How does CEO power and overconfidence affect the systemic risk of China’s financial institutions?

Chen, Yingying; Safi, Adnan; Zeb, Yasir

doi:10.3389/fpsyg.2022.847988

Cited by 3 publications

(3 citation statements)

References 54 publications

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“…Based on the analytical framework of Bertrand and Mullainathan [63] and Chen et al measured TMT power by using the enterprise's pay gap [64]. We argue that the pay gap is only a part of the direct power of executives and cannot adequately measure the direct and indirect power of the TMT.…”

Section: Moderator Variablementioning

confidence: 89%

“…The first one implies that shareholder units have more influence over enterprise-decision-making behavior, which constrains TMT power [40]. The second one implies that TMT has more authority over the board agenda [64]. We created TMT_POWER1, which takes the value of 1 for TMT holding positions in shareholder units and 0 otherwise.…”

Section: Alternative Measures Of Tmt_powermentioning

confidence: 99%

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Impact of Digital Supply Chain on Sustainable Trade Credit Provision: Evidence from Chinese Listed Companies

Chen

Zhuang

2023

Sustainability

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Given the trend of digitization, it is imperative to ascertain the role of the digital supply chain on sustainable trade credit provision. Based on data from Chinese listed firms from 2008 to 2020, we utilized the TF-IDF algorithm to measure the digital supply chain and ascertained its impact on trade credit. We found that the digital supply chain was positively associated with trade credit provision. Specifically, we arrived at the following conclusions: (1) the digital supply chain strengthens trade credit provision, including to customers and suppliers; (2) top management team power positively and significantly moderates the effect of digital supply chain; (3) among the sub-indicators of the digital supply chain, the dimensions of logistics, products and information have significant and positive impacts, while cash is insignificant; (4) curbing financialization and enhancing asset specialization are the mechanisms of the effect of the digital supply chain; and (5) the effect is more pronounced in firms with higher agency costs and lower supply chain collaboration and non-state ownership, and it is more salient in industries with higher competition and non-national support. We extend the theory of trade credit and enrich the literature on the digital supply chain. Our study offers managerial insights into the digital supply chain for emerging countries and enterprises.

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Section: Moderator Variablementioning

confidence: 89%

Section: Alternative Measures Of Tmt_powermentioning

confidence: 99%

Impact of Digital Supply Chain on Sustainable Trade Credit Provision: Evidence from Chinese Listed Companies

Chen

Zhuang

2023

Sustainability

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“…Following the study of Ref. [36], we employed the two-stage least squares regression model given as follows:…”

Section: Instrumental Variablementioning

confidence: 99%

Does air pollution inhibit digital finance? Evidence from Chinese prefecture-level cities

Zheng,

Cen,

2023

PLoS ONE

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Air pollution poses significant health and economic challenges globally and specifically affecting China. Although air pollution has been associated with decreased productivity and biases in decision-making, its effect on the development of digital finance has received limited attention in the literature. By employing city-level data from China covering the period from 2013 to 2020, this research examines the impact of air pollution on digital finance. The results show that deteriorating air quality has a negligible impact on digitalization, whereas it has a negative impact on financial inclusion, measured by usage and coverage metrics. The negative impact on financial inclusion is more noticeable in economically weaker and less developed urban areas and low R&D than in developed areas and economically robust cities. The mechanism analysis shows that air pollution reduces human capital quality, resulting in a decline in financial inclusivity. These findings have significant policy implications, underscoring the necessity for approaches that simultaneously tackle air pollution and foster financial innovation.

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Corporate Governance and Managerial Overconfidence

Cherkaoui,

Oudrhough

2024

Advances in Logistics, Operations, and Management Science

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This chapter draws attention to the fact that corporate governance can help in moderating overconfidence, particularly in corporate strategic decisions. CEOs with overconfidence are more likely to engage in risky investment. Agency theory does endorse performance-related pay and independent directors. The Sarbanes-Oxley Act and gender diversity are cited as useful for maintaining an equitable decision-making system. However, a great void persists within the landscape of bibliometric analyses in this area. With the R studio program and the PRISMA procedure, this study makes a critical literature review on overconfidence and corporate governance. Through an exhaustive review of 283 papers on the Web of Science (WOS) and Scopus, this study summarizes major themes, principal authors, and key gaps in the field of overconfidence and strategic decision-making. This is the reason why this chapter aims at assessing the nature of the relationship between overconfidence and corporate innovation, R&D, financial and investment, acquisition decisions, and CSR, and calling for improved governance solutions, multidisciplinary research, and stakeholders' involvement.

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How does CEO power and overconfidence affect the systemic risk of China’s financial institutions?

Cited by 3 publications

References 54 publications

Impact of Digital Supply Chain on Sustainable Trade Credit Provision: Evidence from Chinese Listed Companies

Impact of Digital Supply Chain on Sustainable Trade Credit Provision: Evidence from Chinese Listed Companies

Does air pollution inhibit digital finance? Evidence from Chinese prefecture-level cities

Corporate Governance and Managerial Overconfidence

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