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We show that chief executive officers (CEOs) exhibit a hometown bias in acquisitions. Firms are over twice as likely to acquire targets located in the states of their CEOs' childhood homes than similar targets domiciled elsewhere. Small, private home-state deals underperform other small, private deals, and the bias is stronger when acquirer governance is lax, suggesting that CEOs acquire private home-state targets for their own benefits. In contrast, large, public home-state acquisitions are value enhancing. CEOs create value in public home-state acquisitions by avoiding extremely poor deals and through deals with higher synergies. Thus, both agency issues and hometown advantages drive home-state acquisitions. [ABSTRACT FROM AUTHOR]

This paper analyses how the legal consciousness of Chinese enterprise managers has transformed in the face of drastic changes brought along by major events in socialist China. During the past 70 years, there have been in place a series of radical and pervasive changes in the legal framework constituted by a communist system frequented by mass political campaigns, trailed by a massive liberalized move towards a market economy. By building upon the thesis of legal-consciousness narratives suggested by Ewick and Silbey, this paper discusses how Chinese managers have evolved through various states of "With the Law," "Against the Law," and "Under the Law" legal consciousness. It is suggested that, in the coming era of globalization under socialist China, Chinese enterprise managers may start to embrace a new narrative of legal consciousness—"In the Law"—by participating more actively in the socialist system with Chinese characteristics. [ABSTRACT FROM AUTHOR]

Objective: Code-switching is when bilingual individuals alternate between two languages in the same conversation. Some studies find that code-switching frequency is associated with executive functioning, while others do not. Individual attitudes towards bilingual language use and code-switching may explain the inconsistency in the literature. For instance, greater positive attitudes towards code-switching may be associated with more likelihood to engage in that practice and thus strengthen the cognitive benefit in executive function. Additionally, code-switching between English and Spanish has been stigmatized in the U.S., therefore it is unclear what sociocultural factors may predict positive attitudes. In this study, we assessed Latinx bilinguals' attitudes on code-switching and investigated their relationship with code-switching frequency, sociodemographic and linguistic factors, and executive functioning. Participants and Methods: Participants were 525 community-dwelling English-Spanish bilingual Latinx adults from the Offspring study (Mage= 55.38 (10.42); Meducation= 12.62 (3.34); 71% women; 41% tested in English, 75% immigrant). A language history questionnaire assessed for bilingualism and code-switching frequency. Participants completed 7 questions on code-switching attitudes on a 7-point Likert scale ranging from Strongly Disagree to Strongly Agree (e.g., "switching between languages in a conversation is an important part of my identity"), that were summed for a total score with higher scores indicating more positive attitudes. Executive functioning was assessed with the NIH Toolbox Cognition battery, verbal fluencies, and the digit span test. Sociodemographic and linguistic factors included age, sex, education, immigrant status, parental years of education, English and Spanish proficiency (average score on self-reported ratings on speaking, reading, writing, and understanding), and testing language. General linear models evaluated the association of code-switching attitudes on executive function, after adjusting for relevant covariates. Results: Positive code-switching attitudes were correlated with greater code-switching, r(499)=.33, p<.001. Younger age r(499)=-.11, being born in the US t(493)=-2.05, greater English proficiency r(497)=.15, and English dominance t(499)=2.22, were associated with more positive code-switching attitudes (all p's <.05). Sex, education, parental years of education, and Spanish proficiency were not associated with code-switching attitudes. Overall models of attitudes with executive function indicated that positive code-switching attitudes were associated with worse visual working memory (b = -0.08, t(169) = -2.75, 95% CI [0.14, -0.02]) after adjusting for age, sex, education, immigration status, parental years of education and testing language. Code-switching attitudes were not significantly associated with other executive function measures. Conclusions: Among a community-based sample of bilingual middle-aged Latinx adults, positive attitudes towards code-switching were associated with greater likelihood of code-switching in conversations, higher English proficiency, being US born, younger age, and English language dominance but negatively associated with visual working memory. These findings indicate that code-switching attitudes are influenced by sociodemographic and linguistic factors. Additionally, the negative association between code-switching attitudes and visual working memory provides support for previous studies showing code-switching as a disadvantage to cognition. Results of this study suggest that detailed characterization of sociocultural factors and aspects of bilingualism can provide further clarity in determining if there is a potential bilingual cognitive advantage. Future research should examine the relationship of code-switching with other aspects of bilingualism (e.g., age of acquisition). [ABSTRACT FROM AUTHOR]

