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This research studies sales force incentive compensation in brand-managed retail (BMR) operations, which are particularly prevalent in high-end department stores and vertically integrated retailers. In particular, the research explores how a brand's strength may affect the relative benefit to a brand from using individual versus group incentives for motivating its salespeople in BMR settings. The authors investigate this issue using a theoretical principal–agent model consisting of a risk-neutral firm employing multiple risk-averse salespeople. Interestingly, they find that a group incentive is more beneficial to a weaker brand than to a stronger one. Furthermore, the authors find empirical support for their theoretical findings from an analysis of sales compensation data from BMR operations in two different settings. The research findings suggest that managers should factor in the brand's strength when deciding on the optimal salesperson compensation structure in BMR settings. [ABSTRACT FROM AUTHOR]

This study evaluates whether an association exists between the agency incentives of the audit committee chair and voluntary disclosure of their monitoring activities in their audit committee report. Prior research suggests that a shift toward greater voluntary disclosure in the audit committee report occurred following the passage of the Sarbanes–Oxley Act but does not directly address the determinants of voluntary disclosure. Consistent with agency theory, audit committee chairs signal their duty-specific monitoring activities to shareholders, possibly to protect their reputation and justify their compensation. Within a high-litigation industry, this study provides evidence that audit committee chairs with a greater reputation level (i.e., more public company directorships) provide more concise duty-specific voluntary disclosure when serving companies with high levels of agency conflicts. This provides evidence consistent with efficiency in the market for audit committee chairs. This study also provides evidence that audit committee chairs respond to likely shareholder concerns by providing more concise duty-specific voluntary disclosure when their company has previously restated its financials. Finally, audit committee chairs provide increased voluntary disclosure specifically related to external audit oversight when high agency conflicts exist. As a whole, this contributes to the existing audit committee literature by providing evidence that voluntary disclosure incentives for financial reporting are also important determinants of more qualitative compliance-based reporting in the proxy statement. This has implications for accounting and governance practitioners as voluntary audit committee report disclosure offers shareholders detailed information that they may use in evaluating audit committee monitoring performance. [ABSTRACT FROM AUTHOR]

We develop a stakeholder theory of corporate governance grounded in classical property rights theory, adopting the view that governance should help free individuals to maximize their collective welfare. In contrast to the agency view of corporate governance, we submit that the central problem in corporate governance is to devise coalitional contracting solutions to the collective action problems inherent in team production and team innovation. Agency problems and other contracting problems resulting from shirking, hold-up, market power, and externalities are best understood in this context. We develop design principles for the allocation of property rights to mitigate each of these contracting problems by reducing stakeholders' vulnerabilities to opportunistic behaviors. We extend earlier efforts to build a stakeholder theory of corporate governance by considering a more comprehensive set of transaction problems and analyzing the comparative efficiency of different governance arrangements for different types of firm–stakeholder relationships and different economic contexts. One conclusion from our theory is that giving primacy to shareholders, or any other group of stakeholders, is a comparatively inefficient solution to governing the modern global and knowledge-driven corporation. We discuss the implications of our theorizing for the debate about the purpose of the firm. [ABSTRACT FROM AUTHOR]

This research explores the ways in which firm-level governance, specifically insider and institutional ownership, affects future value through the lens of agency theory. Then, we evaluate how country-level governance influences the value impact of insiders and institutions. Our analysis employs NIFTY-500 listed companies for 11 years, from 2010 to 2020. Findings suggest that the effect of insider ownership on future value is nonlinear, and the impact of institutional ownership is detrimental for the entire sample. Nonetheless, differential value impacts of insiders and institutions are observed between the insider and noninsider firms. We observe an inverted U-shaped and U-shaped effect of insiders on future value for insider and noninsider firms, respectively. Insider firms witness a declining value impact, while noninsider firms experience an incremental value impact from institutional investors. Further findings indicate that though country-level governance has little bearing on institutional investors, it effectively reduces insiders' expropriation effect that enhances future value. [ABSTRACT FROM AUTHOR]

This study investigates how decisions about cash holdings are impacted by internal corporate governance mechanisms in the presence of external governance mechanisms (shareholders' and creditors' rights). On the data of listed manufacturing firms in the ASEAN-5 from 2005 to 2020, the fixed-effect and generalized method of moment models are employed. The results demonstrate that strong external governance mechanisms mitigate the negative impact of weak internal governance methods, such as a higher level of managerial ownership, a larger board, and CEO dual roles. This suggests that strong external governance mechanisms can help mitigate cash wastage and higher agency issues brought on by weak internal governance. However, when there is a presence of strong external governance mechanism, strong internal governance practices such as lower managerial ownership levels, a founder-CEO, and an independent board do not permit corporations to store more cash to avoid cash misuse. This is the first study that reveals how internal corporate governance mechanisms affect the choice to keep cash in the presence of strong and weak external governance mechanisms. [ABSTRACT FROM AUTHOR]

