We applaud the efforts of Gardner, Ryan, and Snoeyink (2018) in launching much-needed dialogue on gender representation within the field of industrial and organizational (I-O) psychology. We agree that it is imperative to address inequity in our profession, beginning with an informed assessment of accurate information. However, the focal article did not offer any information on the representation of a group that too often goes unnoticed: women of color.

Gardner, Ryan, and Snoeyink (2018) emphasize the need to assess human capital and market factors that may contribute to gender differences in income and suggest that such data are not readily available. As members of the Institutional Research Committee, we thought it important to provide some evidence addressing the focal article's main points using what data are available. Specifically, we conducted ad hoc analyses using data from the 2016 SIOP Income and Employment Survey, with the intent of providing additional context related to employment and compensation for industrial and organizational (I-O) psychologists. Our sample included only respondents who indicated that they worked full time and who provided their gender (n = 1,069). These analyses answer Gardner et al.’s call to examine factors that explain the income gap between men and women within the field.

We find that the controlling family holds both the chief executive officer and chair positions in 79% of Norwegian family firms. The family holds more governance positions when it owns large stakes in small, profitable, low-risk firms. This result suggests that the family trades off expected costs and benefits by conditioning participation intensity on observable firm characteristics. We find that the positive effect of performance on participation is twice as strong as the positive effect of participation on performance. The endogeneity of participation, therefore, should be carefully accounted for when analyzing the effect of family governance on the family firm’s behavior.

This article provides a comprehensive examination of the time-series behavior of relationship banks around and during borrower distress. Relationship and outside loans have similar interest rates during distress and even 2 years prior to distress. Relative to outside loans in distress, relationship loans in distress have lower maturity. The fraction of bank lending given by relationship banks reduces during borrower distress. Overall, borrowers in distress do not derive benefits from relationship banks. These findings are inconsistent with models that suggest banks have an implicit commitment to help their borrowers in distress due to reputation concerns.

Workgroup relationships are characterized by interdependence and intensity and can produce powerful norms that shape how work is performed. This study focuses on the effect of workgroup accord, defined as positive exchange, cooperation, and consensus among workgroup members, on change-oriented behavior in public service organizations. Change-oriented behavior denotes discretionary corrective or creative initiatives on the part of employees, and workgroup accord is hypothesized to increase change-oriented behavior both directly and indirectly via organizational commitment. The theoretical model is operationalized using survey data collected from employees of the Australian Public Service. The results of regression analysis are consistent with the hypothesis that workgroup accord positively influences organizational commitment, which in turn facilitates change-oriented behavior. However, a negative direct effect renders the total effect of workgroup accord on change-oriented behavior non-significant. Additionally, the findings suggest that innovation climate and employee performance agreement efficacy each positively moderate the negative relationship between workgroup accord and change-oriented behavior.

Theory on high-frequency traders (HFTs) predicts that market liquidity for a security decreases in the number of HFTs trading the security. We test this prediction by studying a new Canadian stock exchange, Alpha, that experienced the entry of 11 HFTs over 4 years. We find that bid–ask spreads on Alpha converge to those at the Toronto Stock Exchange as more HFTs trade on Alpha. Effective and realized spreads for non-HFTs improve as HFTs enter the market. To explain the contrast with theory, which models the HFT as a price competitor, we provide evidence more consistent with HFTs fitting a quantity-competitor framework.

We conduct a controlled laboratory experiment in the spirit of Merton (1971), in which subjects dynamically choose their portfolio allocation between a risk-free and risky asset. Using the optimal allocation of an investor with hyperbolic absolute risk aversion (HARA) utility, we fit the experimental choices to characterize the risk profile of our participants. Despite substantial heterogeneity, decreasing absolute risk aversion and increasing relative risk aversion are the predominant types. We also find some evidence of increased risk taking after a gain. Finally, the session level risk attitudes show a different profile than the individual descriptions of risk attitudes.

We study performance and competition among firms engaging in high-frequency trading (HFT). We construct measures of latency and find that differences in relative latency account for large differences in HFT firms’ trading performance. HFT firms that improve their latency rank due to colocation upgrades see improved trading performance. The stronger performance associated with speed comes through both the short-lived information channel and the risk management channel, and speed is useful for various strategies, including market making and cross-market arbitrage. We find empirical support for many predictions regarding relative latency competition.

This paper studies the diffusion of regional macroeconomic information into stock prices. I identify all U.S. states that are economically relevant for a company through textual analysis of annual reports and find that economic activity forecasts of company-relevant regions positively predict cross-sectional stock returns. Information arising from all relevant states is more important than that relating to the headquarter state alone. These forecasts also predict firms’ performance and earnings surprises, suggesting that the return predictability stems from future cash flows that are gradually reflected in prices. Finally, regional information takes longer to be incorporated into prices among difficult-to-arbitrage stocks.

This study examines the consequences of conflicts between creditors. Using the setting of debt covenant violations, I employ a regression discontinuity design to identify the effect of banks’ interventions on their borrowers’ trade credit. The results show that trade credit experiences a substantial decline when banks intervene in the borrowing firm following covenant violations. The decline is mitigated by the presence of dependent suppliers and exacerbated by banks’ incentives to exercise control rights. Such externalities are reflected in the loan-contract design. Borrowing firms sign less restrictive loan contracts when they rely more on trade credit or trade creditors.

