Organizational Change Cynicism: Does It Hinder Change Commitment?

Sanoubar, Naser; Bajestani, Mehdi Forghani

doi:10.18848/2327-798x/cgp/v15i02/50770

Cited by 3 publications

(1 citation statement)

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“…Emphasizing the equity components of these managers' compensation would be recommended to increase their risk appetite since survival requires adapting to changes as well as avoiding excessive risk. And to implement change successfully, managers need credibility with employees which can be best achieved through their commitment to change initiatives manifested in their risk-taking behavior (Gabris, 2003; Sanoubar and Bajestani, 2015).…”

Section: Discussionmentioning

confidence: 99%

Long-term compensation and risk taking: exploring the role of crisis in CEOs' behavior toward mergers and acquisitions

Gharagozloo

Bajestani

Chen

2023

IJOTB

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PurposeCorporate governance scholars have built on agency theory premises to document chief executive officers' (CEOs’) debt-based compensation, also known as inside debt, as an effective tool to control excessive risk and deter risky corporate strategies. In this study, the authors draw on behavioral agency model to put these well-established assumptions to the test in a different setting and argue for the context-specific effects of CEOs' long-term compensation.Design/methodology/approachFocusing on corporate mergers and acquisitions in a post-crisis period (2011–2017), the authors cast doubt on agency theory predictions on debt-like compensation, point to the more realistic assumptions of behavioral decision models, and call for more contingency approaches in theoretical arguments.FindingsAn analysis of more than 4000 observations reveals that neither CEOs nor shareholders react significantly to inside debt after the economy recovers. Firm risk is also influenced only marginally by long-term compensation in a normal period of time.Originality/valueWhile extant literature is rather unanimous on risk-reducing impact of inside debt, the study periods span the financial crisis of 2007. This research is the first conducted in regular times to demonstrate that previous findings are biased and heavily influenced by an exogenous shock.

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Section: Discussionmentioning

confidence: 99%

Long-term compensation and risk taking: exploring the role of crisis in CEOs' behavior toward mergers and acquisitions

Gharagozloo

Bajestani

Chen

2023

IJOTB

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Moderated relations among empowerment, cynicism and commitment

Durrani

Dilawar

et al. 2017

HSM

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Impact of organizational justice dimensions on social exchange theory constructs: a literature

Schierholt,

de Souza,

De Queiroz

et al. 2023

R. G. Secr.

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Justice plays an essential role in all social relationships, as it underpins ongoing commitment and mutual cooperation, even in situations of uncertainty, and creates an environment in which people feel valued, respected, and motivated to continue making a positive contribution to their environment. Organizational justice is related to employees' subjective assessment of the equity in the treatment received and its influence on engagement and behavior in the work context. This study aimed at carrying out a literature review of the dimensions of organizational justice and its relationship with the most diverse constructs related to the theory of social exchange, such as trust, commitment, and cooperation, whether from employees, customers, or other agents. To this end, a systematic review was carried out using PRISMA-based strategies on the Scopus and Web of Science databases between 2015 and 2020. The results of the quantitative analysis indicate that this is a relevant topic in the academic literature published in a wide variety of journals in different categories. Furthermore, the qualitative analysis indicates that the effects of the perception of justice can be predicted in a unique way when it comes to people's behavior in social interactions since the effects of the dimensions of justice are not standardized for the different constructs in different environments and groups. This leads to the conclusion that the relationship between the different dimensions of organizational justice is quite specific, depending on the variable being analyzed and the group under study.

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Organizational Change Cynicism: Does It Hinder Change Commitment?

Cited by 3 publications

References 0 publications

Long-term compensation and risk taking: exploring the role of crisis in CEOs' behavior toward mergers and acquisitions

Long-term compensation and risk taking: exploring the role of crisis in CEOs' behavior toward mergers and acquisitions

Moderated relations among empowerment, cynicism and commitment

Impact of organizational justice dimensions on social exchange theory constructs: a literature

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