Grounded in the upper echelons perspective and stakeholder theory, this study establishes a link between CEO hubris corporate social responsibility (CSR). We first develop theoretical argument that is negatively related to firm's socially responsible activities but positively its irresponsible activities. then explore boundary conditions of effects how these relationships are moderated by resource dependence mechanisms. With longitudinal dataset S&P 1500 index firms for period 2001–2010, we...

This study examines the impact of female board representation on firm-level strategic behavior within domain mergers and acquisitions (M&A). We build social identity theory to predict that greater a firm's will be negatively associated with both number firm engages in and, conditional doing deal, acquisition size. Using comprehensive, multiyear sample U.S. public firms, we find strong support for our hypotheses. demonstrate robustness findings through use difference-in-differences analysis...

Research Summary : While prior studies have predominantly shown that CEO narcissism and hubris exhibit similar effects on various strategic decisions outcomes, this study aims to explore the mechanisms underlying how narcissistic versus hubristic CEOs affect their firms differently. Specifically, we investigate peer influence moderates narcissism/hubris—corporate social responsibility (CSR). With a sample of S&P 1500 for 2003–2010, find positive relationship between CSR is strengthened...

We examine how chief executive officer (CEO) narcissism influences the interorganizational imitation of corporate strategy. theorize that narcissistic CEOs are influenced more by strategies they experienced on other boards and less directors. These effects strengthened if firms to which CEO has interlock ties have high status is powerful. Through longitudinal analyses Fortune 500 companies’ decisions (from 1997 2006) related acquisition emphasis a firm’s growth strategy level international...

Firms often make mistakes, from simple manufacturing overruns all the way to catastrophic blunders. However, there is considerable heterogeneity in nature of corporate responses when faced with evidence that an error has taken place, and, therefore, likelihood such errors will reoccur future. In this paper, we explore important but understudied influence on firms' corrective feedback—a CEO's level overconfidence. Using multiple distinct measures overconfidence and empirical context voluntary...

Abstract Research Summary How will a chief sustainability officer (CSO) influence corporate social performance? Building upon the upper echelons perspective and attention‐based view, this study argues that while CSO helps channel managerial attention to firm's domain, is more likely be directed negative issues than positive issues. In addition, such relationships are contingent on focal governance design its industry culpability. Analysis of sample S&P 500 firms for period 2005–2014...

We explain why CEOs favor new directors who are similar in narcissistic tendency or have prior experience with other similarly CEOs. Because powerful more able to select such individuals onto their boards, CEO power is predicted be positively associated the above characteristics of directors. These associations expected stronger when a director different from salient demographic characteristics. Moreover, we favored by supportive decision making, strengthening positive relationship between...

Research on the impact of CEO attributes firm performance is sporadic and fragmented, with various studies addressing select pieces puzzle. Through synthesizing integrating diverse theoretical perspectives functioning executives, this article advances a sequential mediation process model to link performance. The incorporates emotion cognition, along top management team (TMT) organizational processes as multilevel mediating mechanisms linking outcomes. In addition, we draw from event system...

Countering the widely held view that chief executive officer (CEO) succession is generally beneficial in turnaround situations, we adopt an fit/refit logic, proposing implications of CEO replacement depend integrally on incumbent's degree misfit and successor's fit to contextual conditions at hand. Drawing from prior research, identify several prominent forms fit/misfit are especially germane troubled firms. In testing our hypotheses, find substantial support for theory: companies have...

We describe two theoretical explanations for the amount, pace, and costs of prestige enhancement a firm engages in during year before its initial public offering. The "snowball model" captures well-known processes whereby prestige-rich organizations accumulate even more prestige. "dressing-up builds upon deadline-induced remediation, phenomenon not previously studied macro-organizational context. In 242 software IPOs, snowball model substantially explains final-year prestigious hiring. But...

Drawing on chief executive officer (CEO) succession research and the impression management literature, we examine earnings by interim CEOs, its impact CEOs' promotion prospects, moderating effect of governance mechanisms relationship between two. Based a sample 145 CEO events in U.S. public firms from 2004 to 2008, find that (a) an is more likely than noninterim engage improve firm performance ("income-increasing management"), (b) greater income-increasing management, it will be promoted...

In this study, the authors investigate why CEOs seem to be held more accountable for poor firm performance in some countries than others. The article integrates research from comparative corporate governance and agency theory identify evaluate four fundamental assumptions underlying most theoretical arguments linking dismissal: (1) are personally responsible outcomes; (2) boards/owners have power dismiss CEOs; (3) measures meaningful; (4) suitable alternative candidates CEO role available....

