Role Of Chief Executive Officer Research Articles

Antecedents of effectuation and causation in SMEs from emerging markets: the role of CEO temporal focus

Purpose Previous studies considered effectuation and causation as alternative decision-making strategies used by entrepreneurs to navigate uncertainty, having various individual- and firm-level antecedents. This study aims to broaden our understanding of individual-level antecedents by examining the role of Chief Executive Officer (CEO) temporal focus in decision-making processes in small and medium-sized enterprises (SMEs). Design/methodology/approach Based on a multiple case study research design, the authors empirically analyse 16 Russian SMEs to uncover how the CEO temporal focus relates to the choice of effectuation/causation strategies under uncertainty. Findings CEOs with past orientation tend to adopt causation, future-oriented CEOs adhere to effectuation, while present-focused CEOs rely on both decision-making strategies (i.e. ambidexterity). Prior crisis-related experience is the underlying mechanism behind the relationship between CEO temporal orientation and effectuation/causation strategies. The authors formulate several propositions that may be tested in future studies in the field. Originality/value The contribution of this study consists in uncovering a new individual-level antecedent of effectuation/causation under uncertainty (i.e. CEO temporal focus) and suggesting that prior crisis experience acts as a mechanism underlying this relationship. The authors advance the strategic leadership theory by underscoring the CEO’s role in decision-making processes in SMEs.

Examining the Influential Role of Family CEO and Investment on Tunneling: A BoundTest Approach

Tunneling is one of the ferocious corporate frauds mostly practiced in concentrated firms. This creates principal-principal agency conflict which influences the entire company operation and discourages investors. This study examined whether growth opportunities and family chief executive officer (CEO) smooth the way for tunneling practices in concentrated firms. The study analyzed panel quantitative data through a fixed effect model and autoregressive distributed lagged (ARDL) to forecast the short and long-run nexus. The finding shows that an increase in investment for expansion purposes creates a way for outward tunneling, which means that controlling shareholders secure their private benefits while availing growth opportunities. In addition, the study forecasts that these positive nexuses will be sustained significantly in the short and long run. Further, the current study also found that family CEOs tackle and minimize expropriation due to sustaining business, getting growth, and having a good reputation in the market. The study helped the regulatory body design policy, providing thorough information to investors strengthening governance mechanisms, and protecting shareholder's rights. The findings contribute to understanding governance dynamics in concentrated firms and highlight the need for regulatory measures to curb tunneling.

Making digital technology innovation happen: The role of the CEO's information technology backgrounds

Chief executive officers (CEOs) are the leaders of corporate innovation, but little is known about which types of CEOs are more conducive to digital technology innovation. Based on Chinese listed manufacturing companies from 2013 to 2020, we examine the effect of the information technology (IT) background of CEOs on digital technological innovation. The results show that CEOs' IT backgrounds significantly promote digital technology innovation. Curbing managerial myopia is the mechanism involved while strengthening digital sensemaking does not exist. Heterogeneity analysis reveals that the facilitating role of CEOs' IT background is more pronounced when their power is more extensive, the company is nonstate-owned, mature, and large, and the region is highly marketized. Our findings contribute to the literature on the impact of executive characteristics on innovation and provide a reference for companies to promote digital technology innovation through the employment of specific CEOs.

The Impact of CEO Retention on Post-Merger Integration: Insights from Chegg in the Ed-Tech Industry

This study examines the crucial role of chief executive officers (CEOs) in post-acquisition integration, focusing on Chegg, a prominent ed-tech company in a rapidly evolving industry. Analyzing CEO actions post-acquisition through interviews and metrics, we find that a three-year CEO retention period significantly contributes to successful integration at Chegg. This research emphasizes the importance of understanding ideal CEO retention and their strategic actions, offering insights for more successful post-acquisition integration and long-term economic benefits.

