The National Culture, Measured By Hofstede Indexes, Influence The Decision Of Ceo Turnover

To the extent of prevention of corporate failure, I argue that three ASX principles and recommendations could halt the demise of Dick Smith. Firstly, the 2nd principle which is “Structure the board to add value” by structuring the board with a majority of independent directors would prevent CEO dominance because some suggest that independent outside directors can reduce the influence of dominant individuals (ASX, 2014, p. 17). In accordance with Gallagher and Bennie (2015, p. 20), the independent directors are likely to focus on the company’s objectives and not to make decision relying on others. Furthermore, an addressing of independent directors would reduce the reliance on management, and create the effectiveness on monitoring (Dechow et al. 1996 cited in Christensen, Kent, and Stewart (2010)), as well as capability to lessen the conflict of interest between managers and shareholders (Hardjo & Alireza, 2012, p. 4). Thus, DSE’s board would be more active to monitor the CEO’s performances because independent directors pay attentions to the interest of company (Gallagher & Bennie, 2015, p. 20) and shareholders (Hardjo & Alireza, 2012, p. 4)

Within the field of management, the success and failure of the modern business organisation has been largely depicted by the intricate concept of culture. Organisational culture, a concept borrowed from borrowed mostly from anthropology typically is defined as a complex set of values, beliefs, assumptions and symbols that define the way in which an organisation conducts and manages its business (Barney 1986). Management is not just an act of change, but the responsibility for and control of a company or similar organisation (Willmott 1983). It is the management of organisational culture that merely drives the

• “To what degree do you believe the behaviors of the featured CEOs constituted "misbehavior" and that reactions of the boards were correct?” (Ivancevich, J.M., Konopaske, R., & Matteson, M.T., 2014).

The risk factors when dealing with corporate culture are numerous and should not be understated. If ignored a festering corporate culture can be detrimental to the health and longevity of a company, a prospering culture can have an equal and opposite effect. While management might be limited in quickly changing a company’s underlying corporate culture, especially in the aspect of underlying assumptions as previously discussed, there are some cases where a change, even a slow one, might be required. It is important during these culture changes to use outside personnel to fully identify the current company culture and be cognizant of the results the change will have, consult personnel about the change and solicit feedback, and implement the

A recent study by Xue Wang (Emory University) tackles how SOX has affected the compensation and turnover rates of CFOs.   They play a critical role in developing firms’ financial reporting and making voluntary disclosure decisions.   Moreover, CFOs are ultimately responsible for the quality of internal control systems.   The study provides some important insights about the impact of SOX on the executive labor market.   It shows that requiring more disclosure of information about a firm’s internal controls provides some positive benefits with respect to corporate governance, in this case making it easier for boards to monitor the activities of CFOs.   In comparing and contrasting firms with strong internal controls received an increase in salary, bonus, and total compensation in the post-SOX time periods.   In contrast, CFOs of corporations reporting a problem with their internal controls incurred a significant reduction in their compensation packages.   With respect to CFO turnover, Wang did find that CFO turnover rates generally increased form the pre- to post-SOX period.

Culture is an important aspect of an identity. It is what we believe, how we behave and culture influences an identity’s decision making. Organisational culture is the deep, basic assumptions, beliefs and shared values that define organisational membership. It is also defined as member’s habitual ways of making decisions and presenting themselves and their organisation. In this essay, I will be discussing about organisational culture in the post-bureaucratic era. First of all, I will be talking about how top management and employees related through culture by utilising

Corporate Culture is widely used in many organisations and has a variety of definitions. It has been defined by Koozes, Caldwell & Posner cited by Moorhead/Griffin, (1989:494) as:

The early dismissal of newly appointed CEOs refers to CEO dismissal within three years of tenure, following practice in the literature (Zhang, 2008; Shen & Cannella, 2002; Finkelstein & Hambrick, 1996). While prior literature identified poor performance and corporate

The purpose of the paper is to analysis a position in leadership within the next five to ten. The culture of the organization is affecting its ability to function as a viable company. In this paper we will give a brief history, current situation, recommendations and conclusions.

In the light of various corporate scandals, regulatory bodies and corporate governance were placed under pressure by shareholders and stakeholders to form a tighter grip in governing corporation’s conduct. The obligations, roles and responsibilities of company’s stewards are under scrutiny of Corporations Act, listing rules, country’s code of corporate governance, ethics as well as social standards.

An Organization success depends on how employees, leaders, groups, and individuals work together. Now a company is usually ran on a set of foundations that have been laid out in terms such as, but not limited to, values, beliefs, norms, language, and habits. In order to have a successful working environment, one must reach out to get to know their employee beliefs, values, most importantly get to know their employees personalities. Happy leaders, lead happy workers, who in turn are more dedicated, and willing to put the work in to make the company a success. In order to maintain a successful running business, you must learn to train, and maintain happy employees. In this paper we are going to look at Geert Hofstede, social psychologist and foremost authority on global and organizational cultures, and how he defines six dimensions: Power Distance, Individualism, masculinity, Uncertain Avoidance, Long Term Orientation, and Indulgence and how all these dimensions tie into a successful business. I intend to give you the two countries that I choose to compare using the Hofstede Six Dimensions of culture, to show you have different cultures impact their work relationships.

I examine how cross sectional differences in national culture dimensions affect the probability of CEO turnover and its sensitivity to firm performance after cross-listing by a non-U.S. firm in the United States. I find that three of the Hofstede indexes (long Term Orientation, Power Distance, and Uncertainty Avoidance) have a significant negative effect on the probability of CEO turnover. For two of these indexes, when firms from a country with a higher (lower) index than the U.S. cross-list in the U.S., on average the firm becomes more (less) sensitive to negative firm performance as compared with the non-cross-listed firms from the same country. This shows an increase (decrease) in probability of CEO Turnover. The two-way effect of national culture of the host country (the U.S.) on cross-listed firms suggests that cultural exchange affects corporate culture and consequently relevant financial decisions.

An organization is affected by cultural factors on many levels. The top management forms the basic foundation of an organization when they set the primary goals for that organization, the reason the organization is in business. An example might be an American car company with the goal of producing vehicles for the public and bringing in large profits for the shareholders. This goal is derived in the root cultural tenant of capitalism. The United States was founded with capitalist ideas and so American managers will have capitalist ideas. Now the same type of company in the Soviet Union, before the end of the cold war, may have had the goal of producing efficient military vehicles, not being concerned about the profit margin rather the purpose of the product. This goal would have been derived from the socialist belief of “all things are for the good of the state.”

After the financial scandals in the early 2000s, i.e. Enron, Worldcom, and Satyam Computers, researchers have increased interest in understanding the character and positions of chief executives. One reason for this growing interest relates to the control of executives over the financial reporting (Geiger and North 2006, Ferrell and Ferrell 2011, Francis, Huang, Rajgopal, Zang 2003). Another reason relates the issuance by the SEC of a one-time order requiring “written statements, under oath, from senior officers of certain publicly traded companies…revenues…greater than $1.2 billion (SEC order no. 4-460)” (Geiger and Taylor III 2003; Zhang and Wiersema 2009).

This paper aims to investigate the relationships between the educational backgrounds of board of directors (BOD) and firm performance in China. More specifically, the paper is expected to have two significant contributions to understanding firm performance and behaviour on which many studies have not focused. It will examine the relationship between BOD’s background of law and firm’s tax avoidance. It will also emphasise on the relationship between BOD’s experience studying abroad and firm’s foreign investment expenses. All sample firms in this paper are publicly listed in Shanghai Stock Exchange (SSE) in China.