Do CEO characteristics matter for corporate risk taking? Evidence from Russia

García-Gómez, Conrado Diego; Zavertiaeva, Marina; López‐Iturriaga, Félix J.

doi:10.1108/cg-07-2022-0301

Cited by 4 publications

(4 citation statements)

References 113 publications

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“…Implementation of those insights may face difficulties if it is not convinced by their peers, colleagues in the TMT (Tzeng, 2018), and CEOs, particularly (García-Gómez et al., 2023). Transforming an EM firm's corporate strategy typically requires business knowledge and soft skills.…”

Section: Discussionmentioning

confidence: 99%

“…The strategic decision of a firm is frequently made by a firm’s CEO (García-Gómez et al., 2023). This seems to be very important in various emerging markets, especially in Asia (Bruton and Lau, 2008; Korica et al., 2017), since their national culture, in terms of power distance, enables CEOs to take control and dominate the TMT (Banerjee et al., 2022) to a greater degree than in advanced economies (Gupta et al., 2002; Hofstede, 2007; House et al., 2004).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

“…Since existing divestment literature based on upper echelons theory heavily focuses on the Western context (Zhang et al, 2022), exploring the TMT heterogeneity and CEO characteristics of EM firms offers an opportunity to observe different parameters. Specifically, because power distance is relatively high in many EMs (Hofstede et al, 2010;House et al, 2004), the CEOs of EM firms are key decision-makers (Bruton and Lau, 2008;Garc ıa-G omez et al, 2023) and can determine the influence of returnee managers. Hence, this study broadens our understanding of the upper echelons characteristics and the nature of strategic decision-making that usually occurs at EM firms.…”

Section: Introductionmentioning

confidence: 99%

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Strategic divestment of emerging market firms: the influence of returnee managers and CEO characteristics

Kalasin

2023

JGM

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PurposeThis study aims to examine the role of returnee managers that can affect the strategic-divestment decision of emerging-market firms (EM firms). Drawing on arguments from the upper echelons theory and international human resource mobility perspectives, this study aims to propose that returnee managers influence corporate divestitures when the business outlook is negative. In addition, this study aims to examine the interplay between returnee managers and CEOs, whose characteristics can foster or undermine the efforts of returnee managers to engage in corporate divestments.Design/methodology/approachThis study examines 278 firms from nine emerging economies. The negative binomial regression was employed to estimate the model. In the robustness checks, the logistic regression was adopted to confirm the earlier findings.FindingsThe empirical results support the notion that returnee managers strengthen the relationship between firm performance and divestments. Because of the limited liabilities of foreignness and outsidership, returnee managers can gain social trust and credibility through communication and social interaction. Furthermore, the results provide mixed support for the moderating effect of CEO characteristics on the performance–divestment relationship.Practical implicationsThis study reveals that returnee managers are a great asset for EM firms that aim to find synergies and upgrade their capabilities through asset reconfiguration, which is an essential activity of emerging market firms to integrate themselves into the global competition. Meanwhile, CEO characteristics can foster (through their education level) or hinder (due to their age) divestment attempts, influenced by returnee managers.Originality/valueThis study explores an understudied phenomenon in international business (IB): strategic divestment of EM firms. The literature that examines strategic divestment and corporate refocusing in emerging markets is extremely limited. Furthermore, this study explores the novel topic that intersects the international business (IB) and international human resource management (IHRM) research areas. Specifically, this study investigates the impact of returnee managers on strategic divestments.

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Section: Discussionmentioning

confidence: 99%

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Strategic divestment of emerging market firms: the influence of returnee managers and CEO characteristics

Kalasin

2023

JGM

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“…Therefore, directors are vital in influencing the audit fees. Directors play a role in maintaining the corporate risk (García-Gómez et al , 2023; Zhang et al , 2022) and supervising the business operations (Jizi and Nehme, 2018); therefore, their capacity to operate the business is one of the indicators of the company’s accomplishment of goals. We argue that busy directors can increase audit fees because auditors require more time and resources to evaluate and understand directors’ involvement in the company’s operations.…”

Section: Introductionmentioning

confidence: 99%

Busy CEOs and audit fees: evidence from Indonesia

Harymawan,

Putri,

Ratri

et al. 2023

ARJ

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Purpose A company needs to use auditing procedures to ensure the reliability of financial statements while also providing transparency to stakeholders. The extent of risk associated with the company depends on the directors’ involvement in its daily operations. This paper aims to study the relationship between busy chief executive officers (CEOs) and audit fees. Design/methodology/approach This study uses 1,037 data samples from companies listed on the Indonesia Stock Exchange from 2010 until 2018. It adopts the ordinary least squares method to test the hypothesis. Furthermore, this study performs robustness tests, such as propensity score matching (PSM) and Heckman’s two-stage least square tests (Heckman, 1979), to address the endogeneity issues. Findings This study finds that the appearance of a busy CEO in a company will significantly increase the audit fee. It also concludes that a long tenure of a busy CEO will substantially weaken the positive relationship between the CEO and the audit fee. However, this study discovers that, in a company with a busy CEO, a monitoring mechanism through the independent commissioner and risk management committee will only help to maximize the firm’s practical risk evaluation a little. This result is robust because the PSM and Heckman tests display consistent results, so it is free from endogeneity issues. Practical implications This study is valuable for theoretical and practical development in Indonesia. Due to the minimum regulation about multiple positions on boards in Indonesia, the shareholders must be aware of the need to choose a board with more skill and commitment to improve the position of the company. This result also warns the C-level of the company to pay more attention to its risk-monitoring process to make it more effective and efficient. Originality/value Indonesia is one of the countries that have implemented the two-tier governance system. With the minimum regulation about multiple directorships in Indonesia, this study offers new insights into how a busy CEO will be related to the audit outcomes.

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