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Lerong He, James J. Cordeiro and Tara Shankar Shaw
The purpose of the research is to study how Chief Executive Officer’s (CEO’s) ownership, CEO’s structural and expertise power and underwriters’ reputation affect the initial…
Abstract
Purpose
The purpose of the research is to study how Chief Executive Officer’s (CEO’s) ownership, CEO’s structural and expertise power and underwriters’ reputation affect the initial public offering (IPO) lockup period.
Design/methodology/approach
The study uses the multivariate regression method to test the hypothesis on a sample of 1,071 US IPOs, which comprise 80 per cent of the total population of IPOs over the 1998-2002 period.
Findings
It was found that CEO equity ownership had a direct positive impact and two indicators of CEO positional power (CEO duality, founder status) and underwriter reputation had a direct negative impact on the length of the lockup period that results from IPO negotiations between the issuing firm and the underwriter. It was also found that underwriter reputation negatively moderates the impact of equity ownership (likely due to a substitution effect) and positively moderates the impact of CEO duality on lockup period length (by offsetting the impact of CEO positional power).
Originality/value
Previous studies have exclusively studied the affect of economic factors on IPO lockup. This paper extends the extant literature by studying the insider’s characteristics like CEO’s power and underwriter’s reputation on IPO lockup periods.
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The purpose of this paper is to examine the relationship between IPO lockups and founder-CEOs’ compensation and incentives in newly public firms. The paper argues that existence…
Abstract
Purpose
The purpose of this paper is to examine the relationship between IPO lockups and founder-CEOs’ compensation and incentives in newly public firms. The paper argues that existence and length of lockup agreements are affected by bargaining power of founders, which will consequently influence the determination of their compensation contracts.
Design/methodology/approach
Multivariate tests are constructed to examine the relationship between IPO lockups and executive compensation. OLS, fixed-effect panel data model, and the Heckman two-stage model are all utilized to conduct the tests.
Findings
The study finds that lockup existence and lockup length are negatively related to founder-CEOs’ total compensation and positively related to founder-CEOs’ equity incentives. The results hold after controlling for the endogenous decision to sign a lockup agreement at the IPO.
Research limitation/implications
The paper's results suggest that the power of founders and other insiders is a crucial factor in the lockup determination process besides economic factors identified in previous studies. The paper's results also echo the political power theory in the management literature which suggests that an organization's decision making is heavily influenced by relative power of organizational members and reflects their preference.
Originality/value
The paper raises a new explanation for the determinant of IPO lockups that supplements the extant theories. The paper argues that existence and length of lockup agreements could be affected by bargaining power of insiders.
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Matteo Cristofaro, Frank Butler, Christopher Neck, Satyanarayana Parayitam and Chanchai Tangpong
The purpose of this paper is to provide a model that can explain how organizations may retain their executives’ tacit knowledge in the organization especially during the…
Abstract
Purpose
The purpose of this paper is to provide a model that can explain how organizations may retain their executives’ tacit knowledge in the organization especially during the succession period. The proposed model takes into consideration three critical contexts that may assist in improving the knowledge flow during the transition period, namely, motivation context, transition context and ability context.
Design/methodology/approach
This paper presents a conceptual framework that emphasizes the importance of the will and skill of two parties involved in succession, i.e. the predecessor and successor, as well as the context of the succession. To this end, the paper advances a set of propositions that explain how these different contexts affect the quantity and quality of the knowledge acquired by the successor at the end of the succession period.
Findings
This paper advances a theoretical model that describes the antecedents and moderator of job-specific knowledge acquired during executive succession.
Research limitations/implications
This paper presents a theoretical model that explains knowledge flow during the transitory period of succession. It emphasizes the importance of the motivation and ability of the partners involved while taking into consideration the context of succession.
Practical implications
This paper contributes considerably and in a practical manner to managers in general and to human resource managers in particular. It draws the attention of concerned managers to check the motivation of both successor and predecessor in experiencing the transition, explain to the successors the job description of the position to direct their attention to learn specific knowledge and equip both parties involved in the succession with the needed skills.
Originality/value
This paper advances a new concept termed as accelerated engaged tacit knowledge acquisition. This concept complements other perspectives of knowledge flow and learning and takes into consideration the specific context of executive succession.
