Business Commons^™

Macroeconomic Fluctuations As Sources Of Luck In Ceo Compensation, Hsin-Hui Chiu, Lars Oxelheim, Clas Wihlborg, Jianhua Zhang

Business Faculty Articles and Research

Macroeconomic fluctuations in interest rates, exchange rates, and inflation can be considered sources of good or bad “luck” for corporate performance if management is unable to adjust operations to these fluctuations. Based on a sample of 2,091 US firms, we decompose the impacts of macroeconomic fluctuations on three measures of CEO compensation. Our study provides empirical support for the importance of considering macroeconomic fluctuations in designing CEO incentive schemes. It adds to the managerial power literature on moral hazard and CEO compensation by pinpointing the obvious risk that the CEO in an asymmetric and non-linear reward system will be inclined …

The Role Of Benchmarking In Establishing Standards For The Evaluation Of Human Resources, Chris Andrews, Chris Hogan

Dr Chris Andrews

No abstract provided.

Disproportionate Ownership Structure And Ipo Long-Run Performance Of Non-Soes In China, Xiaoming Wang, Jerry Cao, Qigui Liu, Jinghua Tang, Gary Tian

Gary Tian

This paper examines the relationship between ownership structures and IPO long-run performance of non-SOEs in China. Although non-SOEs underperform the market in general after IPO but the poor performance is mainly caused by the IPOs with ownership control wedge. Non-SOEs with one share one vote structure outperform those with control-ownership wedge by 30% for three years post-IPO performance in adjusted buy-and-hold returns. Non-SOEs with control-ownership wedge have higher frequency of undertaking value-destroying related party transactions. These findings suggest that non-SOEs need to improve corporate governance such as disproportionate ownership structure to better safeguard the interest of long-run shareholders.

Examining The Effect Of Change In Ceo Gender, Functional And Educational Background On Firm Performance And Risk, Eahab Elsaid

Odette School of Business Publications

The purpose of this paper is to examine, within a succession framework, the impact of the change in CEO gender from female to male on firm performance and probability of bankruptcy. We also examine the impact of change in CEO functional and educational background on firm performance and probability of bankruptcy. We use paired sample t-tests and ordinary least squares regression analysis on 46 CEO successions where the outgoing CEO is a female and the incoming CEO is a male. The results show that a change in CEO gender from female to male is associated with an increase in firm …

Efficacy Of R&D Work In Offshore Captive Centers: An Empirical Study Of Task Characteristics, Coordination Mechanisms, And Performance, Deepa Mani, Kannan Srikanth, Anandhi Bharadwaj

Research Collection Lee Kong Chian School Of Business

Seizing the latest technological advances in distributed work, an increasing number of firms have set up offshore captive centers (CCs) in emerging economies to carry out sophisticated R&D work. We analyse survey data from 132 R&D CCs established by foreign multinational companies in India to understand how firms execute distributed innovative work. Specifically, we examine the performance outcomes of projects using different technology-enabled coordination strategies to manage their interdependencies across multiple locations. We find that modularization of work across locations is largely ineffective when the underlying tasks are less routinized, less analyzable, and less familiar to the CC. Coordination based …

How Firms Respond To Financial Restatement: Ceo Successors And External Reactions, David Gomulya, Warren Boeker

Research Collection Lee Kong Chian School Of Business

Although past studies have paid considerable attention to firms' reputations, few have investigated the actions that firms take following a reputation-damaging event. We identify firms involved in financial earnings restatements and examine whether naming a successor CEO with specific qualities serves to signal the seriousness of a firm's efforts to restore its reputation. Using theories of market signaling, we argue that attributes of successor CEOs significantly influence the reactions of key external constituencies. In particular, firms with more severe restatement tend to name successors who have prior CEO or turnaround experience and a more elite education. The naming of such …

The Effects Of Capabilities And Governance On Information Technology And Business Process Outsourcing Performance: Client And Provider Perspectives, Aihua Yan