We examine whether industry product market conditions are important in assessing the benefits and costs of chief executive officer (CEO) power. We find that firms are more likely to have powerful CEOs in high demand product markets where firms are facing entry threats. In these markets, investors react favorably to announcements granting more power to CEOs, and CEO power is associated with higher market value, sales growth, investment, advertising, and the introduction of more new products. Our results remain significant when addressing the endogeneity of CEO power by instrumenting CEO power with past non-CEO executive and director sudden deaths.

Academic literature, practitioners, courts, and regulators routinely assert that both private and subsidiary targets sell at discounts relative to public targets. However, the empirical evidence to support this conclusion is thin. Our work alters the methodology from prior research to avoid biases due to both one-sided sample truncation and Jensen’s inequality. Following these changes, we find no evidence that unlisted targets sell at discounts. Our results hold under a number of different approaches and after controlling for known determinants of acquisition pricing.

Does option-based compensation affect payout policy? To address this question, we examine the adoption of mandatory expensing of stock options. Our identification strategy exploits the fact that the reduction in option-based compensation after the accounting change varies with the firm-specific expected accounting impact. Across a battery of tests, we do not find that (accounting-driven) reductions in option-based pay cause dividends to increase or repurchases to decrease. Our results contrast with the widely held belief that option-based pay has a significant causal influence on payout policy and cast doubts on its role in the shift from dividends to repurchases.

Technology costs and deployment rates, represented in experience curves, are typically seen as the main factors in the global clean energy transition from fossil fuels towards low-carbon energy sources. We argue that politics is the hidden dimension of technology experience curves, as it affects both costs and deployment. We draw from empirical analyses of diverse North American and European cases to describe patterns of political conflict surrounding clean energy adoption across a variety of technologies. Our analysis highlights that different political logics shape costs and deployment at different stages along the experience curve. The political institutions and conditions that nurture new technologies into economic winners are not always the same conditions that let incumbent technologies become economic losers. Thus, as the scale of technology adoption moves from niches towards systems, new political coalitions are necessary to push complementary system-wide technology. Since the cost curve is integrated globally, different countries can contribute to different steps in the transition as a function of their individual comparative political advantages.

We present evidence of investors underreacting to the absence of events in financial markets. Routine-based insiders strategically choose to be silent when they possess private information not yet reflected in stock prices. Consistent with our hypothesis, insider silence following a routine sell (buy) predicts positive (negative) future returns, as well as fundamentals. The return predictability of insider silence is stronger among firms with a poor information environment and facing higher arbitrage costs, and a large fraction of abnormal returns concentrates on future earnings announcements. A long–short strategy that exploits insiders’ strategic silence behavior generates abnormal returns of 6% to 10% annually.

We use variation in real estate prices as exogenous shocks to firms’ debt capacity to study the causal effect of financial flexibility on payout policy. We show that an increase in financial flexibility results in higher dividends, share repurchases, and payout flexibility. We find that a 1-standard-deviation increase in a firms’ collateral value results in 0.26- and 0.55-percentage-point increases in nondiscretionary and discretionary payouts, respectively. This effect is stronger for firms with few investment opportunities. Moreover, highly leveraged firms are more likely to cut dividends in response to a sharp decrease in their financial flexibility.

Mainstream academic literature and media use the word ‘Islam’ or ‘Muslim’ in a monolithic manner that implies internal homogeneity. However, the Islamic faith is subject to multiple interpretations, with multiple types of Muslims who practice Islam based on their ideological interpretations, sect, ethnicity and gender. Drawing on a review of literatures on Islam and Muslims from diverse fields such as religion, gender, diversity and extremism, we present a taxonomy of different types of Muslims, and highlight implications for management, organizations and governance. We trace ideological sources of divergence among variants of Islam and analyze how certain doctrinal and jurisprudential associations may reflect intolerance and extremism.

Based on the conservation of resource theory, this study investigated a moderated mediation model in which perceived co-worker support moderated the mediation of supervisory feedback avoidance between abusive supervision and help-seeking behaviour. Data from matching dyads of 220 house officers and 86 postgraduate medical staff were collected from several hospitals in Pakistan. Results of hierarchical multiple regression analyses supported the hypothesized model that abusive supervision first positively led to supervisory feedback avoidance, which in turn positively led to help-seeking from co-workers. Moreover, the mediating effect of supervisory feedback avoidance was stronger at the high value of co-worker support than that at the low value of co-worker support. This study contributes to the recently emerged notion in abusive supervision research that supervisees’ perception of abusive supervision may not always lead to abundantly reported negative work behaviours; instead, it may also lead to positive work behaviours, such as help-seeking behaviour that is highly beneficial for both supervisees and the organization.

By introducing gender similarity as a contextual antecedent of coworker support, we examined the mediating role of coworker support for the relationship between workgroup gender similarity and job attitudes. In addition, we explored how a creative requirement, which is an occupational characteristic, can influence the relationship between coworker support and job attitudes above and beyond the role of supervisor support and organizational support. Results based on 975 full-time employees across a wide variety of occupations and industries indicated that as expected coworker support can serve as an underlying mechanism in the relationship between the relational demography of a workplace and employees’ job satisfaction and intention to quit. Furthermore, coworker support was significantly related to job satisfaction only for those occupations that required high levels of creativity. Finally, the creative requirement of an occupation moderated the indirect effect of gender similarity on job satisfaction through coworker support.