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This article investigates the impact of bank size and business model on bank risk‐taking within the framework of the prospect theory. To fulfil this objective, we use the adjusted thermal optimal path model. The results suggest that conventional banks adopt the same risk‐taking behaviour for performance measures, regardless of their size. However, the size mainly influences the attitudes of managers towards Islamic banks. On the other hand, small Islamic banks, whether under‐ or over‐performing, take excessive risks. This behaviour is mainly explained by loss aversion. However, large Islamic banks that situated above the target are risk‐averse, since they adopt defensive behaviour. The results reveal that for risk measures and for both small and large banks, a bank's business model does not affect managers' attitude to risk. Therefore, small (large) banks adopt excessive risk‐taking (risk‐averse) behaviour and an offensive (defensive) strategy. The study has important implications for GCC banking regulators, supervisors, and market participants. Thus, our findings imply that understanding the impact of the bank size and business model on the risk‐taking behaviour of Islamic and conventional banks can help them reduce their risk and mitigate moral hazard and regulatory arbitrage behaviour. [ABSTRACT FROM AUTHOR]

This study investigated whether, and under what conditions, self‐control demands (SCD) are associated with less interpersonal justice (politeness or respect) and more interpersonal injustice (degrading or inappropriate remarks) behavior. Drawing from extended self‐control theory and integrating the motivation literature, we posit that (1) SCD have a stronger effect on actors' attempts not to be unfair than on their attempts to be fair because avoidance behavior is more demanding than approach behavior. Further, extended self‐control theory posits that people control themselves more effectively when they are personally motivated and external standards are present. Accordingly, we further posit that (2) emphasizing self‐transcendence values (i.e., the stable motivational goal to consider others' welfare) and (3) acting in strong situations (i.e., the presence of external normative standards on appropriate behavior) buffer the SCD effect. Results from two realistic simulation studies show that SCD were related to actors' interpersonal justice and injustice behavior. Across both studies, different results patterns, and relationships with the other variables for justice and injustice emerged. Thus, although the stronger effect of SCD on injustice (vs. justice) was not generally supported, the finding suggests that adhering to and not violating interpersonal justice rules are indeed different from one another. In addition, SCD were less detrimental among actors with higher self‐transcendence values and when actors operated in strong (vs. weak) contexts. A three‐way interaction showed that especially among actors with low self‐transcendence values, who act in weak contexts, SCD provoked injustice. We discuss theoretical and practical implications. [ABSTRACT FROM AUTHOR]

Proactive environmental strategy (PES) is regarded as an effective tool to mitigate and root out the negative effects of an enterprise's development on the environment. Although institutional pressures have been viewed as major factors that can promote enterprises' PES, the results are still inconsistent. This mixed empirical result leads to a need to unpack the relationship between institutional pressures and PES, like the certain key mediating role of top managerial environment attitude. In addition, with the important role of new media in an enterprise's strategy, new media pressure plays a significant role in the PES field to induce enterprises to make a strategy change. Therefore, combining institutional theory and upper echelon theory, this paper explores the mediating roles of top managerial environment attitude between institutional pressures and PES, and the moderating roles of new media pressure, from a new media perspective. Our research model was tested by survey data from 345 top Chinese managers, and several results are established. First, the top managerial environment attitude significantly mediates the relationship between three institutional pressures and PES. Second, among the three institutional pressures, customer pressure is the most powerful one to influence the top managerial environment attitude toward PES. Third, new media pressure promotes and suppresses the positive effect between customer pressure, competitor pressure, and top managerial environment attitude. To promote the adoption of PES, it is important for top managers and governments to pay close attention to customer, regulatory, and competitor pressures, particularly when these pressures are amplified by new media. [ABSTRACT FROM AUTHOR]

This article examines the impact of compulsory voting on grassroots electioneering in Australia between 1910 and 1951. It argues that the introduction of compulsory voting resulted in a shift from mobilization-focused campaigns to more persuasive campaigns. Grassroots campaigners in the 1930s and 1940s adopted new methods, such as amplifier campaigning and candidate-focused leaflets, to reach a larger and less engaged electorate. The article emphasizes the significance of these changes in campaign practices and highlights the continued use of candidate-focused literature and personal canvassing in modern times. [Extracted from the article]

In this study, we examine the role that human labor practices and attitudes play in mastitis infections on US dairy farms. Mastitis infection is a key barrier to sustainability in dairy production, contributing to financial losses, animal welfare concerns, and perhaps most importantly imprudent antibiotic use. We combine data from five sources on herd characteristics, owner/manager attitudes and behaviors, and labor management to empirically analyze the connections between labor practices and mastitis infection. We examine 72 conventional dairy farms in Pennsylvania, Florida, and Michigan using survey responses from both employees and owners/managers. We find that several labor practices and attitudes like communication, training, manager attitudes, and work intensity have important and meaningful associations with mastitis infection on dairy farms, in addition to conventional veterinary management practices. We also find that key labor practices are not associated with infection rates once we control for other factors. Our findings demonstrate the ways in which aspects of sustainability are intertwined on farms, particularly labor practices. [ABSTRACT FROM AUTHOR]

