Leadership & Organizational Behavior

Is firm behavior mainly driven by its environment or rather by the characteristics of its managers? We develop a cognitive theory of manager fixed effects, where the allocation of managerial attention determines firm behavior. We show that in complex environments, the endogenous allocation of attention exacerbates manager fixed effects. Small differences in managerial expertise then may result in dramatically different firm behavior, as managers devote scarce attention in a way which amplifies initial differences.

Deciding between the use of market orders and limit orders is an important question in practical optimal trading problems. A key ingredient in making this decision is understanding the uncertainty of the execution of a limit order, that is, the fill probability or the probability that an order will be executed within a certain time horizon. Equivalently, one can estimate the distribution of the time-to-fill. We propose a data-driven approach based on a recurrent neural network to estimate the distribution of time-to-fill for a limit order conditional on the current market conditions.

Expectations Investing offers a unique and powerful alternative for identifying value-price gaps. Rappaport and Mauboussin provide everything the reader needs to utilize the discounted cash flow model successfully. And they add an important twist: they suggest that rather than forecasting cash flows, investors should begin by estimating the expectations embedded in a company's stock price. An investor who has a fix on the market's expectations can then assess the likelihood of expectations revisions.

Economic theory suggests that leaders may play key roles in enabling social movements to overcome collective action problems through a variety of distinct mechanisms. Empirical tests of these theories outside the lab are scarce due to both measurement and identification challenges. We conduct multiple field experiments to test theories of leadership in the context of Myanmar's burgeoning labor union movement. We collaborate with a confederation of labor unions as it mobilizes garment workers in the run-up to a national minimum wage negotiation. We present three sets of results.

We cast new light on the influence of pensions on labor supply. To do so, we compare the retention patterns of pension-eligible workers to those of pension-ineligible ones, allowing us to non-parametrically identify the counterfactual in large, administrative data. Pensions exert a retentive force as workers approach the eligibility threshold and apply strong expulsive pressure thereafter (since employees lose pension wealth by remaining employed once eligible).

There has been extensive discussion about gender gaps in representation and career advancement in the sciences. However, psychological science itself has yet to be the focus of discussion or systematic review, despite our field’s investment in questions of equity, status, well-being, gender bias, and gender disparities. In the present article, we consider 10 topics relevant for women’s career advancement in psychological science.

This paper estimates a structural model of unconventional monetary policy transmission through bank balance sheets using cross-sectional instruments for loan and deposit demand. We estimate the demand for banking at a branch-specific level from the response of a bank's quantities at one branch to interest rate changes caused by demand shocks at other branches. Depositors are considerably less sensitive to interest rates than corporate or mortgage borrowers.

Organizations regularly divide members in ways that maximize diversity, yet it is unclear whether efforts to induce diversity are effective in producing lasting ties. In this paper, we explore the extent to which an organization can induce diverse networks in small groups versus large groups, and in the short term (while induced contact persists) and in the long term (after induced contact ends). We evaluate this in an incoming MBA cohort as they are assigned to 70-person sections and five-person learning teams, both intended to maximize diversity and facilitate diverse ties.