Social ties, managerial overconfidence, and investment efficiency

Kang, Yong Joo; Lee, Ho‐Young; Park, Hyun-Young; Park, Ju Hyoung

doi:10.1016/j.frl.2021.102300

Cited by 14 publications

(3 citation statements)

References 36 publications

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“…Hometown identity embodies people's emotional attachment to their hometown. Individuals thus consciously regard themselves as a member of their hometown group and have a positive emotional connection with their hometown environment (Kang et al, 2022). For this reason, hometown CEOs are more inclined to take altruistic measures that are beneficial to hometown development and the local community (Du, 2019).…”

Section: Ceo's Hometown Identity and Corporate Environmental Violationsmentioning

confidence: 99%

Sentimentally attached to hometown: CEO hometown identity and corporate environmental violations

周,

杨,

刘

et al. 2023

Preprint

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CEO hometown identity has received high attention from both academic and practical circles. However, scholars must learn more about the impact of CEO hometown identity on corporate environmental behavior. In this study, Shanghai and Shenzhen A-share listed companies in heavily polluting industries in China from 2010 to 2019 are taken as a sample to empirically test the impact of CEO hometown identity on corporate environmental violations and the regulatory role of financing constraints. The research results show that CEO hometown identity reduces corporate environmental violations, but financing constraints weaken this impact. It is also found that the conclusion remains valid when the enterprise is in a region with external solid environmental supervision or an industry with fierce market competition. Even in the face of higher financing constraints, CEO hometown identity can effectively reduce the possibility of corporate environmental violations. This study enriches the theory of place attachment, contributes to the theoretical research and management practice of CEO hometown identity and corporate environmental behavior, and provides essential references for improving corporate environmental performance and promoting the construction of ecological civilization.

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Section: Ceo's Hometown Identity and Corporate Environmental Violationsmentioning

confidence: 99%

Sentimentally attached to hometown: CEO hometown identity and corporate environmental violations

周,

杨,

刘

et al. 2023

Preprint

View full text Add to dashboard Cite

show abstract

“…Concerning such dubious findings, a research gap enables further research to be conducted in an attempt to arrive at desirable conclusions. Presently, there are two different theoretical underpinnings for why CSR and FP go hand in hand (Kang et al, 2022). One school of thought contends that CSR has a bad connotation since it is often believed that charitable donations made by businesses will raise their operating costs to help fund initiatives aimed at enhancing community well-being and draft policies aimed at safeguarding the environment.…”

Section: Csr and Firm Performancementioning

confidence: 99%

Exploring the Impact of Ownership Structure and CEO Power on CSR and Firm Performance in Pakistan: A Comparative Study of Pre, Post and Covid Era as an Emerging Economy

Aisha,

Qamar Abbass

2023

ABGMCE

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The primary purpose of this research is to acquire a profound comprehension of the impacts of Corporate Social Responsibility (CSR) on the operations of firms and on society as a whole, with Pakistan serving as the focal point of the research. This study's objective is to determine whether or not there is a moderating effect of CEO power on the relationships that exist between CSR, ownership concentration, and efficient business practices. In-depth research has been conducted on fifty different non-financial enterprises in Pakistan to see how well they performed before, during, and after the Covid-19 Pandemic. On the data that has been gathered, descriptive statistics and regression analysis have been carried out with the assistance of SPSS. The research found that in the middle of the Covid-19 outbreak in Pakistan, the degree of authority held by CEOs had a major impact on the dynamics of the economy. The authority of the Chief Executive Officer (CEO) has a significant impact on the relationship between corporate social responsibility (CSR) and the performance of an organization. Even in a developing country like Pakistan, the present study highlights the importance of corporate social responsibility (CSR) and the positive influence it may have on the bottom line of a firm. The purpose of this study is to investigate the beneficial benefits that corporate social responsibility (CSR) has on society, with a particular emphasis on emerging countries such as Pakistan. This research serves as a useful guide by emphasising how important CSR is for linking together the success of businesses and the well-being of the society in which they operate.

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“…Furthermore, managers’ personal risk preferences can be reflected in corporate investment decisions (Huang and Kisgen, 2013; Lai and Liu, 2018; Hurley and Choudhary, 2020) [1]. For instance, overconfident managers are more prone to overestimate the future returns of their investment projects, underestimate the likelihood of failure and consequently increase the likelihood of investment inefficiency (Malmendier and Tate, 2005; He et al , 2019; Kang et al , 2022). Therefore, we factor in gender because managers’ personal risk preferences are also influenced by gender (Croson and Gneezy, 2009).…”

Section: Introductionmentioning

confidence: 99%

Do female chief financial officers and female directors cooperate? Evidence from investment efficiency

Ismail,

Abdul Wahab

2024

MEDAR

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Purpose This paper aims to examine whether the cooperation between female chief financial officers (CFO) and the proportion of female directors would impact investment efficiency. The investigation is grounded in the increasing number of female top managers globally and the notion that female tends to cooperate more with other female than with male. Design/methodology/approach This study uses publicly listed firms in Bursa Malaysia from 2016 to 2020, which yielded a sample of 2,022 firm-year observations. The authors used multivariate ordinary least square regression to test the relationship, and to correct for the selection bias, the Heckman selection and PSM test were used. Findings The authors find a positive relationship between female CFOs and investment efficiency. A higher proportion of female directors accentuates this result. The findings support the homophily argument that similar characteristics (gender) promote cooperation. This shows that cooperation between female CFOs and directors improves investment efficiency. The results suggest that the improvement in investment efficiency could relate to higher managerial discretion for female CFOs and their ability to collaborate with female directors. These results are robust to a series of additional endogeneity tests. The findings have important implications for policymakers and firms to encourage more appointments of females in top management positions. Originality/value By highlighting the cooperation between female CFOs and female directors, this study contributes to the understanding that cooperation among females improves investment efficiency.

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Social ties, managerial overconfidence, and investment efficiency

Cited by 14 publications

References 36 publications

Sentimentally attached to hometown: CEO hometown identity and corporate environmental violations

Sentimentally attached to hometown: CEO hometown identity and corporate environmental violations

Exploring the Impact of Ownership Structure and CEO Power on CSR and Firm Performance in Pakistan: A Comparative Study of Pre, Post and Covid Era as an Emerging Economy

Do female chief financial officers and female directors cooperate? Evidence from investment efficiency

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