR]

The impact of corporate governance mechanisms has been examined directly and independently, considering that such characteristics compete to explain environmental, social, and governance (ESG) performance. However, the nexus may be more complex than that suggested by most scholars, and more research is needed. This study applied a fuzzy-set qualitative comparative analysis to a sample of Spanish-listed companies in 2018–2020 to explore how good governance practices interact with CEO profiles to promote corporate sustainability practices. Our analysis discovered the importance of establishing sustainability committees and identified five pathways shaping governance practice bundles. Specifically, listed companies with a high code of good governance (GGC) compliance and a sustainability committee improve high ESG performance globally and for each ESG dimension. Furthermore, the effect is more relevant than the effect of the CEO profile, requiring either CEO duality (pathway 1) or extended CEO tenure (pathway 2). Concurrently, findings indicate three CEO profile configurations for GGC-neutral firms, providing companies with more flexibility in CEO selection. Two suggest that younger CEOs with longer tenure tend to be more motivated to engage in the G and S pillars (pathways 3 and 5). The third indicates that CEOs of older age and early tenure improve the E pillar (pathway 4). [ABSTRACT FROM AUTHOR]

This study investigates the posting strategies of CEOs of Latin American companies on LinkedIn and their impact on engagement. It examines activity levels and types of presence, and engagement rates. Based on a quantitative analysis, the results reveal that executives in this region have a significantly lower frequency of posting on LinkedIn compared to the averages recommended by experts. Regarding the type of presence, CEOs are “content creators” and mainly post their own content. The engagement analysis shows discrepancies between own and hybrid posts. Due to the originality of own content, it receives better engagement rates than hybrid posts. The findings reveal that most Latin American CEOs adopt a “passive funnel” posting strategy on LinkedIn, which is characterized by low activity and own content. It is striking that CEOs with a more passive approach tend to have higher engagement rates compared to those with a more active approach. From these findings it is clear that, although authentic content generates interaction, CEOs should take advantage of the potential of shared publications, which are characterized by fostering dialogue based on content with diverse perspectives, a particular feature of the actors and institutions of the business environment. This research assesses the potential of CEOs as institutional communicators and provides methodological guidelines for academics and professionals in charge of the publication strategies of organizations and managers in the region. [ABSTRACT FROM AUTHOR]

While the literature on corporate social responsibility (CSR) has been growing, there is still a limited understanding of the connection between CSR reporting and corporate misconduct, especially in cases where the decision-making process is influenced by interactions between top management teams (TMTs) and boards of directors. The present study aims to fill this gap by exploring how this relationship is affected by factors such as chief executive officer (CEO) career horizon, TMT heterogeneity, and board size. This study develops and tests hypotheses with a sample of 90 construction firms in China from 2008 to 2017. The findings indicate that firms voluntarily issuing CSR reports are more likely to engage in illegal activities when the CEO career is longer and TMT heterogeneity is lower. Regarding the moderating role of board size, the result shows that large board size may not always imply better monitoring. While the positive impacts of CSR have been extensively emphasized, this study provides confirmation that it can also potentially lead to adverse behavior, such as corporate misconduct. Aligned with the upper echelon theory, this study substantiates the moderating roles of CEOs and TMTs. These findings are poised to make a contribution to the academic domain of CSR by elucidating the potential adverse outcomes of CSR activities and delineating the boundaries within which such outcomes occur. Practical Applications: This study endeavors to confront the recurring issue of corporate misconduct within the construction industry through an investigation into the impact of CSR reporting in conjunction with corporate governance mechanisms. The empirical findings reveal an intriguing trend: companies that voluntarily engage in CSR reporting are more susceptible to misconduct, particularly when helmed by long-tenured CEOs and TMTs characterized by limited diversity. Notably, the study also finds that board size does not significantly influence the CSR-reporting-misconduct relationship, suggesting that merely enlarging the board does not guarantee improved oversight. To address this issue, companies are advised to transition from a singular focus on CSR reporting to a comprehensive overhaul of their governance and management systems. Specifically, appointing CEOs with shorter decision horizons is touted as a promising strategy, alongside augmenting TMT diversity to balance diverse stakeholder demands and enhance decision-making quality. Moreover, government agencies are encouraged to refine existing corporate laws and regulations to promote greater TMT diversity. Through the diligent implementation of these multifaceted strategies, the construction industry can proactively mitigate instances of corporate misconduct and cultivate a genuine commitment to CSR activities, fostering a more ethical and responsible business environment. [ABSTRACT FROM AUTHOR]

