scholarly journals Managerial change and strategic change: The temporal sequence

2016 ◽  
Vol 23 (1) ◽  
pp. 46-73 ◽  
Author(s):  
Marta Domínguez-CC ◽  
Carmen Barroso-Castro
Keyword(s):  
Qualitative Methodology ◽  
Strategic Change ◽  
Stock Exchange ◽  
Chief Executive ◽  
Business Environment ◽  
Management Team ◽  
Complex Issue ◽  
Spanish Stock Exchange ◽  
The Relationship ◽  
Do So

AbstractThe relationship between managerial change and strategic change is a complex issue that challenges our understanding of how firms react to their business environment. In this study, we analyse the influence of the management team and more specifically their knowledge and capabilities in the process of strategic change. To do so, we delve deeper into the relationship between managerial change and strategic change by identifying the sequence of these changes. Using qualitative methodology, we analyse 10 companies listed on the Spanish Stock Exchange over an extensive period to formulate our propositions. Our analysis shows that managerial change precedes strategic change. Top management team reorganization, even without Chief Executive Officer succession, was a sufficient condition for strategic change to take place. Moreover, we identified key modifications that took place whenever strategic change occurred. Our results provide meaningful insights into the processes of strategic change within firms that broaden our theoretical knowledge in this area.

The relationship between narcissism, managerial overconfidence and comparability of financial statements of listed companies

2021 ◽  
Vol 19 (5) ◽  
pp. 681-700
Author(s):  
Mohammad Almaleki ◽  
Mahdi Salehi ◽  
Mahdi Moradi
Keyword(s):  
Stock Exchange ◽  
Chief Executive ◽  
Financial Statements ◽  
Business Environment ◽  
Multiple Regression Model ◽  
Content Type ◽  
Institutional Settings ◽  
Managerial Overconfidence ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the impact of managerial narcissism and overconfidence on financial statements’ comparability. In other words, this paper seeks to answer the question of whether the personality characteristics of managers may affect the level of financial statements’ quality of commercial entities or not. Design/methodology/approach The research hypotheses are tested using a sample of 896 observations taken from the Tehran Stock Exchange and 245 observations from the Iraqi Stock Exchange during 2012 and 2018 using the multiple regression model based on the combined data technique. Findings The findings show that managerial narcissism is positively and significantly associated with Iran’s financial statement comparability. In contrast, Iraqi data articulate a negative association between these two variables. This paper finds that Chief Executive Officer overconfidence and financial statements’ comparability are negatively related in both countries. Following the market variation, the different findings suggest that institutional settings such as the general managerial style, adopting international accounting standards (now IFRS) leading to the extent of auditing market globally in Iraq and suffering from international sanctions in Iran, the governing business environment may play an allocative role in preparing financial statements. Originality/value The present research is the first research conducted in two emerging markets (Iran and Iraq) examining the relationship between managers’ narcissism and overconfidence and financial statements’ comparability. Therefore, the present research in this area can significantly contribute to the development of science and knowledge.

scholarly journals Top Management Team Characteristics, Competitive Environment and Strategy Implementation

2020 ◽  
Vol 15 (7) ◽  
pp. 147
Author(s):  
Wasike Shadrack Mayende ◽  
Owino Odhiambo Joseph
Keyword(s):  
Top Management Team ◽  
Business Environment ◽  
Strategy Implementation ◽  
Management Team ◽  
Competitive Environment ◽  
Top Management ◽  
Product Term ◽  
Team Characteristics ◽  
The Relationship ◽  
Marketing Agency

