INTELLECTUAL CAPITAL

After the #metoo movement’s horrifying tales of bathrobes, roofies, and casting couches, the sexually predatory boss is almost a cultural trope. But does power really promote sexual harassment? New research from Jessica A. Kennedy explores the relationship between gender, power, and sexually harassing behavior in the workplace. Professor Kennedy discussed her latest study – Who do they think they are?: A social-cognitive account of gender differences in social sexual identity and behavior at work with us earlier this fall.

You’ve co-authored a new study that looks at gender and sexual behavior in the workplace. Can you tell us more about the study and what the findings were?

We looked at sexual behaviors that were rated low in warmth and high in dominance, and therefore likely to be perceived as offensive and sexually harassing. As you might guess, gender differences emerge for this behavior, but holding high levels of power and activating goals to connect with others eliminate the gender differences. I find that encouraging. It was also surprising to us that desiring a powerful image (not holding power) promoted this behavior among men. Subordinate men were more likely to desire a powerful image than men who actually held power, and therefore, subordinate men were more likely to engage in this behavior with a female boss than were either high-power men or subordinate women with a male boss.

How does your research connect with gender stereotypes?

I think there are old stereotypes about people who sleep their way to the top, and I think women were historically stereotyped as doing so more than men, but that stereotype is outdated already, and it’s in complete contradiction with what we find here. Lacking power did not promote sexual behavior among women interacting with powerful men.

Otherwise, stereotypes don’t play much of a role in explaining what we find here, but what does is the self-concept. We wondered what people could possibly be thinking when they engaged in behaviors like asking, “Have you ever had a workplace relationship?” or “Do you like to make the first move?” in an interview setting where they are getting acquainted with people of the other sex. We find that people’s self-concept helps them to rationalize this behavior. Greater endorsement of statements like, “I am a big flirt,” “I know how to turn on the charm,” and “When I want something from someone, I know how to be irresistible” comprise what we call a social sexual identity, or self-defining as a person who leverages sex appeal in pursuit of personally valued gains. I think this construct helps us understand what people are thinking when they do these things. When you see these events in the news, it can be difficult to understand how the behaviors are consistent with any type of self-regulation process, but our studies help to provide some answers.

What lessons can workplace leaders take from your study to improve their work environment?

Encouraging people to act from the right motives – connecting with others, not establishing a powerful image – might help to mitigate sexual harassment. It’s the power motive, not holding high levels of power, that is problematic. Leaders can model and reinforce the right intentions and create cultures that emphasize connection, not appearing powerful (especially when you aren’t). As a behavioral ethicist, I believe in the power of cultivating the right intentions within yourself and within the workplaces you lead. Organizational cultures inform our selfconcept and our intentions. Our findings also suggest that leaders should watch out for contrapower harassment and have a plan to deal with it. Sexual harassment from less powerful men to more powerful women is likely to be more common than predatory bosses, according to our study, and should not be ignored or dismissed.

Why is it important to study and understand these workplace behaviors?

Leaders are responsible for creating environments that help people perform their best. Sexually harassing others is pretty much the antithesis of doing that. It doesn’t respect the dignity of anyone involved and it generates a major cognitive load that is distracting, so understanding why people engage in those behaviors is important if we want fair, efficient workplaces where people can do their best work.

The COVID-19 (COVID) pandemic is labeled as a global health crisis, but its impact reaches far beyond health. The term ‘unprecedented’ has become part of a common vocabulary used to describe unemployment rates, supply chain fluctuations, prices, technological demands, and the average day-to-day.

Challenged with these unprecedented times and due widely to the increase in remote/hybrid work and life, municipalities have experienced significant shifts in their economies, with new migration patterns and varying goods/services needs.

A Flash in the Pan(edemic)? Migration Risks and Municipal Bonds, by Peter Haslag, Assistant Professor of Finance, finds that the disruption to migration patterns due to the pandemic has a natural and significant impact on the fiscal health of municipalities. Using data on municipal bonds, this study explores how the pandemicmotivated change in migration patterns and lifestyles impacts the vitality of municipalities.

