HRM Signals for the Capital Market

Krausert, Achim

doi:10.1002/hrm.21718

Cited by 11 publications

(10 citation statements)

References 90 publications

(225 reference statements)

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“…On that basis, three categories of SHC investment were proposed that may be affected by short termism. These were partially covered in the prior literature: Krausert (2014) Communication about such effects is in the interest of managers as much as of securities analysts (Jacobs, 2015;Krausert, 2016 A potential issue may be insufficient information about the effects (in particular long-term effects) of SHC investments also within the firm. The advent of "big data" as well as activity-based costing systems might facilitate the collection of data that can support the provision of needed information (Fulmer & Ployhart, 2014).…”

Section: Discussionmentioning

confidence: 99%

“…Analyst efforts to take SHC investments into account might potentially be thwarted by fake signaling. Furthermore, reallocation of resources (so as to boost signals attended to by the capital market) may be an issue if the capital market attends to signals that are contaminated or deficient (Krausert, 2016). Another potential issue is that managers may be reluctant to divulge SHCrelated knowledge that differentiates their firm in the competition (Ndofor & Levitas, 2004).…”

Section: Discussionmentioning

confidence: 99%

“…from the capital market (Krausert, 2014;Liu et al, 2014) but that investors should have an incentive to attend to them (Bassi & McMurrer, 2005;Benson et al, 2006;Edmans, 2011Edmans, , 2012 and that, if they attended to them, negative effects of earnings pressure would be mitigated (Krausert, 2016). At the same time, this literature is still relatively thin when it comes to details and underlying mechanisms.…”

mentioning

confidence: 99%

“…The assumption in the literature that investors should and would attend to SHC investments (Bassi & McMurrer, 2005;Edmans, 2009Edmans, , 2011Edmans, , 2012 contrasts with a lack of understanding among investors of how they might do so in practice (Benson et al, 2006;CIPD, 2015). It was argued that managers have a part to play in providing information about SHC investments to investors, too (Krausert, 2016). However, managers appear to be equally uncertain about SHC-related information requirements of investors (Jacobs, 2015;Ulrich, 2015).…”

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confidence: 99%

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The HRM–capital market link: Effects of securities analysts on strategic human capital

Krausert

2017

Human Resource Management

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This article develops theory about an agency problem affecting the strategic human capital (SHC) of the firm. It proposes three categories of SHC-related choices managers must make that imply a trade-off between near-and long-term performance. Dispersed shareholding, firm coverage by securities analysts, and their practice of publishing quarterly earnings forecasts are argued to entail a bias in management incentives, shifting the balance in this trade-off toward near-term performance. To restore the balance, securities analysts would need to distinguish transitory from recurring effects of SHC-related choices in their valuation models (e.g., treating certain labor cost savings during cyclical downturns as transitory). Restoring the balance would also require them to anticipate long-term effects in their long-term earnings forecasts (e.g., long-term positive effects of retaining employees with valuable skills during cyclical downturns). The article discusses specific transitory cost effects and long-term effects they could potentially take into account. The skills and incentives needed by analysts to account for such effects are argued to vary across firm segments. K E Y W O R D Sagency theory, corporate governance, financial analysis, high-performance work systems, human capital disclosure, intangibles, intellectual capital disclosure, nonfinancial information, securities analysts, short termism, strategic human capital, temporal effects

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

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confidence: 99%

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confidence: 99%

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The HRM–capital market link: Effects of securities analysts on strategic human capital

Krausert

2017

Human Resource Management

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“…Signaling theory postulates that actual signal quality depends on the extent to which it is congruent with the senders' unobservable quality, in other words, whether a signal-sender fit is present (Connelly et al, 2011). Krausert (2016) described signal fit as "the degree to which the qualities reflected in the signal overlap with the qualities in question" (p. 1029). Trust in management and perceptions of genuineness and authenticity may contribute to the effectiveness of change processes (Oreg, 2006;Simoes & Esposito, 2014).…”

Section: Organizational Change Communication: Signaling Theory Approachmentioning

confidence: 99%

Change Management Communication: The Role of Meaningfulness, Leadership Brand Authenticity, and Gender

Shulga

2020

Cornell Hospitality Quarterly

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As hospitality firms face increasing demands that require continuous change, it is imperative to design change management processes that allow for effective communication of change initiatives. This study of 235 employees examined the effects of organizational change communication 1 month after the change message was delivered at the annual leadership conference of a well-known U.S.-based limited-service hotel chain. In hospitality organizations, successful change management is impossible without employee engagement. However, employees’ sensemaking of the organizational change message may encourage or hinder their receptivity to change. Findings showed that while positive appraisal of conference message meaningfulness positively influenced employee work engagement, perceptions of leadership brand authenticity had a stronger impact. Moreover, employees bundled message meaningfulness and leadership brand authenticity perceptions for greater work engagement, which is linked with job satisfaction and service climate evaluation. Female attendees were highly influenced by leadership brand authenticity perceptions, driving stronger job satisfaction and stronger service climate. However, for male attendees, meaningfulness of the conference message had a significant impact on engagement. Thus, hospitality managers’ ability to adjust organizational change communication through message meaningfulness and authentic leadership branding may assist in securing the desired outcomes of change.

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Entrepreneurs' socioeconomic status and government expropriation in an emerging economy

Chandrashekar

2020

Strategic Entrepreneurship

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Research Summary This study focuses on a salient challenge for entrepreneurs in emerging economies: government expropriation. Drawing on signaling arguments, we propose that an owner's high socioeconomic status (SES) attracts government attention to her start‐up by conveying information about its resource endowments. The empirical tests based on start‐ups in China support that an owner's high SES increases government expropriation. The effect is stronger for start‐ups in regions with greater income inequality or in those where the legal system is less developed. High‐SES entrepreneurs can mitigate the risk of government expropriation by building political connections. Managerial Summary Institutional voids in emerging economies pose a major threat to start‐ups in the form of government expropriation. This research finds that the threat is more severe for start‐ups with high‐SES entrepreneurs because they have strong resource‐mobilization capabilities and easily become expropriation targets. Further, this research suggests that two measures help protect high‐SES entrepreneurs from government expropriation: locating their start‐ups in regions with low income inequality or a well‐developed legal system, and building connections with the government in order to exchange favors with government officials.

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HRM Signals for the Capital Market

Abstract: A C H I M K R A U S E R T

Cited by 11 publications

References 90 publications

The HRM–capital market link: Effects of securities analysts on strategic human capital

The HRM–capital market link: Effects of securities analysts on strategic human capital

Change Management Communication: The Role of Meaningfulness, Leadership Brand Authenticity, and Gender

Entrepreneurs' socioeconomic status and government expropriation in an emerging economy

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