This paper investigates the effect of enacted ethical and instrumental values on corporate governance effectiveness. It further considers whether and how compliance with formal corporate governance codes influences the effect of these organizational values on governance effectiveness. Empirical evidence based on a sample of firms listed in the Athens Stock Exchange shows that strong ethical values are the key element for effective corporate governance, while instrumental values play a significant role only in the presence of compliance. Compliance, although not sufficient (...) by itself, serves as a complementary mechanism strengthening the effects of ethical values and creating the conditions by which instrumental values can act in favor of corporate governance. The results highlight that governance benefits can emanate from maintaining high ethical standards as well as from synergies between compliance and a focus on organizational values. Overall, our findings provide important implications for managers regarding how to utilize behavioral along with structural governance mechanisms to enhance corporate governance. The findings add to the behavioral perspective of corporate governance bringing aspects of the social fabric into the corporate governance puzzle. (shrink)

Despite continuing interest in the impact of employees’ emotional intelligence in explaining for their engagement and emotional exhaustion, there are still large gaps in our understanding of the role played by contextual EI-related factors, such as an EI-related organizational culture and supervisors’ emotionally intelligent behavior. This two-study research approaches EI from a macro-level perspective, attempting to address three objectives: to develop and define a theoretical concept of EI-supportive organizational culture, to develop and validate measures of organizations’ EI-related values and practices, (...) and to investigate their top-down effect on employee engagement and exhaustion, via supervisor EI-related behavior. In the first study, we conceptualize and develop measures of perceived EI-related organizational values and human resource management practices, as separate yet related dimensions of organizations’ EI-related culture, and test their validity. In the second study, we build on the job demands-resources theory and Ability-Motivation-Opportunity framework to develop and test a model of the process links between perceived EI-related values and HRM practices and employee engagement and exhaustion, using a large sample of employees across industries in the USA workforce. In line with our hypotheses, the findings suggest that EI-supportive HRM practices have a top-down effect on employee engagement and exhaustion via supervisor EIB, whereas low regard for emotions values has a top-down effect on employee exhaustion via supervisor emotional misbehavior. Results are discussed in the context of the JD-R theory, AMO framework, and the EI literature. (shrink)