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Articles 1 - 30 of 51
Full-Text Articles in Leadership Studies
How Leaders Build Employee Trust In Artificial Intelligence: Voice Opportunities, Humility, And Trust Transfer, Jack Mcguire, David De Cremer, Devesh Narayanan
How Leaders Build Employee Trust In Artificial Intelligence: Voice Opportunities, Humility, And Trust Transfer, Jack Mcguire, David De Cremer, Devesh Narayanan
Research Collection Lee Kong Chian School Of Business
Artificial intelligence is increasingly central to organizational work, yet employee trust in AI remains fragile. Although prior research has primarily explained trust in AI through technological characteristics such as transparency, reliability, and accuracy, we argue that trust in AI is also shaped by the social context in which employees encounter these systems. Drawing on affect-as-information theory and social information processing theory, we develop and test a model in which leader-provided voice opportunities reduce employees’ negative affect about AI-related work experiences, thereby enhancing perceptions of leader trustworthiness and, in turn, trust in AI. We further propose that this indirect effect depends …
The Power And Peril Of Awe In Leadership: Transforming Follower Identity And Behavior, Jack Mcguire, Daniel Mcallister, Jochen Menges, David De Cremer
The Power And Peril Of Awe In Leadership: Transforming Follower Identity And Behavior, Jack Mcguire, Daniel Mcallister, Jochen Menges, David De Cremer
Research Collection Lee Kong Chian School Of Business
Awe is a profound emotion that has captured significant attention within psychological research. While the potential for leaders to inspire awe in followers has received some recognition, systematic research on the nature and effects of awe in leadership—and within organizational contexts more broadly—remains limited. In this article, we offer a conceptual framework that explains the multifaceted and transformative nature of leadership through the power of awe. Specifically, we identify four leader behaviors—charismatic leadership tactics, exceptional performance, problem reframing, and self-sacrificial behavior—that elicit awe among followers. We further propose three variants of awe-inspiring leaders, describing how variation in a leader’s self-construal …
High Flying Adored: How Ceo Narcissism Influences Firms’ Responses To Above-Aspiration Performance With Risky Organizational Change, Korcan Kavusan, Daniel Mack, Matthew P. Mount, Gokhan Ertug
High Flying Adored: How Ceo Narcissism Influences Firms’ Responses To Above-Aspiration Performance With Risky Organizational Change, Korcan Kavusan, Daniel Mack, Matthew P. Mount, Gokhan Ertug
Research Collection Lee Kong Chian School Of Business
Research Summary: Research on performance feedback presents conflicting views on how above-aspiration performance influences organizational change. Some studies argue that it constrains change due to a lack of organizational motivation, while others suggest that it enables change by expanding managerial discretion. Reconciling these perspectives, we suggest that managers’ narcissistic tendencies can fundamentally alter how a firm responds to above-aspiration performance. We theorize and find evidence that high-narcissism CEOs respond to above-aspiration performance with more acquisitions—attention-generating actions that align with their self-enhancement motives, while under similar conditions low-narcissism CEOs avoid acquisitions, due to their uncertainty and risk. Our findings highlight the …
Do Bank Ceos Learn From Crisis Experiences?, Gloria Yang Yu
Do Bank Ceos Learn From Crisis Experiences?, Gloria Yang Yu
Research Collection Lee Kong Chian School Of Business
Does the early-career exposure of bank CEOs to the 1980s savings and loans (S&L) crisis affect the outcomes of banks they subsequently managed? We measure the S&L crisis exposure by the bank failure rate in the states where CEOs worked during the S&L crisis. Armed with this measure, we find that banks managed by CEOs with higher S&L crisis exposure took on less risk and that these banks better survived the financial crisis of 2008. In particular, CEOs adjusted risk attitudes in areas causing the S&L crisis: their more intense crisis experience reduced banks’ interest rate risk, exposure to risky …
Director Overseas Experience And Cross-Border Acquisitions: Evidence From China, Liu Chenxi, Mengyao Kang
Director Overseas Experience And Cross-Border Acquisitions: Evidence From China, Liu Chenxi, Mengyao Kang
Research Collection Lee Kong Chian School Of Business
