Do CEO characteristics influence a firm’s investment in brand equity? Evidence from Chinese listed firms

He, Qiuqin; Carrilero-Castillo, Agustín; Gonzalez-Garcia, Joaquin

doi:10.1007/s11365-020-00721-7

Cited by 12 publications

(8 citation statements)

References 57 publications

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“…First, there is limited evidence on the impact of CEO duality on investment behaviors. Among those that do, they focus primarily on degrees of capital expenditure (Menshawy et al, 2021), diversification of business segments (Kim et al, 2009) and investment in brand equity (He et al, 2022). This study is similar to that of Rajkovic (2020), which used investment behaviors that deviated from those of the average industry as a measure of investment efficiency and the author found that CEO duality decreases both over-and under-investment problems in the USA.…”

Section: Introductionmentioning

confidence: 89%

Investment efficiency of targeted S-curve industries: the roles of CEO duality and financial reporting quality

Nuanpradit

2024

JABS

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Purpose The purpose of this study is to examine the association between the combined roles of chief executive officer (CEO)-chairman titles (CEO duality) and investment efficiency, defined as a lower deviation from expected investment for targeted S-curve firms used to propel an innovation-driven economy. This study also aims to investigate the moderating effect of financial reporting quality on this association. Design/methodology/approach This paper focuses on the ten targeted S-curve industries – under the definition of the Thailand 4.0 model – listed on the Stock Exchange of Thailand (SET) from 2000 to 2019. Data related to CEO/chairman titles and investment supports were manually collected from the annual reports, the SET market analysis and reporting tool database and the company websites. Financial data used to estimate investment behaviors and discretionary accruals were extracted from 1999. The study analyzes unbalanced panel data using fixed-effects regressions. Additional tests embrace replacing the sample with nontargeted firms, partitioning into granted and nongranted firms, adding CEOs’ demographic moderators, using alternative variable measures and analyzing for lagged independent variables. Findings The main findings show that CEO duality reduces overinvestment but worsens underinvestment in targeted firms. Financial reporting quality (FRQ) appears to strengthen CEO duality in mitigating extreme spending but has no impact on the association between CEO duality and underinvestment. Additional results, for example, conclude that CEO duality has no association with both over- and underinvesting at nontargeted firms, but its effect becomes positively significant on overinvestment when financial reporting quality is high. The negative association between CEO duality and overinvestment is found only in government-granted and targeted firms. FRQ encourages CEO duality in lowering overinvestment among targeted firms without grants. CEOs’ female and serviced early years appear to elevate those main findings. Practical implications These findings assist innovative corporations in choosing a proper leadership structure to cope with investment inefficiency. The research gives the government and regulatory bodies an insight into the qualifications of the leadership structure and financial information that helps them put forward effective policies. Originality/value To the best of the author’s knowledge, this study is among the first to establish the association between CEO duality and investment efficiency for innovation-driven firms in a transforming economy. The study fills the gap in the literature on management, accounting and finance by unveiling the interplay between dual leadership and financial reporting in affecting the efficiency of investments.

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Section: Introductionmentioning

confidence: 89%

Investment efficiency of targeted S-curve industries: the roles of CEO duality and financial reporting quality

Nuanpradit

2024

JABS

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“…Third, the following four controls at the management level were included: (1) CEO age , calculated as the number of years between birth and the fiscal year (Glass et al, 2016; Ortiz‐de‐Mandojana et al, 2019); (2) CEO gender , which is coded one if the CEO is male and one if female (Faccio et al, 2016; He et al, 2022); (3) management compensation , measured as the total compensation paid to all senior executives in the respective fiscal year in million USD (Frydman & Jenter, 2010); and (4) sustainability compensation incentives , which is coded one if the senior executive's compensation is linked to CSR, health and safety, or sustainability targets (zero otherwise) (Cordeiro & Sarkis, 2008; Ortiz‐de‐Mandojana et al, 2019).…”

Section: Methodsmentioning

confidence: 99%

Walking on the gender tightrope: Unlocking ESG potential through CEOs' dynamic capabilities and strategic board composition

