Leadership & Organizational Behavior

This paper is concerned with the issue of how to balance bailouts (or "lending into arrears") with debt reductions (or "private sector involvement") in the resolution of sovereign debt crises. It provides a review of recent proposals to regulate sovereign debt renegotiations under a Sovereign Debt Restructuring Mechanism (SDRM). In addition to defending a sovereign bankruptcy proposal we have put forward in recent work, this article proposes a major reorientation of the IMF's role in sovereign debt crises.

CASE SETTING: $250 million to $499 million in revenues; luxury goods; Netherlands, France At three o'clock in the morning of September 10, 2001, Thierry Hautillac, a risk arbitrageur, learns of the final agreement between Pinault-Printemps-Redoute SA (PPR) and LVMH Moet Hennessy Louis Vuitton SA (LVMH). After a contest for control of Gucci lasting more than two years, PPR has emerged as the winner.

Access to credit is an important means of providing people with the opportunity to make a better life for themselves. Loans are essential for most people who want to purchase a home, start a business, pay for college, or weather a spell of unemployment. Yet many people in poor and minority communities — regardless of their creditworthiness — find credit hard to come by, making the climb out of poverty extremely difficult. How dire are the lending markets in these communities and what can be done to improve access to credit for disadvantaged groups?

Outside the United States and the United Kingdom, large corporations usually have controlling owners, who are usually very wealthy families. Pyramidal control structures, cross shareholding, and super-voting rights let such families control corporations without making a commensurate capital investment. In many countries, a few such families end up controlling considerable proportions of their countries' economies. Three points emerge.

We present a model of nonprofit governance built on two assumptions: (1) organizations wish to hold precautionary savings in order to smooth expenditures; and (2) it is relatively easy for managers to divert these funds for personal use. Hence, donors face a trade off between expenditure smoothing and donation dissipation.We examine the model's predictions using panel data on U.S. nonprofits.

Suppose you open talks with an important customer by making an aggressive first offer. He becomes offended. You back off a bit; he responds by trying to take advantage. This back-and-forth negotiation process, which many liken to a dance, can leave you shuffling endlessly around the issues, while resentment builds on both sides. Fortunately, a versatile strategy exists that allows you to take the lead in the dance: multiple equivalent simultaneous offers, or MESOs.

When will individuals accept or reject systems that subordinate them, when will they take actions that will challenge these status hierarchies, and when will such challenges be more intense, overt, and non-normative? Research suggests that individuals often justify and maintain systems that subordinate them, yet we suggest that there are certain boundary conditions that predict when individuals will no longer accept their place in such systems.

Counterfactuals are thoughts of what might have been. They are mental representations of alternatives to past occurrences, features, and states. As such, they are imaginative constructions fabricated from stored representations, typically embracing a blend of traces from both episodic and semantic memory.