Business Commons^™

Effects Of Unorthodox Ceo Behaviors, Peter Heinzerling

Senior Honors Projects

By investigating erratic activities performed by CEO Elon Musk, we want to examine the relationship between unorthodox CEO activities and the effects that these activities have on the company internally. We want to know how these actions affect employees, which would then impact the financial performance of said companies. While there are numerous examples of Musk saying and doing crazy things, we primarily focused on his involvement in the rise of Dogecoin. This case study serves as an excellent example of Musk’s odd behavior as CEO by continuously influencing the price of a cryptocurrency that is not backed by any …

Ceo Characteristics That Lead To Extreme Outperformance: A Statistical Analysis Of William Thorndike’S “The Outsiders”, William Turner

CMC Senior Theses

What makes a high-performing CEO? What CEOs should you invest in? These are the questions that the Board of Directors, headhunters, academics, and investors all seek the answer to. This paper explores the answer to this question by examining CEO performance at the extremes. Inspired by the work of William N. Thorndike’s “The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success,” this study expands upon his methodology, employing a statistical approach to analyze a broader dataset of CEOs over the past thirty years. Using a logit model of hyper-outperforming versus hyper-underperforming CEOs, it assesses the …

Karen Burgess Remembered: Thoughts And Memories From Mda Leaders

The Journal of the Michigan Dental Association

This article is a collection of memories and remembrances of Karen Burgess, who served as Michigan Dental Association CEO/executive director from 2014 until her death on July 18, 2023.

Ceo Political Ideology And Risk Factor Disclosure, Jiwoo Seo

Open Access Theses & Dissertations

I examine whether and how CEO political ideology affects risk factor disclosure. Since 2005, the Securities and Exchange Commission (SEC) has required U.S. firms to disclose risk factors in their 10-K filings. While prior studies document that this required disclosure increases the information content of financial reports, there is limited evidence on how Chief Executive Officer (CEO) personality traits influence risk factor disclosure. In this paper, I focus on CEOs' political ideology to proxy for their personality traits. Using CEOs' personal political contributions data to capture their political ideology, I find that firms with Republican-leaning CEOs provide less risk factor …

What’S Inside The Mind Of A Ceo? The Effects Of Discretionary Slack Resources On R&D Investment, Seunghye Lee, Won-Yong Oh, Young K. Chang

Management, Entrepreneurship and Technology Faculty Publications

This study investigates the effects of discretionary slack resources on a firm’s R&D investment. Specifically, we examine whether and how a CEO’s psychological traits play a role in the relationship between discretionary slack and R&D investment. Using a panel sample from U.S. manufacturing firms in 2006–2010, we found that slack resources lead to an increase in R&D intensity. Furthermore, this positive effect is stronger when CEOs have a strong promotion focus and perceive an addressable negative attainment discrepancy. Thus, our findings show how (a) the level of discretionary slack and (b) CEOs’ promotion focus and aspiration level jointly shape R&D …

Do Ceo Gratification Preferences Influence Accounting Choices Near Retirement?, Nicholas Wilson

College of Business: Dissertations, Theses, and Student Research

CEOs near retirement are less motivated to act in shareholders' best interests than those planning to remain indefinitely; this is the horizon problem. Financial reporting that personifies the horizon problem includes an abrupt reduction in discretionary spending and an increase in current accounting earnings; this abrupt change in reporting is potentially detrimental to long-term gains. Gratification preference, defined by observable tendencies, is a personal characteristic reflecting one's prior life experiences and environments. This study offers an archival measure of these gratification preferences and examines whether these preferences mitigate or exacerbate the CEO horizon problem. The results suggest that discretionary accounting …

Executive Option Mix And Firm Litigation Risk, Andrew Cohen

CMC Senior Theses

Compensating executives with stock options creates incentives for executives and aligns their goals with shareholders. When examining specific components of equity-based compensation, stock options have a larger incentive effect on executives compared to stock awards as options are priced as a function of stock volatility. Since the option incentive effect is more profound than the stock incentive effect, executives may take on more risk. The relationship between firm risk and litigation can be demonstrated by the pricing of directors’ and officers’ liability insurance, which protects them from the costs of litigation. The purpose of this study is to examine the …

Ceo Characteristics And Compensation In Fortune 100 Companies, Adam C. Carroll

Theses & Dissertations

The existing literature on CEO compensation places heavy emphasis on the interrelationships between educational background and personal experiences of a CEO and how it affects a firm’s performance and, in-turn, how the firm’s performance impacts the CEO compensation. However, there is sparse research on the direct impact that socio-demographic factors and other variables have on CEO compensation. This dissertation’s aim is to identify if socio-demographic factors play a role in how a firm compensates its CEOs by using information gathered from the CEOs of the top Fortune 100 companies.

