Strategic Leadership & Governance IG
Executives often prioritize maximizing immediate returns over investing to build a long‐term competitive advantage. How they think about the future offers one explanation for this short‐termism. This article distinguishes two…
Read MoreThis article examines the effect of negative news on financial risk. It shows that negative media articles regarding environmental, social, and governance (ESG ) issues increase a firm’s credit risk.…
Read MoreInvestors and entrepreneurs face uncertainty when deciding what firms to start and fund. We show that an intermediation effort to make entry easier for entrepreneurs increases the uncertainty that entrepreneurs…
Read MoreTop management teams (TMTs) in firms can fracture into subgroups based on demographic characteristics (e.g., age, gender, and education level) as well as based on task‐related characteristics (e.g., functional background,…
Read MoreThis paper shows that corporate short-termism is hampering business success. We show clear, causal evidence that imposing long-term incentives on executives—in the form of long-term executive compensation—improves business performance. Long-term…
Read MoreDespite criticism from stakeholders, the public, media, and policy makers, many firms do not take serious action against CEOs who have committed financial misconduct. Past studies have suggested that this…
Read MoreWe articulate how CEOs posses-sing certain psychological, behavioral, and social charac-teristics may unknowingly precipitate competitive attackson their firms. Our explanation integrates insights fromvictimology which explain how individuals are subject tomore…
Read MoreWe study how the optimal configuration of the overall pay system differs between firms that pursue growth‐oriented and efficiency‐oriented strategies. Our results show that growth‐oriented firms (prospectors) benefit from pay…
Read MoreBusiness headlines regularly feature episodes of organizational misconduct, such as product safety problems, environmental violations, employee mistreatment, and securities lawsuits, and their aftermath. In such scenarios, shareholders demand answers from…
Read MoreAs China’s environmental awareness is growing, the country’s government is increasingly concerned with the question as to how it can improve the environmental performance of the firms it controls. Our…
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