The role of board independence on R&D investment’ choice decided by committed managers: The cognitive management of executives’ discretion
This study deals with appreciating the role of both governance system and executives cognitive and attitudinal aspects in the innovation decision-making. After discussing the theoretical relationship between board independence and CEOs attitude and behavior, we are advancing an empirical model testi...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Growing Science
2015-11-01
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| Series: | Accounting |
| Subjects: | |
| Online Access: | http://www.growingscience.com/ac/Vol2/ac_2015_13.pdf |
| _version_ | 1819200142644871168 |
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| author | Fadhila Hamza Anis Jarboui |
| author_facet | Fadhila Hamza Anis Jarboui |
| author_sort | Fadhila Hamza |
| collection | DOAJ |
| description | This study deals with appreciating the role of both governance system and executives cognitive and attitudinal aspects in the innovation decision-making. After discussing the theoretical relationship between board independence and CEOs attitude and behavior, we are advancing an empirical model testing the correlation between the managers’ attitude and behavior towards innovation and his psychological commitment level. The CEOs commitment bias and attitude constituent were measured using questionnaire. The data analysis was performed using the Bayesian network method on 220 Tunisian executives. Empirical results confirm the theoretical prediction and shows that processing with persuasive mechanism does not have an effective role on the alignment of the manager’s attitude and behavior in key tasks such innovation decision. CEOs authentic behavior was more related to an important manager involvement in this behavior rather than to persuasive effort committed by outside directors to make him contract this action. CEOs attitude and behavior towards innovation are shown related to commitment link “manager-task” and suggests that the board of directors plays no role in the CEOs discretion management. We argue that persuasive approach is not a sufficient path in behavior and interests alignment; yet, it should be applied with the commitment approach for understanding manager decision-making. |
| first_indexed | 2024-12-23T03:27:32Z |
| format | Article |
| id | doaj.art-114d7e64efbe4803800ef281426db7c7 |
| institution | Directory Open Access Journal |
| issn | 2369-7393 2369-7407 |
| language | English |
| last_indexed | 2024-12-23T03:27:32Z |
| publishDate | 2015-11-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Accounting |
| spelling | doaj.art-114d7e64efbe4803800ef281426db7c72022-12-21T18:01:48ZengGrowing ScienceAccounting2369-73932369-74072015-11-0121113010.5267/j.ac.2015.12.007The role of board independence on R&D investment’ choice decided by committed managers: The cognitive management of executives’ discretionFadhila HamzaAnis JarbouiThis study deals with appreciating the role of both governance system and executives cognitive and attitudinal aspects in the innovation decision-making. After discussing the theoretical relationship between board independence and CEOs attitude and behavior, we are advancing an empirical model testing the correlation between the managers’ attitude and behavior towards innovation and his psychological commitment level. The CEOs commitment bias and attitude constituent were measured using questionnaire. The data analysis was performed using the Bayesian network method on 220 Tunisian executives. Empirical results confirm the theoretical prediction and shows that processing with persuasive mechanism does not have an effective role on the alignment of the manager’s attitude and behavior in key tasks such innovation decision. CEOs authentic behavior was more related to an important manager involvement in this behavior rather than to persuasive effort committed by outside directors to make him contract this action. CEOs attitude and behavior towards innovation are shown related to commitment link “manager-task” and suggests that the board of directors plays no role in the CEOs discretion management. We argue that persuasive approach is not a sufficient path in behavior and interests alignment; yet, it should be applied with the commitment approach for understanding manager decision-making.http://www.growingscience.com/ac/Vol2/ac_2015_13.pdfCommitment BiasBoard IndependenceInnovation DecisionManagerial DiscretionBayesian Network Methods |
| spellingShingle | Fadhila Hamza Anis Jarboui The role of board independence on R&D investment’ choice decided by committed managers: The cognitive management of executives’ discretion Accounting Commitment Bias Board Independence Innovation Decision Managerial Discretion Bayesian Network Methods |
| title | The role of board independence on R&D investment’ choice decided by committed managers: The cognitive management of executives’ discretion |
| title_full | The role of board independence on R&D investment’ choice decided by committed managers: The cognitive management of executives’ discretion |
| title_fullStr | The role of board independence on R&D investment’ choice decided by committed managers: The cognitive management of executives’ discretion |
| title_full_unstemmed | The role of board independence on R&D investment’ choice decided by committed managers: The cognitive management of executives’ discretion |
| title_short | The role of board independence on R&D investment’ choice decided by committed managers: The cognitive management of executives’ discretion |
| title_sort | role of board independence on r d investment choice decided by committed managers the cognitive management of executives discretion |
| topic | Commitment Bias Board Independence Innovation Decision Managerial Discretion Bayesian Network Methods |
| url | http://www.growingscience.com/ac/Vol2/ac_2015_13.pdf |
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