Managerial Incentives Research Articles

Pengaruh Kompetensi, Beban Kerja dan Motivasi terhadap Kinerja Pegawai melalui Insentif sebagai Variabel Intervening pada Pengelola Keuangan di Sekolah Dasar Negeri Tanjung Pinang

This research aims to determine the influence of competency, workload and motivation variables on employee performance through incentives for financial managers at SDN Tanjung Pinang. Data analysis using SEM-PLS (structural Equation Modeling-Partial Least Square). The results of this study found that competence has a positive but not significant effect on employee performance, workload has a negative and significant effect on employee performance, motivation has a positive and significant effect on employee performance, competence has a positive but not significant effect on wages, workload has a positive and significant effect on incentives, motivation has a positive and significant effect on incentives, incentives have a positive and significant effect on performance, competence has a positive and significant effect on performance with incentives as an intervening variable, workload has a positive and significant effect on performance with incentives as an intervening variable, motivation has a positive and significant effect on performance with incentives as an intervening variable.

Effect of Corporate Governance on Financial Performance in China

Purpose: The aim of the study was to assess the effect of corporate governance on financial performance in China. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study indicated a positive correlation between strong corporate governance practices and improved financial outcomes for companies. These practices typically include transparent decision-making processes, effective board oversight, and alignment of management incentives with long-term shareholder value. Study suggests that companies with robust corporate governance structures tend to experience higher profitability, better risk management, increased investor confidence, and enhanced access to capital. Additionally, strong corporate governance is associated with lower instances of financial misconduct and improved overall corporate reputation, which can further contribute to sustainable financial performance over time. Implications to Theory, Practice and Policy: Agency theory, stewardship theory and resource dependency theory may be used to anchor future studies on assessing the effect of corporate governance on financial performance in China. Implement best practices in corporate governance that align with empirical findings and theoretical insights to optimize financial performance. Advocate for regulatory frameworks and policies that incentivize effective corporate governance practices and align them with desired financial performance outcomes.

Compensation incentive, misappropriation risk, and startup innovation: the role of corporate venture capital manager in resource transfer

ABSTRACT Existing studies on the impact of corporate venture capital (CVC) on startup innovation primarily focus on the capability of CVC parent to provide resources for startups. This study examines the role of CVC managers’ motivation in facilitating resource transfer to startups. Utilizing a unique disclosure requirement for investments by Chinese public firms in venture capital (VC) funds, and a hand-collected database on CVC managers’ compensation, our study explores the impact of compensation incentives on CVC managers with respect to startup innovation and the moderating effect of misappropriation risk by the CVC parent. Our two-stage regression model reveals that stronger compensation incentives positively impact startup innovation. Moreover, the effects diminish if the misappropriation risk by the CVC parent increases. These findings underscore that while strong compensation incentives for CVC managers enhance their motivation to facilitate resource transfer from the CVC parent to startups, this is mitigated in contexts with a heightened misappropriation risk.

The bright side of common ownership: Evidence from bank transparency

Over 74% of US banks share common ownership with other banks. Our analysis of a large sample of US banks reveals that those with greater common ownership demonstrate heightened transparency. This manifests as reduced discretion in loan loss provisions, improved financial statement readability, and enhanced comparability. We pinpoint three underlying mechanisms: decreased private information gathering, increased stock liquidity, and diminished managerial incentives for opacity. Furthermore, these commonly owned banks exhibit lower crash risk due to their improved transparency. Our findings hold after using various proxies and two endogeneity-reduction methods: a difference-in-differences analysis based on the 2009 Blackrock–Barclays Global Investors merger and an instrumental variable approach using Russell 2000 index inclusions. Overall, our study underscores the positive impact of common ownership in the banking sector.

The motivation plan, a contemporary solution for increasing the effectiveness of motivation

Motivation employees is a challenge to reach employee satisfaction at the workplace. Many existing studies have investigated the role of motivation and have evidenced the fact that motivation is a precursor to individual and organizational performance. This paper considers some of the motivation issues with a focus on the necessity of drawing up the motivation plan as a very important managerial document. This study has included 55 business managers. Terrain data were analyzed using SPSS. The findings provide important information for the theory of motivation and their application in practice. This study will serve as an incentive for managers with their approach to the motivation plan. The paper also proves the necessity of the commitment of relevant institutions for the support they should give to managers in this direction through training sessions. This paper aims to argue the importance of motivation plan as a necessity to support manager to achieve the organizational objectives and one more warranty for individual and organizational performance.

