Role Of CEO Research Articles

Leading a Healthcare Organization During a Period of Social Change: A Qualitative Study of Chief Executive Officers.

In recent years, organizational leaders have faced growing pressure to respond to social and political issues. Although previous research has examined the experiences of corporate CEOs engaging in these issues, less is known about the perspectives of healthcare leaders. To explore the experiences of healthcare CEOs engaging in health-related social and political issues, with a specific focus on systemic racism and abortion policy. Qualitative study using semi-structured interviews from February to July 2023. CEOs of US-based hospitals or health systems. One-on-one interviews which were audio recorded, professionally transcribed, and analyzed using thematic analysis. This study included 25 CEOs of US-based hospitals or health systems. Almost half were between ages 60 and 69 (12 [48%]), 19 identified as male (76%), and 20 identified as White (80%). Approximately half self-identified as Democrats (13 [55%]). Most hospitals and health systems were private non-profits (15 [60%]). The interviews organized around four domains: (1) Perspectives on their Role, (2) Factors Impacting Engagement, (3) Improving Engagement, and (4) Experiences Responding to Recent Polarizing Events. Within these four domains, nine themes emerged. CEOs described increasing pressure to engage and had mixed feelings about their role. They identified personal, organizational, and political factors that affect their engagement. CEOs identified strategies to measure the success of their engagement and also reflected on their experiences speaking out about systemic racism and abortion legislation. In this qualitative study, healthcare CEOs described mixed perspectives on their role engaging in social and political issues and identified several factors impacting engagement. CEOs cited few strategies to measure the success of their engagement. Given that healthcare leaders are increasingly asked to address policy debates, more work is needed to examine the role and impact of healthcare CEOs engaging in health-related social and political issues.

Unlocking the power of roots: Local CEOs and corporate maturity mismatch

This paper investigates the impact of local CEOs on corporate maturity mismatch. We find that local CEOs can significantly mitigate the issue of corporate maturity mismatch, mostly by resolving agency conflicts, boosting information disclosure, and alleviating financial constraints. Furthermore, the positive impact of local CEOs is particularly pronounced in non-state-owned enterprises, growth stage firms, and innovative industries. Further analysis suggests that increasing equity financing capacity and combining industry and finance significantly improves the effect of local CEOs on maturity mismatch, whereas debt pressure from local governments crowds out bank financing space, significantly suppressing the role of local CEOs.

Ousted

Abstract Founder-CEOs may hold power in a corporation in myriad ways: through managerial control, by designating seats on the board, or by holding significant voting power, which can be amplified by dual-class structures with superior voting rights. The debate on control mechanisms such as dual- and multi-class stock structures, as well as concomitant concerns about the cult of founder-CEOs and their grip on managerial power, have been a central theme of corporate law and governance in an era of “founder-friendly” startup governance and tech company dominance of markets. Amid the twists and turns of this debate, we observe that a small but important point is missing: a substantial number of founder-CEOs have been ousted—forced or pushed to step down from the CEO role despite maintaining important indicia of control that, according to prevailing theory, empowers them to withstand such pressures. We argue that a variety of countervailing forces and factors can work to limit the durability of a founder-CEO’s power and may ultimately lead to their resignation under pressure even though they may hold significant or even controlling voting power. Among these forces are performance problems or poor financial position of the company or its stock value, legal concerns, employee and public pressure, as well as personal motivations and struggles. A founder-CEO who faces strong opposition and adverse effects on the company’s performance is often better off stepping down than attempting to maintain managerial control. Further, we explore the limits of these forces on powerful founder-CEOs—they can only do so much to serve as guardrails against voting control and they exist in a particular moment. Ousting can be temporary, and founder-CEOs can find their way back to the throne or see a rebirth in new ventures. Finally, we examine how an appreciation of these forces and their limits can shed new light on why public investors might be willing to accept multi-class structures in venture-backed startup IPOs.