The study finds that in light of the pandemic, the disruption to migration patterns and changes in preferences for goods/services significantly impacts the vitality of municipalities and is likely a lasting and economically relevant phenomenon.

“The ultimate takeaway is that the change in preferences that are revealed through migration patterns is likely to be a permanent and economically meaningful event,” the authors write.

The bond market confirms that areas suffering from abnormal population outflows will see the largest yield changes in 5 to 10 years, suggesting more risk in the medium-run.

“The forward-looking nature of municipal bond prices allows us to better understand to what extent the pandemic-induced shift in location and lifestyle preferences will have a lasting impact on local economies,” says Haslag.

In areas experiencing greater outflows, bond yields increased, suggesting greater risk for these counties going forward. Likewise, in areas where people migrated to, bond yields were relatively lower, a sign of lesser risk.

The findings from this study add to the conversation of whether or not the pandemic’s economic effects are likely to persist. “The anticipated permanence of these shifts in location preferences and the underlying risk factors for local economies and municipal finances are important considerations for policymakers, investors, employers and employees moving forward,” the authors write. – Lacie Blankenship

The field of consumer behavior has revealed countless insights on purchase preferences, messaging responses, and other tactical pieces of information that marketers can use to shape their products and promotions and drive higher sales. What is less understood is how these marketing efforts affect consumers with clinical disorders, positively or negatively.

The research that does bridge clinical psychology with consumer behavior has uncovered valuable findings:

Individuals exhibiting high symptoms of adult separation anxiety disorder are particularly susceptible to advertisements that appeal to the notion of “coming home.”

Clinical symptoms can drive how individuals judge and choose among consumer options.

Military members experiencing the stress of being away from home and without ready access to commodities are more prone to compulsive purchases post-deployment, while those who are fired upon and/or exposed to the carnage of combat experience the opposite effect. Marketing can move individuals with addictive disorders toward or away from addiction.

Body-related messaging and imagery has a direct impact on the likelihood of disordered eating behaviors.

A consumer behavior expert at Vanderbilt is seeking to develop a new field of research that helps marketers and consumers make decisions with mental health in mind.

Steve Posavac, E. Bronson Ingram Professor of Marketing at the Vanderbilt Owen Graduate School of Management, is advocating for the development of a psychological subfield dubbed “Clinical Consumer Psychology” – the study of how dysfunctional and maladaptive cognitive and behavioral processes interact with individuals’ consumer experiences and behaviors.

In the paper Toward a Clinical Consumer Psychology, Posavac and his co-authors argue that a better understanding of how clinical disorders can be worsened or improved by consumptive behaviors and marketing messages can facilitate improved mental health in a variety of ways.

Recent research from Steve Posavac demonstrates the impact that Clinical Consumer Psychology can have on our understanding of how individuals with clinical-level symptomologies navigate the consumer-based aspects of our world, and how marketers can keep clinical psychology in mind when crafting marketing messages, campaigns, and brands.

People who present symptoms of HPD are more likely to make consumer choices for the sake of grabbing others attention, even when those choices are more expensive and offer fewer benefits, according to his new study, “The Utility of Clinical Psychology Concepts for Judgment and DecisionMaking Research: The Case of Histrionic Features.”

“We conducted this study to show how clinical psychology symptoms can affect consumers’ judgments and choices,” said Posavac.

Histrionic Personality Disorder affects between 1%-2% of the population. HPD is characterized by extreme emotionality and a desire to be the center of attention, which can lead to behaviors such as dressing provocatively, behaving in an inappropriately seductive manner, and exhibiting shallow, overly dramatic emotions.

Through 4 studies, Posavac and his co-authors identify the product attributes that consumers who present with HPD symptoms prioritize in their purchase decisions.

