Recent studies showing that some outcome variables do not statistically significantly differ between real-stakes and hypothetical-stakes conditions have raised methodological challenges to experimental economics’ disciplinary norm that experimental choices should be incentivized with real stakes. I show that the hypothetical bias measures estimated in these studies do not econometrically identify the hypothetical biases that matter in most modern experiments. Specifically, traditional hypothetical bias measures are fully informative in ‘elicitation experiments’ where the researcher is uninterested in treatment effects (TEs). However, in ‘intervention experiments’ where TEs are of interest, traditional hypothetical bias measures are uninformative; real stakes matter if and only if TEs differ between stakes conditions. I demonstrate that traditional hypothetical bias measures are often misleading estimates of hypothetical bias for intervention experiments, both econometrically and through re-analyses of three recent hypothetical bias experiments. The fact that a given experimental outcome does not statistically significantly differ on average between stakes conditions does not imply that all TEs on that outcome are unaffected by hypothetical stakes. Therefore, the recent hypothetical bias literature does not justify abandoning real stakes in most modern experiments. Maintaining norms that favor completely or probabilistically providing real stakes for experimental choices is useful for ensuring externally valid TEs in experimental economics.

El surgimiento de la banca en Hispanoamérica durante la década de 1820 tuvo implicaciones en la estabilidad financiera de los nuevos estados independientes y en los modos con los que los actores económicos locales desarrollaban sus negocios. La aparición de novedosos instrumentos de pago, como billetes y cheques bancarios, habilitó transacciones con base en una infraestructura hasta entonces desconocida localmente. Los cheques permitieron el empleo de depósitos y sobregiros como medios para la concreción de pagos, expresando la emergencia del dinero bancario propiamente dicho. Aplicando el Análisis de Redes Sociales sobre la información del archivo bancario, el presente artículo propone explicar los mecanismos que permitieron la difusión de aquel instrumento, propiciando su admisibilidad en la economía de un Estado naciente.

Previous research mainly emphasizes relational factors that drive employees to engage in unethical behaviors to benefit their group, overlooking the role of ability-related mechanisms. However, understanding the ability-related mechanisms not only deepens our insight into unethical pro-group behaviors but also informs effective strategies for reducing such behaviors. Drawing upon social cognitive theory, we propose that employees who perceive low group potency are more likely to engage in unethical pro-group behaviors. In this regard, transformational leadership can reduce these unethical behaviors by increasing employees’ perception of group potency. Furthermore, we suggest that this effect is particularly salient when employees perceive a high leader–organization fit. We conducted an experiment and a multi-source, multi-wave field study to empirically test this theoretical model. Our research contributes to the literature on behavioral ethics and transformational leadership and provides practical implications for reducing unethical pro-group behaviors in the workplace.

This study examines how top managers engage in sensemaking to navigate dynamic and complex industrial policy environments and respond strategically. Based on a longitudinal narrative case study of a privately owned firm in China, we explore how managers interpret evolving policy signals and drive corporate strategic change. We extend sensemaking theory by incorporating an institutional logics perspective to investigate how top managers draw on multiple logics to make sense of policy shifts and craft organizational responses. The study develops a holistic process model that links industrial policy, sensemaking, and strategic change, highlighting the embedded agency of top managers in responding to evolving and diverse institutional pressures. By unpacking the temporal dynamics of sensemaking, we identify how the temporality of sensemaking contributes to heterogeneity in corporate strategic behavior. This research advances understanding of sensemaking as a key process linking shifting policies with firm strategic actions and contributes to the literature on sensemaking, institutional logics, and strategic change.

This study examines how internal CEO alliances, defined as social and structural ties between CEOs, subordinate executives, and board members, influence corporate carbon performance. Drawing on data from 36 countries over the period 2002–2023, we find that strong internal alliances are associated with weaker carbon performance, suggesting that concentrated internal power may hinder firms’ emission reduction efforts. However, this adverse effect is significantly moderated by various organizational and institutional factors. Specifically, it is attenuated in contexts characterized by stringent environmental regulation, robust media oversight, high regulatory quality, and greater board gender diversity. At the individual level, CEO characteristics such as hometown affiliation and older age also appear to reduce the negative influence of internal alliances. These findings advance our understanding of how CEO power dynamics interact with external and internal governance mechanisms to influence firms’ climate-related outcomes.

