CEO Ownership Research Articles

Employee Ownership and Firm Digital Transformation

AbstractThe development of digital technologies has triggered the digital transformation of organizations, enabling business model innovation. With the rise of a human‐centred view of digitalization, previous studies have been devoted to exploring how leadership drives digitalization, overlooking the role of employees as a key stakeholder. Motivated by this gap, based on agency theory, we investigate how employee ownership affects digital transformation in firms. Further, we identify vital contingencies based on heterogeneity in human resource management under the ability–motivation–opportunity framework. Analysing data on Chinese listed firms from 2015 to 2021, we find that the adoption of employee ownership promotes firms’ digital transformation, and that this positive effect is moderated by R&D personnel (ability), female CEO (motivation) and state ownership (opportunity). Our findings reveal the role of employees in the digital transformation process, which deepens our understanding of the literature on employee ownership and business model innovation.

CEO power and corporate tax avoidance in emerging economies: does ownership structure matter?

PurposeThe purpose of this paper is to study how CEO power impact corporate tax avoidance. In particular, this paper aims to empirically examine the moderating impact of institutional ownership on the relationship between CEO power and corporate tax avoidance.Design/methodology/approachThe multivariate regression model is used for hypothesis testing using a sample of 308 firm-year observations of Tunisian listed companies during the 2013-2019 period.FindingsThe results show that CEO power is negatively associated with corporate tax avoidance and that institutional ownership significantly accentuates the CEO power’s effect on corporate tax avoidance. This implies that CEOs, when monitored by institutional investors, behave less opportunistically resulting in less tax avoidance.Practical implicationsOur findings have significant implications for managers, legislators, tax authorities and shareholders. They showed that CEO duality, tenure and ownership can mitigate the corporate tax avoidance in Tunisian companies. These findings can, hence, guide the development of future regulations and policies. Moreover, our results provide evidence that owning of shares by institutional investors is beneficial for reducing corporate tax avoidance. Thus, policymakers and regulatory bodies should consider adding regulations to the structure of corporate ownership to promote institutional ownership and consequently control corporate tax avoidance in Tunisian companies.Originality/valueThis study differs from prior studies in several ways. First, it addressed the emerging market, namely the Tunisian one. Knowing the notable differences in institutional setting and corporate governance structure between developed and emerging markets, this study will shed additional light in this area. Second, it proposes the establishment of a moderated relationship between CEO power and corporate tax avoidance around institutional ownership. Unlike prior studies that only examined the simple relationship between CEO power and corporate tax avoidance, this study went further to investigate how institutional ownership potentially moderates this relationship.

Relationship between corporate governance and audit quality in the industry sector: Moderating role of firm performance

This study explores the relevance of corporate governance mechanisms in determining audit quality, with a specific focus on the moderating role of firm performance in the Jordanian industrial sector. Audit quality is essential for ensuring transparency and accountability in financial reporting, making this analysis highly relevant for stakeholders aiming to strengthen corporate governance. The study sample included 64 manufacturing companies listed on the Amman Stock Exchange for the study period (2014–2022), with a total of 474 firm-year observations. The regression analysis is used to investigate the study hypotheses, including the key variables related to corporate governance, board performance, and audit quality. The findings show that company size has a significant positive effect on audit quality. There is no significant impact of CEO duality, independent directors, and ownership concentration on audit quality within the Jordanian industrial sector. The R² value of 0.067 indicates that approximately 6.7% of the variance in audit quality is explained by the study variables, while the F-value of 6.633, with a significance level of 0.00, suggests that the overall model is statistically significant, even though the explanatory power is relatively low. The study shows that company size is important to improve audit quality; other governance mechanisms may not have the same impact in the Jordanian industrial sector.

