Leadership & Organizational Behavior

Historical and empirical data have linked artistic creativity to depression and other affective disorders. This study examined how vulnerability to experiencing negative affect, measured with biological products, and intense negative emotions influenced artistic creativity. The authors assessed participants' baseline levels of an adrenal steroid (dehydroepiandrosterone-sulfate, or DHEAS), previously linked to depression, as a measure of affective vulnerability.

Walgreen Company completed new five-year financial projections in preparation for the succession of Daniel Jorndt, senior vice president of finance and company treasurer, to the presidency of the company. Joanna Doode, Jorndt's assistant, had been requested by Jorndt to consider specifically whether the company's projected dividend path was appropriate in light of Walgreens' changing circumstances. Did Walgreens' expected surge in cash flow necessitate that its cash distribution policy be more dramatically overhauled?

The Institute of Medicine identified "timeliness" as one of six key "aims for improvement" in its most recent report on quality. Yet patient delays remain prevalent, resulting in dissatisfaction, adverse clinical consequences, and often, higher costs. This tutorial describes several areas in which patients routinely experience significant and potentially dangerous delays and presents operations research (OR) models that have been developed to help reduce these delays, often at little or no cost.

This paper empirically investigates directors' ownership in the mutual fund industry. Our results show that, contrary to anecdotal evidence, a significant portion of directors hold shares in the funds they oversee. Ownership patterns are broadly consistent with an optimal contracting equilibrium. That is, ownership is positively and significantly correlated with most variables that are predicted to indicate greater value from directors' monitoring. For example, directors' ownership is more prevalent in actively managed funds and in funds with lower institutional ownership.

Using a large hand-collected data set from 2001 to 2006, we find that activist hedge funds in the United States propose strategic, operational, and financial remedies and attain success or partial success in two-thirds of the cases. Hedge funds seldom seek control and in most cases are nonconfrontational. The abnormal return around the announcement of activism is approximately 7%, with no reversal during the subsequent year. Target firms experience increases in payout, operating performance, and higher CEO turnover after activism.

Hedge fund activism is a new form of investment strategy. Using a large handcollected data set from 2001 to 2006 we find that activist hedge funds in the U.S. propose strategic, operational, and financial remedies and attain success or partial success in two-thirds of the cases. The abnormal stock return upon announcement of activism is approximately seven percent, with no reversal during the subsequent year. Target firms experience increases in payout, operating performance, and higher CEO turnover after activism.

Whether a business is large or small, its brand is probably its most important and valuable asset. How a brand is managed has tremendous impact on an organization's ability to attract and hold customers, achieve high revenue and profits, and ensure future success. The most powerful brands are worth billions of dollars, but to build a powerful brand at any level requires time, effort, discipline, and understanding the way brands work.

This article investigates the configuration of cognition- and affect-based trust in managers' professional networks, examining how these two types of trust are associated with relational content and structure. Results indicate that cognition-based trust is positively associated with economic resource, task advice, and career guidance ties, whereas affect-based trust is positively associated with friendship and career guidance ties but negatively associated with economic resource ties.

We assemble bank-level and other data for Fed member banks to model determinants of bank failure. Fundamentals explain bank failure risk well. The first two Friedman-Schwartz crises are not associated with positive unexplained residual failure risk, or increased importance of bank illiquidity for forecasting failure. The third Friedman-Schwartz crisis is more ambiguous, but increased residual failure risk is small in the aggregate. The final crisis (early 1933) saw a large unexplained increase in bank failure risk.