The construction industry has long been regarded as a relatively conservative and less innovative sector. Adjusting corporate governance structure is an effective method to promote innovation in the construction industry, as it can internally address the reluctance to innovate within companies. While it is widely known that the chief executive officer (CEO) plays a crucial role in firm innovation, few studies have explored the effects of CEO duality on innovation from a corporate governance aspect, which serves as a pressing need for construction industry. This study investigates the influence of CEO duality and its important moderating variable, CEO overconfidence, on corporate innovation based on a sample of stock-listed China construction companies and their patent data from 2009 to 2022. Quantile regression is applied to deeply investigate the variation in the impact of CEO duality throughout different conditional quantiles of the construction innovation performance distribution. The results demonstrate a favorable correlation between CEO duality and corporate innovation performance, and the promotion effect of CEO duality is more significant for firms with lower innovation performance. Additionally, CEO overconfidence negatively moderates the impact of CEO duality on corporate innovation. These findings indicate that CEO duality plays a noteworthy role in promoting corporate innovation within the construction industry and more effective corporate governance mechanism is needed to control CEO overconfidence, which promotes the negative impact of CEO duality. The research provides a research framework for exploring the dynamic impact of corporate governance structures on firm performance in the future. The results of this study are of significant importance for both the theoretical understanding and practical implementation of corporate governance mechanisms in the construction industry. [ABSTRACT FROM AUTHOR]

Copyright of Australian Accounting Review is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The present study investigates whether CEO initial tenure is essential in establishing CSR practices. In further analysis, we contemplate the consequences of CEO's initial service tenure CSR engagement. Our analysis is based on the sample of Chinese-listed firms from 2009 to 2019 periods—the research study used a fixed-effect panel approach for analyzing the dataset. A two-stage-least square test is then used to address the endogeneity problem. The study's findings manifest that CEO tenure is negatively and significantly associated with CSR practices. In an additional analysis, the study reveals that CEOs have more significant career concerns in the initial service period than afterward in their later service period. Therefore, CSR practices increase in CEO's initial service tenure. Moreover, the study documented that the CEO's CSR engagement in their initial tenure has a positive-and-significant association with their compensation package and lessens the risk of dismissals. Finally, we demonstrate that CEOs concentrate more on CSR practices in coastal regions of China. This research is helpful for policymakers in devising CSR policies and making corporate governance decisions. [ABSTRACT FROM AUTHOR]

Intermittent exporting (repeatedly exiting and reentering foreign markets) is often associated with the initial stages of internationalization. However, some small and medium-sized enterprises (SMEs), including family firms, pursue an intermittent exporting strategy beyond the initial stages. Drawing on a refinement of the behavioral agency model (BAM) and real options reasoning, we theorize that a high level of family involvement in SMEs is positively associated with intermittent exporting. We also argue that this relationship is moderated by Chief Executive Officers (CEOs) and board members with a foreign background. We test our hypotheses using a unique longitudinal dataset of Swedish SMEs in the manufacturing and retail industries. [ABSTRACT FROM AUTHOR]

This study examines the performance target response to CEO overconfidence. Using unique handcollected data on the annual bonus targets of Standard & Poor's (S&P) 1500 firms, we find that boards ratchet targets more aggressively and apply greater ratcheting asymmetry for overconfident CEOs than for non-overconfident CEOs. These findings are robust to a battery of sensitivity tests. We also provide evidence that the increase in target ratcheting for overconfident CEOs is particularly more pronounced in firms with strong monitoring environments. Collectively, our findings suggest that boards actively consider CEOs' overconfidence when setting performance targets, providing new insight into the importance of CEOs' personal traits with respect to the incentive effects of performance target revisions. [ABSTRACT FROM AUTHOR]

