This thesis is concerned with the work of business leaders. The interest lies in the holders of positions as Chairpersons, Boardmembers and Managing Directors. This study, however, goes beyond the position holder to consider the actions of actors, as they operate within networks with concurrent multiple business activities. The purpose is to generate knowledge and understanding of the activities and relations of multibusiness leaders involved in managing small and medium-sized companies. Major schools of thought on the manager's job are described. The review relates the scientific debate about different schools and emphasises the need for more inductive research. The call for processual and contextual analysis leads to an epistemological position grounded in understanding through interpretation. The method used in this study adopts such an approach, and thus aims to discover qualities of the studied phenomenon based on social constructivism. Empirical reality is approached by means of intensive studies of a few cases. Case descriptions of the work of multibusiness leaders in the National, Regional, Intermediary, Independent, and Developing Networks are undertaken, where the inter­action processes of the different actors are described according to the working life his­tory of the actor, and to the networking and work activities carried out. The analysis is based upon four themes (the actor's 'task legitimacy', 'economic legi­timacy', 'idea development' and 'network'). The first two themes have been given the generic term 'legitimacy concept', not only to reflect the interactive and changeable aspects of work, but also to illustrate how work in itself is intimately interwoven in an institutional context. The creation of 'task legitimacy' and 'economic legitimacy' of the leaders is analysed. The analysis of the actors' idea development results in a description of differing visions in the individual networks. This description takes up visions covering long-term industrial leadership, regional co-operative leadership, restructuring leadership, flexible market-adaptive leadership and network-based leadership. In a survey of the existing literature, the role of a leader is seen as one of many managerial roles, a view that is based upon the work of Mintzberg (1973). This study contrasts with the above picture, by discussing a reciprocal dependency between the leader's leadership role and his/her other roles. This reciprocity and concurrency is dealt with by introducing the concept of identity as a theoretical aid, thus reflecting in a more appropriate way the complex and interactive actor. The social identity concept (Tajfel, 1982) is used, in order to answer more profoundly the research questions. As leaders are reciprocally dependent on a network for their own existence, we must both look inward in order to be able to understand at a deeper level the actors' motives, and look outward to be able to look at identity creation in a wider industry context. What I have termed näringslivsledaridentitet (the Identity of Multibusiness Leaders), is a substantial part of this study's findings. The concept is used in order to be able to describe how the actors' inner and outer motives merge in identity creating processes. The actors' different patterns of interaction are absorbed into a composite whole. / digitalisering@umu

This thesis consists of three chapters on financial structure, managerial compensation, and product markets. The unifying theme of these chapters is to examine how the financial decisions of firms are affected by market imperfections. Chapter 1 places emphasis on the impact of internal imperfections arising from asymmetric beliefs (or behavioral biases) and agency conflicts by examining how these internal imperfections affect managerial compensation and corporate financial structure. On the other hand, Chapters 2 and 3 incorporate external market imperfections especially arising from imperfect product market competition. More specifically, these two chapters develop market equilibrium frameworks to examine how the matching market for CEOs and firms interacts with the product market to affect the distributions of CEO compensation and firm size. In Chapter 1, we develop a dynamic model to examine the effects of asymmetric beliefs of a firm's manager and blockholders regarding the profitability of the firm's projects, and differing attitudes towards their risk, on its capital structure. The firm's capital structure reflects the tradeoff between the positive incentive effects of managerial optimism that increases the manager's output and blockholders' private benefits against the negative effects of risk-sharing costs. We provide several testable implications for the effects of the degree of managerial optimism as well as permanent and transitory components of the firm's risk on different components of capital structure. In our calibration of the model, performed separately for different industries, we show that while optimism and risk have qualitatively similar effects on capital structure in different industries, their quantitative effects are significantly different. The interactive effects of asymmetric beliefs and agency conflicts could potentially explain a significant portion of the substantial inter-industry variation in capital structure. Chapter 2 studies how the distributions of CEO talent and compensation vary across industries, and how product market characteristics affect these distributions. We develop a market equilibrium model that incorporates the competitive assignment of CEOs to firms in a framework in which firms engage in imperfect product market---specifically, monopolistic---competition. Using the distributions of CEO pay and firm value in each of twelve Fama-French industries, we calibrate the parameters of our structural model, and indirectly infer the unobserved distributions of CEO talent and firm quality that together determine firm output. We then conduct several counterfactual experiments using the calibrated models corresponding to each of the industries. We find that the distribution of CEO talent does, indeed, vary dramatically across industries. More importantly, contrary to the conclusions of earlier studies that abstract away from the effects of the product market (Tervio, 2008 and Gabaix and Landier, 2008), the impact of CEO talent on firm value appears to be quite significant. Our estimates of the effect of CEO talent on firm value for the industries in our sample are two orders of magnitude higher than those obtained by the aforementioned studies. Further, our estimates suggest that the compensation of CEOs is quantitatively in line with their contributions to firms. Broadly, our study shows that it is important to incorporate the product market environment in which firms operate when assessing the contributions of CEOs to firms. Chapter 3 builds a market equilibrium framework in which the CEO-firm matching process is affected by the product market. We show that under reasonable assumptions there is a unique equilibrium in which only managers with ability above a unique cutoff level are matched to firms. This very simple screening process endogenizes the distribution of active managers who match with firms. Our calibration of the model using a parametric approach, which is in contrast with the empirical analysis performed in Chapter 2, strongly supports the principle arguments on the importance of CEO talent and appropriate CEO talent levels (on average) in Chapter 2. In addition, due to the law of demand and supply, which is a key feature of the extended model, we obtain somewhat different influence of some of product market characteristics on CEO pay. Furthermore, our parametric approach allows us to draw some implications for the effects of CEO talent distribution on the market equilibrium.

