scholarly journals Airline Chief Executive Officer and Corporate Social Responsibility

2021 ◽  
Vol 13 (15) ◽  
pp. 8599
Author(s):  
Luo Jing ◽  
Joonho Moon
Keyword(s):  
Least Squares ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Generalized Least Squares ◽  
Ordinary Least Squares ◽  
Stock Option ◽  
Least Squares Regression ◽  
Classification Code ◽  
Ceo Tenure ◽  
Ceo Age

The aim of this research is to explore the determinants of airline CSR. Stakeholder theory is the theoretical underpinning. Chief executive officers (CEOs) are the research target, which is theoretically underpinned by upper echelon theory. For data collection, this study used data from COMPUSTAT, EXECUCOMP, KLD MSCI, LinkedIn, and the Bureau of Economic Analysis. Standard industry classification code 4512 was employed to obtain information on airline companies. Moreover, the number of observations was 154, the number of firms was 15, and the study period was 1999–2016. CSR domains include employment, the environment, and the product. The explanatory attributes are the CEO’s age, tenure, education, share ownership, stock option, and duality. Ordinary least squares and feasible generalized least squares regression analyses were executed for hypothesis testing. Regarding the results, employment CSR was positively affected by CEO age. This study found an inverted U-shaped relationship between CEO tenure and environmental CSR. Environmental CSR was also negatively influenced by stock options. Product CSR was positively associated with CEO age, whereas it was negatively associated with CEO duality.

Do tournament incentives motivate chief executive officers to be socially responsible?

2020 ◽  
Vol 35 (5) ◽  
pp. 597-619
Author(s):  
Shahid Ali ◽  
Junrui Zhang ◽  
Muhammad Usman ◽  
Muhammad Kaleem Khan ◽  
Farman Ullah Khan ◽  
...  
Keyword(s):  
Social Responsibility ◽  
Least Squares ◽  
Chief Executive Officers ◽  
Fixed Effects ◽  
Chief Executive ◽  
Ordinary Least Squares ◽  
Socially Responsible ◽  
Content Type ◽  
Tournament Theory ◽  
Executive Officers

Purpose This study aims to investigate the question concerning whether tournament incentives motivate chief executive officers (CEOs) to be socially responsible. Design/methodology/approach Data from all A-share Chinese companies listed on the Shanghai and Shenzhen stock exchanges for the period from 2010 to 2015 are used. To draw inferences from the data, ordinary least squares (OLS) regression and cluster OLS are used as a baseline methodology. To control for the possible issue of endogeneity, firm-fixed-effects regression, two-stage least squares regression and propensity score matching are used. Findings A reliable evidence is found that tournament incentives motivate CEOs to be more socially responsible. Additional analysis reveals that the positive effect of CEO tournament incentives on corporate social responsibility performance (CSRP) is more pronounced in state-owned firms than it is in non-state-owned firms. The study’s findings are consistent with tournament theory and the conventional wisdom hypothesis, which proposes that better incentives lead to competitiveness, which improves financial and social performance. Practical implications The study’s findings have implications for companies and regulators who wish to enhance CSRP by giving tournament incentives to top managers. Investment in social responsibility may reduce the conflict between executives and employees and improve the corporate culture. Originality/value This study contributes to the existing literature by providing the first evidence that CEOs’ tournament incentives play a vital role in CSRP. The study’s findings contribute to tournament theory.

CEO pay slice and acquisitions in Australia: the role of tournament incentives

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hoa Luong ◽  
Abeyratna Gunasekarage ◽  
Syed Shams
Keyword(s):  
Least Squares ◽  
Abnormal Return ◽  
Chief Executive ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Content Type ◽  
Governance Environment ◽  
Long Run ◽  
Ceo Pay ◽  
Acquisition Announcements

