The effect of board size on shareholder value: Evidence from bank mergers and acquisitions

This study examines the effect of board size on the economic impact of bank mergers and acquisitions (M&A) in the US. Using a hand-collected dataset of 508 M&A between 2012 and 2018, we find that board size is negatively related to acquirer excess returns. In an additional analysis, we show that large boards have positive value implications for banks that combine the CEO and chairman roles as well as for large banks. Our findings indicate that a “one-size-fits-all” approach to board size is not necessarily in the interests of shareholders; instead, a more flexible and proactive formulation is needed.     

Do greater amounts of FDI cause higher pollution levels? Evidence from OECD countries

Using an ARDL model for a panel of 15 OECD countries, this work analyses the impact that FDI, both jointly and by sector, has on CO₂ emissions. The findings reveal that these countries are yielding to the pressure on the trade sector. Unexpectedly, gross fixed capital formation shrink pollution, excluding in the mining sector. With findings supporting the Pollution Haven Hypothesis, policymakers must pay attention to FDI inflows, ensuring that FDI place high importance on the transfer of green technologies to improve the efficiency. These goals could be achieved through an increase in the stringency of environmental laws within the host countries, especially the ones related to FDI.     

Maboo wirriya,be healthy: Community-directed development of an evidence-based diabetes prevention program for young Aboriginal people in a remote Australian town

Supporting healthy lifestyle behaviours is a key aspect of preventing type 2 diabetes which disproportionately affects disadvantaged groups from a younger age. Formative participatory research was undertaken to design a program for young Aboriginal people in a remote town in North West Australia with a high level of health needs and relatively few prevention initiatives. Focus groups and advisory discussions with Aboriginal community members were used to determine the nature of the program. The need for a comprehensive program was consistently expressed and limited healthy lifestyle knowledge and difficulties with healthy eating influenced by food environments were noted to be important. With guidance from the Derby Aboriginal Health Service, findings were integrated with previous international research evidence to develop a program tailored to local Aboriginal people aged 15–25 years and refine it after piloting. This 8-session program, ‘Maboo wirriya, be healthy’ involved an education component consistent with the US Diabetes Prevention Program and practical activities including group exercise. Changes to program structure and documentation were made after piloting for future use. The community-directed approach used in this study is vital to ensure relevance of localised chronic disease prevention programs in a range of settings.     

Preparing to face the media in times of crisis: Training spokespersons’ verbal and nonverbal cues

Seventeen in-depth interviews with professional media trainers from Belgium were carried out to examine which recommendations are offered during media training of organizational spokespersons. The interviews reveal the recommendations of media trainers concerning verbal, visual, and vocal cues of spokespersons, with special focus on addressing the media in times of organizational crisis. The findings offer a structured overview of practical recommendations given by media trainers to organizational spokespersons. In addition, the findings put the scarce academic literature about the optimal verbal and nonverbal delivery of crisis responses into perspective, by showing if and how those theoretical aspects are addressed in practice. Based on these insights a research agenda for crisis communication delivery is set.     

Explicating trust and its relation to dialogue at a time of divided societies

Values, beliefs, opinions and attitudes on issues (such as religion, LGBTQ, immigration, etc.), and the proliferation of social media platforms have made society not only more diverse but also more divided. Competing and conflicting views and attitudes result in more schisms and disengagement. In addition, conflicts and disagreements on various issues also have resulted in a lack of trust and a reluctance of organizations and publics to engage in meaningful communication. As a result, developing trusting relationships by facilitating dialogues is significant. Trust has been an important construct in past research on organization-public relationships. However, the concept of trust has rarely been discussed in-depth in public relations literature. This special section of Public Relations Review, entitled Enhancing Dialogue and Trust in Diverse Societies, examines whether the current definitions of trust and its dimensions in the public relations literature are adequate in an organization-public dialogic communication setting.     

How publics react to situational and renewing organizational responses across crises: Examining SCCT and DOR in social-mediated crises

The prevalence of social media among networked publics calls for more research regarding how organizations can conduct effective crisis communication on social networking sites. Based on the situational crisis communication theory (SCCT) and the discourse of renewal (DOR) theory, this study examined how social media publics’ sentiments were affected by situational and renewing organizational responses in various clusters of crises. Twitter data of six crises representing three crisis clusters varying in the responsibility attribution (i.e., ambiguous, accidental, and preventable) were collected. We conducted a content analysis on organizations’ official tweets during crises (N = 59) and sentiment analysis on publics’ replies on Twitter (N = 4,340). The results showed that publics’ positive sentiments toward organizations were affected by organizational crisis responses that included instructing information, sympathy, systemic organizational learning, and effective organizational rhetoric. We recommend that crisis managers express sympathy toward publics as well as organizational learning that prevents a crisis from happening again.     

