Latency delays intentionally slow order execution at an exchange, often to protect market makers against latency arbitrage. We study informed trading in a fragmented market in which one exchange introduces a latency delay on market orders. Liquidity improves at the delayed exchange as informed investors emigrate to the conventional exchange, where liquidity worsens. In aggregate, implementing a latency delay worsens total expected welfare. We find that the impact on price discovery depends on the relative abundance of speculators. If the exchange with delay technology competes against a conventional exchange, it implements a delay only if it has sufficiently low market share.

America’s entrepreneurial culture is important because it promotes the search for new opportunities for innovation. Here, the author traces that culture through two industrial revolutions and focuses on the growing tension between entrepreneurship and bureaucracy inside and outside of the nation’s twentieth-century firms. Business histories are explored using categories adapted from behavioral economics. Particular attention is devoted to some of the important exceptions that throw light upon the stereotypes of the static government agency and the slow-moving industrial firm. Still, the author concludes, following World War II the economy had to be pulled out of its bureaucratic doldrums by new science- and social science-based industries that invigorated the nation’s entrepreneurial culture and promoted a wave of significant biological and digital innovations. The article concludes with a glance at the future of the bureaucratic and entrepreneurial cultures.

This article investigates how the asset-return variance risk premium changes leverage. I find that the premium reduces leverage by increasing risk-neutral bankruptcy probability and costs in a model where asset returns have stochastic variance with the risk premium. Empirically, the model calibrations verify a significant reduction in optimal leverage, closer to observed leverage than the model without the premium. In model-free regressions, I document that leverage correlates negatively with the variance premium. The highest negative correlation is among investment-grade firms with low asset beta and historical variance but high variance premiums because their assets have high exposure to the market’s variance premium.

Prestigious journals are widely admired for publishing quality scholarship, yet the primary indicators of journal prestige (i.e., impact factors) do not directly assess audience admiration. Moreover, the publication landscape has changed substantially in the last 20 years, with electronic publishing changing the way we consume scientific research. Given that it has been 18 years since the publication of the last journal prestige survey of SIOP members, the authors conducted a new survey and used these results to reflect on changing practices within industrial and organizational (I-O) psychology. SIOP members (n = 557) rated the prestige and relevance of I-O and management journals. Responses were analyzed according to job setting, and were compared to a survey conducted by Zickar and Highhouse (2001) in 2000. There was considerable consistency in prestige ratings across settings (i.e., management department vs. psychology department; academic vs. applied), especially among the top journals. There was considerable variance, however, in the perceived usefulness of different journals. Results also suggested considerable consistency across the two time periods, but with some increases in prestige among OB-oriented journals. Changes in the journal landscape are discussed, including the rise of OHP as a topic of concentration in I-O. We suggest that I-O programs will continue to attract the top researchers in talent management and OHP, which should result in the use of a broader set of journals for judging I-O program impact.

The globalization of production is changing the political economy of trade policymaking: Traditional supporters of free trade (exporters seeking market access in foreign countries) are joined by new actors (companies needing intermediates from abroad for their production processes) in their lobbying efforts for trade liberalization. Multinational corporations (MNCs) play a crucial role in this new alliance due to their strong involvement in international trade and endowment with resources that can be used to lobby policymakers. We derive an argument from these premises that leads to the expectation of variation in trade policy outcomes across industries depending on their degree of integration in a global network of multinational corporations. Disaggregated data on the level of tariffs and speed of tariff cuts in preferential trade agreements, international mergers and acquisitions at the firm level, and MNC imports of intermediates by sector allow us to test the argument. The findings support our theoretical expectations. The paper sheds light on the processes and outcomes of trade policymaking in a globalized economy by further developing an existing argument about GVCs and trade policy outcomes as well as expanding on it by adding data on international corporate connections.

Although aging workforces result in numerous practical challenges for organizations and societies, little research has focused on successful aging at work. The limited existent research has generated rather diverse conceptualizations of successful aging at work, which are often broad and difficult to operationalize in practice. Therefore, to advance research and practice, we offer a specific and practical conceptualization of successful aging at work by developing a process model, which identifies relevant antecedents and mechanisms. In particular, we define successful aging at work as the proactive maintenance of, or adaptive recovery (after decline) to, high levels of ability and motivation to continue working among older workers. We also argue that proactive efforts to maintain, or adaptive efforts to recover and restore, high ability and motivation to continue working result from a self-regulation process that involves goal engagement and disengagement strategies to maintain, adjust, and restore person–environment fit. Further, we propose that at various levels (i.e., person, job, work group, organization, and society) more distal factors function as antecedents of this self-regulation process, with age-related bias and discrimination potentially operating at each level. Finally, we offer a roadmap for future research and practical applications.

Finance may suffer from institutional deformations that subordinate its distinctive goods to the pursuit of external goods, but this should encourage attempts to reform the institutionalization of finance rather than to reject its potential for virtuous business activity. This article argues that finance should be regarded as a domain-relative practice (Beabout 2012; MacIntyre 2007). Alongside management, its moral status thereby varies with the purposes it serves. Hence, when practitioners working in finance facilitate projects that create common goods, it allows them to develop virtues. This argument applies MacIntyre’s widely acknowledged account of the relationship between practices and the development of virtues while questioning some of his claims about finance. It also takes issue with extant accounts of particular financial functions that have failed to identify the distinctive goods of financial practice.

Organization and management researchers praise the value of care in the workplace. However, they overlook the conflict between caring for work and for coworkers, which resonates with the dilemma of care allocation highlighted by ethicists of care. Through an in-depth qualitative study of two organizations, we examine how this dilemma is confronted in everyday organizational life. We draw on the concept of boundary work to explain how employees negotiate the boundary of their caring responsibilities in ways that grants or denies care to coworkers. We argue that the possibility of an ethics of care for coworkers requires boundary work that suspends the separation of personal and professional selves and constitutes the worker as a whole person. We contribute to research on care in organizations by showing how care for coworkers may be enabled or undermined by maintaining or suppressing the care allocation dilemma.

We find that corporate innovation is positively related to board diversity as measured by a multidimensional index. The benefit of board diversity is more pronounced for firms with more complex operations, more experienced boards, and stronger external governance, suggesting that diverse boards have superior advising capacity. We find evidence to suggest that firms with diverse boards engage in more exploratory innovations and develop new technology in unfamiliar areas. As a result, they create a larger number of both most-cited and uncited patents. Finally, of the six different aspects of board diversity, professional diversity matters the most for corporate innovation.

We analyze the economic costs and benefits of “community-led total sanitation” (CLTS), a sanitation intervention that relies on community-level behavioral change, in a hypothetical rural region in sub-Saharan Africa with 200 villages and 100,000 people. The analysis incorporates data on the effectiveness of CLTS from recent randomized controlled trials and other evaluations. The net benefits of this intervention are estimated both with and without the inclusion of a positive health externality, that is, the additional reduction in diarrhea for an individual when a sufficient proportion of other individuals in the community construct and use latrines and thereby decrease the overall load of waterborne pathogens and fecal bacteria in the environment. We find that CLTS interventions would pass a benefit–cost test in many situations, but that outcomes are not as favorable as some previous studies suggest. The model results are sensitive to baseline conditions, including the value of time, income level used to calculate the value of a statistical life, discount rate, case fatality rate, diarrhea incidence, and time spent traveling to defecation sites. We conclude that many communities likely have economic investment opportunities that are more attractive than CLTS, and recommend careful economic analysis of CLTS in specific locations.