Purpose: The current study investigates the impact of directors' attributes on the extent of compliance with International Financial Reporting Standards (IFRS) fair value disclosure requirements. The attributes investigated include directors' human capital (accounting qualification) and social capital (political association), directors' share ownership and the power distance between the chief executive officer (CEO) and the rest of the board members. Design/methodology/approach: The study uses disclosure analysis to measure the extent of compliance with the fair value disclosure requirements of IFRS. Ordinary least squares (OLS) regression is used to test the relationship between the disclosure score and directors' attributes. Data were collected from the annual reports and websites of the sample companies. Findings: Contrary to conventional belief, this study's findings suggest that directors' social capital and the power distance between the CEO and the rest of the board act as more powerful factors than directors' human capital in explaining corporate mandatory disclosure. Specifically, the results indicate that powerful actors form a dominant coalition and co-opt influential constituents from the institutional domain to neutralize the effect of legal coercion and the accounting expertise of board members and Big Four audit firms on the extent of compliance with institutional (fair value) rules. Research limitations/implications: This study utilizes Oliver's (1991) framework of strategic response to institutional processes in the Bangladeshi context. Although the study provides new insights into corporate disclosure practices, findings are not generalizable due to different institutional settings in different countries. Therefore, future studies could replicate the approach in different institutional settings. Practical implications: The findings of this study will be of interest to the International Accounting Standards Board (IASB) as it focuses on a developing country that has adopted IFRS 13 and other fair value-related standards relatively recently. Originality/value: The disclosure analysis contained in this study represents the first comprehensive analysis of the extent of compliance with the fair value disclosure requirements of IFRS. Furthermore, this study considers the impact of directors' social capital and finds that it is a more powerful determinant of the extent of compliance with IFRS as compared to human capital. [ABSTRACT FROM AUTHOR]

This study examines the impact of long-term trend of CEO pay structure on CEO pay for luck and the asymmetric benchmarking of CEO pay over a 72-year period from 1949 to 2020. We find that both CEO pay structure and pay for non-performance incur dramatic changes since the 1970s. The widely adopted options awarded to CEOs since the 1980s not only lead to a sharp increase of the level of CEO compensation, but also significantly amplify the phenomenon of CEO pay for non-performance and pay asymmetry. However, a wave of executive pay-related regulations in the 2000s and the rapidly rising stock awards have changed the situation characterized by the diminishing CEO pay for luck and pay asymmetry in the past decades. Our findings support a time-varying CEO pay for luck and pay asymmetry in the long run due to the changing CEO compensation structure under various circumstances. [ABSTRACT FROM AUTHOR]

In this study, we fill the void in the literature by examining relative CEO to employee pay for luck and pay asymmetry phenomena over 72 years from 1949 to 2020. We find that CEO pay for luck and the asymmetric benchmarking of the pay exist for CEOs as well as median employees. However, CEOs have a more robust pay for luck and a more pronounced pay asymmetry than median employees. Furthermore, we find that the corporate pay-related regulations implemented in the 2000s have achieved their intended goal of mitigating pay inequity between CEOs and median employees. It lowers the degree of CEO pay for luck and asymmetry compared to median employees. Our findings shed new insights on CEO and employee pay for non-performance to academia, regulators, and shareholders. [ABSTRACT FROM AUTHOR]

In today's dynamic business environment, business model innovation (BMI) has become a strategic lever that businesses can harness to unlock new revenue opportunities and fortify their long‐term competitive edge. BMI often hinges on the exchange relationships between chief executive officers (CEOs) and their top management team (TMT) members. However, in practice, CEOs and TMT members often have incongruent perceptions of these relationships, which may impede them from making joint efforts to achieve BMI. When such incongruence arises, relying solely on either the CEO's or the TMT members' perceptions of exchange quality might provide an incomplete understanding of the effect of CEO–TMT exchange quality on BMI. In this study, we investigate how CEO–TMT exchange quality incongruence influences BMI under various levels of environmental dynamism. Using archival industry data and matched survey data from 618 CEOs and 1854 TMT members in China, the polynomial regression and response surface analyses indicate that CEO–TMT exchange quality incongruence negatively affects BMI. This finding suggests that while high perceptions of exchange quality by both CEOs and TMTs independently contribute to BMI, an incongruent perception of exchange quality between CEOs and TMT members can undermine the success of BMI. Moreover, high levels of environmental dynamism aggravate the negative effect of CEO–TMT exchange quality incongruence on BMI. These findings enable us to offer new theoretical insights regarding the influence of the CEO–TMT exchange quality on BMI, thus complementing existing studies on antecedents of BMI and enriching literature on the outcomes of the CEO–TMT interface. Additionally, this study offers practical guidance for enhancing BMI through effective management of incongruent perceptions of CEO–TMT exchanges. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the impacts of financial and nonfinancial incentives on the development of employee work motivation and knowledge sharing in the postpandemic environment. The paper further investigates the role of transformational leadership as a moderator in enhancing the relationship between work motivation and knowledge sharing. Design/methodology/approach: Adopting a quantitative approach, the study uses data collected from multiple informants, specifically senior managers, in Nepalese manufacturing and service business-to-business (B2B) firms. Findings: Contrary to prior research, the results reveal that nonfinancial incentives have a stronger impact on work motivation in the postpandemic era. This enhanced work motivation, in turn, contributes to knowledge sharing, with transformational leadership further strengthening the relationship. Practical implications: The findings suggest that B2B firms should consider moving toward leveraging nonfinancial incentives to motivate employees to develop knowledge sharing initiatives, especially in challenging circumstances such as those experienced in the postpandemic era. In addition, it is recommended that chief executive officers adopt a transformational leadership style to facilitate effective knowledge sharing within their firms. Originality/value: In a developing economy and amid the challenges of the global pandemic, there has been limited research exploring the possible effects that financial and nonfinancial incentives could have on work motivation and knowledge sharing. This research bridges this gap by providing a fresh perspective on work motivation and knowledge management in B2B firms, contributing novel insights to the literature. [ABSTRACT FROM AUTHOR]

