Social Exchange and the Effects of Employee Stock Options

ILR Review ◽  
2019 ◽  
Vol 73 (1) ◽  
pp. 124-152 ◽  
Author(s):  
Peter Cappelli ◽  
Martin Conyon ◽  
David Almeda
Keyword(s):  
Job Performance ◽  
Social Exchange ◽  
Financial Incentives ◽  
Stock Options ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Exchange Relationship ◽  
Current Period ◽  
Incentive Effects ◽  
Exchange Effects

The authors assert that broad-based stock options create a social exchange relationship between the employer and employees, leading to higher individual job performance in the next period. They compare this social exchange hypothesis to the more typical incentive-based explanation for stock options, which is that holding options generates financial incentives for better individual job performance in the current period. Findings show that significant and meaningful relationships are associated with social exchange effects and that these are both independent of incentive effects and arguably greater than those for the incentive effects. The authors use non-parametric and parametric fixed effects models, other controls for sample heterogeneity, and alternative specifications to address possible concerns about identification and endogeneity. These results extend empirical studies of social exchange relationships to common workplace practices. They also raise the possibility that some of the performance effects attributed to incentives in other studies may actually be attributable to social exchange effects.

Creating Mutual Gains to Leverage a Racially Diverse Workforce: The Effects of Firm-Level Racial Diversity on Financial and Workforce Outcomes Under the Use of Broad-Based Stock Options

2020 ◽  
Vol 31 (6) ◽  
pp. 1515-1537
Author(s):  
Joo Hun Han ◽  
DuckJung Shin ◽  
William G. Castellano ◽  
Alison M. Konrad ◽  
Douglas L. Kruse ◽  
...  
Keyword(s):  
Financial Performance ◽  
Social Exchange ◽  
Financial Incentives ◽  
Stock Options ◽  
Affective Commitment ◽  
Racial Diversity ◽  
Voluntary Turnover ◽  
Turnover Rates ◽  
Firm Level ◽  
Firm Financial Performance

Despite substantial scholarly attention to workforce demographic diversity, existing research is limited in understanding whether or in what contexts firm-level racial diversity relates to performance and workforce outcomes of the firm. Drawing on social interdependence theory along with insights from social exchange and psychological ownership theories, we propose that the use of broad-based stock options granted to at least half the workforce creates the conditions supporting a positive relationship between workforce racial diversity and firm outcomes. We examine this proposition by analyzing panel data from 155 companies that applied for the “100 Best Companies to Work For” competition with responses from 109,314 employees over the five-year period from 2006 to 2010 (354 company-year observations). Findings revealed that racial diversity was positively related to subsequent firm financial performance and individual affective commitment and was not significantly associated with subsequent voluntary turnover rates, when accompanied by a firm’s adoption of broad-based stock options. However, under the nonuse of broad-based stock options, racial diversity was significantly related to higher voluntary turnover rates and lower employee affective commitment, with no financial performance gains. By documenting the beneficial effects of financial incentives in diverse workplaces, this paper extends theory asserting the value of incentives for performance.

Dampak Kebijakan Moneter Pada Output Di Negara-Negara ASEAN Tahun 1980-2014

2017 ◽  
Vol 4 (1) ◽  
pp. 58-70
Author(s):  
Nur Widiastuti
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Least Square ◽  
Fixed Effects Model ◽  
State Data ◽  
Ordinary Least Square ◽  
The Impact

The Impact of monetary Policy on Ouput is an ambiguous. The results of previous empirical studies indicate that the impact can be a positive or negative relationship. The purpose of this study is to investigate the impact of monetary policy on Output more detail. The variables to estimatate monetery poicy are used state and board interest rate andrate. This research is conducted by Ordinary Least Square or Instrumental Variabel, method for 5 countries ASEAN. The state data are estimated for the period of 1980 – 2014. Based on the results, it can be concluded that the impact of monetary policy on Output shown are varied.Keyword: Monetary Policy, Output, Panel Data, Fixed Effects Model

Organization-Based Self-Esteem Affects Employees' Exchange Relationship Perceptions and Extrarole Behavior

2016 ◽  
Vol 44 (3) ◽  
pp. 509-517 ◽  
Author(s):  
Yanhan Zhu
Keyword(s):  
Social Exchange ◽  
Positive Relationship ◽  
Mainland China ◽  
Negative Relationship ◽  
Self Esteem ◽  
Moderating Effect ◽  
Exchange Relationship ◽  
Significant Positive Relationship ◽  
Significant Negative Relationship ◽  
Practical Implications

The 2 types of exchange relationship perceptions—social exchange relationship perceptions (SERPs) and economic exchange relationship perceptions (EERPs)—constitute the primary concept for understanding individual behavior in the workplace. Using a sample of 581 employees from Mainland China, I explored the effects of SERPs and EERPs on employee extrarole behavior (ERB), as well as the moderating effect of organization-based self-esteem (OBSE) on the relationships between SERPs and ERB, and between EERPs and ERB. The results revealed a significant positive relationship between SERPs and ERB, a significant negative relationship between EERPs and ERB, and a significant moderating effect for OBSE. Theoretical and practical implications of these findings are discussed.

