Leader member exchange (LMX) theory focuses to the dyadic relations between leader and each member. Members are classified into two groups as in-group and out-group members. As out-group members try to fulfill their predefined tasks, in-group members' roles and responsibilities are negotiated...

Leader member exchange (LMX) theory focuses to the dyadic relations between leader and each member. Members are classified into two groups as in-group and out-group members. As out-group members try to fulfill their predefined tasks, in-group members' roles and responsibilities are negotiated...

Our paper examines two critical members in the top management “subteam” – CEO and CFO – in firms' merger and acquisition (M&A) decision. We propose a concept of CEO-CFO relative optimism, measured by CEO's optimism relative to CFO's pessimism, to capture the subteam's collective...

Financial performance is an important indicator in a company in measuring the level of viability of the company. This study aims to analyze the effect of CEO power (proxied by CEO ownership), and characteristics (CEO educational background and work experience) on firm performance as proxied by...

With a growing focus on diversity within industries and mainstream societal expectations, corporations have a renewed interest in organizing their leadership to accommodate these pressures. The representation of female directors in firm management positions and top executive positions have been...

For approximately eight years, Whole Foods Market, Inc. [Whole Foods] CEO John Mackey posted messages to Yahoo! Financial online message board for Whole Foods. Rather than using his real name, Mr. Mackey like many posters to chat rooms, created an online alter ego and posted his comments under a...

Elements of corporate governance must be activated at all scales for the efficient functioning of a nation‘s capital market. The effectiveness of the board of directors depends on factors related to, for example, the composition of the board and its independence. This study aims to investigate...

We investigate whether the equity-linked components of top executive pay have an effect on patenting activity within a firm. We find a positive relationship between firm patenting activity and managerial alignment incentives created by stock and stock option grants. Prior work has shown that the...

This paper investigates whether aligning manager and owner incentives can improve the innovation performance of firms. We find that pay-sensitivity works to align managerial actions to shareholder interests. As managerial wealth becomes more sensitive to the firm's stock price the innovation...

We examine the relation between managerial incentives and disclosure. Specifically, we examine how contracts that explicitly evaluate managers relative to peer performance are associated with: (1) the transparency of mandatory disclosure; (2) the provision of voluntary disclosure; and (3) the...