Search results

This study explores the relationship between state ownership and labour cost stickiness across strategic and non-strategic industries in developing economies. It aims to uncover how non-economic considerations and sociopolitical objectives influence cost behaviour in state-owned enterprises (SOEs), particularly within strategic sectors.

The research employs data from 151 firms listed on the Tehran Stock Exchange from 2011 to 2021. Using multiple linear regression analysis with year and industry-fixed effects, the study investigates the impact of state ownership on labour cost stickiness, considering the moderating role of industry type.

The analysis reveals a significant influence of industry type on the relationship between state ownership and labour cost stickiness. SOEs exhibit higher labour cost stickiness, especially in strategic industries subject to greater public scrutiny and government intervention. These findings align with agency theory, highlighting how sociopolitical pressures shape SOEs’ managerial decisions and cost management strategies.

This research fills a crucial gap in the literature on cost behaviour in developing countries, emphasising the importance of industry-specific strategies in mitigating labour cost stickiness in SOEs. It provides new insights into how state ownership and sociopolitical objectives affect cost management, offering valuable implications for policymakers and managers in similar economic contexts.

This research employs a behavioural approach to investigate the determinants of CEO disclosure tone inconsistency. By examining CEO characteristics and psychological attributes, the study aims to unravel the complexities underlying tone variations in Management Discussion and Analysis (MD&A) reports. Through this exploration, the research seeks to contribute to understanding ethical considerations in corporate communications and provide insights into the nuanced interplay between personal, job-related and psychological factors influencing CEO disclosure tone.

The study utilises a dataset comprising 1,411 MD&A reports from 143 companies listed on the Tehran Stock Exchange between 2012 and 2021. Multiple regression analyses with year- and industry-fixed effects are employed to examine the relationships between CEO gender, tenure, duality, ability and psychological attributes such as narcissism, myopia, overconfidence and tone inconsistency. Data analysis involves MAXQDA software for analysing MD&A reports and Rahavard Novin software for document analysis, supplemented by audited financial statements.

The findings reveal significant relationships between CEO characteristics, psychological attributes and tone inconsistency. Female CEOs exhibit reduced tone inconsistency, contrasting with previous research trends. CEO tenure correlates negatively with tone inconsistency, whereas CEO ability shows a positive correlation, indicating a nuanced relationship with performance. However, CEO duality does not exhibit a significant association. Psychological attributes such as narcissism and myopia are positively associated with tone inconsistency, while no substantial connection is found with managerial overconfidence.

This research contributes to the inaugural exploration of CEO disclosure tone inconsistency through a behavioural lens, advancing measurement precision in the field. By delving into CEO characteristics and psychological attributes, the study offers unique insights into the roots of tone inconsistency. Applying comprehensive lexicon and phraseology enriches the methodological approach, fostering dialogue among diverse stakeholders and adding distinct perspectives to the discourse on ethical issues in business. Through its meticulous examination of behavioural underpinnings, this study becomes a catalyst for reflection, dialogue and progress in corporate communications and ethical considerations.