Purpose: Although the literature has highlighted that a firm's board is critical for firm innovation, the impact of board characteristics on firm innovation has always been examined separately, leading to inconclusive research results. Based on the complexity theory, this paper incorporates four board characteristics, including board size, board ownership, board independence and CEO duality, to examine the impact of the combinations of different board characteristics on firm innovation through qualitative comparative analysis. Design/methodology/approach: Using the panel data of listed manufacturing firms in China from 2007 to 2022, this paper conducted the fuzzy set qualitative comparative analysis to test the proposed hypotheses. Findings: The research results show that no single board characteristic can explain firm innovation, as board size, board ownership, board independence and CEO duality can lead to either positive or negative firm innovation. Moreover, firm innovation depends on a complex combination of board characteristics. Originality/value: This paper makes the following contributions: Firstly, this paper advances the firm innovation literature by extending the role of board characteristics on firm innovation, thereby offering a new way to model firm innovation in terms of board characteristics. Secondly, this paper provides a more comprehensive account of the role of a firm's board by integrating agency theory and resource dependence theory. Thirdly, this paper also identifies a promising avenue for further research in the field of corporate governance: the investigation of other contingency contexts in which the effect of board characteristics may be observed, with the aim of further increasing the understanding of board functioning. [ABSTRACT FROM AUTHOR]

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Purpose: This article examines the influence of market opportunity, risk, and distance on the choice of destination country for Mexican franchises. Design/methodology/approach: The research hypotheses are developed under the theoretical approaches of institutional theory, agency theory, and transaction costs theory and were contrasted on the data obtained from 52 Mexican international franchisors operating in 37 countries as of 2016. This study uses linear regression with ordinary minimums using the STATA 13.1 software. Findings: The results reveal that a larger market size, a greater level of economic freedom, and a smaller geographic distance are determining factors in the choice of destination country. No statistical significance was found in the variables GDP per capita, level of democracy and cultural distance. Originality/value: This research contributes to the theoretical and practical field. On the theoretical side, this study integrates institutional theory, agency theory, and transaction cost theory to evaluate the factors of the destination country that influence the internationalization process of the franchise. Another contribution of this study is to apply theories and models of developed economies to the process of internationalization of franchises in an emerging economy. Additionally, this study is based on a model that considers the distance, opportunities and risks that are considered by Mexican franchisors in the selection of the international markets in which they maintain operations. This study contains important practical implications that can serve as relevant information for decision-making in the franchise sector and its internationalization. This data is valuable for new models of Mexican franchises that decide to start their internationalization process. [ABSTRACT FROM AUTHOR]

Traditionally, family firm studies have assumed there is a single family behind the firm. We challenge this assumption and argue that the distinction between multi-founding family firms and single-founding family firms matters. We theorize that multi-founding family firms, based on mutual monitoring among families, have corporate governance advantages (less principal–agent and principal–principal problems) in terms of reduced founder CEO entrenchment and a lower probability of descendent leadership. Furthermore, we argue that multi-founding family firms exhibit higher levels of innovation and performance. Based on U.S. firms during 2001 to 2010, we find robust support for our arguments. [ABSTRACT FROM AUTHOR]

The article considers the legal structure of decentralised autonomous organisations (DAOs). DAOs leverage smart contracts to encode their management and operational rules onto the blockchain with a vision to enable autonomous operation without a centralised authority. The novel nature of DAOs presents legal challenges and opportunities that are yet to be addressed in existing frameworks. The current legal frameworks are yet to be fully equipped to accommodate DAOs’ distinctive attributes. This article analyses, with reference to the agency theory and the actual operation of DAOs, the core problems of governance, legal personality and liability of DAOs. It is argued that developing a DAO-specific legal framework that retains its intrinsic benefits is imminently necessary for the future and responsible development of DAOs. [ABSTRACT FROM AUTHOR]

