Does board social capital influence chief executive officers' investment decisions in research and development?

2013 ◽  
Vol 43 (4) ◽  
pp. 381-393 ◽  
Author(s):  
Hsiang-Lan Chen ◽  
Mei Hsiu-Ching Ho ◽  
Wen-Tsung Hsu
Keyword(s):  
Social Capital ◽  
Research And Development ◽  
Chief Executive Officers ◽  
Investment Decisions ◽  
Chief Executive ◽  
Executive Officers ◽  
Board Social Capital

Time Encoding in Languages and Investment Efficiency

2020 ◽  
Author(s):  
Jaehyeon Kim ◽  
Yongtae Kim ◽  
Jian Zhou
Keyword(s):  
Chief Executive Officers ◽  
Investment Decisions ◽  
Chief Executive ◽  
Investment Efficiency ◽  
Grammatical Structure ◽  
The Future ◽  
Time Encoding ◽  
Country Analysis ◽  
Cross Country ◽  
Executive Officers

Linguistics research shows that languages differ as to how they differentiate future from present events. Economics research finds that when the grammatical structure of a language disassociates the future from the present, speakers of the language also disassociate the future from the present in their behaviors. This study examines how linguistically induced time perception relates to cross-country variation in investment efficiency. We find that underinvestment is less prevalent in countries where there is a weaker time disassociation in the language. The results from both a within-country analysis based on firms headquartered in different regions of Switzerland and an analysis based on the birthplace information of U.S. firms’ chief executive officers confirm the relation between languages and investment efficiency. Collectively, the results suggest that time encoding in languages influences speakers’ cognition and their investment decisions. This paper was accepted by Shivaram Rajgopal, accounting.

scholarly journals Measuring social capital of hospital management boards in European hospitals: A validation study on psychometric properties of a questionnaire for Chief Executive Officers

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Antje Hammer ◽  
Onyebuchi A. Arah ◽  
Russell Mannion ◽  
Oliver Groene ◽  
Rosa Sunol ◽  
...  
Keyword(s):  
Social Capital ◽  
Quality Improvement ◽  
Validation Study ◽  
Chief Executive Officers ◽  
Correlation Coefficients ◽  
Hospital Management ◽  
Chief Executive ◽  
Management Board ◽  
Pearson's Correlation ◽  
Executive Officers

Abstract Background The commitment of hospital managers plays a key role in decisions regarding investments in quality improvement (QI) and the implementation of quality improvement systems (QIS). With regard to the concept of social capital, successful cooperation and coordination among hospital management board members is strongly influenced by commonly shared values and mutual trust. The purpose of this study is to investigate the reliability and validity of a survey scale designed to assess Social Capital within hospital management boards (SOCAPO-B) in European hospitals. Methods Data were collected as part of the EU funded mixed-method project “Deepening our understanding of quality improvement in Europe (DUQuE)” from 210 hospitals in 7 European countries (France, Poland, Czech Republic, Germany, Portugal, Spain, and Turkey). The Chief Executive Officers (CEOs) completed the SOCAPO-B scale (six-item survey, numeric scale, 1=‘strongly disagree’ to 4=‘strongly agree’) regarding their perceptions of social capital within the hospital management board. We investigated the factor structure of the social capital scale using exploratory and confirmatory factor analyses. Internal consistency was assessed using Cronbach’s alpha, while construct validity was assessed through Pearson’s correlation coefficients between the scale items. Results A total of 188 hospitals participated in the DUQuE-study. Of these, 177 CEOs completed the questionnaire(172 observations for social capital) Hospital CEOs perceive relatively high social capital among hospital management boards (average SOCAPO-B mean of 3.2, SD = 0.61). The exploratory factor analysis resulted in a 1-factor-model with Cronbach’s alpha of 0.91. Pearson’s correlation coefficients between the single scale items ranged from 0.48 to 0.68. Conclusions The SOCAPO-B−scale can be used to obtain reliable and valid measurements of social capital in European hospital management boards, at least from the CEO’s point of view. The brevity of the scale enables it to be a cost-effective and tool for measuring social capital in hospital management boards. Trial registration This validation study was not registered.

