How does CEO tenure matter? The mediating role of firm‐employee and firm‐customer relationships

While the direct influence of CEO tenure on firm performance has been examined in the strategy literature, the underlying channels of influence have remained largely unexplored. This article draws upon the career seasons paradigm, learning perspectives, and marketing literature to examine whether firm‐employee and firm‐customer relationships are the pathways through which CEO tenure influences firm performance. Results from the analysis of a large data set reveal that: (1) CEO tenure has a positive and linear association with firm‐employee relationship strength but an inverted U‐shaped association with firm‐customer relationship strength; (2) industry uncertainty intensifies these associations; and (3) firm‐employee and firm‐customer relationship strength mediate the effects of CEO tenure on firm performance. These findings have implications for a more balanced and nuanced view of CEO tenure. Copyright © 2013 John Wiley & Sons, Ltd.     

Semiparametric Estimation of the Intercept of a Sample Selection Model

This paper provides a consistent and asymptotically normal estimator for the intercept of a semiparametrically estimated sample selection model. The estimator uses a decreasingly small fraction of all observations as the sample size goes to infinity, as in Heckman (1990). In the semiparametrics literature, estimation of the intercept has typically been subsumed in the nonparametric sample selection bias correction term. The estimation of the intercept, however, is important from an economic perspective. For instance, it permits one to determine the "wage gap" between unionized and nonunionized workers, decompose the wage differential between different socio-economic groups (e.g. male–female and black–white), and evaluate the net benefits of a social programme.     

Marketers’ use of alternative front-of-package nutrition symbols: An examination of effects on product evaluations

How front-of-package (FOP) nutrition icon systems affect product evaluations for more and less healthful objective nutrition profiles is a critical question facing food marketers, consumers, and the public health community. We propose a conceptually-based hierarchical continuum to guide predictions regarding the effectiveness of several FOP systems currently used in the marketplace. In Studies 1a and 1b, we compare the effects of a broad set of FOP icons on nutrition evaluations linked to health, accuracy of evaluations, and purchase intentions for a single product. Based on these findings, Studies 2 and 3 test the effects of two conceptually-different FOP icon systems in a retail laboratory in which consumers make comparative evaluations of multiple products at the retail shelf. While there are favorable effects of each system beyond control conditions with no FOP icons, results show that icons with an evaluative component that aid consumers’ interpretations generally provide greater benefits (particularly in product comparison contexts). We offer implications for consumer packaged goods marketers, retailers, and the public policy and consumer health communities.     

Is There a Trade-Off Between Accrual-Based and Real Earnings Management Activities in the Presence of (fe) Male Auditors?

Journal of Business Ethics - Prior research suggests that the presence of high-quality auditors (i.e. proxied by audit firm characteristics) constrains accrual-based earnings management, but it...     

Model identification for infinite variance autoregressive processes

We consider model identification for infinite variance autoregressive time series processes. It is shown that a consistent estimate of autoregressive model order can be obtained by minimizing Akaike’s information criterion, and we use all-pass models to identify noncausal autoregressive processes and estimate the order of noncausality (the number of roots of the autoregressive polynomial inside the unit circle in the complex plane). We examine the performance of the order selection procedures for finite samples via simulation, and use the techniques to fit a noncausal autoregressive model to stock market trading volume data.     

Business corruption in the Asia Pacific region: recapitulation and prospects

ABSTRACT

Corruption in its multiple guises remains one of the most discussed, yet under-researched, influences affecting business practice and organization management in Asia. Comprising conceptual and empirical approaches to explore both national and region-level examples, the research contained in this collection epitomize some of the many challenges involved. As a contribution, collectively the research go some way to advance our understanding of the causes, conditions and manifestations of corruption in Asian business, as well as to highlight the implications for practice in seeking to manage the consequences. However, further studies are required to consolidate, deepen and extend both how we perceive and engage with Asian business corruption. Opportunities for theoretical and practical advancement include revisiting the meaning(s) of the term ‘corruption’ itself, corruption as an informal institution, the moderating factors which connect corruption to process, performance and consequences and, finally, the methodological challenges involved in relevant empirical data collection and analysis.     

Estimating youth training wage differentials during and after training

We compare wages between school leavers who participate in government-fundedyouth training and those who do not. Using a subset of all schoolleavers in Lancashire between 1988 and 1991, we find that wagedifferentials are large and negative for all types of participantwhen training. Once training finishes, differentials are smallbut still negative. There is no evidence that participants havesteeper wage profiles. A ranking of lifetime wages suggeststhat the occupations chosen by participants may offer positivereturns compared to occupations with no training. The largestimpact comes at the firm level: training providers pay lowerwages to both ex-participants and non-participants.     

Do Company Directors Underestimate the Adoption of Corporate Governance Provisions？ A Survey Approach

This paper examines whether company directors underestimate the adoption of corporate governance provisions within Ghanaian listed firms. Using a survey approach, the respondents, who were company executives and non-executive directors with knowledge of the Ghanaian Code and its provisions, regard the code as a benchmark for good corporate governance practices within Ghanaian listed firms. They also report some improvement in the standard of corporate governance in their companies since the introduction of the Code. Many of the company directors indicated their preparedness to comply with further corporate governance requirements, such as the adoption of a formal nomination committee something not been currently included in the Ghanaian Code. However, the directors noted that they receive inadequate support from the regulatory and institutional bodies for the implementation of the Ghanaian Code provisions. Many of the directors also supported the review of the Ghanaian Code by an independent committee. With regard to the adoption of the Ghanaian Code and its influence on firm performance, the respondents indicated that the adoption of the specific governance provisions in the area of chief executive officer （CEO）/chairman roles separation, having a balance of executive and non-executive directors on the board, the establishment of audit and remuneration committees, and the full adoption of the Ghanaian Code provisions were all influential in determining firm performance. They, however, did not support the adoption of the board size provision as influential to firm performance. This raises questions about the usefulness of the range of board size as recommended by the Ghanaian Code.     

Testing with many weak instruments

This paper establishes the asymptotic distributions of the likelihood ratio (LR), Anderson–Rubin (AR), and Lagrange multiplier (LM) test statistics under “many weak IV asymptotics.” These asymptotics are relevant when the number of IVs is large and the coefficients on the IVs are relatively small. The asymptotic results hold under the null and under suitable alternatives. Hence, power comparisons can be made.     

The impact of corporate social disclosure on investment behavior: A cross-national study

We examine the impact of corporate social disclosure (CSD) on investment behavior in the US, Japan, France, and Sweden using stakeholder theory as the underlying framework for our analysis. We find that there is a significant difference in investors’ reactions to CSD across countries. Using a unique stakeholder scale we also find that these reactions are related to the investors’ stakeholder orientation. These findings provide insight into cross-national differences in the perceived relevance of CSD to investors.