||TMT Long-term Compensation, TMT Risk Propensity, and Firm Performance: Moderating Effects of Environmental Dynamism and Munificence
||Institute of International Management (IIMBA--Master)(on the job class)
TMT long-term compensation
TMT risk propensity
This research employs the upper-echelons perspective to examine the associations between TMT long-term compensation, TMT risk propensity, and firm performance. The moderating effects of environmental dynamism and munificence on the relationship between TMT risk propensity and firm performance are explored as well. Research results based on a large sample collected from top management team (TMT) members in Taiwan show that TMT long-term compensation indeed produces positive effects on firm performance, both directly and indirectly, through the mediation of TMT risk propensity. Moreover, environmental dynamism reveals a negative moderating effect. The study contributes to the upper-echelons perspective by an integrated consideration of TMT compensation, TMT psychological property and their implications for firm financial performance within the broad contexts of business environments.
TABLE OF CONTENTS IV
LIST OF TABLES VIII
LIST OF FIGURES IX
CHAPTER ONE INTRODUCTION 1
1.1 Research Background and Motivation. 1
1.2 Research Purposes and Contributions. 3
1.3 Research Processes. 5
CHAPTER TWO LITERATURE REVIEW 7
2.1 Perspective of Upper Echelons. 7
2.2 Perspective of Risk Taking Behavior. 10
2.3 Perspective of TMT Decision Making Process with Risk Involved. 11
2.4 Definition of Relevant Research Constructs. 13
2.4.1 TMT Long-Term Compensation. 13
2.4.2 Firm Performance. 14
2.4.3 TMT Risk Propensity. 15
2.4.4 Environmental Dynamism. 15
2.4.5 Environmental Munificence. 16
2.5 Relationships between Research Constructs. 16
2.5.1 TMT Long-Term Compensation and TMT Risk Propensity. 17
2.5.2 TMT Risk Propensity and Firm Performance. 17
2.5.3 Mediation of TMT Risk Propensity to TMT Long-term Compensation and Firm Performance. 18
2.5.4 Moderation of Environment Dynamism on TMT Risk Propensity and Firm Performance. 19
2.5.5 Moderation of Environment Munificence on TMT Risk Propensity and Firm Performance. 20
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 22
3.1 Research Framework. 22
3.2 Sample and Data Collection. 23
3.3 Hypothesis to be Tested. 24
3.4 Constructs Measurements. 25
3.4.1 TMT Long-Term Compensation. 25
3.4.2 TMT Risk Propensity. 26
3.4.3 Firm Performance. 26
3.4.4 Environmental Conditions. 27
3.4.5 Control Variables. 27
3.5 Data Analysis. 28
3.5.1 Descriptive Statistic Analysis. 28
3.5.2 Confirmatory Factor Analysis. 28
3.5.3 Reliability Test. 29
3.5.4 Pearson Correlation Coefficient. 29
3.5.5 Hierarchical Multiple Regression. 30
CHAPTER FOUR RESEARCH RESULTS 31
4.1 Descriptive Statistic Analysis. 31
4.2 Confirmatory Factor Analysis. 35
4.2.1 Individual Constructs Model. 35
4.2.2 Full Measurement Model. 39
4.3 Reliability Test. 42
4.4 Mean, Standard Deviation, and Pearson Correlation. 43
4.5 Hierarchical Multiple Regression. 45
4.5.1 Mediator Effect. 45
4.5.2 Moderator Effect. 46
4.5.3 Control Variables. 49
CHAPTER FIVE CONCLUSION AND SUGGESTIONS 50
5.1 Discussion and Conclusion. 50
5.1.1 Theoretical Implications. 50
5.1.2 Managerial Implications. 53
5.2 Limitation and Suggestion. 53
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