Subjects viewed a videotape of a manager behaving in either a positive, punitive, or goal-setting manner who was portrayed as having a reputation for effectiveness or ineffectiveness (or had no information given about his reputation). The impact of these variables upon perceptions of power was assessed. Managerial behavior signifi cantly influenced perceptions of reward, coercive, legitimate, expert, and referent power. Managerial reputation significantly influenced perceptions of legitimate, referent, and especially, expert power. The relationships between overt managerial behavior and subordinate power perception were replicated in a second more "natural" ex periment. The results suggested the existence of an "implicit power theory" evoked by these managerial behaviors and information cues.
What is the relation between financial flexibility and dividend smoothing?