The Effects of Changes in State Tax Enforcement on Corporate Income Tax Collections

2015 ◽  
Vol 38 (1) ◽  
pp. 125-143 ◽  
Author(s):  
Sanjay Gupta ◽  
Daniel P. Lynch
Keyword(s):  
Income Tax ◽  
Fixed Effects ◽  
State Level ◽  
Data Availability ◽  
Corporate Income Tax ◽  
Annual Reports ◽  
Tax Policies ◽  
Tax Enforcement ◽  
Current Period ◽  
State Tax

ABSTRACT Using a new hand-collected database on state department of revenue (DOR) expenditures, this study examines the association between changes in state corporate tax enforcement expenditures and state-level tax collections during the 2000–2008 time period. The results, after addressing endogeneity concerns using a changes specification and state fixed effects, suggest a $1 increase (decrease) in current period corporate enforcement is associated with an $8 to $11 increase (decrease) in state tax collections two years into the future. The association appears to be attenuated in states with restrictive tax policies (i.e., unitary/combined reporting and related-party add-back provisions) suggesting that enforcement and restrictive tax policies could serve as substitutes. JEL Classifications: H26; H71; H72. Data Availability: Enforcement data were hand collected from state revenue department annual reports and by contacting state corporate income tax personnel. All annual reports are publicly available.

Job meaningfulness, employee engagement, supervisory support and job performance: a moderated-mediation analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abinash Panda ◽  
Subhashis Sinha ◽  
Nikunj Kumar Jain
Keyword(s):  
Job Performance ◽  
Employee Engagement ◽  
Social Exchange ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Equation Modeling ◽  
Conservation Of Resources ◽  
Supervisory Support ◽  
Content Type ◽  
Job Meaningfulness

PurposeGuided by social exchange, broaden and build and conservation of resources theoretical perspectives, this study explores the moderated mediating role of supervisory support (SS) on the relationship between job meaningfulness (JM) on job performance (JP) through employee engagement (EE).Design/methodology/approachField data were collected from two hundred and nineteen executives and their thirty-eight supervisors of a large paint manufacturing industry through a time-lagged research design and was analyzed with partial least squares based structural equation modeling.FindingsFindings of this study indicate that JM mediated by EE contributes to JP, which means if an employee finds one's job meaningful, she/he is likely to be more engaged emotionally, psychologically and cognitively to deliver better JP. SS is also found to be salient as it moderates both direct and indirect relationships between JM and JP through EE.Research limitations/implicationsGeneralizability of the findings of this study should be done with caution. Though the study has time-laggard data from two different sources but missing longitudinal data restricts causality of relationships/findings.Practical implicationsThese findings are relevant for organizations given that organizational leaders can create a context, by appropriate job design and engaging work context that motivates employees to perform better in their jobs. Insights of this study will be useful for organizations to curate meaningful jobs for their employees and also groom leaders with requisite skills and competencies to help subordinates perform up to their potential.Originality/valueThis study is an attempt toward a better understanding of the interplay of JM, work engagement and SS on JP in a manufacturing set-up in India, which has not been hitherto examined in Indian context.

scholarly journals INVESTIGATING THE IMPACT OF PERFORMANCE APPRAISAL JUSTICE ON JOB PERFORMANCE AND OCB OF EMPLOYEES: PATH THROUGH WORK ENGAGEMENT

2021 ◽  
Vol 9 (3) ◽  
pp. 315-325
Author(s):  
Riffut Jabeen ◽  
Rabia Khan ◽  
Abida Ellahi ◽  
Samina Begum
Keyword(s):  
Job Performance ◽  
Performance Appraisal ◽  
Human Resource ◽  
Social Exchange ◽  
Work Engagement ◽  
Mediating Effect ◽  
Organizational Setting ◽  
Appraisal System ◽  
Data Set ◽  
The Impact