Purpose: This research paper aims to examine the effect of chief executive officer (CEO) characteristics on earnings management. Design/methodology/approach: Research samples are manufacturing firms listed in the Indonesian Stock Exchange 2015–2021. CEO characteristics include narcissism, gender, age, tenure, experience, nationality and founding family status. Data analysis uses random-effect regression. Findings: The result shows that higher narcissism CEOs have aggressive characteristics so they will be more likely to engage in accrual and real earnings management. Female CEOs, foreign CEOs and founding-family CEOs have higher monitoring and business ethics characteristics so they will be less likely to engage in accrual and real earnings management. CEOs with higher education levels have higher thinking complexity so they will be more likely to engage in accrual earnings management with higher regulator and auditor monitoring barriers than real earnings management. CEOs with financial and accounting experience are familiar with accounting standards and auditor monitoring barriers so they will be more likely to engage in accrual earnings management than real earnings management. On the other hand, there are no effects of CEO age and tenure on earnings management. Originality/value: This research contributes to providing evidence of the effect of CEO characteristics on earnings management in a specific industry such as manufacturing firms and emerging markets such as Indonesia with the majority group firms being family firms. [ABSTRACT FROM AUTHOR]

Purpose: The board structure (BS) is pivotal in modern corporate governance (CG). This study aims to investigate BS variables (BSIZE, BIND and chief executive officer [CEO] duality) and their correlation with risk-taking behavior indicators, enriching the understanding of how CG shapes financial institutions' (FIs) decision-making in Pakistan. Design/methodology/approach: By scrutinizing data from 67 financial entities listed on the Stock Exchange of Pakistan spanning from 2011 to 2022 through panel data regression techniques, the research emphasizes that BS holds a substantial influence over the risk tendencies exhibited by these firms. Findings: Key findings suggest that board size has a positive influence, aligned with previous CG research. Smaller boards perform better and avoid excessive risk-taking, contrasting some negative relationship claims. More independent directors are recommended to curtail risk and financial disruption. Holding both CEO and chair roles reduces risk exposure, resonating with reputational and employment risk theory. It is essential to recognize that BS's impact on risk-taking is nuanced and context-dependent. Practical implications: Policymakers, scholars, practitioners and investors working in the market for financial companies might greatly benefit from the empirical findings of this study. Imposing mandates on FIs to uphold adequate capital reserves functions as a safeguard against unforeseen losses, thereby diminishing the probability of unwarranted risk-taking. Originality/value: Prior studies in this domain predominantly focus on nonfinancial sectors. In addition, existing research often explores the relationship between BS and firm risk-taking solely within the banking sector, overlooking other FIs. This study contributes by using a comprehensive data set encompassing all types of FIs, thus extending the existing literature. [ABSTRACT FROM AUTHOR]