This study explores how CEOs' insurance behaviours outside the workplace, as measured by the premium rates of their self‐purchasing critical illness insurance, are related to corporate social responsibility (CSR) performance. We show that such behaviours (i.e. the CEO‐insurance effect) capture the variation in CEOs' risk aversion and are positively associated with CSR performance. We also find that our results align with the risk mitigation hypothesis rather than the agency conflict hypothesis. Additional analysis reveals that the main effect is more pronounced among firms in uncertain environments. Further evidence shows that accounting conservatism and internal control are potential channels through which the CEO‐insurance effect boosts CSR performance. Collectively, our evidence contributes to research on managerial risk attitude, heterogeneity in CSR policies and 'off‐the‐job' determinants of CEOs' styles. [ABSTRACT FROM AUTHOR]

Academic experience has been found to significantly impact on the attitudes and behaviors of managerial decision‐makers, which in turn influences corporate strategic decisions. However, the impact of academic decision‐makers on corporate ethical decisions, particularly corporate social irresponsibility (CSIR), has yet to receive due attention to date. In this study, we integrate the upper echelons theory and managerial discretion literature to examine whether and when academic CEOs (CEOs with academic experience) influence corporate social irresponsibility (CSIR). First, we suggest that academic CEOs discourage CSIR because they have higher moral standards; thus, their companies are less likely to engage in CSIR activities. In addition, we propose that negative attainment discrepancy (slack resources) reduces (enhances) academic CEOs' managerial discretion to incorporate their ethical preferences into their decisions, thereby weakening (enhancing) the above relationship. This study is the first to examine the relationship between academic CEOs and CSIR. Additionally, the empirical findings of this study offer crucial insights for shareholders and policymakers to prevent or mitigate CSIR effectively. [ABSTRACT FROM AUTHOR]

Underpinned by upper echelons theory, this study examines a mediated model to understand the link between human resource (HR) managers' international experience and the adoption of supportive HR practices, and whether their attitudes towards women as managers and anticipated affective reactions mediate this link. Structural equation modelling based on a sample of 183 organisations in Bangladesh reveals that HR managers' international experience has both direct and indirect effects on theadoption of supportive HR practices. Our findings indicate that the extent to which supportive HR practices are implemented in the organisation is contingent upon the cognitive and affective evaluation of managers' attitudes towards the initiative of a gender‐balanced top management team. Therefore, our study offers novel contributions to our understanding of how HR mangers' attitudes shape the adoption of supportive HR practices in organisations. Key points: Our findings suggest that international experience, one of the important demographic factors of HR managers, does have a significant influence on their attitudes towards women as managers.The mediating role of attitudes towards women as managers also suggests that supportive HR practices are implemented in the organisation contingent upon the cognitive and affective assessment of attitudes of HR managers towards the efforts dedicated to ensuring a gender‐balanced top management team.Our findings further reveal that anticipated affective reaction appears as a significant predictor of attitudes of HR managers toward women as managers. [ABSTRACT FROM AUTHOR]

Research Question/Issue: Motivated by the recent regulatory reforms, in the forms of the UK Corporate Governance Code (UK CGC) in 2011 and the enaction of section 414C of the Companies Act 2006, to increase female representation on corporate boards, this study investigates the effect of boardroom gender diversity (BGD) on investment inefficiency (IE). These reforms were aimed at enhancing corporate governance by allowing a pool of female directors into directorship positions and bringing fresher and independent perspective of female directors, thus strengthening board monitoring and its internal control systems. This study therefore seeks to understand whether and how female directors align managers' and shareholders' interests by improving investment efficiency. Findings: Using a sample of UK listed firms from 2005 to 2018, this study provides the first empirical evidence on the impact of BGD on IE. Consistent with our theoretical predictions, we find a negative and statistically significant association between BGD and IE. Furthermore, in a difference‐in‐differences analysis, we find a significant impact of UK CGC on the BGD‐IE relationship. We also identify three possible channels (board dynamics, stewardship effect, and information environment) through which BGD is likely to affect IE. Finally, we also document that the said relationship is more pronounced in firms with three or more female directors, which is consistent with critical mass theory, and that BGD mitigates concerns surrounding both the underinvestment and overinvestment decisions. Our main results are robust to endogeneity bias, alternative measures of BGD and IE, and controlling for potential bias with a two‐step investment estimation method. Policy Implications: Our findings have important implications for regulators, policy‐makers, and other corporate stakeholders. Most importantly, the recent policy initiatives on improving representation of female directors can strengthen board monitoring and could reduce inefficient investments. [ABSTRACT FROM AUTHOR]

Managerial attitudes are often seen as critical to sustainable employee participation practices, yet very little is known about how managers act within employee voice fora. We examine managements' decision to actively consult with employees, and by doing so contribute to industrial relations debates concerning the role of managerial prerogative and trust to better understand the attitudes of managers towards elected employee representatives. Using evidence from a 2‐year longitudinal study of non‐union employee representation, we report on how managements' perception of risk about sharing information with employee representatives influences their decision as to how to consult with employees. The findings show that managers can be unwilling to share information with employee representatives, which constrains the depth and scope of consultation. The role of management decision‐makers, typically the I&C fora Chairperson, is highlighted as champion for, or obstacle to, consultation. Lastly, the data illustrate that I&C is viewed by management as a lower strategic organizational priority, and how extending worker voice is constrained by the importance management place on maintaining their presumed prerogative of control. Implications for theory and practice are discussed. [ABSTRACT FROM AUTHOR]

