An empirical analysis of top management team strategic cognition, managerial attributes, audit committee effectiveness and their implications for corporate risk and performance

The events of the global financial crisis have hastened the refinement of existing corporate governance regulations and the development of new ones to strengthen corporate governance mechanisms. However, critics of this approach argue that strengthening the corporate governance system by itself cannot guarantee better organizational outcomes. Rather, understanding the cognitive footprints of the top management team (top management strategic cognition) and its implications on organizational outcomes represent a better alternative. Currently, empirical research that examines the effects of top management team (TMT) strategic cognition on firm outcomes is scarce and sparse. Therefore, our knowledge and understanding of how TMT cognitive structures (mental models) influence organizational outcomes is limited and scattered. This study uses a sample of balanced panel data from 311 UK FTSE companies from 2007 to 2016 to examine the effects of TMT strategic cognition on organizational outcomes. Since TMT members differ in their cognitive structures, both researchers and policy makers find it difficult to identify specific cognitive elements that can secure optimum organizational outcomes. The motivation for this thesis is to contribute to the corporate governance literature by presenting a unique decision making framework that examines six different top management strategic cognition pathways and how the elements in each pathway influences firm outcomes. This thesis uses the partial least squares- structural equation modelling (PLS-SEM) and fixed effects estimation methods. The findings based on this thesis provide three original contributions to the literature. First, the results show that a TMT strategic cognition that combines innovativeness and high risk preference can secure better organizational outcomes. Second, the analyses further show that firms that have experienced accounting and finance experts and communicate more about their corporate sustainability to their stakeholders perform better in both crisis periods and stable periods. Third, a bankruptcy model that combines managerial attributes, accounting data and market data can provide a better prediction of a firm’s bankruptcy probability and the variability in its market returns

Application of Algorithmic Cognitive Decision Trust Modeling for Cyber Security Within Organisations

Cybercrime continues to cause increasing threat to business processes, eroding stakeholders’ trust in Internet technologies. In this article, we explore how six dominant algorithmic trust positions facilitate cognitive processing, which, in turn, can influence an organization's productivity and align its values and support structures for combating cybercrimes. This conceptual paper uses a cognitive perspective described as a throughput model. This modeling perspective captures several dominant algorithmic trust positions for organizations, providing a new, and powerful approach which seeks to enhance our understanding of the cognitive representation of decision-making processes. These trust positions are rational-based trust, rule-based trust, category-based trust, third-party based trust, role-based trust, and knowledge-based trust. Finally, we provide conclusion and implications for future research

The effects of top management team strategic cognition on corporate financial health and value:an interactive multi-dimensional approach

The upper echelons theory posits that the values, personalities, experience and education background of the top management team (TMT) affect both executives’ strategic cognition and corporate outcomes. Since TMT members differ in their cognitive structures, as also acknowledged by the presence of managerial biases and irrationalities in the behavioural finance theories, policy makers and scholars are saddled with the problem of identifying specific cognitive elements that can secure optimum organisational outcomes. Conceptual approaches or linear relationships between TMT strategic cognition (TMT-SC) and outcomes are unable to capture the complex interdependencies among TMT-SC, TMT attributes and performance. We propose and empirically test a dynamic multidimensional TMT-SC model. Using handpicked UK company panel data, we provide robust empirical evidence that extends our understanding of the theory. Our PLS-SEM analyses show that heterogeneity in TMT academic and professional qualifications, and work experience alone cannot provide optimal benefits to organisations. However, when they are combined with other TMT cognitive factors such as social networking, innovativeness and risk-taking levels, these aspects appear to improve firm value and financial health

Behavioural Framework for Managing Conflict of Interests in Professional Accounting Firms

This paper proposes a behavioural framework to complement professional accounting firms’ measures for managing conflicts of interest. Following an empirical examination of the process through which conflicts of interest affect accounting professionals’ decision‐making, we develop guidance for practitioners that will enable them to incorporate behavioural interventions while establishing the context, assessing, treating, controlling and monitoring conflicts of interest. The interventions are aimed at strengthening accounting professionals’ independence in fact by increasing the professionals’ expectation that compliant decision‐making will result in positive outcomes, increasing their perception that making compliant decisions is less difficult than making the alternative decisions, facilitating the formation of highly ethical judgements and lowering their propensity to disengage. The data were collected through a quasi‐experiment with 105 professionals from the Big Four accounting firms in the UK. Our work offers practical implications for professional accountants, executive directors, regulatory bodies, executive training and academic research. Other professions facing the ramifications of conflicts of interest (e.g. law, engineering, medicine and architecture) may also use the proposed framework to improve their ethics policies and corporate governance codes for managing conflicts of interest

Blockchain, business and the fourth industrial revolution:Whence, whither, wherefore and how?

