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Research summary: The use of Heckman models by strategy scholars to resolve sample selection bias has increased by more than 700 percent over the last decade, yet significant inconsistencies exist in how they have applied and interpreted these models. In view of these differences, we explore the drivers of sample selection bias and review how Heckman models alleviate it. We demonstrate three important findings for scholars seeking to use Heckman models: First, the independent variable of interest must be a significant predictor in the first stage of a model for sample selection bias to exist. Second, the significance of lambda alone does not indicate sample selection bias. Finally, Heckman models account for sample-induced endogeneity, but are not effective when other sources of endogeneity are present. Managerial summary: When nonrandom samples are used to test statistical relationships, sample selection bias can lead researchers to flawed conclusions that can, in turn, negatively impact managerial decision-making. We examine the use of Heckman models, which were designed to resolve sample selection bias, in strategic management research and highlight conditions when sample selection bias is present as well as when it is not. We also distinguish sample selection bias, a form of omitted variable (OV) bias, from more traditional OV bias, emphasizing that it is possible for models to have sample selection bias, traditional OV bias, or both. Accurately identifying the type(s) of OV bias present is essential to effectively correcting it. We close with several recommendations to improve practice surrounding the use of Heckman models.

Research summary: Managers can disclose information to security analysts as a form of impression management, but doing so is problematic because competitors can use that same information at the expense of the firm. We identify an impression management technique we call foreshadowing, which refers to hinting about future potential strategic activity. Foreshadowing provides information of value to analysts that can influence their evaluations of a firm, but not so much information as to put the firm at a competitive disadvantage. We hypothesize and find that managers who foreshadow acquisition announcements receive fewer analyst downgrades following the announcements, especially when there is more analyst uncertainty about the firm. We also hypothesize and find that analysts' responses to foreshadowing positively influence the likelihood that managers eventually acquire other firms. Managerial summary: Security analysts are often suspicious when firms announce acquisitions as those announcements are cumbersome to analyze on short notice and raise questions about managerial motivations that might not represent the best interests of the firm. We find that managers can improve analyst reactions to acquisition announcements by disclosing some information of value to analysts—specifically by hinting that an acquisition could occur in the future. We refer to such hints as foreshadowing. Foreshadowing entails giving analysts information to reduce their suspicions and facilitate their analyses, but not so much information as to degrade the firm's competitive information advantage over other firms. Foreshadowing also allows managers the option to reconsider actually executing the acquisition if analysts respond negatively to its possibility.

Research summary: Though research has focused on the ascent and acceptance of female CEOs, the post-promotion circumstances female CEOs face remain unclear. In this study, we focus on a critical post-promotion circumstance: the board chair-CEO relationship. Drawing on the gender stereotype literature, agency theory, and stewardship theory, we posit that firms appointing a female CEO are more likely to adopt a collaboration board chair orientation and less likely to adopt a control orientation. We further predict this effect is attenuated by female board representation. Using a sample of new S&P 1500 CEOs, we find support for our predictions regarding the collaboration orientation but not the control orientation. This research provides some evidence of benevolent sexism in the boardroom, with female directors acting as a countervailing influence. Managerial summary: Whereas the notion that females encounter a glass ceiling on their path toward CEO is well documented, the conditions female CEOs encounter after promotion are less understood. The relationship between the board chair and the CEO is one important post-promotion condition. Board chairs can focus on monitoring and/or working together with the CEO. We suggest board chairs are more likely to work in close collaboration with female CEOs than with male CEOs. We attribute this to benevolent sexism, which explains that board chairs are more likely to collaborate with female CEOs because they view females as more conducive to, and in need of, this type of relationship. We also suggest this benevolent sexism is less prevalent when there are more females on the board.

Purpose – The purpose of this paper is to examine the effect of shared leadership on the gap between male and female leadership influence in groups. Design/methodology/approach – The leadership influence of 231 members from 28 committees was studied using a social networks methodology. Gender differences in committee members’ directive and supportive leadership influence were analyzed through two ANCOVA tests. Findings – Results confirm significant differences between men and women’s leadership influence, as rated by their peers, using directive and supportive leader behaviors. Surprisingly, shared leadership has no significant effect on reducing this gender gap. Research limitations/implications – Results cannot be extrapolated to all other types of groups, since the committees studied have very unique characteristics due to their low typical mutual interaction. Practical implications – Organizations may need to consider complementary strategies in their group leadership design to prevent the emergence of strong gender gaps when leadership is shared. These strategies could involve training members to recognize gender inequalities in leadership status and assigning leadership roles formally to ensure more equal participation in leadership. Originality/value – This paper examines the promise of gender equality in shared leadership and provides empirical data that shows that this promise is not being realized.