CORPORATE GOVERNANCE AND REAL EARNINGS MANAGEMENT IN NIGERIAN LISTED FINANCIAL FIRMS

The focus of the study is the examination of the relationship that exists between corporate governance and real earnings management in Nigerian listed financial firms, with attention on three corporate governance variables (board tenure, board expertise and CEO ownership). The study adopts a longitudinal research design. Descriptive statistics, correlation analysis and panel regression analysis technique, with emphasis on the random effect model, were used for data analysis. A purposive sample of thirty seven (37) firms, out of the Forty nine (49) financial firms listed on the Nigerian Exchange Group, at year end 31st December, 2022 was studied for a period of seven years, 2016 to 2022. Findings from data analysis revealed that board expertise and CEO ownership have insignificant but positive relationships with real earnings management. In addition, board tenure was found to be significantly but negatively related to real earnings management. The correlation analysis revealed that there is a negative correlation between the variables board expertise, CEO ownership and real earnings management. Also, board tenure has a positive correlation with REM. The study recommends that directors of companies should be encouraged to spend longer time on the board as this will serve as incentive to avoid unfavourable earnings management.

Tác động của quản trị công ty và thu nhập phi tín dụng đến hiệu quả tài chính của các ngân hàng thương mại Việt Nam

The roles of non-interest income and corporate governance on bank operations in the literature have not been a cooperative explanation. Therefore, the paper determines corporate governance and non interest income on the Vietnamese banks' financial performance from 2011 to 2021. SYS-GMM demonstrates that non-interest income, fees, and other income enriches Vietnamese commercial bank’s financial performance. Regarding bank corporate governance, the board size, CEO ownership, state ownership, and foreign ownership negatively impact ROA and ROE. Conversely, the number of female boards, board ownership, and board compositions enhances the banks' financial performance. The interesting judgment is the corporate governance factors will lessen the intensity of the effect of noninterest income and its components on the banks’ financial performance. The paper proposed some implications for optimizing corporate governance (board characteristics and ownership structure) and increasing non-interest income to improve Vietnamese commercial banks’ financial performance.

CEO Characteristics, Ownership, and Earnings Management in Indonesian Public Listed Companies with Two-Tier Boards

CEO Characteristics, Ownership, and Earnings Management in Indonesian Public Listed Companies with Two-Tier Boards

The impact of the CEO’s Islamic religiosity on tax aggressive behavior in family firms

Purpose The authors investigate the influence of CEOs’ Islamic religiosity on the level of tax aggressiveness within private family firms. In addition, this study aims to explore the moderating role of the CEO's ownership stake in the firm and the payment of Zakat. Design/methodology/approach The authors gathered data through surveys completed by 199 CEOs of Jordanian Islamic family firms. These survey results, along with financial statements, were used for multiple ordinary least squares regression analyses. Findings The results of this study reveal a negative relation between the extent of Islamic religiosity of the CEO and the level of tax aggressive behavior. Furthermore, the results suggest that an increase in the CEO’s ownership stake strengthens the negative association between the CEO’s religiosity and the extent of tax aggressive behavior. Finally, the CEO’s involvement in Zakat payments is shown to mitigate the negative association between the CEO’s religiosity and the extent of tax aggressive behavior. Originality/value In contrast to prior research that examines the relationship between religiosity and tax aggressiveness within the context of other religions, particularly Christianity, in listed firms, and primarily considers the religiosity of the overall firm environment, the study centers on the CEO’s religiosity in private Islamic family firms. The Islamic context further enables us to investigate whether the fulfillment of Zakat diminishes the moral obligation experienced by religious CEOs to fulfill their tax responsibilities.

