Adam Steinbach, Cynthia E. Devers, Gerry McNamara and Jingyu Li
In this chapter, we review recent work examining the influence individual executive characteristics exhibit on acquisition behavior, often in service of their private interests…
Abstract
In this chapter, we review recent work examining the influence individual executive characteristics exhibit on acquisition behavior, often in service of their private interests. In doing so, we outline the findings of this limited research, explore possible alternative explanations and factors, and discuss several novel data collection and methodological techniques that scholars have advanced in the upper echelon context, in recent years. As we discuss, we believe that researchers can more fruitfully explore the underlying personal, psychological, and social factors that motivate acquisition activity, by augmenting current techniques with these methodological innovations.
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Determines this research programme was planned against a background of argument and counter‐argument, largely unsubstantiated, which was being voiced about the sale of animals…
Abstract
Determines this research programme was planned against a background of argument and counter‐argument, largely unsubstantiated, which was being voiced about the sale of animals from farms for meat, their slaughter, and the distribution of meat to the consumer through wholesalers and retailers – nevertheless certain clearly perceptible developments and trends emerge. Discusses the fact that consumer tastes are changing in favour of convenience foods and how this was expected to have an effect on consumption of meat, with more steaks, chops, stewing meat and mince required, and reduced demand for the traditional roast. Concludes the gradual reduction in the number of retail butchers shops can be expected to continue, as the housewife becomes more accustomed to buying pre‐packaged meat from self‐service displays.
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Linlin Wang and Wan Jiang
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…
Abstract
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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The objective of this chapter is to discuss how different techniques in Regional Science and Peace Science and the emerging techniques in Management Science can be used in…
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The objective of this chapter is to discuss how different techniques in Regional Science and Peace Science and the emerging techniques in Management Science can be used in analysing Disaster Management and Global pandemic with special reference to developing countries. It is necessary for me to first discuss the subjects of Disaster Management, Regional Science, Peace Science and Management Science. The objective of this chapter is to emphasise that the studies of Disaster Management should be more integrated with socioeconomic and geographical factors. The greatest disaster facing the world is the possibility of war, particularly nuclear war, and the preparation of the means of destruction through military spending.
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Elaine Hatfield, Richard L. Rapson and Victoria Narine
Recently, scholars from a wide variety of disciplines have begun to study the influence of attention, mimicry, and social context on emotional contagion. In this chapter, we will…
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Recently, scholars from a wide variety of disciplines have begun to study the influence of attention, mimicry, and social context on emotional contagion. In this chapter, we will review the classic evidence documenting the role of these factors in sparking primitive emotional contagion, especially in occupational settings. Then we will discuss the new evidence, which scholars have amassed to help us better understand the role of culture in fostering the ability to read others’ thoughts, feelings, and emotions. Finally, we will briefly speculate as to where future research might be headed.
Chongwu Bi, Lishuang Yao, Yan Jin and Zhuo Sun
The purpose of this paper is to investigate the factors influencing user adoption behavior in the context of conflicting health information, thereby contributing to the…
Abstract
Purpose
The purpose of this paper is to investigate the factors influencing user adoption behavior in the context of conflicting health information, thereby contributing to the understanding of users' information decision-making and adoption processes within intricate information environments. Furthermore, this research endeavors to offer guidance for mitigating the adverse effects of contradictory health information on users' cognitive perceptions.
Design/methodology/approach
First, this study used literature coding to identify factors that influence user adoption behavior in the context of conflicting health information. Secondly, we utilized the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method to unveil the key influencing factors based on centrality and causality. Lastly, utilizing the Interpretive Structural Model (ISM), we constructed the multilevel hierarchical structure model of influencing factors to delineate the relationships among factors across different levels.
Findings
The key causal factors influencing user adoption behavior in the context of conflicting health information include user basic characteristics, experience accumulation, and information type. The key result factors consist of psychological emotion, perceived trade-offs, and the source credibility. The significant elements include users' psychological emotions, perceived trade-offs, emotional support, source credibility, and informational support. Furthermore, user adoption behavior in the context of conflicting health information is a manifestation of the interplay among surface-level, mid-level, and deep-level factors.
Research limitations/implications
Theoretically, this paper enriches the existing relevant theoretical framework and offers a novel perspective for further investigation into user adoption behavior concerning conflicting health information. Practically, this study extracts factors that can influence user adoption behavior in the context of conflicting health information which is an essential reference value for guiding and optimizing user adoption behavior.
Originality/value
This paper expands the system of factors influencing user adoption behavior in the context of conflicting health information from individual, information and social perspectives. Utilizing DEMATEL quantitative analysis and ISM multilevel hierarchical models, this research examines and illustrates the significance of the influencing factors and their interrelationships.