Purpose: Strategic alliances play a key role in a company's growth strategy. They are an alternative to the organic option of creating a new company from scratch and a less risky option than conducting a merger or an acquisition. For five years, most recently in 2022, the results of PwC's 22nd Annual CEO Survey have shown that 40% of U.S. CEOs plan to enter into a new strategic alliance or joint venture to boost their company's growth or profitability in the coming year. These operations demand a high level of trust, collaboration and equitable risk-sharing, as well as autonomy granted to both firms. Through an in-depth case study, this study aims to reveal how an alliance was formed between two companies, navigating between entrepreneurial experience and the co-construction of a network to share a technological tool. Design/methodology/approach: The author conducted several interviews with one of the founders of Beta France, and the author had access to a large amount of information on the launch of the entrepreneurial project. Findings: The author presents the reasons for Beta France to join a network of alliances rather than entering into a joint venture. In doing so, the author emphasizes the importance of independence between actors as a key element triggering innovation. Originality/value: This study points out how a fintech startup opens up perspectives for new digital market participants. The author lists the risks that CEOs joining an alliance must be aware of, and the author details how to avoid falling into an asymmetrical alliance by keeping a center of expertise that cannot be duplicated by other partners. [ABSTRACT FROM AUTHOR]

Various scholars and political actors advocate workplace democratisation to give employees greater influence over decision‐making. Many suggest employee board representation (EBR) as a mechanism to facilitate this, but some question how influential employee board representatives (EBRs) are and whether they represent their colleagues' views. This study investigates the extent to which EBR contributes to workplace democratisation, via a comparison of three Australian public sector organisations. The study found EBRs exerted significantly more influence at the Australian National University than at the Australian Broadcasting Corporation and the Australian Film Television and Radio School. Most EBRs wanted to draw upon staff experiences but their communication with colleagues was often constrained. Variances of influence were explained by the number of EBRs, the actions of the Chair, chief executive officer, government, and other board members. Two findings stand out as unique contributions: the importance of appointment powers to EBR influence in the public sector, and EBRs' limited influence on labour issues in the Anglosphere due to the adversarial system of labour bargaining being positioned largely outside the boardroom. The study concludes that EBR is a non‐tokenistic form of workplace democratisation, albeit with a specific scope, which has utility within a mix of democratising mechanisms. Points for practitioners: Most EBRs exerted a limited or moderate influence on decision‐making, but others exerted more significant influence. They were most influential on matters related to their experience and expertise and were largely unable to influence workers' pay, conditions, and other labour issues.Most EBRs did not represent their colleagues in a transactional or direct sense, but drew upon their experiences as staff members when making decisions. However, EBRs had fluctuating issues communicating with their fellow employees, largely due to managerial direction around confidentiality.The number of SEDs on the board and the actions of other board members, the Chair, chief executive officer, and the government explained the variances in SEDs' influence between agencies.This study's findings regarding EBR influence were middling compared to European research, but appointment powers were found to be particularly important in the public sector context. EBRs' influence was found to be limited on labour issues, suggesting a potential clash between the corporatist inclination of EBR and the adversarial system of labour bargaining prevalent in the Anglosphere.Elected EBRs offer employees a non‐tokenistic form of representation but within a limited scope of strategy and oversight. Given factors that constrain SEDs' influence and representativeness can be at least partly countered by policy design and political leadership, these findings bolster the policy case for extending EBR throughout the public sector. [ABSTRACT FROM AUTHOR]

Objectives: This paper conceptualizes strategic leadership (SL) by exploring foundational theories, central themes, and varying perspectives, emphasizing its role in aligning vision, setting strategic direction, and developing dynamic capabilities required for sustainable competitiveness. Prior Work: Building on the intersection of strategy and leadership theories, the paper integrates diverse frameworks addressing gaps in executive leadership literature, with theories like upper echelons, managerial cognition, and the resource-based view being central to the SL discourse. Approach: Employing a semi-systematic and integrative literature review, this paper critically examines SL through relevant theories, themes, and leadership perspectives, including top-down, collaborative, and distributed models. Results: SL is best operationalized through constructs emphasizing leaders' cognitive abilities to develop mature strategic management processes, including determining direction, adapting to dynamic environments and managing core competencies. Implications: This study refines the understanding of SL as leadership "of" organizations rather than "in" organizations, offering insights for academics and strategic leaders on integrating strategic thinking across all levels to enhance strategic outcomes linked to key performance indicators (KPIs). Value: The paper presents a multidisciplinary SL framework, bridging theoretical insights and practical gaps, positioning SL as a catalyst for translating organizational strategy into sustainable competitive advantage (SCA). [ABSTRACT FROM AUTHOR]