Master Thesis in Business Administration, School of Business Administration, Linaeus University, Finance 4FE03E, Spring 2011 Authors: Benni Hansson, Axel Sandquist Tutor: Christopher von Koch Examiner: Sven-Olof Collin Title: Compensation as a means of monitoring or recruiting – a study on ownership structure in Swedish listed companies. Keywords: CEO compensation, compensation structure, ownership structure, ownership types, ownership concentration, agency theory, resource dependence theory, managerial theory Background: There has been extensive research on CEO compensation, however not a lot on Swedish listed firms. Many studies have an agency theoretical perception on CEO compensation. In accordance with this, compensation is used as a means to solve monitoring and incentives problems. Purpose: The aim of this study is to examine the role of CEO compensation, by studying ownership structure. Method: To examine the role of CEO compensation we use a multi-theory approach, based on agency theory, resource dependence theory and managerial theory. The companies examined are Swedish listed firms the in years 2005 to 2009. The data has been gathered from annual reports, Fristedt and Sundqvist’s books “Ägarna och makten i Sveriges börsföretag”, and the Datastream database. The data has been statistically analyzed to reach our conclusions. Conclusions: We find a correlation between ownership structure and compensation and the use of options. Families use the lowest level of compensation and have the lowest use of options.  Institutional investors offer the highest level compensation while foreign investors have the highest propensity to use options. We do not find a relationship between industrial investors and level of compensation. We argue that both compensation and options first and foremost is a result of the level and quality of the monitoring. The compensation policy is used as a means to solve monitoring problems. We also argue that the CEO gains power with absent owners, and can thereby influence the salary.

How can a multi project organisation use Wiki to support improvement of knowledge management and project evaluation to become a learning organisation? The main purpose of this thesis is to give management and employees a better understanding of how Wiki supports knowledge management and project evaluation. The second purpose is to illustrate possible difficulties and pit falls that comes with the implementation of Wiki based learning. The theoretical framework initiates by explaining multi project organizations, then describes Argyris and Schöns theories about organizational learning and learning organizations. The second half of the theory chapter brings up theories about important areas for a learning organization. We have used a qualitative approach to gather profound data for the study. The empirical framework presents the fallout of the interviews we had with the studied company. Our study demonstrates how Wikis can be a great support to improve knowledge management and project evaluation. A Wiki functions as a knowledge repository that integrates divisions in an organization and facilitates to take part of, document and share knowledge. The study also demonstrates that problems can occur when implementing a Wiki. This is shown by managerial resistance due to the attitude towards knowledge management and an uncertainty about quality control of a Wiki’s content. To answer this resistance the employees can suggest a demonstration where they during a period of time use Wiki to describe when it could have benefited them in the daily activities. To be follow up with a trialperiod if the outcome is successful.