Dissertations

Research on information technology outsourcing (ITO) and business process outsourcing (BPO) has consistently found that client firm capabilities, provider firm capabilities, and governance mechanisms (contractual and relational) are key determinants of outsourcing performance. These key determinants work together to affect outsourcing performance, however, the information systems (IS) literature has investigated them in a separate manner. This study contributes to the body of IS knowledge by examining capabilities and governance mechanisms influence on outsourcing performance independently and jointly. Based on resource-based theory, transaction cost economics, and relational exchange theories, we develop a research model to examine the independent and joint effects …

Three Essays On Hedge Funds, Liping Qiu

Doctoral Dissertations

In Essay 1, we find that, on average, hedge funds decrease leverage prior to the beginning of the financial crisis, with leverage remaining below the pre-crisis levels. We also find that younger funds with lower current leverage and stricter fund governance are more likely to increase leverage following favorable performance; funds exposed to higher risk, higher management fee and higher current leverage tend to delever. Managers increase leverage in order to enhance future performance following superior returns only to be disappointed. We find mixed evidence on the performance difference between levered and unlevered funds, but levered funds do survive longer. …

The Effect Of Personality Traits On Subject Choice And Performance In High School: Evidence From An English Cohort, Silvia Mendolia, Ian Walker

Silvia Mendolia

This paper investigates the relationship between personality traits in adolescence and performance in high school using a large and recent cohort study. In particular, we investigate the impact of locus of control, self-esteem, and work ethics at age 15, on test scores at age 16, and on subject choices and subsequent performance at age 17-18. In particular, individuals with external locus of control or with low levels of self-esteem seem less likely to have good performance in test scores at age 16 and to pursue further studies at 17-18, especially in mathematics or science. We use matching methods to control …

Perceptions Of Transformational Leadership Behaviors And Subordinates' Performance In Hotels, Eric A. Brown, Susan W. Arendt

Eric A. Brown

This study examined front desk supervisors' transformational leadership dimensions and employees' performance. The Multifactor Leadership Questionnaire and a researcher developed performance questionnaire were used. Employees from 34 hotels (83% response) in one Midwestern state participated in the study. Results indicated that front desk employees perceived their supervisors exhibited leadership dimensions of inspirational motivation and idealized influence more frequently and individualized consideration and intellectual stimulation less frequently. Front desk supervisors reported the most frequently exhibited performance areas as positive attitude, safety/care of equipment, and attendance/punctuality. Least frequently exhibited performance areas were judgment and initiative/motivation. No significant relationship was found between supervisors' …

Airport Performance And Ownership Structure: Evidence From The United Kingdom, United States, And Latin America, Bijan Vasigh, G. Rod Erfani, Brian W. Sherman

Journal of Aviation Technology and Engineering

This study investigates the operational and financial efficiency of airports in selected countries using a cross-regional analysis. A total factor productivity (TFP) approach is used to examine the operational and financial efficiencies of selected airports in the United States, the United Kingdom, and several Latin American countries. The empirical results indicate mixed implications and suggest that the privatized airports in the United Kingdom outperform the partially privatized, government-owned airports in Latin America; however, the evidence also suggests that the selected United States airports outperform the other two groups for each year of this investigation (2000– 2010). The ambivalence of these …

Australian Stock Indexes And The Four-Factor Model, Bruce A. Costa, Keith Jakob, Scott J. Niblock, Elisabeth Sinnewe

Dr Elisabeth Sinnewe

Stock indexes are passive ‘value-weighted’ portfolios and should not have alphas which are significantly different from zero. If an index produces an insignificant alpha, then significant alphas for equity funds using this index can be attributed solely to manager performance. However, recent literature suggests that US stock indexes can demonstrate significant alphas, which ultimately raise questions regarding equity fund manager performance in both the US and abroad. In this paper, we employ the Carhart four-factor model and newly available Asian-Pacific risk factors to generate alphas and risk factor loadings for eight Australian stock indexes from January 2004 to December 2012. …

The Proactive Behavior Of Younger Salespeople: Antecedents And Outcomes, Michael Mallin, Charles Ragland, Todd A. Finkle

