The influence of CEO political outspokenness on stock market reaction and firm performance

CEOs\u27 public communications are considered essential parts of their stakeholder management efforts. Specifically, CEOs\u27 oral and written communications pertaining to their firms\u27 actions receive scrutiny from external stakeholders (e.g. investors, stock analysts, regulators) and members of the media (Conaway & Wardrope, 2010; Kassel, 2017). There is a burgeoning body of research on CEO communication. Research evidence, for instance, points to the extent to which CEOs\u27 communications influence firm performance and investor behavior (Whittington, Yakis-Douglas, Ahn, 2016; Elliott, Grant & Hodge, 2018). Furthermore, CEOs\u27 communications have been shown to shape firm reputation and stakeholder perceptions in times of crises (Seeger, Sellnow & Ulmer, 2003). In recent years, there have been reports of a growing number of CEOs publicly weighing in on controversial public policy debates (Chatterji & Toffel, 2016; Soergel, 2016). These CEOs are addressing a wide range of societal hot button issues in the political arena. This trend is considered unusual because it goes against the implicit societal expectation that CEOs refrain from being involved in controversial political debates and instead focus on managing their businesses. We refer to this growing trend as CEO political outspokenness and define it as CEO\u27s public and opinionated expression of personal beliefs and values on controversial political issues. Because this trend is very nascent, scholarly research has not examined the consequences of controversial political comments made by CEOs on firm performance. In exploring this issue, we consider two important contingency factors that moderate the impact of CEO political outspokenness on firm performance: firm \u27s past reputation ( Celebrity Status) and history of consumer activism. In the next section, we first provide an overview of CEO political outspokenness. We will then present our study\u27s predictions and conclude by highlighting the scholarly and managerial implications of our empirical findings

Hitting the ‘reset button’: The role of digital reorientation in successful turnarounds

Seismic shifts in industries brought about by radical technological innovations usually lead to a misalignment between the capabilities of many incumbent firms and the requisites of their new environment, and eventually, organizational decline. The current turnaround literature, while emphasizing operating and strategic responses to organizational decline that focus on efficiency and fine tuning product/market strategy respectively, ignores such organizational decline that requires fundamental reengineering of the whole firm and its value chain. This paper introduces the concept of digital reorientation as a long term turnaround strategy to respond to situations in which a firm’s environment has been fundamentally restructured. Digital reorientation is a technology-enabled, simultaneous and multilevel change that transforms the organization’s core architecture and the way it serves its customers. We develop a framework to understand this turnaround strategy relative to traditional operational and strategic options and formulate propositions on internal and external contingencies that will likely influence the effectiveness of its implementation. Finally, using the newspaper publishing industry as an example of an environment that has undergone such disruptive change driven by digital technological innovations, we examine how the use of digital reorientation could help declining firms in that industry successfully turnaround their performance

Busy Directors and The Occurrence of Corporate Environmental Misconduct

The occurrence of corporate misconduct is a significant organizational event that adversely affects not only the firm’s performance but also its relationships with key stakeholders. Corporate directors are pivotal in the prevention and management of organizational misconduct. In this study, we focus on the phenomenon of “overboarded directors” (those serving on three or more corporate boards). Specifically, we propose that busy directors are less likely to be effective in monitoring environmental misconduct given the substantial cognitive overload and a limited sense of alertness associated with multiple directorships. We propose that firms with busy directors are more likely to have environmental misconduct if they are led by a powerful CEO, do not have a superior ethical reputation, or are experiencing financial distress. We examine these predictions using a panel data on environmental violations among S&P 500 firms (2007-2016). The findings suggest the presence of busy directors is associated with a high likelihood and frequency of environmental violation. This relationship is stronger among firms experiencing financial distress, and weaker among those with superior ethical reputation. Overall, this study sheds light on the organizational consequences of overboarded directors as it relates to environmental misconduct

Strategic Agility, Business Model Innovation and Firm Performance: An Empirical Investigation

Despite the robust literature on the nature of business models and their implications for firm performance, research on the organizational antecedents of business model innovations (BMIs) is still evolving. In this paper, we empirically examine the extent to which firm-level strategic agility predicts the adoption of three (value creation, value capture, and value proposition) types of BMIs. Furthermore, we propose that the relationship between firm-level strategic agility and BMI adoption is contingent on the degree of environmental turbulence. Finally, we explore the mediating role that BMI plays in the relationship between firm-level strategic agility and firm performance. Our analysis of data from 432 German firms in the electronics industry indicates that strategic agility is positively related to BMI and that this relationship is indeed strengthened by the degree of environmental turbulence. Additionally, our findings show that, while value proposition and value creation BMIs have positive relationships with firm performance, value capture innovation is negatively related to firm performance; these findings are contrary to our prediction. Finally, the results of our mediation tests indicate that BMI serves as an important intermediary mechanism through which firms’ strategic agility contributes to superior firm performance