CEO social capital and contingency pay: a test of two perspectives

2015 ◽  
Vol 15 (4) ◽  
pp. 476-490 ◽  
Author(s):  
Russell Fralich ◽  
Hong Fan
Keyword(s):  
Social Capital ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Agency Cost ◽  
Content Type ◽  
Equity Compensation ◽  
Theoretical Perspectives ◽  
Executive Officers ◽  
The Impact

Purpose – This paper aims to provide greater understanding of how the composition of pay reduces agency cost to the shareholders by examining how firms pay their chief executive officers (CEOs). More specifically, this study examines the relationship between CEOs’ social capital, measured as external directorships, and their contingency pay, the proportion of their compensation that depends on achieving long-term performance goals. Design/methodology/approach – The authors use a panel sample of Standard & Poor 500 CEOs to test two contrasting theoretical perspectives. From a board perspective, boards attempt to retain executives with more social capital working longer for the firms to utilize executives’ social capital and pay them more in the form of contingency pay. The CEO power perspective argues that CEOs wield social capital as a form of power to lower contingency pay in an attempt at preserving wealth. Findings – CEO social capital does not exacerbate agency pressures. Boards reward the long-term benefits of social capital accumulated by CEOs through higher proportions of contingency pay. Research limitations/implications – The authors considered CEOs of well-capitalized, publicly-traded US-based firms. So the results may not generalizable to other contexts. Practical implications – Boards do recognize and reward CEOs for their social capital, and use higher levels of contingency pay to lock in CEOs with social capital. Originality/value – This is the first study to explicitly examine the impact of CEO social capital on both non-equity and equity compensation.

Immigrant founder chief executive officers, firm innovation, and performance: The role of cultural distance and top management team and board social capital

2021 ◽  
pp. 146575032110307
Author(s):  
Abdulah Bajaba ◽  
Son Le ◽  
Saleh Bajaba ◽  
Bao Hoang
Keyword(s):  
Social Capital ◽  
Chief Executive Officers ◽  
Cultural Distance ◽  
Top Management Team ◽  
Chief Executive ◽  
Management Team ◽  
Firm Innovation ◽  
And Performance ◽  
Executive Officers ◽  
The Impact

Drawing upon social cognitive and learning theories and social embeddedness perspective, we develop a conceptual framework for exploring the impact of immigrant founder chief executive officers on firm performance through firm innovation. We propose that immigrant founder chief executive officers are more likely to lead their firm with an innovative mentality due to their biculturalism, thus enhancing firm innovation and performance. We suggest that the impact of immigrant founder chief executive officers on firm innovation is moderated by cultural distance such that moderate cultural distance results in greater innovation, and ultimately, performance. We also indicate that top management team and board members’ local social capital, as well as immigrant founder chief executive officers’ foreign social capital, enhance the proposed relationships. A discussion of the relationships, limitations, and future research directions is provided.

Effect of leadership styles on organizational commitment and performance in small- and medium-sized enterprises in Iraqi Kurdistan

2020 ◽  
Vol 48 (9) ◽  
pp. 1-12
Author(s):  
Karwan Hamasalih Qadir ◽  
Mehmet Yeşiltaş
Keyword(s):  
Organizational Commitment ◽  
Organizational Performance ◽  
Leadership Styles ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Mediating Effect ◽  
Positive Effects ◽  
Iraqi Kurdistan ◽  
And Performance ◽  
Executive Officers

Since 2003 the number of small- and medium-sized enterprises (SMEs) has increased exponentially in Iraqi Kurdistan. To facilitate further growth the owners and chief executive officers of these enterprises have sought to improve their leadership skills. This study examined the effect of transactional and transformational leadership styles on organizational commitment and performance in Iraqi Kurdistan SMEs, and the mediating effect of organizational commitment in these relationships. We distributed 530 questionnaires and collected 400 valid responses (75% response rate) from 115 SME owners/chief executive officers and 285 employees. The results demonstrate there were positive effects of both types of leadership style on organizational performance. Further, the significant mediating effect of organizational commitment in both relationships shows the importance of this variable for leader effectiveness among entrepreneurs in Iraqi Kurdistan, and foreign entrepreneurs engaging in new businesses in the region.

