The purpose of this study is to examine whether chief executive officer (CEOs) are paid for the systematic and/or unsystematic risks and whether there is any optimum risk premium…
Abstract
Purpose
The purpose of this study is to examine whether chief executive officer (CEOs) are paid for the systematic and/or unsystematic risks and whether there is any optimum risk premium level in the executive pay.
Design/methodology/approach
Firm and year fixed effect panel data regression was used to estimate the relationship between total CEO compensation and systematic (market) and unsystematic (firm) risks.
Findings
There is no nexus between CEO pay and unsystematic (diversifiable) risk; however, the association between CEO compensation and systematic (undiversifiable) risk is positively significant in line with agency theory. Moreover, it is revealed that this positive relationship has an optimum point (curvilinear).
Research limitations/implications
This paper contributes to the controversial argument in the literature by investigating the situation in the Swiss market. Switzerland is an exemplary country because of its direct democracy (consensus) structure for executive pay. This study is limited by the fact that only total CEO compensation is analyzed.
Practical implications
As a practical implication, it is shown that after the optimal point, the higher compensation does not motivate the CEOs to take higher risks and does not provide the organizations with any additional benefit.
Originality/value
The finding of this study supports agency theory’s risk premium assumption and provides additional evidence to the contradictory results in the literature with a new country setting that has paramount importance in executive compensation phenomena. It is a comparative finding with prior literature also outlines the future research area in the risk and compensation literature.
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Mehtap Aldogan Eklund and Pedro Pinheiro
This paper aims to investigate whether executive compensation, corporate social responsibility (CSR)-based incentives, environmental social and governance (ESG) performance and…
Abstract
Purpose
This paper aims to investigate whether executive compensation, corporate social responsibility (CSR)-based incentives, environmental social and governance (ESG) performance and firm performance are the significant predictors of CSR committees, in addition to CEO, firm and corporate governance characteristics, from the tenet of stakeholder and managerial power theories.
Design/methodology/approach
Switzerland is an exemplary country from the perspective of corporate governance and executive compensation. This empirical study includes a panel data set of listed Swiss companies, so fixed-effect logistic regression has been used.
Findings
It has been found that the companies that offer CSR-based incentives and higher compensation to their CEOs and have better ESG performance are more likely to have CSR committees.
Practical implications
This empirical paper fills the gap in the literature, guides practitioners about the factors that influence the creation and efficiency of CSR committees, and inspires regulatory bodies to ponder on a mandatory CSR committee to form resilient and sustainable organizations worldwide.
Social implications
COVID-19 has re-emphasized the prominence of sustainability and the stakeholder approach. Thus, this paper indicates that CSR committees require the adaption and implementation of a holistic sustainability policy that integrates both external and internal factors and thereby provides a whole process for sustainability issues.
Originality/value
The impact of CSR committees on corporate social performance (CSP) has already been investigated. However, the predictors of CSR committees have been less scrutinized in the literature.
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Birgit Leick, Martin Thomas Falk, Mehtap Aldogan Eklund and Evgueni Vinogradov
This article examines the nature of service provision in the platform-based collaborative economy from the perspective of entrepreneurship theories. It departs from a knowledge…
Abstract
Purpose
This article examines the nature of service provision in the platform-based collaborative economy from the perspective of entrepreneurship theories. It departs from a knowledge gap about the individual and contextual determinants of service provision through digital platforms. By exploring these determinants for the service provision in two main sectors of the collaborative economy, transportation and accommodation, the study provides a first conceptual introduction of these activities and their nature for the existing entrepreneurship research.
Design/methodology/approach
The analysis is based upon Eurobarometer microdata (2018), covering 28 European countries with about 27,000 observations, and uses a seemingly unrelated Probit model.
Findings
The likelihood of service provision through platforms in the collaborative economy is highest for individuals aged 25–34 years but decreases continuously with age. Occupation, sex and population density of the place of residence are other relevant determinants. By contrast, the regulatory system and GDP per capita of the region are not relevant.
Research limitations/implications
The findings illuminate the under-studied individual and contextual determinants related to individuals engaging with entrepreneurial activities in the collaborative economy. Future research should investigate the role of previous self-employment, skills and spatial context.
Practical implications
The collaborative economy is still a marginal sector in Europe that is likely to grow bigger. Particularly the young, highly educated entrepreneurial persons located in urban regions may spur this expected growth. Supporting policy measures aimed at this social stratum might foster digital entrepreneurship and contribute to growth in the digital economy.
Originality/value
By exploring the individual and contextual determinants for the service provision in the two main sectors of the platform-based collaborative economy, transportation and accommodation, the study provides a first conceptual introduction of these activities and their nature into existing entrepreneurship research.
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Andreas Aldogan Eklund and Miralem Helmefalk
The purpose of this paper is to conceptualise and provide a future research agenda for (in)congruence regarding cues between products, brands and atmospheres.
Abstract
Purpose
The purpose of this paper is to conceptualise and provide a future research agenda for (in)congruence regarding cues between products, brands and atmospheres.
Design/methodology/approach
A semi-systematic literature review was conducted. The aim was to assess, critique and synthesise (in)congruence, which was found in the literature to be dispersed and interdisciplinary, and to propose a theoretical framework in the marketing domain.
Findings
Firstly, the review reveals that sensory and semantic cues are interrelated in products, brands and atmospheres. It illustrates that these cues are the foundation for (in)congruence. Secondly, the findings show various theoretical foundations for (in)congruence. These explain where and how congruence occurs. Lastly, a theoretical framework for (in)congruence and a future research agenda were developed to stimulate further research.
Research limitations/implications
A theoretical framework was developed to enrich the theoretical knowledge and understanding of (in)congruence in the marketing domain.
Practical implications
The review reveals that products, brands and atmospheres have spillover effects. Managers are advised to understand the semantic meaning carried by cues to foster various outcomes, to estimate the trade-offs when modifying (in)congruent cues for products, brands and atmospheres.
Originality/value
The developed theoretical framework advances and deepens the knowledge of (in)congruence in the marketing domain by moving beyond the match and fit between two entities and by revealing the underlying mechanism and its outcomes.