This study investigates the impact of director overseas experience on firms’ cross-border acquisition decisions. We find that firms with directors who have overseas experience tend to engage in more cross-border acquisitions. This finding remains robust across various types of overseas experience. This correlation is unlikely to be influenced by omitted variable biases or driven by reverse causality, where firms deliberately employ directors with overseas experience before initiating cross-border acquisitions. Additionally, director overseas experience is associated with higher announcement returns and enhanced post-merger performance. Further analysis reveals that director overseas experience affects cross-border acquisition decisions primarily through the cultural inclusivity channel. …
Well-Being Of Formal Leaders: A Critical And Interdisciplinary Review Of Predictors Shaping Leader Well-Being, Burak Oc, Kraivin Paripont Chintakananda
Well-Being Of Formal Leaders: A Critical And Interdisciplinary Review Of Predictors Shaping Leader Well-Being, Burak Oc, Kraivin Paripont Chintakananda
Research Collection Lee Kong Chian School Of Business
Holding a formal leadership role is often idealized, motivating individuals to pursue such positions for independence and success. However, recent reports highlight significant challenges faced by leaders, particularly during as well as after the COVID-19 pandemic, including increased work demands and reduced well-being. This review takes a critical stance and examines whether formal leaders bear a well-being cost. Using Bronfenbrenner’s (1979) ecological systems framework, we categorize predictors of leader well-being, discuss dominant theoretical frameworks explaining the most frequently studied relationships, and identify theoretical gaps in the existing literature. Following this, we identify internal validity issues affecting the interpretation of existing …
When Leaders Self-Sacrifice In Times Of Crisis: The Roles Of Employee Emotional Suppression And Leader Coping Strategies, Xingyu Wang, Xueqi Wen, Zihan Liu, Yixing Lisa Gao, Juan M. Madera
When Leaders Self-Sacrifice In Times Of Crisis: The Roles Of Employee Emotional Suppression And Leader Coping Strategies, Xingyu Wang, Xueqi Wen, Zihan Liu, Yixing Lisa Gao, Juan M. Madera
Research Collection Lee Kong Chian School Of Business
While literature articulates the relevance of self-sacrificial leadership to crisis situations, little attention has been paid to employees’ attitudinal and behavioral responses to self-sacrificial leadership. This is a particularly salient gap in the scholarship, given the decisions leaders must make to address challenges in the hospitality industry (e.g., the COVID-19 pandemic). Drawing on conservation of resources theory, this pair of field and experimental studies examines how individual differences in employee emotional suppression and leader coping strategy moderate the impacts of self-sacrificial leadership on employee perceptions of leader effectiveness. By sampling U.S. hospitality employees, the studies reveal that leaders who display …
A Power Dependence Model Of The Impact Of Leader Impostorism On Supervisor Support And Undermining: The Moderating Role Of Power Distance, Xueqi Wen, Zihan Liu, Feng Qiu, Keith Leavitt, Xingyu Wang, Ziyang Tang
A Power Dependence Model Of The Impact Of Leader Impostorism On Supervisor Support And Undermining: The Moderating Role Of Power Distance, Xueqi Wen, Zihan Liu, Feng Qiu, Keith Leavitt, Xingyu Wang, Ziyang Tang
Research Collection Lee Kong Chian School Of Business
Leaders, often perceived as possessing exceptional confidence and competence, are not immune to feelings of self-doubt. Leader impostorism describes the experience that one’s attributes, experiences, skills, and abilities fall short of the standards expected in the leadership role, resulting in a sense of deception in fulfilling leadership responsibilities. While existing research has examined the antecedents and individual outcomes of leader impostorism, its implications for leaders’ treatment of subordinates remain largely unexplored. In this research, we investigate the downstream consequences of leader impostorism on behaviors directed toward subordinates. Integrating research on leader impostorism with power dependence theory, we propose that for …
Leader-Expressed Humility: Development And Validation Of Scales Based On A Comprehensive Conceptualization, Kraivin Chintakananda, James M. Diefendorff, Burak Oc, Michael A. Daniels, Gary J. Greguras, Michael R. Bashshur
Leader-Expressed Humility: Development And Validation Of Scales Based On A Comprehensive Conceptualization, Kraivin Chintakananda, James M. Diefendorff, Burak Oc, Michael A. Daniels, Gary J. Greguras, Michael R. Bashshur
Research Collection Lee Kong Chian School Of Business
We introduce new leader humility scales capturing a theoretically rich conceptualization of leader-expressed humility aligned with traditional and ethically-grounded philosophies. These scales draw from recent inductive research (Oc et al., 2015) identifying nine dimensions of leader-expressed humility: (1) having an accurate view of self, (2) recognizing follower strengths and achievements, (3) modeling teachability and being correctable, (4) leading by example, (5) showing modesty, (6) working together for the collective good, (7) empathy and approachability, (8) showing mutual respect and fairness, and (9) mentoring and coaching. The first three dimensions overlap with the most prominent conceptualization of leader-expressed humility in the …
