Bank monitoring,managerial ownership and Tobin's Q: an empirical analysis for India

The paper examines how banking relationships and managerial ownership relate to firm valuation. It is argued that both the number of banking relationships (which serves as an external monitoring function) and managerial ownership (which serves as an internal monitoring function) affect firm value, while internal monitoring by managers and external monitoring by banks were viewed as substitutes or complements. After controlling for the effect of exogenous variables, the results reveal the existence of a complementary monitoring effect between banks and the managerial group. On the other hand, the results indicate that increased external monitoring by banks will simultaneously raise the incentive on the part of managers to engage in internal monitoring. Also, firm valuation is found to be a significant determinant of managerial ownership. A disaggregated analysis of firms according to size and leverage suggests the existence of a complementary monitoring effect between banks and managers, except for small‐sized firms. Copyright © 2007 John Wiley & Sons, Ltd.     

INFORMATION EXTERNALITIES, SHARE-PRICE BASED INCENTIVES AND MANAGERIAL BEHAVIOUR

Abstract. We survey recent theoretical research on the effects of short-term share-price based managerial incentive schemes. Such schemes can induce inefficient managerial behaviour in both hidden action and hidden type contexts. These problems arise from informational asymmetries: managers take actions to manipulate the information flow rather than to maximize firm value. More generally, imperfect transmission of information between managers and shareholders or between managers of different firms can lead to similar distortions even when the parties' interests are aligned.     

激励理论在企业管理中的运用

通过描述企业组织结构与激励机制的历史与现状,揭示了组织结构、激励机制与组织绩效的关系。在企业管理过程中,管理者每时每刻都有意或无意地使用某种激励手段去激励下属做好本职工作。本文通过对激励理论的回顾、激励机制的设计、激励模式的介绍以及如何寻求最佳的激励等方面来论述激励理论在企业管理中的一些应用,旨在为企业管理者的管理实践提供借鉴。     

Managerial Ownership and Earnings Management: Theory and Empirical Evidence from Japan

This paper examines the relationship between managerial ownership and opportunistic managerial behavior relating to earnings management. Economics theory identifies two apparently conflicting effects of managerial ownership on managers' incentives: the incentive alignment effect and the management entrenchment effect. We construct a theoretical model demonstrating the two effects. This model suggests that as managerial ownership increases, earnings management decreases for both high and low levels of managerial ownership, while it increases for intermediate levels of managerial ownership if the sensitivity of the probability of managerial dismissal to the corporate performance is high enough and/or the manager's private benefit derived from managerial position is high enough. In a sample of Japanese firms, we find a significant nonmonotonic relationship between managerial ownership and discretionary accruals, consistent with our model.     

AN INVESTIGATION OF THE RELATIONSHIP BETWEEN ORGANIZATIONAL STRUCTURE, MANAGERIAL ROLE EXPECTATIONS AND MANAGERS' WORK ACTIVITIES

Having demonstrated the absence in the literature of an adequate conceptual treatment or empirical examination of the substantive relationship between managerial work, managers' role expectations and forms of organizational structure, the paper reports the findings of a multimethod comparative case study of this relationship in four organizations from the hotel and retail sectors in Zimbabwe. Focusing on the differences between centralized organizations where unit operations are tightly regulated and decentralized organizations where unit operating autonomy is coupled with performance controls, the findings indicate that organizational structure impinges primarily upon the formal management division of labour, more weakly upon the role expectations surrounding unit managers and in only limited ways upon their work activities, with the effect of organizational differences co-existing with and refracted by common work characteristics and inter-industry differences. Although decentralization gave rise to unit manager jobs with more formal autonomy, broader responsibilities, greater pressure to attend to unit performance rather than monitoring work processes, and an obligation to operate in more complex networks, managers were no more free of constraints than were those in more centralized organizations and operated in similar ways, with an emphasis on day-to-day administration and routine staffing matters.     

