Which Executive Characteristics Create Value in Banking? Evidence from Appointment Announcements

Nguyen, Duc Duy; Hagendorff, Jens; Eshraghi, Arman

doi:10.1111/corg.12084

Cited by 96 publications

(107 citation statements)

References 87 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In addition, findings from this study provide a strong rationale for using both utility and justice rationales when discussing diversity and WoB. With an increased focus on board diversity (Ararat, Aksu, & Tansel Çetin, 2015;Bianco et al, 2015;Nguyen, Hagendorff, & Eshraghi, 2015;Veltrop, Hermes, Postma, & de Haan, 2015) and the use of public policy initiatives to increase the share of WoB (Ahern & Dittmar, 2012;Bøhren & Staubo, 2014), there is a need to widen and reframe the discourse, combining both utility and justice logic in order to enhance and develop both the academic and political debates further.…”

Section: Discussionmentioning

confidence: 91%

Beyond the Business Case: The Need for Both Utility and Justice Rationales for Increasing the Share of Women on Boards

Seierstad

2015

Corporate Governance

View full text Add to dashboard Cite

Manuscript type: EmpiricalResearch Question: In the context of the recent introduction of gender representation regulations (quotas) for boards in public limited companies (PLCs) in Norway, this article explores how gender quotas designed to increase the share of women in senior positions are rationalized and/or justified by those who benefit, and asks: what arguments do the beneficiaries of quotas tend to use when discussing their usefulness? Research Findings/Insights: Drawing on qualitative interview data from 19 female non-executive board members, the article illustrates how women draw on utility, mainly the "business case," and individual justice arguments both in support of quotas and to justify their use in helping women attain board positions. Further, it highlights how issues of merit and of gender are entangled with these arguments in often contradictory ways. In so doing, the article challenges and complicates some of the key critiques of gender quotas often found in the public and academic debates. Theoretical/Academic Implications: This article advances theory around the intersection of justice and utility arguments in relation to the use of quotas to increase diversity on boards. Moreover, this article provides empirical support by demonstrating how "the first wave" of women affected by quotas are legitimizing their role on boards in a context in which their role is in question. In addition, this article advances the literature regarding women on boards by demonstrating the need for a discourse about political strategies, such as quotas on boards, that goes beyond the narrow understanding of the business case that has until now dominated public, political, and academic debates. In particular, this article argues for the need to build on both utility and justice logic when making a case for increasing the share of women on boards. Practical Implications: With the current focus on how to increase diversity and the share of women on boards, this study highlights the importance of regulation as well as the importance of reframing the debate using utility and justice lines of arguments rationalized by merit arguments.

show abstract

Section: Discussionmentioning

confidence: 91%

Beyond the Business Case: The Need for Both Utility and Justice Rationales for Increasing the Share of Women on Boards

Seierstad

2015

Corporate Governance

View full text Add to dashboard Cite

show abstract

“…18 In the second-stage, we use the estimated 17 In the absence of perfect information in hiring decisions, one important indicator of a prospective CEO's managerial talent, or innate ability, is their University education. In support, empirical papers examining CEO appointments find that stock markets positively value CEO educational backgrounds (Falato et al, 2015;Nguyen et al, 2015). Moreover, Rivera (2010) examines the hiring process at investment banks and other elite professional services firms by conducting interviews with industry professionals responsible for hiring high-level employees.…”

Section: Endogenous Bank-ceo Matchmentioning

confidence: 99%

What's in an education? Implications of CEO education for bank performance

King

Srivastav

Williams

2016

Journal of Corporate Finance

228

221

View full text Add to dashboard Cite

Exploiting a unique hand-built dataset, this paper finds that CEO educational attainment, both level and quality, matters for bank performance. We offer robust evidence that banks led by CEOs with MBAs outperform their peers. Such CEOs improve performance when compensation structures are geared towards greater risk-taking incentives, and when banks follow riskier or more innovative business models. Our findings suggest management education delivers skills enabling CEOs to manage increasingly larger and complex banking firms and achieve successful performance outcomes.

show abstract

“…Top executive replacement following poor performance has been recognized to influence successful turnarounds, particularly under strong institutional forces (Gong & Wu, 2011;Nguyen et al, 2015). A related stream of research has explored the link between executive backgrounds and successful turnaround (e.g.…”

Section: Role Of Top Executives In the Turnaround Processmentioning

confidence: 99%

Founder‐CEOs and corporate turnaround among declining firms

Abebe

Tangpong

2017

Corporate Governance

View full text Add to dashboard Cite

Manuscript Type: EmpiricalResearch Question/Issue: Despite the growing interest in leaders' role in the turnaround process, there is a paucity of research on founder-CEOs' role in achieving successful turnaround among declining firms. In this study, using insights from the organizational identification literature, we argue that founder-CEOs play an important role in turnaround attempts due to their strong organizational commitment and psychological attachment to the declining firm as well as the relative absence of agency problem issues common among their non-founder counterparts.Research Findings/Insights: Using data from a matched pair sample of 142 US firms that experienced performance decline, we found that founder-CEO leadership significantly increases turnaround success in declining firms. We also found that, among turnaround firms, those led by founder-CEOs tend to put more emphasis on market-based turnaround strategies, such as new product introductions, and less emphasis on retrenchment actions, such as divestments.Theoretical/Academic Implications: Our findings contribute to corporate turnaround research by providing a more nuanced view of leaders' role in the turnaround process by specifically exploring the effect of founder CEO leadership. Furthermore, this study contributes to the turnaround literature by highlighting the strategic choices of founder-CEO-led firms and how these choices influence successful turnaround. Finally, by introducing organizational identification perspective, this study provides additional theoretical explanation of leadership antecedents of successful turnarounds.Practitioner/Policy Implications: The findings of this study suggest that boards of directors, shareholders, and consultants who often participate in turnaround management should carefully consider retaining founder-CEOs and endorsing their leadership during the turnaround process. Further, the findings provide turnaround specialists and other stakeholders with further understanding of not only the importance of product market strategies in the turnaround process but also founder-CEOs' role in fostering such strategies.

show abstract

Which Executive Characteristics Create Value in Banking? Evidence from Appointment Announcements

Cited by 96 publications

References 87 publications

Beyond the Business Case: The Need for Both Utility and Justice Rationales for Increasing the Share of Women on Boards

Beyond the Business Case: The Need for Both Utility and Justice Rationales for Increasing the Share of Women on Boards

What's in an education? Implications of CEO education for bank performance

Founder‐CEOs and corporate turnaround among declining firms

Contact Info

Product

Resources

About