The studies revealed that consumers with HPD symptomology rated attention-grabbing attributes “Status Symbol” and “Acceleration” over the more practical attributes “Mileage” and “Reliability” when it came to purchasing a car, to the extent that they would prefer a car that rated high on “Status Symbol,” even at the expense of gas mileage and reliability. They also found that these consumers were more willing to pay for a fancy, expensive rental car versus a standard option to attend their high school reunion, specifically because they thought it was important to rent a car that would grab people’s attention. Moreover, apartment searchers with high HPD symptoms are willing to settle for a smaller apartment if living there will help them draw attention.

“Taken together, our experiments show that clinical symptomology can affect how important consumers perceive given product attributes to be, their choices, the tradeoffs they make, and their willingness to pay,” said Posavac.

“Clinically relevant psychological phenomena are a big part of everyday life,” said Posavac. “Marketers as well as mental health practitioners can be more effective when they appreciate the interface of clinical and consumer psychology.”

The paper poses several research questions that explore the role of clinical disorders on consumer behavior processes, how marketers can use clinical phenomena to better serve consumer segments while appreciating potential vulnerabilities, consumption’s ability to alleviate and exacerbate distress, and more.

“Our team is hopeful that laying out promising research directions will drive interest among marketers as well as clinical psychologists in understanding the important but underappreciated interplay between the two fields,” said Posavac.

For Posavac and his co-authors, the goal of promoting Clinical Consumer Psychology isn’t just to better understand the human experience, but also to improve it.

“Ultimately, both marketing and clinical psychology are service fields. Developing a robust clinical consumer psychology literature has strong potential to help practitioners in each to be more effective,” noted Posavac. – Nate Luce

It’s a common question among financial professionals and market researchers: how much does the media affect rapid growth in high-risk markets? Ample evidence shows media coverage plays a vital role by reducing uncertainty and informing the public about investment risks. At the same time, when journalists fixate on growth and quick returns to excite their readers, news can create a fear of missing out that prompts irrational investments.

The debate has never been more significant than in the non-fungible tokens (NFT) market, where massive growth and media coverage appear to have risen as

one, and few entrants fully understand the underlying blockchain-based technology. A new study co-authored by Joshua White, a finance professor at Vanderbilt’s Owen Graduate School of Management, finds that in the case of NFTs, media fosters growth without triggering a frenzy of investment decisions.

Examining 7.6 million NFT trades from 2017 to 2021, the study identified extreme growth in the number of NFTs minted (i.e., created), the total number of NFTs, dollar volume, and marketplaces. The number of unique buyers and sellers rose from 8,000 in 2019 to over 1.15 million in 2021. NFT dollar volume grew 255% year-over-year in 2020 and 62,912% in 2021.

Media coverage of NFTs similarly skyrocketed in the same period, picking up real speed in 2021. Of the 26,000 NFT articles in the study’s database, only 200 dated back to 2020. But there were 3,000 NFT articles in the first quarter of 2021 alone and 12,000 in the final quarter of the year.

To measure media’s effect on the market, researchers merged their databases of trades and news articles on a daily basis. They also measured the tone of each article. Applying advanced analytics across the combined data allowed researchers to estimate the link between NFT news and market fluctuation across a number of days. They measured media’s influence on market participation, volatility and seller returns. “If the news media are primarily hyping NFT markets, you should see a positive relation between NFT news and NFT volatility and returns,” said White. “If the media are educating market participants, then seller returns and price swings should decline because new buyers are better informed.”

Market Participation: Unsurprisingly, the more the news coverage, the greater the increases in NFT minting and trading five days later. As public awareness about NFTs grew, more buyers and sellers also entered the marketplace. Negative news coverage weakened the effect, but only 9% of all the coverage took a negative angle (41% was positive, 50% neutral).

Volatility: News prevalence actually seems to reduce NFT volatility. Counter to the media hyping theory, this evidence suggests that media increases the public’s understanding of NFTs’ risks and values.

