The Executive Turnover Risk Premium

We establish that CEOs of companies experiencing volatile industry conditions are more likely to be dismissed. At the same time, accounting for various other factors, industry risk is unlikely to be associated with CEO compensation other than through dismissal risk. Using this identification strategy, we document that CEO turnover risk is significantly positively associated with compensation. This finding is important because job‐risk‐compensating wage differentials arise naturally in competitive labor markets. By contrast, the evidence rejects an entrenchment model according to which powerful CEOs have lower job risk and at the same time secure higher compensation.     

Constructing Density Forecasts from Quantile Regressions

The departure from the traditional concern with the central tendency is in line with the increasing recognition that an assessment of the degree of uncertainty surrounding a point forecast is indispensable ( Clements 2004 ). We propose an econometric model to estimate the conditional density without relying on assumptions about the parametric form of the conditional distribution of the target variable. The methodology is applied to the U.S. unemployment rate and the survey of professional forecasts. Specification tests based on Koenker and Xiao (2002) and Gaglianone et al. (2011) indicate that our approach correctly approximates the true conditional density.     

The Moderating Effect of Seasonality on Household Apparel Expenditure

This research explores if and how seasonality moderates the effect of consumer characteristics on household per capita expenditure for apparel. The Ordinary Least Squares (OLS) regression analysis was based on quarterly micropanel data from the Continuing Consumer Expenditure Survey. The results confirmed that seasonality moderates the relationship between consumer characteristics and per capita apparel expenditure: the income elasticity of apparel expenditure varied by season as did the effects of age, ethnicity, household size, region, and housing tenure.     

Gender roles and sports in adolescent girls

Lack of leisure and time to self have been found to be major stressors for mothers. This paper examines perceived stress‐relieving benefits gained from involvement in a 12 week exercise class program by a group of mothers (n?=?30, x? age?=?37.3 years). Qualitative data indicated that exercise classes had the capacity to reduce perceived stress levels. The exercising mothers reported greater feelings of well‐being mainly due to gaining a space of their own, time‐out from busy schedules and the burden of childcare, and the feeling of doing something to improve their physical appearance. The negative or constraining aspects of exercise class participation included normalisation and self examination of women's bodies, and self‐surveillance rather than freedom of choice. The conclusions of this paper suggest that exercise classes can provide one avenue for mothers to take more control over their own health and lifestyle.     

Social class: a multivariate analysis of its effect on expenditures for household services

Multivariate statistical techniques were used to explore two major conceptual issues in consumer behaviour research involving social class: (1) the importance of income, as compared to social class, in determining household behaviour, and (2) the effect of the status of wives on the behaviour of their households. A subsample of expenditure data, collected from 5,994 husband-wife families, as part of the 1973 Consumer Expenditure Survey, was used in the analysis. The dependent variable was expenditures for household services. The independent variables included total consumption expenditures (a proxy for income), the status of the wife, the status of the husband, family type, location, and characteristics of the dwelling. The results of an Ordinary Least Squares regression procedure demonstrated that total consumption expenditures were the most important variable in determining expenditures for household services. The size of the effect of the status of the wife was comparable to that of the status of the husband. In both cases, the effect was significant but small.     

The Cross‐Section of Credit Risk Premia and Equity Returns

We explore the link between a firm's stock returns and credit risk using a simple insight from structural models following Merton ( 1974 ): risk premia on equity and credit instruments are related because all claims on assets must earn the same compensation per unit of risk. Consistent with theory, we find that firms' stock returns increase with credit risk premia estimated from CDS spreads. Credit risk premia contain information not captured by physical or risk‐neutral default probabilities alone. This sheds new light on the “distress puzzle”—the lack of a positive relation between equity returns and default probabilities—reported in previous studies.     

EQUIVOCAL INFORMATION AND ATTRIBUTION: AN INVESTIGATION OF PATTERNS OF MANAGERIAL SENSEMAKING

Organizational research has revealed ample evidence of self-serving attributional patterns in managerial sensemaking, but has not yet resolved whether actor–observer attributional effects also influence managers’ sensemaking tendencies. The primary purpose of this study was to investigate whether such actor–observer effects can be detected in managers’ interpretation of equivocal information. Results indicate that managers receiving equivocal information about the performance of an organization described as their own credited positive outcomes to organizational strengths and blamed negative outcomes on environmental threats. In contrast, managers receiving equivocal information about an organization described as managed by others associated positive outcomes with environmental opportunities and linked negative outcomes to organizational weaknesses. Both self-serving and actor–observer attributional patterns were thus detected. © 1997 by John Wiley & Sons, Ltd     

Renewable Governance: Good for the Environment?

We conjecture that board renewal mechanisms—those substantive enough to renew the thinking of the board—are required before investors can address the mismatch between their preferences regarding environmental sustainability and what insiders at firms are actually doing. We identify the adoption of majority voting for directors and the introduction of a female director as two corporate governance mechanisms potentially strong enough to renew a board's thinking on sustainability. Using a sample of 3,293 firms from 41 countries, along with quasi-exogenous shocks to board renewal mechanisms in Canada and France, we find that both board renewal mechanisms are associated with significantly higher future environmental performance. Further tests provide suggestive evidence that board renewal is more strongly associated with environmental performance in settings with better institutions and more motivated institutional investors. These results suggest the importance of board renewal for alignment of firm policies with investor preferences around the world.