Birds of a feather flock together: How and when does the fit of CEO–CFO high promotion focus predict new venture initial public offering fraud?

IF 4.6 3区管理学 Q1 BUSINESS Corporate Governance-An International Review Pub Date : 2023-06-25 DOI:10.1111/corg.12536

Mijia Gong, Zhe Zhang, Xiaohua Yang, Ming Jia

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Abstract

Research Question/Issue

This study attempts to examine how the fit of CEO and CFO high promotion focus, an important motivational-based psychological trait, can affect new venture initial public offering (IPO) fraud. Furthermore, we explore how this relationship is moderated by CEO–CFO status similarity (firm internal environment) and environmental dynamism (firm external environment).

Research Findings/Insights

Using a sample of Chinese new ventures listed on growth enterprise market from 2010 to 2016, we conduct computer-aided content analysis to quantify CEO and CFO promotion focus. Results show that the fit of CEO–CFO high promotion focus increases the likelihood of new venture IPO fraud. Moreover, CEO–CFO status similarity and environmental dynamism strengthen this positive relationship.

Theoretical/Academic Implications

We make three main contributions to the literature. First, we enrich upper echelons literature on CEO–top management team (TMT) interface by exploring how the psychological characteristic (promotion focus) of CEO–CFO dyad, a subteam of TMT, affects new venture IPO fraud. Second, we contribute to regulatory focus theory by extending interpersonal promotion fit to the context of upper echelons level and exploring its boundary conditions of CEO–CFO status similarity (internal environment) and environmental dynamism (external environment). Third, from the perspective of microfoundation, this study contributes to IPO fraud literature by investigating the antecedents of firm internal factors, specifically the psychological trait—high promotion focus fit of CEO–CFO.

Practitioner/Policy Implications

By examining the fit of CEO and CFO high promotion focus, this study shows the need to consider the motivational-based psychological traits of CEO and CFO when selecting, training, monitoring, dismissing, and compensating executives. Moreover, to prevent new venture IPO fraud, policymakers and key stakeholders such as the board of directors can consider paying much attention to firms with CEO and CFO who possess high promotion focus.

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物以类聚：首席执行官和首席财务官的高度晋升重点如何以及何时预测新企业首次公开募股欺诈？

研究问题本研究试图探讨首席执行官和首席财务官的高晋升关注度（一种重要的基于动机的心理特征）如何影响新创企业的首次公开募股（IPO）欺诈行为。此外，我们还探讨了这种关系如何受到首席执行官与首席财务官地位相似性（公司内部环境）和环境动态性（公司外部环境）的调节。研究结果/启示我们以 2010 年至 2016 年在成长型企业市场上市的中国新创企业为样本，通过计算机辅助内容分析法量化了 CEO 和 CFO 的晋升重点。结果表明，CEO-CFO高晋升关注度的契合度会增加新创企业IPO造假的可能性。此外，CEO-CFO地位的相似性和环境的动态性也加强了这种正相关关系。理论/学术启示我们对相关文献做出了三个主要贡献。首先，我们通过探讨作为 TMT 子团队的 CEO-CFO 组合的心理特征（晋升焦点）如何影响新创企业的 IPO 欺诈，丰富了有关 CEO 与高层管理团队（TMT）关系的上层文献。其次，我们通过将人际晋升契合扩展到高管层面，并探讨 CEO-CFO 地位相似性（内部环境）和环境动态性（外部环境）的边界条件，为监管焦点理论做出了贡献。第三，从微观基础的角度来看，本研究通过研究公司内部因素的前因，特别是 CEO-CFO 的心理特质-高晋升焦点契合度，为 IPO 欺诈文献做出了贡献。实践者/政策启示通过研究 CEO 和 CFO 高晋升焦点的契合度，本研究表明，在选择、培训、监督、解雇和补偿高管时，需要考虑 CEO 和 CFO 基于动机的心理特征。此外，为防止新创企业 IPO 造假，政策制定者和董事会等关键利益相关者可以考虑对首席执行官和首席财务官拥有高晋升关注度的企业给予高度关注。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Corporate Governance-An International Review Multiple-

CiteScore

7.00

自引率

11.30%

发文量

期刊介绍： The mission of Corporate Governance: An International Review is to publish cutting-edge international business research on the phenomena of comparative corporate governance throughout the global economy. Our ultimate goal is a rigorous and relevant global theory of corporate governance. We define corporate governance broadly as the exercise of power over corporate entities so as to increase the value provided to the organization"s various stakeholders, as well as making those stakeholders accountable for acting responsibly with regard to the protection, generation, and distribution of wealth invested in the firm. Because of this broad conceptualization, a wide variety of academic disciplines can contribute to our understanding.