Can TMT vertical pay disparity promote firm innovation performance? The moderating role of CEO power and board characteristics

Zhong, Xi; He, Wan Tao; Ren, Ge

doi:10.1108/ejim-10-2020-0434

Cited by 24 publications

(37 citation statements)

References 71 publications

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“…Second, since corporate governance has been found to significantly affect firm innovation performance (Balsmeier et al., 2017; Zhong et al., 2021), we controlled for a set of variables related to internal and external corporate governance. Internal corporate governance variables include board independence , board size , female director , board age , and academic director .…”

Section: Methodsmentioning

confidence: 99%

“…Signaling Environment be exclusively relied upon (Wang, Stuart et al, 2021). Most scholars consider the number of patents to be the most important and reasonable form of innovation output (Li et al, 2018;Zhong et al, 2021).…”

Section: Social Trustmentioning

confidence: 99%

“…As an alternative, scholars from emerging economies often use the number of patent applications or patent grants to measure firms' innovation performance (Li et al, 2018;Zhong et al, 2021). In this paper, we chose the number of patent applications rather than the number of patent grants for two reasons.…”

Section: Social Trustmentioning

confidence: 99%

“…Second, since corporate governance has been found to significantly affect firm innovation performance (Balsmeier et al, 2017;Zhong et al, 2021) Third, as the decision-makers and executors of innovation strategies, executives are also seen as having important influences on the innovation performance of firms (Cummings & Knott, 2018;Zhong et al, 2021), so we also controlled for decision-maker-level variables (Zhong et al, 2021), including top management team size (TMT size), CEO international experience, and duality. TMT size was measured by the total number of members of the top management team.…”

Section: Independent Variable Corporate Fraud According To the Chinamentioning

confidence: 99%

“…While innovation is important, improving firm innovation performance is constrained by a number of factors, particularly information asymmetry (Nestle et al., 2019). Specifically, characteristics inherent to innovation activities, such as large inputs and high output uncertainty (Zhong et al., 2021), increase the degree of information asymmetry between firms and core stakeholders. This dynamic often leads to difficulties in accessing critical innovation resources, which ultimately constrains a firm's innovation performance.…”

Section: Introductionmentioning

confidence: 99%

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Corporate fraud as a negative signal: Implications for firms’ innovation performance

Ren

Zeng

Song

2022

Business Ethics Env & Resp

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Based on signaling theory, we explore the impact of corporate fraud on firms' innovation performance. First, we propose that corporate fraud harms firms' innovation performance. This is because, as a negative signal, fraud makes it difficult for firms to obtain the policy, funding, and human resources needed for outstanding innovation performance. We further argue that the institutional aspects of the signaling environment (e.g., industrial competition, regional institutional development, and social trust) will influence core stakeholders' reception and interpretation of fraud signals. These factors, in turn, moderate the signaling effect of corporate fraud on firms' innovation performance. Our views are supported by empirical and robustness tests using Chinese A-share listed firms from 2010 to 2019.

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Section: Methodsmentioning

confidence: 99%