The Uncharted Path: Understanding the Gap Between Chief Nursing Officers and CEO Roles in Healthcare

The Uncharted Path: Understanding the Gap Between Chief Nursing Officers and CEO Roles in Healthcare

Revisiting corporate governance mechanisms and real earnings management activities in emerging economies

PurposeThis study aims to investigate the effects of main corporate governance (CG) mechanisms used in Iran on the relationship between managers’ rewards and real earnings management activities.Design/methodology/approachPanel data analysis is performed on 101 companies listed on the Tehran Stock Exchange during the past seven years (from 2015 to 2021).FindingsThe percentage of non-executive members of the company’s board of directors and the percentage of acquisition of the company’s largest shareholders have a negative significant effect on the relationship between abnormal operating cash flows and managers’ remuneration. Moreover, the separation of the CEO from the chairman and vice chairman of the board has also a negative significant effect on this relationship. However, concentration of ownership does not have a significant effect on the relationship between abnormal operating cash flows and managers’ rewards.Practical implicationsThe study provides policymakers and governing bodies with a better understanding of the effects of the percentage of non-executive board members, concentration of ownership, percentage of major shareholders and duality of the role of CEO (or president) from the chairman and vice chairman of the board on the relationship between managers’ rewards and earnings management.Originality/valuePrevious studies focus mainly on accrual-based earnings management. This study investigates real earnings management and provides empirical evidence on the most effective and significant CG dimensions in Iran. It embraces the fact that CG may have the same principal concept in different markets, but the mechanisms may vary significantly, thus opening the door for more comparative future research.

CEO Power and Firm Value: Affirmative Action Implications

Objective: This research aims to reveal the critical role of CEO leadership and affirmative action policies, particularly those related to gender equality, in enhancing firm value. Research Design: This study employs a quantitative design by analyzing secondary data from the ESG Intelligence Dataset and publications of the Indonesia Stock Exchange from 2017 to 2021. Population and Sample: The population of this research comprises non-financial companies listed in the Kompas 100 Index in Indonesia. The sample was selected using a purposive sampling method, yielding 42 companies per year, resulting in a total of 210 observations. Methodology: The data were analyzed using multiple regression analysis to examine the influence of CEO power and affirmative action on firm value. Findings: The research findings indicate that CEO leadership has a positive and significant impact on firm value. Affirmative action policies related to gender equality also play a positive role in strengthening the effect of CEO leadership on firm value. Conclusion: This research provides in-depth understanding and offers an innovative perspective for companies to optimize the role of CEOs and affirmative action policies to enhance long-term firm value. The primary recommendation is that companies should consider implementing affirmative action policies, especially those related to gender equality, to help align the interests of stakeholders and improve corporate governance.

Global board reforms and corporate acquisition performance

This paper examines the effect of board reforms on corporate acquisition performance using data from 31 countries. Using a difference-in-differences design, we find that the implementation of board reforms in the acquirer's country significantly increases acquirer returns. The increase is driven by reforms involving board independence, but not reforms involving audit committee independence nor the separation of CEO and board chair roles. Further analysis shows that the uplift in acquisition performance following improvements in board independence is strongest in acquirers with more agency problems. The ‘Board reform strengthening’ effect is concentrated in larger acquirers, with more free cash flows, executing large and public-target deals and operating in countries with ex-ante poor investor protection. The empirical evidence indicates that reforming board independence effectively alleviates agency problems between managers and shareholders and improves corporate acquisition performance.

Does climate change exposure impact on corporate finance and energy performance? Unraveling the moderating role of CEOs’ green experience

This study examines how firm-level exposure to climate change shapes sustainable financial and energy performance. We utilize a robust two-way fixed-effects approach to examine 2905 Chinese listed enterprises spanning 2010 to 2022. Our primary objective is to unravel the direct effects of climate change exposure (CCE) on corporate financial performance (CFP) and corporate energy performance (CEP), and to explore how CEOs' green experience moderates these effects. The findings delineate significant adverse effects on CFP and CEP stemming from CCE. Notably, augmenting CEOs’ green experience can help to mitigate these effects. We also emphasize the pivotal roles of green technology innovation (GTI) and the augmentation of environmental, social, and governance (ESG) performance as primary conduits through which CCE influences CFP and CEP. Our study illuminates nuanced variations in these influences that are based on climate risk type, geographical regions, firm scale, and industry. These insights offer fresh theoretical perspectives and robust evidence that are crucial for tackling climate-related challenges, especially in the context of emerging economies such as China. They also provide important implications for government actions, suggesting ways to refine environmental policy at the firm level.