Hydrological Foundation as a Basis for a Holistic Environmental Flow Assessment of Tropical Highland Rivers in Ethiopia

The sustainable development of water resources includes retaining some amount of the natural flow regime in water bodies to protect and maintain aquatic ecosystem health and the human livelihoods and wellbeing dependent upon them. Although assessment of environmental flows is now occurring globally, limited studies have been carried out in the Ethiopian highlands, especially studies to understand flow-ecological response relationships. This paper establishes a hydrological foundation of Gumara River from an ecological perspective. The data analysis followed three steps: first, determination of the current flow regime flow indices and ecologically relevant flow regime; second, naturalization of the current flow regime looking at how flow regime is changing; and, finally, an initial exploration of flow linkages with ecological processes. Flow data of Gumara River from 1973 to 2018 are used for the analysis. Monthly low flow occurred from December to June; the lowest being in March, with a median flow of 4.0 m(3) s(-1). Monthly high flow occurred from July to November; the highest being in August, with a median flow of 236 m(3) s(-1). 1-Day low flows decreased from 1.55 m(3) s(-1) in 1973 to 0.16 m(3) s(-1) in 2018, and 90-Day (seasonal) low flow decreased from 4.9 m(3) s(-1) in 1973 to 2.04 m(3) s(-1) in 2018. The Mann-Kendall trend test indicated that the decrease in low flow was significant for both durations at alpha = 0.05. A similar trend is indicated for both durations of high flow. The decrease in both low flows and high flows is attributed to the expansion of pump irrigation by 29 km(2) and expansion of plantations, which resulted in an increase of NDVI from 0.25 in 2000 to 0.29 in 2019. In addition, an analysis of environmental flow components revealed that only four "large floods" appeared in the last 46 years; no "large flood" occurred after 1988. Lacking "large floods" which inundate floodplain wetlands has resulted in early disconnection of floodplain wetlands from the river and the lake; which has impacts on breeding and nursery habitat shrinkage for migratory fish species in Lake Tana. On the other hand, the extreme decrease in "low flow" components has impacts on pin smaller pools. These results serve as the hydrological foundation for continued studies in the Gumara catchment, with the eventual goal of quantifying environmental flow requirements.redators, reducing their mobility and ability to access prey concentrate

Organizational and competitive influences of exploration and exploitation activities in small firms

a b s t r a c t a r t i c l e i n f o This study explores organizational and competitive factors affecting exploration/exploitation activities in SMEs by examining the role of entrepreneurial orientation (EO), market orientation (MO) and perceived competitive intensity. We test the relationships among these variables using data collected from 55 manufacturing SMEs operating in the southern part of U. S. The findings provide a strong support for a positive association between EO, MO and exploration/exploitation activities. Perceived competitive intensity was only a significant moderator for the relationship between MO and the degree of exploratory activities. Our findings, hence, suggest the significant role organizational predictors play in enhancing exploration/exploitation activities in SMEs. Implications for research and practice are discussed

Ecological status as the basis for the holistic environmental flow assessment of a tropical highland river in Ethiopia

There is an increasing need globally to establish relationships among flow, ecology, and livelihoods to make informed decisions about environmental flows. This paper aimed to establish the ecological foundation for a holistic environmental flow assessment method in the Gumara River that flows into Lake Tana in Ethiopia and the Blue Nile River. First, the ecological conditions (fish, macro-invertebrate, riparian vegetation, and physicochemical) of the river system were characterized, followed by determining the hydrological condition and finally linking the ecological and hydrological components. The ecological data were collected at 30 sites along the Gumara River on March 2016 and 2020. River hydrology was estimated using the SWAT model and showed that the low flow decreased over time. Both physico-chemical and macroinvertebrate scores showed that water quality was moderate in most locations. The highest fish diversity index was in the lower reach at Wanzaye. Macroinvertebrate diversity was observed to decrease downstream. Both the fish and macroinvertebrate diversity indices were less than the expected maximum, being 3.29 and 4.5, respectively. The normalized difference vegetation index (NDVI) for 30 m and 60 m buffer distances from the river decreased during the dry season (March–May). Hence, flow conditions, water quality, and land-use change substantially influenced the abundance and diversity of fish, vegetation, and macroinvertebrate species. The pressure on the ecology is expected to increase because the construction of the proposed dam is expected to alter the flow regime. Thus, as demand for human water consumption grows, measures are needed, including quantification of environmental flow requirements and regulating river water uses to conserve the ecological status of the Gumara River and Lake Tana sub-basin

A lagrangian analysis of the sources of rainfall over the Horn of Africa drylands