Competing favorably in the market requires finding a perfect fit between a firm’s resources and the business environment. Strategy is the stewardship by top management that aligns organizational resources and capabilities to the environment with the ultimate goal of achieving superior and sustainable performance. The current study was designed to determine the influence of competitive environment on the relationship between top management team characteristics and strategy implementation. The study adopted the descriptive cross-sectional survey design. Data was obtained by administering structured questionnaire mailed to top managers in tea factory companies in Kenya. The moderation test was carried out using the product term of the standardized scores for top management team characteristics and competitive environment respectively. Data was processed through regression analysis. While we demonstrate that top management team characteristics had significant influence on strategy implementation, the results of moderation tests were not statistically significant. Consequently, our hypothesized moderating influence of competitive environment on the relationship between top management team characteristics and strategy implementation was not supported. Our findings raise theoretical questions on whether competitive environment is more relevant during strategy formulation process or execution stage. We conclude that companies implementing strategy in stable competitive environment have predictable implementation of planned strategy. We further conclude that external insulation from competition by umbrella marketing agency reduces the influence of factors within the competitive environment on the relationship between top management team characteristics and strategy implementation. However, the temporary insulation of the firm from competition exposes it to competitive disadvantage in the event that the marketing agency is destabilized by forces both from within and external to it.

The relationship between business strategy and management entrenchment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Arash Arianpoor
Keyword(s):  
Significant Relationship ◽  
Business Strategy ◽  
Stock Exchange ◽  
Chief Executive ◽  
Developed Countries ◽  
International Standards ◽  
Defensive Strategy ◽  
Content Type ◽  
Management Entrenchment ◽  
The Relationship

PurposeThe present study's main objective is to assess the relationship between business strategy and management entrenchment in listed firms on the Tehran Stock Exchange (TSE).Design/methodology/approachIn this paper, 128 firms have been assessed during 2012–2017. The management entrenchment variable is measured using five factors: management ownership, board independence, chief executive officer (CEO) tenure, managers' compensation and CEO duality.FindingsThe obtained results show a negative and significant relationship between the aggressive strategy of the current year (and that of the previous year) and management entrenchment such that adopting an aggressive business strategy in the current and previous years can debilitate the management entrenchment. Moreover, there is a negative and significant relationship between the current year's defensive strategy and management entrenchment, and employing a defensive business strategy in the current year can also weaken the management entrenchment. At the same time, there is no significant relationship between the previous year's defensive business strategy and management entrenchment.Originality/valueManagerial entrenchment is a determining factor in the economy, and regarding the dominant norms in the emerging markets and developing countries, this factor is different from that of the developed countries. It is more important in some markets, like Iran that is dealing with economic sanctions. On the other hand, Tehran Stock Exchange observes numerous modifications, especially providing financial statements in accordance with international standards that are expected to affect the determination of business strategy in firms.

scholarly journals The relationship between CEO compensation and financial performance in Jordanian public shareholding industrial companies

2020 ◽  
Vol 17 (2) ◽  
pp. 240-254
Author(s):  
Marie H. Bani Khaled
Keyword(s):  
Financial Performance ◽  
Significant Relationship ◽  
Chief Executive Officers ◽  
Ceo Compensation ◽  
Stock Exchange ◽  
Secondary Data ◽  
Chief Executive ◽  
Industrial Companies ◽  
Q Model ◽  
The Relationship

This study aimed to examine the relationship between the compensation received by chief executive officers (CEOs) and the financial performance of Jordanian public shareholding industrial companies listed on the Amman Stock Exchange (ASE) from 2010 to 2017. To measure the variables of interest, secondary data published on the ASE website were processed to become preliminary data suitable for the study. The study population consisted of 56 companies, 25 of which met the inclusion criteria. The results of the analysis of the data on these 25 companies revealed a large difference between the amount of financial compensation received by CEOs and the earnings per share (EPS) received by shareholders. The results also showed a statistically positive and significant relationship between the amount of CEO compensation and the financial performance of industrial companies. Furthermore, return on assets (ROA), EPS, and leverage have a statistically negative and significant relationship with financial performance. However, the net profit margin has a statistically positive and significant relationship with financial performance. Besides, the results showed a positive and significant relationship between the age of the CEO and the amount of compensation received. On the other hand, Tobin’s Q model demonstrated that the relationship between CEO duality and the amount of CEO compensation is not statistically significant. Therefore, the study recommends using more than one type of compensation for the CEOs of public shareholding industrial companies in Jordan and that CEO compensation should be related to financial performance.

