Organizations & Markets

The present paper seeks to explain varying levels of assertiveness in interpersonal conflict and negotiations with assertiveness expectancies, idiosyncratic predictions people make about the social and instrumental consequences of assertive behavior. This account complements motivation-based models of assertiveness and competitiveness, suggesting that individuals may possess the same social values (e.g., concern for relationships) but show dramatically different assertiveness due to different assumptions about behavioral consequences.

This paper compares centralized and decentralized price setting by a firm that sells a single product in two markets, but is constrained to set one price (e.g., due to arbitrage). Each market is characterized by a different linear demand function, and demand conditions are privately observed by a local manager. This manager only cares about profits in his own market and, as a result, communicates his information strategically. Our main results link organizational design to market demand.

Bekaert and Hodrick equip future business leaders with the analytical tools they need to make sound financial decisions in the face of a competitive global environment. For undergraduate and graduate students enrolled in an international finance course.

Under U.S. GAAP, reported balance sheet and income statements are based on immediate expensing of R&D expenditures. We capitalize those expenditures and derive adjusted equity book values and earnings using simple amortization techniques (straight-line over assumed industry-specific useful lives). After confirming that such adjustments increase the association of book values/earnings with contemporaneous stock prices (and future earnings), we examine the relation between those adjustments and future returns.

An impressive set of scholars and practitioners bring together in this volume recent practical innovations and policy questions in the field of microfinance. The authors address integration of capital markets with microfinance, technological innovations such as the use of mobile phone technology, the consequences of gender empowerment (particularly on micro-loan borrowings), and the regulatory challenges and opportunities emerging as the landscape of microfinance dramatically evolves.

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.

Since its first publication, Michael J. Mauboussin's popular guide to wise investing has been translated into eight languages and has been named best business book by BusinessWeek and best economics book by Strategy+Business. Now updated to reflect current research and expanded to include new chapters on investment philosophy, psychology, and strategy and science as they pertain to money management, this volume is more than ever the best chance to know more than the average investor.

Consider an economy in which the underlying security returns follow a linear factor model with constant coeffcients. While portfolios that invest in these securities will, in general, have a linear factor structure, it will be one with time-varying coeffcients. However, under certain assumptions regarding the portfolio's investment strategy, it is possible to estimate these time-varying alphas and betas.

This paper examines coworker networks in the American, Chinese, German, and Spanish divisions of a global retail bank. Because the bank has standardized structure and policies across countries, it is possible to examine how norms rooted in national culture impact on various features of informal ties. We propose that cultures vary in the models on which coworker interaction norms are based, with market, family, law, and friendship relations serving as alternative templates.