CEO Information Research Articles

The green innovation effect of industrial robot applications: Evidence from Chinese manufacturing companies

Artificial intelligence has emerged to revolutionize society in China. Investigating whether industrial robot applications (IRAs) can contribute to Chinese economic prosperity has significant theoretical and practical significance. For this purpose, this study estimates the impact of IRAs on green innovation by decomposing the industry robot stock to the corporate level using global industry robot data and manufacturing data from Chinese manufacturing listed companies by constructing a Bartik instrumental variable. The results show that IRAs notably promote corporate green innovation. However, IRAs do not contribute equally to all corporations in green creation. Its effects on green innovation are mainly observed in larger corporations, technology-intensive industries, and corporations located in developed cities. Digital transformation, management efficiency, and CEO's information technology (IT) background can further strengthen the green innovation effect of IRAs. We conclude that the rational exploitation of artificial intelligence drives the economy towards green development.

Trading courtrooms for boardrooms: lawyers as CEOs

PurposePrior research suggests a chief executive officer’s (CEO) background is highly predictive of the strategic predisposition. This paper aims to focus on the need for accuracy in the categorization of CEO background and the impact that modest, nuanced changes in coding definitions yield.Design/methodology/approachThis study evaluates the use of biographic and demographic information of CEOs to provide a more nuanced and expansive approach to understanding the influence of legal education and experience on business strategy. Propositions as to more nuanced coding definitions are developed. Building upon Fligstein (1987), a proof-of-concept example is developed using CEO information available for 2010. That data is then reexamined using an altered method (Modified Fligstein) to discern changes in the number of CEOs contained within the background categories.FindingsThe two categorizations performed reveal that substantial differences in the number of CEOs coded into a category can come from relatively small changes in categorical definitions. In comparing the first categorization to the second, each of the vocational categories experienced a change, ranging from a decrease of 11.1% to an increase of 142.9%.Originality/valueThis study informs both theory and practice by increasing the efficacy of the use of biographic and demographic information to assess the strategic orientation of executives. It postulates and demonstrates that simple changes in the categorical definition produce significant changes and can skew empirical results that reduce the utility of prior studies.

Home Sweet Home: CEOs Acquiring Firms in Their Birth Countries

ABSTRACTWe find that foreign‐born CEOs are more inclined than domestic‐born ones to acquire across borders, and that this inclination is explained by their preference for targets in their birth country. This preference is motivated by foreign‐born CEOs’ information advantage in their birth country and by these CEOs’ desire to give back to the birth country. CEOs’ desire to help their birth country also influences target location, increasing the likelihood of a target in countries that colonized the CEO birth country. The motives that drive acquisitions in acquirer CEOs’ birth countries measurably affect the returns of acquirers’ shareholders, target premium, and acquisition synergy. Both acquirers’ returns and synergy but not target premium are abnormally positive when the motive for an acquisition is a CEO's information advantage in the birth country. Targets premiums but not acquirers’ returns and synergy are abnormally positive when the motive for an acquisition is the desire to give back to the CEO's birth country.

CEO educational background and acquisition targets selection

Using hand-collected CEO education data of 3574 CEOs over the period of 2000 to 2015, we document that CEOs are significantly more likely to acquire targets that are headquartered in those states where the CEOs received their undergraduate and graduate degrees. Education-state deals are larger, have higher completion rates, and exist with both public and private targets. Acquirers pay a lower target premium for education-state deals and the cumulative abnormal announcement returns are positive. The combined evidence suggests that education-state acquisitions are more likely to be driven by bidder CEO's information advantage toward firms headquartered in the education state.