We examine issues associated with various operational measures and model specifications in marketing-duality research that focuses on either a balancing or a combining perspective. In Study 1, we use archival data to demonstrate various operationalizations and models that subscribe to either perspective to test the impact of the exploration::exploitation duality, which produce mixed results. We then show that the multidimensional response surface approach constitutes a superior omnibus test that coalesces the two perspectives. Study 2, a simulation-based study, affirms the severity of biases in the existing approaches and the comprehensiveness and precision of the response surface approach. The cumulative evidence shows that the existing perspectives employ transformed measures that fail to distinguish firms with different approaches to the two activities underlying a duality. Thus, they suffer from many conceptual blind spots, produce mixed statistical conclusions, and are sensitive to changes in mean values. Our findings provide guidelines for the study of marketing dualities.

Research Summary Violation severity represents an important contextual factor in explaining the extent to which top actor performance is a benefit or burden following a negative event. Research often conflates how observers perceive an event with its objective severity, however, while ignoring the potential divergence between both types. We therefore introduce the severity gap, which reflects the degree to which perceived and objective violation severity diverge, and we theorize about how it informs the degree to which top actor performance offers benefits or burdens for these actors. We hypothesize and find that internal stakeholders shield strong performing top actors when the severity gap is high, but that performance is less salient to external stakeholders who distance themselves from these top actors. Managerial Summary Organizations embroiled in violations are often subject to formal assessments of the severity of the event as well as the court of public opinion. Yet researchers have largely conceptualized objective and perceived violation severity as mirrors of each another. We question if this captures what actually unfolds in the marketplace, particularly given the myriad examples of when violations resonate more strongly with observers than the objective severity would suggest, or vice versa. We examine how the gap between perceived and objective violation severity influences how much insiders and outsiders are concerned with top actor performance when considering which outcomes top actors encounter after the negative event. Our results suggest that insiders shield top performers as the severity gap increases, but that outsiders remain increasingly skeptical.

Purpose - The purpose of this paper is to investigate the impact of Jewish holidays on US stock market returns.Design methodology approach - The authors use event study and regression methodology to determine abnormal returns on Jewish holidays and windowed periods surrounding the day. In order to seclude the results to Jewish holidays, the authors control for several other known events that impact stock market returns. To substantiate claims of abnormal returns, the authors also use the Fama-French four-factor model to seek alpha and evidence returns on Jewish holidays.Findings - This study shows, during the 1990-2009 period, an increase in average daily returns 32 times greater on nine Jewish holidays than on the other trading days of the year. The demeanor of the specific Jewish holidays also influences stock market returns, as the market returns increase (decrease) on the joyous (solemn) Jewish holidays. Also, individual investors, rather than institutional investors, are a greater catalyst for the increased returns.Originality value - Previous research details increased stock market returns on US holidays and several other events. However, no definable research exists on stock market returns on Jewish holidays. The findings in this paper are valuable to investors who event-trade, and are also valuable to investors and behavioral-finance researchers who seek to understand how demeanor and moods may impact buying selling decisions.

Managers’ control over the timing and content of information disclosure represents a significant strategic tool which they can use at their discretion. However, extant theoretical perspectives offer incongruent arguments and incompatible predictions about when and why managers would release inside information about their firms. More specifically, agency theory and theories within competitive dynamics provide competing hypotheses about when and why managers would disclose inside information about their firms. In this study, I highlight how voluntary disclosure theory may help to coalesce these two theoretical perspectives. Voluntary disclosure theory predicts that managers will release inside information when managers perceive that the benefits outweigh the costs of doing so. Accordingly, I posit that competitive dynamics introduce the costs associated with disclosing information (i.e., proprietary costs) and that agency theory highlights the benefits associated with disclosing information. Examining the context of seasoned equity offerings (SEOs), I identify three ways managers can use information in SEO prospectuses. I hypothesize that competitive intensity increases proprietary costs that will reduce disclosure of inside information but will increase discussing the organization positively. I then hypothesize that capital market participants (e.g., security analysts and investors) may prefer managers to provide more, clearer, and positive information about the SEO and their firms. I find support for many of my hypotheses.