Shareholder value orientation, corporate cash piles, and the myth of financial accumulation

Financialization scholars argue that the growing financial balance sheets of non-financial corporations indicate a “financial turn in accumulation” driven by the rise of shareholder value orientation (SVO). In this paper, I test whether greater shareholder influence or shareholder-aligning managerial incentives can explain the more rapid accumulation of financial assets among US NFCs. I find that shareholder power is associated with some increase in short-term financial assets but only in the case of certain shareholder types, in particular high turnover institutional investors. The magnitudes of the effect are small however, and only pertain to smaller firms. Moreover, ownership concentration by these impatient investor types is declining. The results suggest that changing corporate governance patterns have little capacity to explain balance sheet financialization. I argue that mainstream accounts focused on the precautionary savings of new, research-intensive firms and tax arbitrage amongst multinationals offer a better explanation for growing financial balances than the financial accumulation hypothesis. Neither of these imply a substitution of financial for real investment, which calls into question an important mechanism thought to connect financialization to secular stagnation and rising inequality.

Lack of professionalism and employee turnover intention: An empirical study among managers

This empirical, quantitative, and survey-based descriptive research undertaken in Tirunelveli city of Tamil Nadu, India has the objective of identifying how lack of professionalism is associated with employee turnover intention of managers working at multi-speciality hospitals in Tirunelveli city. To achieve this objective, the study sampled 50 managers belonging to para-medical departments from leading private multi-speciality hospitals using both convenience and judgement sampling techniques. The primary data were collected using a structured self-made questionnaire along with personal interviews and observation. The secondary data were collected from books, journals, dissertations and conference proceedings to add appropriate significance to the study. Percentage, Mean, and Standard Deviation were used to analyze the data, and the result of the analysis revealed that lack of professionalism-related factors: lack of respect, domination of the medical personnel, involvement of non-paramedical professionals to control para-medical managers, underemployment, performing non-managerial activities, politics among staffs, and under-estimation and inferior opinion about managers have been strongly agreed by the majority of the respondents in the study area that they are associated with their employee turnover intention. The study has offered suitable suggestions to strengthen professionalism-related factors at private hospitals and thereby prevent employee turnover intention among para-medical managers.

Innovation Strategy After IPO: How AI Analytics Spurs Innovation After IPO

We examine the role of AI analytics in facilitating innovation in firms that have gone through IPO. Using patent data on over 1,000 publicly traded firms, we find that firms acquiring AI analytics capability post-IPO experience less of a decline in innovation quality compared with similar firms that have not acquired that capability. This effect is greater when only machine learning capabilities are considered. Moreover, we find this sustained rate of innovation is driven principally by the continued development of innovations that combine existing technologies into new ones—a form of innovation that is especially well supported by analytics. By examining three main mechanisms that hampered post-IPO innovation, we find that AI analytics can ameliorate the pressure to meet short-term financial goals and disclosure requirements. However, it has limited effect in addressing managerial incentives. For firms with long product cycles, the disclosure effect is reduced to a greater extent than it is for those with short cycles. Overall, our results show the importance of examining technology as a critical input factor in innovation. We show that the increased deployment of AI analytics may reduce some of the innovative penalties suffered by IPOs and that investors and managers can potentially mitigate post-IPO reductions in innovative output by directing capital acquired in the IPO process to the acquisition of AI analytics capabilities. This paper was accepted by D. J. Wu, information systems. Funding: The authors appreciate the generous financial support from Wharton Dean’s Research Fund and Mack Institute for Innovation Management. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2022.01559 .

The Hidden Treasures of the Forest: Promoting Forest Conservation through Non-Timber Forest Products in the Eastern Himalayan Region

The study examined the impact of Non-Timber Forest Products (NTFPs) on forest conservation by local communities in the study areas. Surveying 250 respondents from 20 villages, a good number of plant and animal-based NTFPs were identified in the states of Meghalaya and Nagaland. The Binary Logistic Regression Model confirmed that income from NTFPs had a positive and significant influence on four forest conservation models in Meghalaya and three forest conservation models in Nagaland. It implied that the extraction of NTFPs can serve as a vital incentive for sustainable forest management. The policy recommendations include supporting NTFP-based livelihoods to enhance community engagement in conservation efforts through local conservation bodies and traditional institutions, including the state forest department.