Green learning orientation and corporate environmental performance: the mediation role of green knowledge acquisition-management and the moderating role of CEO-gender

PurposeThe study aims to examine the role of green learning orientation, green knowledge acquisition and green knowledge management in fostering corporate environmental performance of small and medium-sized enterprises (SMEs) in China. In addition, this research assesses the moderating role of chief executive officer (CEO) gender between green knowledge management and corporate environmental performance. Finally, this study examines the sequential mediating role of green knowledge acquisition and green knowledge management.Design/methodology/approachThe study collected the data of 300 SMEs’ CEOs taken from five different provinces in China. The study used a partial least squares regression-based structural equation modelling technique.FindingsThe findings revealed that green learning orientation plays an important role in increasing SMEs’ corporate environmental performance. The results showed that green knowledge acquisition and green knowledge management serially and completely mediate the relationship between green learning orientation and corporate environmental performance.Originality/valueTo the best of the authors’ knowledge, this is the first study addressing the sequence of knowledge orientation, acquisition, management and results in terms of corporate environmental performance. Meanwhile, this study is the first to examine the indirect role of CEO gender on the relationship between green knowledge management and corporate environmental performance. As decisions are taken by the top management and CEO, especially in the case of SMEs, the role of top management and how well top management uses the knowledge acquired by the organization matters significantly.

Effects of female CEO and female CFO on internationalization and firm performance

PurposeThe study aims to examine the influence of female chief executive officer (CEO) and female chief financial officer (CFO) on the linkage between internationalization and firm performance.Design/methodology/approachThis study used 2926 firm-year observations of nonfinancial firms listed on the Pakistan Stock Exchange over the period 2012–2021. This study used ordinary least squares regression method to test the hypotheses, and additionally, generalized method of moments estimation and fixed effect analysis were used to check for the robustness of the results.FindingsUsing the framework of upper echelons theory and resource dependence theory, this study reports that internationalization has a positive impact on firm performance. Moreover, the results show that the presence of female CEO and female CFO strengthens the positive relationship between internationalization and firm performance. The results add to the gender diversity literature by highlighting the positive role of female CEOs and female CFOs on the internationalization and performance of firms in a male-dominated society.Originality/valueThis study adds to the limited literature on the internationalization of businesses in an emerging market and provides empirical support to upper echelons theory and resource dependence theory by highlighting the benefits brought to the firm through female CEOs and female CFOs.

Corporate Social Responsibilities and Financial Performance: The Role of Chief Executive Officer’S Power

Corporate Social Responsibilities and Financial Performance: The Role of Chief Executive Officer’S Power

Generalist CEOs and stock price crash risk

AbstractWe investigate whether generalist chief executive officers (CEOs), that is, CEOs who gain transferable skills across firms and industries, have less incentive to hoard bad news. To address endogeneity concerns stemming from firm–CEO matching, we deploy a difference‐in‐differences method utilizing exogenous CEO turnovers, propensity score matching and entropy balancing matching methods, and Oster's coefficient stability test. Supporting our conjecture, we find a negative relation between CEOs’ general ability index (GAI) and future stock price crash risk. The effect of CEOs’ GAI on crash risk is stronger when labor demand is stronger and when firms have more agency conflicts. Our analysis further suggests that generalist CEOs attenuate crash risk by increasing conditional accounting conservatism and reducing real earnings management. Taken together, our findings highlight the role of CEOs’ general human capital in increasing their tolerance for failure and mitigating the agency problem.

Examination of Operational Strategy of International Tourist Hotels

To gain a competitive edge in the dynamic landscape of the global tourist hotel industry, strategic development is important. Thus, we scrutinized the strategic management plans to diversify hotel business models, focusing on the role of Chief Executive Officers (CEOs). We conducted qualitative research with a snowball sampling method and interviewed ten experienced CEOs who were engaged in the industry. All interviewees possessed a minimum of 14 years of expertise and experienced a minimum of two types of business models. They experienced the industry as entry-level employees and various tasks such as room or food and beverage (F&B) management. Four used to work for six hotels and four for globally franchised hotels. The research result revealed that CEOs must have self-learning and a proclivity to undertake challenges in diverse regions and distinct systems. Moreover, CEOs need to align their operational strategies with the eight indices specified by the Tourism Bureau. The business model of the global hotel franchise is attributed to its cost-effectiveness, profitability, and autonomous decision-making capabilities. The management team with industry expertise is advantageous for the hotel. Eight operational strategies were proposed to mitigate potential damages arising from external factors. Franchise hotels exhibited commendable accommodation rates and profitability compared to their independent counterparts. To alleviate interdepartmental conflicts, well-organized supporting systems must be implemented.

