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

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          Abstract

          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.

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          Most cited references61

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          On the use of instrumental variables in accounting research

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            Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility

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              Agency Costs and Ownership Structure

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                Author and article information

                Contributors
                Journal
                Front Psychol
                Front Psychol
                Front. Psychol.
                Frontiers in Psychology
                Frontiers Media S.A.
                1664-1078
                27 May 2020
                2020
                : 11
                : 965
                Affiliations
                [1] 1School of Management, Guangdong University of Technology , Guangzhou, China
                [2] 2Faculty of Economics and Administrative Sciences, Cag University , Mersin, Turkey
                [3] 3Department of Management Sciences, Government College University , Lahore, Pakistan
                [4] 4Department of Management Sciences, Khwaja Fareed University of Engineering and Information Technology , Rahim Yar Khan, Pakistan
                Author notes

                Edited by: Tahir Farid, Zhejiang University, China

                Reviewed by: Fatma Nur Tugal, Adana Science and Technology University, Turkey; Kausar Fiaz Khawaja, International Islamic University, Islamabad, Pakistan; Imran Ali, King Abdulaziz University, Saudi Arabia

                *Correspondence: Syed Ghulam Meran Shah, ghulam_meeran2001@ 123456yahoo.co.in

                This article was submitted to Organizational Psychology, a section of the journal Frontiers in Psychology

                Article
                10.3389/fpsyg.2020.00965
                7267056
                32536890
                e58065ba-2604-4e6f-850d-851fb205dfeb
                Copyright © 2020 Sarfraz, Ozturk, Shah and Maqbool.

                This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

                History
                : 13 February 2020
                : 19 April 2020
                Page count
                Figures: 0, Tables: 6, Equations: 4, References: 64, Pages: 9, Words: 0
                Categories
                Psychology
                Original Research

                Clinical Psychology & Psychiatry
                entrepreneurship psychology,cognitive ceo,agency cost,supervisors,corporate sustainability

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