Developing a multi-level organization-public dialogic communication framework to assess social media-mediated disaster communication and engagement outcomes

Dialogic communication has long been viewed as vital for effective organization-public relations. Yet, it is under-theorized whether and how organizations’ disaster communication messages may embody dialogic communication principles, and how various dialogic features are associated with different public engagement outcomes on social media. Extending the Organization-Public Dialogic Communication (OPDC) framework to the context of social media-mediated disaster communication, we propose a multi-level framework to assess the dialogic capacity of Facebook messages sent by disaster management organizations during a natural disaster. Three levels of dialogic communication characteristics (i.e., message structure-level, topic-level, and linguistic level) are examined using content analysis and Linguistic Inquiry and Word Count (LIWC). Results identified media richness, correcting, and confirming topics as three consistent predictors of public engagement of all types. Meanwhile, there exhibit greater variations regarding how other topical features and linguistic characteristics are related to public’s cognitive, emotional, and behavioral engagement during a disaster.     

The coevolution of trade agreements and investment treaties: Some evidence from network analysis

Regional trade agreements (RTAs) and bilateral investment treaties (BITs) are expected to promote trade and investment relationships. One critical feature of such agreements is the network, so the multiplex coevolution of RTAs and BITs should be captured by the dynamics of their two networks. Although many studies have examined the roles of RTAs and BITs, most studies do not account for crucial network properties. This study explores how RTAs and BITs coevolve by applying a stochastic actor-oriented model of multiplex network evolution. In particular, we examine the roles of (i) cross-network dyadic interinfluences and (ii) within- and cross-network preferential attachments to discuss the dynamic relationships between RTAs and BITs. The results are as follows. First, our estimation supports cross-network dyadic interinfluences. Countries that sign a BIT are willing to establish an RTA, while those that sign an RTA are reluctant to establish a BIT. Second, concerning preferential attachments, countries prefer to sign BITs with partners that have more RTA and BIT links. However, countries tend to form RTAs with partners that have more BIT links but are reluctant to form RTAs with those that have more RTA links. We discuss possible justifications for these results, including arguments regarding the benefits and costs associated with the formation of RTAs and BITs.     

Financial frictions and indebtedness of Balkan firms: A comparison with Mediterranean and Central European countries

Using a large database of financial data for non-financial corporations, we study the process of debt accumulation and its influence on liquidity through the boom-bust-recovery regimes (2006–2010) in the Balkan countries and benchmark this against the Mediterranean and Central European countries. The domestic amplification effects (through the financial accelerator and collateral pricing) of both the capital surge from developed EU countries at the onset of the crisis and the capital reversal afterwards are the focus of the analysis. We show that domestic generators and amplificators of the crisis have much larger effects in the Balkan countries than in the Mediterranean countries, not to mention the countries of Central Europe. In the boom period, the financial accelerator was several times stronger in the Balkan countries than in the Mediterranean and Central European countries. In the bust and recovery periods, however, the direct effects of the financial accelerator declined, but the indirect effects increased considerably due to liquidity squeezes and contagion, especially strong were corresponding intercompany debt effects. In the Balkan countries, these effects in the bust and recovery periods were at least 50% larger than in the Mediterranean and Central European countries. Higher crisis costs in the Balkan countries, relative to the benchmark regions, could be attributed to the late integration of these economies into international financial and trade flows, weak institutions of financial intermediation, and inexperienced regulators; however, the importance of the contribution of misguided EU convergence doctrine cannot be ignored. Lessons for improving macromanagement in EU periphery countries are suggested.     

Do rich teens get richer? Facebook use and the link between offline and online social capital among Palestinian youth in Israel

Studies have shown that using social networking sites contributes to social capital. This study investigated the association between specific features of Facebook and online social capital. Two contrasting hypothesis were tested. The first posits that the rich get richer, meaning that the creation of social capital online reflects the stock of offline resources already available. In contrast, the compensation hypothesis argues that disadvantaged ethnic minorities are more likely to use social media to compensate for their lack of social capital offline. We tested these two theories among a representative sample of Palestinian teenagers (N?=?567). While we found no gender differences in the use of Facebook’s features, our results highlight the positive correlation between the use of active and passive communication features and perceived social capital online. Moreover, the results support the rich-get-richer model; in that, even among this socially disadvantaged group, the youngsters who already had a store of social capital offline benefitted more from using Facebook.