scholarly journals The Effect of Contextual Variables in the Relationship between CSR and CFP: Evidence from Indonesian Companies

2010 ◽  
Vol 4 (1) ◽  
pp. 40 ◽  
Author(s):  
Hasan Fauzi ◽  
Kamil M. Idris
Keyword(s):  
Control System ◽  
Business Strategy ◽  
Stock Exchange ◽  
Business Environment ◽  
Resource Theory ◽  
Manufacturing Companies ◽  
Interactive Control ◽  
Good Management ◽  
The Relationship ◽  
Slack Resource

The objectives of this study is to investigate whether business environment, business strategy, formalization, decentralization, reliance on combination of belief &amp; boundary system, reliance on combination of diagnostic &amp; interactive control system, reliance on interactive control system moderate the relationship between CSR and CFP under the slack resource and good management theories. 220 respondents from manufacturing companies listed on the Jakarta Stock Exchange were selected and two regression models were developed to examine the relationship between the related variables. The findings show that business environment has moderated the CSR-CFP link under good management theory, decentralization has moderated the CSR-CFP link under slack resource theory, and reliance on combination of diagnostic and interactive control system has moderated the CSR and CFP link based on slack resource theory.<br /><br /><br /><br />

The relationship between management attributes and accounting comparability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maryam Seifzadeh ◽  
Mahdi Salehi ◽  
Mohammadhamed Khanmohammadi ◽  
Bizhan Abedini
Keyword(s):  
Earnings Management ◽  
Multivariate Regression ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Chief Executive ◽  
Financial Statements ◽  
Content Type ◽  
Management Entrenchment ◽  
Accounting Comparability ◽  
The Relationship

Purpose This study aims to concern about the relationship between management managerial attributes (management entrenchment, narcissism and overconfidence of the chief executive officer, board effort and real and accrual earnings management) and comparability of financial statements listed firms on the Tehran Stock Exchange. In other words, this paper aims to answer the question that “whether managerial attributes contribute significantly to the comparability of financial statements or not”. Design/methodology/approach The multivariate regression model is used for hypothesis testing. The hypotheses were examined using a sample of 768 listed observations on the Tehran Stock Exchange during 2012–2017 and by using from the multivariate regression pattern based on panel data techniques and the random-effects model. Findings The obtained results show a significant and negative relationship between management entrenchment, real and accrual earnings management, comparability and the relationship between management narcissism, overconfidence and board effort and comparability of financial statements is positive and significant. Originality/value As the present study is the pioneer study on such topics in the emerging markets, it provides valuable information concerning the intrinsic and acquired features of the management for users, analysts and legal institutions with a considerable impact on the comparability of financial statements. Moreover, this study’s results contribute significantly to the development of science and knowledge in this field and fill the gap in the literature.

scholarly journals Leadership Succession and Strategic Change in Nigerian Commercial Banks

2013 ◽  
Vol 4 (7) ◽  
pp. 205-208
Author(s):  
Abdulkadir Musa Badara ◽  
Tan Fee Yean .
Keyword(s):  
Commercial Banks ◽  
Direct Relationship ◽  
Banking Sector ◽  
Strategic Change ◽  
Management Team ◽  
Regulatory Agencies ◽  
Board Members ◽  
Leadership Succession ◽  
The Relationship ◽  
Nigerian Banking

The relationship between leadership succession and strategic change is generally examined. However, more needs to be covered in the area. The paper proposed to provide a framework that will examine the relationship between leadership succession and strategic change in the Nigerian Banking sector. The model will help to a better understanding of the direct relationship between leadership succession and strategic change, hence, regulatory agencies, shareholders and board members, as well as management team will benefit from the study outcome.

