Abstract

This paper investigates how a firm's employment stability affects the level of its cash holdings. We find that firms with high employment stability (as measured by one minus a firm's employment elasticity with respect to its sales) maintain large cash holdings. The positive effect of employment stability on cash holdings is stronger for R&D intensive firms and firms with high firm-specific human capital. These results are consistent with theories predicting that firms hold cash to signal the credibility of their employment policies regarding job security.

Keyword

Cash holdings ;  employment stability ;  implicit contract ;  job security

Abstract

Keyword

Job engagement ;  Proactive personality ;  Prohibitive voice ;  Promotive voice ;  Servant leadership

Abstract

Although the need to belong, or the desire for interpersonal attachments, is a basic human motivation, understanding of how and when it influences workplace ostracism is notably limited. Based on belongingness theory, this study examines the negative relationship between the need to belong and exposure to workplace ostracism by focusing on the mediating role of organizational deviance and the moderating role of in-role performance. Data from 108 supervisor-subordinate dyads in China were collected at three time points. The results reveal that organizational deviance mediates the relationship between the need to belong and workplace ostracism. Additionally, in-role performance alleviates the negative relationship between the need to belong and organizational deviance. The implications for management theory and practice are discussed.

Keyword

in-role performance ;  Need to belong ;  organizational deviance ;  workplace ostracism ;  归属感的需求 ;  组织越轨行为 ;  职场排斥 ;  角色内绩效

Abstract

Is there a correlation between the composition of the board of directors and the quantity and quality of information disclosed to the market, and in particular with respect to the disclosure of privileged, price-sensitive information? Our work examines this question with respect to the Italian Stock Exchange, also considering the role of minority-appointed directors in light of the Italian rules on slate voting that facilitate the election of directors by institutional investors and other minority shareholders. Based on a unique dataset of hand-picked data, we answer the basic research question in the affirmative. Independent directors and minority-appointed directors appear to have a positive impact on the amount and, to some extent, quality of disclosure, in particular if they have specific professional and educational qualifications (‘highly skilled directors’). We also tested if the market reacts to the information that is made public in order to consider the possible objection that outside directors simply require more disclosure of unimportant information. The event studies we conducted, however, indicate abnormal returns in the correspondence on the announcements we considered. The study sheds light on the role of independent and minority-appointed directors suggesting that they foster corporate transparency.

Keyword

Board of directors ;  Corporate governance ;  Disclosure ;  Independent directors ;  Inside information ;  Minority-appointed directors

Abstract

We investigate the value relevance of two different accounting methods, predecessor vs. acquisition, for business combination under common control (BCUCC) in China. Based on the return and price models, we find that net income under the predecessor method is of higher value relevance than that under the acquisition method. Further analysis suggests that the difference appears to be driven by uncertainties in fair value estimation surrounding the BCUCC and that net incomes under predecessor method can better predict future earnings and future operating cash flows than under the acquisition method. Our research provides some initial evidence to support the use of the predecessor method in China, and at the same time, we discuss implications for the IASB standard setting project for the BCUCC.

Keyword

Business combination under common control (BCUCC) ;  the acquisition method ;  the predecessor method ;  value relevance

Abstract

The leadership literature suggests that followers are likely to be autonomously motivated when working for servant leaders, leading them to experience greater psychological empowerment. Guided by self-determination theory, we predicted that this empowerment would then heighten individuals' perceptions of their teams' transactive memory systems. When subordinates perceive that discrimination is occurring in their workgroup, however, we expected that the empowerment-transactive memory systems link would be weakened. This moderated mediation model was tested at multiple timepoints using 211 employees from a variety of industries and job types. The results generally supported our predictions, and the implications for theory and practice are discussed.

Keyword

empowerment ;  perceived discrimination ;  self-determination theory ;  servant leadership ;  transactive memory systems

Abstract

While marketing literature highlights both short- and long-term detrimental effects of marketing myopic management on firm performance, understanding of its antecedents is rather limited. This paper aims to determine if a certain level of transient institutional investor ownership influences a firm's marketing as well as research and development (R&D) investment decisions. Drawing on agency theory, the effects of institutional investor are examined using a two-stage panel logit regression with instrument variables (IV). Empirical results show that a strong presence of short-term institutional investors leads to the practice of marketing myopic management. The transient institutional investors encourage managers to invest less in marketing and R&D as an effort to artificially inflate current-term performance. We propose some policy suggestions that might be used to reduce the practice of myopic management.

Keyword

managerial myopia ;  marketing ;  R&D

Abstract

We study the long-run effects of conflict on social attitudes, with World War II in Central and Eastern Europe as our setting. Much of earlier work has relied on self-reported measures of victimization, which are prone to endogenous misreporting. With our own survey-based measure, we replicate established findings linking victimization to political participation, civic engagement, optimism, and trust. Those findings are reversed, however, when tested instead with an objective measure of victimization based on historical reference material. Thus, we urge caution when interpreting survey-based results from this literature as causal.

Keyword

Conflict ;  social attitudes ;  World War II

Abstract

The purpose of this paper is to examine the effects of authentic leadership on the work–family balance (WFB) of followers by focusing on the mediating roles of leader–member exchange (LMX) and work-to-family enrichment (WFE) and the moderating role of traditionality in China.

Keyword

Authentic leadership ;  Leader-member exchange ;  Work-family issues ;  Work-life balance

Abstract

We present a novel measure of firm-level employment stability, defined as one minus a firm's employment elasticity with respect to its sales. We find that employment stability is positively associated with innovation output, measured by the number of patents and subsequent citations, and the originality and generality of the patents. Our findings suggest that employment stability enhances employees' incentives for innovation by providing tolerance for failure.

Keyword

Employment stability ;  innovation ;  patenting ;  tolerance for failure