Leadership & Organizational Behavior

In this chapter, Kenneth Ayotte and Patrick Bolton model the role that mandatory standardization plays in reducing the costs of financial contracting and improving liquidity. In particular, they identify opportunities for financial contractors to appropriate value from unknowing third parties and show that rules that standardize contracts can serve as a commitment device against such demand-dampening pitfalls facing these other parties. Mandatory standardization thereby can improve the liquidity of secondary markets from loan contracts.

This paper shows that Chief Executive Officers (CEOs) meaningfully affect firm performance. Using variation in CEO exposure resulting from the numer of days a CEO is hospitalized, we provide estimates of the effect of CEOs on firm policies, holding firm and CEO matches constant. We have four main findings. First, CEOs have an economically and statistically significant effect on profitability, revenue, and investment outcomes. Firms whose CEOs are hospitalized underperform when their chief executives are sick but otherwise exhibit similar performance relative to other firms.

Three experiments explored whether hierarchical role and body posture have independent or interactive effects on the main outcomes associated with power: action in behavior and abstraction in thought. Although past research has found that being in a powerful role and adopting an expansive body posture can each enhance a sense of power, two experiments showed that when individuals were placed in high- or low-power roles while adopting an expansive or constricted posture, only posture affected the implicit activation of power, the taking of action, and abstraction.

Research on the relationship between teachers' characteristics and teacher effectiveness has been underway for over a century, yet little progress has been made in linking teacher quality with factors observable at the time of hire. However, most research has examined a relatively small set of characteristics that are collected by school administrators in order to satisfy legal requirements and set salaries.

This paper describes the motives that gave rise to the creation of the Federal Reserve System, summarizes the history of Fed monetary policy from its origins in 1914 through the Treasury-Fed Accord of 1951, and reviews several of the principal controversies that surround that history. The persistence of conceptual errors in Fed monetary policy — particularly adherence to the "real bills doctrine" — is a central puzzle in monetary history, particularly in light of the enormous costs of Fed failures during the Great Depression.

This paper reviews the pattern of bank failures during the financial crisis and asks whether there was a link with corporate governance. It revisits the theory of bank governance and suggests a multiconstituency approach that emphasizes the role of weak creditors. The empirical evidence suggests that, on average, banks with stronger risk officers, less independent boards, and executives with less variable remuneration incurred fewer losses. There is no evidence that institutional shareholders opposed aggressive risk-taking.

This article examines the population dynamics and viability of network weavers, which are organizations that provide network relations for others. An analysis of the population dynamics of the intergovernmental organizations (IGOs) that are the basis of the interstate networks that influenced global economic relations, peace, and democracy in the 1815–2000 period show that IGO founding and failure depends on the ease and value of specific interstate relations.