It is not possible for a formal employment contract to detail everything an employee should do and when. Informal relationships, in particular trust, allow managers to arrange a business in a more productive way; high-trust firms are both more profitable and faster growing. For example, if they...

I estimate a structural model of teams, autonomy, and financial performance, using a cross section of British establishments. My findings suggest that team production improves financial performance for the typical establishment but that autonomous teams do no better than closely supervised or...

This empirical investigation primarily aims to measure empowering leadership's impact on innovative work behavior. The study also analyzed the mediating role of psychological empowerment between empowering leadership and innovative work behavior. The structural equation modeling (SEM) technique...

We employ a novel dataset that allows us to study the risk-taking of institutional investors managing collective retirement savings plans on behalf of individuals. Unobservable factors (heterogeneous expectations, risk preferences of institutional investors) explain most of the variation in risk...

Firms involved in the widespread practice of (delegated) innovation scouting face a crucial challenge: How to motivate innovation scouts to engage in extensive search for innovative projects given that search success oftentimes eludes them? Motivated by common scouting practice, we build a...

We ask why we observe multiple layers of decision-making in fund management with investors, sponsors, fund managers, and consultants, even if additional decision-makers are costly and do not contribute to superior performance. In our model, an investor hires a wealth manager (“sponsor”), who...

We study the choice of a principal to either delegate a decision to a group of careerist experts, or to consult them individually and keep the decision-making power. Our model predicts a trade-off between information acquisition and information aggregation. On the one hand, the expected benefit...

Purpose - This study aims to examine the relationship between telecommuting and cyberloafing among Ghanaian workers. In addition, the study investigated the moderating role of emotional exhaustion on telecommuting and cyberloafing. Design/methodology/approach - The study collected quantitative...

Companies typically control various aspects of their workers' behaviors. In this paper, we investigate whether the hierarchical distance of the superior who imposes such control measures matters for the workers' ensuing reaction. In particular, we test, in a laboratory experiment, whether...

Using both quantitative data from national surveys and qualitative data from our own field research, this paper provides evidence on changes in participatory employment practices in Japan during the economic slowdown in the 1990s. Overall, consistent with the complementarity of such practices...

We revisit the value implications of female representation on boards by exploiting the board diversity campaign announcement by Norges Bank Investment Management (NBIM)—the world’s largest sovereign wealth fund. In February 2021, NBIM required its portfolio firms to have at least 30% female...

In this study, we provide insights on how servant leadership may promote employee performance. We investigate whether the associations between increases in servant leadership and employees' task and adaptive performance are mediated by changes in the two antipodes of employee well-being: work...

This paper investigates the relationship between cross ownership, sales delegation and loan commitment. We find that under sales delegation, a higher degree of cross ownership decreases the optimal bank loan interest rate, which is beneficial to the firm profits. However, cross ownership reduces...

We construct a dynamic model of two-sided sorting in labor markets with multi-dimensional agent and firm heterogeneity. We apply it to study optimal party structure and the decision of how (de)centralized candidate recruitment should be. Parties are non-unitary actors and compete at the local...

In the wake of the corporate debacles that have occurred in the last decade, there has been an increasing legislative and judicial focus on the reform of corporate governance standards. Such reforms, including the Sarbanes-Oxley Act, sing the praises of independent directors in effectuating...

This study aimed to examine the moderating role of institutional theory in the association between participative leadership style and various outcomes, such as employee loyalty and job performance in organizations. A cross-sectional research design was employed, where data were gathered from 347...

Women’s leadership development in entrepreneurial business is critical to improving women’s participation in management and businesses in Bangladesh. Research shows that only seven percent of all business establishments in Bangladesh are women-owned and women-headed. This limited ownership...

Research question: What factors of empowerment are required from the project manager's perspective? Methods: Interviews with 17 project managers at a multi-national technology organisation were conducted, as well as a survey to explore their current empowerment status. Both existing factors in...

We study an infinitely-repeated game of team production, where agents must supply costly effort under moral hazard. The principal also has the option to delegate an additional production-relevant decision to a team member. We provide conditions under which delegation changes the scope of peer...

How does imperfect contractibility of preferences influence the governance of a contractual relationship? We analyze a two-party decision-making problem where the optimal decision is unknown at the time of contracting. In consequence, instead of contracting on the decision directly, the parties...

We study SPACs in a continuous-time delegated investment model. Our model is built upon three unique features of SPACs: the sponsor and the investor are only partially aligned, a SPAC has a short time horizon, and the investor has the final control over investment approval. Due to the...

A firm delegates search for a worker to a recruiter. Productivity is uncertain prior to hire with recruiter beliefs characterized by an expectation and variance. Delegation occurs using a refund contract which is common in the industry. We analyze how delegation in this setting shapes search...

We derive Bertrand and Cournot equilibria in a differentiated duopoly in which each firm hires a manager to undertake research and development (R&D) and production decisions. We show that manager overconfidence and over-investment occur in each market competition. Furthermore, the Cournot game...