Traditionally, mutual funds are mostly managed via an ad hoc approach, namely a terminal‐only optimization. Due to the intricate mathematical complexity of a continuum of constraints imposed, effects of the inter‐temporal reward for the managers are essentially neglected in the previous literature. For instance, the inter‐temporal optimal investment problem from the fund manager's viewpoint, who earns proportional management fees continuously (a golden rule in practice), has been outstanding for long. This article completely resolves this challenging question especially under generic running and terminal utilities, via the Dynamic Programming Principle which leads to a nonconventional, highly nonlinear HJB equation. We develop an original mathematical analysis to establish the unique existence of the classical solution of the primal problem. Further numerical calibrations and simulations for both the portfolio weight and the value functions illustrate the robustness of the optimal portfolio towards the manager's risk attitude, which allows different managers with various risk characteristics to sell essentially the same investment vehicle. Simulation studies also indicate that the policy of charging a substantial terminal‐only management fee can be replaced by another one with only a negligible amount over the interim period, which substantially reduces the total management fee paid by the clients without lowering the manager's satisfaction at all; this last observation echoes the magic of the alchemy of finance. [ABSTRACT FROM AUTHOR]

Although emotions have been investigated within strategic management literature from an internal perspective, managers' ability and willingness to understand consumers' emotions, with emphasis on the retail sector, is still a scarcely explored theme in management research. The aim of this paper is to explore the match between the supply of new analytical tools and retail managers' attitudes towards new tools to capture customers' emotions. To this end, Study 1 uses machine learning algorithms to develop a new system to analytically detect emotional responses from customers' static images (considering the exemplar emotions of happiness and sadness), whilst Study 2 consults management decision‐makers to explore the practical utility of such emotion recognition systems, finding a likely demand for a number of applications, albeit tempered by concern for ethical issues. While contributing to the retail management literature with regard to customers' emotions and big data analytics, the findings also provide a new framework to support retail managers in using new analytics to survive and thrive in difficult times. [ABSTRACT FROM AUTHOR]

Sustainability managers represent a key stakeholder in implementing and diffusing sustainability initiatives. However, there is a significant gap in the literature examining the impact of greenwashing on sustainability managers. This research examines the effects of greenwashing on sustainability managers' job satisfaction, commitment, turnover intentions, and job performance from a social identity/person–organization (P‐O) fit perspective. Our sample consists of practicing sustainability managers (n = 125) in high‐ (77%) or mid‐level (23%) positions. Results indicate that perceived greenwashing negatively affects the attitudinal outcomes and job performance of sustainability managers. The results also indicate that for sustainability managers whose social responsibility identity is higher than that of their firm, greenwashing has a significant association with lower satisfaction and job performance and higher intentions to leave. However, for managers whose social responsibility identity is lower than that of their firm, employer greenwashing had no effect on the sustainability managers' attitudes, even though they recognized their own poor job performance. The cumulative effect may be a situation in which managers in the best position to enhance a firm's CSR leave the firm, and vice versa. [ABSTRACT FROM AUTHOR]

This study examined the relationships among analytical, practical, and emotional intelligence (EI) and five dimensions of managerial behavior. Two sets of hypotheses were tested: one set examined the relationship of each of the three types of intelligence with each of the behavioral dimensions; the second set examined the unique contribution of each type of intelligence to the prediction of each dimension. Twenty-three one-day assessment center sessions, including tests and simulation exercises, were administered to 163 top managers in Poland. The behavioral dimensions of leadership, initiative, goal orientation, change orientation, and employee development were related to analytical intelligence and practical intelligence, but not to EI. These findings make unique contributions to understanding the relationships of types of intelligence and managerial behavioral dimensions. [ABSTRACT FROM AUTHOR]

Although flexibility has been considered critical in responding to uncertainty in a business environment, few studies have explored firms' flexibility in sustainable development. To understand the nature of firms that can respond better to uncertainty in their sustainable development practices, this study defines sustainable development flexibility and investigates the mechanism underlying its formation. The study proposes a conceptual framework on the interactions of managers' environmental attitude and cognitive style, as well as firms' information integration on sustainable development flexibility. A questionnaire survey was developed to test the corresponding hypotheses, and 241 valid responses were received from middle‐ and top‐level managers in Chinese firms. The results show that (a) the higher the manager's environmental attitude, the higher the firm's information integration and greater sustainable supply chain flexibility, and (b) the more intuitive the manager's cognitive style, the greater the impact of environmental attitude on sustainable development flexibility. [ABSTRACT FROM AUTHOR]

Research Question/Issue: Social norms theory suggests that people voluntarily defend social norms even when their economic interests are not directly affected by norm violations. On the basis of this theory, we posit that when managers seek personal gains at the expense of shareholders, independent directors may be motivated by social norms for fairness to prevent unfair outcomes. We conducted an experiment to investigate the roles of social norms for fairness in a board wherein insiders and uninformed independent directors simultaneously voted in favor of or against a project with either good or bad quality. Research Findings/Insights: Independent directors who valued higher levels of fairness norms were less likely to vote in favor of the project. This negative relationship was higher when insiders had poor reputations. However, insiders were inclined to vote in favor of the project, regardless of project quality. Furthermore, fairness norms had a double‐edged effect on board performance, which was dependent on project quality. Theoretical/Academic Implications: We adapt social norms theory to the board voting scene with features of group decision‐making and information asymmetry. We find that fairness norms may motivate independent directors to vote against the project. However, the norm heterogeneity of independent directors greatly reduces their bargaining power with insiders, which suggests that monitoring independent directors who are driven by fairness norms has little effect on the voting behavior of insiders. Practitioner/Policy Implications: For regulators and firms, we suggest that fairness norms should be treated as a two‐edged sword. The brightness (or darkness) of social norms depends on the trade‐off between gained fairness and loss of board performance. Governance mechanisms that can reduce information asymmetry and norm heterogeneity of independent directors may help maintain fairness in the board while reducing its negative effect on board performance. [ABSTRACT FROM AUTHOR]