How do bankers treat green firms? Using unique loan application and banker preference data from a mid-sized bank, we find that customer managers, serving as front-line bankers, give more favorable recommendations to green firms, especially when they hold green values themselves. However, a minority of environmentally skeptical loan officers, aware through internal training that customer managers generally have greener preferences, counter this by downgrading positive evaluations of green firms. Despite not knowing the customer manager’s identity, these officers use their discretion to mitigate what they perceive as green biases, demonstrating the significant moderating role of superiors within the bank’s hierarchy.

The aim of this editorial is to provide an update about the Journal of Management & Organization in terms of its progress during the year 2025. This will help to understand how the journal has progressed over time and the main changes occurring in 2025 in term of analysis of articles, subject topic, author, reviewer, and other relevant information. To do this, a historical perspective is provided that highlights the main contributions in 2025 that are especially relevant given the journal’s 30th birthday celebrations. The core management topics and areas of interest published in 2025 are discussed in terms of final decisions about total number of articles accepted and acceptances based on country of main authors. A list of best reviewers for the journal is included as well as a published list of reviewers. The journal metrics are discussed as well as future objectives and goals.

We examine the consequences of controversies on corporate reputation and identify a strategy that companies often adopt to restore their trust relationships with stakeholders in the aftermath of media condemnation. In the post-controversy period, firms appear to use a bolstering strategy of engaging more actively in philanthropic activities. In terms of regaining reputation, as measured by the increase in the Britain’s Most Admired Companies ranking, such strategy proves to be ineffectual. This may be because charitable giving in such context could be viewed as superficial virtue signaling rather than a fundamental change in the company’s ethical stance.

This study examines how meso-level institutions within Ostrom’s polycentric governance systems guide farmers’ deliberative preferences for collective adaptation to saltwater inundation in the Philippines and Viet Nam. Specifically, the paper investigates three mechanisms of meso-institutional influence: legitimacy creation, belief formation, and social enforcement that shape farmers’ collective adaptation. Using multinomial logistic regression with cluster-robust standard errors on survey data from rice farmers, results show that institutional embeddedness depends on both physical exposure and socioeconomic capacity; information access enhances belief accuracy and collective preferences in contexts where institutional trust is high; and legitimacy-based feasibility significantly strengthens support for collective measures. Findings also show country differences in managing high-externality adaptation measures, with only Viet Nam exhibiting sensitivity to institutional quality at higher externality levels. Comparative results reveal that autonomous, participatory meso-institutions in the Philippines generate stronger deliberative preferences and more cohesive collective adaptation than state-centred structures in Viet Nam.

This paper estimates the scarring effect of recessions on corporates’ investment and how it is amplified by the level of corporate debt. Our results suggest that the effect of firms’ debt in shaping the response of investment to recessions is statistically significant and economically sizeable, with high-debt firms seeing a larger decline in investment. Back-of-the-envelope calculations suggest that firms’ debt accounts for at least 28% of the average medium-term decline of investment. This effect is especially larger for: (i) countries with less efficient bankruptcy systems; (ii) during global recessions and firms operating in sectors with higher export dependences; and (iii) firms that are credit-constrained—small and less profitable firms, and those with high share of short-term debt.

A first-order Gaussian autoregressive model is considered. The exact finite-sample joint density of the minimal sufficient statistic is derived, for any value of the autoregressive parameter. This allows us to derive explicitly the exact density of the autocorrelation coefficient and its Studentized t-ratio, whose densities were available only in the asymptotic case and not for all values of the parameter and the statistic. This article also demonstrates how to solve a general problem in statistical distribution theory (well beyond the specific case of autoregressive models), that of inverting confluent characteristic functions in multiple variables.

This article presents novel methods and theories for estimation and inference about parameters in statistical models using machine learning for nuisance parameter estimation when data are dyadic. We propose a dyadic cross-fitting method to remove over-fitting biases under arbitrary dyadic dependence. Together with the use of Neyman orthogonal scores, this novel cross-fitting method enables root-n consistent estimation and inference robustly against dyadic dependence. We demonstrate its versatility by applying it to high-dimensional network formation models and reexamine the determinants of free trade agreements.