Although prior research attributes news media coverage of firms to the alignment of firm behavior with societal expectations of appropriateness, the appropriateness of firm behavior is judged through an ideological lens. Therefore, the influence of a firm's behavior on its news media coverage is likely to be contingent on news organizations' ideology. Focusing on corporate social responsibility (CSR) as the focal firm behavior, we argue that conservative news organizations are less likely to consider CSR an appropriate firm behavior because conservatives view CSR as privileging progressive ideals and as undermining shareholder interests. As such, we hypothesize that compared with other news organizations, conservative news organizations are less likely to cover socially responsible firms positively. This relationship is likely to be strengthened for firms led by conservative chief executive officers and for firms with poor stock market performance. We examined the coverage of the S&P 1500 firms from 2002 through 2011 in U.S. newspapers and found support for our hypotheses that compared with other newspapers, conservative newspapers report less positively about socially responsible firms and that this effect is strengthened for conservative-led firms. In contrast to what we expected, however, we found some evidence that socially responsible firms with a strong stock market performance are, in fact, covered less positively in conservative newspapers. Taken together, our theory and findings contribute to an understanding of how the news media's ideological heterogeneity shapes the relationship between firm behavior (in our case, CSR) and news media coverage of firms. Funding: Y. Dewan received funding from HEC Foundation. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.17237. [ABSTRACT FROM AUTHOR]

We provide large-scale empirical evidence of how much chief executive officers (CEOs) change corporate culture. To do this, we use employee reviews to measure corporate cultural change in S&P 1500 firms. In a variance decomposition analysis, we find a modest effect of CEOs on corporate cultural change. The effect of CEOs on cultural change is larger than industry effect but smaller than firm effect. Regression analysis in the context of CEO succession further shows consistent evidence of a modest effect of CEO succession on corporate cultural change. In addition, the relationship between CEOs and cultural change is not likely to be fully explained by time trend, reverse causality, sample selection bias, and omitted variable bias. An investigation into the contextual contingencies of the CEO-cultural change relationship suggests that succession characteristics, such as predecessor influence and turnaround situation, weaken postsuccession cultural change, but industry task environment has a weak moderation effect. Overall, our study contributes to the literature on strategic leadership and corporate culture. Funding: X. Li acknowledges financial support from the Ian Potter ('93D) PhD Award. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.17210. [ABSTRACT FROM AUTHOR]

This study contributes to the existing literature on green innovation by examining the impact of Confucianism culture on green innovation. Drawing on a culture perspective, we argue that Confucianism culture is significantly positively associated with green innovation. Using a sample of Chinese listed firms in the industrial sector from 2007 to 2019, we provide strong evidence to show that corporate green innovation projects are significantly more prevalent for firms surrounded by a strong Confucianism atmosphere compared to those in a weak Confucianism atmosphere. Additionally, we investigate the mediating roles of CEO myopia and employee‐related CSR, revealing that Confucianism culture, through both CEO myopia and employee‐related CSR mechanisms, influences green innovation. Our study contributes to the extant literature by shedding light into the black box of the positive role of Confucianism in green behavior. [ABSTRACT FROM AUTHOR]

The study builds and extends on the literature on the environment, corporate governance, and sustainability by examining how board attributes impact environmental sustainability disclosure (ESD) and, if so, whether each of the two strands of board attributes, namely, board diversity and structural attributes, influence ESD for manufacturing firms in the sub‐Saharan Africa (SSA) region. Based on insights drawn from the human capital theory and board composition, the study developed a model that connects board attributes with ESD. Using a sample of 200 manufacturing firms from 2010 to 2022, the study found an inverse link between gender diversity and ESD, whereas a positive connection was seen between foreign nationals and ESD. Regarding structural attributes, an inverse link was found between board size and ESD, while a positive connection exists between the separation of the board chair from the chief executive officer and ESD. In summary, the findings urge policymakers in the SSA region to strengthen policies on board diversity and structural attributes to promote ESD. Moreover, the findings advise the board of directors to ensure effective and transparent disclosure of environmental‐related issues to stakeholders to guarantee sustainable reporting practices. [ABSTRACT FROM AUTHOR]