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Herman Aguinis, Geoffrey P. Martin, Luis R. Gomez-Mejia, Ernest H. O’Boyle and Harry Joo
The purpose of this study was to examine the extent to which chief executive officers (CEOs) deserve the pay they receive both in terms of over and underpayment.
Abstract
Purpose
The purpose of this study was to examine the extent to which chief executive officers (CEOs) deserve the pay they receive both in terms of over and underpayment.
Design/methodology/approach
Rather than using the traditional normal distribution view in which CEO performance clusters around the mean with relatively little variance, the authors adopt a novel power law approach. They studied 22 industries and N = 4,158 CEO-firm combinations for analyses based on Tobin’s Q and N = 5,091 for analyses based on return on assets. Regarding compensation, they measured the CEO distribution based on total compensation and three components of CEO total pay: salary, bonus, and value of options exercised.
Findings
In total, 86 percent of CEO performance and 91 percent of CEO pay distributions fit a power law better than a normal distribution, indicating that a minority of CEOs are producing top value for their firms (i.e. CEO performance) and a minority of CEOs are appropriating top value for themselves (i.e. CEO pay). But, the authors also found little overlap between CEOs who are the top performers and CEOs who are the top earners.
Implications
The findings shed new light on CEO pay deservingness by using a novel conceptual and methodological lens that highlights systematic over and underpayment. Results suggest a violation of distributive justice and offer little support for agency theory’s efficient contracting hypothesis, which have important implications for agency theory, equity theory, justice theory, and agent risk sharing and agent risk bearing theories.
Practical implications
Results highlight erroneous practices when trying to benchmark CEO pay based on average levels of performance in an industry because the typical approach to CEO compensation based on averages significantly underpays stars and overpays average performers.
Originality/value
Results offer new insights on the extent of over and underpayment. The findings uncover an extremely large non-overlap between the top earning and top performing CEOs and to an extent far greater in magnitude than previously suggested.
Objetivo – El objetivo de nuestro estudio fue examinar si los directores ejecutivos (CEOs) merecen la remuneración monetaria que reciben.
Metodología – En lugar de utilizar el enfoque tradicional que asume que la distribución del rendimiento de CEOs sigue la curva normal (con la mayoría de CEOs agrupados en torno a la media y relativamente poca variación), adoptamos un enfoque diferente basado en la ley de potencia. Incluimos 22 industrias y N = 4.158 combinaciones de CEO-firma para análisis basados en Tobin’s Q y N = 5.091 para análisis basado en la rentabilidad de los activos. En cuanto a la remuneracion, medimos distribuciones basadas en la remuneración total y tres componentes del pago completo a los CEOs: salario, bonos, y el valor de las opciones ejercitadas.
Resultados – 86% de las distribuciones de rendimiento de CEOs y el 91% de las distribuciones de pago de los CEO se aproximan mejor a una distribución de ley de potencia que a una distribución normal. Esto indica que una minoría de los CEOs produce un valor muy superior para sus empresas (es decir, el rendimiento CEO) y una minoría de los CEOs apropia valor superior para sí mismos (es decir, pago de los CEO). Sin embargo, encontramos muy poco solapamiento entre aquellos CEOs que se desempeñan mejor y los CEOs que ganan más.
Implicaciones – Nuestros hallazgos usando una conceptualización y metodología novedosas ponen en relieve que a muchos CEOs se les paga demasiado y que a muchos no se les paga suficiente (en comparación con su desempeño). Los resultados sugieren una violación de los principios de justicia distributiva y no apoyan la hipótesis de “contratación eficiente,” y tienen implicaciones para para la teoría de la agencia, de la equidad, de la justicia, y de la distribución de riesgos.
Implicaciones prácticas – Los resultados destacan las prácticas erróneas con respecto a la distribución de compensación a CEOs que se basan en los niveles medios de rendimiento en una industria. Estas prácticas llevan a no pagar suficiente a los directivos “estrella” y pagar demasiado a los directivos con desempeño medio.
Originalidad/valor – Los resultados ofrecen nuevas perspectivas sobre la relación entre desempeño y compensación de CEOs y que los que se desempeñan mejor no son los que reciben más pago, y viceversa. Estas diferencias son mucho más grandes de que lo que se creía anteriormente.
Objetivo – O objetivo do nosso estudo foi examinar se os CEOs merecem a compensação monetária que recebem.
