Gus De Franco, Ole‐Kristian Hope, Stephannie A. Larocque
{"title":"The Effect of Disclosure on the Pay-Performance Relation","authors":"Gus De Franco, Ole‐Kristian Hope, Stephannie A. Larocque","doi":"10.2139/ssrn.1428826","DOIUrl":"https://doi.org/10.2139/ssrn.1428826","url":null,"abstract":"We examine whether greater transparency leads to improved evaluation and rewarding of management. We posit that disclosure improves board effectiveness at monitoring executives and in strengthening the link between pay and performance. We use management guidance as our empirical proxy for disclosure and document the following. We predict and find higher sensitivity of CEO compensation to performance (both accounting and stock returns) for firms that issue management guidance than for firms that do not. Our results are robust to multiple tests that address the potential endogeneity of management’s decision to issue guidance (using a Heckman self-selection model, employing a matched-sample approach, and identifying a subsample of firms in which increased disclosure is likely to be exogenous), tests that control for alternative explanations, and tests that use conference calls as an alternative disclosure metric.","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132540486","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Theory and Evidence on Mergers and Acquisitions by Small and Medium Enterprises","authors":"U. Weitzel, K. McCarthy","doi":"10.1504/IJEIM.2011.041734","DOIUrl":"https://doi.org/10.1504/IJEIM.2011.041734","url":null,"abstract":"The theory of mergers and acquisitions (MA are more likely to be withdrawn, suggesting that SMEs are more flexible, and more able to avoid deals that turn sour; and, finally, SME M&As are more likely to be financed with equity rather than debt, indicating that the influential financial pecking order theory is of less relevance to SMEs.","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128949659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Managerial Networks and Strategic Flexibility: A QM Perspective","authors":"Leopoldo Gutierrez, Virginia Fernández pérez","doi":"10.1108/02635571011077834","DOIUrl":"https://doi.org/10.1108/02635571011077834","url":null,"abstract":"Purpose – The paper aims to study the effect of external managerial social networks on strategic flexibility for a quality management (QM) perspective. External social networks can affect strategic flexibility positively. QM also contributes to developing these networks. However, there is currently a wide variety of alternatives for managing quality in organizations, such as ISO standards or the European Foundation for Quality Management model. Thus, different alternatives will influence the external social networks differently in ways that have repercussions for strategic flexibility. Testing these differences is the main purpose of this paper.Design/methodology/approach – A total of 203 valid responses were classified in three groups: non‐QM, ISO, and total quality management (TQM) firms. Then, a comparative ANOVA analysis was performed to test differences among groups. Finally, different regressions were run to test the effects of external social networks (range, size and strength) on strategic flexibi...","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"04 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130235485","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Implementation and Impacts of Balanced Scorecard on Shared Service Units: A Car Dealership Case","authors":"Tsuilin Kuo, A. Wu","doi":"10.2139/ssrn.1658794","DOIUrl":"https://doi.org/10.2139/ssrn.1658794","url":null,"abstract":"Many organizations applied the Balanced Scorecard (BSC) to their shared service units (SSUs) in order to increase the value of SSUs; however, few studies show the implementation and effects of BSC on the SSUs in real cases. This study examines two issues: First, we illustrate the case related to the implementation of BSC for the SSUs in a large automobile dealership in Taiwan. This case includes six stages in implementing BSC for SSUs which are “service agreement”, “internal transfer pricing”, “internal customer feedback”, and “SSU income statement”…etc. Second, we examine the influences of BSC on employees’ cognition and behavior, and on the roles and positions of SSUs by conducting two survey and interview employees from the SSUs. The results show that most employees in SSUs strongly sense and understand organizational strategy; however, SSUs’ employees do not really change their behavior on their daily job after one-year implementation of BSC. In addition, we find that SSUs change their focus on revenue, cost, and customer orientation; however, SSUs do not significantly increase revenue or decrease cost after two-year implementation of BSC.","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"1198 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134145513","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Boundary Spanning in a For-Profit Research Lab: An Exploration of the Interface Between Commerce and Academe","authors":"Toby E. Stuart, Christopher C. Liu","doi":"10.2139/ssrn.1653876","DOIUrl":"https://doi.org/10.2139/ssrn.1653876","url":null,"abstract":"In innovative industries, private-sector companies increasingly are participants in open communities of science and technology. To participate in the system of exchange in such communities, firms often publicly disclose what would otherwise remain private discoveries. In a quantitative case study of one firm in the biopharmaceutical sector, we explore the consequences of scientific publication-an instance of public disclosure-for a core set of activities within the firm. Specifically, we link publications to human capital management practices, showing that scientists' bonuses and the allocation of managerial attention are tied to individuals' publications. Using a unique electronic mail dataset, we find that researchers within the firm who author publications are much better connected to external (to the company) members of the scientific community. This result directly links publishing to current understandings of absorptive capacity. In an unanticipated finding, however, our analysis raises the possibility that the company's most prolific publishers begin to migrate to the periphery of the intra-firm social network, which may occur because these individuals' strong external relationships induce them to reorient their focus to a community of scientists beyond the firm's boundary.","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127751872","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does Diversity Among Co-Investing Venture Capitalists Add Value for Entrepreneurial Companies? Dissertation Executive Summary","authors":"S. Moser","doi":"10.2139/ssrn.1658094","DOIUrl":"https://doi.org/10.2139/ssrn.1658094","url":null,"abstract":"The number of syndicate partners in the first round of venture capital financing is positively related to the success of the entrepreneurial company. I examine whether heterogeneity within the syndicate drives this. I find that syndicates composed of venture capital firms from different geographic regions perform better than syndicates composed of venture capital firms from the same region. But I find that syndicates that are diverse in terms of organizational structure (traditional, corporate, bank, angel) perform no better than those that are not. My results are consistent with the notion that syndicate partners add value through their access to different business ecosystems.","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125490903","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Buyback Monitor – July 2010: Corporate Stock Buyback Profits of 275 Firms 2000-2010","authors":"M. Gumport","doi":"10.2139/SSRN.1635485","DOIUrl":"https://doi.org/10.2139/SSRN.1635485","url":null,"abstract":"This report updates and expands earlier studies to look at the profitability of $349.7 billion of buybacks executed from 2000 through early 2010 by a sample of 275 corporations. The sample companies, drawn mainly from the technology sector, enjoy total equity market value today of $945.6 billion. In the past decade, 67.3% of sampled companies engaged in buybacks. 