Contemplating the Impact of the Moderators Agency Cost and Number of Supervisors on Corporate Sustainability Under the Aegis of a Cognitive CEO

The social cognitive theory emphasizes the risk-taking behavior of an entrepreneur, which leads him to make the right decisions. In this regard, this study formulates the concept of the cognitive CEO through the DAE statistical technique. Specifically, CEO attributes such as CEO age, CEO compensatio...

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Autores principales: Sarfraz, Muddassar, Ozturk, Ilknur, Shah, Syed Ghulam Meran, Maqbool, Adnan
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2020
Materias:
Psychology
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7267056/
https://www.ncbi.nlm.nih.gov/pubmed/32536890
http://dx.doi.org/10.3389/fpsyg.2020.00965
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author Sarfraz, Muddassar
Ozturk, Ilknur
Shah, Syed Ghulam Meran
Maqbool, Adnan
author_facet Sarfraz, Muddassar
Ozturk, Ilknur
Shah, Syed Ghulam Meran
Maqbool, Adnan
author_sort Sarfraz, Muddassar
collection PubMed
description The social cognitive theory emphasizes the risk-taking behavior of an entrepreneur, which leads him to make the right decisions. In this regard, this study formulates the concept of the cognitive CEO through the DAE statistical technique. Specifically, CEO attributes such as CEO age, CEO compensation, CEO tenure, goodwill, and the number of CEO-attended meetings are used as inputs that influence the intangible assets, the output. Chinese SMEs have been selected for empirical analysis for the years 2014–2018. The empirical results reveal that having a cognitive CEO augmented corporate sustainability, while agency cost and the number of supervisors strongly diminished corporate sustainability. Meanwhile, high earnings per share and high total assets are vehicles for maintaining the sustainable growth of firms. Additionally, it is indicated that firms with a loan burden cannot maintain sustainable corporate growth. Lastly, the execution of 2SLS and GMM instrumental regressions authenticate the veracity of results.
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spelling pubmed-72670562020-06-12 Contemplating the Impact of the Moderators Agency Cost and Number of Supervisors on Corporate Sustainability Under the Aegis of a Cognitive CEO Sarfraz, Muddassar Ozturk, Ilknur Shah, Syed Ghulam Meran Maqbool, Adnan Front Psychol Psychology The social cognitive theory emphasizes the risk-taking behavior of an entrepreneur, which leads him to make the right decisions. In this regard, this study formulates the concept of the cognitive CEO through the DAE statistical technique. Specifically, CEO attributes such as CEO age, CEO compensation, CEO tenure, goodwill, and the number of CEO-attended meetings are used as inputs that influence the intangible assets, the output. Chinese SMEs have been selected for empirical analysis for the years 2014–2018. The empirical results reveal that having a cognitive CEO augmented corporate sustainability, while agency cost and the number of supervisors strongly diminished corporate sustainability. Meanwhile, high earnings per share and high total assets are vehicles for maintaining the sustainable growth of firms. Additionally, it is indicated that firms with a loan burden cannot maintain sustainable corporate growth. Lastly, the execution of 2SLS and GMM instrumental regressions authenticate the veracity of results. Frontiers Media S.A. 2020-05-27 /pmc/articles/PMC7267056/ /pubmed/32536890 http://dx.doi.org/10.3389/fpsyg.2020.00965 Text en Copyright © 2020 Sarfraz, Ozturk, Shah and Maqbool. http://creativecommons.org/licenses/by/4.0/ This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Sarfraz, Muddassar
Ozturk, Ilknur
Shah, Syed Ghulam Meran
Maqbool, Adnan
Contemplating the Impact of the Moderators Agency Cost and Number of Supervisors on Corporate Sustainability Under the Aegis of a Cognitive CEO
title Contemplating the Impact of the Moderators Agency Cost and Number of Supervisors on Corporate Sustainability Under the Aegis of a Cognitive CEO
title_full Contemplating the Impact of the Moderators Agency Cost and Number of Supervisors on Corporate Sustainability Under the Aegis of a Cognitive CEO
title_fullStr Contemplating the Impact of the Moderators Agency Cost and Number of Supervisors on Corporate Sustainability Under the Aegis of a Cognitive CEO
title_full_unstemmed Contemplating the Impact of the Moderators Agency Cost and Number of Supervisors on Corporate Sustainability Under the Aegis of a Cognitive CEO
title_short Contemplating the Impact of the Moderators Agency Cost and Number of Supervisors on Corporate Sustainability Under the Aegis of a Cognitive CEO
title_sort contemplating the impact of the moderators agency cost and number of supervisors on corporate sustainability under the aegis of a cognitive ceo
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7267056/
https://www.ncbi.nlm.nih.gov/pubmed/32536890
http://dx.doi.org/10.3389/fpsyg.2020.00965
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