This study explores the implications of interfirm status differentials for firm behaviors in corporate takeover transactions. We argue that more differential between two firms is aligned with expectations their roles embedded specific economic activity, easier it them to agree on appropriate means reach consensus transaction. Using empirical context U.S. market, we found greater an acquirer and a target, positively market reacts both target upon announcement acquisition deal, likely deal be...

Our paper examines the initial compensation of new CEOs hired in turnaround situations. Building on prior literature executive job demands, we posit that situations will receive higher pay, particularly performance-based and pay premium incentivize them to undertake retrenchment restructuring initiatives. An interaction between CEO credentials is shown have a stronger effect extent which firms engage such empirical results, based 98 223 situations, largely support our arguments. We discuss...

Abstract Research Summary To address endogeneity concerns stemming from firm‐CEO matching, we deploy a two‐sided matching model that identifies the complementarities arising CEO‐firm match and subsequently account for these in empirical tests. Applying this approach, examine how nature of CEOs' human capital affects acquisition behavior performance firms. We find generalist CEOs (CEOs with broader set knowledge skills) are more likely to engage unrelated acquisitions than specialist narrower...

Research summary : We argue that firms with greater specificity in knowledge structure need to both encourage their CEOs stay so they make investments a long‐term perspective, and provide job securities the are less concerned about risk of being dismissed. Accordingly, we found empirical evidence firm assets is positively associated use restricted stocks CEO compensation design (indicating effort retention) negatively dismissal committed CEOs). Furthermore, diversification was mitigate...

We provide large-scale empirical evidence of how much chief executive officers (CEOs) change corporate culture. To do this, we use employee reviews to measure cultural in S&P 1500 firms. In a variance decomposition analysis, find modest effect CEOs on change. The is larger than industry but smaller firm effect. Regression analysis the context CEO succession further shows consistent addition, relationship between and not likely be fully explained by time trend, reverse causality, sample...

Abstract Despite a growing interest in understanding how board diversity shapes firms’ innovation, findings about the impact of have remained mixed. In this paper, we conceptualize as two forms – deep‐level and surface‐level find that these opposing effects on firm's innovation. We also theorize formal informal social structures can strengthen positive effect yet simultaneously weaken negative diversity. test our hypotheses with panel 42,432 firm‐year observations from 2000 to 2019. Our...

Multinational corporations (MNCs) often assign expatriate executives overseas to transfer knowledge, yet prior research has not specifically examined the utilization of expatriates as a strategic resource facilitate knowledge and enhance foreign direct investment performance. Drawing from resource-based view firm international strategy literature, authors argue that assignment particular subsidiary will performance transferred into through mediate this relationship. Results based on MNCs’...

To better understand whether the transition by Asian countries toward market economies mirrors path taken in West, we ask how embedded network ties between equity analysts and chief executive officers (CEOs) of firms that they follow India influence accuracy analysts' earnings forecasts. We contrast traditional institutions caste regional language with contemporary institutions, such as universities, locus ties. posit CEOs from postreform generation are more likely to transfer material...

Mortality salience—the awareness of the inevitability death—is often traumatic. However, it can also be associated with a range positive, self-transcendent cognitive responses, such as greater desire to help others, contribute society, and make more meaningful contribution in one’s life career. In this study, we provide evidence link between chief executive officer (CEO) mortality salience—triggered by death director at same firm—and subsequent increase firm-level prosocial behavior or...

Abstract Research Summary Using a principal–principal agency theory lens, we examine corporate governance and compensation design in family‐owned businesses. We conceptualize how CEO pay pay‐performance sensitivity is influenced by whether the professional or drawn from controlling family (family CEO). Data sample of 277 publicly listed Indian firms during 2004–2013 support our argument that CEOs get paid more than CEOs. This pattern stronger superior‐performing are named after (eponymous...

Abstract This study examines how CEOs' internal attribution tendency – to attribute an observed outcome factors shapes the extent which corporate downsizing activities are driven by performance shortfalls. Despite known effectiveness of in creating leaner organizations and enhancing firm performance, CEOs often avoid it as runs counter their own interests. Applying awareness‐motivation‐capability (AMC) framework, we argue that influences awareness responsibility for shortfalls, ultimately...

Recent research has shown that a CEO's personal experiences in his or her early days have an influence on decision-making as executive later on. Our study extends this emerging stream of by examining how CEOs’ pre-career exposure to religion affects their firms’ risk-taking and subsequent innovation performance. Drawing upon developmental psychology imprinting theory, we argue CEOs who attended religious college are more likely develop reinforce risk-averse mentality. This carries over...