PurposeThis paper investigates the influence of tournament incentives, measured by Chief Executive Officer (CEO) pay slice (CPS), on the acquisition decisions of Australian firms.Design/methodology/approachThis study applies ordinary least squares regression analyses to a sample of 1,429 acquisition observations announced by 986 unique Australian firms spanning the 2001–2015 period. Event study methodology was employed to capture the market reaction to acquisition announcements. Multinomial logit models, a two-stage least squares instrumental variable (IV) approach and propensity score matching (PSM) technique were performed for robustness and endogeneity correction purposes.FindingsThe results suggest that CPS has a positive and significant relationship with the announcement period abnormal return realised by acquirers, implying that executives are motivated to exert best efforts and support the CEO in making value-creating acquisitions. Further analyses reveal that management teams of high CPS firms demonstrate efficiencies in executing acquisitions. The positive relationship between the CPS and abnormal return is more pronounced in acquisitions of private targets, domestic targets and bidders with high-quality CEOs. These acquisitions make a significant contribution to the long-run performance of the firm, which provides support for the effort inducement hypothesis.Practical implicationsThe study's empirical evidence implies that the strong governance environment in Australia and a highly monitored acquisition market and compensation contracts motivates executives to exert their efforts to make value-enhancing acquisitions.Originality/valueThis paper appears to be the first investigation that makes a link between CPS in different components (i.e. short-term, long-term and total pay) as proxy for tournament incentives and the outcomes of both public and non-public acquisitions in the Australian setting.

scholarly journals A comparison between generalized least squares regression and top-kriging for homogeneous cross-correlated flood regions

2021 ◽  
Author(s):  
Simone Persiano ◽  
Jose Luis Salinas ◽  
Jery Russell Stedinger ◽  
William H. Farmer ◽  
David Lun ◽  
...  
Keyword(s):  
Least Squares ◽  
Generalized Least Squares ◽  
Least Squares Regression

REDUNDANCY OF MOMENT CONDITIONS AND THE EFFICIENCY OF OLS IN SUR MODELS

2008 ◽  
Vol 24 (5) ◽  
pp. 1456-1460 ◽  
Author(s):  
Hailong Qian
Keyword(s):  
Least Squares ◽  
Asymptotic Efficiency ◽  
Generalized Method Of Moments ◽  
Sufficient Conditions ◽  
Generalized Least Squares ◽  
Ordinary Least Squares ◽  
American Statistical Association ◽  
Orthogonality Condition ◽  
Moment Conditions ◽  
Necessary And Sufficient

In this note, based on the generalized method of moments (GMM) interpretation of the usual ordinary least squares (OLS) and feasible generalized least squares (FGLS) estimators of seemingly unrelated regressions (SUR) models, we show that the OLS estimator is asymptotically as efficient as the FGLS estimator if and only if the cross-equation orthogonality condition is redundant given the within-equation orthogonality condition. Using the condition for redundancy of moment conditions of Breusch, Qian, Schmidt, and Wyhowski (1999, Journal of Econometrics 99, 89–111), we then derive the necessary and sufficient condition for the equal asymptotic efficiency of the OLS and FGLS estimators of SUR models. We also provide several useful sufficient conditions for the equal asymptotic efficiency of OLS and FGLS estimators that can be interpreted as various mixings of the two famous sufficient conditions of Zellner (1962, Journal of the American Statistical Association 57, 348–368).

scholarly journals The effect of creative corporate culture and intangibility on the performance of foreign firms traded on the NYSE

2018 ◽  
Vol 15 (4) ◽  
pp. 356-372 ◽  
Author(s):  
Marcia Martins Mendes De Luca ◽  
Paulo Henrique Nobre Parente ◽  
Emanoel Mamede Sousa Silva ◽  
Ravena Rodrigues Sousa
Keyword(s):  
New York ◽  
Least Squares ◽  
Corporate Culture ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Generalized Least Squares ◽  
Ordinary Least Squares ◽  
Foreign Firms ◽  
Content Type ◽  
Negative Effect

Purpose Following the tenets of resource-based view, the present study aims to investigate the effect of creative corporate culture according to the competing values framework model at the level of corporate intangibility and its respective repercussions on performance. Design/methodology/approach The sample included 117 non-USA foreign firms traded on the New York Stock Exchange (NYSE), which issued annual financial reports between 2009 and 2014 using the 20-F form. To meet the study objectives, in addition to the descriptive and comparative analyses, the authors performed regression analyses with panel data, estimating generalized least-squares, two-stage least-squares and ordinary least-squares. Findings Creative culture had a negative effect on the level of intangibility and corporate performance, while the level of intangibility did not appear to influence corporate performance. When combined, creative culture and intangibility had a potentially negative effect on corporate results. In conclusion, creative corporate culture had a negative effect on performance, even in firms with higher levels of intangibility, characterized by elements like experimentation and innovation. Originality/value Although the study hypotheses were eventually rejected, the analyses are relevant to both the academic setting and the market because of the organizational and institutional aspects evaluated, especially in relation to intangibility and creative culture and in view of the unique cross-cultural approach adopted. Within the corporate setting, the study provides a spectrum of stakeholders with tools to identify the profile of foreign firms traded on the NYSE.

