Entrenchment in publicly traded family firms: Evidence from the S&P 500

Family involvement in corporate governance through ownership, management, and board membership presents a unique dilemma for understanding the strategic impetus and costs of entrenchment decisions. The presence of shared family ties and the family-centered goals of firm principals call to question the applicability of extant agency arguments regarding the nature and antecedents of managerial entrenchment. Exploring this, we develop and test a model of family firm-specific determinants (i.e., family ownership and family's involvement in management and governance) of entrenchment in publicly traded firms by drawing upon principal-principal agency theory. Findings of the empirical analysis of family owned S&P 500 firms suggest family firms are motivated to entrench managers when doing so supports the pursuit of family-centric goals. However, the extent to which entrenchment supports such goals varies at different levels of family ownership.     

Leader-member exchange as a linking pin in the idiosyncratic deals - Performance relationship in workgroups

In the current investigation, idiosyncratic deals (i-deals; individualized work arrangements) are modeled as differentiated resources that shape leader-member exchange (LMX) relationships in workgroups. We integrate literature on leader-member exchange (LMX) with research on i-deals to argue that employee evaluations of i-deals received from the grantor –typically the leader- enhance employee perceptions of LMX, which in turn become instrumental in generating positive performance outcomes. Furthermore, because workgroup characteristics have potential implications on the relationship between a deal grantor and the deal recipient, drawing upon social identity theory of leadership, we reason that the i-deals-LMX relationship is affected by the overall value congruence among the group members. Cross-level moderated mediation analyses on multi source data obtained from 289 employees nested in 60 workgroups showed that the mediational role of LMX in the i-deals to performance outcomes relationship was weaker in high value congruence groups.     

Perceived managerial and leadership effectiveness within a Moroccan Higher Education Institution

The purpose of this research was to determine what behaviourally distinguishes effective and ineffective managers within a Moroccan Higher Education Institution (HEI). The critical incident technique (CIT) was the methodology deployed to collect data from participants in terms of how they perceive managers as either effective or ineffective. The collected data (CIs) were subjected to content and thematic analysis that resulted in derived positive and negative behavioural statements (BSs). A total of 42 participants/informants were interviewed and revealed a total of 418 CIs, of which 189 were positive CIs and 229 were negative. The analysis revealed a total of 49 BSs, of which 19 were positive and 30 were negative behavioural indicators. The findings of this investigation bring empirical evidence to understand what and how managers are perceived as effective or ineffective in the Moroccan academic context and, therefore, adds to the literature. The information obtained can also provide rich information/knowledge that can be used as a basis to address the behavioural developmental needs of managers in HEIs. This research adds value by following by following two previous replication studies in a French and a Hungarian HEI; moreover, this study is the first to be conducted in the Moroccan/North African region.     

Maternal Employment,Community Contexts,and the Child‐Care Arrangements of Diverse Groups

Integrating family and child data from the Early Childhood Longitudinal Study–Birth Cohort with contextual data from the census, this study examined associations among maternal employment, aspects of communities related to child‐care supply and demand, and the early care and education arrangements of 4 year olds in Mexican‐origin, Black, and White families. Children with employed mothers were more likely to be in informal care arrangements than in early childhood education, regardless of racial/ethnic background. For children in Mexican‐origin families, selection into informal care over early childhood education was more likely in zip codes with greater demand for care as measured by higher female employment. Utilization of parent care versus early childhood education was also more likely for children in Mexican‐origin and Black families in zip codes with higher female employment. Constraints associated with maternal employment thus hindered children from enrolling in early childhood education, and community contexts posed challenges for some groups.     

Covariance-regularized regression and classification for high dimensional problems

Summary.  We propose covariance-regularized regression, a family of methods for prediction in high dimensional settings that uses a shrunken estimate of the inverse covariance matrix of the features to achieve superior prediction. An estimate of the inverse covariance matrix is obtained by maximizing the log-likelihood of the data, under a multivariate normal model, subject to a penalty; it is then used to estimate coefficients for the regression of the response onto the features. We show that ridge regression, the lasso and the elastic net are special cases of covariance-regularized regression, and we demonstrate that certain previously unexplored forms of covariance-regularized regression can outperform existing methods in a range of situations. The covariance-regularized regression framework is extended to generalized linear models and linear discriminant analysis, and is used to analyse gene expression data sets with multiple class and survival outcomes.     

Reports of Conferences,Institutes, and Seminars

This installment of "Serials Spoken Here" covers events that transpired between late September and late October 2008. Reported herein are two Webinars, one on ONIX for Serials, the other on SUSHI, and two conferences: the eighty-fourth annual Meeting of the Potomac Technical Processing Librarians and the New England Library Association's Annual Conference.     

Asymptotic distributions for the intervals estimators of the extremal index and the cluster-size probabilities

Under appropriate long range dependence conditions, the point process of exceedances of a stationary sequence weakly converges to a homogeneous compound Poisson point process. This limiting point process can be characterized by the extremal index and the cluster-size probabilities. In this paper we address the problem of estimating these quantities and we consider the intervals estimators introduced in Ferro and Segers [2003. Inference for clusters of extreme values. J. Roy. Statist. Soc. Ser. B 545–556] and in Ferro [2004. Statistical methods for clusters of extreme values. Ph.D. Thesis, Lancaster University]. We establish asymptotic weak convergence to Gaussian random variables and we give their asymptotic variance.     

Social Background Differences in Early Family Behavior

Social background has historically been recognized as a major factor influencing family behavior, though recent work has largely emphasized racial/ethnic influences. Here we use 1994 – 1995 and 2001 – 2002 Add Health data to examine the cohabitation, first marriage, and first birth experience of young women. In a multistate life table context, hypothetical cohorts specified in terms of race and mother’s education are followed, from age 11 to age 24, as they move through 6 family‐related statuses. The results indicate that, for both Black and White women, a higher level of maternal education is generally associated with less cohabitation, less marriage, fewer first births, and a higher percentage of women who experience none of those transitions before age 24. Racial and social background differences are conceptually and empirically distinct. Because mother’s education is associated with substantially different trajectories of early family behavior for both Blacks and Whites, we argue that social background merits increased attention in research on contemporary American family patterns.     

The NIP graph of a social welfare function

We consider the fraction of pairs of m distinct alternatives on which a social welfare function f may be nondictatorially independent and Pareto when the domain of f satisfies the free k-tuple property. When k = 4 we improve the existing upper bound to . When there are at least 26 alternatives and we obtain an original upper bound, . To obtain these results we define and analyze the graph formed from the nondictatorial independent and Pareto pairs and combine the results of this analysis with known results from extremal graph theory. The authors extend special thanks to the two reviewers and the editor for their comments.     

Social Cognitive Predictors of the Career Goals of Korean American Students

Limited empirical study of the career development of Asian Americans in general and Korean Americans in particular has been conducted. The authors present the results of a theory‐based exploration of the career goals of Korean American university students in which ethnic identity, self‐efficacy, outcome expectations, and career interests were used to predict goal intentions for science and nonscience careers. Outcome expectations and career interests predicted a moderate amount of variance in science career goal intentions and a moderate to large amount of variance in nonscience career goal intentions. Korean American students' career goal development seems similar to that of American college students.