Managers' career preferences and corporate culture

AbstractBuilding effective corporate culture is challenging as it requires senior managers to embed shared values within the firm. Yet some firms can do so, and some cannot. This study examines whether managers' career preferences influence manager‐employee value misalignment and weaken corporate culture. Career preferences for job‐hopping provide incentives for managers to signal their leadership quality in the labor market. We capture managers' and employees' attention allocation across different cultural values using data from conference calls and Glassdoor. We predict and find that job‐hopping managers direct their attention away from soft cultural values (e.g., respect and integrity) that are less observable by the external labor market. Furthermore, job‐hopping managers who pay insufficient attention to soft cultural values fail to address the concerns that employees have in their everyday work, resulting in lower overall employee culture ratings. Our study highlights the significance of managers' career preferences in shaping different cultural values and offers implications for firms selecting senior managers.

Corporate digital transformation and tax avoidance: evidence from China

Digital transformation gives new impetus to corporate growth and influences corporate behavior. This study uses hand-collected digital transformation data on A-share listed non-financial enterprises in China from 2008 to 2019 to examine the relationship between corporate digital transformation and tax avoidance. Our findings suggest that the higher the corporate digital transformation, the lower the level of tax avoidance. This impact is more pronounced in firms with high equity incentives for management, a management team with a strong political background, and in firms located in provinces with a high willingness for government intervention and financial pressure from the government. The mechanism test shows that corporate digital transformation mainly decreases tax avoidance by reducing the agency costs of management and increasing media and analysts' attention to the firm. Thus, actively promoting digital transformation is one of the most important paths for guaranteeing a real and stable source of national tax revenue.

The relationship between sustainable HRM practices and employees’ attraction: the influence of SME managers’ values and intentions

PurposeIn many parts of the world, labor shortages are likely to affect the activities of SMEs. Consequently, SMEs needs to adopt attractive HRM practices. This study analyzes the impact of one type of sustainable HRM (SD-HRM) on employees’ attraction and retention factors such as employees’ motivation, the quality of image and customer satisfaction in SMEs context. It also looks at the impact of SME managers’ value-intentions, calculative (egoist-strategic) and non-calculative (altruist-institutional) on this relationship.Design/methodology/approachDrawing on part of a survey of 409 Quebec SME managers’ commitment to sustainability, a mediation model is used to consider the impact of the manager’s values-intentions on potential workforce attraction and retention factors.FindingsThe results show that the implementation of SD-HRM practices has a positive impact on the outcomes considered, as it was expected, but show the counterintuitive results that it is altruistic values (non-calculative), rather than egoistic values, that helps to maximize the desired effects.Practical implicationsSME managers could adopt SRHRM practices to attract and retain employees. To maximize positive impacts, they might strategically integrate this approach while remaining authentic to their altruistic values. Purely institutional intentions are insufficient. By being both personally committed and strategic, managers can improve both employee well-being and organizational performance.Originality/valueThe original aspect of this research is the integration of expectations of spin-offs (positive or neutral) in relation to SD-HRM, based on the values and intentions of SME managers. This allows to recognize the multiple profiles, justifications and objectives of SMEs, which do not form a monolithic whole and need to be understood and supported by considering their differences.

Lead independent director reputation incentives and audit fees

AbstractAlthough prior research has recently begun to examine the effects of independent director reputation incentives and the benefits of having a lead independent director, no study has considered the combined impact: the reputation incentives of lead independent directors. This study integrates these emerging streams of research to investigate whether the reputation incentives of lead independent directors affect audit fees. We find that firms with a lead independent director who has relatively low reputation incentives are associated with audit fees that are 4.39% higher than firms with a lead independent director who has neutral reputation incentives, consistent with auditors viewing these firms as riskier. We also find that this association is driven by auditors who are not industry specialists. Our results continue to hold when using an entropy balancing approach and when conducting other robustness tests.

