The purpose of this paper is to investigate the impact of CEO incentive-based compensation on earnings management, taking into account the influence of institutional settings and…
Abstract
Purpose
The purpose of this paper is to investigate the impact of CEO incentive-based compensation on earnings management, taking into account the influence of institutional settings and corporate governance systems.
Design/methodology/approach
Using archival data of 3,000 British, Australian, German, and Austrian firm-years between 2005 and 2014, the study applies fixed-effect estimator to reduce risks of endogeneity bias.
Findings
The findings reveal that institutional factors influence the relationship between CEO incentive-based compensation and earnings management. Particularly, firms from countries within the Anglo-American model (the UK and Australia), which provide greater protection for investor, stricter legal enforcement, and higher quality of corporate governance, tend to have lower level of earnings management. However, besides corporate governance quality, it is relevant to consider weaker investor protection and legal enforcement to motivate earnings management in firms from countries within the Euro-Continental model (Germany and Austria).
Originality/value
The study suggests that robust implementation of corporate governance, derived from either model, helps in restraining CEO opportunistic behavior. Importantly, more qualified institutions have higher impact on the relative adequacy of CEO incentive-based pay formulas in mitigating earnings management concerns. This can be extended by future research through comparative studies using other contexts or influential institutions.
Details
Keywords
Emmanouel Garoufallou, Rania Siatri, Georgia Zafeiriou and Ekaterini Balampanidou
Marketing supports the reaching of organizational goals by focusing on the identification and satisfaction of customer needs, thus it can also contribute considerably in achieving…
Abstract
Purpose
Marketing supports the reaching of organizational goals by focusing on the identification and satisfaction of customer needs, thus it can also contribute considerably in achieving the objectives of non‐profit organizations such as libraries. The purpose of this paper is to provide an overview of the literature on the incorporation of marketing notions and the implementation of marketing techniques in library management. It reviews definitions, present different opposing views, marketing issues, social media and Web 2.0 and opinions on the adoption of marketing in a non‐profit organization environment, and examines different successful examples of marketing implementation, concentrating on the gains resulting from such a move.
Design/methodology/approach
A thorough literature search on various databases and on various aspects of this topic was reviewed. The literature review is organised on emerging themes directly drawn from the literature, thematically and chronologically within each section. It aims to identify the changing perspectives, the current challenges, and the benefits offered by examining information science specialists' views. The main marketing concepts are identified throughout a strategic planning approach, which has been recommended as the most successful by the majority of researchers.
Findings
This paper examines and clarifies the existing misunderstandings and difficulties in library and information services marketing, and stresses the importance of its adoption in this contemporary competitive environment. It examines library marketing in six sections: misconceptions regarding library marketing, main challenges and reasons as to why the adoption of marketing concepts is an integral part of the strategic planning, reports on the international library organizations, provides a description of the implementation of strategic marketing and planning processes, presents some library marketing approaches and examines the contemporary technological opportunities for library marketing in the digital era, such as the use of Web 2.0 tools.
Originality/value
The paper broadens the library marketing literature by gathering researchers' scientific views and advice and identifies the main implementation concerns derived from the earlier and more recent relevant literature. Moreover, for the first time, IT records issues concerning library marketing, social media and Web 2.0.