Leaders' and subordinates' attachment orientations,emotion regulation capabilities and affect at work: A multilevel analysis

Two studies examined relationships between leaders' and subordinates' attachment orientations, emotion regulation capabilities, and affective experience and satisfaction at work. As expected, supervisors' and subordinates' insecure attachment orientations (higher anxiety and avoidance) were associated with own positive affect and satisfaction at work. Supervisors' anxious attachment orientation was associated with subordinates' lower positive affect and satisfaction at work. Contrary to hypotheses, supervisors' higher avoidance was associated with subordinates' lower negative affect and higher job satisfaction. Supervisors' emotion regulation capabilities did not mediate relationships between supervisors' insecure attachment orientations and supervisors' own or subordinates' affect and job satisfaction as expected. However, subordinates' emotion regulation capabilities interacted with supervisors' attachment orientations to predict subordinates' emotion experience at work. The results contribute to an understanding of attachment orientations' emotion dynamics in leader–follower interaction, pointing in particular to perceptual and affect-related processes at different levels of analysis.     

HOW DOES PRODUCT MARKET COMPETITION SHAPE INCENTIVE CONTRACTS?

This paper studies the effect of product market competition on the explicit compensation packages that firms offer to their CEOs, executives and workers. We use a large sample of both traded and nontraded UK firms and exploit a quasi‐natural experiment associated to an increase in competition. The sudden appreciation of the pound in 1996 implied different changes in competition for sectors with different degrees of openness. Our difference in differences estimates show that a higher level of product market competition increases the performance pay sensitivity of compensation schemes, in particular for executives. (JEL: J33, L20, G34)     

Managing Uncertainty through Profit Sharing Contracts from Medieval Italy to Silicon Valley

Organizational innovation is essential to economic development. But, the way successful societies have organized new ventures has been remarkably similar in both past and present. The commenda organizations of medieval Italy shared many characteristics with modern startups that are financed by venture capital. Profit share contracts; limited liability and periodic reevaluations are cases in point. Agency contracts in both types of ventures are designed to absorb the high uncertainty inherent to these enterprises through risk sharing. Uncertainty prohibits a unique ex ante ranking order of investment projects and prompts investors to look for hidden human capital. Equity finance is better equipped to even out unexpected losses and gains that are inherent to uncertainty than debt finance.     

Reciprocal relationships between psychosocial work characteristics and sleep problems: A two-wave study

Sleep problems are common and impair the health and productivity of employees. Work characteristics constitute one possible cause of sleep problems, and sleeping poorly might influence wellbeing and performance at work. This study examines the reciprocal associations between sleep problems and psychosocial work characteristics. The participants were 1744 full-time employed individuals (56% women; mean age 38 years in 2007) from the Young Finns study who responded to questionnaires on work characteristics (conceptualised by the demand–control model and effort–reward imbalance model) and sleep problems (Jenkins Sleep Scale) in 2007 and 2012. Cross-lagged structural equation models are used to examine the associations. The results show that low control and low rewards at baseline predicted sleep problems. Baseline sleep problems predicted higher effort, higher effort–reward imbalance, and lower reward. Sleep problems also predicted lower odds for belonging to the low (rather than high) job strain group and active jobs group. The association between work characteristics and sleep problems appears to be reciprocal, with a stressful work environment increasing sleep problems, and sleep problems influencing future work characteristics. The results emphasise the importance of interventions aimed at both enhancing sleep quality and reducing psychosocial risks at work.     

Effort Observability,Incentive Systems,and Organizational Forms

This paper analyses the choice between a centralized and a decentralized organizational structure focusing on the relationship existing between the allocation of decision rights, the degree of observability of effort and the use of different compensation systems. Profitable production is realized thanks to good information being available during the project selection stage and hard work being performed in the implementation stage. Selection of projects may be made by the principal (hierarchy) or by the agent (delegation). Under the hierarchical system, the principal's participation in the design of projects allows her to gather useful information for the design of a more accurate compensation system. Therefore, we analyse the trade‐off between optimal use of available information and accuracy of incentive systems, which emerges in the choice of organizational form.     

‘Female Heroes’: Celebrity Executives as Postfeminist Role Models

This paper explores the significance of contemporary celebrity businesswomen as role models for women aspiring to leadership in business. We explore the kind of gendered ideals they model and promote to women through their autobiographical narratives, and analyse how these ideals map against a contemporary postfeminist sensibility to further understand the potential of these role models to redress the under‐representation of women in management and leadership. Our findings show that celebrity businesswomen present a role model that we call the ‘female hero’, a figure characterized by 3Cs: confidence to jump over gendered barriers; control in managing these barriers; and courage to push through them. We argue that the ‘female hero’ role model is deeply embedded in the contemporary postfeminist sensibility; it offers exclusively individualized solutions to inequality by calling on women to change themselves to succeed, and therefore has limited capacity to challenge the current gendered status quo in management and leadership. The paper contributes to current literature on role models by generating a more differentiated and socially situated understanding of distant female role models in business and extending our understanding of their potential to generate sustainable and long‐term change in advancing gendered change in management and leadership.     

Special issue on “The role of intellectual capital and integrated reporting in management and governance: a performative perspective”

Journal of Management and Governance -     

M&A and diversification strategies: what effect on quality of inventive activity?

Journal of Management and Governance - The aim of this paper is to examine how an acquirer’s diversification strategy shapes the multiple dimensions of inventive activity. Differing from...     

On the relationship between compliance with recommendations on the audit committee of codes of good practices and financial reporting quality

Codes of good practices provide a soft alternative to the hard legislation approach to corporate governance. These codes include a set of recommendations that companies are expected to follow in order to enhance governance structures and practices. Some of these recommendations specifically aim to improve the effectiveness of the audit committee. We investigate the relationship between the level of compliance with recommendations on the audit committee of the Spanish Unified Code and financial reporting quality, as measured by discretionary accruals and by the opinion of the audit report. We use a sample of companies listed in the Spanish stock market for the years between 2007 and 2013. Results show a strong and positive relationship between the level of compliance with recommendations and the quality of financial reporting. We also report significant results for some specific recommendations. These results are robust to various checks. Therefore, the level of compliance with recommendations on the audit committee might provide a feasible and reliable indicator of the quality of financial reports released by the company.