Gender Bias In Cultural Tightness Across The 50 U.S. States And Its Links To Gender Inequality In Leadership And Innovation, Xin Qin, Roy Y. J. Chua, Ling Tan, Wanlu Li, Chen Chen
Gender Bias In Cultural Tightness Across The 50 U.S. States And Its Links To Gender Inequality In Leadership And Innovation, Xin Qin, Roy Y. J. Chua, Ling Tan, Wanlu Li, Chen Chen
Research Collection Lee Kong Chian School Of Business
Cultural tightness theory, which holds that “tight” cultures have rigid norms and sanctions, provides unique insights into cultural variations. However, current theorizing has not analyzed gender differences in cultural tightness. Addressing this gap, this research shows that women are more constrained than men by norms within the same society. By recruiting 15,425 respondents, we mapped state-level gender bias in cultural tightness across the United States. Variability in gender bias in cultural tightness was associated with state-level socio-political factors (religion and political ideology) and gender-related threats. Gender bias in cultural tightness was positively associated with state-level gender inequality in (business and …
Effects Of A Mindfulness-Based Leadership Training On Leadership Behaviors And Effectiveness, Nina Tan, Eva Katharina Peters, Jochen Reb
Effects Of A Mindfulness-Based Leadership Training On Leadership Behaviors And Effectiveness, Nina Tan, Eva Katharina Peters, Jochen Reb
Research Collection Lee Kong Chian School Of Business
Objectives: Organizations increasingly integrate mindfulness elements into their leadership development. However, there is limited evidence supporting the efficacy of mindfulness-based leadership training (MBLT) due to a scarcity of intervention studies. Theoretically, little is known about mediating mechanisms through which MBLT might affect leadership effectiveness. Thus, this research examined whether MBLT can improve leadership effectiveness and whether leadership behaviors mediated this effect.MethodsWe conducted a quasi-experimental study conducted in a real-world setting with an active control condition. Sixty leaders from various industries participated in either a 2-day intensive MBLT workshop followed by three individual coaching sessions over 3 months, or a presentation …
How Transformational Leadership Transforms Followers’ Affect And Work Engagement, Benjamin Bader, Michael Gielnik, Ronald Bledow
How Transformational Leadership Transforms Followers’ Affect And Work Engagement, Benjamin Bader, Michael Gielnik, Ronald Bledow
Research Collection Lee Kong Chian School Of Business
How do episodes of transformational leadership transform followers? To address this question, we build on theories of affective events and affect regulation and develop a research model that explicates a mechanism of the transformation process implicit in transformational leadership theory. Specifically, the model explains how experiencing episodes of transformational leadership transforms (i.e., changes) followers’ positive affect and eventually their work engagement by fulfilling followers’ basic psychological needs. We tested our model in two independent longitudinal samples using daily and weekly measurement designs with 214 (N = 75) and 147 (N = 54) lagged observations, respectively. In support of our model, …
Algorithms, Leadership, And Morality: Why A Mere Human Effect Drives The Preference For Human Over Algorithmic Leadership, Jack Mcguire, David De Cremer
Algorithms, Leadership, And Morality: Why A Mere Human Effect Drives The Preference For Human Over Algorithmic Leadership, Jack Mcguire, David De Cremer
Research Collection Lee Kong Chian School Of Business
Algorithms are increasingly making decisions in organizations that carry moral consequences and such decisions are considered to be ordinarily made by leaders. An important consideration to be made by organizations is therefore whether adopting algorithms in this domain will be accepted by employees and whether this practice will harm their reputation. Considering this emergent phenomenon, we set out to examine employees’ perceptions about (a) algorithmic decision-making systems employed to occupy leadership roles and make moral decisions in organizations, and (b) the reputation of organizations that employ such systems. Furthermore, we examine the extent to which the decision agent needs to …
The Study Of Followers In Leadership Research: A Systematic And Critical Review, Burak Oc, Kraivin Chintakananda, Michael R. Bashshur, David V. Day
The Study Of Followers In Leadership Research: A Systematic And Critical Review, Burak Oc, Kraivin Chintakananda, Michael R. Bashshur, David V. Day
