Role Of CEO Research Articles

Is Marriage a Turning Point? Evidence from Cash Holdings Behaviour

AbstractGiven that marriage transforms people, with wide‐ranging and long‐lasting impacts, we examine the role of CEOs' marital status on firms' cash holdings behaviour. Using a large sample of US‐listed firms, we find that single CEOs stockpile more cash than their married counterparts do. Our finding is robust to controlling for various CEO characteristics, CFO influence, tackling endogeneity concerns and using alternative measures of cash. Moreover, we show that exogenous CEO turnover resulting in appointments of single (married) CEOs increases (decreases) cash holdings. Additional results show that single‐CEO firms practise a more conservative payout policy and save more cash from operating and financing cash flows. Consistent with agency theory, single CEOs extract more compensation from the accumulated cash, leading to a lower value of cash holdings. External corporate governance mechanisms mitigate the relationship between single CEOs and cash holdings. Our results show that single‐CEO firms are more prone to agency problems.

Improving subsidiary performance via inpatriate assignments: The role of host country national subsidiary CEOs’ social ties and motivational cultural intelligence

Inpatriation experience (i.e., working at headquarters) for host-country national (HCN) subsidiary managers is supposed to be beneficial for foreign subsidiaries’ knowledge transfer and financial performance. Applying upper echelons theory, we investigate whether HCN subsidiary CEOs with inpatriation experience promote knowledge transfer from multinational corporation (MNC) headquarters to their subsidiaries via the formation of social ties at MNC headquarters to drive subsidiary performance. Moreover, we theorize and investigate if HCN subsidiary CEOs’ motivational cultural intelligence can amplify the positive effect of inpatriation experience. Combining survey and archival data from 289 subsidiaries of MNCs in South Korea, our results partially support our theoretical model. Our findings offer important implications for expatriate staffing, inpatriation assignments, and subsidiary management.

We are different and yet the same: the role of CEOs’ regulatory focus and attention in SMEs’ innovation orientation preferences

PurposeDrawing upon upper echelon, regulatory focus and attention theories and focusing on SMEs, the purpose of this paper is to answer questions on how the motivational disposition (promotion vs. prevention regulatory focus) of CEOs affects their information search patterns (i.e. search selection and intensity) and consequently organizational level engagement in different types of innovation activities (exploration vs. exploitation).Design/methodology/approachA quantitative study was conducted collecting data from the CEOs of SMEs operating in the dynamic wine and spirits industry in Greece. The data were collected in two independent time streams and the proposed theoretical model was tested by applying OLS regression analysis.FindingsThe current research provides evidence that differences in CEOs’ level of promotion and prevention focus trigger different information search selection and search intensity patterns. Nonetheless, the attention to innovation components act as mediators only in the hypothesized relationships between a CEO's level of prevention and promotion focus and exploration. Paradoxically, filtered through attention to innovation and triggered from the same motive, that is to reduce negative emotions, promotion focus CEOs choose to direct resources to exploitation and avoid investing in exploration, whilst the opposite was supported for prevention focus CEOs.Practical implicationsThe results highlight the important role of a CEO's regulatory focus orientation in promoting diverse attention to innovation patterns and firm-level innovation tendencies towards exploration and/or exploitation.Originality/valueThis study's contributions extend and combine the theories of regulatory focus, UET and attention in the field of managerial/entrepreneurship behavior and innovation. Therefore, they are valuable for understanding the determinants of firm-level innovation choices (exploration vs. exploitation) in SMEs.

Does the CEOs' hometown identity matter for firms' environmental, social, and governance (ESG) performance?

The environmental, social, and governance (ESG) performance is a vital pursuit of firms' strategy and has caused substantial influences on firms' behavior and outcomes. Therefore, exploring how to facilitate the firms' ESG performance is necessary. This paper examines the role of CEOs' hometown identity in facilitating firm's ESG performance. Based on a sample of Chinese listed firms during 2010-2018, we compare the ESG performance of firms with hometown CEO with that of firms without hometown CEO and find that CEOs' hometown identity is associated with significantly higher ESG performance. The benchmark results still hold after instrumental variable regression, placebo test, propensity score matching, lagging, and altering the measurement of CEOs' hometown identity. Additional analysis shows that CEOs' hometown identity exerts a more prominent positive effect on ESG performance among firms with higher financing constraints and SOEs. Our findings reveal a bright side of CEOs' hometown identity: it facilitates ESG performance. Therefore, this paper's conclusion sheds new light on the bright side of CEOs' hometown identity from the perspective of firms' ESG performance and provides insights into how to improve ESG performance.