Seller Returns: Average NFT returns were high but fairly consistent during the sample period, averaging between 70.4% and 158.2%. Again, going against the expectation in a media-hyping situation, seller returns were lower following surges in NFT news, especially when the news was negative or neutral.

The articles in the study came from 1,600 national and local news sources. Researchers segmented sources into 5 categories: local, national, financial, tech, and crypto. They measured the coverage and tone of each segment, again looking at changes in market participation, volatility, and returns in the days following.

Financial media covered NFTs the most and most positively. National and tech news articles were typically more neutral, and together these 3 segments spurred greater and more informed market participation. Local media coverage was the most negative but least impactful of the group. And though one might expect crypto sources to tend toward hyping NFTs, their tones follow the averages of the other segments, and their coverage correlates with lower volatility and seller returns.

Taken on the whole, the study seems to overturn the idea that news outlets are primarily igniting dangerous growth in NFTs. Instead, media appears to play an educational role.

“We found very little evidence that media coverage of NFTs exacerbates irrational investor choices by amplifying fear of missing out,” White said.

While it remains to be seen whether this role holds true over the long term in the NFT market, in the interim, it can offer investors some assurance that journalists help readers see through the hype of fast-growing, complex, and unregulated markets such as non-fungible tokens. – Lacie Blankenship

Creating a workplace environment that is LGBTQ+ inclusive and accepting is not only the morally right thing to do, but it’s also a game-changer for business productivity. “The research is very clear. When LGBTQ+ people feel they need to conceal their identities at work, it takes up a lot of their mental and emotional capacities, which can harm their productivity,” says Gabrielle Lopiano, Assistant Professor of Management. “An inclusive workplace removes that burden and allows LGBTQ+ employees to fully immerse themselves in their work.”

Lopiano, an expert in stigma, identity management, workplace diversity, discrimination, and social hierarchy, shares 5 tips for managers to create and maintain an LGBTQ+ inclusive and accepting workplace.

Adapt company policies with inclusion in mind.

Company policies lay the legal foundation for employee and employer expectations. It’s fairly common that these formalities feature non-inclusive language. One example is the use of ‘maternity’ and ‘paternity’ leave. Company leadership has the opportunity to improve this by changing gendered terms (i.e.: maternal/paternal leave) to nonbinary terms (i.e.: parental/family leave). Another example is spousal benefits. Companies should ensure that employees in same-sex relationships have the same protections and benefits that non-LGBTQ+ employees do.

Corporate leadership can also improve company policies by reevaluating the formal dress code. These types of policies often mention that men should wear a collared shirt and dress pants, and women should wear skirts, dresses, styled hair, etc. These guidelines are harmful to multiple marginalized groups because they set a biased standard of what professionalism looks like.

“I think that removing gendered language from formal policies is a really good first step,” says Lopiano. “Professionals should be mindful of the language they are using and what sort of gender norms they formally perpetuate in policies like written benefits packages and formal dress codes.”

Align internal and external efforts.

Performative allyship is not acceptable. Companies that adapt their logos for June but don’t take active measures for LGBTQ+ inclusivity are not authentic allies. Authentic allyship looks like supporting LGBTQ+ communities, advocating for equality and acceptance, changing policies, and reevaluating norms. LGBTQfocused inclusion training and employee resource groups are additional ways to build workplace inclusion internally.

“A rainbow logo means very little if it isn’t backed by inclusive values and action. Failing to speak out against anti-LGBTQ legislation – or worse, actively supporting it – says a lot more about a company’s values than sponsoring a Pride event,” says Lopiano.

Encourage informal and interpersonal inclusion.

There’s a line between sharing and prying. Some people may not be comfortable sharing a lot of personal details at work, and others may be thrilled to share more. It is never appropriate to assume anything (pronouns, sexuality, identity, etc.) or pry. However, there is a balance that fosters inclusion.