Todd A Finkle

The purpose of this study is to model and test some of the antecedents (individual characteristics) and outcomes (selling performance) of proactive behavior among younger salespeople. Using social cognitive theory agency perspective, we extend the existing proactive behavior literature into the sales domain. We sampled 278 industrial salespeople and tested a model to confirm that younger salespeople tend to engage in proactive behaviors when they are intrinsically motivated, confident in the tasks of selling, and willing to take risks. Proactive behavior, in turn, resulted in our salesperson sample demonstrating high levels of behavior performance and job involvement. Our findings may …

Explaining The Effects Of Pay Variation On Individual Outcomes, Samantha A. Conroy

Graduate Theses and Dissertations

Compensation is an area of research rife with debate among experts. These debates are primarily concerned with the effectiveness of pay-for-performance. The pay variation and performance relationship is a subset of this research where disagreement and inconclusive findings are common. Is pay variation conducive to higher performance or is pay compression ideal? This study contributes to the pay variation and performance debate by focusing on performance-based pay variation and addressing fundamental assumptions of prior work. Past research has treated pay variation as a proxy for allocation rules and incentive intensity. Separating these two constructs rather than confounding them provides a …

Pressure Kicks: The Effects Of Distracting Variables On The Outcome Of A Pressure Kick In Division-I College Football, Karen Moede

All Theses

A field goal kicker in NCAA Division-I college football experiences high amounts of pressure when placed in a game-winning situation. A pressure kick may result in optimal or less than optimal performance due the influence of various distracting factors, such as the evaluative nature of an audience or the pressure of being iced by the opposing team. Pressure kicks are classified as a field goal kick, during the last minute of game time (or during overtime), which will result in a lead or a tie game for the kicking team (Goldschmied, Nankin, & Cafri, 2010). Conflicting literature surrounding social facilitation, …

Credit History And The Performance Of Prime And Nonprime Mortgages, Anthony Pennington-Cross

Anthony Pennington-Cross

Although nonprime lending has experienced steady or even explosive growth over the last decade very little is known about the performance characteristics of these mortgages. Using data from national secondary market institutions, this paper estimates a competing risks proportional hazard model, which includes unobserved heterogeneity. The analysis examines the performance of 30-year fixed rate owner occupied home purchase mortgages from February 1995 to the end of 1999 and compares nonprime and prime loan default and prepayment behavior. Nonprime loans are identified by mortgage interest rates that are substantially higher than the prevailing prime rate. Results indicate that nonprime mortgages differ …

The Effect Of Synchronous And Asynchronous Participation On Students' Performance In Online Accounting Courses, Keith Duncan, A. L. Kenworthy, Ray Mcnamara

Ray McNamara

This article examines the relationship between MBA students' performance and participation in two online environments: a synchronous forum (chat room) and an asynchronous forum (discussion board) at an Australian university. The quality and quantity of students' participation is used to predict their final examination and course grade performance outcomes. We find that the total quality of students' participation is positively related to final examination performance but the total quantity of students' participation is related to overall course performance. We also find that synchronous engagement with the course (combined quality and quantity) drives these results and has twice the examination and …

Transnational Companies And Radical Transformation Processes: A Study Of Performance In Comparison To Other Multinational Companies, Jorge Alejandro Palacios

HCBE Theses and Dissertations

The objective of this study was to answer the following question: Do organizations that were defined as having successfully adopted the transnational model, as per Bartlett and Ghoshal (1989), and labeled as transnational companies (TNC), perform significantly better than other multinational companies (MNC) when going through radical transformation processes?

This research question was answered through a mixed method research design. The first part used a quantitative research approach and evaluated the financial performance of TNCs selected from the Bartlett and Ghoshal (1989) research, using secondary data sources from 6 TNCs and 20 MNCs. The second part used a qualitative approach …

Transformational Leadership And Workplace Injury And Absenteeism: Analysis Of A National Nursing Assistant Survey, Doohee Lee, Alberto Coustasse, Andrew Sikula Sr.