Purpose: Outstanding unexercised stock options can motivate managers to engage in actions that increase the value of their company's stock, including buying back their firm's stock. The objective of granting stock options to managers is to align their interests with stockholders by tying a portion of their compensation to the company's stock performance. However, unexercised stock options may have unintended consequences by providing managers with a vested interest in artificially boosting stock prices via stock buybacks. The primary objective of this research is to study the main factors that influence firms' buyback decisions amongst hospitality firms at a time when these firms were clamoring for taxpayer bailouts. Results from logistic regression seem to suggest that outstanding executive stock options are a major contributory factor in a firm's buyback decision. Estimates also indicate that larger, more profitable firms will likely engage in stock buybacks. These findings survive a battery of tests. Design/methodology/approach: The authors use logistic regression to predict the probability of a firm's buyback decision based on a given set of exogenous explanatory variables. Findings: The paper supports the hypothesis that buyback decisions are guided by the motive to prop support stock prices in the presence of outstanding restricted stock options/warrants granted to firms' executives. Research limitations/implications: The paper focuses on the buyback decision of U.S. hospitality firms. The results, therefore, might not be generalizable to firms in other industries or countries. Practical implications: U.S. share repurchase corporate policy and government regulation needs to be revisited given the economic imperative for firms to invest in activities to restore employment and put them in a position for economic recovery. Social implications: Public criticism of the size, structure and form (i.e. loan vs grant) of COVID-19 bailouts warrants an examination of whether the factors that drive hospitality and tourism firms to repurchase shares support economic recovery. Originality/value: Consistent with agency theory, the authors find a significant positive association between outstanding restricted stocks and a firm's decision to support the stock prices by buying back shares. [ABSTRACT FROM AUTHOR]

Purpose: This paper has a dual purpose: to produce a clear panorama of microfactors behind the implementation of environmental, social and governance (ESG) in emergent economies, and to identify long-term versus short-term implications of ESG and its impacts on sustainable transformation. In particular, the paper investigates the moderating role of ownership concentration on ESG performance and firm value relationship in Southeast Asia during 2010–2022 and COVID-19 period 2020–2022. Design/methodology/approach: By adopting stakeholder and agency theory lenses, this study analyzes 591 nonfinancial listed companies in Southeast Asia from 2010 to 2022 with 2,673 firm-year observations. Data has been collected from Refinitiv and companies' annual reports. Ordinary least squares (OLS) and two-stage least squares (2SLS) estimators are main strategies. Findings: During 2010–2022, the links between ESG performances and firm value are negative. Ownership concentration negatively moderates the nexus between governance pillar and firm value in both short and long run. In COVID-19, ownership concentration also plays an antagonistic moderating role in ESG combined score-firm value association. The results show a crucial role of blockholders in Southeast Asian firms and their strong support to ESG in conquering crisis period, suggesting that managers develop balancing mechanisms in making ESG-related decisions; policymakers and regulators improve effective control instruments with strong legal systems and enhanced law enforcement to protect minority shareholders. Originality/value: This is the first study to test the connection between ESG performance, ownership concentration and firm value in Southeast Asia that has: (1) utilized different proxies of firm value and ownership concentration in robustness tests, (2) controlled heteroskedasticity defects, (3) eliminated companies in the Banking and Finance sector from the sample to avoid distorting the conclusions and (4) empirically verified the driven role of governance pillar in ESG performance and ownership concentration reversely moderated the impact of governance pillar on firm value. [ABSTRACT FROM AUTHOR]

This study examines the experiences of five Kansan parents who took on a key role in their children's home education during the pandemic. The author uses online interviews to investigate how parental agency is manifested through parents' actions regarding children's education and health. Drawing inspiration from Bandura's theory on human agency, the study applies four core properties of agency: intentionality, forethought, self-reactiveness, and self-reflectiveness. The discussion connects the findings to the broader literature on agency, offering insights into how families navigate challenges and support children during crises such as the pandemic. [ABSTRACT FROM AUTHOR]

This study attempts to obtain an understanding of the impact of adopting big data and data analytics (BD&A) on various dimensions of the audit profession. This study aims to examine the effect of adopting BD&A on the audit process, auditor competence, and audit fees in a developing context, Egypt. It also examines the mediating effect of auditor competence on the association between BD&A, audit process, and audit fees. A questionnaire was developed and distributed among financial auditors, IT/IS auditors, and data analytics specialists working for audit firms with different sizes in Egypt. Responses from 205 audit practitioners were collected. Partial least square structural equation modeling was employed to test the research hypotheses. It was revealed that BD&A has a significant positive impact on the audit process and auditor competence. However, an insignificant association between BD&A and audit fees was found. Also, the results indicated that there is a positive significant relationship between auditor competence and audit process, and between auditor competence and audit fees. The mediation analysis reveals that auditor competence partially mediates the relationship between BD&A and the audit process. This indicates that while BD&A directly enhances the audit process, its full potential is realized when auditors possess advanced competencies. In contrast, the relationship between BD&A and audit fees is fully mediated by auditor competence, reflecting the critical role of skill development in justifying fee adjustments. [ABSTRACT FROM AUTHOR]

