Managerial conservatism and corporate policies

Duong, Kiet Tuan; Banti, Chiara; Instefjord, Norvald

doi:10.1016/j.jcorpfin.2021.101973

Cited by 18 publications

(19 citation statements)

References 121 publications

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“…The second indicator for performance is the market to book ratio ( MtoB ), which equals the market value of equity divided by the book value of equity. The Market to Book ratio represents the growth opportunities of firm investments (Duong et al 2021). The natural logarithm of market capitalisation is the third performance indicator.…”

Section: Methodsmentioning

confidence: 99%

“…Conforming to previous studies (e.g. Custódio and Metzger 2014; Duong et al 2021; Fan et al 2019; Fracassi and Tate 2012; Khanna et al 2015; Schmidt 2015), several control variables are considered as seen in Table 1. Ln(TA) is used as a proxy for firm’s size.…”

Section: Methodsmentioning

confidence: 99%

“…Capex/TA and R&D/TA are the capital expenditures and R&D (Research & Development expenditures) scaled by total assets. Capex/TA and R&D/TA represent firm investment policies that can affect the firm market capitalisation, profitability and firm risk (Custódio and Metzger 2014; Duong et al 2021). More significant tangible assets can reduce firm risks as intangible assets are often easily impaired in value.…”

Section: Methodsmentioning

confidence: 99%

“…More significant tangible assets can reduce firm risks as intangible assets are often easily impaired in value. PPE/TA is used as a proxy for tangible assets, the property, plant and equipment scaled by total assets (Custódio and Metzger, 2014; Duong et al 2021). Cash/TA and Debt/TA controls for asset liquidity and financing policy as the availability of finance and cash can foster firm operations and reduce firm risk.…”

Section: Methodsmentioning

confidence: 99%

“…Cash/TA and Debt/TA controls for asset liquidity and financing policy as the availability of finance and cash can foster firm operations and reduce firm risk. However, higher debt borrowing also increases the bankruptcy risk for the firms (Custódio and Metzger 2014; Duong et al 2021).…”

Section: Methodsmentioning

confidence: 99%

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Collusive behaviour, risk and performance of tourism firms

et al. 2022

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This paper aims to enrich social network and managerial powers theories by examining the effects of board-CEO friendship ties in tourism firms. Specifically, we focus on the association between the board-CEO social network ties (e.g. serving external boards together or sharing memberships at social organisations) and performance and risk-taking behaviour among tourism firms. The findings show that friendship ties between CEO and board members result in higher risk-taking, lower profitability and market values. In addition, professional ties (i.e. current and past employment) significantly impact tourism firms’ outcomes, whereas non-professional ties (i.e. education and other social organisations) do not. The findings prevail after controlling for the Covid-19 pandemic. However, friendship ties lead to better information sharing, resulting in more effective decision-making by board members.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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Collusive behaviour, risk and performance of tourism firms

et al. 2022

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Do not walk into darkness in greenhushing: A cross‐cultural study on why Chinese and South Korean corporations engage in greenhushing behavior

Tao

2024

Bus Strat Dev

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This study focuses on exploring the factors influencing why companies engage in greenhushing decisions in the cultural backgrounds of China and Republic of Korea. Structural equation modeling analysis indicates that in these two countries, reputational risk not only directly leads to corporate greenhushing behavior, but also exerts its influence through conservatism as a mediating factor. Reputational risk causes companies to exhibit conservatism, which in turn leads to the adoption of greenhushing behavior. Furthermore, tests for moderation effects revealed that, in the Chinese sample data, a transparent information disclosure mechanism has the ability to mitigate the impact of reputational risk on corporate greenhushing behavior, as well as to alleviate the influence of conservatism on corporate greenhushing behavior. In the South Korean sample data, a transparent information disclosure mechanism can moderate the impact of reputational risk on conservatism and corporate greenhushing behavior. Finally, the fsQCA method is tested to derive the different configurations and pathways that lead to the strong emergence of greenhushing behavior in companies in China and Republic of Korea, as well as to identify the most influential pathways. This study provides substantial theoretical support for further exploration of the causal mechanisms of corporate greenhushing behavior and promotion of cross‐cultural comparisons and learning in the international environmental management field. In addition, provides rich empirical support and theoretical guidance for corporate environmental management decision‐making and policy formulation. The findings highlight the further standardization and strengthening of transparent information disclosure mechanisms will be an important direction for future environmental policy development.

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CEO Age and Capital Structure Dynamics: The Moderating Effect of Overconfidence and Tenure

Ezeani,

Bilal,

Samuel

2024

Int. J Fin Econ

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The Upper Echelons theory suggests that managerial characteristics will likely influence their financial decisions. Consistent with this theory, we examine CEO age's impact on Chinese firms' capital structure dynamics. We also investigate the moderating effects of overconfidence and tenure on the relationship between CEO age and capital structure. Using 18,235 firm‐year observations from Chinese listed firms, we document a positive relationship between CEO age and leverage. The results show that the CEOs' age‐overconfidence and age‐tenure relationship have an inverse relationship with leverage. Particularly, we find that CEO overconfidence and tenure impact market leverage more than book leverage. Our sensitivity analysis indicates that young CEOs use less debt, consistent with the market‐leaning hypothesis. We also find a positive relationship between CEO age and leverage in state‐owned enterprises. Our results are robust for decomposition analysis, selection bias test and endogeneity.

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Managerial conservatism and corporate policies

Cited by 18 publications

References 121 publications

Collusive behaviour, risk and performance of tourism firms

Collusive behaviour, risk and performance of tourism firms

Do not walk into darkness in greenhushing: A cross‐cultural study on why Chinese and South Korean corporations engage in greenhushing behavior

CEO Age and Capital Structure Dynamics: The Moderating Effect of Overconfidence and Tenure

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