The role of CEO accounts and perceived integrity in analysts’ forecasts

Although holding oneself accountable is deemed important for effective leadership, CEOs tend to demonstrate a self-serving tendency when reporting their company’s performance to the financial community. Leaders do so by providing internal accounts for favorable performance and external accounts for unfavorable performance. The effects of this strategy on the financial community’s judgments of a company’s value, however, is frequently mixed. Guided by the actor-observer perspective, we propose that observers (i.e., analysts) are likely to provide higher forecasts for firms whose CEOs attribute unfavorable organizational outcomes to internal factors and favorable outcomes to external factors. Integrating this conceptual perspective with attribution theory, we predicted that CEO accounts will have a stronger influence on analysts’ forecasts when the company performs unfavorably versus favorably. Results of archival data analysis (N = 35,676 quarterly earnings conference calls) generally supported our hypothesis, and were then replicated in a pre-registered follow-up field experiment (Study 2; N = 307), showing that analysts’ perceptions of the leader’s integrity mediated the effects of CEO accounts on analysts’ evaluation of the company. The mediating role of leader integrity was only significant when the company performed unfavorably (versus favorably). The present research adds to theory on causal accounts and perceived leader integrity, while offering guidance on how leaders’ accounts can relate to observers’ evaluations of those leaders and their companies.

Dynamic Relationship Between Board of Directors and Corporate Sustainability Performance: Evidence from Energy Sector

The 2030 agenda for sustainable development establishes a new global sustainability target, with corporations expected to contribute significantly by implementing sustainable practices. One strategy for engaging corporations in sustainable practice focuses on corporate governance (CG) mechanisms, such as the board of directors (BOD). On the premise of stakeholder theory, agency theory and resource dependency theory, the relationship between BOD and corporate sustainability performance (CSP) was investigated using the panel data analysis. Utilising a sample of 335 energy sector corporations from 48 countries our GMM estimation shows a significant relationship between CSP and board size, different positions for CEO and Chairperson roles, and interlocking directors. The findings also showed that having more independent directors on a board lowered CSP, while gender and cultural diversity did not affect CSP. The implications of these findings to policymakers on the energy sector corporations are not limited to improving CSP via formulating and implementing specific CG strategies and policies that are beneficial but also provide explicit information on how corporate energy sectors can change their behaviour with respect to sustainable practices and good governance to address social and environmental issues.

Do Women Have the Right Skills, Network and Support to Become CEOs?

This study investigates how women board members in listed companies perceive the fit between women’s leadership skills and how the role of CEO in listed companies is defined in the recruitment process. Qualitative in-depth interviews were conducted with 22 women board members, representing all listed companies in Iceland, to obtain an understanding of their experiences regarding support of women candidates and whether they believe estimates of women’s leadership skills contribute to the small number of women holding the position of CEO in a listed company. Data analysis revealed three themes; the first theme concerns networks and their impact on the appointments of CEO; the second deals with support for women seeking CEO positions and the third considers assessment of women’s leadership skills in relation to CEO appointments. The findings provide a new insight into the experience of women board members as regards the assessment of women’s leadership skills and the support to take on the position of CEO in listed companies in Iceland, but only limited research is available about the topic. The findings indicate that when selecting the CEOs of listed companies, it is a matter of importance that the applicant is a member of a male network and complies with masculine stereotypes of leadership styles. The findings suggest that when appointing CEOs of listed companies there is more support for men’s overconfidence than women’s reserved demeanour and men’s overconfidence is perceived as a better fit to how the role of CEO is defined in the recruitment process. The study provides new insights into how these outdated ideas on effective leadership and gender roles impact decisions when CEOs of listed companies are selected with corresponding likelihood of women being overlooked as successful candidates in the selection process.
 Keywords: Gender, effective leadership, CEO recruitment, listed companies, boards, stereotypes.