Investigating the Role of Non-family CEOs in Knowledge Diffusion and Investment Behavior in Family Firms During Succession

Investigating the Role of Non-family CEOs in Knowledge Diffusion and Investment Behavior in Family Firms During Succession

Inventor CEOs and financing of innovation: Evidence from IPOs

We examine the role of inventor CEOs—those with personal hands-on experience of innovation—in the financing of innovation. Using a sample of technology initial public offerings (IPOs) in the US, we document that inventor CEOs are associated with lower underpricing at the time of the IPOs. Inventor CEOs also appear more capable of taking their firms public during “cold” IPO market periods when financing conditions are more difficult. Analyses based on regulatory changes and a founder-only sample suggest that these relationships are causal. Further, inventor-led firms appear to invest the IPO proceeds more productively, as reflected in the firms’ superior innovation outcomes in the post-IPO period. The stock market fails to fully understand these relationships, and IPOs led by inventor CEOs produce large positive abnormal returns in the three years following the offering. Our findings are consistent with inventor CEOs facilitating innovation financing for startup firms by effectively reducing information asymmetry and valuation uncertainty of firm's innovation capital for outside investors.

Informal board hierarchy and corporate ESG performance

AbstractAgainst the backdrop of driving global economic sustainability, corporate Environmental, Social, and Governance (ESG) performance has gradually emerged as a crucial theoretical and practical concern. This study aims to enrich the theoretical understanding of the correlation between corporate governance and ESG. Notably, the theoretical contribution is based on the relational contract theory, indicating the significance of the informal structure and implicit characteristics of the board of directors for corporate ESG performance. Using Chinese listed firms as samples, this study empirically examines and reveals a positive correlation between the informal board hierarchy and corporate ESG performance. Moreover, based on theoretical deduction, this study identifies internal control, innovation efficiency, and financial performance as important mechanisms through which the informal board hierarchy promotes corporate ESG performance. Further analysis indicates that in firms characterized by higher board interaction, lower shareholding concentration, and the combination of the roles of chairman and CEO, the promoting effect of the informal hierarchy on corporate ESG becomes significantly more pronounced. Our findings contribute to the understanding of relational contract theory in the field of corporate sustainability, enriching the literature on corporate governance and ESG, and providing decision‐making references and practical insights for optimizing corporate development.

Addressing environment, social and governance (ESG) investment in China: Does board composition and financing decision matter?

This study examined the link between board composition and environment, social and governance (ESG) investment, and how financing decisions moderate this nexus. The study constructed hypotheses using insights derived from stakeholder and agency theories. We used secondary data from 2010 to 2022 to conduct an empirical analysis using the system Generalized Method of Moments (GMM) and Fixed Effect (FE) estimators. This study found a positive and significant relationship between board independence, sustainability committee, gender diversity, managerial ownership, board meetings and ESG investment. We also found a negative connection between CEO duality, board size, foreign nationals on the board, annual remuneration, and ESG investment. Furthermore, financing decisions significantly moderated the relationship between board composition and ESG investment. The results confirm the importance of board composition and financing decisions in ESG investment in Chinese manufacturing firms. The results show that splitting the CEO and chairperson roles and frequent board meetings can improve a company's ESG investment. Policymakers should facilitate company operations by providing regulations for ESG investment.

Institutional entrepreneurship and digital transformation: The role of outsider CEOs

The widespread diffusion of digital technologies forces incumbent firms to drive their digital transformation. Digital transformation not only involves a change in strategy but also requires new institutional logics for firms helping to operate in digital business environments. Firms increasingly hire outsider CEOs to cope with this development, but the necessary institutional change questions whether outsider CEOs can indeed realize digital transformation. We draw on the institutional entrepreneurship perspective to make sense of the role of outsider CEOs in digital transformation. We theorize that digital transformation awareness stemming from prior experience with digital transformation enables outsider CEOs to act as institutional entrepreneurs and realize digital transformation. We further argue that outsider CEOs with digital transformation awareness particularly benefit firms facing abrupt rather than accumulative digital transformations. To test our hypotheses, we introduce a novel, machine-learning-based digital transformation measure. Panel data regressions provide support for our predictions. Our findings contribute to a more nuanced understanding of the role of outsider CEOs as change agents.

