Governance & Leadership

Pay Transparency Doesn’t Lower Productivity—But Individual Responses Illuminate Workers’ Sense of What’s Fair

When companies go public with salary information, the average productivity of their employees does not decline. But small shifts in work output are highly individualized, and they may reflect workers’ responses to how closely they feel their efforts align with the pay.

How media coverage of corporate social irresponsibility increases financial risk

This article examines the effect of negative news on financial risk. It shows that negative media articles regarding environmental, social, and governance (ESG ) issues increase a firm’s credit risk.…

Competitive repertoire complexity: Governance antecedents and performance

In boxing, the fight does not always go to the bigger or stronger person, or even to whomever throws the most punches—the fight is sometimes won by the boxer who…

From proprietary to collective governance

As firms consider transitioning proprietary products to more open platforms to grow market share and relevance, we suggest that managers consider the concerns of external participants when designing a system…

Time and Space in Strategy Discourse: Implications for Intertemporal Choice

Executives often prioritize maximizing immediate returns over investing to build a long‐term competitive advantage. How they think about the future offers one explanation for this short‐termism. This article distinguishes two…

The Dark Side of Institutional Intermediaries

Investors and entrepreneurs face uncertainty when deciding what firms to start and fund. We show that an intermediation effort to make entry easier for entrepreneurs increases the uncertainty that entrepreneurs…

TMT Faultlines and Strategic Change: What Role Does Environmental Dynamism Play?

Top management teams (TMTs) in firms can fracture into subgroups based on demographic characteristics (e.g., age, gender, and education level) as well as based on task‐related characteristics (e.g., functional background,…

Right on the Money?

We study how the optimal configuration of the overall pay system differs between firms that pursue growth‐oriented and efficiency‐oriented strategies. Our results show that growth‐oriented firms (prospectors) benefit from pay…

Connelly, Ketchen, Gangloff, & Shook on investor reactions to firing CEOs

Business headlines regularly feature episodes of organizational misconduct, such as product safety problems, environmental violations, employee mistreatment, and securities lawsuits, and their aftermath. In such scenarios, shareholders demand answers from…

Flammer & Bansal, Does a Long-Term Orientation Create Value?

This paper shows that corporate short-termism is hampering business success. We show clear, causal evidence that imposing long-term incentives on executives—in the form of long-term executive compensation—improves business performance. Long-term…

Governance & Leadership

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