scholarly journals Tolerance Intervals in a Heteroscedastic Linear Regression Context with Applications to Aerospace Equipment Surveillance

2009 ◽  
Vol 2009 ◽  
pp. 1-8 ◽  
Author(s):  
Janet Myhre ◽  
Daniel R. Jeske ◽  
Michael Rennie ◽  
Yingtao Bi
Keyword(s):  
Linear Regression ◽  
Least Squares ◽  
Performance Metrics ◽  
Weighted Least Squares ◽  
Ordinary Least Squares ◽  
Automated System ◽  
Least Squares Regression ◽  
Data Set ◽  
Tolerance Intervals ◽  
Power Of The Test

A heteroscedastic linear regression model is developed from plausible assumptions that describe the time evolution of performance metrics for equipment. The inherited motivation for the related weighted least squares analysis of the model is an essential and attractive selling point to engineers with interest in equipment surveillance methodologies. A simple test for the significance of the heteroscedasticity suggested by a data set is derived and a simulation study is used to evaluate the power of the test and compare it with several other applicable tests that were designed under different contexts. Tolerance intervals within the context of the model are derived, thus generalizing well-known tolerance intervals for ordinary least squares regression. Use of the model and its associated analyses is illustrated with an aerospace application where hundreds of electronic components are continuously monitored by an automated system that flags components that are suspected of unusual degradation patterns.

scholarly journals CEO Career Concerns And Voluntary Disclosure

2016 ◽  
Vol 32 (6) ◽  
pp. 1603 ◽  
Author(s):  
Soo Yeon Park ◽  
Kwan Hee Yoo
Keyword(s):  
Labor Market ◽  
Chief Executive Officers ◽  
Voluntary Disclosure ◽  
Chief Executive ◽  
Career Concerns ◽  
Management Forecasts ◽  
Ceo Tenure ◽  
Disclosure Decisions ◽  
Executive Officers

This paper investigates the relation between Chief Executive Officers (CEO) career concerns and voluntary disclosures using listed firm (KOSPI) data in Korea. Prior research suggests that explicit incentives in the form of CEO stock-based compensation or CEO’s equity ownership mitigate the agency problems of reluctance to make voluntary disclosure. In addition, implicit incentives arising from CEO career concerns are as important as explicit incentives for mitigating agency problems.The labor market assesses CEOs ability and CEO reputation in the market is a valuable asset that is associated with many long-term benefits, such as better future compensation, reappointment in the position, and greater managerial autonomy. CEOs are concerned about such an assessment and these concerns are referred to as career concerns. However, the market has incomplete information about CEOs’ ability especially when the CEOs have short tenures as a CEO position. Hence, CEOs with short tenures have more strong incentives to signal their ability to the labor market so that they can build proper reputation.Implicit incentives arising from CEO career concerns are measured by CEO tenure. I assume that short-tenured CEOs are more career-concerned than long-tenured CEOs. I find that CEOs with short tenures tend to more likely disclose management forecasts. I interpret this result that more career-concerned CEOs have strong incentives to signal their ability to the labor market in order to build their reputations which affect their future payoffs such as compensations and reappointment. In addition, management forecasts, means of voluntary disclosure, are used as effective mechanism. I also find that CEOs with short tenures tend to disclose more accurate management forecasts. This result implies that CEOs with more career concerns have more pressure to provide accurate forecasts because of their reliability in the labor market. Based on these empirical results, I infer that CEOs’ implicit incentives affect their voluntary disclosure decision.This study will contribute to academics and disclosure-related practitioners by documenting about CEOs’ career concerns and their voluntary disclosure decisions.

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