The knowledge exchanges literature considered all types of knowledge exchanges as reactive. The present study develops the conceptual framework and the measure of knowledge-based proactive helping that was missing in earlier literature. The measure was validated across multiple population. Proactive helping was manifested in the scale items effectively, to the extent that at first, initially chosen five dimensions merged to form two factors: professional development and problem mitigation and; subsequent analysis revealed that the factors represented the same underlying construct of proactive helping. The nomological network, a process model highlighting the psychosocial causes and benefits of proactive helping based upon social exchange theory and social motivation theory was also proposed. The significance of the study was in bringing the prosocial, proactive exchanges at the forefront of knowledge exchanges, which predominantly focussed on reactive exchanges.

This study takes a step toward reconceptualizing the process of financialization, the reorientation of the US economy toward financial services that scholars view as a product of the 1970s economic shocks and subsequent regulatory liberalization. Instead, I argue that financialization was equally dependent on the gradual development of new financial technologies and business practices within the political and regulatory environment of the early postwar era. I do so by examining a cohort of small U.S. banks, which in the early 1950s began experimenting with a novel form of consumer credit: the charge account credit service. These plans allowed consumers to shop at a variety of local merchants using a single bank charge card. Bankers, though, developed charge account plans not as a conduit for consumer lending but as a business service, which enabled their small-merchant customers to compete with the credit plans offered by expanding department stores. In this way, charge account banking conformed with the 1950s political economy of finance, in which commercial bankers primarily lent to businesses and were still wary of consumer credit. Although they operated differently than the credit cards consumers know today, charge account banking plans were still a necessary first step toward this later financial technology, paving the way for commercial bankers to invest in unsecured card-based credit in the decades that followed.

The extant literature suggests that one of the main causes of the recent financial crisis was the excessive use of short-term debt by banks. Using a large sample of banks, we find that increases in repurchase agreements (repos) were recognized by external capital markets to increase bank risk in the pre-crisis period. In the crisis, we find a negative relationship between repos and risk. We attribute this result to evidence suggesting that “good” banks were able to continue funding their repos, whereas “bad” banks had to significantly decrease their repo funding.

We investigate how chief executive officers’ (CEOs) risk incentive (VEGA) affects firm innovation. To establish causality, we exploit compensation changes instigated by the FAS 123R accounting regulation in 2005 that mandated stock option expensing at fair values. Our identification tests indicate a positive and causal effect of CEOs’ VEGA on innovation activities. Furthermore, dampened managerial risk-taking incentive after the implementation of FAS 123R leads to a significant reduction in innovation related to firms’ core business and explorative inventions. It implies that managers diversify their innovation portfolios and decrease explorative inventions to curtail business risk when their risk-taking incentive is reduced.

We propose a new multi-factor model for international stock returns that includes size, value, and momentum factor portfolios and that builds them in a partial-segmentation capital market framework. Accounting for externalities driven by the incomplete accessibility to stocks and stock markets, our model not only captures strong common variation in international stock returns but also achieves low pricing errors and rejection rates relative to pure segmentation and pure integration models. This partial-segmentation approach is evaluated using monthly returns for over 37,000 stocks from 46 developed and emerging market countries over 2 decades and for a wide variety of test assets.

The value of corporate cash holdings has increased significantly in recent decades. On average, $1 of cash is valued at $0.61 in the 1980s, $1.04 in the 1990s, and $1.12 in the 2000s. This increase is predominantly driven by the investment opportunity set and cash-flow volatility, as well as secular trends in product market competition, credit market risk, and within-firm diversification. We document a secular decrease in the speed of adjustment (SOA) in cash holdings, particularly for financially constrained firms with cash deficits, suggesting that capital market frictions can account for the trend in the value of cash holdings.

In recent years there has been a growing scholarly interest in authentic leadership, a leadership style that fosters positive psychological capacities and a positive ethical climate. This study focuses on the Certified Public Accounting profession, which is known as a detail-oriented occupation. We examined if Certified Public Accounting managers exhibiting an authentic leadership style were capable of strengthening the commitment of their subordinates and, at the same time, reducing role-stress and intentions to leave. The hypotheses were tested on a sample of 512 Certified Public Accountings in Israel using structural equation modeling. Results revealed that perceived authentic leadership was negatively related to role-conflicts and role-ambiguity, directly and through the mediation of affective commitment. In addition, the negative correlation between authentic leadership and intention to leave was fully mediated by affective commitment. Limitation and applications for organizations are discussed.

We consider the estimation methods for the rank of a beta matrix corresponding to a multifactor model and study which method would be appropriate for data with a large number of assets. Our simulation results indicate that a restricted version of Cragg and Donald’s (1997) Bayesian information criterion estimator is quite reliable for such data. We use this estimator to analyze some selected asset pricing models with U.S. stock returns. Our results indicate that the beta matrix from many models fails to have full column rank, suggesting that risk premiums in these models are underidentified.

I am stunned by the failure of so many organizations to create the capability for generating streams of new products and services over time. Organizations capable of ongoing innovation can create more profits, more value, more employment, more growth, and more adaptability to transformations in technologies and markets (BCG study of investor returns). Generating streams of innovation is even more important now, especially for organizations in emerging economies, because industrial transformations and global grand challenges (Ferraro, Etzion, & Gehman, 2015) demand continuous innovations in products, programs, business processes, and strategies. For example, digitalization is transforming business models from vertical industrial silos such as consumer goods, materials, or financials to horizontal platforms that orchestrate networks, create technologies, and provide services (think Amazon, Alibaba). New markets and technologies emerge unpredictably but will produce major economic and social changes. Emerging economies more directly face grand challenge complexities of poverty, water scarcity, inequality, and climate changes. Innovations in emerging economy organizations are also very complex, since they often include innovations in sales, distribution, and business models along with rigorous product design and development processes.