Do employers avoid hiring workers from poor neighborhoods? Experimental evidence from the real labor market*

We investigate whether employers avoid hiring workers who live in neighborhoods with low socio-economic status and/or with long commuting times. In a large-scale field experiment in the Swedish labor market, we sent more than 4,000 fictitious résumés, with randomly assigned information about the applicants' residential locations, to firms with advertised vacancies. Our findings show that commuting time has a negative effect on the likelihood of being contacted by an employer, while the socio-economic status of a neighborhood does not appear to be important. These results offer guidance for policymakers who are responsible for reversing segregation patterns.     

Less speed more haste: The effect of crisis response speed and information strategy on the consumer−brand relationship

This paper investigates the relationship between firm crisis behavior and the resulting consumer–brand relationship (CBR) response. Drawing from theoretical traditions in brand transgressions, service failure, and crisis communications, we use longitudinal survey data combined with archival social media data to empirically test the effect of crisis response speed and crisis information strategy on the short-term consumer crisis response evaluations (1 month after crisis response), and the long-term CBR (1 year after crisis response). Results show that, contrary to intuitive expectations, a faster firm response is not always better, as a slower response was found to result in higher crisis response evaluations. We also show that this effect depends on the consistency of the communication strategy with the first active response. Specifically, when a firm prioritizes safety information (instructing strategy), a faster response is better. Whereas, when the firm prioritizes well-being information (adjusting strategy), a slower response is better. We argue the counterintuitive finding that a slower response is better implies that reacting too quickly may signal rashness and unpreparedness to the customer, leading to more negative evaluations. We term this distinction the difference between being responsive (fast but considered) and reactive (faster but rash).     

Effect of board gender diversity on the financial performance of microfinance institutions: Does judicial efficiency matter?

The impact of board gender diversity on the financial performance of firms is not known. This is because empirical investigations have yielded inconclusive outcomes. This study engages data from 408 microfinance institutions (MFIs) covering the period 2010–2018 from the six microfinance regions to investigate this impact using the Least Squares Dummy Variable (LSDV) and the System Generalized Method of Moments (SYS-GMM) estimation techniques. The study also explores whether judicial efficiency exerts any significant effect on the board gender diversity–financial performance nexus. The study observes that board gender diversity exhibits a strong negative effect on the financial performance of MFIs. The study also observes that the effect of board gender diversity on the financial performance of MFIs escalates in the presence of judicial inefficiency. The study, therefore, unveils the judicial system as a channel through which gender diversity drives the financial performance of MFIs negatively.