Climate change disclosure and firm value in a frontier market: Exploring the determinants

AbstractWe examine the factors that influence climate change disclosure and its effects on firm value in the context of Sri Lanka. By leveraging data spanning 1031 firm‐year observations from 2017 to 2022, an innovative machine‐learning technique is employed to quantify the level of climate change disclosure within annual corporate reports. Our findings indicate that factors such as firm size, size of the board of directors, the presence of independent and non‐executive directors on the board, and gender diversity of the board positively impact the extent of climate change disclosure. Notably, CEO duality, where the CEO and chairman roles are held by the same individual, demonstrates a negative relationship with climate change disclosure, suggesting that distinct roles can enhance transparency. This underscores the significant role of robust corporate governance practices in promoting environmental transparency and accountability. Additionally, the paper further assesses the implications of climate change disclosure on firm value, revealing that enhanced transparency in climate change disclosure positively impacts firm value.

Promote or Inhibit: CEO Career Concerns and Enterprise Digital Transformation

The digital transformation of Chinese enterprises is imperative, and digital transformation is a typical long-cycle strategic decision, so it is necessary to analyze the motivation of digital transformation from the perspective of time, especially career. However, there is little research to discuss the impact of key role CEOs on digital transformation based on their career tradeoffs. Therefore, this paper chooses manufacturing enterprises as research samples to study the relationship between CEO career concerns and enterprise digital transformation. This paper finds that there is an inverted U-shaped nonlinear relationship between CEO's career concerns and enterprise digital transformation; Within a certain range, CEO career concerns positively promotes digital transformation, but after a certain threshold, it inhibits digital transformation. This inverted U-shaped relationship is weakened by the increasing power intensity of the CEO and the short-sightedness of management. This paper describes the role of CEO in the digital process from the perspective of career concern, expands the antecedents of digital transformation, and provides some implications for enterprises to promote digital transformation.

Board structure and risk-taking behavior: evidence from the financial sector of Pakistan

PurposeThe 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/approachBy 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.FindingsKey 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 implicationsPolicymakers, 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/valuePrior 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.

Corporate Governance as Antecedent of Financial Distress: Case Study of Textile Industry of Pakistan

Purpose: The present research studies the effect of corporate governance practices on the level of financial distress of the Textile companies listed at PSX. 
 Design/Methodology: Data from 2019 to 2022 from a sample of 43 companies operating in the weaving, spinning and composite textile industry was assessed in the study. Regression analysis was used to predict the impact of board independence, board size, audit committee independence and duality in the role of CEO and chairman on the financial distress.
 Findings: The findings reveal that board independence, board size and the duality in the role of Chairman and CEO impacts the financial distress level of the companies and that in companies wherein governance structure is strong, the likelihood of financial distress is lower. However, the effect of Audit committee independence is found to be insignificant in this study.
 Originality: This study provides support to the companies in understanding the importance of governance structure and its significance in reducing financial distress level. The findings of the study will be of value to the companies operating in textile sector by enabling them to strengthen their governance structure to address the financial distress situation. Further, this study will help the regulators in drafting the governance requirements for the companies and also educating them about the importance of the latter. In future, other studies using different proxies of corporate governance like gender diversity in the board, number of board meetings and characteristics of audit committee may be conducted..

Leadership to Accelerate Healthcare's Digital Transformation: Evidence From 33 Health Systems.