The current study contemplates the mechanism of heterogeneous media attention affecting green technological innovation (GTI) amid moderation of chief executive officer (CEO) narcissism. Based on the accumulated data of 1545 listed Chinese firms over the period from 2014 to 2018, we have demonstrated that media attention imposes a significant positive effect on GTI; the negative coverage is greater than positive media coverage in effecting GTI whereas CEO narcissism positively moderates the effect of media attention on GTI. The results also show the regional media coverage is greater than national media coverage in effecting GTI, while the CEO narcissism more strongly moderates the effect of negative coverage on GTI and the effect of regional media coverage on GTI. This study provides new insights into the existing literature by deconstructing media attention and enriches the studies in the context of media attention‐GTI relationship from a point of view of the particular personality trait of a CEO. [ABSTRACT FROM AUTHOR]

The growing presence of women at the top of companies has sparked interest in examining their role in the remuneration gap between senior managers and employees. This article analyses the traditional Chief Executive Officer (CEO)-to-employee pay ratio but includes a new relation, the senior-management-to-employee pay ratio, and extends the research by including six positions for women in company management: on the board of directors, executive directors, CEOs, proprietary directors, independent directors, and senior managers. The study is based on a sample of 77 listed companies in Spain from 2015 to 2022 and the panel data models have been estimated using the Generalised Method of Moments (GMM). The main findings indicate that the proportion of women in different categories of board and senior management positions has a positive effect on the CEO-to-employee pay ratio, especially in companies with higher market capitalisation. In contrast, the proportion of women in senior management positions has a negative effect on the CEO-to-employee pay ratio in all the samples analysed. Government agencies should prioritise the participation of women in non-board senior management positions in order to at least reduce the pay gap between senior managers and employees. [ABSTRACT FROM AUTHOR]

This study examines whether and how the CEO's time perspective affects corporate green innovation. We document a significant positive relationship between the CEO time perspective and green innovation in Chinese manufacturing-listed firms. Furthermore, consistent with the view that the CEO's time perspective is a significant factor influencing corporate green innovation when resources are plentiful, we find that this positive association is stronger when firms have fewer financial constraints. Overall, our research shows that the CEO's time perspective promotes green innovation in emerging economies. [ABSTRACT FROM AUTHOR]

This research investigates the relationship between product market competition, Chief Executive Officers' (CEOs) overconfidence and financial statement comparability. It presents evidence supporting the argument that product market competition diminishes financial statement comparability consistent with the agency problem. Furthermore, it suggests that this negative relationship intensifies when CEOs display overconfidence. A tendency to underestimate risks and have an exaggerated view of one's abilities are indicators of overconfidence leading to the comparability of financial statements. This study analyzes 53,233 data observations spanning from 1992 to 2022 using firm and year-fixed effects panel regressions. The empirical findings confirm a negative relationship between product market competition and financial statement comparability. Moreover, this negative relationship is more pronounced under the leadership of overconfident CEOs. These findings remain robust even after we address other potential measurement concerns related to product market competition. Ultimately, this study highlights the necessity for regulatory institutions to closely monitor firms operating in competitive markets particularly those led by overconfident managers. Additionally, policymakers and regulatory bodies should exercise increased scrutiny when evaluating the financial reporting of such firms to enhance investor confidence. Future research could investigate alternative methods for deriving overconfidence measures from publicly available databases and examine how regulatory and institutional differences in various countries impact the quality of financial reporting including financial statement comparability. [ABSTRACT FROM AUTHOR]

Wenn man an die Fa. Baumann Dental denkt, denkt man an die Kunststoffplatten, die für präzise Artikulation und Reponierung der Modelle in den Artikulatoren verwendet werden. Das sogenannte Modellsystem 2000 von Bauman steht im Kontrast zu Modellsystemen, die auf Gipssockelplatten und die stumpfgerechte Verteilung der Sockelpins setzen. Es erfreut sich seit über 20 Jahren einer großen Beliebtheit und viele, auch der Funktion zugetane Zahntechniker und Zahnärzte, schwören auf die wiederverwendbaren Pinplatten und die sich daraus ergebenden Möglichkeiten (Abb. 1). Nun dreht sich das Rad der Entwicklung jedoch stetig weiter, und so kam es, dass plötzlich intraorale Abformungen auftauchten, die wiederum den Einsatz der 3-D-Drucktechnologie und somit gedruckter Modelle vonnöten machten. Wie also reagiert ein Unternehmen, das auf die klassische Modellherstellung und Artikulation setzt? Ein Gespräch mit Alexander Baumann, CEO von Baumann Dental, über Kindheitserinnerungen, Claims und den gipsfreien Workflow. [ABSTRACT FROM AUTHOR]