Strategic turnaround: unraveling the impact of CEO power on firm performance during retrenchment

Purpose This paper aims to investigate the impact of retrenchment strategy on firm performance in the context of Pakistani firms while considering the moderating role of chief executive officer (CEO) power. By examining the influence of CEO duality and CEO share ownership on the relationship, this study contributes to strategic management and corporate governance knowledge within the Pakistani business environment. Design/methodology/approach A quantitative approach was used to analyze the relationship using data from annual financial statements. The sample consisted of 76 companies from the KSE-100 index from the year 2015 to 2020. Random effects regression models were used, along with hierarchical regression to explore the moderating effect of CEO power. Findings The findings demonstrate that the implementation of a retrenchment strategy positively impacts firm performance in Pakistani firms. The study also reveals that CEO power plays a crucial role in strengthening the relationship between retrenchment strategy and firm performance. Moreover, the study highlights the importance of considering the temporal sequence, size and age of firms when examining the impact of CEO power and retrenchment strategy on firm performance. Research limitations/implications The study enhances the understanding of the contingent nature of retrenchment strategies and the influence of CEO power in the Pakistani business context. Practically, the research contributes to strategic management and corporate governance dynamics, facilitating the development of strategies that enhance firm performance and sustainability in Pakistan. Originality/value This research provides original insights by specifically focusing on the Pakistani context and analyzing the interplay between retrenchment strategy, CEO power and firm performance. The study adds to the limited literature on the relationship between retrenchment and performance in the Pakistani business environment. Additionally, it highlights the significance of CEO power as a critical factor in determining the success of retrenchment.

CSR fit with CEO image: Unpacking its influence on stakeholder engagement and authenticity perception

ABSTRACT This study explores the significant role of Chief Executive Officers (CEOs) in communicating a corporation’s commitment to Social Responsibility (CSR) and their influence on consumer engagement in CSR initiatives. This study introduces a conceptual model that integrates the sense-making approach and social exchange theory within the CSR domain. The model posits a positive correlation between a CEO’s ethical leadership, their personal image congruence with CSR initiatives, and consumer engagement in CSR. Central to this study is the empirical testing of the model, which revealed that CSR authenticity and Consumer-Company Identification (CCI) significantly mediate the relationship between CEO attributes and consumer engagement. Data collected from an online survey with 988 respondents supported that CEOs who are perceived as ethically sound and whose personal image aligns with CSR initiatives tend to foster higher levels of consumer engagement through enhanced perceptions of CSR authenticity and strengthened CCI. These findings offer new insights into the dynamics of CEO influence on CSR communication and consumer engagement.

Patterns of Resource Allocation and Divisional Budgets: The CEO's Strategic Lens Across Various Industries

This paper explores how Chief Executive Officers (CEOs) across various industries adapt their resource allocation and divisional budgeting strategies in response to contemporary business challenges. It aims to shed light on the evolving role of CEOs in steering organizational success through strategic initiatives, highlighting the shift from traditional, efficiency-focused models to flexible, value-driven approaches. By conducting a qualitative analysis of recent literature, the study examines patterns in strategic decision-making, focusing on the balance between operational needs and strategic goals amidst changing market conditions. The research emphasizes the impact of industry-specific factors, such as market volatility and organizational size, on these strategic adaptations. Findings reveal a significant trend towards more adaptable and strategic resource management practices among CEOs, moving beyond short-term operational efficiency to support long-term goals. This shift is evident across different sectors, including healthcare, manufacturing, and e-commerce, though the extent and nature of its implementation vary according to each industry's unique challenges and opportunities. The study underscores the importance of strategic adaptability for organizational resilience and success in a rapidly evolving business landscape.

