Session 108

CEOs Matter, Don\'t They?

Track O

Date: Tuesday, October 9, 2012

 

Time: 14:15 – 15:30

Paper

Room: Meeting Room 2.2


Session Chair:

  • Shih-Chi Chiu, Nanyang Technological University

Title: CEO Human Capital, Environmental Munificence and Corporate Divestiture Intensity

Authors

  • Shih-Chi Chiu, Nanyang Technological University
  • Richard Johnson, University of Missouri
  • Robert Hoskisson, Rice University

Abstract: This paper intends to address two key questions: how CEO human capital (industry experience and firm tenure) and social capital (board memberships) influences the magnitude of the firm's divestiture intensity, and to what extent the level of resource availability in the firm's product-market environment (i.e., munificence) moderates the CEO capital and divestiture intensity relationship. Our research findings based on the U.S. public firms that underwent divestiture activities between 1986 and 2004 demonstrate that CEO related factors have strong explanatory power with respect to how much a firm divests. This research adds value to the strategic change literature and resource dependence theory through accounting for the joint effects of management characteristics and environmental forces on a firm's efforts in configuring resources during corporate restructuring.

Title: CEO Regulatory Focus: The Impact on Firm Acquisitions

Authors

  • Daniel Gamache, University of Georgia
  • Gerry McNamara, Michigan State University
  • Russell Johnson, Michigan State University

Abstract: This research proposal examines how a CEO’s regulatory focus impacts their willingness to make acquisitions as well as the quality and type of the acquisitions that they do make. Regulatory focus theory demonstrates that decision making and goal pursuit are accomplished via either a promotion focus (a sensitivity to gains and a desire for advancement and growth) or a prevention focus (a sensitivity to losses and a desire for stability and security). Very little strategy research has explored the impact of a CEO’s regulatory focus on strategic actions. As such we expand strategic management research by providing one of the first empirical tests of the effects of a CEO’s regulatory focus on organizational outcomes.

Title: CEO Risk-taking Propensity and the Quality of Strategic Decisions: Effects of Living on the Wild Side

Authors

  • Chet Miller, University of Houston
  • Ioannis Thanos, Lancaster University
  • Vassilis Papadakis, Athens University of Economics and Business

Abstract: CEOs hold positions of great responsibility, yet their effects on organizational outcomes are not well understood. In this study, we examine the effects of CEO risk-taking propensity on the quality of strategic decisions. We include as part of our work an investigation of moderation based on environmental, managerial and decision uncertainty. Despite the potentially important role of CEO risk propensity, it has been infrequently studied in organizational research. Using data from a multi-method field study of 143 strategic decisions, we find evidence for an inverted U-Shaped relationship between this aspect of CEO personality and decision quality. Also, our findings indicate that decision uncertainty is an important moderator. Implications of these findings are discussed for the areas of CEO psychology, upper echelons, and managerial discretion.

Title: The Changing Value and Impact of CEOs: Evidence from Market Reactions and Firm Performance Following Unexpected CEO Death

Authors

  • Timothy Quigley, University of Georgia

Abstract: Despite the fact that CEOs have faced increased scrutiny and attention in recent years, perhaps suggesting their increasing importance, little is known about how the potential for CEO impact has shifted over time. In this study I consider if firm shareholders have evolved their view about the importance of CEOs and then test if these views are supported by subsequent results. Using a unique dataset of 193 unexpected CEO deaths, I show that the magnitude of market reaction to the loss of a CEO increased between 1950 and 2009. Further, these reactions correspond to subsequent changes in firm profitability. These results suggest that shareholders see CEOs as increasingly important determinants of firm outcomes. They further indicate that this position may be well founded.

All Sessions in Track O...

Sun: 08:00 – 09:15
Session 119: Strategic Leadership
Sun: 09:30 – 10:45
Session 120: Corporate Governance
Sun: 11:15 – 12:30
Session 122: Strategic Leadership and Corporate Governance Complementarities: Why we Are an IG
Sun: 15:15 – 16:30
Session 107: The Benefits of Experience: Vicarious and Otherwise
Mon: 08:00 – 09:15
Session 106: Why do Firms do Bad Things and What Do We Know about It?
Mon: 09:30 – 10:45
Session 103: Reputation: Organizational and Individual Dimensions
Mon: 13:30 – 14:45
Session 112: CEO and TMT Turnover: Firm Implications
Session 214: CEOs and Leadership
Mon: 16:30 – 17:45
Session 113: Large Shareholders are Doing it for Themselves
Tue: 08:00 – 09:15
Session 115: Board Member Characteristics and Board Diversity
Session 137: CEO Human Capital: Take a Little off the Top
Session 254: Capital Markets and Efficiency
Tue: 11:00 – 12:15
Session 111: Why Boards Look the Way They Do: Director Selection
Session 117: Heterogeneous Owner Types and their Influence
Tue: 14:15 – 15:30
Session 108: CEOs Matter, Don\'t They?
Session 116: Discretion and Compensation
Tue: 15:45 – 17:00
Session 114: Adoption of a Practice and its Implications
Tue: 17:30 – 18:45
Session 118: The TMT as a Unit
Session 215: CEO Personality and Characteristics Influencing Decision Making


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