The first essay examines how board structure affects manager dismissal decisions in mutual funds. We first find some evidence suggesting that the likelihood of managerial replacement is higher when fund boards are more independent and receive lower levels of compensation. Manager turnover is more likely when funds underperform the objective average. We then investigate the manager turnover decision conditional on the funds experiencing a merger. We find that funds with more independent boards are more likely to employ target managers with a track record of superior performance. Overall, these results suggest that more independent boards make manager retention/replacement decisions in the interests of their shareholders. The second essay studies the relationship between managerial ownership and mutual fund performance. We first document that almost half of the mutual fund managers own shares in their funds, though the absolute amount of investment is modest. Fund future performance is positively related to the level of manager ownership. Manager ownership is higher in equity funds than bond funds, in funds with better past performance, smaller sizes, and where managers have been in charge for a longer time period. When we decompose manager ownership into predicted and residual parts, we find that both components are significant in explaining fund future performance. Our findings suggest that managerial ownership has desirable incentive attributes for mutual fund investors. The third essay investigates how managerial ownership affects the investment behavior of portfolio managers. We first examine the disposition effect exhibited by different fund managers, and find that those with positive ownership show significantly less disposition effect. Specifically, they sell losers faster and hold on to winner stocks for a longer period. Disposition effect is less pronounced in bigger funds, funds with smaller boards, and funds with higher percentage of board independence. We then test the relation between managerial ownership and the tournament behavior, investigating how the degree of managers manipulation of fund volatilities in the latter part of a year is related to their personal stakes in the funds. However, we do not find evidence suggesting the existence of such a relationship.

Despite the availability, capability, and inclination of older workers to remain in the workforce, research indicates that older workers are generally perceived and evaluated less favorably than younger workers (cf., Kite, Stockdale, Whitley, &Johnson, 2005). However, little is known about what factors lead older workers to be perceived less favorably. Up until this point, research investigating attitudes towards older workers has been limited to traditional work contexts. However, telework is an increasingly popular alternative work context and may be more appropriate for older workers. Another possible factor relating to evaluations of older workers is knowledge about age-related changes in ability. For example, the task demands of a job may be particularly high in fluid ability or crystallized ability. The work context and task demands of a job may be two potential sources of influence regarding perceptions of older workers. In the current set of studies, I examined the impact of applicant age, work context (telework and office work), and task demands (fluid ability and crystallized ability) on participants ratings of younger and older job applicants. In Study 1, a total of 16 job descriptions were selected based on their suitability and dependency on: office work/crystallized ability, office work/fluid ability, telework/crystallized ability, telework/fluid ability. Hiring managers recognized the jobs that were suited to telework or office work, but did not distinguish when either fluid or crystallized ability was of primary importance to a particular job. In Study 2, participants rated either younger or older applicants for 4 jobs selected from Study 1. The results of Study 2 were compelling. Older applicants were rated as more qualified when the job was dependent on crystallized ability, as well as when the job took place in a telework context. However, there were no significant differences between older and younger applicants when the job was dependent on fluid ability, or when the job took place in an office work context. The current research is critical to understanding the influence of task demands and the work context on differences between evaluations of older and younger workers.

We extend the model of Delfgaauw and Dur (2010) to analyze the occupation choice with the presence of the public service motivation. When the workers are purely altruistic, the lower is the acceptance rate of job application to the public sector, the higher is the possibility to have applicants with better managerial ability. In addition, when the friction cost of restarting job searching is higher, the applicants with less managerial ability tend to apply the private sector jobs from the beginning. On the other hand, when the workers are impurely altruistic, the applicants with less managerial ability will not self-select into the public sector. Finally, the highest social welfare level may not be reached if the acceptance rate in the public sector is not one hundred percent.