Navigating uncharted skies: The role of pilot CEO in FinTech adoption

Employing the pilot credentials of chief executive officers (CEOs) as a proxy of the proclivity for venturing into uncharted territories and pursuing novel experiences, this study finds that pilot CEOs are associated with higher intensity of FinTech adoption. This positive association is more pronounced in firms with a powerful CEO and less significant in financially constrained firms, suggesting that the impact of pilot CEOs on FinTech adoption is affected by the CEO's power and the firm's access to external financial resources. Overall, our evidence advances the understanding of the role of CEO characteristics in driving FinTech adoption.

Corporate social responsibility and green supply chain efficiency: conditioning effects based on CEO narcissism

Accelerating the construction of the green supply chain system and improving the efficiency of the green supply chain is the key to promoting the high-quality development of enterprises. In view of this, based on stakeholder theory, higher order theory and expectancy theory, this study focuses on the impact of corporate social responsibility (CSR) on corporate green supply chain efficiency (GSCE) and the moderating role of chief executive officer (CEO) narcissism. A regression analysis of the observed sample reveals that CSR significantly enhances GSCE. Further decomposing CSR into internal CSR and external CSR to reveal the impact of different types of CSR on GSCE, we find that internal CSR fulfillment has a significant positive impact on GSCE, and this relationship is strengthened when CEOs are narcissistic. Furthermore, external CSR has a significant negative impact on GSCE, and this relationship is also strengthened by CEO narcissism. The main contribution of this paper is to study the relationship between CSR and green supply chain efficiency, decompose CSR into internal and external CSR, enrich the research on the intrinsic mechanism of value creation of CSR. It also enriches the research in the context of CSR from the perspective of CEO personality traits, providing new ideas and suggestions for manager selection and corporate greening governance in practice.

The impact of chief executive officer’s compensation on agency costs: The role of good corporate governance

Exploring the interplay between managerial compensation, agency costs, and corporate governance, this study investigates how chief executive officer (CEO) duality (combined CEO and chairman roles) moderates the relationship. Using data from Vietnamese listed industrial firms (2013–2022), the research reveals that under weak governance (CEO duality), compensation has no significant impact on agency costs. However, with strong governance (separate CEO and chairman roles), compensation’s influence on agency costs weakens. Building on this analysis, the study proposes recommendations for enhancing corporate governance practices and mitigating the influence of remuneration on agency problems.

CEO social capital, business environment, and the level of corporate risk‐taking in China

AbstractWe find a significant positive role of chief executive officer (CEO) social capital on the level of corporate risk‐taking for Chinese listed firms from 2008 to 2019. We reveal that a better business environment tends to reduce this positive relationship. In addition, we also find that corporate innovations provide moderation effects on the relationship. Further analysis of heterogeneity tests on firm characteristics suggests that CEO social capital's effect on corporate risk‐taking is significant and stronger for non‐state‐owned enterprises, firms with fewer female directors on their board, and firms with more cash holdings.

CEO wealth and cross-border acquisitions by SMEs

This study examines the role of chief executive officers’ (CEOs) wealth in explaining the cross-border acquisition (CBA) activity of small and medium-sized enterprises (SMEs). CBAs require substantial financial resources and expose the firm to additional risks. Within a micro-foundations framework, we integrate insights from the resource-based view and the upper echelons theory and argue that CEO wealth plays a dual role in the CBA activity of SMEs by alleviating financial constraints and increasing willingness to take risks. Using Norwegian census data for the period 2000–2013, we find consistent evidence that CEO wealth has a positive effect on the number, the geographic scope, and the likelihood of engaging in CBAs in high political risk countries.