Corporate governance for sustainable development: A study on mechanism configuration

There is a dearth of configuration analysis on the factors that constitute corporate governance mechanisms within the framework of corporate sustainable goals in existing literature. Specifically, the impact mechanisms related to various combined mechanisms have not been comprehensively defined. This study employs Qualitative Comparative Analysis (QCA) approach to explore the effects of various configurations of corporate governance mechanisms on sustainable development, based on a sample of 2959 Chinese listed companies. Our analysis identifies four distinct pathways that facilitate the achievement of sustainable development goals: 1) enlarging board size, providing managerial incentives, establishing sustainability committees, and enhancing corporate transparency; 2) promoting board diversity, providing managerial incentives, establishing sustainability committees, and enhancing corporate transparency; 3) reducing ownership concentration, providing managerial incentives, establishing sustainability committees, and enhancing corporate transparency; 4) encouraging individual investment, providing managerial incentives, establishing sustainability committees, and enhancing corporate transparency. Additionally, a comparative analysis of different pathways has revealed substitutional relationships between board size and diversity, ownership concentration and investor structure, while highlighting the complementary relationship of managerial incentives, sustainability committees, and corporate transparency. Challenging the erstwhile linear research paradigm, this study contributes to understanding the pathways for achieving sustainable development goals from a configurational perspective and elucidates the relationships between corporate governance mechanisms. It offers novel and comprehensive evidence for examining the intricate nexus between corporate governance mechanisms and sustainable development. Keywords: Stakeholder theory; Sustainable development; Corporate governance mechanisms; Mechanism configurations; fuzzy-set Qualitative Comparative Analysis (fsQCA).

Gaslighting Exposure During Emerging Adulthood: Personality Traits and Vulnerability Paths.

Among the many forms of psychological violence, gaslighting is a particularly insidious manipulative behaviour that includes acts aimed at controlling and altering one's own partner's sensations, thoughts, actions, affective state, self-perception, and reality-testing. The purpose of this study was to evaluate the association between the experience of gaslighting and dysfunctional aspects of the partner's personality. Gaslighter personality facets were assessed using the Personality Inventory for DSM-5-Informant Form-Adult (PID-5-IRF), while gaslighting behaviours were assessed using a 25-item questionnaire, based on the three categories of glamour, good-guy, and intimidator (Stern, 2007). The sample was made up of a group of 177 Italian emerging adults aged between 19 and 26 (49.2% male, 50.8% female; M = 21.88, SD = 1.75), enrolled at University, who participated voluntarily in the research. In fact, none of them received any form of direct or indirect incentive. In our study, we applied a beta regression model mapping the Likert scale into the open interval (0,1). The main results show (a) good-guy gaslighting is positively associated with manipulativeness and negatively associated with deceitfulness; (b) glamour gaslighting has a negative association with separation insecurity and manipulativeness, but it is positively associated with irresponsibility; (c) intimidator gaslighting has a positive association with separation insecurity and distractibility and a negative association with eccentricity and perceptual dysregulation; (d) all three gaslighting categories are negatively associated with anhedonia and impulsivity. Based on what emerged from the data, aspects such as separation insecurity, irresponsibility, and distractibility can be seen as serious risk factors for gaslighting. For this reason, with regard to clinical implications, an early recognition of dysfunctional traits in potential abusers should be fostered in order to protect both potential abusers and their partner from aggressive conduct within an intimate relationship.

