CEO regulatory focus on digital transformation: Evidence from China.

Digital transformationsw has become crucial for business to stay competitive in today's technology-driven world. Research shows CEOs' characteristics can influence firms' digital transformation, however, this work has not considered the role of CEO regulatory focus. In this paper, we build a framework to understand the relationship between CEO regulatory focus and firm's digital transformation. Build on regulatory focus theory, we argue that CEO promotion focus is positively associated with enterprise digital transformation, whereas CEO prevention focus is negatively associated with enterprise digital transformation. We further identify two contextual factors that moderating the relationship between CEO regulatory focus and digital transformation. Specifically, we find CEO power and economic policy uncertainty strengthen the relationship between CEO regulatory focus and enterprise digital transformation. We find strong support for our hypotheses in a sample of 2696 Chinese publicly listed firms between 2008 and 2023. Our findings have significant implications for understanding the role of CEO regulatory focus on digital transformation.

The interactive effect of the career horizon and power of CEO on invention patents.

Invention patents are of great importance to firms, and thus understanding how invention patents are achieved is becoming increasingly important in the literature. Although previous research has shown that both CEO career horizon and CEO power are important for invention patents, little attention has been paid to their potential interactive effect. Investigating their interactive effect would be both theoretically meaningful and practically valuable. Using a sample of firms listed on the A-share market of the Shanghai and Shenzhen stock exchanges from 2010 to 2022, it is found that there is an interactive effect between CEO career horizon and CEO power, and that their interaction has a negative impact on invention patents. Furthermore, the interactive effect varies across different kinds of firms. This paper contributes to the literature on upper echelons theory by highlighting the interactive effects of multiple CEO characteristics on firm innovation.

Executive Board Chairs: Examining the Performance Consequences of a Corporate Governance Hybrid.

Traditional agency theory views the proper role of the board chair exclusively as providing independent oversight to monitor and control the CEO. Recently, firms have introduced innovations in board leadership that have confounded these theoretical expectations. One notable innovation is the executive board chair, a corporate governance hybrid responsible for both oversight and strategic decision-making, challenging agency theory's prescription that the two activities remain separate. In this study, we argue that an executive board chair position can resolve the trade-off between independent oversight and involvement in strategy and therefore generate a performance advantage. We also predict that, owing to the blurring of lines between the CEO and board chair roles that the executive board chair position creates, the relationship will be stronger the greater the need to monitor and control the CEO but weaker when organizational complexity and board leadership demands are greater. Analysis of S&P 1500 firms from 2003 to 2017 provides general support for our arguments.

The moderating role of CEO power on the relationship between environmental, social and governance disclosure and financial performance in emerging market.

The study proposes to examine how environmental, social and governance disclosure (ESG) affect the financial performance (FP) of Indian firms. Furthermore, it aims to evaluate the moderation impact of CEO power (CEOP) on the association between ESG on the FP. The study's target population is all firms indexed in NIFTY 100, representing the top one hundred firms by market capitalisation from 2017 to 2021. Data relating to ESG were collected and built based on the available data on Refinitiv Eikon Database. Results reveal that EDI positively and significantly impacts the ROE and TQ of Indian firms. Furthermore, SDI and GDI negatively and significantly affect the ROE and TQ of Indian firms. Moreover, ESG and CEOP have a significant impact on ROE. Nevertheless, ESG has a negative but highly significant impact on ROE, whilst it has a negative and low considerable impact on the TQ of Indian firms. Nonetheless, CEOP does not moderate the association between ESG and FP measured by ROE and TQ. This research contributes to the existing literature by introducing a moderator variable that has not been used in the Indian context; CEO power, which provides stakeholders and regulators with useful findings that would encourage firms to create an ESG committee to enhance ESG disclosure to compete on the world market and reach the United Nations (UN) Sustainable goal 2030. Furthermore, this paper provides insightful recommendations for creating an ESG legal framework for decision-makers.

How does CEO power and overconfidence affect the systemic risk of China's financial institutions?

The purpose of this paper is two-fold. First, this study measures the contribution of banks and non-bank financial institutions toward the systemic risk of China. Second, the present study investigates the relationship between CEO power, CEO overconfidence, and systemic risk. This study uses the Delta Conditional Value-at-Risk (∆CoVaR) method to measure the systemic risk contribution of firms listed on the Shenzhen and Shanghai stock exchanges over a period of 2006-2018. The results show that non-bank financial institutions are systemically more important compared to banks. We employed fixed-effect regression analysis to show that banks with overconfident CEOs increase the firm's systemic risk. The results also confirm that powerful CEOs enhance the contribution of non-bank financial institutions to systemic risk, whereas CEO power's impact was significant only for non-state-owned banks. The findings were further validated by the robustness test results obtained using the two-stage least squares approach. These findings are important for constructing regulations to reduce the contribution of firms to systemic risk.