This study conducts a moral analysis of leverage buyouts (LBOs) and relies on the holistic framework of the Triple Font Theory. It shows that the claims made by standard agency theory have not been successful both for the purchased firms and for the investors. In addition, the reductionism of the theories justifying LBOs may have favored some of the excesses observed in practice and contributed toward lessening the moral responsibility of market participants. The study suggests some possible reforms and explains what improvements virtue ethics and Catholic Social Teaching can bring. It formulates a set of recommendations that can be implemented by the regulators or market participants. [ABSTRACT FROM AUTHOR]

Chicken meat (broiler) production is a rapidly growing livestock sector in India, and one dominated by contract farming. Studies have reported high levels of antibiotic use in Indian broiler farms which is concerning given this is one of the driving forces for the development of antibiotic resistance. This study used the economic lens of agency theory to examine strategic decisions which occur during contract broiler production and their potential impact on antibiotic use, using West Bengal as a case study. Agency theory focuses on the informational asymmetry and opportunism between service providers and seekers and the subsequent agency cost needed to avoid aberrant outcomes. Interviews were conducted with key informants (n = 6) and stakeholders (n = 20) associated with broiler production, and broiler farmers (17 contract and four non-contract), using online and face-to-face interviews. Data were analysed descriptively using manifest content analysis and interpretatively using reflexive thematic analysis. Contract farming in West Bengal exists within a series of inter-dependent relationships, many of which contain information asymmetry and can be subject to opportunism. Positioning contract companies as principals seeking labour from agents, we see how out-sourcing of production to distal farms led to antibiotics being used as a risk mitigation strategy. This was further compounded by concerns about the Mycoplasma status of breeding stock, and a perception that broiler day old chicks were infected, resulting in use of antibiotics belonging to classes deemed critically important for human health. While antibiotic use decisions were predominately made by contract companies, they were dependent on the decisions farmers and breeding companies made concerning biosecurity and production practices. In turn, farmers' decisions were shaped by factors such as access to financial and social capital. Thus, efforts to reduce antibiotic use in West Bengal's broilers must not just focus on changing the prescribing behavior of individuals but more broadly consider the environment within which contracting exists. [ABSTRACT FROM AUTHOR]

The potential to weaponize deepfakes is growing at an alarming rate. The study aimed to explore how education can help youth develop resilience to malicious deepfakes and the ability to counter disinformation, regardless of context. Sixteen youth between the ages of 18 and 24 participated in a 9-h, cutting-edge, experiential, and reflective learning experience on deepfakes and disinformation informed by personal construct theory (PCT). Participants experienced the creation of deepfakes and assessed their ability to counter disinformation. They delved into their own construct systems and reflected on the genesis of their vulnerabilities. They moved from being unfamiliar with the deepfake phenomenon to becoming empowered digital citizens, motivated to develop their skills in assessing the validity of online information and resisting manipulation regardless of its source. The study provides recommendations for more targeted education about deepfakes and disinformation for youth. Educators, curriculum developers, and policymakers can use these findings to ensure that a well-equipped generation of digital citizens protects society from the growing disinformation plague. With this proof of concept, the next step is to bring this approach to a larger number of youth and contribute to the fight against malicious deepfakes, while developing strategies to integrate PCT-informed learning experiences into education. [ABSTRACT FROM AUTHOR]

The aim of this work is to analyze the factors that help companies avoid liquidation following the spirit of the Spanish insolvency law. This work focuses on the phase starting when companies file for bankruptcy and ending with the completion of the common phase. We apply the agency theory to explain how insolvency administrators and court characteristics influence the outcome of the bankruptcy process (liquidation or reorganization). We analyze unique accounting data from 2,627 companies that filed for bankruptcy during the period 2008–2014. The findings reveal the significant roles played by the liquidation trustee, Big 4 administrators, and higher remunerations, along with the type of court in charge. Processes are more likely to result in reorganization if they are handled by specialized courts, managed by the Big 4, and if the insolvency administrator has longer experience in bankruptcy filing and receives a higher remuneration. These findings have important implications for all the agents involved. It is necessary to rationalize the filing process, foment better training for insolvency administrators, provide courts with more funds, and create more specialized courts. The principal contribution of this article is to examine the role played by insolvency administrators and the courts, and their influence on the outcome of the insolvency process. JEL CLASSIFICATION C35; D21; D22; G33; G38 [ABSTRACT FROM AUTHOR]