We investigate the risk choices of risk-averse CEOs. Following recent theoretical work, we expect CEO risk aversion to be more pronounced in firms with high leverage or high default probability. We find that the CEOs of these firms reduce firm risk, even in the presence of strong risk-taking incentives. Our results are robust to controls for the sensitivity of CEO wealth to stock price changes, firm risk determinants, the endogenous feedback effects of firm risk on CEO incentives, unobserved firm and market effects, and debt governance. The impact of CEO risk aversion is economically significant. [ABSTRACT FROM PUBLISHER]

We develop the concept of stakeholder salience to account for stakeholders who should matter to the firm, even when managers do not perceive them as important. While managers are responsible for attributing salience to stakeholders, they can overlook or ignore stakeholder importance because of market frictions that affect managerial perceptions or induce opportunism. When this happens, corporate financial and social performance can suffer. Thus, we propose that the perceptions of organizational and societal stakeholders should also codetermine the salience of the focal stakeholder to the firm. We also propose that stakeholder dialogue can reduce the impacts that market frictions can have on managerial perceptions of stakeholder interests that should matter to the firm. Finally, we discuss how the refined conceptualization of stakeholder salience might have better predictive validity, be more normative, and make instrumental and normative stakeholder theory more convergent. [ABSTRACT FROM AUTHOR]

With manufacturers seeking investment opportunities in Africa, it is timely to explore the interaction of advanced manufacturing technology (AMT) and human resource management approaches there. Because research elsewhere suggests that the effects of the interaction differ across national boundaries, we investigated empowerment approaches and AMT utilisation in Nigeria and New Zealand. Using operational-level survey data from 153 manufacturing managers/CEOs in both countries, we explored the role of national culture on managerial attitudes towards employee empowerment during AMT adoption. Drawing on Hofstede's cultural dimensions, our results suggest that the observed differences in AMT–empowerment interface are attributable to different national values. The results specifically indicated that during AMT adoption, New Zealand's liberal culture encourages managers to empower employees more than does Nigeria's authoritarian one. The results would particularly assist practitioners to recognise the traditional/conservative nature of African values when practicing HR in a country like Nigeria. [ABSTRACT FROM AUTHOR]

Museums are organizations that need to maintain relationships with several stakeholders in order to achieve their economic and social objectives. In this context, the current paper explores the effect of an organization's bonding social capital and a manager's social capital on the organization's ability to build external relationships, in other words, bridging social capital. Results from the study indicate that the structure of internal social capital (cohesion and diversity) and the manager's role as a bridging tie facilitate relations with stakeholders and other museum networks. Moreover, collective social capital (bonding and bridging) has a direct impact on innovative proposals, on the museum's image and on incomes, all of which entail key management implications. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to explore how middle managers respond when an existing institutional logic is reinforced through radical organisational change. We analyse documents and interviews with middle managers in three public sector contexts (hospitals, upper secondary schools, municipal agencies) in which the power balance between the managerial and professional logics changed through mergers. Contrary to expectations from previous research, we found a variety of responses across contexts. Our data suggest that the middle managers chose whether to acknowledge available information about the managerial logic, and that they either accepted or rejected the new power balance between the logics. There were two different ways of accepting the new power balance: by showing loyalty or through resignation. Its rejection took the form of strategically adhering to the managerial logic as a novice, even though a middle manager was, or should have been, familiar with this logic. [ABSTRACT FROM AUTHOR]