Two studies examined the relationship between identification with a high-position group in organizational settings (managers) and bias toward immigrants. In Study 1, ( N = 182; N = 145), results showed positive relationships between identification with the managers' group and both in-group bias and prejudiced attitudes, indirectly through assimilation endorsement. In Study 2 ( N = 117), in addition to replicating the results of Study 1, we found a significant interaction, revealing that power moderated the link between identification with a high-position group and bias. Moderated mediation analysis indicated that linking managers' group identification to bias and prejudiced attitudes through assimilation was only significant for high perceived power. Results are discussed in light of interethnic ideologies and the social identity theory. Some practical implications are provided. [ABSTRACT FROM AUTHOR]

This study explores if the value priorities and their impact on future managers' attitudes towards environmental responsibilities vary with gender. While relevant prior studies mostly focus on gender‐based variations of individuals' personal values in developed economies, we concentrate on both personal values and pro‐environmental attitudes in an emerging economy. This study is built on MBA students (a proxy for future managers) in India since India is characterized as a male‐dominated society and a producer of larger number of MBA graduates. Overall, our results show that personal values and attitude towards environmental responsibilities do not vary significantly with gender. Only two values (among the 21 values) and one value type (out of 10 values) get significantly higher ranking from females compared with males. Further, although 'universalism' and 'benevolence' are found to have a statistically significant impact on respondents' attitude towards environmental responsibility, the latter is invariant to the respondents' gender. Our findings may indicate India's transformation from a male‐dominated society towards a more gender‐balanced society. These findings can be used to operationalize a pro‐environmental recruitment policy and to formulate strategies to improve female participation in MBA cohorts of business schools. [ABSTRACT FROM AUTHOR]

Public managers' decisions are affected by cognitive biases. For instance, employees' previous year's performance ratings influence new ratings irrespective of actual performance. Nevertheless, experimental knowledge of public managers' cognitive biases is limited, and debiasing techniques have rarely been studied. Using a survey experiment on 1,221 public managers and employees in the United Kingdom, this research (1) replicates two experiments on anchoring to establish empirical generalization across institutional contexts and (2) tests a consider‐the‐opposite debiasing technique. The results indicate that anchoring bias replicates in a different institutional context, although effect sizes differ. Furthermore, a low‐cost, low‐intensity consider‐the‐opposite technique mitigates anchoring bias in this survey experiment. An exploratory subgroup analysis indicates that the effect of the intervention depends on context. The next step is to test this strategy in real‐world settings. [ABSTRACT FROM AUTHOR]

Although multinational corporations (MNCs) invest considerable resources in sending managers on foreign assignments, too many managers report dissatisfaction with their postrepatriation careers, and a significant percentage leave the firm within a year. This failure to harness learning and develop a cadre of globally trained managers raises questions about the current objectives and strategies that drive the investment in expatriation. A study of managers who had recently completed their expatriate assignment points to underorganized home office operations, poorly defined mentor roles, and large gaps between managers' expectations and reality as key contributors to the problem. This paper calls for a strategic orientation toward managing the expatriate function and proposes a comprehensive configuration of processes, systems, and structures necessary for implementing new strategies for developing the next generation of globally trained managers. © 2009 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]

We analyze how the work ethic of managers impacts a firm's employment contracts, riskiness, growth potential, and organizational structure. Flat contracts are optimal for diligent managers because they reduce risk-sharing costs, but they attract egoistic agents who shirk and unskilled agents who add no value. Stable, bureaucratic firms with low growth potential are more likely to gain value from managerial diligence. Firms that hire from a virtuous pool of agents are more conservative in their investments and have a horizontal corporate structure. Our theory also yields several testable implications that distinguish it from standard agency models. [ABSTRACT FROM AUTHOR]

In order to establish a competitive advantage, firms must acquire or create resources at a price below their value in use. Absent pure luck, this requires managers to exercise foresight about a resource's future value and/or complementarities with pre-existing capabilities. This foresight grants managers the opportunity to exploit information asymmetries for personal gain as well as building organizational capabilities. Nevertheless, there is limited research on the extent of foresight or how managers use it. In our study of insider trading, we found that managers purchase stock well before breakthrough patents are filed. We argue for further research on the extent of managerial foresight and how it affects rent generation and appropriation. [ABSTRACT FROM AUTHOR]

This paper provides evidence that top managers have contrarian views on firm value. Managers' perceptions of fundamental value diverge systematically from market valuations, and perceived mispricing seems an important determinant of managers' decision making. Insider trading patterns shows that low valuation firms are regarded as undervalued by their own managers relative to high valuation firms. This finding is robust to controlling for noninformation motivated trading. Further evidence links managers' private portfolio decisions to changes in corporate capital structures, suggesting that managers try to actively time the market both in their private trades and in firm-level decisions. [ABSTRACT FROM AUTHOR]