The Horn of Africa drylands (HAD) are among the most vulnerable regions to hydroclimatic extremes. The two rainfall seasons—long and short rains—exhibit high intraseasonal and interannual variability. Accurately simulating the long and short rains has proven to be a significant challenge for the current generation of weather and climate models, revealing key gaps in our understanding of the drivers of rainfall in the region. In contrast to existing climate modeling and observation‐based studies, here we analyze the HAD rainfall from an observationally‐constrained Lagrangian perspective. We quantify and map the region's major oceanic and terrestrial sources of moisture. Specifically, our results show that the Arabian Sea (through its influence on the northeast monsoon circulation) and the southern Indian Ocean (via the Somali low‐level jet) contribute ∼80% of the HAD rainfall. We see that moisture contributions from land sources are very low at the beginning of each season, but supply up to ∼20% from the second month onwards, that is, when the oceanic‐origin rainfall has already increased water availability over land. Further, our findings suggest that the interannual variability in the long and short rains is driven by changes in circulation patterns and regional thermodynamic processes rather than changes in ocean evaporation. Our results can be used to better evaluate, and potentially improve, numerical weather prediction and climate models, and have important implications for (sub‐)seasonal forecasts and long‐term projections of the HAD rainfall

Simukunin from the Salivary Glands of the Black Fly Simulium vittatum Inhibits Enzymes That Regulate Clotting and Inflammatory Responses

BACKGROUND: Black flies (Diptera: Simuliidae) feed on blood, and are important vectors of Onchocerca volvulus, the etiolytic agent of River Blindness. Blood feeding depends on pharmacological properties of saliva, including anticoagulation, but the molecules responsible for this activity have not been well characterized. METHODOLOGY/PRINCIPAL FINDINGS: Two Kunitz family proteins, SV-66 and SV-170, were identified in the sialome of the black fly Simulium vittatum. As Kunitz proteins are inhibitors of serine proteases, we hypothesized that SV-66 and/or -170 were involved in the anticoagulant activity of black fly saliva. Our results indicated that recombinant (r) SV-66 but not rSV-170 inhibited plasma coagulation. Mutational analysis suggested that SV-66 is a canonical BPTI-like inhibitor. Functional assays indicated that rSV66 reduced the activity of ten serine proteases, including several involved in mammalian coagulation. rSV-66 most strongly inhibited the activity of Factor Xa, elastase, and cathepsin G, exhibited lesser inhibitory activity against Factor IXa, Factor XIa, and plasmin, and exhibited no activity against Factor XIIa and thrombin. Surface plasmon resonance studies indicated that rSV-66 bound with highest affinity to elastase (K(D) = 0.4 nM) and to the active site of FXa (K(D) = 3.07 nM). We propose the name "Simukunin" for this novel protein. CONCLUSIONS: We conclude that Simukunin preferentially inhibits Factor Xa. The inhibition of elastase and cathepsin G further suggests this protein may modulate inflammation, which could potentially affect pathogen transmission

Malaria and helminth co-infections in outpatients of Alaba Kulito Health Center, southern Ethiopia: a cross sectional study

<p>Abstract</p> <p>Background</p> <p>Distribution of malaria and intestinal helminths is known to overlap in developing tropical countries of the world. Co-infections with helminth and malaria parasites cause a significant and additive problem against the host. The aim of this study was to asses the prevalence of malaria/helminth co-infection and the associated problems among febrile outpatients that attended Alaba Kulito Health Center, southern Ethiopia November and December 2007. A total of 1802 acute febrile patients were diagnosed for malaria. 458 Giemsa-stained thick and thin blood films were used for identification of <it>Plasmodium </it>species and Stool samples prepared using Kato-Katz technique were used to examine for intestinal helminths. Haemoglobin concentration was measured using a portable spectrophotometer (Hemocue HB 201). Anthropometry-based nutritional assessment of the study participants was done by measuring body weight to the nearest 0.1 kg and height to the nearest 0.1 cm.</p> <p>Findings</p> <p>458 of the total febrile patients were positive for malaria. Co infection with <it>Plasmodium </it>and helminth parasites is associated with significantly (p < 0.001) higher anaemia prevalence than single infection with <it>Plasmodium </it>parasites. And this difference was also significant for haemoglobin concentration (F = 10.18, p = 0.002), in which patients co infected with <it>Plasmodium </it>and helminth parasites showed lower mean haemoglobin concentration. More than one-third of the infected cases in both malaria infections and malaria/helminth co infections are undernourished. However the statistics for the difference is not significant.</p> <p>Conclusion</p> <p>Malaria and soil-transmitted helminthiasis obviously contribute to anaemia and low weight status and these conditions are more pronounced in individuals concurrently infected with malaria and soil-transmitted helminths. Hence, simultaneous combat against the two parasitic infections is very crucial to improve health of the affected communities.</p