This study investigates whether family owners consider the stages of CEO tenure in their use of firm performance to assess CEOs. Integrating insights on family owners' long-term orientation and stages of CEO tenure, we theorize that family owners rely more on firm performance to make CEO replacement decisions during the mid-stage of CEO tenure than during the early and late stages. Moreover, we predict that they hold nonfamily CEOs more accountable for firm performance than family CEOs only during the mid-stage of CEO tenure. Using data from family-controlled firms in Taiwan, we found empirical evidence supportive of our theoretical predictions. [ABSTRACT FROM AUTHOR]

Behavioral agency model (BAM) posits that executive risk preferences are influenced by losses to their current option wealth relative to gains from their prospective option wealth. Accordingly, current option wealth attenuates risk-taking while prospective option wealth amplifies risk-taking. In the context of corporate irresponsible behaviors, this study attempts to advance the BAM by theorizing how the presence of conditions that give rise to distributive and procedural injustice in CEO compensation can further amplify the positive effects of CEO prospective option wealth on risk-taking, thereby destroying stakeholder value. Our findings, based on a longitudinal cross-sectional sample of 8,669 firm-year observations for the period 2001 to 2018, support our theorization that CEO perceptions of unfairness in compensation amplify excessive risk-taking, thereby increasing the likelihood of corporate social irresponsibility. Our study has important implications for advancing the BAM and for the study and design of executive compensation. [ABSTRACT FROM AUTHOR]

A large body of literature has focused on strategic leaders' (i.e., CEOs', TMT members', and board directors') influence on corporate social responsibility (CSR). However, inconsistent findings have been reported, impeding the theoretical and practical implications of this line of inquiry. Drawing from the strategic leadership literature and the corporate governance literature, we conducted a meta-analysis based on 318 samples to consolidate disparate findings on the relationships between frequently measured executive and board attributes and CSR. We also examined country managerial discretion and investor protection strength as potential boundary conditions of these relationships. With some exceptions, our meta-analytic results show that these executive and board attributes explained meaningful variance in CSR, and that country managerial discretion and investor protection strength played limited moderating roles. Additional analyses suggest that the board characteristics had a stronger relationship with CSR than the executive characteristics. [ABSTRACT FROM AUTHOR]

Purpose: This study examines the impact of chief executive officer (CEO) power, institutional investors and their interaction on green financing provided by Bangladeshi financial institutions and the moderating effect of government policy and CEO political connections on these relations. Design/methodology/approach: We employ ordinary least squares (OLS) regressions and interaction terms among variables of interest for the empirical analysis. Findings: Green financing decreases with CEO power, implying that CEOs of this country's financial institutions are averse to green loans, whereas institutional investors increase green financing extended by these institutions. The government policy, which includes financial incentives for complying financial institutions, strengthens institutional investors' positive impact on green financing, but it does not change CEOs' aversion to green loans. Institutional investors have a positive moderating effect on the relationship between green finance (GF) and CEO power, but this positive moderating effect is negated in banks where the government owns a stake, possibly because CEOs of state-owned financial institutions are politically connected, which reduces institutional investors' influence over them. Originality/value: This study is unique in that it is the first to examine how the interaction among different stakeholders affects green financing in a unique setting. As the literature is almost silent on this topic, the findings of this paper are expected to raise policymakers' awareness of the obstacles that hamper the efforts of developing countries to go green. [ABSTRACT FROM AUTHOR]

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This study examines whether top management team (TMT) functional background diversity affects managerial forecasting capability. We find that TMTs with more diverse functional backgrounds issue more accurate earnings forecasts. Additional tests reveal that the negative association between TMT functional background diversity and management forecast errors becomes weaker when TMTs work together for a long time, when subgroups are more likely to develop within the team, when CEOs are more powerful, and when team size is larger. By contrast, the reduction in management forecast errors is more significant for functionally diverse TMTs when forecasting difficulty is higher. These findings suggest that TMT functional background diversity plays an important role in managerial forecasting capability. Data Availability: Data are available from the sources cited in the text. JEL Classifications: M14; M41. [ABSTRACT FROM AUTHOR]