The effects of culture on CEO power: Evidence from executive turnover

Urban, Daniel

doi:10.1016/j.jbankfin.2019.05.003

Cited by 34 publications

(19 citation statements)

References 78 publications

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“…To the best of our knowledge, this is the first study to provide empirical evidence on how trust in proposed by Hofstede (2001). We control for power distance to take into account that governance may be less stringent in more hierarchical countries, as suggested by Urban (2018). We also control for Hofstede's individualism measure because individualism might exacerbate the free-rider problem of voting, leading to a lower percentage of votes cast.…”

Section: Resultsmentioning

confidence: 99%

“…In this context, Hilary and Huang (2015) and Hoi, Wu, and Zhang (2018) provide evidence for the U.S. that the level of trust and other social capital that prevails in the county where a firm is headquartered mitigates agency problems such as CEO rent extraction and over-investment. Furthermore, Urban (2018) finds that in more hierarchical countries, i.e., those where greater power distance (Hofstede, 2001) prevails, the CEO turnover-performance sensitivity is lower. Our study differs from the previous studies as it focuses on direct monitoring by shareholders, rather than delegated monitoring by the board of directors, while controlling for firms' governance quality and CEO pay as well as country-level power distance.…”

Section: Contribution To the Literaturementioning

confidence: 99%

“…The results remain qualitatively unchanged. We re-estimate the regressions shown in column (4) of Table 2 and Table 3 adding an additional control for Hofstede's power distance index (Hofstede, 2001) to take into account that corporate governance can be less stringent in more hierarchical countries as suggested by Urban (2018).…”

Section: Confidence In Pressmentioning

confidence: 99%

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Trust and Shareholder Voting

2018

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We test the hypothesis whether a specific aspect of culturetrust in othersaffects shareholder voting behavior by substituting for costly monitoring. We find consistent evidence that the percentage of votes cast at shareholder meetings is lower in high-trust countries while the percentage of votes in support of management proposals is higher. Shocks to trust and IV regressions confirm these results. We also find that shareholder voting is more valuable in lowtrust countries, as reflected by a more positive effect on future firm performance, which suggests that managers do not exploit lower levels of monitoring when trust is high.

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Section: Resultsmentioning

confidence: 99%

Section: Contribution To the Literaturementioning

confidence: 99%

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Trust and Shareholder Voting

2018

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“…Country characteristics : Several country‐specific factors are likely to have a significant impact on acquisition behavior. Urban (2019) argues that hierarchical countries are less likely to fire their CEOs. We expect CEO learning to be more aligned with institutional learning in more hierarchical countries.…”

Section: Control Variables and Fixed Effects Estimationmentioning

confidence: 99%

Learning in serial mergers: Evidence from a global sample

Pandey

Sutton

Steigner

2021

Business Fin & Account

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Do frequent acquirers learn from their experience in serial mergers? A recent stream of literature has proposed that the generally observed declining investor response (cumulative abnormal returns) to successive acquisitions by frequent acquirers may be evidence of learning, rather than the result of commonly attributed causes such as managerial hubris or empire building. We examine the learning hypothesis on a global scale, using a sample of 13,326 publicly listed acquiring firms representing 72 nations conducting 27,305 acquisitions over the period 1984–2014. Our results provide evidence of institutional‐based differences in acquirer learning on a global scale in the valuation of private targets. In contrast, we find evidence of hubris in takeovers of public targets, especially in the United States, and other competitive takeover markets, where acquirers experience persistent, significant losses over successive acquisitions, while targets continue to reap significant gains throughout the acquisition sequence.

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“…Según la literatura existente implícitamente asume que la relación entre la composición de la junta o la estructura de liderazgo de la junta y el desempeño financiero es directa (Urban, 2019). La dualidad del CEO tiene impactos negativos estadísticamente significativos en el desempeño financiero de la empresa; este efecto es moderado positivamente por la independencia de la junta (Oh, Chang, & Kim, 2018).…”

Section: Impacto De La Dualidad En El Desempeño Financierounclassified

Desempeño financiero en las organizaciones: Análisis desde la gerencia general Chairman

2019

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El propósito de este estudio fue investigar el efecto de la Dualidad del Gerente General (CEO) Chairman sobre el desempeño financiero de las empresas ecuatorianas. La investigación tiene una lógica deductiva, enfoque cuantitativo, diseño no experimental, alcance correlacional y fuentes de datos primaria y secundaria. Para la comprobación de la hipótesis general del modelo se aplicó estadísticas de regresión múltiple, ajuste de datos y test VIF para evaluar la multicolinealidad; a partir de una muestra de 343 CEO's con un nivel de confianza del 95% y un margen de error del 5%. Los hallazgos indicaron que la Dualidad CEO no está relacionada positivamente con el desempeño financiero (ROA), sin embargo, se acotó que otras variables como el endeudamiento resultó significativo para explicar el desempeño financiero en los modelos uno y dos y el personal resultó significativo para explicar el desempeño financiero en el modelo uno.

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The effects of culture on CEO power: Evidence from executive turnover

Cited by 34 publications

References 78 publications

Trust and Shareholder Voting

Trust and Shareholder Voting

Learning in serial mergers: Evidence from a global sample

Desempeño financiero en las organizaciones: Análisis desde la gerencia general Chairman

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