When political ties matter for firm performance? The role of CEO’s political utilization orientation and prosocial orientation

When political ties matter for firm performance? The role of CEO’s political utilization orientation and prosocial orientation

Effect of Corporate Governance Practice on Private Banking in Iraq: Empirical research in private banking in Iraq

The research will examine if private banks in Iraq practice principles of corporate governance which were suggested and confirmed by the Basel Committee on Banking Supervision (2000). The aims of the research are identify the role of BOD and CEO in corporate governance practice, role and experience of board directors in corporate governance practice, and the role of compliance policy in corporate governance practice. The research collected data by distributing 120 questionnaires randomly to high-level bank employees involved in corporate governance. The target population comprises credit risk managers, head departments, CEO, and board members. The researcher designed a questionnaire that include 92 closed questions. The research shows that private banks in Iraq, in general, are effective in applying the principles of corporate governance from the point of view of the respondents in general. The research finds also that the internal audit function assists effective manner senior management and the board of directors in the efficient and effective discharge of their responsibilities.

Planning for the next 100 years of C&EN

This is a guest editorial by Al Horvath , CEO of the American Chemical Society I am honored to have moved into the role of CEO of the American Chemical Society on Jan. 1, 2023. ACS has flourished for 147 years, and my job, working along with our volunteer governance and staff leaders, is to make certain that the society is positioned for success well into the future. We benefit from the great work of our predecessors and are driven to hand off an even stronger society to our successors. Also in 2023, ACS celebrates the 100th anniversary of our flagship publication, Chemical & Engineering News . Frequently cited as one of our leading member benefits and winner of numerous awards, C&EN is eagerly consumed in many formats by members and nonmember readers alike. And while I look forward to the celebrations and fanfare for the centennial, I have set

The role of earnings management as mediator the effect of male CEO masculinity face on Research & Development

This study aims to explain the role of earnings management in mediating the influence of male CEO masculinity on research & development. This study uses a quantitative approach with a population and research sample using companies on the Indonesia Stock Exchange in 2017–2021. This study collects facial images identified as male CEOs from data on the Indonesia Stock Exchange website and company websites and utilizes Google search. The data analysis method in this study uses Structural Equation Modeling which links theory, concepts and data that can be applied to research variables using Stata software. The findings explain that the role of earnings management mediates the influence of the male CEO’s masculinity face on research &development, meaning that the increase and decrease in the part of earnings management has an impact on increasing and decreasing the masculinity face of male CEOs also has an impact on increasing and decreasing research & development. The practical impact of the research results can help the Indonesian Institute of Accountants develop Financial Accounting Standard No. 19 in Indonesia. Theoretical implications of the research results can explain agency theory and behavioral consistency theory. The findings empirically have implications for company management in making policies related to the face of male masculinity which have an impact on earnings management practice policies and policy making on research & development expenditures, so that the empirical findings can be used by company management and the Indonesian government as policy makers in developing countries as a comparison of developed country policies. Throughout the study’s observations to date, it has not found any research on the topic of the role of profit management mediating the influence of the masculinity of male CEOs associated with research & development costs. The distinct role of male CEOs affects research & development policies and cost. The originality of this study can be shown by the differences from previous studies, first (Jia et al., Citation2014) explain that the face of masculinity of male CEOs has a positive effect on profit management practices. The second (Kamiya et al., Citation2018a; Asyik et al., Citation2022) explains that the face of masculinity of male CEOs has a positive impact on leverage. Research & development in the company have an essential position to increase the company’s long-term profitability

Women in CEO duality and firm performance in Europe

This paper investigates gender dimensions in the relationship between CEO duality and firm performance, combining feminist theories and stewardship arguments. Using a large sample of listed firms from 23 European countries in the 2014–2020 period, we have found that CEO duality has a positive effect on corporate performance when a woman holds both the roles of CEO and board chair. These findings highlight the ‘bright side’ of women in governance, suggesting the presence of women in double leadership positions can amplify benefits and/or limits costs related to CEO duality. Having a woman in CEO-chair leadership could optimize a firm’s use of its resources and more effectively contribute to improving performance. Directions for future research could include a better understanding of women in leadership in the organizational domain. Our results have a number of managerial and political implications.