The role of top managers in shaping the performance of the firms that employ them represents a central issue to strategic management research. Indeed, a substantial amount of research has examined potential linkages between the characteristics of top managers and firm performance. However the empirical results of research in this area have been ambiguous. This study attempts to theoretically and empirically extend research on the influence of top managers on firm performance by examining the relationship between managerial prestige and firm performance in the post-IPO context. Although upper echelons researchers have attempted to link top managers with firm performance in the past recent reviews of the upper echelons research note that little attention has been paid to top management characteristics other than those of top management team (TMT) heterogeneity, TMT size and TMT tenure. Additionally, recent reviews also suggest the need to consider potential intervening mechanisms between TMT characteristics and firm performance. This study addresses these two limitations of prior upper echelons research by examining the direct and indirect influences of managerial prestige on post-IPO firm performance.In this study I develop a model which incorporates the resource based view and resource dependence theory with insights from upper echelons research and research on the IPO context. Results for the model developed in this study suggest the following. First, executive undergraduate prestige is positively related to post-IPO firm growth. The other aspects of managerial prestige examined in this study were not found to influence post-IPO firm performance. Second, the influence of the key external resource holders identified in this study, namely prestigious alliance partners and institutional investors with stable equity portfolios, were found to enhance firm survival rates, but were negatively associated with firm growth. Third, executive undergraduate prestige was found to garner the support of prestigious alliance partners. The remaining aspects of managerial prestige were not found to influence the support of prestigious alliance partners or dedicated institutional investors. Finally, no support was found for prestigious alliance partners and dedicated institutional investors as mediators of the relationship between managerial prestige and post-IPO firm performance.

While the lack of publicly available literatures examining the applications of managerial accounting information in service organizations, this study uses the international tourist hotel as an example to determine the relationship between managerial accounting information, the organization, strategies and business performance. Multi-national comparison is another important issue of this paper. As background the paper cited a popular text by Horngren and Sundem (1999), which delineated three types of managerial accounting information: scorekeeping, attention directing, and problem solving. The purposes of the study present as follows: 1.Have an outlook of managerial accounting information exercising in international tourist hotels in the Netherlands and Taiwan. 2.To analyze the effects of organization characteristics and strategies on managerial accounting information and business performance. 3.Through multi-national case comparison, both countries could see the differences of managerial accounting information exercising between each other and the reasons behind. Both countries can use them as a reference for future operating improvement. This study interviewed four international tourist hotels in the Netherlands and Taiwan. To minimize the interference from international chain hotels on decision makings, the target of case research hotels were all focused on independent operated, belonged to the range of 4 to 5 stars. The results of these case studies suggest: 1.Due to the differences of multi-national environment and accounting regulations, the international tourist hotels in the Netherlands and Taiwan exercise different degrees of managerial accounting information. 2.The result partly proved that international tourist hotels need sufficient managerial accounting information to cooperate with Cost Leadership Strategy. 3.The hotels emphasizing corperate governance attach more importance to managerial accounting information. Besides, the accounting sections within these companies are usually more professional operated. 4.The hotels in the Netherlands which follow Differentiation Strategy need abundant accounting information to support decision makings; while those hotels in Taiwan usually rely on the rich experiences of top managers to make decisions. There is no significant relationship between managerial accounting information and Differentiation Strategy in Taiwanese hotels. 5.In the Netherlands, relevant relationship was observed between managerial accounting information and business performance; whereas there is no direct conclusion for Taiwanese hotels.

Globalization is in highly competitive era, talents are company's most important assets, the especially fine one hits the managerial cadre of the steps and is managed with one of the key factors of growing up continuously continuously forever by the company even more, this research object restricts the trade (industry ) , restricts the department , the steps executive is research objects that direct against Chinese enterprise of areas of both sides of the Straits (Jiangsu and Taiwan ), collect and research and analyse samples. With the research of the management function, hope to find out the management function which the steps executive should possess in the company objectively, offer enterprises to recruit and select the just , reference foundation of fostering and forming talents, it set up select Human Resource Department , not educating, with, leave managerial talent the systems at, probe into the result tentatively , expect that can propose a nucleus administrator's function way for enterprise's firm name in most key key management functions needed. So study the steps executive's management function in enterprises , operate for improving enterprises with the theoretical foundation of having the essence of national competitiveness and discussion value. This research questionnaire investigation analysis result is found, in Taiwan in the steps administrator studies in the management function index , and ' mood control ability ' superior to continent managerial cadre of the steps among the district in innovate with learning ability , surmount ability oneself.