Government Control, Top Management Team’s Pay Dispersion and Firm Performance

2020 ◽  
Author(s):  
Wei Jiang ◽  
Bin Ke ◽  
Hong Ru ◽  
Yue Xu
Keyword(s):  
Firm Performance ◽  
Top Management ◽  
Government Control ◽  
Pay Dispersion

Founder Versus Family Owners’ Impact on Pay Dispersion Among Non-CEO Top Managers: Implications for Firm Performance

2014 ◽  
Vol 43 (5) ◽  
pp. 1524-1552 ◽  
Author(s):  
Peter Jaskiewicz ◽  
Joern H. Block ◽  
Danny Miller ◽  
James G. Combs
Keyword(s):  
Firm Performance ◽  
Top Management Team ◽  
Management Team ◽  
Test Theory ◽  
Top Management ◽  
Panel Analysis ◽  
Top Managers ◽  
Pay Dispersion

Emerging evidence suggests that pay dispersion among non-CEO top management team (TMT) members harms firm performance, which raises questions about why firms’ owners tolerate or even support it. Prior research shows that the key distinction between founder and family owners is that in addition to firm performance and growth goals, family owners pursue socioemotional goals. On the basis of this distinction, we develop and test theory linking founders’ and families’ ownership to TMT pay dispersion. Consistent with our theory, a Bayesian panel analysis of Standard & Poor’s 500 firms shows that founder owners use less TMT pay dispersion and that family owners, relative to founder owners, use more, although that declines across generations. We also provide evidence that TMT pay dispersion harms firm performance. Our theory and results are significant because they help to explain why some owners favor compensation practices that cause TMT pay dispersion, despite evidence that this harms firm performance.

TMT pay dispersion and firm performance: the moderating role of organizational governance effectiveness

2015 ◽  
Vol 21 (4) ◽  
pp. 436-459 ◽  
Author(s):  
Gregorio Sanchez-Marin ◽  
J. Samuel Baixauli-Soler
Keyword(s):  
Firm Performance ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Job Complexity ◽  
Organizational Governance ◽  
The Board Of Directors ◽  
Pay Dispersion ◽  
Performance Examining ◽  
Organizational Hierarchies

AbstractThis study supports tournament theory in relation to high levels of organizational hierarchies, indicating that the job complexity facing the top management team supposes that pay dispersion positively influences firm performance. Examining a sample of 709 firm-year observations of Spanish listed companies spanning the period 2004–2012, our results indicate that the association between firm performance and top management team pay dispersion is conditional on the effectiveness of corporate governance. High top management team pay dispersion is associated with better performance in owner-controlled firms, where more effective monitoring is exerted by the board of directors.

Pay dispersion among the top management team and outside directors: Its impact on firm risk and firm performance

2017 ◽  
Vol 57 (1) ◽  
pp. 177-192 ◽  
Author(s):  
Pankaj C. Patel ◽  
Mingxiang Li ◽  
María del Carmen Triana ◽  
Haemin Dennis Park
Keyword(s):  
Firm Performance ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Outside Directors ◽  
Firm Risk ◽  
Pay Dispersion

scholarly journals Management Accounting Systems, Top Management Teams, and Sustainable Knowledge Acquisition: Effects on Performance

2020 ◽  
Vol 12 (5) ◽  
pp. 2132
Author(s):  
Andrés F. Ugalde Vásquez ◽  
David Naranjo-Gil
Keyword(s):  
Firm Performance ◽  
Knowledge Acquisition ◽  
Management Accounting ◽  
Top Management Teams ◽  
Management Teams ◽  
Mediating Effect ◽  
Top Management ◽  
Accounting Systems ◽  
Management Accounting Systems ◽  
Acquisition Processes

Organizations are increasingly aware of the importance of managing the acquisition processes of new and sustainable knowledge, which allows them to increase performance. These knowledge-acquisition processes require top management teams to focus on the external environment to search for sustainable opportunities and initiatives. This spurs top teams to make strategic decisions that require more comprehensive managerial information, which is provided by management accounting systems. Our research analyzes how top management team composition facilitates the acquisition of new knowledge. Our management accounting paper also analyzes the mediating effect of the interactive use of management accounting systems (MASs) and their impact on sustainable firm performance. A survey was conducted among the main manufacturer firms in the Republic of Ecuador. Results were analyzed by using the partial least squares methodology, and they showed a positive effect for the interactive use of management accounting systems on sustainable knowledge-acquisition processes. Results also showed that knowledge acquisition increased firm performance through an interactive use of MASs.

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