Research Collection Lee Kong Chian School Of Business
Despite the significant amount of existing research examining the relationship of follower-related factors with leadership outcomes, there is no systematic, critical review that integrates and helps leadership scholars make sense of this rapidly growing body of research. To address this gap in the literature, we first briefly discuss the leading perspectives explaining the role of followers in leadership. Next, we identify and discuss the most frequently studied theoretical narratives explaining the relationship between follower-related predictors and leadership outcomes. Because theoretical arguments generally make causal claims, we identify and examine how methodological concerns including power analysis, multicollinearity, and endogeneity might prevent …
How And Why Is Context Important In Leadership?, Burak Oc, Joseph A. Carpini
How And Why Is Context Important In Leadership?, Burak Oc, Joseph A. Carpini
Research Collection Lee Kong Chian School Of Business
Leadership can be defined as a goal-influence process that occurs between a leader and a follower, groups of followers, or institutions that directs effort towards the achievement of a shared objective (Antonakis & Day, 2018, p. 5). From this definition, we can distil four key elements of leadership: a) leaders, b) followers, c) influence and d) goals, motivation and performance. While leaders and followers are the main actors of leadership processes, how they influence each other has implications for group goals. However, most leadership research focuses on leaders, largely treating them as the sole driver of organisation success or failure …
Leading A Business School, Julie Davis, Howard Thomas, Eric Cornuel, Rolf D. Cremer
Leading A Business School, Julie Davis, Howard Thomas, Eric Cornuel, Rolf D. Cremer
Research Collection Lee Kong Chian School Of Business
Business schools are critical players in higher education, educating current and future leaders to make a difference in the world. Yet we know surprisingly little about the leaders of business schools. Leading a Business School demystifies this complex and dynamic role, offering international insights into deans’ dilemmas in different contexts and situations. It highlights the importance of deans creating challenging and supportive learning cultures to enhance business and management education, organizations and society more broadly. The book traces the historical evolution of the business school deanship, the current challenges and future sources of disruption. The leadership characteristics and styles of …
The Catholic Church Abuse Scandal In Ireland: Two Steps Forward, One Step Back By Pope Francis?, Augustine Pang, Eada Hogan, Igor Andrasevic
The Catholic Church Abuse Scandal In Ireland: Two Steps Forward, One Step Back By Pope Francis?, Augustine Pang, Eada Hogan, Igor Andrasevic
Research Collection Lee Kong Chian School Of Business
Purpose: Ireland is viewed as the shining base for Catholicism. That image is shattered as survivors revealed the abuse in the Magdalene Laundries and Mother and Baby Homes, and sexual abuse by priests. This study aims to examine image repair efforts by the Pope during his August 2018 visit. Design/methodology/approach: Examined against the Letter of His Holiness released days earlier, this study evaluates all the Pope's speeches during his visit to Ireland using the image repair theory (Benoit and Pang, 2008) as its theoretical lens. Findings: Pope Francis used the evasion of responsibility strategy to address the Magdalene Laundries and …
Unlocking The Creativity Potential Of Dialectical Thinking: Field Investigations Of The Comparative Effects Of Transformational And Transactional Leadership Styles, Roy Y. J. Chua, Jia Hui Lim, Wannwiruch (Fon) Wiruchnipawan
Unlocking The Creativity Potential Of Dialectical Thinking: Field Investigations Of The Comparative Effects Of Transformational And Transactional Leadership Styles, Roy Y. J. Chua, Jia Hui Lim, Wannwiruch (Fon) Wiruchnipawan
Research Collection Lee Kong Chian School Of Business
In a digital economy characterized by high volumes of information and ideas, many of which could be contradictory to one another, employees high in dialectical thinking should be well poised to connect disparate ideas to generate creative solutions for business problems. Yet, it is unclear whether dialectical thinking as a creativity-relevant skill can be realized in naturalistic workplace settings, given past mixed findings and the lack of field studies. We propose that supervisors’ leadership styles are important moderators that can unlock employees’ creativity potential in dialectical thinking. Additionally, we compare the activating effect of transformational leadership and the inhibiting effect …
Carlos Ghosn: The Rise And Fall Of An Automobile Legend, Jochen Reb, Abhijeet K. Vadera, Sin Mei Cheah
Carlos Ghosn: The Rise And Fall Of An Automobile Legend, Jochen Reb, Abhijeet K. Vadera, Sin Mei Cheah
