CEO Characteristics That Influence A Firm’s Investing Strategy

[We’re pleased to welcome author Bruce C. Rudy of The University of Texas at San Antonio. He recently published an article in Business & Society entitled “The Chief Political Officer: CEO Characteristics and Firm Investment in Corporate Political Activity,” co-authored by Andrew F. Johnson. From Rudy:]

In setting outB&S_72ppiRGB_powerpoint.jpg to study what drives organizations to engage in corporate political activity (CPA), my coauthor (Andrew F. Johnson, Ph.D.) and I were struck by how little was known about the role that the firm’s leader played in this regard.  This was especially surprising considering that we have a well-researched theory on the influence of the firm’s leader on its strategic choices (i.e., Upper Echelons Theory).  When we combined the concepts underpinning CPA and Upper Echelons Theories, a number of novel ideas emerged and we knew we had the opportunity to make important contributions to both theories.  The data we collected supported many of these ideas.  We are thrilled that Business & Society has provided us the opportunity to share our research with you.

The full abstract to their article is below:

Research on corporate political activity has considered a number of antecedents to a firm’s engagement in politics. The majority of this research has focused on either industry or firm-level motivations that lead to corporate political activity, leaving the role of the firm’s leader noticeably absent in such scholarship. This article combines ideas from Upper Echelons Theory with research in corporate political activity to bridge this important gap. More specifically, this research utilizes CEO demographic characteristics to determine (a) whether a firm will invest in political activity and (b) how these characteristics influence the particular approach to political activity the firm undertakes. Considering 27 years of data from large U.S. firms, we find that a CEO’s age, tenure, functional, and educational backgrounds influence whether and how the firm invests in political activity.

Don’t miss new research–sign up for email alerts through the journal’s homepage.

This entry was posted in Business, Management, Personality, Strategy, Teams by Cynthia Nalevanko, Editor, SAGE Publishing. Bookmark the permalink.

About Cynthia Nalevanko, Editor, SAGE Publishing

Founded in 1965, SAGE is the world’s leading independent academic and professional publisher. Known for our commitment to quality and innovation, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students across a broad range of subject areas. With over 1500 employees globally from principal offices in Los Angeles, London, New Delhi, Singapore, Washington DC, and Melburne, our publishing program includes more than 1000 journals and over 900 books, reference works and databases a year in business, humanities, social sciences, science, technology and medicine. Believing passionately that engaged scholarship lies at the heart of any healthy society and that education is intrinsically valuable, SAGE aims to be the world’s leading independent academic and professional publisher. This means playing a creative role in society by disseminating teaching and research on a global scale, the cornerstones of which are good, long-term relationships, a focus on our markets, and an ability to combine quality and innovation. Leading authors, editors and societies should feel that SAGE is their natural home: we believe in meeting the range of their needs, and in publishing the best of their work. We are a growing company, and our financial success comes from thinking creatively about our markets and actively responding to the needs of our customers.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s