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The purpose of our study is to investigate the effects of politically-connected boards (PCBs) on over-(under-)investment in labor. We also examine the impacts of the supervisory board (SB)’s optimal tenure on the association between PCBs and over-investment in labor.

We constructed the proxy for PCBs using a dummy variable set to 1 (one) if a firm has politically-connected boards and zero (0) otherwise. For the robustness check, we used the number of politically-connected members on the boards as the proxy for PCBs.

We find that the presence of PCBs reduces over-investment in labor. Consistent with our prediction, we found no significant association between PCBs and under-investment in labor. We also find that the SB with optimal tenure strengthens the negative association between PCBs and over-investment in labor. In our channel analysis, we find that the presence of PCB mitigates over-investment in labor through a higher dividend payout ratio.

Due to the unavailability of data in firms’ annual reports regarding the number of poorly-skilled and highly skilled employees, we were not able to examine the effect of low-skilled and high-skilled employees on over-investment in labor. Also, we were not able to examine over-(under-)investment in labor by drawing a distinction between general (generalist) and firm-specific human capital (specialist) as suggested by Sevcenko, Wu, and Kacperczyk (2022). Generally, it is more difficult for managers to hire highly-skilled employees, specialists in particular, thereby driving the choice of either over- or under-investing in the labor forces. In addition, in the firms’ annual reports, there is no information regarding temporary employees. Therefore, if and when such data become available, this would provide another avenue for future research.

Our study offers several practical implications and insights to stakeholders (e.g. insiders or management, shareholders, investors, analysts and creditors) in the following ways. First, our study highlights significant differences between capital investment and labor investment. For instance, labor investment is considered an expense rather than an asset (Wyatt, 2008) because, although such investment is human capital and is not recognized on the firm’s balance sheet (Boon et al., 2017). In addition, labor investment is characterized by: its flexibility which enables firms to make frequent adjustments (Hamermesh, 1995; Dixit & Pindyck, 2012; Aksin et al., 2015), its non-homogeneity since every employee is unique (Luo et al., 2020), its direct impact on morale and productivity of a firm (Azadegan et al., 2013; Mishina et al., 2004; Tatikonda et al., 2013), and its financial outlay which affects the ongoing cash flows of a firm (Sualihu et al., 2021; Khedmati et al., 2020; Merz & Yashiv, 2007). Second, our findings reveal that the presence of PCBs could help to reduce over-investment in labor. However, if managers of a firm choose to under-invest in labor in order to obtain better profit in the short-term through cost saving, they should be aware of the potential consequences of facing a financial loss when a new business opportunity suddenly arises which requires a larger labor force. Third, our findings help stakeholders to re-focus on the labor investment. This is crucial due to the fact that labor investment is often neglected by those stakeholders because the expenditure of labor investment is not recognized on the firm’s balance sheet as an asset. Instead, it is written off as an expense in the firm’s income statement. Fourth, our findings also provide insightful information to stakeholders, suggesting that an SB with optimal tenure is more committed to a firm, and this factor plays an important role in strengthening the negative association between PCBs and over-investment in labor.

First, our findings provide a valuable understanding of the effects of PCBs on over-(under-)investment in labor. Stakeholders could use information disclosed in the financial statements of a publicly-listed firm to determine the extent of the firm’s investment in labor and PCBs, and compare this information with similar firms in the same industry sector. Second, our findings give a better understanding of the association between investment in labor and political connections , which are human and social capital that could determine the long-term survival and success of a firm. Third, for shareholders, the appointment of board members with political connections is an important strategic decision to build political capital, which is likely to have a long-term impact on the financial performance of a firm; therefore, it requires thoughtful consultation with firm insiders.

Our findings highlight the role of PCBs in reducing over-investment in labor. These findings are significant because both investment in labor and political connections as human and social capital can play an important role in determining the long-term survival and success of a firm.

The influence of digital media and mobile technologies on the interpersonal dynamics of young individuals across various aspects of their daily lives underscores the significant role of digital media in shaping their experiences. Research exploring how individuals engage with mobile applications (m-apps) has revealed the constraining effects of platform norms and politics on users' expressive identities. This chapter examines the evolving landscape of media consumption, engagement and civic participation amidst the proliferation of new media modalities, focussing on m-apps. The authors highlight the pervasive adoption of mobile apps across diverse categories and the escalating temporal investment individuals allocate to these platforms for fostering interpersonal connections. Drawing from a feminist and intersectional perspective, the authors explore how young adults navigate the technicity and imaginaries of m-apps, incorporating them into their daily routines and (re)negotiating their gender and sexual identities. Through the MyGender project, the authors investigate the relationship between m-apps and power dynamics, examining the construction and reconstruction of gender and sexuality across platforms. The findings underscore the need for critical engagement with digital technologies as sociocultural products actively reshaping gender relations and sexual practices. The text ends with an overview of the book, briefly presenting the remaining nine chapters.

This study longitudinally investigated the predictors and mediators of adolescent smartphone addiction by examining the impact of parental smartphone addiction at T1 on adolescent smartphone addiction at T3, as well as the separate and sequential role of adolescent self-esteem and depression at T2 as mediating factors.

This study used a hierarchical regression and the PROCESS macro (Model 6) to investigate research model by collecting 3,904 parent-adolescent pairs. Panel data were collected from three waves of the Korean Children and Youth Panel Survey (KCYPS).

First, the result showed that parental smartphone addiction at T1 significantly and positively predicted adolescent smartphone addiction at T3. Second, the serial mediation analysis revealed that the impact of parental smartphone addiction at T1 on adolescent smartphone addiction at T3 was mediated by adolescent self-esteem and depression at T2 independently and serially.

The findings enhance our comprehension of the impact of parental smartphone addiction, adolescent self-esteem and depression, on adolescent smartphone addiction.