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Full-Text Articles in Business

Optimal Ceo Compensation With Search: Theory And Empirical Evidence, Melanie Cao, Rong Wang Oct 2013

Optimal Ceo Compensation With Search: Theory And Empirical Evidence, Melanie Cao, Rong Wang

Research Collection Lee Kong Chian School Of Business

We integrate an agency problem into search theory to study executive compensation in a market equilibrium. A CEO can choose to stay or quit and search after privately observing an idiosyncratic shock to the firm. The market equilibrium endogenizes CEOs’ and firms’ outside options and captures contracting externalities. We show that the optimal pay-to-performance ratio is less than one even when the CEO is risk neutral. Moreover, the equilibrium pay-to-performance sensitivity depends positively on a firm's idiosyncratic risk and negatively on the systematic risk. Our empirical tests using executive compensation data confirm these results.


The Instrumental And Symbolic Dimensions Of Organisations' Image As An Employer: A Large-Scale Field Study On Employer Branding In Turkey, Greet Van Hoye, Turker Bas, Saartje Cromheecke, Filip Lievens Oct 2013

The Instrumental And Symbolic Dimensions Of Organisations' Image As An Employer: A Large-Scale Field Study On Employer Branding In Turkey, Greet Van Hoye, Turker Bas, Saartje Cromheecke, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Research on recruitment and employer branding has typically been situated in Western countries with predominantly individualistic cultures. The present study investigates the instrumental-symbolic framework for studying organisations' image and attraction as an employer in a non-Western collectivistic culture. In a large nationwide sample of Turkish university students, both instrumental (working conditions) and symbolic image dimensions (competence) were positively related to organisational attractiveness. Moreover, symbolic traits explained significant incremental variance beyond instrumental attributes and accounted for a greater amount of predictable variance. In addition, organisations were better differentiated from each other on the basis of symbolic image dimensions (sincerity and innovativeness) …


Alternative Predictors For Dealing With The Diversity-Validity Dilemma In Personnel Selection: The Constructed Response Multimedia Test, Britt De Soete, Filip Lievens, Janneke Oostrom, Lena Westerveld Sep 2013

Alternative Predictors For Dealing With The Diversity-Validity Dilemma In Personnel Selection: The Constructed Response Multimedia Test, Britt De Soete, Filip Lievens, Janneke Oostrom, Lena Westerveld

Research Collection Lee Kong Chian School Of Business

In the context of the diversity-validity dilemma in personnel selection, the present field study compared ethnic subgroup differences on an innovative constructed response multimedia test to other commonly used selection instruments. Applicants (N=245, 27% ethnic minorities) for entry-level police jobs completed a constructed response multimedia test, cognitive ability test, language proficiency test, personality inventory, structured interview, and role play. Results demonstrated minor ethnic subgroup differences on constructed response multimedia test scores as compared to other instruments. Constructed response multimedia test scores were related to the selection decision, and no evidence for predictive bias was found. Subgroup differences were also examined …


Do Candidate Reactions Relate To Job Performance Or Affect Criterion-Related Validity? A Multistudy Investigation Of Relations Among Reactions, Selection Test Scores, And Job Performance, Julie Mccarthy, Chad H. Van Iddekinge, Filip Lievens, Mavis Mei-Chuan Kung, Evan F. Sinar, Michael A. Campion Sep 2013

Do Candidate Reactions Relate To Job Performance Or Affect Criterion-Related Validity? A Multistudy Investigation Of Relations Among Reactions, Selection Test Scores, And Job Performance, Julie Mccarthy, Chad H. Van Iddekinge, Filip Lievens, Mavis Mei-Chuan Kung, Evan F. Sinar, Michael A. Campion

Research Collection Lee Kong Chian School Of Business

Considerable evidence suggests that how candidates react to selection procedures can affect their test performance and their attitudes toward the hiring organization (e.g., recommending the firm to others). However, very few studies of candidate reactions have examined one of the outcomes organizations care most about: job performance. We attempt to address this gap by developing and testing a conceptual framework that delineates whether and how candidate reactions might influence job performance. We accomplish this objective using data from 4 studies (total N = 6,480), 6 selection procedures (personality tests, job knowledge tests, cognitive ability tests, work samples, situational judgment tests, …


Changing Things Up In Recruitment: Effects Of A 'Strange' Recruitment Medium On Applicant Pool Quantity And Quality, Saartje Cromheecke, Greet Van Hoye, Filip Lievens Sep 2013

Changing Things Up In Recruitment: Effects Of A 'Strange' Recruitment Medium On Applicant Pool Quantity And Quality, Saartje Cromheecke, Greet Van Hoye, Filip Lievens

Research Collection Lee Kong Chian School Of Business

In a field experiment, we investigated the impact of a 'strange' recruitment medium on the quantity and quality of the applicant pool. Recruiting through an unusual medium (i.e., postcard) was associated with higher applicant pool quantity, as compared to a more frequently used medium (i.e., e-mail). With respect to quality, applicants recruited through the strange medium were higher educated. A follow-up questionnaire confirmed that the media were perceived to differ in strangeness, not in media richness or credibility. These results suggest that 'changing things up' in recruitment by employing strange recruitment media can positively affect key recruitment outcomes.


