Leadership and crisis: why managers tighten the reins when under threat

Econ 050

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When the financial crisis hit in 2008, the instinct of thousands of business owners around the globe was to cling to their power even more tightly, cutting across sectors and cultures. But more egalitarian approaches to leadership that share responsibility and power are better for weathering an economic downturn. In their recently published paper, “Tightening the leash after a threat: A multi-level event study on leadership behavior following the financial crisis”, professors Janka Stoker and Harry Garretsen examine how the heads of companies changed their leadership style in the immediate aftermath of the crisis. They are also co-authors of the book, “Taking the Hot Air Out of Leadership”, which goes beyond the pithy quotes and digs deep into what leadership truly means, in good times and bad.

29 episodes

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