Sink or Swim: Empowering Leadership and Overload in Teams' Ability to Deal with the Unexpected

The notion of improvisation has recently emerged in managerial studies as a viable solution to flexibly dealing with unexpected occurrences in work environments. However, past research on team improvisation has overlooked the contingencies that allow teams to effectively improvise. Drawing upon demand‐control theory, we investigate how empowering leadership and overload affect the improvisation‐performance relationship in the context of 48 work teams. Our results suggest that empowering leadership positively moderates the relationship between improvisation and performance, while overload attenuates the same relationship. Moreover, we found a joint effect of overload and empowering leadership influencing the improvisation‐performance link, such that improvisation is most positively related to performance when empowering leadership is high and overload is low. Conversely, we found that empowering leadership is particularly detrimental to the improvisation‐performance relationship when team members perceive high degrees of overload. Our findings make important contributions to the extant team literature as well as to the emerging literature on team improvisation. We outline several significant insights for HR managers and team leaders who are responsible for supporting teams that face unexpected events in the work environment. © 2013 Wiley Periodicals, Inc.     

Career Concerns and Product Market Competition

This paper studies the effect of increased competition in the product market on managerial incentives. I propose a simple model of career concerns where firms are willing to pay for managerial talent to reduce production costs, but also to subtract talented executives from competitors. This second effect is privately valuable to firms, but is socially wasteful. As a result, equilibrium pay for talent can be inefficiently high and career concerns too strong. Explicit incentive contracts do not solve the problem, but equilibrium pay is reduced if managerial skills have firm‐specific components, or if firms are heterogeneous. In this second case, managers are efficiently assigned to firms, but equilibrium pay reflects the profitability of talent outside the efficient allocation. The effect of increased competition is ambiguous in general, and depends on the profit sensitivity to cost reductions. This ambiguity is illustrated in two examples of commonly used models of imperfect competition.     

Net-zero emission targets and the role of managerial environmental awareness,customer pressure,and regulatory control toward environmental performance

To avoid the worst effects of global warming, countries agreed to limit warming below 2.0°C and ideally to 1.5°C preindustrial level. This requires countries to drop half of their greenhouse gas emission by 2030 and reach net-zero emission by 2050. In this regard, current study explores the role of green production as a mediator in the impact of managerial environmental awareness, customer pressure, and regulatory control on environmental performance. The data collected from 381 managers was analyzed using structural equation modeling (SEM) technique. Results indicate that customer pressure, regulatory control, and managerial environmental awareness play a pivotal role toward green production, whereas only managerial environmental awareness among them directly influences environmental performance. Green production fully mediates the relationship from customer pressure and regulatory control to environmental performance. However, it partially mediates the relation between managerial environmental awareness and environmental performance. Similarly, the importance of green production for environmental performance is highlighted.     

Managing work-life policies: disruption versus dependency arguments. Explaining managerial attitudes towards employee utilization of work-life policies

What factors shape managerial attitudes towards the utilization of work-life policies? The influence of disruptiveness (Powell and Mainiero 1999) and dependency (Klein, Berman and Dickson 2000) arguments on managerial attitudes is examined using a vignette design. In this study, managers in four financial firms in the UK and the Netherlands were asked to judge hypothetical requests from employees to utilize work-life policies. Findings indicate that managers are mainly interested in the performance of their department or work unit, and work-life policies are often seen as disruptive. However, when the least disruptive request is considered (short-term leave), we find that dependency arguments also play an important role and managers are more likely to respond to their employees' personal and family needs.     

投资机会、审计风险与审计质量研究

审计可以被视为解决公司代理问题的一种监控机制,是一项能够约束管理者机会主义行为的制度安排.以我国2004年--2008年只发行A股的上市公司为研究样本,在控制样本自选择偏误的基础上,检验审计质量、投资机会和可操控性应计的关系后发现:高投资机会公司的股东为监督公司的管理者有动机选择高质量的审计;同时,投资机会越大的公司,其可操控性应计越高,即高投资机会公司的注册会计师面临着更高的审计风险;而注册会计师为了降低审计风险和被诉讼的风险,也有动机提高自身的审计质量,从而遏制被审单位的可操控性应计.     