This study investigates the relationship of strategic leadership behaviors with executive innovation influence and the moderating effects of top management team (TMT)'s tenure heterogeneity and social culture on that relationship. Using survey data from six countries comprising three social cultures, strategic leadership behaviors were found to have a strong positive relationship with executive influence on both product-market and administrative innovations. In addition, TMT tenure heterogeneity moderated the relationship of strategic leadership behaviors with executive innovation influence for both types of innovation, while social culture moderated that relationship only in the case of administrative innovation. [ABSTRACT FROM AUTHOR]

This research investigated how the ownership structure is related to the firm's overall compensation strategy. The findings extend previous research that focused primarily on CEO compensation strategy. We show that there are significant differences in the compensation practices that apply to all employees as a function of the ownership structure. The results show that for owner-controlled firms and owner-managed firms there is significant pay/performance sensitivity for all employees. In management-controlled firms, changes in pay are related to changes in size of the firm. These findings lead us to conclude that ownership structure not only affects upper management's pay, but also the pay of all employees through substantial differences in the firm's compensation practices. [ABSTRACT FROM AUTHOR]

This study helps to explain why some new ventures make strategic decisions more quickly than others. Drawing on life course theory and human capital theory, I develop a model of how entrepreneurs' individual characteristics affect new venture decision speed. I test the model using survey data from 98 Internet startups and their founder/managers. Results show that firms made faster decisions when they were managed by older entrepreneurs and by those with prior entrepreneurial experience. In addition, exploratory analyses indicating that fast decision-making firms were more likely to close may indicate that prevailing theory in this area is contextually limited. [ABSTRACT FROM AUTHOR]

The common folklore that giving options to agents will make them more willing to take risks is false. In fact, no incentive schedule will make all expected utility maximizers more or less risk averse. This paper finds simple, intuitive, necessary and sufficient conditions under which incentive schedules make agents more or less risk averse. The paper uses these to examine the incentive effects of some common structures such as puts and calls, and it briefly explores the duality between a fee schedule that makes an agent more or less risk averse, and gambles that increase or decrease risk. [ABSTRACT FROM AUTHOR]

We examine voting by a board designed to mitigate conflicts of interest between privately informed insiders and owners. Our model demonstrates that, as argued by researchers and the business press, boards with a majority of trustworthy but uninformed "watchdogs" can implement institutionally preferred policies. Our laboratory experiments strongly support this conclusion. Our model also highlights the necessity of penalties on insiders when there is dissension among board members. However, penalties for dissent appeared to have little impact on the experimental outcomes. [ABSTRACT FROM AUTHOR]

Executives often spend considerable time and energy trying to influence peers to support new initiatives (e.g., Conger, 1998; Enns, Huff, & Golden, 2001). That said, we know relatively little about how executives actually influence their peers. Using a sample of 132 executives, the present study found that finance executives differed the most from other executives in terms of the influence tactics and contexts used when influencing peers. Human resource executives also differed considerably from their counterparts in operations regarding influence tactics and contexts. Possible explanations, directions for future research, and implications for management are discussed. [ABSTRACT FROM AUTHOR]

Managers operate in a complex, uncertain environment and tend to form simplified models in order to cope with this environment and make competitive strategic decisions (i.e., cost leadership, differentiation, or focus). In this study, we use an experimental design to examine the strategic choice decision-making process in firms located in the United States and Japan. We develop several main-effect propositions regarding managerial selection of competitive strategies, depending on the competitive forces (buyer power, threat of substitutes, threat of new firm entry, and high intensity of rivalry) they are facing. We propose a main effect due to country of origin: Japanese managers prefer a cost-leadership strategy more than American managers do. We also propose several interaction effects regarding cross-national differences in strategy selection between Japanese and U.S. managers. To test our propositions, we collected experimental data from 316 U.S. executives and 459 Japanese executives. We assessed relative impacts of the competitive forces on strategic decision-making using a multilevel regression analysis. The research findings indicated that high buyer power and high substitution threat were associated with a preference for cost-leadership strategies, and Japanese managers were significantly more likely to prefer a cost-leadership strategy than U.S. managers. We also found that, under conditions of high buyer power, U.S. managers were less likely than Japanese managers to enter a market with a differentiation or focus strategy. We found little support for other interaction hypotheses, suggesting points of similarity between U.S. and Japanese managers. We conclude with a discussion of theoretical and managerial implications of our results. [ABSTRACT FROM AUTHOR]

Using a sample of 251 IPOs in the United Kingdom, this paper examines interlinks between executive and non executive characteristics, share ownership, and short-term performance measured in terms of share offer 'underpricing.' It argues that executives' power and previous experience directly affect ex ante choice of nonexecutive directors and their ownership interests in the firm. These endogenously developed governance factors may be used by IPO teams strategically to reduce the extent of underpricing. However, there is a selective response of investors to different board characteristics and share ownership structure. [ABSTRACT FROM AUTHOR]