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Steen Nielsen and Iens Christian Pontoppidan
This paper aims to contribute to the construction of a framework that makes risk management (RM) more effective and visible. This is done by investigating how the concept of…
Abstract
Purpose
This paper aims to contribute to the construction of a framework that makes risk management (RM) more effective and visible. This is done by investigating how the concept of “risk” is included in various activities in the management accounting and control (MA&C) system.
Design/methodology/approach
A cross-sectional analysis of 72 Danish organisations extracted from an alumni database is conducted together with a factor analysis and a partial least squares structural equation modelling approach.
Findings
The authors find four latent variables, namely, expectation, attitude, subjective norms, processes and culture, which all have risk activities in MA&C as the depending variable. Attitude seems to be a powerful antecedent, whereas supporting processes and culture play a crucial partial mediator role for the inclusion of risk.
Research limitations/implications
The findings add to the understanding of the interrelationships between risk and MA&C. An important caveat is that the authors use soft and self-reported data for the dependent variable and for the various independent variables.
Practical implications
The authors propose a dynamic and holistic framework for the analysis of risk. This framework eliminates the limitations found in many prior studies that have neglected the interrelated importance of attitude and supporting processes and culture. The results of this study also provide valuable insights for managers who wish to consider and to explore the interrelations of a number of antecedent risk issues that influence different risk activities in MA&C.
Originality/value
This paper is one of the few papers that assess the impact of different risk issues on firms’ different MA&C activities by including the theory of planned behaviour. The potential key role that supporting processes and culture play as partial mediators for risk inclusion is particularly interesting. The research extends prior research by constructing a framework that makes that implementation of RM processes in the MA&C system more effective. It also proposes a validation process that can lessen the model risk possible.
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This study reviews the literature on business-school (b-school) competition and competitiveness to extend our understanding of b-schools’ competitive strategies.
Abstract
Purpose
This study reviews the literature on business-school (b-school) competition and competitiveness to extend our understanding of b-schools’ competitive strategies.
Design/methodology/approach
Both content and network analysis were used in the examination of the scholarly discourse.
Findings
The analyses distinguish three literature streams. The first concentrates on resources, capabilities and competencies; the second focuses on measures of competitiveness; and the third includes competitive dynamics and strategy discourse. The analysis shows that the conceptions of competitiveness are quite coherent concerning resources, capabilities and competencies. However, in the “measures of competitiveness” and “industry dynamics and strategy,” discourses were more diverse, indicating greater ambiguity in how the core competencies, capabilities and resources are portrayed as competitiveness outside the institutions. The literature suggests that the measures and indicators of competitiveness are ambiguous to external stakeholders and, furthermore, reflect institutional goal ambiguity.
Originality/value
The question of how, and to what extent, increasing competition in management education and research catalyzes unwelcome changes in the industry has been of great concern to management educators and scholars. This has given rise to a considerable body of literature referring to b-school competition. Despite its topicality, this discourse has remained theoretically fragmented and separate from the mainstream strategy literature. Therefore, this study provides a review and critical discussion of the current state of research on b-school competition, as well as proposes avenues for future research and tools for strategic management of b-schools.
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Keywords
This paper offers a “content analysis of metadata, titles, and abstracts” (CAMTA) method underpinned by a newly evolved metadata, title, abstract, introduction, methodology…
Abstract
Purpose
This paper offers a “content analysis of metadata, titles, and abstracts” (CAMTA) method underpinned by a newly evolved metadata, title, abstract, introduction, methodology, results, analysis, and discussion (M-TAIMRAD) Framework.
Design/methodology/approach
Draws on innovations of content analysis from the field of health- care to offer a pragmatic and transparent method for conducting rigorous and valid research within the field of business and management.
Findings
Replicable and valid guidelines for conducting the CAMTA method are offered, including an illustration. This is followed by a critical examination of the potential applications and benefits of the method to the field of business and management research.
Originality/value
The CAMTA method enables researchers to assimilate and synthesise metadata, titles and abstracts as a means of identifying grounds for future research and theory development. This will help to advance the field and subsequently benefit the wider readership including fellow academics, practitioners and policymakers. The flexibility of the CAMTA method means that it can be used as a stand-alone method or combined as part of a mixed-methods approach.
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