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    Is the dark triad always detrimental to firm performance? Testing different performance outcomes and the moderating effects of competitive rivalry
    (Frontiers Media S.A., 2023-03-10) Haar J; de Jong K; Thiel M
    There is growing evidence that CEOs who have the 'dark triad' of personality traits (Machiavellianism, narcissism, and psychopathy) detrimentally influence firm performance. However, there is still much we do not know. The present study suggests that the CEO dark triad might directly influence typical performance indicators in different ways: positively affecting external performance indicators (breakthrough sales), but negatively affecting internal performance indicators (organizational performance). We argue that the CEO dark triad can be interpreted differently by those external to the firm versus internally, where managers are much closer to the CEO's dark personality. Our model includes managerial capital as a mediator and competitive rivalry as a moderator, and ultimately tests a moderated mediation model. Using data from 840 New Zealand firms, we find that the dark triad links to outcomes, as expected. While the CEO dark triad is negatively related to managerial capital, managerial capital does positively predict both performance indicators, and partially mediates the CEO dark triad effect. Overall, moderating effects highlight that the CEO dark triad is less detrimental in fiercely competitive business environments, acting as a consistent boundary condition across models. As competitive rivalry increases, the indirect effect of the CEO dark triad on performance decreases. We discuss the implications for understanding the role that the CEO dark triad can play in firms.
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    Top management team attributes, multinationality and MNE performance : evidence from Chinese manufacturing enterprises : a dissertation presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in International Business at Massey University, Albany, New Zealand
    (Massey University, 2023) YE, Mingzhu
    The purpose of this research is to investigate how top management team (TMT) attributes explain the performance of Chinese Multinational Enterprises (CMNEs) by examining four TMT attributes: TMT tenure, TMT educational level, TMT international experience and TMT functional diversity. I propose that TMT attributes function as the micro-foundation of CMNEs’ performance. Previous research suggests that these selected attributes of top managers are valid proxies for TMT attitudes affecting international multinational decisions. Therefore, based on upper echelons theory and institutional theory, this research examines how multinationality mediates the relationship between TMT attributes and CMNE performance and how institutional factors of state ownership and formal institutional distance moderate the impact of TMT attributes on multinationality. This research applies a quantitative method by using large-scale secondary data to assess the proposed hypotheses. The sample generates panel data consisting of 7,627 firm-year observations from 1,125 publicly listed CMNEs. 56,188 individual top managers’ profiles are created to compute the TMT data for the sampled firms in the period from 2007 to 2019. Based on the sample of CMNEs in the manufacturing industry, the findings suggest that TMT tenure and TMT educational level have significant impacts on CMNEs’ performance and there is a U-shaped relationship between a firm’s multinationality and its performance. Moreover, multinationality partially mediates the direct TMT tenure and performance relationship. In addition, the institutional contexts the firms face in terms of state ownership and formal institutional distance are found to moderate the influence of some of TMT attributes on multinationality. The findings from this study contribute to the body of research grounded in upper echelons theory and institutional theory. It enriches the international business literature by exploring the effects of TMT attributes on multinationality. It empirically confirms that TMT tenure and TMT educational level function as a micro-foundation which has significant impacts on CMNEs’ performance, while the relationship between TMT tenure and CMNE performance is partially mediated by multinationality. Moreover, it further explores the contingency factors and boundary conditions in terms of state ownership and formal institutional distance for the relationship between TMT attributes and multinationality.
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    Use of Derivative and Firm Performance: Evidence from the Chinese Shenzhen Stock Exchange
    (MDPI AG, 19/02/2021) Wen Y; Kang Y; Qin Y; Kennedy J
    Financial derivatives have been increasingly used by firms to hedge against financial risks. However, it is still not clear what factors at the firm level lead to firms’ derivative use and whether derivative use can generate performance improvement, especially in the context of firms operating in emerging economies. Using the unbalanced panel data consisting of 2529 listed firms from China covering an 11-year period from 2005 to 2015, this study examines these two questions regarding firms’ use of financial derivatives. Based on results from the empirical analysis, this study identified operational cash flow, tax shield, R&D investment, and the possibility of bankruptcy, as the firmlevel factors that enable firms’ decision to invest in financial derivatives. More importantly, empirical findings from this study suggest that a firm’s derivative use tends to negatively affect firm performance, rather than improve firm performance. The negative effect of derivative use on firm performance is not consistent between the two groups of the better performer and poorer performer firms. While the poorly performed firms are more likely to use financial derivatives for the purpose of performance improvement, their derivative use tends to further damage, rather than improve, performance. These research findings have theoretical and practical implications.