Given the non-random and limited sample, the primary research methods in …

Exploring The Divergent Social Dimensions Of Ceo Narcissism On Internal Firm Outcomes, Andrew Brandon Blake

Graduate Theses and Dissertations

In this study, I move away from the common clinical conception of narcissism in management to a novel two-dimensional concept and measurement of narcissism. Because these dimensions are shown to have divergent motives, goals, social strategies, and behaviors, I theorize that these differences in narcissism will have diverging effects on the firm. Then, I shift the conceptual focus of CEO narcissism research from the CEO as an agentic decision-maker seeking external praise for firm consequences to an implicit social strategist who prioritizes short-term interpersonal interactions in service of narcissistic supply. I examine four internal outcomes likely to be influenced by …

Executive Peer Advisory Groups: Who They Are? What Are Their Benefits? Why Do Members Join And Stay?, Andrew Feghali

Dissertations

Executive peer advisory groups (EPAGs) are exclusive organizations in which chief executive officers (CEOs) and presidents of businesses can problem solve business challenges, discuss business strategies, share best practices, and solve critical growth and performance issues. Executive peer advisory groups are based on the premise that the collective experience and resources of peer groups empower like-minded executives to solve challenges more effectively and more rapidly than they could do on their own. A key component of EPAGs is the forum, in which six to 16 members meet, typically monthly, in small-group sessions to function as each other’s personal advisory boards. …

Do Chief Executive Officers With Higher Compensation Assume More Innovative Risk Within Their Firms? Unearthing The Relationship Between Chief Executive Officer Compensation And Firm Innovation Levels: An Analysis Of S&P 500 Companies, Hailey Kleban, Abhay Bhandari

Senior Honors Papers / Undergraduate Theses

Throughout the COVID-19 pandemic, executive compensation arose at a rapid scale — with many in the labor force displaced or facing unemployment, many questioned how the excessive compensation packages of Chief Executive Officers (CEOs) reflected in actual firm performance. However, executive compensation has been a mainstay topic in academic literature. Researchers have attempted to unearth the exponentially growing paychecks or the link between compensation and other firm factors (market performance, employee satisfaction, CEO perception, etc.).

This study aims to examine the relationship between S&P 500 CEO compensation and the innovation levels of their firms; through this, we hope to understand …

When Ceo And Board Chair Are In Conflict: A Resource Dependence Perspective, Rawia Ahmed, Randika Eramudugoda, M. Fernanda Wagstaff

All Works

The board of directors serves two functions in the organization: monitoring and resource provision. Agency theory mainly addresses the former, while resource dependence theory focuses on the latter. However, these theories consistently assume that board members are not only able but also consistently willing to fulfill their roles. From a resource dependence perspective, this means that board members are generally inclined to share their resources (information, social and political connections, and functional experience) with the CEO. We challenge this assumption by postulating that in the context of dyadic conflict between the CEO and board chair, these resources will not be …

How Decision Makers’ Career Histories Impact The Gender Diversity Of The Ceo Successor Candidate Pool, Andre G. Havrylyshyn

Theses and Dissertations

Scholars have explored when/why women are chosen as CEOs, and what factors explain the presence of women in the TMT, but little is known about when/why firms have women executives in their internal CEO successor candidate pool. This omission is consequential, since there are firm performance benefits to having a woman CEO who is an internal hire, and because being a CEO successor candidate helps ensure a woman executive has had skill-building opportunities that will help her thrive when she becomes CEO. To address this, my dissertation explores two research questions. First, when and why do women directors positively impact …

Applied Statistical Models For Evaluating Firm Operating Performance And Investment Returns, Christopher Chen

The Yale Undergraduate Research Journal

This paper investigates the extent to which CEO, industry, firm, year, corporate parent, and business segment effects contribute to variation in the performance of public US companies classified by NAICS industry codes between 2010-2018. Applying several statistical models, the paper finds that 32.9% of segment profit variation is associated with business segment effects with negligible year effects (0.11%), similar to the findings of prior literature. This analysis also finds that corporate parent membership plays a larger role and industry and CEO effects play a smaller role in profit variation than previously suggested. These results have potential implications for the fields …

Hawkish Or Dovish: The Effect Of Female Ceo Leadership On Strategic Conformity, Organizational Innovation And Strategic Change, Hazel Husne Dadanlar