The relationship between ethics and economics has never been easy. Opponents in a tug of war, friends in a warm embrace, ships passing in the night--the relationship has been highly variable. In recent years, the friendship model has been gaining credence, particularly among U.S. corporate executives. Increasingly, companies are launching ethics programs, values initiatives, and community involvement activities premised on management's belief that "Ethics pays." [ABSTRACT FROM AUTHOR]

Among the possible consequences of agency problems between corporate owners and managers is a tendency by managers to make investment decisions for their firms that are deliberately aimed at reducing firm risk, as a means to control managers' personal wealth risk. The literature has suggested that such behavior may occur to the detriment of shareholder wealth, and that mergers may be a particular class of investment decisions for which the behavior would be observable. We test these hypotheses empirically, but find no evidence from our merger sample that risk reduction for the acquiring firm is the typical outcome nor that, when it occurs, it is differentially costly for shareholders. [ABSTRACT FROM AUTHOR]

The problems of agency and informational asymmetry are jointly examined in this paper. Agency costs, which are associated with consumption of perquisites by the entrepreneur who retains control of the firm, are minimized through an appropriate financing package offered by the manager. This package specifies not only the fractional equity ownership of the firm by the manager, but also his positions in call and put options on the firm. In designing the package the entrepreneur's holdings of the securities of other firms are explicitly considered. While agency costs are minimized, they exist under an optimal solution even if the financial package is specified so as to restore the manager's cost of perk consumption to that of a sole owner. This is true because the entrepreneur loses the opportunity to diversity by holding his side of the financial package. If the entrepreneur faces the additional problem of informational asymmetry, the financing package which minimizes agency costs may not minimize the costs associated with antiquity in signaling. The paper suggests a methodology for a joint solution to these problems in a utility theoretic framework. Again, even an optimal solution is not costless because it entails a tradeoff between agency and signaling costs. It is also argued that, with the existence of many indistinguishable firms, the optimal solution may not necessarily signal to the market the exact nature of the firm's risk class. The financing package which emerges through the process of resolving informational asymmetry and agency problems is a complex mix of straight debt, equity, and stock options. Thus, our work may provide a rationale for the existence of complex capital structures observed in the real world. The complexity of capital structures actually observed may derive from repeated attempts by firms to signal out to new capital contributors, the nature of the distribution of returns for the projects being financed. [ABSTRACT FROM AUTHOR]

The article emphasizes the importance of employee reactions in the performance appraisal process for organizational employees in the U.S. as of June 2016. Topics discussed include the importance of a manager's use of appropriate language particularly when delivering performance appraisal ratings, understanding reactions to performance appraisal systems, and the value of reactions in the management and improvement of employee performance.

The existing literature in public policy has commented mostly on mature and established businesses, leaving the relationships between entrepreneurial businesses and public policies less explored. Relying on qualitative research methods and quantitative surveys, we examine how managers in an intensively regulated entrepreneurial setting assessed the desirability of public policies. We show that managers in the regulated energy efficiency and renewable (EERE) business sector in the 1990s tended to view public policies favorably only if they lacked control over the business environment. The less control they perceived they had over the business environment, the more favorably they tended to view public policies. Our findings suggest that managers in a regulated entrepreneurial setting tend to view public policies as substitutes for their efforts to control their business environment, not as complements, as studies of mature and established companies in regulated settings commonly find. However, we also find some evidence to suggest these perceptions may evolve, as a business experiences greater success attracting customers. [ABSTRACT FROM AUTHOR]

The article focuses on the role played by managers' mindsets in enabling employee potential to emerge and be identified. It explores the ways in which consideration of the mindsets may enrich theorizing, research and practice aimed at enabling potential. It is said that managers' mindsets hold about the plasticity of the personal attributes that guide human behavior.

The article discusses the issues regarding the politics of corporate governance in Great Britain. According to the author, there are several issues related to corporate governance including the structure and functioning of boards of directors, reporting to shareholders and the ways in which shareholders use their power. However, the discussion and debate on corporate governance issues which bear upon business performance and cultural factors have received less attention and is confined only in a limited circle.