European Journal of Marketing
This study aims to answer two unique related questions on the overarching relationship between a CEO's personal religious affiliation, the firm's advertising spending decision and its shareholder value. First, does the CEO's religious affiliation, a proxy for risk taking, influence the firm's advertising spending decision? Second, does the advertising spending decision mediate the relationship between the CEO's religious affiliation and the firm's shareholder value?
This study uses data on the religious affiliations of CEOs of publicly listed US firms, 1992-2014, from Marquis Who's Who; advertising spending and shareholder value from Compustat, and panel data-based regression models including CEO characteristics from ExecuComp, and firm-, industry- and time-based controls.
We find higher advertising spending levels for Protestant over Catholic-led firms, and advertising spending mediates the relationship between a CEO's religious affiliation and the firm's shareholder value.
Marketing theory needs to incorporate the missing but fundamental effect of the CEO's religious affiliation-based values on decisions and outcomes.
Boards of Directors may need to align the CEO's and their firm's spending goals.
While previous studies focused on the influence of religious affiliation on consumers' attitudes and behavior, and executives' financial and R&D spending decisions, this study, to the best of the authors' knowledge, is the first to investigate the effect of a CEO's religious affiliation on the firm's advertising spending decision and its shareholder value.
JOURNAL OF BUSINESS VENTURING
Given that organizations need to manage complex situations, multiple organizational climates can coexist and these climates can jointly influence employee behaviors. However, the mechanisms through which the latter relationships operate are poorly understood. We take a multilevel approach to examine the mechanisms that link organizational innovative climate and employee innovative behavior, and the moderating effects of organizational proactive and risk-taking climates on these relationships. Using multisource data from 105 managers and 39 CEOs, we found that innovative climate was positively related to employee innovative behavior indirectly through employee passion for inventing. In addition, the relationship between innovative climate and passion for inventing became stronger as proactive climate increased, and the relationship between passion for inventing and employee innovative behavior became stronger as risk-taking climate increased. Our study contributes to entrepreneurial research by highlighting the interactive effects of multiple organizational climates on employee innovative behavior.