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

Frontiers in Psychology

article

Muddassar Sarfraz¹  Ilknur Ozturk²  Syed Ghulam Meran Shah³  Adnan Maqbool⁴ 

[1] School of Management, Guangdong University of Technology;Faculty of Economics and Administrative Sciences, Cag University;Department of Management Sciences, Government College University;Department of Management Sciences, Khwaja Fareed University of Engineering and Information Technology

关键词: entrepreneurship psychology;    cognitive CEO;    agency cost;    supervisors;    corporate sustainability;   

DOI  :  10.3389/fpsyg.2020.00965

学科分类：社会科学、人文和艺术（综合）

来源: Frontiers

【 摘 要 】

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.

【 授权许可】

CC BY