Lame-Duck CEOs

We examine the relationship between protracted CEO successions and stock returns. In protracted successions, an incumbent CEO announces his or her resignation without a known successor, so the incumbent CEO becomes a “lame duck.” We find that 31% of CEO successions from 2005 to 2014 in the S&P 1500 are protracted, during which the incumbent CEO is a lame duck for an average period of about 6 months. During the reign of lame duck CEOs, firms generate an annual four-factor alpha of 11% and exhibit significant positive earnings surprises. Investors’ under-reaction to no news on new CEO information and underestimation of the positive effects of the tournament among the CEO candidates drive our results.

회원제 관광기업의 자본구조가 대리인 비용에 미치는 영향

The purpose of this study was to analyze the effect of the unique capital structure of membership tourism companies, which recruit the funds required for the construction of tourism facilities, on the subsequent agency cost. This was done in order to analyze differences in relation to the individual CEO types. Hypotheses were set based on an analysis of relevant literature and we also obtained financial information and shareholder and CEO information on membership tourism companies operating as of the end of 2015. We then constructed unbalanced panel data, and a conducted panel regression analysis and hierarchical regression analysis. As a result of this research, it was found: 1) The invested capital ratio had a negative effect on agency cost, 2) The borrowing ratio and membership-debt ratio had a positive effect on agency cost, 3) The CEO type moderately effects capital structure as it relates to the ratio of sales and administrative expenses. This study explained the relationship between capital structure and agency cost by expanding the subject of agency cost to membership tourism companies. Based on this, it provides a conceptual framework for legal and systemic rules to protect the interests of members in the future and to check their respective CEOs.

Strategic flexibility, innovative HR practices, and firm performance

PurposeThe purpose of this paper is to examine the role of innovative HR practices as an important mechanism through which strategic flexibility affects firm performance as well as the role of female leadership in this relationship.Design/methodology/approachData were gathered from a sample of 113 firms in China. The authors collected information on organizational strategy, HR practices, CEO information, corporate social responsibility and other firm characteristics in terms of firm age, location, and financial performance. Conditional procedural analysis was conducted to test the model.FindingsThe authors found strong evidence in support of the mediation relationship in which organizations with a strong focus on strategic flexibility are more likely to adopt Innovative HR Practices. Furthermore, the authors found that the extent to which firms have adopted innovative HR practices has a strong effect on employee productivity. In addition, the authors found that female leadership enhances strategic flexibility-performance relationship.Research limitations/implicationsInformation on strategic flexibility, HR practices and firm performance was collected at the same time. Future studies based on panel data would be helpful to establish the causal relationships in the model.Practical implicationsThe authors’ findings suggest that practitioners should put more emphasis on developing innovative HR practices, as they are required by strategic flexibility.Social implicationsFirms pursuing strategic flexibility should feel more confident when appointing a female CEO, because the results show that female leadership may enhance the positive impact of strategic flexibility on firm performance.Originality/valueThis research study is the first empirical examination of the mediating influence of innovative HR practices on the relationship between strategic flexibility and firm performance. The study also shows that female leadership benefits an organization in implementing strategic flexibility. The results are of value to researchers, human resource management managers, employees, and executives who are seeking to develop practices that are flexible and innovative in order to stay competitive in dynamic environments.

Allocation of Decision-making Authority

This paper addresses the question of what determines where in a firm's hierarchy invest- ment decisions are made. We present a simple model of a CEO and a division manager to analyze when the CEO will choose to allocate decision-making authority over an investment decision to a division manager. Both the CEO and the division manager have private information regarding the profit maximizing investment level. Because the division manager is assumed to have a preference for empire, neither manager will communicate her information fully to the other. We show that the probability of delegation increases with the importance of the division manager's information and decreases with the importance of the CEO's information. A somewhat counterintuitive result is that, in some circumstances, increases in agency problems result in increased willingness of the CEO to delegate the decision. We also characterize situations in which the CEO prefers to commit to an allocation of authority ex ante, instead of deciding based on her private information. Finally, even though the division manager is biased toward larger investments, we show that under certain conditions, the average investment will be smaller when the decision is delegated. These results help explain some findings in the empirical literature. A number of other empirical implications are developed.