Theses and Dissertations

The U.S. female labor market participation rate has significantly improved in the last 50 years (Bureau of Labor Statistics, 2007). Along with the broader female labor participation rate, the level of female representation at the executive and director-level positions has shown some improvement in the last 24 years, albeit at a much slower pace than it has been in recent years (Pew Research Center Report, 2018). For example, while the number of female Chief Executive Officers (CEOs) leading Fortune 500 companies was zero in 1995, it rose by 7.4% by 2020. Despite some improvement, a mere 7.4% increase …

Non-Profit Organizations And Ceo Job Satisfaction, Dana Awad

Major Papers

This major research paper will examine the relationship between the job satisfaction of non-profit organization Chief Executives (CEOs) and characteristics of individual demographics, compensation, and organizational culture. The main purpose of this study is to examine the techniques in improvement of the productivity of the employee by investigating the factors that would lead to job satisfaction. Using data from the 2016 BoardSource governance survey that resulted in the 2017 Leadership with Intent report, this study reports on data collected from the survey of 1,759 CEOs. Using correlational and regression analyses, five hypotheses are examined related to CEO gender and age, …

Ceo Political Ideology: Implications For Firm Innovation, Samira Fallah

LSU Doctoral Dissertations

In this dissertation, I examine the influence of CEO political ideology on firm’s innovation strategy and outcomes. In my theorizing, I draw on upper-echelons theory that underscores the role of executives’ personal orientations on their decisions as well as the scholarship in political psychology that demonstrates the different values and psychological needs of liberals and conservatives. Given liberals’ lower need to manage uncertainty and their openness to new experiences, I propose that a firm with a more liberal CEO is likely to develop more innovations, pursue exploratory innovations and develop innovations with extreme quality (high and low). I also build …

An Examination Of Optimal Level Of Ceo Narcissism: Why, How, And When Narcissism Impacts Firm Performance, Scott Boswell

Dissertations

Chief Executive Officers (CEOs) may have narcissistic tendencies that impact the firm and its performance. We explore the definition of narcissism, how it is measured, and when it might be optimal or harmful to the firm’s performance. Leaders exhibiting higher scores on one or more Dark Triad traits often are viewed negatively both inside and outside the firm. Should such negative perceptions disqualify a leader who displays a measure of a Dark Triad trait? This research answers the primary question, is there an optimal level of CEO narcissistic traits and if so, are there moderating factors that impact the level? …

Cfo Promotion-Based Incentives And Earnings Management, Ruonan Liu, Steve Lin, Changjiang Wang

Eberhardt School of Business Faculty Articles

This study examines whether CFO promotion-based incentives induce opportunistic reporting activities. We find that CFO promotion-based incentives, measured by the pay gap between the CEO and the CFO, are positively associated with accruals management and accounting misconduct in the pre-SOX period and the probability of meeting or beating analysts’ forecasts in both the pre- and post-SOX periods. Further analysis shows that CFO promotion-based incentives are negatively associated with real earnings management in both the pre- and post-SOX periods. In addition, we find some evidence that the association between CFO promotion-based incentives and opportunistic reporting activities is stronger before CEO turnovers. …

Shah-Dissertation2020-Humancapitalofupperechelons, Tushar R. Shah

Management Dissertations

My dissertation studies strategic change in the context of digital transformation and the role of organization’s upper echelons (specifically the human capital of TMTs and CEOs) in predicting digital transformation. I concur with the prevalent belief that digital transformation is the fourth industrial revolution. It is already disrupting several businesses and business models as a result of which existing models of strategic change may have to be modified to explain these drastic transformations. I begin with defining the domain of strategic change as experienced by organizations when they intend to or are undergoing digital transformation. To support my theoretical assertions, …

Metacritiques Of Upper Echelons Theory: Verdicts And Recommendations For Future Research, Brett H. Neely Jr., Jeffrey B. Lovelace, Amanda P. Cowen, Nathan J. Hiller

Department of Management: Faculty Publications

After more than 35 years, Hambrick and Mason’s upper echelons theory (UET) stands as one of the most influential perspectives in management research. However, as the literature and its attendant reviews have become more numerous and specialized, discussion of the fundamental conceptual and methodological critiques leveled against research utilizing the UET perspective has grown fragmented. As such, the first aim of the present review is to identify and synthesize a set of common critiques levied against UET research. In doing so, we unpack important nuance within each critique while establishing a common vocabulary to facilitate greater consistency in how these …

Shattering Glass Ceilings: Where Are All Of The Women In Finance?, Rebecca Schubach

Business and Economics Honors Papers

At a time when women are equally represented in professional fields such as medicine and academia, the finance industry is still facing a lack of gender diversity, most notability at the C-Suite level. Statistics on the paucity of women paint a bleak picture, despite the fact that women are awarded majority of undergraduate and graduate degrees in the United States, a reversal from just one generation ago. This begs the question, what is deterring women from a career in finance? Are compensation discrepancies at play? This paper seeks to examine if being a female truly penalizes a woman in regards …

An Interview On Leadership With Al Carey, Ceo, Pepsico Beverages, Paul T. Barrett, James C. Haug, John N. Gaskins

Southern Business Review

Paul T. Barrett, PhD, CPA, is dean and professor of business for the College of Business and Economics, Longwood University, Farmville, VA 23909.