35.7% of sampled corporate stock buyback programs are currently profitable (64.3% are unprofitable). Without buybacks, share prices for the group now would be at least 5.3% higher (nearly 10% higher after adjustment for foregone interest income). In part because buybacks by less numerous larger companies did better than those of more numerous smaller companies, the typical company suffered a bigger stock price penalty from losses on buybacks in the past decade than the group overall.Companies with equity market value at least near $1 billion who, priced today, executed the most profitable buybacks during the past decade include, in rank order, CRUS, CY and CTXS. Shareholders of each of these companies received a stock price benefit of at least close to 20% due to corporate profits on buybacks. Other major companies whose buyback profits boosted share prices by at least close to 10% include POWI, ADSK, FLIR, STEC, ORCL, EMC, APKT, OVTI, ARRS and NTAP.Companies with equity market value at least near $1 billion who, priced today, executed the most unprofitable buybacks during the past decade include, in rank order, CDNS, DELL, IDTI, NSM, ISIL, MOT, MXIM, KLAC, and AMAT. Absent buybacks, share prices of these firms today would be at least 21% to 98% higher. Buyback losses of a few, smaller companies (ZLC, ENTN, DITC, ADPT) inflicted even greater damage on share prices.","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-07-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132052637","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Relationship between Corporate Culture and Organizational Effectivenss: A Case Study on Zain Telecommunication Limited","authors":"M. Karim","doi":"10.2139/ssrn.1624690","DOIUrl":"https://doi.org/10.2139/ssrn.1624690","url":null,"abstract":"Relationship between corporate culture and organizational effectiveness has been studied over and over in these last twenty years by researchers. Researchers have attempted to figure out a consistent relationship between the variables. Researchers used different models in order to demonstrate the relationship between corporate culture and financial performance prior to the development of Denison corporate culture model. Since the development of it, most of the researchers have been found to utilize Denison model to portray the relationship because of its clarity in regards to explain corporate culture. Denison model has also been utilized in this study in order to demonstrate the relationship between corporate culture and organizational effectiveness. The model is tested on the leading telecommunication company of Jordan – Zain Telecom Limited. In the literature review section of the study, a comprehensive study is presented in order to clarify the relationship between corporate culture and organizational effectiveness. Semi structured interviews with 50 employees has been conducted in order to collect information on different dimensions of corporate culture. Content analysis has been used in order to summarize the information collected from the interviews. In order to measure corporate culture of Zain Telecom, a survey was used where 50 respondents were given a questionnaire each and was asked to fill them in. On the other hand, 5 different indexes were used in order to demonstrate the organizational effectiveness of Zain Telecommunication Limited. It has been concluded that there is a positive and consistent relationship between the corporate culture and organizational effectiveness of Jordan’s leading telecommunication company – Zain Telecommunication Limited.","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"295 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129699330","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Scott D. Graffin, Mason A. Carpenter, Steven Boivie
{"title":"What’s All That (Strategic) Noise? Anticipatory Impression Management in CEO Succession","authors":"Scott D. Graffin, Mason A. Carpenter, Steven Boivie","doi":"10.1002/SMJ.906","DOIUrl":"https://doi.org/10.1002/SMJ.906","url":null,"abstract":"We develop and test a novel theory about strategic noise with regard to CEO appointments. Strategic noise is an anticipatory and preemptive form of impression management. At the time it announces a new CEO, a board of directors seeks to manage stakeholder impressions by at the same time releasing confounding information about other significant events. Several CEO and firm characteristics affect the likelihood that this will happen. Strategic noise is most likely for very long-term CEOs with a wide pay gap between other top managers at high stock price performance firms, and when a new CEO does not have previous CEO experience or comes from a less well-regarded firm. Results showing that CEO succession announcements are noisier than they would be by chance have some interesting implications for impression management theory, traditional event study methodology, and managerial and public policy. Interviews with public firm directors on CEO succession provide additional validity for the strategic noise construct and help us to articulate key elements of the theory.","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121130658","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Building Value and Reputation with Stakeholder Management: The Case of Washington State Investment Board","authors":"T. Whitmarsh","doi":"10.2139/SSRN.1618822","DOIUrl":"https://doi.org/10.2139/SSRN.1618822","url":null,"abstract":"The growing literature on pension governance identifies desirable governance characteristics, and links them to improved organizational performance. However, actual pension plan organization and governance are often a result of a series of historical events and cultural factors. Governance best practices that could feasibly be implemented in one country might be impractical in another. This article focuses on one specific element of governance: stakeholder management. We show that this element has played a critical role in moving Washington State Investment Board toward the optimal end of the governance scale within the legal and historical constraints within which public sector pension funds operate in the United States.","PeriodicalId":347848,"journal":{"name":"Corporate Governance & Management eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130061993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}