We analyze a sample of 72 IPO firms that went public between 1992 and 1996 for which we have detailed proprietary information about the amount and cost of directors' and officers' (D&O) liability insurance. If managers of IPO firms are exploiting superior inside information, we hypothesize that the amount of insurance coverage chosen will be related to the post-offering performance of the issuing firm's shares. Consistent with the hypothesis, we find a significant negative relation between the three-year post-IPO stock price performance and the insurance coverage purchased in conjunction with the IPO. One plausible interpretation is that, like insider securities transactions, D&O insurance decisions reveal opportunistic behavior by managers. This provides some motivation to argue that disclosure of the details of D&O insurance decisions, as is required in some other countries, is valuable. [ABSTRACT FROM AUTHOR]

Guided by notions from the literature on organizational learning, this paper investigates how product line experimentation and organizational performance change across the careers of top managers. Its subjects are the studio heads who ran all the major Hollywood film studios from 1936 to 1965. The study found first, that product line experimentation declines over the course of executive tenures; second, that there is an inverse U-shaped relationship between top executive tenure and an organization's financial performance; and third, that product line experimentation is more likely to benefit financial performance late in top executives' tenures. These findings are consistent with a three-stage `executive life cycle'. During the early years of their tenures, top managers experiment intensively with their product lines to learn about their business; later on their accumulated knowledge allows them to reduce experimentation and increase performance; finally, in their last years, executives reduce experimentation still further, and performance declines. [ABSTRACT FROM AUTHOR]

This special issue deals with the question of how it is that, over time, some firms manage to become successful using their capabilities, while other firms do not. The articles examine the ways in which firm capabilities emerge, develop, and change over time, and the resulting effects on firm performance. Conceptual models and analyses based on empirical research deal with market entry and the evolution of firm capabilities, adaptation and change in capabilities, and heterogeneity of firm capabilities over time. Within these broad themes, specific topics include the role of' pre-entry experience and initial conditions, aspirations and learning, dynamic capabilities, technological change, products and markets, mergers and acquisitions, and managerial cognition. [ABSTRACT FROM AUTHOR]

This article addresses two fundamental questions about flexible scheduling: Do managers use ascriptive information in deciding which requests for flexible work scheduling to grant among employees? And, do employees comprehend this managerial bias in deciding whether to ask for flexible work arrangements? Study 1 found that managers were most likely to grant flextime to high-status men seeking flexible schedules in order to advance their careers. In contrast, flexible scheduling requests from women were unlikely to be granted irrespective of their job status or reason. In Study 2, we found that employees were unaware of these managerial biases: women assigned high-status jobs and requests for career advancement reasons were the most likely to think their requests would be granted, while men in the same scenarios were least likely to believe this. Organizational and policy implications are discussed. [ABSTRACT FROM AUTHOR]

The article focuses on the study of the nature of corporate social responsibility (CSR) in Saudi Arabia. The study performs demographic and organizational survey of attitudes of managers and non-traditional students (employees) toward CSR. It mentions that CSR is grouped into six categories including economic, legal, and ethical responsibilities, which are rated using a five-point Likert scale. Result shows that CSR in the country is labeled on environmentalism, legality, and voluntarism.

Although one might expect differences between manufacturing and service firms in pioneering advantages, the extent of these differences has not yet been investigated. This is the first cross-national study that compares such differences in nine countries/regions: the United States, the United Kingdom, Germany, Japan, China, Taiwan, Hong Kong, South Korea, and Singapore. We develop several hypotheses concerning the perceptions of managers of manufacturing firms and service firms regarding the benefits and post-entry risks of pioneering, and the cost and differentiation advantages accruing to the pioneering firm. We test the hypotheses with data from 2,419 firms representing all nine countries and both industrial sectors. We find that: (1) managers from all countries perceive pioneering to be associated with higher market share and/or profitability; (2) manufacturing firm managers perceive pioneering risks to be significantly more important than do service firm managers; (3) cost and differentiation advantages of pioneering are, for the most part, more significant to manufacturing than to service firm managers; (4) Western manufacturing firm managers perceive the cost advantages to be more important than Asian Pacific manufacturing firm managers. We conclude by presenting the managerial implications of our findings. [ABSTRACT FROM AUTHOR]

Working from the perspective of the resource-based view of strategy, this paper addresses whether academics, consultants, and other sources of general managerial prescriptions can affect firms' long-run rent streams. The answer is affirmative. To demonstrate this, I discuss the use of motivational techniques as a well-understood and common managerial choice that may affect a firm's chance of generating rents. This paper interprets extant empirical research on goal setting and discusses the conceptualization of temporal rent patterns. I build upon an empirical finding in goal-setting research to compare the temporal patterns of rents for managerial choices embedded in path-dependent vs. path-independent processes. [ABSTRACT FROM AUTHOR]

We examine whether mutual fund performance is related to characteristics of fund managers that may indicate ability, knowledge, or effort. In particular, we study the relationship between performance and the manager's age, the average composite SAT score at the manager's undergraduate institution, and whether the manager has an MBA. Although the raw data suggest striking return differences between managers with different characteristics, most of these can be explained by behavioral differences between managers and by selection biases. After adjusting for these, some performance differences remain. In particular, managers who attended higher-SAT undergraduate institutions have systematically higher risk-adjusted excess returns. [ABSTRACT FROM AUTHOR]