A Meta-analysis of Corporate Governance and Financial Performance of Financial Institutions in Uganda

Purpose: The objectives of this meta-analysis are to look at how corporate governance practices affect firm value, how financial performance indicators and firm value relate to each other, how corporate governance affects economic performance, and how financial performance functions as a mediator in the relationship between corporate governance and firm value. Methodology: A desk methodology was used in this investigation. Secondary data collection is a common term used to describe a desk study research design. Because it is less expensive than field research, gathering data from already existing resources is preferred. Because the data was readily available through online journals and libraries, our current study examined previously published studies and reports. Findings: Research on the relationship between corporate governance mechanisms and firm performance is complicated, with conflicting results pointing to both beneficial and detrimental consequences. Robust corporate governance practices, such as CEO duality, ownership structure, board independence, and audit quality, are generally linked to increased firm performance. These systems improve the organization's strategic decision-making, accountability, and transparency, which improves financial results and lowers agency costs and shareholder value. However, a variety of contextual factors, including industry dynamics, legal frameworks, and cultural norms, can affect how effective these mechanisms are. While some research emphasizes the beneficial relationship between corporate governance practices and firm performance, other research raises concerns about possible drawbacks and emphasizes the necessity of ongoing adjustment to shifting market conditions. Implications to Theory, Practice, and Policy: Potential theoretical frameworks for future research evaluating the effects of corporate governance mechanisms on firm performance in Uganda include agency theory, stewardship theory, and resource dependence theory. To increase governance effectiveness, practitioners should give priority to increasing board independence and diversity. Legislators ought to impose legal frameworks that encourage accountability, openness, and moral conduct in corporate governance procedures.

PERAN MODERASI KONEKSI POLITIK PADA PENGARUH KARAKTERISTIK CEO TERHADAP KINERJA KEUANGAN PERUSAHAAN

Purpose: This study aims to provide empirical evidence of the impact of CEO characteristics (busyness, economic education, ownership) on corporate financial performance with CEO political connections as a moderating variable. Methodology/approach: This research is a quantitative study utilizing secondary data. The sample was taken using purposive sampling method, thereby obtaining data from 352 non-financial companies listed on the IDX during the 2016-2022 time period. The total observations made were 2306. The data was analyzed using multiple regression analysis support by the Stata 14 application. Findings: The regression analysis results indicating CEO economic education has a positive effect on return on asset (ROA). Meanwhile, CEO political connections moderate the positive effect of CEO ownership on corporate financial performance (ROA) and moderate the negative effect of CEO economic education on corporate financial performance (ROA). Practical implications: Companies should consider the characteristics of CEOs in accordance with the company in order to enhance financial performance. In addition, potential CEOs should improve their characteristics to have a positive impact on the corporate financial performance. Originality/value: This research develops a model related to CEO political connections in moderating the influence of CEO characteristics (busyness, economic education, ownership) on company financial performance.

Carbon consciousness: The influence of CEO ownership

Building on prior research on managerial ownership and firm performance, this study is the first to link CEO ownership to carbon commitment. We examine if firms led by CEOs with substantial ownership are more or less inclined to prioritise reducing carbon emissions than those without such ownership. We find that higher CEO ownership is associated with a lower carbon commitment, indicating that CEOs with more significant ownership do not prioritise carbon emissions reduction. However, we notice an inverted U-shaped relationship. Particularly, moderate CEO ownership (between 5% and 10% of total shares) has the stronger impact. The results are robust to alternative measures and approaches. The study provides empirical evidence on how CEO ownership can influence corporate carbon commitment and contribute to the global fight against climate change.

Shared Capitalism and Corporate Sustainability: Broad-Based Employee Share Ownership, CEO Ownership, and Corporate Environmental Performance

This research proposes that broad-based employee share ownership (ESO) affects corporate environmental performance (CEP). Drawing upon corporate governance literature, social exchange theory, and stakeholder utility theory, we propose that employees as owners adopt more favorable attitudes toward beneficial outcomes for CEP, and that the broad-based impact of ESO overwhelms the impact of CEO ownership. Also, we propose that these relationships are contingent upon trade union presence as a form of worker voice that amplifies the ESO influence on CEP. The empirical results from U.S. publicly traded companies from 2009 to 2016 indicate that broad-based ESO is linked to positive CEP by companies, and provides some support for all proposed hypotheses. This study provides scholarly and practical implications for the effects of shared capitalist modes of ownership and employee engagement on corporate sustainability.