The COVID-19 pandemic, healthcare market disruptors, and new digital healthcare technologies have made a substantial impact on the delivery of healthcare services, highlighting the critical roles of leaders in hospitals and health systems. This study sought to understand the evolving roles of CEOs, CIOs, and other executive leaders in the postpandemic era and highlight the adaptability and strategic vision of executives in shaping the future of healthcare delivery. Between October 2022 and May 2023, 51 interviews were conducted with CEOs, CIOs, and other executives responsible for delivering technology solutions for 33 nonprofit health systems in the United States. They were asked to describe their backgrounds; how information solutions and technologies were viewed within their organizations' strategy, operations, and governance; and the key characteristics of executive leaders. The study has found that effective CEOs have an authentic belief in technology's role in achieving their organization's mission and that contemporary CIOs are strategic executive partners who align strategy with culture to improve care. This study examines how healthcare systems are creating digitally savvy executive leadership teams that operate in a new, integrated model that unites previously siloed functions. Some healthcare CIOs are unprepared for current and future business challenges, and some CEOs are unsure how to leverage digital technologies and C-suite expertise to transform their organizations. This research provides insights into how the nation's health systems are building and sustaining leadership teams capable of adapting to the healthcare environment and accelerating organizational transformation.

Unique types and innovation input of family firm CEOs: moderating role of managerial ability in Chinese listed firms

In family firms the role of CEO is highly significant with reference to devise strategic decisions and deciding if it is feasible to invest in innovation input. This study aims to investigate the behaviour analyses of the diverse types of CEOs in family firms towards innovations. This study also analyzes the moderating role of managerial ability in the nexus of CEO types and innovation input. The data are obtained from Chinese A-share listed family firms from Accounting Research and China Stock Exchange in 2012–2020 and analysed using ordinary least squares regression. Tobit and probit regressions are also employed to confirm the results. Results indicate that non-family and family CEOs (with no controlling rights) show identical behaviour concerning their lower intentions to promote innovations in R&D projects than family CEOs with actual controlling rights. In addition, family CEOs with actual controlling rights exert a positive effect on R&D, indicating that they are more willing to invest in innovative projects. Moreover, we observe the significant moderating role of managerial ability in the nexus of CEO types and innovation activities. We find that high managerial ability alters the behaviour of different CEOs. With the moderation of managerial ability, non-family and family CEOs (without actual controlling rights) also show willingness to invest in innovative projects and without managerial ability, CEOs’ willingness to make innovations decline. This study is a pioneer work that investigates the impact of diverse types of CEOs to unlock notable insights regarding the R&D investment behaviour of Chinese family firms with moderating role of managerial ability. This study is useful to all parties involved with the company, including employees, clients, suppliers and customers. The results of this study can also assist board members in selecting and recruiting non-family CEOs or keeping family CEOs (with or without actual controlling rights).

Capital Structure, Board Characteristics and Firm Performance of Listed Non-Financial Companies

This exploratory research investigates the complex dynamics among capital structure, board characteristics, and financial performance in listed non-financial companies in Nigeria. Utilizing purposive sampling, the study focuses on 67 companies, primarily non-financial, renowned for consistently providing accessible data. Annual reports from 2012 to 2022 serve as the data source, covering metrics related to capital structure (Debt to Assets Ratio and Leverage Ratio), board characteristics (CEO Duality, Board Size, and Board Gender Diversity), and financial performance (Return on Assets, Dividend per Share, and Earnings per Share). Employing panel data econometrics techniques, including fixed and random effects pooled regression models, the study analyzes these relationships. The findings reveal a statistically insignificant negative impact of capital structure on financial performance, indicated by Debt to Assets Ratio and Leverage. CEO duality shows a negative effect on Earnings per Share without statistical significance. In contrast, Board Size and Board Gender Diversity significantly positively influence Earnings per Share, underscoring their importance in enhancing firm performance. Regarding Dividend per Share, higher Debt to Assets Ratio and Leverage are associated with lower firm performance, while CEO duality’s impact lacks statistical significance. Larger board sizes and greater board gender diversity, however, positively affect Dividend per Share, emphasizing their positive contributions to financial performance. The study concludes with recommendations, including the importance of companies striving for an optimal capital structure, enhancing board diversity, evaluating CEO and Chair role separation, and carefully assessing risk factors when considering higher leverage. Nonetheless, limitations, such as the statistical insignificance of some relationships, the limited data period, and the omission of external factors, highlight avenues for future research.