Перешкоди впровадженню теплових насосів у централізованому теплопостачанні

Today, heat pumps are recognized as one of the technologies that most contribute to the decarbonization of almost all spheres of modern society life, especially industry and energy. The integration of heat pumps into district heating is considered as an implementation of renewable energy technology that will enable the European Union (EU) to achieve its ambitious energy and climate policy goals for developing sustainable society. The purpose of this article is to analyze and systematize the EU experience in overcoming obstacles to the introduction of heat pump technologies in district heating and to determine the possibilities of its application in Ukraine. It was found that it is impossible to ensure the universal integration of heat pumps into district heating for all EU members, and an individual analysis is required for each EU country, taking all technical and environmental aspects into account. Obstacles to the large-scale implementation of heat pump technologies into district heating are of a complex nature. Complex obstacles require an integrated approach that simultaneously removes these obstacles and includes direct incentives, indirect taxes, technical standards, building codes, education, etc. An analysis of the experience of the EU countries (financial support, education and training, preferential tariffs for electricity for heat pump operation, EU regulations on energy efficiency of buildings, the EU directive on renewable energy sources, etc.) made it possible to identify obstacles to the widespread implementation of heat pumps in district heating. The main such obstacles are the high initial cost of heat pump equipment, the high cost of electricity, the high cost of connecting to electricity and heat networks, insufficient government incentives, the lack of domestic production of heat pumps and highly qualified personnel for their implementation. The proposed main preventive measures to overcome these obstacles are the creation of a State Program to stimulate the introduction of heat pumps; legislative support aimed at accelerating the introduction of heat pumps; creation of financial incentives for their implementation; state stimulation of production of heat pump equipment and professional training of operating personnel. This article is aimed at discussing directions for the formation of effective legislative and regulatory measures for comprehensive stimulation of the large-scale introduction of heat pumps in the district heating in Ukraine. Keywords: heat pumps, renewable energy sources, district heating, implementation, obstacles, overcoming.

Utilisation of the health belief model to study the behavioural intentions relating to obesity management among university students: a cross-sectional study

BackgroundOverweight and obesity are excessive fat accumulations linked with many health problems, including heart diseases, type 2 diabetes and cancer. Multiple studies have demonstrated that beliefs about overweight, obesity and...

Employee Stock Ownership Plans and Stock‐price Informativeness

AbstractThis study examines the impact of employee stock ownership plans (ESOPs) on stock‐price informativeness in Chinese stock markets. Its findings indicate that firms implementing ESOPs experienced an average 11.89 percent increase in stock‐price informativeness. The plans improved stock‐price informativeness through increased external attention and supervision. An event study shows that ESOPs gave rise to an announcement effect, driven by anticipated performance improvements and the novelty associated with ESOPs. A mechanism analysis demonstrates that the implementation of ESOPs attracted market attention, and the increased market supervision resulting from this mitigated the moral hazards of management associated with ESOPs. Plans with more positive signals exerted a greater influence. Notably, ESOPs that prioritized management incentives gained more recognition in the market. As the incentive effects of ESOPs were weaker than those of equity incentive plans and the ESOPs lost novelty over time, the annual announcement effect diminished gradually. These findings underscore the necessity of strengthening ESOP incentives for continued optimization of price efficiency.

Ownership Structure and Financial Sustainability of Saudi Listed Firms

This research assesses the impact of ownership structure on financial sustainability. Panel data from 102 Saudi non-financial listed firms covering 2013 to 2022 were analysed using OLS and fixed effects methods. Further, the GMM was employed to check for robustness. The research outcomes reveal the strong and positive effects of institutional ownership and family shareholding on financial sustainability. This positive impact implies that robust and stringent monitoring of family shareholding and institutional investors may neutralise managerial entrenchment, reduce agency costs and pave the way for financial sustainability. However, government ownership appears insignificant, while managerial ownership exerts a strong negative influence on financial sustainability. The negative effect suggests that managerial shareholding may be counterproductive to organisational efficiency. Importantly, the outcomes look consistent using several econometric models. Therefore, the research findings may further shape policymakers’ understanding of how the diverse monitoring strategies of ownership structure influence financial sustainability. Also, the results may serve as an incentive for managers and standard setters to support firms in embracing institutional and family shareholding. The presence of these shareholders may minimise agency conflicts and maximise firm value for sustainable profitability.

Cross-ownership and green managerial delegation contracts in a mixed oligopoly

This study examines strategic interactions between cross-ownership and managerial delegation contracts with environmental corporate social responsibility (ECSR) incentives in a mixed oligopoly. We find that private firms always utilize ECSR incentives in competing prices under cross-ownership, whereas public managers do so only when there is severe environmental damage. We also demonstrate that the ECSR incentives for welfare-weighted public managers are always lower than for their profit-weighted counterparts when they employ ECSR incentives, which leads to lower environmental damage and greater social welfare. Finally, we show that welfare-weighted public delegation increases the private firm's ECSR compared to no public delegation, which is reversed in the profit-weighted variant. Our findings suggest that the government should design an environmental incentive scheme to their public managers that can also induce private managers to behave more aggressively in abatement activities as the degree of cross-ownership increases.