Personality Across Working Life: The Longitudinal And Reciprocal Influences Of Personality On Work, Stephen A. Woods, Filip Lievens, Filip De Fruyt, Bart Wille Jul 2013

Personality Across Working Life: The Longitudinal And Reciprocal Influences Of Personality On Work, Stephen A. Woods, Filip Lievens, Filip De Fruyt, Bart Wille

Research Collection Lee Kong Chian School Of Business

Duplicate record, see https://ink.library.smu.edu.sg/lkcsb_research/5709/. This paper focuses on the role of personality at different stages of people's working lives. We begin by reviewing the research in industrial, work, and organizational (IWO) psychology regarding the longitudinal and dynamic influences of personality as an independent variable at different career stages, structuring our review around a framework of people's working lives and careers over time. Next, we review recent studies in the personality and developmental psychology domain regarding the influence of changing life roles on personality. In this domain, personality also serves as a dependent variable. By blending these two domains, it …


Pay Satisfaction And Work-Family Conflict Across Time, Devasheesh P. Bhave, Amit Kramer, Theresa M. Glomb Jul 2013

Pay Satisfaction And Work-Family Conflict Across Time, Devasheesh P. Bhave, Amit Kramer, Theresa M. Glomb

Research Collection Lee Kong Chian School Of Business

On the basis of justice and exchange theories, the authors propose that employees offset their levels of work-family conflict (WFC) with their levels of pay satisfaction. Results based on two waves of data indicate that pay satisfaction has a negative relationship with WFC after controlling for actual pay and other work-related and family-related variables. Analysis of pay satisfaction dimensions reveals that satisfaction with benefits and pay structure are negatively related to WFC, whereas satisfaction with pay level and pay raise are not. Number of dependents and level of education moderate the relationship between pay satisfaction and WFC; specifically, having more …


Personality Across Working Life: The Longitudinal And Reciprocal Influences Of Personality On Work, Stephen A. Woods, Filip Lievens, Filip De Fruyt, Bart Wille Jul 2013

Personality Across Working Life: The Longitudinal And Reciprocal Influences Of Personality On Work, Stephen A. Woods, Filip Lievens, Filip De Fruyt, Bart Wille

Research Collection Lee Kong Chian School Of Business

This paper focuses on the role of personality at different stages of people's working lives. We begin by reviewing the research in industrial, work, and organizational (IWO) psychology regarding the longitudinal and dynamic influences of personality as an independent variable at different career stages, structuring our review around a framework of people's working lives and careers over time. Next, we review recent studies in the personality and developmental psychology domain regarding the influence of changing life roles on personality. In this domain, personality also serves as a dependent variable. By blending these two domains, it becomes clear that the study …


Getting What You Need: How Reputation And Status Affect Team Performance, Hiring, And Salaries In The Nba, Gokhan Ertug, Fabrizio Castellucci Apr 2013

Getting What You Need: How Reputation And Status Affect Team Performance, Hiring, And Salaries In The Nba, Gokhan Ertug, Fabrizio Castellucci

Research Collection Lee Kong Chian School Of Business

We study how the reputation and status of resource providers affect the two organizational outcomes of product quality and revenues, hiring decisions, and prices paid to resource providers. We argue that reputation and status have different effects on outcomes: reputation has a stronger effect on product quality, and status has a stronger effect on revenues. Building on this, we argue that actual quality mediates the effect of reputation on revenues more than the effect of status on revenues. Moreover, reputation and status have different effects on how organizations acquire resources: when their product quality is low relative to their aspiration …


Assessment Centers And The Measurement Of Personality, Neil D. Christiansen, Brian J. Hoffman, Filip Lievens, Andrew B. Speer Jan 2013

Assessment Centers And The Measurement Of Personality, Neil D. Christiansen, Brian J. Hoffman, Filip Lievens, Andrew B. Speer

Research Collection Lee Kong Chian School Of Business

Although personality constructs are now widely accepted as being important for understanding work behavior, self-report personality tests as a method of assessment are not without their critics (e.g., Morgeson et al., 2007). Whether misguided or not, concerns persist regarding the validity of these measures and the issue of applicant faking has yet to be fully resolved (Tett & Christiansen, 2007). Moreover, applicant reactions tend to be less favorable for personality inventories than many other assessments commonly used in employment settings (Hausknecht, Day, & Thomas, 2004). To some, self-report inventories may be a poor way to assess personality traits, and yet …