Research Collection Lee Kong Chian School Of Business
Was it politics, greed, or hubris that led to Carlos Ghosn's downfall? On December 29, 2019, disgraced auto titan Carlos Ghosn (rhymes with ‘tone’) made an audacious escape from house arrest in Tokyo, where he had been detained on financial impropriety charges. Of all the places imaginable, Ghosn hid in a huge case for musical instruments, which was then loaded onto an aeroplane as cargo. Dubbed as “one of the most brazen and well-orchestrated escape acts in recent history, involving a dizzying array of hotel meet-ups, bullet train travel, fake personas, and the chartering of a private jet”, it was …
Academic Leadership Qualities Towards Innovation Endeavours In An Organisation: A Comparative Study Of Malaysia And Singapore Perceptions, Cheng Sim Quah, Sandra Phek Lin Sim, Wee Liang Tan
Academic Leadership Qualities Towards Innovation Endeavours In An Organisation: A Comparative Study Of Malaysia And Singapore Perceptions, Cheng Sim Quah, Sandra Phek Lin Sim, Wee Liang Tan
Research Collection Lee Kong Chian School Of Business
This study employed mixed methods to explore the comparison between Malaysia and Singapore in terms of the contribution of leadership qualities and impacts towards innovation endeavours. Besides that, it also examined the significant relationship between leadership qualities and innovation endeavours in both countries. Findings revealed that operational focus and quality measurement qualities make the strongest unique contribution to explaining the variance, emphasising the importance of innovation. Findings also showed that innovation endeavours have promising impacts on Malaysia and Singapore university students towards enhancing, inspiring and motivating their learning, besides providing them a sense of self-improvement, self-motivation, self-satisfaction, self-efficiency and a …
A Self-Regulation Model Of Leader Authenticity Based On Mindful Self-Regulated Attention And Political Skill, Erik Dietl, Jochen Reb
A Self-Regulation Model Of Leader Authenticity Based On Mindful Self-Regulated Attention And Political Skill, Erik Dietl, Jochen Reb
Research Collection Lee Kong Chian School Of Business
Despite much research on leader authenticity, its antecedents remain poorly understood. We develop a self-regulatory model of leader authenticity. The model explains how both mindful self-regulated attention and political skill, as well as their interaction, are important for leaders to be authentic, and ultimately effective. Mindful self-regulated attention – a core dimension of mindfulness defined as sustained attention centered on the present moment – helps leaders stay connected to their core self amid the busyness of their (work) lives, allowing leaders to feel authentic. And, particularly in combination with political skill – a social effectiveness construct –, it helps leaders …
Authentic Leadership In The Digital Age, Richard R. Smith
Authentic Leadership In The Digital Age, Richard R. Smith
Research Collection Lee Kong Chian School Of Business
Artificial intelligence algorithms are actively assessing our personality and behaviour based on our social media footprint with amazing accuracy – even after we have retired or died.
Humility Breeds Authenticity: How Authentic Leader Humility Shapes Follower Vulnerability And Felt Authenticity, Burak Oc, Michael A. Daniels, James M. Diefendorff, Michael Ramsay Bashshur, Gary John Greguras
Humility Breeds Authenticity: How Authentic Leader Humility Shapes Follower Vulnerability And Felt Authenticity, Burak Oc, Michael A. Daniels, James M. Diefendorff, Michael Ramsay Bashshur, Gary John Greguras
Research Collection Lee Kong Chian School Of Business
Integrating existing work that considers the self through an interpersonal lens with theories pertaining to leader humility and authenticity, we develop a moderated mediation model that theorizes how and under what circumstances leader humility relates to follower felt authenticity. We argue that followers feel less vulnerable when their leaders express humility and further that this relation becomes weaker as the authenticity of leader humility decreases. We also theorize that follower vulnerability is the mechanism explaining the interactive effect of leader humility and its authenticity on follower felt authenticity at work. Our theoretical model was supported across four studies employing both …
The Missing Shifts, Saumya Sindhwani, Jerry Conner, Howard Thomas
The Missing Shifts, Saumya Sindhwani, Jerry Conner, Howard Thomas
Research Collection Lee Kong Chian School Of Business
Saumya Sindhwani, Jerry Connor and Howard Thomas argue it is time to change the way we develop leaders – and tap into the power of mindset. The needs the managers speak of fit into two broad categories (“empathy” and “resourcefulness”) and both are fundamental “changes in mindset”. By that, we mean a change in attitude or world view.