Blockchain is one the most remarkable technological innovations of the 21st century. The most notable application of blockchain is in the development and operation of cryptocurrencies (e.g. bitcoin, ethereum, among others). Besides the financial services industry, blockchain is also considered in other sectors such as international trade, taxation, supply chain management, business operations and governance. However, blockchain has not been examined comprehensively in all areas of relevant literature. This article conducts a survey of the literature to gain an understanding of the opportunities and issues presented by blockchain in various business functions. The article begins by providing a discussion regarding how the blockchain technology operates. The paper takes a broad focus in its analysis of the prospects of blockchain for various business functions, including banking and the capital markets, corporate governance, international trade, and taxation. The paper demonstrates how organisations and regulators can leverage blockchain to upscale business operations, enhance efficiency and reduce operational costs. The key drawbacks of blockchain that stakeholders need to bear in mind before adopting the technology are also highlighted. The article also reflects on how organisations can tap into blockchain to reap the full potential of the fourth industrial revolution

Female Board Representation as Determinant of Coupled Open Innovation: Evidence from Emerging Market Multinational Enterprises

Little research has been done on female board representation in emerging market multinational enterprises (EMNEs). Our paper considers the role of female board representation and its impact on open innovation (OI) in the unique context of emerging markets. We draw on upper echelons and institutional theories to understand how female board representation and crosscountry institutional contexts influence coupled OI. Combining a 10-year (2009-2019) dataset with a rich in-depth content analysis of 183 (EMNEs) engaged in OI, our results reveal a significant positive association between female board representation (i.e., promoting women on boards) and a firm's commitment to coupled OI practices. We also find that country-level institutional factors affect and positively moderate the relationship between female board representation and coupled OI. In emerging market environments where managerial perception and culture sometimes hinder the promotion of females into top positions, our work has implications for EMNEs regarding how they harness diversity. We contribute to the OI literature by showing that female board representation enhances corporate OI investment within EMNEs

Resource Re-orchestration and firm survival in crisis periods: The role of business models of technology MNEs during COVID-19

Using data from world-leading digital-driven/technology multinational enterprises (DTMNEs), we draw from the resource orchestration theory to investigate the associations between business model (BM) drivers and firm performance during crisis periods. Drawing on data from the COVID-19 pandemic period, we deploy diverse analytical approaches including multivariate linear regressions and aggregated composite index statistical methods in examining how the BMs of our sampled DTMNEs drive firm performance. Our study highlights six methodological approaches that can be utilised by decision-makers in examining which variables in their BM drive better firm performance. Our findings revealed that the principal component analysis and multicriteria decision analysis (PROMETHEE methods) that espouse the use of aggregate composite index can provide significant and consistent predictive results in comparison to the traditional linear methods when examining the association between BM and firm performance during crisis periods. The paper provides policy and managerial implications on how firms and decision-makers can bolster business continuity, resilience, and plasticity by using analytical lenses that identify optimum resource orchestration during crises

Stakeholder Management Challenges and the Complexities of Promoting Sustainable Entrepreneurship in Africa

In recent years, there has been significant attention given to stakeholder management, which involves the intricate interaction between organisations and individuals, as well as diverse groups that can significantly affect or shape an organisation’s decisions. While progress has been made, African countries are seen as the next promising frontier for progress and advancement. Nevertheless, there remains a lack of understanding of this concept, as the continent is undergoing remarkable economic growth. Entrepreneurs operating in such environments face intricate landscapes when it comes to stakeholder management. Consequently, understanding how stakeholders contribute to the growth of entrepreneurial ventures in Africa is crucial to promote sustainable and responsible business practices. This chapter presents insights that can stimulate future research on stakeholder management within the intricate and diverse African setting. The chapter conceptualises the relationship between stakeholders and entrepreneurship in Africa and shows how entrepreneurial firms navigate the challenges associated with weak institutional environments.</p

Stakeholder Management Challenges and The Complexities of Promoting Sustainable Entrepreneurship in Africa

YesIn recent years, there has been significant attention given to stakeholder management, which involves the intricate interaction between organisations and individuals, as well as diverse groups that can significantly affect or shape an organisation's decisions. While progress has been made, African countries are seen as the next promising frontier for progress and advancement. Nevertheless, there remains a lack of understanding of this concept, as the continent is undergoing remarkable economic growth. Entrepreneurs operating in such environments face intricate landscapes when it comes to stakeholder management. Consequently, understanding how stakeholders contribute to the growth of entrepreneurial ventures in Africa is crucial to promote sustainable and responsible business practices. This chapter presents insights that can stimulate future research on stakeholder management within the intricate and diverse African setting. The chapter conceptualises the relationship between stakeholders and entrepreneurship in Africa and shows how entrepreneurial firms navigate the challenges associated with weak institutional environments.The full-text of this book chapter will be released for public view at the end of the publisher embargo on 7 Jun 2025

The diffusion of innovation theory and the effects of IFRS adoption by multinational corporations on capital market performance: a cross-country analysis

This paper seeks to contribute to IFRS literature by examining the effects of adopting international financial reporting standards (IFRS) on stock market performance around the world from the perspective of the diffusion of innovation theory. Using combinations of unique panel data sets from 110 countries around the world spanning 1995-2014, and robust empirical analysis, our study revealed several interesting findings including the following; First, we find a positive association between the late mandatory IFRS adoption and EU stock market integration. Second, our findings indicate a significant negative association between the early IFRS adoption and the following financial indicators: stock market trading volumes, stock market capitalization, stock market turnover, and return. Third, our study revealed an insignificant association between early IFRS adoption and stock price volatility alongside stock market development. Our findings are robust and have important practical and policy implications for regulators and policymakers of multinational corporations