Matching personal dialogues is a good way to approach this. As a general guideline, if someone shares about their significant other and refers to them with a specific noun, that’s how you can refer to them. Avoid walking on eggshells and match these dialogues; if someone tells you about their ‘wife,’ then it’s okay for you to ask about their wife.

“Steering away from asking personal questions is a form of bias,” says Lopiano. “Make sure that LGBTQ+ colleagues are just as included in personal conversations at work. Ask them about their weekends!”

Normalize preferred pronouns.

Normalizing the sharing of preferred pronouns is a powerful implementation for fostering an LGBTQ+ inclusive environment. From onboarding onward, there are many opportunities to do this (i.e.: employee directories, name tags, email signatures, Zoom titles, etc.).

“It’s nice to see non-LGBTQ people disclosing their pronouns because it’s a signal that the organization as a whole is inclusive,” says Lopiano.

Listen to others and welcome feedback.

There is vast room for improvement in terms of LGBTQ+ inclusivity in the business world. A key aspect of becoming more inclusive is to stay open-minded, listen to others, and welcome feedback. True leaders will proactively look for ways to include everyone and take action when new perspectives are presented.

“I think it’s important to note that no one is looking for special treatment. The only agenda is to ensure that LGBTQ+ employees receive equal treatment as their non-LGBTQ+ peers,” says Lopiano. – Lacie Blankenship

PHOTOS BY CHAD DRIVER

BY NATE LUCE

Samuel Richmond arrived at Vanderbilt from Columbia in September 1976 with a long to-do list. To remain sustainable, the 7-year-old school required an overhaul of the curriculum, a new recruiting strategy, and significant financial support, among other things. With boundless energy and deep experience in higher education, the new Dean set an ambitious agenda for the young business school, marking his priorities on a board in his office at Henry Clay Alexander Hall, a repurposed mortuary located off of West End Avenue and the first home of the Vanderbilt Graduate School of Management.

Dean Richmond and his team accomplished an impressive number of major initiatives in a short amount of time. In 1977, Ralph “Peck” Owen (’28) and Lulu Hampton Owen made a series of sizeable gifts to the school that now bears their name, ushering in a new era of financial stability that attracted other donors. The school continued to grow at a rapid pace through the end of the decade. By 1979, Henry Clay Alexander Hall was stretched beyond its capacity. Richmond had crossed several of his top priorities off the board in his office, and now he turned his focus to one of the few that remained – finding a new and larger home for the Owen Graduate School of Management.

Flash forward about 50 years, and Owen finds itself in a similar situation. The school has experienced remarkable growth since those early days at the converted mortuary. It has helped launch and elevate the careers of thousands of accomplished professionals around the world. Through their research, insights, and impact, faculty have shaped the course of marketplaces and organizations, as have research centers like the Hans Stoll Financial Markets Research Center. Owen has continued to expand its portfolio of programs to meet the needs of students and industry.

As the school approached its 50th Anniversary, it became clear that Owen needed a larger home to accommodate its growth. With generous initial support from The Owen Century Partners – a group of prominent Vanderbilt University alumni and supporters – Dean Johnson announced in 2020 that the Owen School had raised enough to commence a $55 million Renovation and Expansion project at Management Hall. It’s the largest project in the history of Management Hall, and the first donor-led building project in Vanderbilt’s history.

“It was amazing to see the Owen community come together to make the long-held dream of a world-class building a reality,” Johnson says.

The project achieves multiple strategic goals for Vanderbilt’s Business School and the University.

The expansion increases Management Hall’s footprint by more than 50% (an addition of 48,000 square feet to the existing 70,000 square foot structure), which helps more comfortably accommodate a total student body of roughly 650 students across 7 programs. It also allows all faculty, staff, and classrooms to be located under one roof, facilitating more opportunities for collaboration and community-building.

“Owen had long ago outgrown our original building,” Johnson says. “The expansion will fuel collaboration by bringing the community together and inviting Nashville business into the life of the school.”

