Consequences of Influence Tactics Used With Subordinates, Peers, and the Boss

A field study was conducted to discover how a manager's use of 9 different influence tactics is related to target task commitment and the manager's effectiveness. The variables were measured with a questionnaire filled out by subordinates, peers, and the boss of each manager. The most effective tactics were rational persuasion, inspirational appeal, and consultation; the least effective tactics were pressure, coalition, and legitimating. Ingratiation and exchange were moderately effective for influencing subordinates and peers but were not effective for influencing superiors. Inspirational appeal, ingratiation, and pressure were used most in a downward direction; personal appeal, exchange, and legitimating were used most in a lateral direction; coalitions were used most in lateral and upward directions; and rational persuasion was used most in an upward direction.

The Consequences of REIT Index Membership for Return Patterns

We study the impact of S&P index membership on REIT stock returns. Given the hybrid nature of REITs, their returns may become more like those of other indexed stocks and less like those of their underlying properties. The existing literature does not offer clear predictions on these potential outcomes. Taking advantage of the inclusion of REITs in major S&P indexes starting in 2001, we find that shared index membership significantly increases the correlation between REIT returns after controlling for the stock characteristics that determine index membership. We also document that index membership enhances the link between REIT stock returns and the performance of the underlying real estate, consistent with improved pricing efficiency. REIT investors appear to be able to enjoy the benefits of improved visibility and liquidity associated with index membership as well as the exposure to underlying real estate markets and the related benefits of diversification.