Do financial performance and firm's value affect the quality of corporate social responsibility disclosure: Moderating role of chief executive officer's power in China.

This paper investigates the correlation between the quality of corporate social responsibility disclosure (CSRD) and financial performance (FP). It also investigates the moderating role of chief executive officer power (CEOP) in the relationship between the quality of CSR disclosure and firm value (FV) in Chinese listed companies. The evidential research used the up-to-date sample (3, 248) of unbalanced findings for the period of 2014-2020, from the registered Chinese firms in the Shenzhen and Shanghai Stock Exchanges as samples for the study. As a starting point technique, the STATA 15 has been used to test pooled ordinary least squares (OLS) regression on a sample of Chinese listed companies. We use 1-year lagged regression and two SLS regressions to monitor the potential endogeneity problem. The imbalanced data set was received from the China Stock Market and Accounting Research (CSMAR) web page, which is the most significant source of information for Chinese publicly listed firms. Data on CSR information items and media reporting are compiled manually. The findings of the study revealed that there are positive FP consequences for the companies engaged in the quality of CSR disclosure. We also report that higher CEO power negatively enhances the quality of CSR disclosure effect on the FP of FV. The research investigates the impact of CSR disclosure and FP by presenting evidence of the moderating role of CEO power. Therefore, it is suggested that a higher law for CSR engagement and disclosure be implemented in China, and robust measures for the implementation of CEO power, although there are financial advantages to be gained. A key relevance to the empirical quality of CSR disclosure research can be recognized as the moderating role of CEO power in the quality of CSR disclosure, FP, and FV in the context of Chinese study. The findings are robust with the use of an instrumental variable method.

Board interlocks and Corporate Social Responsibility data in the Mexican Stock Exchange.

Board interlocks (i.e. individuals that participate in two or more board positions) are a common mechanism to understand the network configuration of firms [2]. This paper presents and describes 2011 network and Corporate Social Responsibility (CSR) data using content analysis from annual reports of 137 listed firms in the Mexican Stock Exchange. [1]. Board interlocks were identified using board member names from each firm, creating a board member's list and matching them with the corresponding firm, resulting in a nxn matrix with 518 board interlocks. Empresa Socialmente Responsable variable was obtained from the 2012 list published every year by Centro Mexicano para la Filantropía, the non-for-profit organization in Mexico evaluating self-reporting CSR practices. Other variables were collected from firm's annual reports and Bloomberg's financial database. Finally, network characteristics such as the firm's centrality were calculated using UCINET 6.

The Mechanisms of Chief Executive Officer Characteristics and Corporate Social Responsibility Reporting: Evidence From Chinese-Listed Firms.

Corporate social responsibility (CSR) strategy hinges largely on the CEO characteristics in the context of an emerging market. Based on a sample of 16,144 firm-year observations obtained from 1,370 unique Chinese-listed firms, which whether voluntarily issue CSR reports over the period 2008-2019, this paper empirically examined the impact of CEO characteristics on the likelihood of issuing CSR reports. We find that CEO age, MBA education, international experience and political ideology consciousness are positively associated with the possibility of issuing CSR reports, while a newly appointed CEO will decrease the likelihood of issuing CSR reports. Moreover, we consider a contingent factor, namely CEO power over the board, can significantly enhance the relationship between CEO age, political ideology consciousness, and the likelihood of issuing CSR reports. Furthermore, there's no significant evidence indicating that CEO power can moderate the relationship between MBA education, international experience, and the likelihood of issuing CSR reports. Nonetheless, CEO power moderates the negative relationship between a newly appointed CEO and CSR reporting initiatives. This study attaches understandings to the extant literature that how top management characteristics can shape firm CSR strategies.

Data of CEO power, chair-CEO age dissimilarity and pay gap of Chinese listed firms.

This data describes the raw and processed information such as salary, power, and age of the CEO and the chairman between 2009 and 2018 in China's listed firms. The data set contains the data of variables based on the characteristic of the firm, personal, team, and supervision. The dissimilarities and similarities of the characteristics between the chairman and the CEO are the core of this data set. The dissimilarities refer to individual and team differences. Individual differences refer to differences in age, gender, tenure, experience, shareholding, and salary of the chairman and CEO, while team differences refer to differences in team size and the standard deviation of the management board members' age. The similarities refer to joint tenure and family relations between the chairman and CEO. These variables can be used to estimate the impact of chair-CEO age dissimilarity on the relationship between CEO power and chair-CEO pay gap of the Chinese listed firms through binary probit or multinomial regression.