Accessibility and inclusion were primary considerations in the design of the renovated space, inside and out. The front entrance offers enhanced visibility and easier access from the adjacent walkway and drive. A relocated café space, to be operated by Nashville favorite Bongo Java, sits adjacent to the front desk, offering an ideal spot for meetings or catchups with community members and visitors alike. The elevator shaft has been relocated from the center of the lobby to the edge of the building, improving flow on the first and second floor, and the lobby has been reconfigured to better welcome and accommodate visitors to the student centers on the first floor.

The third floor remains the home for faculty and staff, but their workspaces have been redesigned and expanded, affording enough room for the entire community to work and collaborate under one roof.

The fourth floor, a completely new addition to Management Hall, boasts 2 classrooms, indoor and outdoor event spaces, a kitchen, and collaboration rooms. These spaces will be used to host a variety of events and programs for Owen and the broader business community, including Executive Education programs, Closing Bell receptions, and more.

With outward-facing, transparent features along 21st Avenue and the main entrance, the new Management Hall greatly enhances the school’s corner of campus and aligns with the university’s vision for how it presents itself to Nashville.

“The new building makes a statement on 21st Avenue, with its presence and transparency that invites the business community to be part of our growth,” says Johnson. “We look forward to hosting many more business events, creating a crossroads for business innovation.”

New features abound throughout the building, but with the same focus on collaboration and connection that could be found in the original design. Reconfigured spaces like the Collaboration

Porch offer students the chance to study individually or in small groups, in full view of the lobby. Tables and chairs will remain located throughout the first and second floor lobbies, as they have for decades. As Dean Johnson is fond of saying, “there’s nowhere to hide away” in this latest version of Management Hall.

The renovated building will also play a critical role in the Owen School’s new strategic plan, which will be announced later this year. Developed in conjunction with University leadership and guided by Boston Consulting Group, the plan looks towards the next 50 years of business education at Vanderbilt, with an emphasis on meeting the future needs of students and the global business community.

Owen Essentials (see page 3) will support this new strategic plan. Announced over the summer, the 6 guiding principles and their associated behaviors are already being incorporated into programming across the school, with the aim of supporting and enhancing the Owen culture as the community returns to in-person education in a permanent home.

The energy and strategic mindset that Dean Richmond established during his tenure at Owen remains alive and well today on campus, and the newest version of Management Hall is wellequipped to handle the kind of growth that prompted its construction more than 40 years ago.

“I am deeply grateful for the investment our alumni community to pay it forward for the next generation of Owen business leaders,” says Johnson.

The $55 million renovation and expansion of Management Hall – the largest such project in the building’s history – has fundamentally transformed the Vanderbilt Owen Graduate School of Management and its ability to deliver world-class education on a personal scale. Consider these facts and figures about the project:

Encompassing 48,000 square feet, the expansion grows Management Hall’s footprint by 50%. The project allows all faculty, staff, and classrooms to be located under one roof. The project is designed to achieve LEED Gold Certification. A new fourth floor offers 2 classroom spaces, kitchen, and event space designed to better host the communities around Vanderbilt and Nashville. A named space houses the Turner Family Center for Social Ventures and Vanderbilt Center for Entrepreneurship, transinstitutional centers that count students from every Vanderbilt graduate school as members, as well as undergraduates. This is the first donor-led building project in Vanderbilt's history, conducted in partnership between Vanderbilt and Owen Graduate School of Management, with over half of the funding raised by the Owen Century Partners.

Mod 1 kicked off at the newly renovated Management Hall with energy and enthusiasm, with events new and old held around the building, including the Human Capital Case Competition and Thursdaynight Closing Bells.

Owen hosted an unprecedented Reunion October 6-8, 2022, celebrating classes that graduated with a year ending in 0,1,2,5,6 and 7. Additionally, all alumni were invited to celebrate Homecoming and the Management Hall First Reveal for one of the largest Vanderbilt Reunion gatherings in our history.

PHOTOGRAPHY BY CHAD DRIVER