Explaining executive integrity: governance, charisma, personality and agency

Tourigny, Louise; Dougan, William L.; Washbush, John; Clements, Christine

doi:10.1108/00251740310509562

Cited by 16 publications

(15 citation statements)

References 52 publications

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“…These statements had 6 votes or more to meet the 60% consensus threshold in Round 3. This lends support to the assertions of Tourigny et al (2003) that the lack of exhibited behavior reflecting principles of governance and ethical standards can ca bank failures. Noreen et al (2016) concluded that regulatory authorities must work on the ways to control the moral hazard behavior of banks.…”

Section: Statements That Satisfied the Consensus Thresholdsupporting

confidence: 68%

Banking Finance Experts Consensus on Compliance in US Bank Holding Companies: An e-Delphi Study

Velez

Neubert

Halkias

2020

JRFM

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Compliance measures emphasized in the Dodd-Frank Bill 2010, Section 165 is a response to the 2008 financial crisis, that requires large banks to maintain a minimum capital ratio. The Federal Reserve Bank (Fed) regulates capital of Bank Holding Companies (BHC) through compliance Supervisory Capital Assessment Program (SCAP) 2009 and Comprehensive Capital Adequacy Review (CCAR) 2011 annual stress test of capital. The Fed imposed a minimum capital ratio of 8% that has derailed the risk management objective of capital adequacy, as bank managers are forced to take on more risk to meet the capital ratio. This study concerns senior manager practices that can be effective in meeting compliance requirements posed by the Fed for BHCs. Through a qualitative e-Delphi study, 10 banking finance experts were convened to build consensus on senior manager’s practices that can be effective in meeting compliance requirements. Data were collected from three electronic questionnaires submitted through Qualtrics. Data were analyzed using theoretical triangulation, coding, and thematic analysis. Four important considerations were identified that could bolster compliance measures effectiveness: (a) emphasis placed on understanding regulatory consultant compliance, (b) maintenance of effective and independent compliance align to organizational objectives, (c) clear definition of data source for compliance analytics. These considerations of compliance practices may help senior bank managers reduce risky behaviors and investments that cause significant bank losses.

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Section: Statements That Satisfied the Consensus Thresholdsupporting

confidence: 68%

Banking Finance Experts Consensus on Compliance in US Bank Holding Companies: An e-Delphi Study

Velez

Neubert

Halkias

2020

JRFM

View full text Add to dashboard Cite

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“…Specifically, leaders' dysfunctional behaviors may be strongly influenced by and enabled by potentially dysfunctional behaviors on the part of followers (see also Clements & Washbush, 1999;Tourigny, Dougan, Washbush, & Clements, 2003). From an ethical standpoint, the charismatic leader who can use imagery to enhance his or her mystical status and engage in impression management tactics can shift attention away from controversial ethical issues toward more socially desirable ends (such as profitability).…”

Section: The Role Of Follower Perceptions and Motivations In Interprementioning

confidence: 97%

Romancing leadership: Past, present, and future

Bligh

Kohles

Pillai

2011

The Leadership Quarterly

124

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“…Therefore, the context of corporate governance, affected both by the internal power and discretion of the CEO and the effects of signals from outside the firm (Firth et al, 2007;Tourigny et al, 2003), is the key factor determining the degree of diffusion of CEO reputation among his TMT, the residual beneficiary of this recognition. Literature has already shown that governance effectiveness significantly differs between countries, and especially between Anglo-Saxon ones such as the UK and USA and those of Continental Europe, among them Spain (Claessens and Yurtoglu, 2013;Balkin, 2008; 541 CEO reputation and TMT compensation La Porta et al, 1999).…”

Section: Introductionmentioning

confidence: 99%

CEO reputation and top management team compensation

Marín

Baixauli‐Soler

2014

Management Decision

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Purpose – The purpose of this paper is to clarify the influence of chief executive officer (CEO) reputation on top management team (TMT) compensation, proposing corporate governance characteristics as a moderator of the relationships between the power of top managers to extract rents and the importance of external signals. The study aims to expand the domain of executive compensation literature by including the role of CEO reputation in the context of non-Anglo-Saxon corporate governance systems. Design/methodology/approach – The paper opted for a panel methodology for the period 2004-2009, including 534 observations from Spanish listed companies. Data were obtained from several sources. Compensation and governance information was obtained from the Spanish Stock Exchange National Commission; data regarding CEO reputation were obtained from Spanish Corporate Reputation Monitor, and, finally, financial statement was obtained from the OSIRIS database. Findings – The paper provides empirical insights on the CEO reputation diffusion on TMT compensation, showing different scenarios depending on effectiveness of corporate governance. CEO reputation diffusion on TMT pay is strengthened or weakened by the organizational governance effectiveness. General evidence supports the notion that in countries characterized by an incomplete corporate governance system, boards – and also indirectly the structure of ownership – act as a catalyst for external signs of legitimacy, rather than for the organization's and stakeholders’ interests. Research limitations/implications – Because of the difficulty in pooling information for a long period from three different sources of data, the number of observations is not very large. Therefore, researchers are encouraged to test the proposed propositions further using other context of corporate governance. Practical implications – The paper includes implications for the development of effective governance mechanisms which promote an adequate link between the CEO reputation and the TMT compensation, avoiding rent extractions. Originality/value – The paper contributes to new international evidences regarding relations between top managers’ reputations and compensation. Specifically, it allows reinforcement of the importance of institutional arguments in the understanding of the effectiveness of governance mechanisms in large listed companies.

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Explaining executive integrity: governance, charisma, personality and agency

Cited by 16 publications

References 52 publications

Banking Finance Experts Consensus on Compliance in US Bank Holding Companies: An e-Delphi Study

Banking Finance Experts Consensus on Compliance in US Bank Holding Companies: An e-Delphi Study

Romancing leadership: Past, present, and future

CEO reputation and top management team compensation

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