Search Results (6)

The chairperson’s statement (CS) has evolved into a key component of corporate reporting, offering an authoritative, high-level summary of a company’s activities, initiatives, operations, financial performance, and achievements over the preceding financial year, along with insights into future outlooks. Recognised for its informative value, the CS is consistently ranked by stakeholders as the most read and most influential section of the integrated report. Despite its importance, the CS is also a platform where corporate management often engages in impression management (IM) to portray a biased and overly positive image of the company. This study conducted a systematic literature review to examine the IM tactics employed within the CS. Based on the findings, an integrative conceptual framework was developed. Identified IM tactics include readability, textual characteristics, the influence of culture, legal systems and capital markets, paratext and intertextuality, the tone of language, forward-looking statements, retrospective sense-making, ambiguous language, the use of photographs and graphs, impersonalisation and evaluative language, and self-serving attributions. The results highlight that the study of IM strategies in CSs represents a rich and relevant research domain that warrants deeper exploration. Given its qualitative complexity and underexplored dimensions, this area offers several promising avenues for future investigation. Full article

In the context of digital intelligence, innovation is vital for manufacturing enterprises to establish sustainable competitive advantages. As the cornerstone of decision-making, the information-processing capability of top management teams plays an essential role in driving organizational success. Using panel data from A-Share manufacturing listed companies between 2015 and 2023, we conducted programming in the R language employing hierarchical clustering and k-means algorithms for faultline grouping calculations. The empirical analysis portion utilized STATA software, where the Hausman test was implemented to determine the use of a fixed-effects model for computation. The results demonstrate that task-related faultlines, driven by factors such as educational background, tenure, career experience, and years of service, have a positive impact on innovation performance. In contrast, relationship-related faultlines influenced by gender and age exhibit a negative effect. Furthermore, long-term investment decision preferences mediate the relationship between faultlines and innovation performance. Performance expectation gaps amplify the positive influence of task-related faultlines and mitigate the negative effects of relationship-related faultlines. In comparison with the majority subgroup, when the chairperson is part of a minority subgroup, the faultline has a more significant impact on innovation performance. This study presents a novel framework for fostering innovation within the manufacturing industry under the digital intelligence context. By combining R programming with empirical analysis, we thoroughly examine how the characteristics of top management teams’ faultlines influence innovation performance through an information processing perspective. Our findings provide actionable insights for optimizing executive structures and aligning decision-making strategies, thereby advancing organizational effectiveness. Full article

This study investigates the association between the compensation of Remuneration Committee Chairpersons (RCCs) and their characteristics. Utilizing data from firms listed on the UK FTSE350 index between 2010 and 2020, the research unveils that RCC remuneration is influenced by factors such as observable efforts, time commitment, and accumulated experience. Notably, the analysis reveals a substantial gender gap in RCCs’ pay. The results suggest that the contractual pricing of individual director-level attributes plays a role in explaining disparities in compensation for roles with similar responsibilities. Furthermore, the study sheds light on the intricate process of determining compensation within the directorial hierarchy. It delves into how differences in pay among individuals occupying similar positions across various companies can be elucidated by the distinct attributes and qualifications of each individual. Ultimately, the findings advocate for a nuanced examination of directorial roles, highlighting the necessity of distinguishing between different director roles rather than treating them as a homogeneous entity. Full article

Earlier research has shown that the makeup of the corporate board is a crucial predictor in meeting stakeholder accountability expectations through voluntary Corporate Social Responsibility (CSR) disclosure. Though scholars have identified substantial relationships between board composition and CSR disclosure, the majority of their focus has been on the ‘quantity’ of CSR disclosure rather than the ‘quality’. Therefore, the present study considers the association of board characteristics (such as gender diversity, independence, female chairperson or/and female CEO, and board size) and the quality of CSR disclosure of the top 100 Pakistan Stock Exchange (PSX)-listed companies. We conducted content analysis of secondary Corporate Governance (CG) and CSR data extracted from the annual reports of PSX-listed companies across ten industrial sectors from the period 2017 to 2018. Our empirical investigation through univariate and multiple regression analysis with ordinary least squares (OLS) techniques revealed that all the board characteristics potentially had a significant association to lower CSR disclosure quality. Using the 2SLS regression model, we addressed the endogeneity issue of board characteristics and found robust results. One of the important implications of our findings is that policymakers and regulators in developing countries like Pakistan should review the value of board qualities as outlined in CG principles and develop stronger mechanisms to improve numbers of female directors and nonexecutive directors’ independence. We acknowledge several research limitations, including the study time period and selected board characteristics. While our study has provided some understanding of the association of board characteristics with CSR disclosure quality of PSX-listed companies, several research gaps still need to be addressed. Future investigators should examine this association through the pre-COVID-19 and post-COVID-19 contexts and the inclusion of a systems theory perspective. Full article

Environmental investment of companies can not only bring profits to firms but also contribute to environmental protection. However, little is known about how chairperson characteristics affect companies’ decisions on environmental investment. This paper fills the gap in the literature by studying the impact of chairperson characteristics on firms’ environmental investment. For empirical evidence, we conduct a regression on environmental protection disclosure data of Chinese listed companies sourced from the CSMAR database. We find that China’s overall environmental protection disclosure level is relatively low. The age of the chairperson has an inverted U-shaped relationship with environmental investment, and a female chairperson has a significant positive effect on environmental investment. Contrarily, the education level and political connections of the chairperson have no significant impact on firms’ environmental investment. Understanding the effect of these factors will help companies plan their environmental protection activities more efficiently. Full article

The top management team (TMT) is a key resource for an enterprise’s sustainability, and the study of TMT characteristics is very important to explain the factors involved in an enterprise’s development. In order to comprehensively evaluate the impact of TMT characteristics on enterprise performance in China, the effect of average characteristics and vertical dyad characteristics of TMTs on enterprises performance was researched in this paper. This study is based on upper echelon theory, the similarity–attraction paradigm, and social categorization theory, stemming from the dual perspectives of social psychology and social politics. The concept of chairperson–TMT vertical dyad similarity is first proposed as a TMT characteristic, and the effect of vertical dyad similarity on enterprise performance is empirically analyzed using panel data from 235 manufacturing small- and medium-sized enterprise (SME) samples. The findings demonstrated that TMT average tenure, TMT age vertical dyad similarity, and tenure vertical dyad similarity have a significant positive effect on enterprise performance, while TMTs’ other average characteristics and chairperson–TMT vertical dyad differences have no significant effect on enterprise performance. Full article