Corporate Governance in Listed Firms: Does Market Competition Make a Difference?

Corporate Governance in Listed Firms: Does Market Competition Make a Difference?

Influence of CEO characteristics and audit committee on financial performance: Evidence from Iraq

The study aims to identify the effect of the CEO and audit committee characteristics on financial performance. To achieve the study's goal, panel data was adopted for 43 private Iraqi banks from 2018 to 2022 with 215 observations. The data was analyzed using Stata. Three models were used to analyze the data, and the preferred model was chosen by following several confirmation steps. The findings indicated that CEO education, CEO ownership, and CEO experience all influenced financial success. The audit committee's characteristics also played an essential role in the link between the characteristics of the CEO and financial performance. This study is added to critical studies for regulatory authorities and decision-makers, especially since shareholders and decision-makers always seek to appoint CEOs with the capabilities and talents to enable them to achieve shareholders' goals and enhance banks' competitiveness in different environments.

The Impact of CEO Characteristics on the Financial Performance of Family Businesses Listed in the Euronext Exchange

This paper identifies the CEO characteristics that have an impact on the performance of family businesses listed in the Euronext in the post-COVID 19 period. CEO characteristics are evaluated on two dimensions, i.e., personal characteristics and corporate governance mechanisms. A sample of 137 firm-year observations from Portugal, Luxembourg, the Netherlands, Ireland, France, and Belgium was chosen. CEO attributes of age, gender, education, and family membership were combined with corporate governance mechanisms of ownership concentration, CEO duality, CEO directorships, and CEO tenure, to predict return on assets and return on equity, using OLS regression. GMM estimation and Two-Stage Least Squares were employed to establish the robustness of the results. Among CEO personal characteristics, CEO family membership has a positive impact on return on assets, and a positive impact on return on equity. Among corporate governance mechanisms, CEO duality had a negative impact on return on assets, and a negative impact on return on equity. CEO ownership, and CEO tenure had a positive impact on return on assets, and a positive impact on return on equity. This paper’s value lies in its evaluation of the under-researched area of family businesses of Euronext-listed firms. It can be used by family businesses in the region, for the selection and training of CEOs to fulfill the goal of achieving superior financial performance.

Pengaruh Karakteristik Chief Executive Officer Terhadap Real Earnings Management Dengan Koneksi Politik Sebagai Moderasi

This study examined the relationship between CEO characteristics and real earnings management as a dependent variable and included political connections as a moderating variable for non-financial companies listed on the BEI (Indonesian Stock Exchange). The number of observation data sampled in this research was 1,546 data through a purposive sampling. The method applied in analyzing research data is using panel regression analysis and tested using Eviews10. Based on the results of this research, political connections have a significant positive effect on CEO tenure and real earnings management, however political connections cannot be proved to influence other variables in this study, including CEO ownership, CEO expertise, and CEO narcissism.

Board Structure, CEO Equity-Based Compensation, and Financial Performance: Evidence from MENA Countries

This paper investigates the association between board of director (BOD) structures and CEO equity-based compensation (long-term incentive) for commercial banks (conventional and Islamic banks) in MENA countries. Specifically, we take board size and board independence to measure the board structure. Furthermore, we investigate the influence of board structure on the association between CEO equity-based compensation and financial performance. Moreover, we compare conventional and Islamic banks in testing these relationships. Using a sample of 65 banks in MENA countries for the period between 2009 and 2020, we show a significant positive association between board size and CEO compensation. However, we find the same association between these variables for IBs, but the effect of board size on CEO compensation is less. We also show that board independence is negatively correlated with CEO compensation. Nevertheless, the relationship between board independence and CEO ownership is positive for IBs. For the moderating test, we find that effective board structure provides more incentives to the CEO, leading them to achieve higher financial performance. The Islamic bank’s business model (based on Shari’ah principles) contributes to the different influences of board structure on CEO compensation. Our results provide the insight that a strong and effective board is important for managing the executive’s compensation system. The findings of this study have implications for financial firms, policymakers, and regulators. Specifically, the study may help in understanding the benefits of different compensation structures relative to different types of financial firms.