Untangling the relationship between strategic consistency and organizational performance: An empirical analysis of moderator variables

2016 ◽  
Vol 23 (4) ◽  
pp. 483-503 ◽  
Author(s):  
Chin-Shien Lin ◽  
Van Thac Dang
Keyword(s):  
Organizational Performance ◽  
Theoretical Foundation ◽  
Strategic Change ◽  
Top Management Team ◽  
Management Team ◽  
Organizational Slack ◽  
Top Management ◽  
Environmental Dynamism ◽  
Upper Echelons Theory ◽  
The Relationship

AbstractResearchers have advocated various perspectives on the relationship between strategic consistency and organizational performance. This inconclusive debate has created an inadequate theoretical foundation in strategic consistency literature. Therefore, the present study uses strategic planning, strategic change, upper echelons theory, and other literature as the theoretical foundation to empirically examine the moderating roles of organizational slack, environmental dynamism, and top management team attributes in the relationship between strategic consistency and organizational performance. Using 439 electronics companies in the Taiwanese stock market as sample data, the empirical results show that organizational slack, environmental dynamism, top management team tenure, and top management team tenure heterogeneity moderate the relationship between strategic consistency and organizational performance.

scholarly journals Is it cheating – or learning the craft of writing? Using Turnitin to help students avoid plagiarism

2013 ◽  
Vol 21 ◽  
Author(s):  
Lynne Graham-Matheson ◽  
Simon Starr
Keyword(s):  
Higher Education ◽  
Teaching Practices ◽  
Management Team ◽  
Senior Management ◽  
Learning Technology ◽  
Body Of Knowledge ◽  
Subject Areas ◽  
The Impact ◽  
The Relationship ◽  
Do So

Plagiarism is a growing problem for universities, many of which are turning to software detection for help in detecting and dealing with it. This paper explores issues around plagiarism and reports on a study of the use of Turnitin in a new university. The purpose of the study was to inform the senior management team about the plagiarism policy and the use of Turnitin. The study found that staff and students largely understood the university’s policy and Turnitin’s place within it, and were very supportive of the use of Turnitin in originality checking. Students who had not used Turnitin were generally keen to do so. The recommendation to the senior management team, which was implemented, was that the use of Turnitin for originality checking should be made compulsory where possible – at the time of the study the use of Turnitin was at the discretion of programme directors. A further aim of the study was to contribute to the sector’s body of knowledge. Prevention of plagiarism through education is a theme identified by Badge and Scott (2009) who conclude an area lacking in research is “investigation of the impact of these tools on staff teaching practices”. Although a number of recent studies have considered educational use of Turnitin they focus on individual programmes or subject areas rather than institutions as a whole and the relationship with policy.Keywords: higher education; plagiarism; assessment; Turnitin(Published: 29 April 2013)Citation: Research in Learning Technology 2013, 21: 17218 - http://dx.doi.org/10.3402/rlt.v21i0.17218

How CEO underpayment influences strategic change: the equity perspective

2017 ◽  
Vol 55 (10) ◽  
pp. 2277-2292 ◽  
Author(s):  
Linlin Wang ◽  
Wan Jiang
Keyword(s):  
Strategic Change ◽  
Equity Theory ◽  
Chief Executive ◽  
Strategic Decisions ◽  
Environmental Complexity ◽  
Content Type ◽  
Theoretical Predictions ◽  
Compensation Gap ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine how the magnitude of strategic change may be influenced by Chief executive officer (CEO) underpayment relative to comparison CEOs. Based on equity theory, the authors propose that compensation inequity motivates underpaid CEOs to restore equity, which can take the form of making a greater magnitude of strategic change. In addition, this study proposes three important moderators of the relationship between CEO underpayment and strategic change. Design/methodology/approach Results from a sample covered in the Standard & Poor’s (S&P) ExecuComp database for the years 1996-2014 provide support for these theoretical predictions. Findings CEO underpayment has a positive effect on the magnitude of strategic change. Top management team compensation gap and firm slack are proposed to weaken the impact of CEO underpayment on strategic change, while environmental complexity is predicted to strengthen the relationship between CEO underpayment and strategic change. Originality/value This study contributes to strategic change literature by linking research on CEO relative compensation to strategic change studies. This study contributes to equity theory and CEO relative compensation literature by extending its implications to firms’ decisions on strategic change. Moreover, it also contributes to equity theory by revealing the boundary conditions that mitigate or aggravate the impacts of CEO underpayment on firms’ strategic decisions.

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