Firm’s innovation activities across ASEAN countries: Examining the impacts of management experience, management practices and the moderating role of female CEOs

Firm’s innovation activities across ASEAN countries: Examining the impacts of management experience, management practices and the moderating role of female CEOs

When businesses go digital: The role of CEO attributes in technology adoption and utilization during the COVID-19 pandemic

COVID-19 has prompted a rush of technology adoption as businesses turned to digital technologies to avert closure in the face of an unprecedent pandemic. This study examines the adoption and utilization of e-commerce and remote work technologies among small and medium enterprises (SMEs) during the pandemic. Building on various streams of research on technology adoption and utilization, we elaborate how CEO gender and experience can shape risk-taking attitude and crisis responsiveness, influencing technology adoption and utilization decisions. Analysis using a rich dataset of >20,000 enterprises across 42 countries revealed that female CEOs were significantly less likely to adopt remote work technologies; moreover, female CEOs leading small-sized enterprises were less likely to adopt e-commerce. However, CEO gender was not associated with the utilization intensity of remote work and e-commerce technologies. CEOs' industry experience was found to have an inverted U-shaped relationship with the adoption and utilization of both e-commerce and remote work technologies. These results reveal that top management decisions attributable to CEO experience, and to a lesser degree to CEO gender, can help explain divergent levels of digital technology adoption and utilization during the pandemic.

The sharing through corporate sustainability for improving corporate performance in state-owned firms.

This research aims to investigate the appropriate ownership structure via mediating role of corporate sustainability on corporate performance in state-owned companies of Pakistan by examining the role of organizational governance, agency problems, and current issue of CEO ownership. Most effective theories within the context of the developing country of Pakistan are taken into account and study explores the following issue. First, ownership structure is more effective and could provide major findings in corporate, innovative, and environmental performance. Second, corporate, innovative, and environmental performance is receiving high attention due to the critical business environment in Pakistan. There are many factors that stimulate the significance of the corporate, innovative, and environmental performance. In this phase, the role of CEO and responsibilities towards the company and its performance is analyzed. This study has conducted the theoretical survey in both foreign and home countries. Further, this step is hallmark in providing some countermeasures recommendation for the betterment of state-owned companies of Pakistan. Third is whether the CEOs and shareholders could enhance the corporate, innovative, and environmental performance. Empirical evidence data is collected via structured questionnaire from SO companies operating in the emerging market of Pakistan. In addition, empirical research in this study includes descriptive statistics tests, co-relation test, and analyses generated hypotheses through Analysis of a Moment Structure (AMOS) using structural equation modeling. Our research findings recommend CEOs and top managers to utilize their financial resources in an efficient way to achieve the advantage.

Board diversity: Moderating effects of CEO overconfidence on firm financing decisions

The importance of CEO overconfidence in capital structure decision-making has drawn attention of many scholars in the past. Despite this, literature on the subject to-date does not offer consensus on how CEO overconfidence biases interact with corporate governance in determining company strategies for financing its capital investments. Our paper aims to address a specific gap in the literature concerning the potentially moderating role of board diversification on the CEO overconfidence and its impact on corporate capital structure decision-making. In a major innovation to the literature, we look at board diversity from five perspectives: gender and age diversity, board independence, board size, and the duality of the roles of CEO and chairperson. To make our findings methodologically robust, we consider two measures of the CEOs’ overconfidence: media-based measure (implied measure of overconfidence) and CEO stock purchases (revealed measure of overconfidence). We extend our analysis to the top 100 US listed companies over 2011–2019 — the period between two systemic crises, the Great Recession and the Covid19 pandemic. We show that general effect of board diversity on CEO overconfidence is highly sensitive to different measures of overconfidence. CEOs’ implied overconfidence has a negative correlation with debt financing of the company, which is consistent with the findings of Heaton (2002). These results do not hold for the revealed measure of CEO overconfidence. Board diversity plays an important role in moderating the impact of CEO overconfidence on capital structure decisions. This holds for gender diversity, and for the board size and the number of independent directors, confirming prior literature on the subject. However, age diversity of the board and the duality of the CEO and chairperson are insignificant in moderating CEO overconfidence, which adds new insights to the literature to-date.