scholarly journals Toward a Working Model of Leadership in Nonprofit Sport Governance

2019 ◽  
Vol 33 (3) ◽  
pp. 189-202 ◽  
Author(s):  
Ian O’Boyle ◽  
David Shilbury ◽  
Lesley Ferkins
Keyword(s):  
Chief Executive Officers ◽  
Leadership Skills ◽  
Chief Executive ◽  
Future Research ◽  
Limited Attention ◽  
Study Approach ◽  
Working Model ◽  
Executive Officers ◽  
Scholarly Discourse

The aim of this study is to explore leadership within nonprofit sport governance. As an outcome, the authors present a preliminary working model of leadership in nonprofit sport governance based on existing literature and our new empirical evidence. Leadership in nonprofit sport governance has received limited attention to date in scholarly discourse. The authors adopt a case study approach involving three organizations and 16 participant interviews from board members and Chief Executive Officers within the golf network in Australia to uncover key leadership issues in this domain. Interviews were analyzed using an interpretive process, and a thematic structure relating to leadership in the nonprofit sport governance context was developed. Leadership ambiguity, distribution of leadership, leadership skills and development, and leadership and volunteerism emerged as the key themes in the research. These themes, combined with existing literature, are integrated into a preliminary working model of leadership in nonprofit sport governance that helps to shape the issues and challenges embedded within this emerging area of inquiry. The authors offer a number of suggestions for future research to refine, test, critique, and elaborate on our proposed working model.

In retrospect: The influence of chief executive officers’ historical relative pay on overconfidence

2021 ◽  
pp. 147612702110048
Author(s):  
J Daniel Zyung ◽  
Wei Shi
Keyword(s):  
Chief Executive Officers ◽  
Empirical Support ◽  
Chief Executive ◽  
Firm Level ◽  
Self Confidence ◽  
Self Worth ◽  
Executive Officers ◽  
Leadership Research ◽  
The Relationship

This study proposes that chief executive officers who have received over their tenure a greater sum of total compensation relative to the market’s going rate become overconfident. We posit that this happens because historically overpaid chief executive officers perceive greater self-worth to the firm whereby such self-serving attribution inflates their level of self-confidence. We also identify chief executive officer- and firm-level cues that can influence the relationship between chief executive officers’ historical relative pay and their overconfidence, suggesting that chief executive officers’ perceived self-worth is more pronounced when chief executive officers possess less power and when their firm’s performance has improved upon their historical aspirations. Using a sample of 1185 firms and their chief executive officers during the years 2000–2016, we find empirical support for our predictions. Findings from this study contribute to strategic leadership research by highlighting the important role of executives’ compensation in creating overconfidence.

scholarly journals Leadership or luck? Randomization inference for leader effects in politics, business, and sports

2021 ◽  
Vol 7 (4) ◽  
pp. eabe3404
Author(s):  
Christopher R. Berry ◽  
Anthony Fowler
Keyword(s):  
Chief Executive Officers ◽  
Chief Executive ◽  
Anecdotal Evidence ◽  
Political Leaders ◽  
Quantitative Test ◽  
Wide Range ◽  
Randomization Inference ◽  
Executive Officers ◽  
Sports Coaches

Anecdotal evidence suggests that some leaders are more effective than others but observed differences in outcomes between leaders could be attributable to chance variation. To solve this inferential problem, we develop a quantitative test of leader effects that provides more reliable inferences than previous strategies, and we implement the test in the settings of politics, business, and sports. We find significant effects of political leaders, particularly in nondemocracies. We find little evidence that chief executive officers influence the performance of their firms. In addition, we find clear evidence that sports coaches matter for a wide range of outcomes in football, basketball, baseball, and hockey.

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