This study examines the effect of perceived organisational politics on organisational silence through the mediating role of organisational cynicism. In addition, it tests the effect of perceived support on this relationship. A quantitative (questionnaire survey) design was used to gather data from 346 employees in three public hospitals in Iraq. The structural equation model was used for data analysis. The results demonstrate that all the major hypotheses were accepted, and important role of perceived support in reversing the positive relationship between perceived organisational politics and organisational cynicism was also highlighted. Furthermore, the mediating role was clear in terms of organisational cynicism and the relationship between perceived organisational politics and organisational silence.

This paper examines the sources of knowledge workers’ work intensity and the self-leading strategies they apply to deal with it. The paper is based on focus group interviews with management consultants in a Danish management consultancy firm. Work intensity was identified as resulting from a combination of: (1) a results-only focus, (2) vagueness, (3) boundaryless work, and (4) low control of the quantitative load. A framework for self-leading strategies is developed based on the dimensions of reactive/proactive and self-focused/externally focused strategies in different combinations. The results indicate that while consultants expressed a belief in internal self-discipline strategies of a more reactive nature, in fact, external and proactive strategies were the most effective in practice. In conclusion, the paper contributes to an extension of self-leadership theory to better account for current research on self-control.

There is widespread agreement that corporate debts’ recovery rates are time varying, but empirical work in this area is limited. We show that the joint information from the term structure of senior and subordinate credit default swaps can identify the level and the dynamics of recovery rates. We estimate a reduced-form no-arbitrage model on 46 firms across different industries. We find that the term structure of expected recovery rates is, on average, downward sloping. However, an inversion occurs during the 2008 crisis, suggesting the market expects higher recoveries conditional on short-term survival. The inversion is more pronounced for firms in distressed industries.

Mutual fund managers with degrees from elite universities tend to outperform their counterparts from less elite universities. We show that the better performance of elite graduates is generated from their better connections with underwriters that facilitate allocations to underpriced initial public offerings (IPOs). Indeed, we find that the funds outperform only in months when they are connected to underwriters issuing IPOs. A strategy of buying mutual funds in months when they are connected to underwriters scheduled to issue IPOs generates significant abnormal returns, as high as 4.08% per annum in hot markets.

We provide a theoretical rationale for dealer objections to ex post transparency in over-the-counter markets. Disclosure of the terms of a transaction conveys information possessed by the dealer about the asset quality and reduces the dealer’s rents when she disposes of the inventory in a second transaction. We show that costly signaling in a transparent market benefits investors through lower spreads and higher volume. Dealers may also gain from transparency despite lower spreads when potential gains from trade are small or adverse selection is high, because in those circumstances higher volume offsets smaller spreads for dealer profits.

Bankruptcy is a precise legal process defining, ex ante, the rules for allocation of assets when debtors fail to repay their legally constituted debts. Ultimately, these rules determine willingness to lend and to borrow, and thus economic growth. In 1706, Parliament in England passed a bankruptcy statute that allowed, for the first time, bankrupts to exit the state of bankruptcy prior to full repayment of all debts. This represented a fundamental change in English bankruptcy rules: creditors could now choose to discharge a bankrupt. Obviously, bankrupts benefitted from such a discharge, but creditors could also benefit from greater asset revelation. We document that discharge was quickly adopted, and estimate that many bankrupts received a second chance in business.

When can complex multi-round environmental policymaking like that seen in climate be successful? An emerging branch of literature examines how sequencing matters to success and under what circumstances path dependent dynamics can lead to increasingly stringent climate and environmental policy. Here, I propose an industry typology that divides industry into four categories based on their relationship and likely response to early regulatory policy moves. I use a series of case studies that compare the application of this typology across issue areas internationally, looking comparatively at ozone and climate change policymaking; and subnationally across U.S. states in the climate change issue area. Using these case studies, I show how this model for understanding different mixes of industry type can help us understand and predict the likelihood of policy-industry feedback that leads to increasing environmental and renewable energy policy success over time, both at the international level and comparatively across national and sub-national jurisdictions.

This article investigates the impact of political uncertainty on contractual lending terms using a large sample of syndicated loans and a within-firm estimation approach to achieve identification. Firms pay 7 basis points (bps) more on loans originated when their lenders are undergoing an election relative to when their lenders are not undergoing an election. Lenders from less financially developed countries are more likely to pass political uncertainty costs to borrowers. Consistent with electoral uncertainty driving this premium, the most contested elections have the largest impact (17 bps). Overall, political uncertainty leads to a tangible increase in firms’ financing costs.

To price assets with a parsimonious set of factor-mimicking portfolios, one typically identifies and weights well-diversified basis portfolios. Traditional weightings lead to factor-mimicking portfolios that are unlikely to price even the basis portfolios from which they are formed. We offer a method to combine basis portfolios into a single factor-mimicking portfolio that is closely linked to the optimal portfolio. In practice, this method improves the pricing accuracy of parsimonious factor models, even for anomaly portfolios formed from characteristics that are distinct from those underlying the basis portfolios.

We study quantitative easing (QE) policies from a microstructure perspective, drawing on intraday transaction-level data for German bonds (purchased under the Eurosystem’s QE program). An initial analysis of purchase decisions reveals that portfolio managers consider liquidity and the scarcity of securities in repo markets. Suggestive of significant flow effects, we detect price impacts of purchases at high and low frequencies. We find the impact on market liquidity and functioning to be ambiguous. A higher purchase volume lowers transaction costs but has an adverse impact on order-book depth. The price impact varies with market conditions and is higher for more illiquid bonds.

Many ethicists argue that contract theory offers the most promising strategy for regulating risks. I challenge the adequacy of the contractualist approach for evaluating the complicated, novel risks associated with some structured financial products, particularly focusing on risks to third parties. Structured financial products like collateralized debt obligations (CDOs) divide a pool of financial assets into risk “tranches” organized from least to most risky. Investors purchase various tranches based on their individual risk-and-return preferences. Whereas contract theory holds that investment risks are ethically permitted (roughly) when everyone—including both parties directly involved in the investments and third parties—consents to them, structured financial products like CDOs show that even risks to which everyone consents are ethically problematic when they involve systemic risks of ruin.