The impact of environmental information disclosure on the cost of debt: evidence from China

ABSTRACT With the growing attention being paid to environmental issues by the public, environmental information disclosure (EID) has become a vital means for firms to convey their social responsibility and an important information source for lending institutions to assess firm credit risk. Based on the data of listed companies in China, a two-way fixed effects model is applied in this study to determine the impact of EID on the cost of debt. It reveals that EID can decrease companies’ cost of debt and that both CEO duality and ownership concentration play vital roles in this relationship. After the consideration of endogeneity problems and robustness testing, the conclusions remain valid.

CEO Ownership, Risk Management, and Bank Runs at Unlimited Liability Banks During the 1890s

CEO Ownership, Risk Management, and Bank Runs at Unlimited Liability Banks During the 1890s

Impact of CEO Ownership on Financial Performance: Evidence from Nigerian Listed Firms

This study investigates the impact of CEO ownership on financial performance among Nigerian listed firms from 2016 to 2022. The study population encompasses all the 157 companies listed on the Nigerian Exchange Group (NGX) as of January 2023. Employing census filtering criteria, a total of 94 companies qualifies as the sample for the study, contributing 658 firm-year observations over the seven years. Secondary data is extracted from the annual reports and accounts of the selected companies, covering the period from 2016 to 2022. The study utilized descriptive, correlation, and panel corrected standard error (PCSE) analyses to examine the data collected. The findings reveal a significant positive association between CEO ownership and financial performance, indicating that higher CEO ownership levels are associated with improved firm outcomes. This underscores the importance of aligning managerial incentives with shareholder interests to drive sustainable value creation. The results highlight the critical role of robust corporate governance mechanisms in fostering accountability and enhancing shareholder wealth within the Nigerian corporate landscape. To capitalize on these findings, policymakers, regulators, and stakeholders are urged to prioritize governance frameworks that promote CEO ownership and transparency. Moreover, future research directions are outlined, emphasizing the need for deeper exploration of the mechanisms underlying CEO ownership's influence on financial performance and comparative studies across diverse emerging market contexts. Through these endeavors, this study contributes to advancing our understanding of corporate governance dynamics and informing evidence-based policy interventions tailored to the needs of evolving market environments.

흔하지 않은 이름의 최고경영자와 기업의 연구개발 투자

Purpose - The purpose of this study was to examine the relationship between CEO name uncommonness and R&D intensity while focusing on CEO ownership and CEO tenure as moderators of the relationship.
 Design/methodology/approach - This study collected data from various American databases such as national data on given names from Social Security Administration, COMPUSTAT, and Execucomp. The sample of this study includes 2,494 (firm-year) observations from U.S. firms between 2005-2011. This study conducts Feasible Generalized Least Square (FGLS) regression analysis to test the hypotheses.
 Findings - First, we found CEO name uncommonness was positively related to R&D intensity. In other words, CEOs with unusual names prefer being distinctive by increasing R&D investments. Second, we examine the moderating roles of CEO characteristics (i.e., CEO ownership and tenure). The results show that CEO tenure strengthens the positive relationship between CEO name uncommonness and R&D intensity.
 Research implications or Originality - First, this study extends the CEO characteristics and R&D literature by investigating how CEO name uncommonness affects R&D intensity. In addition, our study also supports the intitutionalization of CEO power arguments by showing that CEOs with unusual names are more likely to pursue distinctive strategies when they have longer tenure. For practical implications, our results allow the investors to better predict corporate future R&D expenses. It suggests that ceteris paribus, CEOs with unusual names, vis-a-vis CEOs with common names, are more likely to increase R&D expenses.