The impact of market competition on the relation between CEO power and firm innovation

Sheikh, Shahbaz A

doi:10.1016/j.mulfin.2018.01.003

Cited by 76 publications

(64 citation statements)

References 59 publications

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“…Market competition is an organizational strategy that allows a firm to gain competitive advantages and to improve firm performance [60]. Indeed, previous research has empirically found that market competition is positively related to improved firm performance [68,72,73]. Market competition is an organizational strategy that allows a firm to gain competitive advantages and to improve viable performance [60].…”

Section: The Relationship Between Ceo Duality and Firm Performance Wimentioning

confidence: 99%

The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique

et al. 2020

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This current study is one of the few investigations to conduct a focalized examination of the relationship between CEO duality and firm performance; however, this relationship seems to be imprecise due to the impact of the invention mechanism. This study explores the effect of CEO duality to achieve firm performance through the mediating effects of capital structure and market competition, which is an innovative model. The study incorporated the generalized method of moments (GMM) model to examine the proposed association of the CEO duality and firm performance, and the findings specified a negative relationship between CEO duality and firm performance. The results indicated that capital structure partially mediated the association between CEO duality and firm performance. The results also showed that market competition fully mediated this linkage between CEO duality and firm performance, which in turn specified a significant positive relationship with market competition, which mediated a positive relationship. By incorporating these mediators, the results determined that CEO duality reduces firm performance through the capital structure; however, it enhances firm performance by stimulating market competition.

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Section: The Relationship Between Ceo Duality and Firm Performance Wimentioning

confidence: 99%

The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique

et al. 2020

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“…When the competitive threat is strong, managers are less likely to use CER activities as a method of overinvestment [57]. This result can be explained by stakeholder theory that CER in fact is a value increasing investment as it balances the interests of both financing and non-financing stakeholders who have influence over firm resources.…”

Section: Resultsmentioning

confidence: 99%

“…Declerck and M'Zali [55] and Siegel and Vitaliano [56] came to similar conclusions. Sheikh [57] also found that CEOs who control investments choose to invest more in innovation when their firms are in highly competitive markets.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

The Influence of Corporate Environmental Responsibility on Overinvestment Behavior: Evidence from South Korea

Lee

Kim

2020

Sustainability

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The purpose of this paper is to examine the association between corporate environmental responsibility (CER) activities and investment efficiency as measured by overinvestment, and whether the industry-level competition affects this association. We investigate a sample of 2285 non-financial firms with fiscal year-end in December listed in the Korea Stock Exchange Market for the period of 2013–2018, measuring the investment efficiency by overinvestment model. Using environmental scores from the Korea Corporate Governance Service to measure CER activities, we show that, on average, firms can decrease overinvestment behavior through CER activities in South Korea. Moreover, in firms in a highly competitive market, the negative association between CER activities and overinvestment is pronounced, indicating that strong product market competition are effective in monitoring managerial opportunistic behavior. These results are robust, even after controlling for different setting and alternative CER. These findings also suggest that the relationship between CER and overinvestment appears to be benefit firms that are sound and sustainable and honestly present their financial information.

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“…Ax et al (2008) also revealed a link between competition and the adoption of target costing. More recently, Sheikh (2017) showed that product market competition leads to firm innovation. Thus, it is predicted that the higher the degree of market competition faced by companies, the higher will be the level of adoption of lean manufacturing.…”

Section: Literature Review and Hypotheses Development Market Competitmentioning

confidence: 99%

“…Escalation in the global competitive markets has resulted in significant changes in the operations and strategies of businesses. To survive and prosper, managers need to be aware of the market faced by their firms to appropriately plan and design the control systems for their organisations (Khandwalla 1972(Khandwalla , 1973Mia & Clarke 1999;Ax et al 2008;Hoque 2011;Lee & Yang 2011;Ahmad & Mohamed Zabri 2015;Sheikh 2017).…”

Section: Introductionmentioning

confidence: 99%

Market Competition, Lean Manufacturing Practices and The Role of Management Accounting Systems (MAS) Information

Ismail

Isa²,

Mia³

2018

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Adoption of advanced manufacturing techniques such as lean manufacturing is one of the strategies that help manufacturing firms to sustain their competitiveness and achieve the desired outcomes. It is argued that the traditional Management Accounting Systems (MAS) are no longer capable of providing information necessary to operate in the ever changing business environment. This study examines the role of MAS information in the relationship between market competition, lean manufacturing and organisational performance. Data were gathered using a questionnaire survey from manufacturing firms listed in the Federation of Malaysian Manufacturers (FMM) Directory. The results reveal the relationships between lean manufacturing and the MAS, as well as between the MAS and performance, are positive and significant, which suggest that the relationship between lean manufacturing and performance is indirect through the MAS. This provides evidence that the use of MAS information in a lean manufacturing environment facilitates firms in improving organisational performance. ABSTRAK Penggunaan teknik pengilangan maju seperti pengilangan 'lean' adalah salah satu strategi yang membantu syarikat pengilangan untuk mengekalkan daya saing mereka dan mencapai hasil yang dikehendaki. Adalah dikatakan bahawa sistem perakaunan pengurusan (MAS) tradisional tidak lagi mampu menyediakan maklumat yang diperlukan untuk beroperasi dalam persekitaran perniagaan yang sentiasa berubah-ubah. Kajian ini mengkaji peranan maklumat MAS dalam hubungan di antara persaingan pasaran, pengilangan 'lean' dan prestasi organisasi. Data dikumpulkan dengan menggunakan soal selidik dari firma-firma pengilangan yang disenaraikan di Direktori Persekutuan Pekilang-Pekilang Malaysia (FMM). Keputusan mendedahkan bahawa hubungan di antara pengilangan 'lean' dan MAS, serta di antara MAS dan prestasi, adalah positif dan signifikan, yang menunjukkan bahawa hubungan di antara pengilangan 'lean' dan prestasi adalah secara tidak langsung melalui MAS. Ini memberikan bukti bahawa penggunaan maklumat MAS di dalam persekitaran pengilangan 'lean' memudahkan syarikat untuk meningkatkan prestasi organisasi.Kata kunci: Pengilangan 'lean'; 'just in time'; pengurusan kualiti menyeluruh; persaingan pasaran; sistem perakaunan pengurusan JPengurusan 4 (52) 2018.indd 47

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The impact of market competition on the relation between CEO power and firm innovation

Cited by 76 publications

References 59 publications

The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique

The Effects of Market Competition, Capital Structure, and CEO Duality on Firm Performance: A Mediation Analysis by Incorporating the GMM Model Technique

The Influence of Corporate Environmental Responsibility on Overinvestment Behavior: Evidence from South Korea

Market Competition, Lean Manufacturing Practices and The Role of Management Accounting Systems (MAS) Information

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