Objective: This study deploys an earnest effort to understand the factors that affect the managers involved in managing the portfolio of funding in companies. Capital structure decision is one of the crucial decisions that finance managers have to make. This study tries to identify a host of factors controlling the attitude of finance managers in choosing different sources of financing, as reflected in financials of respected companies. Design/methodology/approach: Based on the data available in different secondary sources (such as the financial statements published by the sampled companies), an exploratory form of research is applied here. The samples for the study are selected from companies which are listed in Dhaka Stock Exchange (DSE) under pharmaceutical, textile, and banking sectors. Different descriptive and inferential statistical tools are used to present the data and test relevant hypotheses by using statistical package for the social sciences. Findings: Based on the literature review, the study has identified a couple of factors affecting capital structure decision. These factors are replicated in selected Bangladeshi firms to understand their implications. Although the study fails to report any determinants having strong relationship which is statistically significant, the model passes goodness‐of‐fit test and residual analysis, which shows the presence of normality. Research limitations/implications: The findings of the study could not be generalized due to some inherent limitations of the research. The study only covers selective companies from three sectors, leaving others from the preview of analysis, which limits the scope of the study. However, the findings of the research could be helpful for individual firms to find their status in the recent trend of practicing capital structure decision; thereby they can adopt or revise their policy in this regard. Another major limitation of the study is that, it applies a quantitative form of analysis based on the data published in general purpose financial statements. It would be more beneficial if quantitative findings could be validated through qualitative analysis in order to bring data triangulation which is left for further study. Extending the analysis to cover all the firms listed in DSE can give a better outlook on capital structure issues in Bangladesh. Originality/value: This study has been conducted for the first time in Bangladesh, identifying determinants from different theories which may help the future researchers to extend the analysis. Thus, the study adds significant value to the current body of knowledge. [ABSTRACT FROM AUTHOR]

Research question/issue: This study examines whether there is decoupling between how firms communicate about corporate social responsibility (CSR) and what firms do in terms of CSR. We argue that this CSR decoupling is driven by the CEOs' cognitive biases. Specifically, we propose that overconfident CEOs increase CSR decoupling. Research findings/insights: We tested our arguments in a sample of S&P 500 firms for the period of 2006–2014. We find that CEO overconfidence is positively related to the decoupling between the optimistic tone of CSR reporting and the firm's actual corporate social performance. However, the board of directors mitigates the effect of CEO overconfidence on CSR decoupling when outside directors have CSR expertise and ownership incentives. Theoretical/academic implications: Previous studies have suggested that CSR decoupling is a function of opportunistic management that can be constrained by external monitoring. We examine CSR decoupling as a function of cognitive biases (such as overconfidence) that can be constrained by internal monitoring. Practitioner/policy implications: This study provides insights into the conditions when CSR information released by the firm is symbolic. Practitioners may prevent such symbolic CSR reporting by imposing effective oversight by the board of directors. [ABSTRACT FROM AUTHOR]

During the recession, the decline in home value and home ownership reduced the demand for ornamental plants, lawn and garden products, and related services, which resulted in significantly negative effect on the green industry revenues. Postrecession consolidation in the United States green industry has forced smaller firms to re‐evaluate their marketing strategies. New‐media marketing has gained attention as a relatively low‐cost and high‐exposure marketing strategy. This paper utilizes binary logit and interval censored regression to examine the use and the impact of social‐media marketing in the green industry. The analysis was based on primary data from a survey of US nurseries and garden centers. The findings reveal that the daily use of social‐media marketing is largely driven by the network effect and the managers' attitudes. They also indicate that the small‐sized firms receive higher returns from social media use in terms of increased sales compared with larger firms. [ABSTRACT FROM AUTHOR]

Questions of how and when managers can motivate the workforce of public organizations are fundamental for scholars and practitioners alike. A dominant assertion is that goal‐oriented leadership strategies, such as transformational leadership, foster public service motivation (PSM). However, existing studies rely on designs that are vulnerable to endogeneity and rarely investigate the scope conditions of the leadership‐PSM relationship. Combining a field experiment with 364 managers and surveys of their 3,470 employees, the authors show that transformational leadership and transactional leadership, when induced experimentally, do not have the claimed positive effect on PSM. In fact, the results indicate that goal‐oriented leadership can have demotivating effects when employee and organizational values are incongruent. Public managers should therefore carefully assess existing levels of value (in)congruence before implementing goal‐oriented leadership strategies, and—in case of value conflicts—seek to align perceptions of the desirable among members of the organization. [ABSTRACT FROM AUTHOR]

Public sector organizations concerned about gender inequality have increasingly sought to address the effect of implicit biases on merit‐based employment practices through bias training and affirmative action programs. Applying qualitative content analysis to interviews with 104 managers in three government agencies in which bias training and affirmative action were being implemented, the authors find that many managers acknowledge the existence of implicit biases and their potential to create unequal employment outcomes. However, this recognition of bias does not translate into support for affirmative action, which is seen by many managers to be an unacceptable violation of merit. The authors argue that implicit bias training and affirmative action are unlikely to create a cultural "tipping point" to progress gender equality without a critical reassessment of merit. [ABSTRACT FROM AUTHOR]

Organizational studies have widely debated the relationship between job satisfaction and job performance. Some papers have dealt with managerial satisfaction and businesses' performance adopting agency theory to interpret the results. However, no studies have yet considered the relationship between the satisfaction levels of an environmental manager and corporate environmental performance. This paper thus analyses the role played by the environmental manager's satisfaction in enhancing corporate environmental performance and reputation. The paper uses data from a survey of 412 Eco Management and Audit Scheme registered organizations. The results show a positive relationship between managerial satisfaction and environmental performance, whereas no such positive relationship was found when considering eco‐innovation performance. In addition, the environmental manager's satisfaction has a positive and indirect influence on the corporate environmental reputation. These results contribute to the literature on agency theory and aim to extend the debate between job satisfaction and job performance to the sustainable business field. [ABSTRACT FROM AUTHOR]