Generalni direktor kao glavni strateg

Great leaders move us. They ignite our passion and inspire the best in us. When we try to explain why they are so effective, we talk about strategy, vision or powerful ideas. But the reality is many rewards: great leadership works through emotion. No matter what leaders set out to do-whether it's creating strategy or mobilizing teams for action-their success depends on how they do it. Even if they get everything else right, if leaders fail at this basic task of moving emotions in the right direction, nothing they do will work as it could or should. But where is the school for the person in charge of getting the best results out of all these members of the organization? There is no school for general managers - except the school of experience. CEOs have to learn on the job how to run a company, and they have to learn while all stakeholders are watching. Statistics say that over 50% of CEOs are fired in their first five years at the helm of an organization. Academic literature on strategy and strategic management mainly deals with the definitions of concepts and the process of analyzing opportunities and threats in the environment and the process of strategy development, while the process of realization and evaluation of the chosen strategy is left out and left to experts for implementation. Developing a strategy is difficult, its implementation is even more difficult, and therefore it is logical that it is a task for the most capable, for the leader, for the general manager. The CEO role is the only role in the organization that does not have a backup actor and no previews or reruns, therefore it is the most difficult role in the organization, you have to play "for the Oscar" on the first try; have a crystal-clear vision of the organization's future and the determination to achieve despite all obstacles. In this article, I tried to choose examples for you that indicate the importance of the unique role of the general director in the realization of the chosen strategy for the successful adaptation of the organization to changes in the environment. Only the fittest to adapt to the changes survive.

The relationship between the structure of the board of directors and firm performance in family versus non-family firms

This paper investigates the impact of four characteristics of the board of directors (board size, board independence, leadership structure and board meetings) on firm performance (Tobin's q). Accordingly, four hypotheses have been developed. The analysis is based on data (objective variables) from 221 firms operating in three countries (Spain, Portugal and Italy) and differentiates between non-family-controlled businesses (NFCBs) and family-controlled businesses (FCBs). Considering the cross-sectional (three countries) and the time series (six years) nature of the data, we used a panel data estimation approach. Our findings show that, although corporate governance recommendations advocate larger, more independent and proactive boards, as well as structures that ensure the separation of the chairperson and CEO roles, these board features do not always result in more effective boards. Indeed, smaller, less independent and less active boards and dual leadership structures are tied to better performance by the FCBs in our sample as compared with the NFCBs.

Financial and extra-financial determinants of CEOs’ sustainable discourse: a longitudinal analysis on the US market

The aim of this paper is to identify, through the discourse, the managerial sustainable behaviors that lead to both financial and extra-financial performance. Under the prism of alignment and instrumental theories on corporate social responsibility (CSR), we investigate the moderating role of CEOs by examining the interrelation between CEOs’ introductory discourses in sustainability reports and financial and extra-financial performance. Through the use of a logit model and textual analysis, we conduct a longitudinal analysis on firms listed on the S&P500 between 2014 and 2019 in three sectors. We find that CEOs’ discourse is interrelated with financial and extra financial performance. Their discourse is a key factor in understanding whether CEOs’ CSR strategies meet the main sectorial strategic issues.

Miten johtajuutta viestitään? Suomalaiset toimitusjohtajat Twitterissä

How is leadership communicated? Finnish CEOs on Twitter Twitter offers CEOs the opportunity to communicate with a wide audience. For corporate stakeholders, CEO communication is important because it can affect, for example, the corporate image or the information that company’s stakeholders receive about the company’s vision or values. So far, however, not much is known about the Twitter communication of Finnish CEOs or the leadership that they communicate on Twitter, so this article addresses these aspects through the strategic leadership communication theory (Ki 2015) and Glick’s (2011) CEO roles. The data have been collected over a period of seven months and consists of a total of 132 public references from the CEOs whose companies are listed on the Helsinki Stock Exchange or the TE500 CEO list. The data were analyzed with qualitative content analysis. The main results show that the Twitter use of Finnish CEOs is interactive yet rather inactive