Testing two mechanisms linking work-to-family conflict to individual consequences: do gender and gender role orientation make a difference?

Based on social role theory and a gender role orientation perspective, this study extended the two mechanisms (i.e. resource depletion and source attribution) that link work-to-family conflict to perceived accomplishment in the family and work domains by testing the moderating effects of gender and gender role orientation on the relationships. Data were collected from managers via questionnaires in China, and 225 cases were analyzed with hierarchical regression models. The results showed that compared with female managers, the negative relationship between work-to-family conflict and perceived family accomplishment was stronger for male managers. Within the male group, we found that the negative relationship between work-to-family conflict and perceived family accomplishment was stronger for male managers with an egalitarian gender role orientation than those with a traditional gender role orientation. In addition, for male managers with a traditional gender role orientation, there was a positive relationship between work-to-family conflict and perceived work accomplishment. The theoretical and managerial implications are discussed.     

Entrenched management,capital structure changes and firm value

The relationship between managerial share ownership and the firm’s change in leverage around a security issuance is examined. We find that entrenched managers are not more likely to issue equity, however they do affect lower leverage by choosing debt issuances which are smaller and equity issuances that are larger than those chosen by managers that are not entrenched. The magnitude of the decline in leverage that occurs from before the issuance to after the issuance is positively related to managerial share ownership. In addition, this relationship is confined to only the “entrenchment” range of managerial share ownership. The market reacts negatively to an issuance announcement when managerial share ownership is high.

International work in domestic jobs: an individual explanation

Australian firms are attempting to internationalize and to become global companies. One way of staffing the forays into international business is by incorporating international work into domestic jobs. This study sought to understand the factors related to the amount of international work Australians perform in their domestic jobs. Alumni from an Australian university were surveyed, providing 1,046 full-time domestic employees working in a range of industries. Regression analysis showed that, beyond individual and organizational controls, employees performed more international work in domestic jobs when they worked in organizations at higher than at lower international levels with human resource support, worked in jobs at higher rather than at lower managerial levels and had international skills. However, there was no or little link with employees' international attitudes or family situation. As predicted, the managerial level of the job made a difference to the effects of the work environment. Working in MNCs and domestic organizations with operations abroad was related to the amount of international work in domestic jobs performed by senior managers and executives more than by lower and middle managers or subordinates and supervisors. Analysis of open-ended responses shows the major reasons Australians take up domestic international work are money, professional development and challenging content. The major reasons they would not are family commitments and disruption, in contrast to the quantitative results in which family factors are unimportant. The difference between the quantitative and qualitative results and the importance of family factors, international skills versus attitudes and human resource support are discussed.     

A study of impending derailment and recovery of middle managers across career stages

Why do some fast‐track managers derail? Why do some recover and return to the fast track? This study investigates these questions by analyzing managerial skills and self‐awareness during different career stages. The results suggest that derailers have significantly lower skill profiles than do successful managers at all career stages. The study also identifies specific skills that managers need to be successful in their careers; furthermore, it reports that derailers overestimate their skills in comparison to successful managers at all career stages. The results imply that one can avoid derailment or recover from derailment by developing both self‐awareness and specific managerial skills. © 2000 John Wiley & Sons, Inc.     

Managerial Technologies, Ethics and Managing

ABSTRACT   This paper engages with a key element of Legge's work: the relationship between the technical and the moral in the application of managerial technologies, and how managers manage these different layers of meaning. Taking business planning and performance measurement as an example of managerial technologies, these are analysed for the extent to which they allow for an engagement with an ethical position, using Legge's (1978 ) characterization of the role of managerial technologies originally identified in Power, Innovation and Problem Solving in Personnel Management . The inter-related elements of the technical, the ethical and the practical are then used to explore how managers construct the meaning of management and their implications for Legge's more recent deontological and teleological ethical framework.     