Alberto Coustasse, DrPH, MD, MBA, MPH

Background: Transformational leadership (TL) has long been popular among management scholars and health services researchers, but no research studies have empirically tested the association of TL with workplace injuries and absenteeism among nursing assistants (NAs). Purpose: This cross-sectional study seeks to explore whether TL is associated with workplace injuries and absenteeism among NAs. Methodology: We analyzed the 2004 National Nursing Assistant Survey data (n = 2,882). A multivariate logistic regression analysis was performed to test the role of TL in the context of workplace performances. Principal Findings: Results reveal that the TL model was positively linked to workplace injury in …

Transformational Leadership And Workplace Injury And Absenteeism: Analysis Of A National Nursing Assistant Survey, Doohee Lee, Alberto Coustasse, Andrew Sikula Sr.

Andrew Sikula, Sr.

Background: Transformational leadership (TL) has long been popular among management scholars and health services researchers, but no research studies have empirically tested the association of TL with workplace injuries and absenteeism among nursing assistants (NAs). Purpose: This cross-sectional study seeks to explore whether TL is associated with workplace injuries and absenteeism among NAs. Methodology: We analyzed the 2004 National Nursing Assistant Survey data (n = 2,882). A multivariate logistic regression analysis was performed to test the role of TL in the context of workplace performances. Principal Findings: Results reveal that the TL model was positively linked to workplace injury in …

Transformational Leadership And Workplace Injury And Absenteeism: Analysis Of A National Nursing Assistant Survey, Doohee Lee, Alberto Coustasse, Andrew Sikula Sr.

Doohee Lee

Background: Transformational leadership (TL) has long been popular among management scholars and health services researchers, but no research studies have empirically tested the association of TL with workplace injuries and absenteeism among nursing assistants (NAs). Purpose: This cross-sectional study seeks to explore whether TL is associated with workplace injuries and absenteeism among NAs. Methodology: We analyzed the 2004 National Nursing Assistant Survey data (n = 2,882). A multivariate logistic regression analysis was performed to test the role of TL in the context of workplace performances. Principal Findings: Results reveal that the TL model was positively linked to workplace injury in …

Mindfulness At Work: Antecedents And Consequences Of Employee Awareness And Absent-Mindedness, Jochen Reb, Jayanth Narayanan, Zhi Wei Ho

Jochen Reb

The present study examines antecedents and consequences of two aspects of mindfulness in a work setting: employee awareness and employee absent-mindedness. Using two samples, the study found these two aspects of mindfulness to be beneficially associated with employee well-being, as measured by emotional exhaustion, job satisfaction, and psychological need satisfaction, and with job performance, as measured by task performance, organizational citizenship behaviors, and deviance. These results suggest a potentially important role of mindfulness at the workplace. The study also found that organizational constraints and organizational support predicted employee mindfulness, pointing to the important role that the organizational environment may play …

Do Venture Capitalists Play A Monitoring Role In An Emerging Market? Evidence From The Pay-Performance Relationship Of Chinese Entrepreneurial Firms, Jerry Cao, Qigui Liu, Gary Tian

Gary Tian

This paper investigates venture capitalists' monitoring of managerial behaviour by examining their impact on CEO pay-performance sensitivity across various controlling structures in Chinese firms. We find that the effectiveness of venture capitalists' monitoring depends on different types of agency conflict. In particular, we find that venture capital (VC) monitoring is hampered in firms that experience severe controlling-minority agency problems caused by disproportionate ownership structures. We provide further evidence that VC is more likely to exert close monitoring in firms that have greater managerial agency conflict, and thus require more direct monitoring. However, controlling-minority agency problems have a greater impact on …

Characteristics Of Successful Minority Female Police Supervisors Within A Large Urban Midwest Police Department, Yasmia G. Dunn

Ed.D. Dissertations

This study explored the leadership characteristics of minority female police supervisors, the actual and perceived barriers to their advancement through the ranks, and the strategies and factors that aided their success and career advancement within the police department participating in the study. Statistical data was gathered regarding the status of high-ranking minority women in the agency, administered participant questionnaires and surveys, and conducted individual semi-structured interviews with the participants. Information obtained from the department's online personnel data system aided in identifying study participants within the agency. The study participants met the criteria of being high-ranking minority female supervisors holding the …

