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Theory suggests that the market for corporate control, which constitutes an important external governance mechanism, may substitute for internal governance. Consistent with this notion, using a novel measure of takeover vulnerability primarily based on state legislation, this paper aims to investigate the effect of the takeover market on board characteristics with special emphasis on board gender diversity.

This paper exploits a novel measure of takeover vulnerability based on state legislation. This novel measure is likely exogenous as the legislation was imposed from outside the firm. By using an exogenous measure, the analysis is less vulnerable to endogeneity and is thus more likely to show a causal effect.

The results show that a more active takeover market leads to lower board gender diversity. Specifically, a rise in takeover vulnerability by one standard deviation results in a decline in board gender diversity by 10.01%. Moreover, stronger takeover market susceptibility also brings about larger board size and less board independence, corroborating the substitution effect. Additional analysis confirms the results, including propensity score matching, generalized method of moments dynamic panel data analysis and instrumental variable analysis.

The study is the first to explore the effect of the takeover market on board gender diversity. Unlike most of the previous research in this area, which suffers from endogeneity, this paper uses a novel measure of takeover vulnerability that is probably exogenous. The results are thus much more likely to demonstrate causality.

Capitalizing on a unique measure of takeover susceptibility principally based on the staggered implementation of state laws, this study aims to explore the takeover market’s effect on managerial ownership. The market for corporate control, often known as the takeover market, is an important external governance mechanism, whereas managerial ownership is a vital internal governance instrument. Managerial ownership brings into convergence the interests of shareholders and managers. The originality of this study arises from the usage of state-level anti-takeover legislations as a measure which is beyond the control of firms and plausibly exogenous to firm-specific characteristics.

In addition to the standard regression analysis, this study also executes a variety of robustness checks to minimize endogeneity, i.e. propensity score matching, entropy balancing, instrumental–variable analysis, Lewbel’s (2012) heteroscedastic identification and Oster’s (2019) testing for coefficient stability.

Based on a large sample of US firms, the results show that more hostile takeover threats bring about significantly lower managerial ownership. The results reinforce the prediction of the substitution hypothesis. The disciplinary function of the takeover market reduces agency conflict to the point where managerial ownership is less necessary as a governance mechanism. Specifically, a rise in takeover susceptibility by one standard deviation diminishes managerial ownership by 7.22%.

`To the best of the authors’ knowledge, this study is the first to shed light on the impact of the takeover market on managerial ownership using a novel measure mainly based on the staggered adoption of state laws, which are plausibly exogenous to individual firms’ characteristics. Consequently, unlike prior research, this study is more likely to indicate a causal effect, rather than merely a correlation.

Exploiting an innovative measure of corporate culture based on machine learning and earnings conference calls, this study aims to investigate how corporate culture is influenced by hostile takeover threats. To sidestep endogeneity, this study uses a unique measure of takeover vulnerability principally based on the staggered implementation of state legislations, which are plausibly exogenous.

In addition to the standard regression analysis, this study also executes a variety of other empirical tests such as propensity score matching, entropy balancing and an instrumental variable analysis, to demonstrate that the results are robust. The final sample includes 27,663 firm-year observations from 4,092 distinct companies from 2001 to 2014.

This study documents that more takeover exposure weakens corporate culture considerably, consistent with the managerial myopia hypothesis. Threatened by the takeover risk, managers tend to behave myopically and are less likely to make long-term investments that promote strong corporate culture in the long run. Additional analysis focusing on a culture of innovation, which is especially vulnerable to managerial myopia, produces similar evidence.

To the best of the authors’ knowledge, this study is the first to explore the effect of takeover susceptibility on corporate culture using a distinctive metric of corporate culture based on textual analysis.

Exploiting two novel measures of takeover vulnerability and asset redeployability, this paper aims to investigate the effect of the takeover market on redeployable assets. Redeployable assets are those with alternative uses. Asset redeployability is a crucial concept in the literature on investment irreversibility.