James C. Haug, DBA, is associate professor of management, Longwood University, College of Business and Economics, Farmville, VA 23909.

John N. Gaskins, PhD, currently serves as associate professor of marketing and retailing, Longwood University, College of Business and Economics, Farmville, VA 23909.

Problem-Solving Or Self-Enhancement? A Power Perspective On How Ceos Affect R&D Search In The Face Of Inconsistent Feedback, Radina Blagoeva, Tom J. M. Mom, Justin J. P. Jansen, Gerard George

Research Collection Lee Kong Chian School Of Business

Firms consider multiple reference points simultaneously to assess performance, yet often these referents may be inconsistent in signaling success or failure. Consequently, decision makers use two contrasting decision rules when responding to inconsistent feedback: problem-solving or self-enhancement. So far, disparate theoretical logics and mixed evidence has limited our understanding about when decision makers may shift their attention from positive to negative aspects of inconsistent feedback or vice versa, and may increase or decrease their R&D search. We examine how different types of CEO power explain why some firms may respond to inconsistent feedback, i.e. positive performance feedback and negative prospects, …

Ceo Personality And Market Perceptions, Center For Executive Succession

Research Briefs

CEOs display their personality traits through their choices of words and phrases in unscripted speech. • Investors view firms as less risky when CEOs are high in conscientiousness, and low in both neuroticism and extraversion” • Returns on risk are higher for firms whose CEOs display higher levels of conscientiousness, and low levels of neuroticism and extraversion.

Ceo Characteristics And Stakeholder Strategy, Center For Executive Succession

Research Briefs

Differences in stakeholder strategy across companies are related to CEOs’ focus on promotion (how things could be) versus prevention (how things should be) • Promotion-focused CEOs engage in more socially focused initiatives. Prevention-focused CEOs engage in more governance focused initiatives and are more open to governance-based activism. • CEO promotion and prevention focus were related to identified strengths in these areas but did not reliably reduce the number of areas of concern.

Escalating Board Commitment To Poorly-Performing Ceo Hires, Center For Executive Succession

Research Briefs

Directors who served on the board when a CEO was hired are more likely to remain committed to that CEO following poor firm performance. • For every one hiring director remaining on the board, poorly performing CEOs are 25% more likely to be retained and receive a 25% higher change in pay. • These effects are weaker for more experienced boards, indicating experience reduces the tendency to overcommit to their hand-picked CEOs.

Building Renewed Relevance: Portraits Of Ceos Rebranding Iconic Nonprofit Organizations, Helen A. Lowman

Antioch University Dissertations & Theses

In the United States, we often refer to the social sector as one leg of a three-legged stool. The private and public sectors support the other two legs. The social sector made up of nonprofit, nongovernmental, and charity organizations, contributes to the development of American society by focusing on social good rather than the desire to make profit. For decades, the sector has functioned as the social conscience of our society. However, many iconic, legacy nonprofits have struggled to keep their relevance in today’s world: their creation tied to a past societal problem, their mission and brand no longer germane …

A Third Dimension In The Mirror? How Senior Managers Design Products And Organizations, Norbert Bach, Peter Galvin

Research outputs 2014 to 2021

Individual CEO characteristics may affect architectural choices through the application of managerial discretion. Systems such as organizations and their products are not purely driven toward modularity because of external forces. Individual CEO characteristics may constitute an additional dimension to established mirroring considerations that impacts both the choice of architecture and the correspondence between product and organization architectures.

Airport Ceos And The Decentralized System Of Airports: A Case Study, Marjan Mazza

Publications

The job of the airport CEO is complex with responsibility for the security and safety of a large and dynamic facility and, yet the FAA does not have regulatory qualification and performance standards for the position. The purpose of this qualitative multi-case study was to explore the primary attributes that could be the leading indicators in the event national standards for the hiring of airport CEOs are pursued at major commercial airports. The guiding conceptual framework of the study was to combine competency with the concept of training and development. Airport CEOs from six airport facilities were interviewed, and an …