Evenhandedness in Resource Allocation: Its Relationship with CEO Ideology, Organizational Discretion, and Firm Performance

Gupta, Abhinav; Briscoe, Forrest; Hambrick, Donald C.

doi:10.5465/amj.2016.1155

Cited by 117 publications

(120 citation statements)

References 68 publications

Supporting

Mentioning

114

Contrasting

Unclassified

Order By: Relevance

“…CEO duality is measured as a dummy variable that takes the value of 1 if the CEO is also the chairman of the board. CEO compensation, which can increase the positive effect of CEO ideology on corporate resource allocation (Gupta, Briscoe, & Hambrick, ), is captured by utilizing the base‐10 logarithm of CEO salary at the end of last year. The positive link between firm financial performance and CEO gender (i.e., a dummy variable that takes the value of 1 if the CEO is female) has also been investigated (Campbell & Mínguez‐Vera, ).…”

Section: Methodsmentioning

confidence: 99%

Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

Jia

Wei

2019

Bus Strat Env

View full text Add to dashboard Cite

We draw upon the stigma literature and strategic stakeholder management model to develop a framework capable of explaining the link between environmental corporate social responsibility (ECSR) engagement and financial performance of stigmatized firms, taking stakeholder-oriented governance and density of local stigmatized firms into consideration. Using a uniquely compiled dataset of Chinese firms specifically monitored by the Ministry of Environmental Protection of China, we conducted propensity score matching analysis to estimate the impact of stigma on corporate financial performance and corporate environmental responsibility. The result shows that the financial performance of stigmatized firms is negatively affected by the stigma label, spurring them to engage in more ECSR than their peers to improve their legitimacy. Though ECSR engagement of stigmatized firms is found to be negatively associated with their financial performance in current study. Our results also confirm that (a) the financial performance of stigmatized firms is positively affected by two proxies for corporate stakeholder-oriented governance (i.e., institutional ownership and corporate transparency) and negatively affected by the density of local stigmatized firms;(b) corporate stakeholder-oriented governance compensates for the negative effect of ECSR engagement; (c) high intensity of local stigmatized firms provides focal firms with an opportunity to improve their financial performance through ECSR engagement; and (d) the positive effects of corporate stakeholder-oriented governance are diminished by the density of local stigmatized firms. KEYWORDS density of local stigmatized firms, environmental CSR engagement, financial performance, propensity score matching, stakeholder-oriented governance, strategic stakeholder management

show abstract

Section: Methodsmentioning

confidence: 99%

Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

Jia

Wei

2019

Bus Strat Env

View full text Add to dashboard Cite

show abstract

“…Gupta and Wowak (2017, p. 8) describe this mechanism, noting, "their more pronounced beliefs in external causes of performance should lead liberal boards to view CEOs as having a lower potential contribution." Such ideologically informed reluctance to make internal attributions will systematically lower liberal boards' desire to grant outsized rewards or punishments to their CEOs (Chin & Semadeni, 2017;Gupta et al, 2018). These arguments suggest that board political ideology moderates our main moderating hypothesis.…”

Section: Moderating Role Of Board Political Ideologymentioning

confidence: 74%

“…We theorize that board political ideology should work together with corporate-level strategic investment so that the moderating relationship of Hypothesis 1 will be especially strong for conservative-leaning boards. When conservative boards evaluate CEOs that have made considerable strategic investments, it gives them an obvious reason to make internal attributions (Gupta, Briscoe, & Hambrick, 2018). Conservative boards are likely to tie strategic investments to firm performance because doing so fits their ideological convictions regarding individuals being responsible for outcomes (Chin & Semadeni, 2017;Christensen, Dhaliwal, Boivie, & Graffin, 2015).…”

Section: Moderating Role Of Board Political Ideologymentioning

confidence: 99%

Placing their bets: The influence of strategic investment on CEO pay‐for‐performance

Shi

Connelly

Mackey

et al. 2019

Strategic Management Journal

Self Cite

View full text Add to dashboard Cite

Research Summary A number of studies examine the extent to which boards compensate CEOs for their firm's performance (i.e., pay‐for‐performance), but these studies typically do not incorporate what CEOs actually do to bring about those performance outcomes. We suggest that directors will make stronger internal attributions about firm performance when the CEO engages in high levels of corporate strategic investment. CEOs that invest in firm growth essentially “place their bets,” so the pay‐for‐performance relationship is stronger for them than it is for CEOs who do not invest as much in firm growth. We also theorize and find that directors make internal attributions about firm performance more for prestigious, but not less prestigious, CEOs and more when the directors collectively exhibit conservative, but not liberal, political ideologies. Managerial Summary Shareholders and other stakeholders often demand that CEOs should be paid for performance. In other words, CEOs should be paid well when the company is performing well and paid less when the company is not performing well. We add an additional dimension: boards might also consider what CEOs actually do to bring about performance outcomes. Our findings suggest that when CEOs make heavy corporate investments, they essentially “place their bets.” In this scenario, boards attribute performance to the CEO so that CEO compensation rises and falls with company performance. When CEOs make fewer corporate investments, their compensation is not as strongly associated with company performance. This primary relationship is particularly true when CEOs have high social recognition or when the directors are collectively conservative.

show abstract

“…The influence of political factors on stakeholders in business management Political ideology shape consumer's preferences for differentiation [125,126] Managers' political ideology [127] State ownership and firm innovation [101] •…”

Section: Gap Enlightening Literature Insightsmentioning

confidence: 99%

Visualizing Sustainability Research in Business and Management (1990–2019) and Emerging Topics: A Large-Scale Bibliometric Analysis

Jia

Wei

2019

Sustainability

View full text Add to dashboard Cite

While researchers from many disciplines are increasingly interested in studying issues related to sustainability, few studies have presented a holistic view of sustainability from the perspectives of business and management. This bibliometric study quantitatively analyzed a big data set of 30 years of sustainability research (1990–2019), consisting of 37,322 publications and 1,199,398 cited references, visualizing major topics, dynamic evolution, and emerging development. The decade-by-decade in-depth analysis shows a clear shift from a nearly exclusive focus on economic growth and consumption to all three pillars of sustainability, i.e., economic growth, social development, and environmental protection. Highlighting the differences between United Nations’ Sustainable Development Goals and the popular research topics from academia, our analysis uncovers research gaps and suggests future research directions for sustainability researchers and practitioners.

show abstract

Evenhandedness in Resource Allocation: Its Relationship with CEO Ideology, Organizational Discretion, and Firm Performance

Cited by 117 publications

References 68 publications

Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

Placing their bets: The influence of strategic investment on CEO pay‐for‐performance

Visualizing Sustainability Research in Business and Management (1990–2019) and Emerging Topics: A Large-Scale Bibliometric Analysis

Contact Info

Product

Resources

About