In addition to the standard regression analysis, the authors execute several robustness checks: propensity score matching, entropy balancing, instrumental-variable analysis and generalized method of moment dynamic panel data analysis.

The authors’ results reveal that more takeover threats reduce asset redeployability significantly, corroborating the managerial myopia hypothesis. Hostile takeover threats reduce managers’ job security and thus induce them to myopically focus on the current utilization of assets in the short run, rather than how they may be deployed in the long run, resulting in less asset redeployability.

To the best of the authors’ knowledge, this study is the first to investigate the effect of takeover threats on asset redeployability. Because the authors’ measure of takeover vulnerability is principally based on the staggered passage of state legislations, which are plausibly exogenous, the authors’ results likely reflect causality, rather than merely an association.

Exploiting a unique measure of hostile takeover exposure principally based on the staggered adoption of state legislations, the authors investigate how external audit quality is influenced by the discipline of the takeover market. External auditors and the takeover market both function as important instruments of external corporate governance.

The authors execute a standard regression analysis and run a variety of robustness checks to minimize endogeneity, namely, propensity score matching (PSM), entropy balancing, an instrumental-variable analysis, Generalized method of moment (GMM) dynamic panel data analysis and Lewbel's (2012) heteroscedastic identification.

The authors’ immense sample spans half a century, encompassing nearly 180,000 observations and 17 takeover-related state legislations, one of the largest samples in the literature in this area. The authors’ results suggest that firms with more takeover exposure are significantly less likely to use Big N auditors. Therefore, a more active takeover market results in poorer external audit quality, corroborating the substitution hypothesis. The discipline of the takeover market substitutes for the necessity for a high-quality external auditor. Specifically, a rise in takeover susceptibility by one standard deviation lowers the probability of using a Big N auditor by 4.29%.

The authors’ study is the first to examine the effect of the takeover over market on audit quality using a novel measure of hostile takeover susceptibility mainly based on the staggered implementation of state legislation. Because the enactment of state legislation is beyond the control of any firm individually, it is plausibly exogenous. The authors’ results therefore probably reflect a causal influence rather than merely a correlation.

The purpose of this study is to shed light on the impact of economic policy uncertainty (EPU) on asset redeployability. Capitalizing on a novel measure of asset redeployability, the authors explore the effect of economic policy uncertainty (EPU) on redeployable assets using a unique text-based measure of EPU. Asset redeployability is an important aspect of sustainability that has been largely overlooked. More redeployable assets can be repurposed for a variety of uses, lessening the necessity for new products and thus conserving natural resources.

In addition to the standard regression analysis, the authors execute a variety of robustness checks, i.e. propensity score matching, entropy balancing, instrumental-variable analysis, GMM dynamic panel data analysis and use Oster’s (2019) approach for testing coefficient stability. Importantly, the authors incorporate firm fixed effects in the analysis, which helps mitigate endogeneity due to unobservable firm characteristics.

Based on an immense sample of over 200,000 observations over three decades, the results reveal that greater uncertainty raises asset redeployability significantly. The findings corroborate the managerial prudence hypothesis. The future deployment of assets is less predictable in times of increased uncertainty. Consequently, during uncertain times, it is more prudent to have assets that can be redeployed for multiple purposes.

To the best of the authors’ knowledge, this is the first study to explore the impact of EPU on asset redeployability, which is a critical aspect of sustainability that has rarely been investigated in the literature. The authors fill this important void in the literature. The authors extend the literature in EPU, asset redeployability as well as sustainability.

The study examines the emancipatory potential of entrepreneurship for women in STEM who have experienced a mid-career break. As studies on this subject are rather scarce, it also makes an important contribution to the literature by providing key insights into the entrepreneurial journeys of women in STEM who have experienced a career break and have started their own enterprises. The findings could be used by governments to intervene in the identified areas of difficulty and to facilitate the entrepreneurial endeavours of women in order to bring this community back into the workforce.

