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

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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 …

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

Odette School of Business Publications

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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 …

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Is More Always Better? Risk Trade-Offs Among Internationalizing New Ventures, Stephanie A. Fernhaber, Patricia P. Mcdougall-Covin

Scholarship and Professional Work - Business

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Purpose

– The purpose of this paper is to investigate how ventures manage the negative returns associated with higher levels of internationalization. Many new ventures are internationalizing to fully exploit new innovations and/or gain access to larger markets. Yet at some point the rising costs associated with internationalization outweigh any benefits, resulting in an inverted U-shaped relationship between internationalization and performance.

Design/methodology/approach

– New ventures are theorized to better manage high levels of internationalization by limiting exposure to other sources of risk. This can be achieved by leveraging greater size and/or limiting simultaneous diversification efforts on product innovation. To test …

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Uncovering The Nuances Of Referral Hiring: How Referrer Characteristics Affect Referral Hires’ Performance And Likelihood Of Voluntary Turnover, Jenna R. Pieper

Department of Management: Faculty Publications

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The literature on employee referral hiring gives little attention to referrers. Synthesizing two theories in the literature (the better match and social enrichment accounts), through the lens of social resources theory, I provide a conceptual and empirical breakdown of the effects of referrer quality (referrer performance at hire and referrer tenure at hire) and post-hire accessibility (referrer employment and referrer-referral hire job congruence) on referral hire performance and likelihood of voluntary turnover. I tested my hypotheses with longitudinal data from 386 referrer-referral hire pairs at the same job level in a U.S. call center over a 2-year period. Across analyses …

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