Organizations increasingly implement web‐enabled ideation systems to involve the diverse crowd of distributed employees in ideation. While recent studies have started to investigate which types of data generated in these systems can support managers in their selection decisions, less attention has been placed on the crowd of contributors and the idea itself. Building on team diversity and information processing literatures, this study extends current research by examining how contributors' knowledge diversity, the framing of their feedback (positive and negative), and the degree of idea elaboration influence selection decisions in web‐enabled ideation systems. Understanding the role of contributors is arguably important considering that the increasing integration of community functionalities enables employees to participate not only by generating ideas, but also by offering different types of knowledge and feedback to others' ideas, thus giving rise to new forms of online participation. At the same time, individuals' abilities and efforts invested in the formulation of ideas are claimed to influence how managers evaluate them, an aspect that has received limited attention in these online settings. This study is based on a rich and extensive data set of 726 ideas and 2925 comments submitted by employees to an online ideation platform of a large European firm over the course of 16 months. The findings reveal that different forms of contributors' diversity and the framing of their feedback have differential effects on idea selection. Ideas attracting contributors from different functional domains are more likely to be selected by managers, while geographic diversity does not have a significant effect on selection. Moreover, feedback that is negatively framed tends to decrease the selection chances of an idea. Finally, ideas with an optimal degree of elaboration are more likely to be selected by managers for funding. Implications for both innovation management research and practitioners are discussed. [ABSTRACT FROM AUTHOR]

Most theories of corporate governance argue that chief executive officers (CEOs) take less risk as they near the end of their career, and therefore are less likely to make major investments. This prediction is based on decisions related to firm‐specific benefits; however, it may not be generalizable to decisions that involve broad societal goals. In terms of societal investments, CEOs with a longer time perspective may be more likely, rather than less likely, to invest. In this paper, we argue that a CEO's future time perspective is fostered by shorter career horizons, longer tenures, higher organizational ownership and less short‐term compensation. We test these hypotheses on 150 observations from the US investor‐owned electric power generation sector over a three‐year unbalanced sample (64.3% of the population). We applied random‐effects generalized least squares (GLS) estimations to test our hypotheses, and found support for three out of four hypothesized relationships. [ABSTRACT FROM AUTHOR]

In this paper we show that even a strongly efficient stock market is, by itself, insufficient to discipline managers who may hold incorrect beliefs about investors' behavior and their decision rules. Instead of disciplining the managers, the stock market may generate prices that reinforce these incorrect beliefs. When this happens, the disciplining of managers must be accomplished through other mechanisms, such as through markets for managerial labor, mergers and takeovers, the financial press, and education. These alternative mechanisms may produce slower disciplinary reactions than the stock market. Several important classes of accounting phenomena seem consistent with a failure of the stock market to discipline managers promptly. We present in detail how the apparent failure of managers to make cashflow-maximizing LIFO-FIFO choices in a timely fashion is consistent with this theory. Our approach is also applicable to other financial reporting conundrums in which adverse managerial and stock market reactions were predicted in response to Financial Accounting Standard No. 2 (accounting for research and development outlays), Standard No. 8 (foreign exchange translation), and Standard No. 19 (accounting for oil and gas exploration costs), each of which changed firms' accounting incomes but not their cash flows. Classical Arrow-Debreu models, as well as the rational expectations models, assume that firms are run by managers who seek to maximize the "market value" of the firm. Since the main purpose of such models is to examine the Pareto efficiency of wealth allocations by the stock market under the presumed behavior of management, this assumption has been useful in bypassing the extremely difficult problems of managerial compensation contracts and motivation. Formal examination of these contracts in the agency theory literature (e.g., Mirrlees [1976] and Holmstrom [1979]) has concluded that in the presence of moral hazard, appropriate incentives are provided to... [ABSTRACT FROM AUTHOR]

This paper describes methods for estimating the value of the total annual compensation of top corporate executives. These methods refine those originated by Burgess [1963], Lewellen [1968], and Masson [1969]. Measures of executive compensation are relevant in addressing three current issues. First is the extent to which the compensation effects of different accounting alternatives influence executives' preferences over proposed changes in accounting regulations and their actual selection of financial reporting techniques. Second is whether compensation effects of new financial reporting standards induce managers to change their production and investment decisions. Third is the impact of a change in the terms of executives' compensation contracts on their decisions. [ABSTRACT FROM AUTHOR]

This study used a sample of 405 managers and their spouses from twenty Fortune 500 multinational corporations to document the availability of American managers for international assignments. Aside from their spouses' feelings about international relocation, managers' willingness to relocate internationally was also predicted by their own attitudes about moving in general and their willingness to relocate domestically. Implications for human resource policy suggest that corporations must increasingly focus on human resource policies targeted toward the spouse. Results suggested that monitoring managers' intentions to relocate will enhance the organization's ability to adequately staff international sites with experienced managers. INSET: Table 1: Hypotheses about Factors Affecting Willingness to .... [ABSTRACT FROM AUTHOR]