Career Sponsorship: An Effective Way For Developing Women Leaders, Jovina Ang
Career Sponsorship: An Effective Way For Developing Women Leaders, Jovina Ang
Research Collection Lee Kong Chian School Of Business
Other than an effective career progression strategy, this research, which comprised of an autoethnography and an in-depth qualitative case study research showed that career sponsorship could be an effective strategy for developing women leaders. In the sponsor relationship, sponsors invest considerable time, effort and resources in developing sponsees, thus, preparing them for the top jobs. In addition to developing the skills on the leadership strataplex, career sponsorship has been shown to be an enabler for developing confidence, which is one of the necessary ingredients for developing executive presence. Career sponsorship also fills the gap and addresses the shortcomings that arise …
Integrity, Meritocracy And Inclusiveness: Singapore's Core Values, Tony Tan, Philip Zerrillo
Integrity, Meritocracy And Inclusiveness: Singapore's Core Values, Tony Tan, Philip Zerrillo
Research Collection Lee Kong Chian School Of Business
An interview with the seventh President of Singapore, Dr Tony Tan. The seventh President of Singapore, Dr Tony Tan, talks about the challenges and opportunities for the island-state, in this interview with Philip Zerrillo.
The Informational Role Of Overconfident Ceos, Chi Shen Wei, Lei Zhang
The Informational Role Of Overconfident Ceos, Chi Shen Wei, Lei Zhang
Research Collection Lee Kong Chian School Of Business
We study how overconfident CEOs communicate with the market and whether this has implications on the firm’s information environment. Textual analysis reveals that overconfident CEOs communicate using less negative tone in their 10K/Q filings. Our evidence suggests that overconfident CEOs provide market participants with more value-relevant information as sell-side analysts make more accurate forecasts of their firm’s future earnings. Consistent with a reduction in asymmetric information, implied cost of equity capital is lower. However, not all investors benefit as the information advantage of short sellers disappears in the stocks of overconfident CEOs.
Can Being Overconfident Make You A Better Leader?, Kenny Phua, T. Mandy Tham, Chi Shen Wei
Can Being Overconfident Make You A Better Leader?, Kenny Phua, T. Mandy Tham, Chi Shen Wei
Research Collection Lee Kong Chian School Of Business
When Apple CEO Steve Jobs approached AT&T about partnering on a new kind of mobile phone — a touchscreen computer that would fit in your pocket — Apple had no expertise in the mobile market. Yet AT&T executives quickly came to believe so strongly in Job’s vision that they skipped internal process protocols to land the deal. Randall Stephenson, then CEO of AT&T, famously said, “I told people you weren’t betting on a device. You were betting on Steve Jobs.” Apple went on to secure massive commitments from AT&T’s suppliers, who spent hundreds of millions to build factories for iPhone-specific …
Contextual Leadership: A Systematic Review Of How Contextual Factors Shape Leadership And Its Outcomes, Burak Oc
Research Collection Lee Kong Chian School Of Business
With roots dating back to Fiedler’s (1978) contingency model, contextual leadership has been one of the most trending topics in leadership research over the last decade. However, although roughly 500 studies have examined the impact of context on leadership and its outcomes, there is neither a systematic approach to nor agreement regarding what constitutes the context for leadership. This is surprising, considering the central role that context plays in leadership: Leadership does not occur in a vacuum, but rather exists in a context where leaders function. This review article uses Johns’s (2006) categorical framework to fully portray the leadership context …
The Role Of Facial Appearance On Ceo Selection After Firm Misconduct, David M. Gomulya, Elaine M. Wong, Margaret E. Ormiston, Warren Boeker
The Role Of Facial Appearance On Ceo Selection After Firm Misconduct, David M. Gomulya, Elaine M. Wong, Margaret E. Ormiston, Warren Boeker
Research Collection Lee Kong Chian School Of Business
We investigate a particular aspect of CEO successor trustworthiness that may be critically important after a firm has engaged in financial misconduct. Specifically, drawing on prior research that suggests that facial appearance is one critical way in which trustworthiness is signaled, we argue that leaders who convey integrity, a component of trustworthiness, will be more likely to be selected as successors after financial restatement. We predict that such appointments garner more positive reactions by external observers such as investment analysts and the media because these CEOs are perceived as having greater integrity. In an archival study of firms that have …