Our goal is to improve Project Management (PM) profitability and reduce discrepancies in information among stakeholders, which can result in conflicts. This will be accomplished by incorporating Earned Value Management (EVM) with the Income Statement and incorporating earnings before interest, tax, depreciation, and amortization (EBITDA) with the work breakdown structure (WBS). These incorporations will streamline information sharing between PM, other management professionals, and the stakeholders, ultimately fostering the application of PM within broader business and management contexts. We drew on theories from Project, Operations, Financial Management, Agency Theory, and the Theory of Performance Frontiers. We conducted multiple case studies in a shipbuilding corporation with 25 projects and an aircraft manufacturing corporation with 20 projects. Our analysis involved both qualitative and quantitative methods, ensuring the accuracy and practicality of our hypotheses and instilling confidence in our research findings. This integration addresses the information gap on profitability for non-project management professionals, empowering stakeholders to enhance project performance. This integration benefits the company by allowing the project manager and stakeholders to gain real-time insights into the project's profitability, which enables continuous optimization of daily EBITDA by improving efficiency and productivity to achieve the project's profitability target. This study and its innovative findings originate from the author's unique approach, which is a significant contribution to the field of Project Management. This research focused on project management using EVM in for-profit organizations. Integrating EVM in the income statement also facilitates PM application in other management systems. [ABSTRACT FROM AUTHOR]

The study’s aim is to explore the dynamic relationship between ownership structure and corporate performance of Vietnam real estate firms. Data were collected from 54 real estate firms listed on the Vietnam Stock Exchange in the period 2009 -2019, and the system generalized method of moments (SGMM) is used to estimate and test the relationships. The study’s results indicate that corporate performance is driven by block-holders and managerial ownership. Specifically, the block-holder ownership-corporate performance relationship and the managerial ownership-corporate performance relationship are well documented to be negative and positive, respectively. Our findings lend strong support to the agency theory. [ABSTRACT FROM AUTHOR]

This paper examines Hamm's Becoming Medusa (2021) through the lenses of postfeminism and Foucault's theories of power and agency, foregrounding the significance of revisionist retelling. Since the 1970s, female protagonists like Medusa have gained popularity due to the postfeminist reimagining of Greek mythology. The reclaiming of Medusa's narrative has undergone a series of shifts in the perception of her character, moving from a position of victimisation and monstrosity to one of agency and empowerment, as evidenced in this novel. Challenging the postfeminist paradigm and considering Foucault's ideas, the paper studies the revival of Medusa as the creation of a new identity. Foucault's critique of power cultivates a detailed view of the interrelations between gender and power that escapes the assumption that oppressing women is caused in an unassuming way by men's power. This study's significance lies in presenting a more in-depth and innovative exploration of Becoming Medusa by presenting a different version of Medusa as a real woman who is changed from passive to agent. By intertwining these mentioned theories, a more comprehensive analysis of the context and the authors' intentions transforms their current viewpoints to the readers and audiences presented. The importance of this topic also lies in achieving global postfeminism through Medusa's revival from Greek mythology to the contemporary age. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to describe the progression from trade-based money laundering to service-based money laundering using the Regulatory Dialectic Theory with an explanation for the success of this progression arising from Agency Theory. Design/methodology/approach: The authors provide a literature review regarding agency theory and the regulatory dialectic as the framework to examine service-based money laundering using three documented case studies. Using the caselet approach, this paper demonstrates that innovation in financial crime typologies is ongoing. Findings: The short cases in this paper illustrate the factors related to the regulatory dialectic theory that have yielded innovation in service-based money laundering. Research limitations/implications: This paper examines only three recent SBML innovations. Practical implications: Service-based money laundering represents an incremental advancement in money laundering beyond trade-based money laundering, in part supported by agency conflicts between financial intermediaries and stakeholders. Social implications: Managers and regulators should take into account that typologies will change as predicted by the regulatory dialectic and that the regulatory response can be burdensome to financial sector entities. This paper also provides recommendations for managers and regulators. Originality/value: To the best of the authors' knowledge, this paper is the first to uncover new innovations in SBML in a high-risk geographic region. [ABSTRACT FROM AUTHOR]