Purpose of the study: The study intends to find the interaction of Performance Appraisal Justice (PAJ) and work engagement (WE) to predict employee job performance (JP) and organizational citizenship behaviour (OCB) under the umbrella of fairness heuristic theory (JHT) and social exchange theory (SET).  Methodology: Hypotheses testing was done using linear regression data on the data set of 325 respondents. The results are significant and indicated that Justice in the performance appraisal system is positively related to employee outcomes (OCB and job performance) with mediating effect of work engagement.  Main Findings: Interaction between exogenous, endogenous, and intervening variables suggests that there is a positive relationship between PAJ and WE and WE mediate the relationship between PAJ and OCB and PAJ JP. In the organizational setting of Pakistan, this study addresses PAJ and its important outcomes which are beneficial for the organization’s effective outcomes. Applications of this study: This study throws light on the management, organizational, and administrative sciences literature, especially the human resource, organizations, and industrial behavior perspective. Administrators and human resource managers can apply the findings of this study. The study can be applied to both the public and private sectors. Originality/Novelty: Pakistani organizations have high collectivism, uncertainty avoidance and power distance, centralization, bureaucracy, and authority in organizations. Therefore, this study has proved some prominent outcomes as compared to countries with a more constant climate. The study sheds light on very important aspects of workplace behavior such as justice, work engagement, OCB, and performance with a particular focus on developing countries. 

scholarly journals A more complete picture: Rural residents’ relative support for seven forms of natural resource related economic development

2019 ◽  
Author(s):  
Tom Mueller ◽  
Ann R. Tickamyer
Keyword(s):  
Economic Development ◽  
Social Exchange ◽  
Natural Resource ◽  
Fixed Effects ◽  
Outdoor Recreation ◽  
Stated Preference ◽  
Mixed Logit ◽  
Rural Sociology ◽  
Rural Resident ◽  
General Support

Understanding rural resident support for various forms of natural resource related economic development has been a common research topic in rural sociology. However, the vast majority of research has only evaluated support for one form of natural resource use at a time. The little research that has explored support for a wide variety of uses has found that residents are likely to support many of the suggested forms of development. We assessed rural resident support for seven forms of natural resource development: commercial logging, natural gas, mining, real estate, wind energy, tourism, and outdoor recreation. Using social exchange theory, this study examines the influence of perceived impacts of development, industry trust, and perceived industry power on general support for the seven forms of natural resource-related economic development using a fixed effects generalized linear model among a sample of residents of rural Pennsylvania communities. Additionally, we use mixed logit discreet choice modeling to evaluate the drivers of relative support, meaning a stated preference for one form of development over other possible options. The drivers of general support and relative support were similar, with trust in industry and impacts to quality of life emerging as the primary drivers of both.

scholarly journals Supervisor Workplace Gossip and Employee Job Performance: The Mediation Effect of Employee Job Engagement.

2018 ◽  
Vol 7 (4) ◽  
pp. 10
Author(s):  
Phakamani Dlamani ◽  
Iris Zhou ◽  
Juniter Kwamboka Mokua
Keyword(s):  
Job Performance ◽  
Research Design ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Service Sector ◽  
Mediation Effect ◽  
Tension Stress ◽  
Job Engagement ◽  
Effective Strategies ◽  
And Performance

This paper examined the role of supervisor gossip on subordinate job performance. The paper hypothesized that supervisor’s negative and positive gossip influence employee job engagement which in subsequently affects employee job performance. Dyadic research design was used to collect data from a sample of 228 employees and supervisors from Kwa Zulu Natal Government Municipality, South Africa. The employees completed the questionnaire items on supervisor gossip and job engagement, while their supervisors completed the questionnaire items on employee job performance. Data collection was done in three waves. The study established that positive superior gossip positively and significantly influenced employee job engagement, which positively improved employee job performance; while negative superior gossip had a positive, but insignificant effect on employee job engagement. The study was limited by the multicultural nature of the municipality as well as the causality issues and common method biases associated with research design. Having managed to utilize Social Exchange Theory (SET) in disentangling the supervisor-subordinate reciprocal communication web, the study proposes that supervisors should inculcate effective strategies of utilizing both positive and negative gossip in the workplace so as to increase positive employee outcomes. Negative gossip will cause tension, stress and mistrust among employees, while positive gossip will lead to creation of workplace antagonism and competition. This study attempted to assess the implication of supervisor gossip on employee job engagement and performance in the public service sector, whose employees are characterized with high job security as compared to their peers in the private sector.

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