The study maps the entrepreneurial journeys of 23 women with a STEM background who turned into entrepreneurs after experiencing a career break. Qualitative data was collected through personal interviews with women entrepreneurs and was then analysed to interpret the results.

While the study confirms the emancipatory potential of entrepreneurship among well-educated middle-class women with a STEM background who face constraints related to career advancement and work–life balance, it also provides insights on various aspects related to their entrepreneurial development. This includes aspects such as their motivation to start a business, major barriers they face in developing their businesses and the strategies they use to handle those barriers. Suggestions for policy development are also proposed.

In addition to studying the entrepreneurial aspect of a rather underexamined segment of women in STEM who have experienced a career break, the study also examines the scope of the emancipatory potential of entrepreneurship for this segment of women. To the best of our understanding, no such study on STEM women has been carried out in developing nations in spite of the fact that this segment of women forms an important techno-economic resource which remains largely underutilised in developing economies.

Reliance on third-party judgments are common in efforts to identify and reduce workplace sexual harassment (SH). The purpose of this paper is to identify whether a workplace emphasis on inclusion as a cultural value is related to third-party labeling of and response to an exchange between a male manager and his female subordinate.

Participants (n=308) in an online survey experiment were randomly assigned to a workplace that emphasized inclusion or one that emphasized individual achievement as a cultural value. They read a vignette describing a workplace interaction between a male manager and his female subordinate and responded to a series of questions.

Organizational emphasis on inclusion is unrelated to third-party labeling of the interaction as SH, but positively associated with labeling the female’s intention to pursue harassment charges as an overreaction, and support for the female subordinate in a claim of SH against her manager. Culture is unassociated with willingness to defend the male manager in a SH claim.

Identifying how workplace culture shapes third-party reaction to harassment can help employers use third-party witnesses and cultural value statements as tools to reduce SH.

A workplace’s cultural emphasis on inclusion is positively related to third-party support for SH victims implying the importance of workplace context in the fight against workplace SH.

The paper presents the first experimental analysis of how a workplace cultural emphasis on inclusion affects the third-party observers’ reactions to SH.

The purpose of this paper is to examine the innovative capabilities of biotech start-ups in relation to geographic proximity and knowledge sharing interaction in the R & D network of a major high-tech cluster.

This study compares longitudinal informal communication networks of researchers at biotech start-ups with company patent applications in subsequent years. For a year, senior R & D staff members from over 70 biotech firms located in the Boston biotech cluster were polled and communication information about interaction with peers, universities and big pharmaceutical companies was collected, as well as their geolocation tags.

Location influences the amount of communication between firms, but not their innovation success. Rather, what matters is communication intensity and recollection by others. In particular, there is evidence that rotating leadership – changing between a more active and passive communication style – is a predictor of innovative performance.

Expensive real-estate investments can be replaced by maintaining social ties. A more dynamic communication style and more diverse social ties are beneficial to innovation.

Compared to earlier work that has shown a connection between location, network and firm performance, this paper offers a more differentiated view; including a novel measure of communication style, using a unique data set and providing new insights for firms who want to shape their communication patterns to improve innovation, independently of their location.

The purpose of this paper is to highlight why organisations need to shift from homogenous talent management to inclusive talent management. The authors argue that having a diverse workforce and inclusive culture is a business imperative and not just “a nice thing to do”.

The authors share their experiences of both interviewing directly and the results of their research into organisations that have taken steps to be more inclusive.

The paper explains that there is no “silver bullet” that will result in any organisation becoming more diverse and inclusive. However, there are a number of steps and “nudges” that can be taken to move towards inclusive talent management.

The authors have made every effort to select organisations from different sectors and regions but recognise that there will be many other examples of good practice elsewhere.

The authors believe that the examples described in the article can be applied in all organisations but will depend on the active support of its leaders and the extent to which they live the values of the company.

The relevance of the themes of diversity and inclusion has become a strategic business priority as organisations recognise the value that having a diverse workforce contributes to achieving their objectives.