Heubeck

2023

Bus Strat Env

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This study explores the relationship between chief executive officers (CEOs) and the board of directors in the context of environmental, social, and governance (ESG) performance. Based on a multi‐theoretical approach, it examines whether dynamic CEO capabilities (DCCs) facilitate ESG performance by enabling capable CEOs to navigate complex stakeholder expectations effectively. Additionally, the impact of board gender diversity (BGD) on this relationship is tested, given its significance for ESG‐related decision‐making. Longitudinal analysis of S&P 900 manufacturing firms demonstrates that strong DCCs positively influence ESG performance, supporting dynamic managerial capabilities and upper echelons theories within the institutional and shareholder theory frameworks. The findings also corroborate that BGD has a moderating effect, initially strengthening the DCC–ESG relationship, in line with gender socialization and diversity theories. However, the study reveals a threshold effect, where ESG benefits from DCCs diminish once BGD reaches approximately 35%, providing a new perspective on critical mass theory.

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“…The upper echelon theory argues that managers' different psychological and observable traits (such as career concerns, age, experience, tenure, education and ability) are key determinants of strategic policy implementation (Hambrick, 2007;Hambrick and Mason, 1984;Mahmoudian et al, 2021). A previous study by He et al (2022) based on the upper echelons theory investigated the relationship between CEO characteristics and brand equity investment and found interesting results such as CEO tenure, CEO duality positively, CEO negatively and CEO gender and CEO education have no significant on the brand equity investment in Chinese listed firms from 2012 to 2018. Therefore, we assume that CEOs, as the most influential managers in their companies, have the potential to perceive and adjust their strategic goals and objectives.…”

Section: Literature Review and Hypothesis Development 21 Theoretical ...mentioning

confidence: 98%

“…Their study documented that younger CEOs have more aggressive and high-risk-taking behavior because they want to signify their superior capabilities. He et al (2022) found that CEO age is significantly negatively associated with investment in brand equity in Chinese listed firms from 2012 to 2018. Gray and Cannella (1997) observed that CEO age is related to the time horizon while making a decision.…”

Section: The Relationship Of Chief Executive Officer Age and Global R...mentioning

confidence: 99%

The impact of CEO age on a firm’s choice of global reporting initiative: moderating role of board social capital

Hussain,

Tian,

Yousaf

et al. 2023

ARJ

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Purpose This study aims to explore the impact of the chief executive officer’s (CEO) age on adopting global reporting initiative (GRI) framework for corporate social responsibility (CSR) reporting. It also underlines how board social capital moderates the relationship between CEO age and the adoption of the GRI framework. Design/methodology/approach Chinese A-listed companies during 2010–2018 were used. The authors applied a logistic regression model due to the binary nature of the dependent variable. For robustness, two-step generalized method of moments (GMM) and lagged independent variables are used. Findings The study finds that CEO age negatively impacts the firm’s choice of GRI reporting framework. The social capital of the board positively moderates this relationship. This finding is based on the notion that as a CEO grows older or headed toward retirement age, his/her interest in CSR diminishes due to a shorter career horizon. Boards with external links provide better advice on CSR issues and mitigate the negative impact of CEO age. Practical implications The study results are important for understanding the GRI framework’s development and implementation, particularly in China. Originality/value To the best of the authors’ knowledge, this is the first study that deeply examines how CEO age affects GRI adoption in the Chinese context and how the board’s social capital moderates this relationship.

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Do CEO characteristics influence a firm’s investment in brand equity? Evidence from Chinese listed firms

Cited by 12 publications

References 57 publications

Investment efficiency of targeted S-curve industries: the roles of CEO duality and financial reporting quality

Investment efficiency of targeted S-curve industries: the roles of CEO duality and financial reporting quality

Walking on the gender tightrope: Unlocking ESG potential through CEOs' dynamic capabilities and strategic board composition

The impact of CEO age on a firm’s choice of global reporting initiative: moderating role of board social capital

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