Metodologia – Em vez de utilizar a abordagem tradicional que assume que a distribuição do desempenho do CEO segue a curva normal (com a maioria dos CEOs agrupados em torno da média e relativamente pouca variação), adotamos uma abordagem diferente com base num enfoque inovador da lei de potência. Incluímos 22 indústrias e N = 4.158 combinações de CEO-empresa para análise baseada no Q de Tobin e N = 5091 para análise baseado na rentabilidade dos ativos. Em relação à compensação, medimos as distribuições de CEO com base no total de compensação e três componentes do pagamento total dos CEOs: salário, bônus e o valor das opções exercidas.
Resultados – 86% do desempenho do CEO e 91% das distribuições de pagamento do CEO correspondem a uma lei de potência melhor do que uma distribuição normal, indicando que uma minoria de CEOs está produzindo valor superior para suas empresas (ou seja, desempenho do CEO) e uma minoria de CEOs se apropriando do valor superior para si próprios (isto é, o salário do CEO). Mas, também encontramos pouca sobreposição entre CEOs que tem os melhores desempenhos e os CEOs que tem as maiores ganancias.
Implicações – Nossas descobertas lançam nova luz sobre o merecimento do pagamento do CEO, usando uma nova lente conceitual e metodológica que destaca o excessivo e o baixo pagamento sistemático. Os resultados sugerem uma violação da justiça distributiva e não apoiam a hipótese da contratação eficiente, e tem implicações para a teoria da agência, teoria da igualdade, teoria da justiça e distribuição de riscos.
Implicações práticas – Os resultados destacam práticas errôneas quando se tenta benchmark de remuneração do CEO baseado em níveis médios de desempenho em uma indústria, porque essas práticas levam a não pagar o suficiente aos CEOs “estrela” e pagar em excesso CEOs com desempenho médio.
Originalidade/valor – Os resultados oferecem novas perspectivas sobre a relação entre desempenho e retribuição dos CEOs e que os que desempenham melhor não são os que recebem um pagamento maior, e vice-versa. Estas diferenças são muito maiores do que se pensava anteriormente.
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Keywords
- Justice
- Power
- Firm performance
- Corporate governance
- Agency theory
- Executive compensation
- CEO pay
- CEO performance
- Chief executive officers, CEOs
- Directores ejecutivos (CEOs)
- Compensación de ejecutivos
- Desempeño de las empresas
- Teoría de la agencia
- Teoría de la justicia
- Equidad
- Poder
- Diretores executivos (CEOs)
- Compensação de executivos
- Desempenho das empresas
- Teoria da agencia
- Teoria da justiça
- Igualdade
- Poder
For more than a decade there have been calls to change professional development and teacher education. A central task and challenge for teacher educators is to design learning…
Abstract
For more than a decade there have been calls to change professional development and teacher education. A central task and challenge for teacher educators is to design learning experiences that offer the greatest potential for improving teacher practice. Recently, videos of classrooms have emerged as tools for teacher learning. This chapter will consider the issues we faced attempting to create a coherent, sequenced professional development curriculum using video to help teachers improve mathematics teaching and learning. We will share some of the principles that guided the work, what we’ve been learning and indicate where we feel more research is needed.
This paper aims to study the effects of two different types of state skepticism prompts, as well as the effect of the trait of professional skepticism on auditor cognitive…
Abstract
Purpose
This paper aims to study the effects of two different types of state skepticism prompts, as well as the effect of the trait of professional skepticism on auditor cognitive performance in a hypothesis-testing task. It examines the effect of a professional skepticism prompt, based on the presumptive doubt view of professional skepticism, as well as the effect of a cheater-detection prompt, based on social contracts theory.
Design/methodology/approach
Seventy-eight audit students and 85 practising auditors examine an audit case and determine the evidence needed to test the validity of a management's assertion in a Wason selection task. The experiment manipulates the presence of a professional skepticism prompt and the presence of a cheater-detection prompt. The personality trait of professional skepticism is measured with Hurtt's scale.
Findings
The presence of a professional skepticism prompt improves cognitive performance in the sample of students, but not in the sample of auditors. The presence of a cheater-detection prompt has no significant effect on performance in the student or auditor sample. The personality trait of professional skepticism is a significant predictor of cognitive performance in the sample of students but not in the sample of auditors.
Research limitations/implications
Results suggest that increasing the states of skepticism or suspicion toward the client firm's management may have no incremental effect on the normative hypothesis testing performance of experienced auditors. However, actively encouraging skeptical mindsets in novice auditors is likely to improve their cognitive performance in hypothesis testing tasks.
Originality/value
The study is the first to examine the joint effects of two specific types of state skepticism prompts, a professional skepticism prompt and a cheater-detection prompt, as well as the effect of the personality trait of professional skepticism, on auditor cognitive performance in a hypothesis-testing task. The study contributes to the literature by bringing together the psychology theory of social contracts and auditing research on professional skepticism, to examine auditors' reasoning performance in a hypothesis-testing task.