Corporate Attributes as Correlates of Social Accounting Reporting: The Mediating Role of CEO Education

This study determined the moderating effect of corporate attributes and social accounting reporting: the moderating role of chief executive officers’ educational qualification in Nigeria. This study adopted ex-post facto research design. Simple random sampling technique to sample listed consumer and health companies. Secondary data derived from the financial statements of listed healthcare and consumer’s firms were reviewed for the study for the period 2017-2021. The data set was first subjected to pre-regression analyses which include descriptive statistics analyses, correlation analyses and the test for normality of residua. Logistic regression was used for the data analysis. Findings of the study revealed there is a significant moderating effect of CEO educational qualification on the influence of firm size, leverage and board size on financial, social reporting disclosures of listed Nigerian companies. It was recommended that company boards should factor in CEO educational qualifications when choosing a chief executive for the company. Also, Organizations must set up market measures and parameters that will empower them to be educated about being socially and environmentally responsible to make corporate social responsibility fruitful and to make industrial products meet anticipated economic, social and environmental needs.

Can CEO environmental awareness promote new product development performance? Empirical research on Chinese manufacturing firms

AbstractDespite the growing interest in the role of chief executive officers' (CEOs') environmental awareness in enhancing performance, its impact on new product development (NPD) performance, as well as the underlying mechanisms and contextual bounds of the impact, remains unexplored. Based on upper echelons theory, we suggest that CEO environmental awareness promotes NPD performance through corporate environmental practice. We further theorize that the role of CEO environmental awareness is contingent on environmental institutional pressure. To validate the model, we collected survey data from 534 senior executives of 178 manufacturing firms in China. The main results show that corporate environmental practice completely mediates the relationship between CEO environmental awareness and NPD performance. The relationship is positively moderated by environmental normative pressure, whereas environmental regulatory pressure negatively moderates this process. Theoretical and practical implications of how to leverage CEO environmental awareness and environmental institutional pressure to boost NPD performance are discussed.

The impact of CEO attributes on corporate decision-making and outcomes: a review and an agenda for future research

PurposeThe role of chief executive officer (CEO) personal characteristics in shaping corporate policies has attracted increasing academic attention in the past two decades. In this review, the authors synthesize extant research on CEO attributes by reviewing 232 articles published in 29 journals from the accounting, finance and management literature. This review provides an overview of existing findings, highlights current trends and interdisciplinary differences in research approaches and identifies potential avenues for future research.Design/methodology/approachTo review the literature on CEO attributes, the authors manually collected peer-reviewed articles in accounting, finance and management journals from 2000 to 2021. The authors conducted in-depth analysis of each paper and manually recorded the theories, data sources, country of study, study period, measures of CEO attributes and dependent variables. This procedure helped the authors group the selected articles into themes and sub-themes. The authors compared the findings in various disciplines and provided direction for future research.FindingsThe authors highlight the role of CEO personal attributes in influencing corporate decision-making and firm outcomes. The authors categorize studies of CEO traits into three main research themes: (1) demographic attributes and experience (including age, gender, culture, experience, education); (2) CEO interactions with others (social and political networks) and (3) underlying attributes (including personality, values and ideology). The evidence shows that CEO characteristics significantly affect a wide range of specific corporate policies that serve as mechanisms through which individual CEOs determine firm success and performance.Practical implicationsCEO selection is one of the most crucial decisions made by corporations. The study findings provide valuable insights to corporate executives, boards, investors and practitioners into how CEOs’ personal characteristics can impact future firm decisions and outcomes that can, in turn, inform the high-stake process of CEO recruitment and selection. The study findings have significant practical implications for corporations, such as contributing to executive training programs, to assist executives and directors attain a greater level of self-awareness.Originality/valueBuilding on the theoretical foundation of upper echelons theory, the authors offer an integrated theoretical framework to consolidate existing empirical research on the impacts of CEO personal attributes on firm outcomes across accounting and finance (A&F) and management literature. The study findings provide a roadmap for scholars to bridge the interdisciplinary divide between A&F and management research. The authors advocate a more holistic and multifaceted approach to examining CEOs, each of whom embodies a myriad of personal characteristics that comprise their unique identity. The study findings encourage future researchers to expand the investigation of the boundary conditions that magnify or moderate the impacts of CEO idiosyncrasies.