Leadership & Organizational Behavior

The distinction between affect- and cognition-based trust is applied to investigate differences between Chinese and American managerial networks. We found that affect- and cognition-based trust were more intertwined for Chinese managers than American managers. For Chinese managers, affect-based trust was more associated with economic dependence ties and less with friendship ties. Whereas alter's embeddedness in ego's network solely increased affect-based trust for American managers, it increased both types of trust for Chinese managers.

Contagion is usually defined as correlation between markets in excess of what would be implied by economic fundamentals; however, there is considerable disagreement regarding the definitions of the fundamentals, how the fundamentals might differ across countries, and the mechanisms that link the fundamentals to asset returns. Our research takes, as a starting point, a two-factor model with time-varying betas that accommodates various degrees of market integration between different markets.

Despite the vast research literature on topics relating to contract theory, only a few of the field's core ideas are covered in microeconomics textbooks. This long-awaited book fills the need for a comprehensive textbook on contract theory suitable for use at the graduate and advanced undergraduate levels. It covers the areas of agency theory, information economics, and organization theory, highlighting common themes and methodologies and presenting the main ideas in an accessible way.

This paper is concerned with the issue of how to balance bailouts (or "lending into arrears") with debt reductions (or "private sector involvement") in the resolution of sovereign debt crises. It provides a review of recent proposals to regulate sovereign debt renegotiations under a Sovereign Debt Restructuring Mechanism (SDRM). In addition to defending a sovereign bankruptcy proposal we have put forward in recent work, this article proposes a major reorientation of the IMF's role in sovereign debt crises.

CASE SETTING: $250 million to $499 million in revenues; luxury goods; Netherlands, France At three o'clock in the morning of September 10, 2001, Thierry Hautillac, a risk arbitrageur, learns of the final agreement between Pinault-Printemps-Redoute SA (PPR) and LVMH Moet Hennessy Louis Vuitton SA (LVMH). After a contest for control of Gucci lasting more than two years, PPR has emerged as the winner.

Access to credit is an important means of providing people with the opportunity to make a better life for themselves. Loans are essential for most people who want to purchase a home, start a business, pay for college, or weather a spell of unemployment. Yet many people in poor and minority communities — regardless of their creditworthiness — find credit hard to come by, making the climb out of poverty extremely difficult. How dire are the lending markets in these communities and what can be done to improve access to credit for disadvantaged groups?

Outside the United States and the United Kingdom, large corporations usually have controlling owners, who are usually very wealthy families. Pyramidal control structures, cross shareholding, and super-voting rights let such families control corporations without making a commensurate capital investment. In many countries, a few such families end up controlling considerable proportions of their countries' economies. Three points emerge.

We present a model of nonprofit governance built on two assumptions: (1) organizations wish to hold precautionary savings in order to smooth expenditures; and (2) it is relatively easy for managers to divert these funds for personal use. Hence, donors face a trade off between expenditure smoothing and donation dissipation.We examine the model's predictions using panel data on U.S. nonprofits.

Suppose you open talks with an important customer by making an aggressive first offer. He becomes offended. You back off a bit; he responds by trying to take advantage. This back-and-forth negotiation process, which many liken to a dance, can leave you shuffling endlessly around the issues, while resentment builds on both sides. Fortunately, a versatile strategy exists that allows you to take the lead in the dance: multiple equivalent simultaneous offers, or MESOs.