Appraising Performance In Public Sector Organisations: Critical Discourse Perspectives, Christa Wood

Christa Wood

This paper examines the performance appraisal system that has been implemented in some public service organisations in line with the changes to a more commercialized structure. In an effort to change the behaviours and attitudes of public servants, performance appraisal systems have incorporated the new values and desired behaviours. Although a myriad of studies exist in regards to the new public management and on the topic of performance appraisal systems, there are few critical management studies of the implementation and operation of performance appraisal in the public sector. To date, most critical studies of performance appraisal have concentrated on the …

Family Incivility And Job Performance: A Moderated Mediated Model Of Psychological Distress And Core Self-Evaluation, Sandy Lim, Kenneth Tai

Research Collection Lee Kong Chian School Of Business

This study extends the stress literature by exploring the relationship between family incivility and job performance. We examine whether psychological distress mediates the link between family incivility and job performance. We also investigate how core self-evaluation might moderate this mediated relationship. Data from a 2-wave study indicate that psychological distress mediates the relationship between family incivility and job performance. In addition, core self-evaluation moderates the relationship between family incivility and psychological distress but not the relationship between psychological distress and job performance. The results hold while controlling for general job stress, family-to-work conflict, and work-to-family conflict. The findings suggest that …

Reply To "Response: Board Composition And Firm Performance: Evidence From Bangladesh - A Sceptical View", Afzalur Rashid, Anura De Zoysa, Sudhir Lodh, Kathleen Rudkin

Kathy Rudkin

This paper replies to Chowdhury’s (2010) response to the paper "Board Composition and Firm Performance: Evidence from Bangladesh" (2010). It challenges the strength of the criticisms, arguing that the factors discussed in Chowdhury (2010) do not necessarily impair the outcome of the research. The authors elucidate issues raised, and in so doing, reproduce the results incorporating the commentator’s suggestions

Analysing Banks' Intermediation And Operational Performance Using The Hicks-Moorsteen Tfp Index: The Case Of Iran, Amir Arjomandi, Abbas Valadkhani, Martin O'Brien

Martin O'Brien

In order to analyse the impact of policy reforms on the performance of the banking sector in Iran we present a decomposition of the Hicks-Moorsteen Total Factor Productivity (TFP). This entails a comparison of both the intermediate and operating performances of different types of banks in the pre- and post-reform eras. Our results show that under the intermediation approach, state-owned banks (public banks) were considerably more efficient than private banks in the post-regulation period. In contrast, under the operating approach, private banks were fully technically efficient and mix efficient in both pre and post-reform eras. This paper highlights the importance …

Systematic Reflection: Implications For Learning From Failures And Successes, Shmuel Ellis, Bernd Carette, Frederik Anseel, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Drawing on a growing stream of empirical findings that runs across different psychological domains, we demonstrated that systematic reflection stands out as a prominent tool for learning from experience. For decades, failed experiences have been considered the most powerful learning sources. Despite the theoretical and practical relevance, few researchers have investigated whether people can also learn from their successes. We showed that through systematic reflection, people can learn from both their successes and their failures. Studies have further shown that the effectiveness of systematic reflection depends on situational (e.g., reflection focus) and person-based (e.g., conscientiousness) factors. Given today's unrelenting pace …

Leading Mindfully: Two Studies Of The Influence Of Supervisor Trait Mindfulness On Employee Well-Being And Performance, Jochen Reb, Jayanth Narayanan, Sankalp Chaturvedi

Research Collection Lee Kong Chian School Of Business

This research examines the influence of leaders’ mindfulness on employee well-being and performance. We hypothesized that supervisors’ trait mindfulness is positively associated with different facets of employee well-being, such as job satisfaction and need satisfaction, and different dimensions of employee performance, such as in-role performance and organizational citizenship behaviors. We also explored whether one measure of employee well-being, psychological need satisfaction, plays a mediating role in the relation between supervisor mindfulness and employee performance. We tested these predictions in two studies using data from both supervisors and their subordinates. Results were consistent with our hypotheses. Overall, this research contributes to …