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BA really asked for it. (2008)

Things go wrong when a confident company gets too cocky - witness the airline's Terminal 5 debacle. Too much pride can ruin judgment. Richard Reeves Management Today 1 May 2008 British Airways did not hold back when making claims for its new Terminal 5. It would be a space in which the passenger could 'rejuvenate, revive and relax', and find a 'natural, logical journey that's so calm, you'll flow through'. …In chaotic, cal...

Written by: Reeves, Richard

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Endogenous steroids and financial risk taking on a London trading floor. (2008)

"..a trader’s morning testosterone level predicts his day’s profitability. We also found that a trader’s cortisol rises with both the variance of his trading results and the volatility of the market. Our results suggest that higher testosterone may contribute to economic return, whereas cortisol is increased by risk.   John M Coates and J Herbert. Proceedings of the National Academy of Sciences U S A, 105: 6167-7...

Written by: Coates and Herbert.

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Deconstructing ‘stupidity’: why smart people often do stupid things. (2008)

To understand ‘stupidity’ it is necessary to deconstruct it and to show that it can subvert even the keenest intellect under certain conditions. Jeffrey Gandz, Professor of Strategic Leadership and Managing Director, Program Design, Western University’s Ivey Business School Ivey Business Journal November / December 2008 Gandz goes beyond technical explanations for the 2008 financial crisis to ask “why...

Written by: Gandz, Jeffrey.

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In Sickness and in Power: Illness in Heads of Government During the Last 100 Years. (2008)

"A unique study of illness in heads of government between 1901 and 2007, and how it affects the process of government and decision-making, leading to acts of folly, in the sense of stupidity or rashness. David Owen (Lord Owen) trained and practised as a medical doctor before being elected a Labour MP in his home city of Plymouth. He served as Foreign Secretary under James Callaghan from 1977 until 1979. He c...

Written by: Owen, Lord David.

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Power, propensity to negotiate, and moving first in competitive interactions. (2007)

"...high-power individuals displayed a greater propensity to initiate a negotiation than did low-power individuals... power increased the likelihood of making the first move in a variety of competitive interactions.   Magee, J.C., New York University Galinsky, A.D., Northwestern University Gruenfeld, D.H., Stanford University Personality and Social Psychology Bulletin 33: 200-212. Five ex...

Written by: Magee, Galinsky and Gruenfeld.

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Managerial overconfidence and corporate policies. (2007)

"...companies with overconfident CFOs use lower discount rates to value cash flows, and that they invest more, use more debt, are less likely to pay dividends, are more likely to repurchase shares, and they use proportionally more long-term, as opposed to short-term, debt.   Ben-David, I., University of Chicago Graduate School of Business Graham, J.R., Harvey, C.R., Duke University, Fuqua School of Business NB...

Written by: Ben-David, Graham and Harvey.

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Bad leaders: How they get that way and what to do about them. (2007)

“The primary culprits are those who appoint leaders exhibiting personality disorders… then tolerate bad leadership when it manifests. But followers cannot evade responsibility. J. Allio, Principal of Allio Associates, Rhode Island, USA Strategy & Leadership, 35(3), 12-17 “We appear to be suffering today from a plague of bad leadership in both the private and public sector. Whom can we blame fo...

Written by: Allio, R. J.

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Why neuroscience matters to executives. (2007)

"..how can recent developments in neuroscience be applied to organizational management? Do these lessons pertain to all types of organizational interaction? Is there research that indicates the most effective way to introduce change in an organization?   David Rock & Jeffrey Schwartz A strategy+business magazine publication New findings about the physiology of the human brain are reshaping traditional views...

Written by: Rock & Schwartz.

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Emerging insights into the nature and function of pride. (2007)

"People feeling authentic pride are more likely to score high on extraversion, agreeableness, genuine self-esteem and conscientiousness. However, those feeling hubristic pride are more narcissistic and prone to shame.   Jessica L. Tracy, University of British Columbia Richard W. Robins, University of California, Davis Current Directions in Psycho...

Written by: Tracy and Robins.

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It’s all about me: narcissistic chief executive officers and their effects on company strategy and performance. (2007)

"Narcissistic CEOs favor bold actions …, resulting in big wins or big losses, but their firms' performance is generally no better or worse than non-narcissistic CEOs’ firms. Arijit Chatterjee and Donald C. Hambrick, Pennsylvania State University Administrative Science Quarterly, Vol. 52, No. 3 (Sep., 2007), pp. 351-386 This study uses unobtrusive measures of CEOs’ narcissism to examine its effect on a firm's strateg...

Written by: Chatterjee, Arijit & Hambricj, Donald C.

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