Does Cultural Difference Affect Investment–Cash Flow Sensitivity? Evidence from OECD Countries

We investigate the influence of national culture on corporate investment–cash flow sensitivity. We conjecture that national culture shapes managerial perceptions of information asymmetry and agency problems, thus impacting the investment–cash flow relationship. We document empirical evidence in support of our claim. By linking the investment–cash flow sensitivity to cultural differences, our findings show that, while collectivism has an attenuating influence, uncertainty avoidance, power distance and masculinity have a reinforcing effect on the relationship between cash flow and investment. Our results hold for a sample of 205,268 firm‐years across 24 OECD countries between 1990 and 2017, and are robust after accounting for alternative statistical approaches, sample compositions and measures of cultural dimensions, along with controls for institutional and governmental factors. In addition, by decomposing cash flow into uses and sources of funds in a dynamic multi‐equation model, where firms make financing and investment decisions jointly subject to the constraint that sources must equal uses of cash, we find that national culture shapes how firms react to changes in cash flow.     

New Venture Survival: A Review and Extension

This paper provides an evaluative overview of the new venture survival literature. Since Stinchcombe's primary attempt to explain the mortality rates of new ventures, different research fields, including entrepreneurship, management and sociology, have devoted considerable attention to the antecedents of new venture survival. Despite this lively research commitment, a comprehensive review of the literature on new venture survival – as one of the most essential performance measures for new ventures – is missing. Covering 54 years of research, this paper provides an overview of the factors affecting new venture survival and highlights important methodological aspects in this research field. The review concludes by discussing opportunities for future research.     

From Intended to Actual and Beyond: A Cross‐Disciplinary View of (Human Resource Management) Implementation

Despite increasing interest in human resource management (HRM) implementation as an explanation for the association between HRM and firm performance, considerable confusion remains about what implementation means. In order to develop conceptual definitions of HRM implementation and implementation effectiveness, this study builds on three different literatures outside the HRM field (strategy, innovation, and change management), which have addressed this topic extensively. As a result, implementation is characterized as a dynamic process, involving the interaction among multiple actors, starting with the adoption of a new practice and ending with its routinization. This is distinguished from implementation effectiveness as an outcome of that process. The study helps to achieve construct clarity, hence providing a more solid basis for future research and allowing for a better consolidation of findings. The authors also develop an agenda for further research by reviewing a number of theoretical and methodological approaches that have been used in implementation research across fields, including HRM. Overall, the study aims to establish implementation research as a highly relevant academic and practical quest not only in HRM, but also in other management literatures.     

Selection bias for treatments with positive Phase 2 results

In drug development, treatments are most often selected at Phase 2 for further development when an initial trial of a new treatment produces a result that is considered positive. This selection due to a positive result means, however, that an estimator of the treatment effect, which does not take account of the selection is likely to over‐estimate the true treatment effect (ie, will be biased). This bias can be large and researchers may face a disappointingly lower estimated treatment effect in further trials. In this paper, we review a number of methods that have been proposed to correct for this bias and introduce three new methods. We present results from applying the various methods to two examples and consider extensions of the examples. We assess the methods with respect to bias of estimation of the treatment effect and compare the probabilities that a bias‐corrected treatment effect estimate will exceed a decision threshold. Following previous work, we also compare average power for the situation where a Phase 3 trial is launched given that the bias‐corrected observed Phase 2 treatment effect exceeds a launch threshold. Finally, we discuss our findings and potential application of the bias correction methods.     

Rethinking craft administration: Managerial position,work autonomy,and employment security in the building trades

The organization of work in the construction industry often has been presented as the exemplar of craft administration wherein managerial positions are of relatively low significance. Occupational control of employment and work structure in this context presumably is manifest through the craft union. On the other hand, research on other industries has shown the managerial position in the firm to be a source of extrinsic and intrinsic reward. This results from the manager's pivotal position in the bureaucratized labor process. This paper seeks to reconcile these perspectives. Data from a survey of 246 unionized construction workers and 14 local union officers from nine building trades are used to assess the impact of the managerial position and union involvement on work autonomy (self-direction and freedom from supervision) and employment security (unemployment and trade agreement infringements). In general, the results indicate that managerial affiliations to employers' firms are associated with greater autonomy and more employment security. Union involvement has contradictory consequences for individual tradespeople.     

Label‐ and Level‐Invariant Graphical Log‐Linear Models

We introduce two types of graphical log‐linear models: label‐ and level‐invariant models for triangle‐free graphs. These models generalise symmetry concepts in graphical log‐linear models and provide a tool with which to model symmetry in the discrete case. A label‐invariant model is category‐invariant and is preserved after permuting some of the vertices according to transformations that maintain the graph, whereas a level‐invariant model equates expected frequencies according to a given set of permutations. These new models can both be seen as instances of a new type of graphical log‐linear model termed the restricted graphical log‐linear model, or RGLL, in which equality restrictions on subsets of main effects and first‐order interactions are imposed. Their likelihood equations and graphical representation can be obtained from those derived for the RGLL models.     

Statutory leave entitlements across developed countries: Why US workers lose out on work–family balance

Using a composite index of legal provisions for annual and family leave in western Europe, the United States, Canada, Australia, Japan and the Republic of Korea, the authors rank legislative support for this aspect of work–family balance. The United States ranks last: its employers are not required to grant annual leave and employees can take no more than 12 weeks' family leave per year. The United States' comparatively low labour standards, the authors argue, may be due to the dominance of a market‐based conception of employment and the assumption of equal employer–employee bargaining power, neither of which is fully shared by the other industrialized democracies.     

LENDING RELATIONSHIPS AND MONETARY POLICY

Financial intermediation and bank spreads are the important elements in the analysis of business cycle transmission and monetary policy. We present a simple framework that introduces lending relationships, a relevant feature of financial intermediation that has been so far neglected in the monetary economics literature, into a dynamic stochastic general equilibrium model with staggered prices and cost channels. Our main findings are (a) banking spreads move countercyclically generating amplified output responses, (b) spread movements are important for monetary policymaking even when a standard Taylor Rule is employed, (c) modifying the policy rule to include a banking spread adjustment improves stabilization of shocks and increases welfare when compared to rules that only respond to output gap and inflation, and finally (d) the presence of strong lending relationships in the banking sector can lead to indeterminacy of equilibrium forcing the Central Bank to react to spread movements. (JEL E44, E52, G21)     

Toward Mutual Support: A Task Analysis of the Relational Justice Approach to Infidelity

Gender, culture, and power issues are intrinsic to the etiology of infidelity, but the clinical literature offers little guidance on how to work with these concerns. The Relational Justice Approach (RJA) to infidelity (Williams, Family Process, 2011, 50, 516) uniquely places gender and power issues at the heart of clinical change; however, this approach has not been systematically studied. Therefore a qualitative task analysis was utilized to understand how change occurs in RJA. The findings indicated four necessary tasks: (a) creating an equitable foundation for healing, (b) creating space for alternate gender discourse, (c) pursuing relational responsibility of powerful partner, and (d) new experience of mutual support. Therapists' attention to power dynamics that organize couple relationships, leadership in intervening in power processes, and socio‐cultural attunement to gender discourses were foundational to this work. These findings help clarify the processes by which mutual healing from the trauma of infidelity may occur and offer empirically based actions that therapists can take to facilitate mutual support.