Moral hazard,debt overhang and capital structure

This paper investigates the impact of managerial moral hazard on the debt overhang of a firm by constructing a contingent claims model in which the manager faces costly effort. Using a calibrated capital structure model, we show that the costs of debt overhang become more serious in the presence of managerial moral hazard. Such costs even account for more than half of the total agency costs at a high level of cash flow. Moreover, in contrast to the results of Hackbarth and Mauer (2012), our model predicts a U-shaped relationship between the leverage ratio and investment opportunities of a firm, which is caused by managers’ moral hazard. Finally, by considering this moral hazard, we also show the coexistence of low leverage ratios and high credit spreads, which explains the phenomenon of “low debt levels and high credit spreads” observed in practice.     

A qualitative study of high-reputation plant managers: Political skill and successful outcomes

There has been little systematic study of what plant managers actually do on a day-to-day basis that accounts for their success in achieving organizational outcomes. In our field interviews and observations of high-reputation plant managers from 11 manufacturing plants, we found that effective political skill enabled them to influence subordinates in ways that contributed positively to organizational outcomes. Political skill is an interpersonal style that combines social astuteness with the ability to relate well, and otherwise demonstrate situationally appropriate behavior in an engaging way that inspires confidence, trust, and genuiness [Ferris, G.R., Perrewé, P.L., Anthony, W.P., Gilmore, D.C., 2000. Political skill at work. Organizational Dynamics 28 (4), 25–37]. We observed that effective plant managers possessed a configuration of dispositional traits (self-motivation, sense of humility, and affability), systematically employed interpersonal behaviors (creating accountability, leading by example, and developing trust), and focused on managerial processes (stretch goals, influencing and learning from below, and empowering direct reports). By juxtaposing the political skill and power literatures, we propose a theory of plant manager effectiveness as a combination of political skill and the use of unobtrusive and systemic power to achieve both affective and substantive outcomes.     

Worker voice,managerial response and labour productivity: an empirical investigation

This article investigates the relationship between worker voice practices, employee perceptions of managerial responsiveness and labour productivity. It argues that managerial responsiveness is a critical but under‐investigated variable in the study of the relationship between worker voice, human resource management and performance. Our results suggest that managerial responsiveness to worker voice does lead to superior labour productivity. However, this relationship is only found in non‐union workplaces and there is little relationship between formal voice regime and productivity. One important implication of this finding is that more responsive management will result in improved productivity, so policy interventions should focus on how to motivate managers to become more responsive to their employees.     

Career planning and development

The career planning process is often illustrated as the last step in an ever-changing work environment. The technical, professional, managerial, and interpersonal skills to successfully perform and succeed in this rapidly changing work environment are essential. There is a very real and immediate threat that many of the professional skills that we have learned yesterday and today will be obsolete and insufficient to cope with the inevitable changes in the future. While most professionals are aware of the very real threat of skill obsolescence, few take the opportunity to do definitive career planning regarding their future. The career planning process is designed to help individuals examine their careers; evaluate their training and educational needs; and develop some specific action plans to maintain, enhance, and reevaluate the relevance of their professional and managerial skills in a work environment that values rapid change and adaptation.     

高管激励、R&D投入与高新技术企业绩效——基于内生视角下的研究

基于内生视角,选取2009—2017年A股中小板块的高新技术企业数据为研究样本,以附加价值的资本增值率来衡量企业绩效状况,构建联立方程组模型,实证分析研发投入、管理者薪酬激励和股权激励对高新技术企业绩效的影响。研究结果表明：薪资激励对R&D投入和企业绩效均存在倒U型关系,股权激励与企业绩效正相关,与R&D投入存在倒U型关系,R&D投入对当期企业绩效存在负向影响,但其对企业绩效的滞后效应为正。进一步研究发现,上述结论在民营企业中普遍存在,而在国有企业中并不明显。