The NSF and Alfred Sloan Foundation kindly provided research support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

We show theoretically and empirically how real and …nancial frictions amplify the impact of uncertainty shocks on …rms'investment, employment, debt (term structure of debt growth), and cash holding. We start by building a model with real and …nancial frictions, alongside uncertainty shocks, and show how adding …nancial frictions to the model roughly doubles the negative impact of uncertainty shocks on investment and hiring. The reason is higher uncertainty induces the standard negative real-options e¤ects on the demand for capital and labor, but also leads …rms to hoard cash and cut debt to hedge against future shocks, further reducing investment and hiring. We then test the model using a panel of US …rms and a novel instrumentation strategy for uncertainty exploiting di¤erential …rm exposure to exchange rate and factor price volatility. We …nd that higher uncertainty reduces real investment and hiring, while also leading …rms to increase cash holdings by cutting debt, dividends and stockbuy backs, and these e¤ects are strongest in periods of higher …nancial frictions and for the most …nancially constrained …rms. This highlights why in periods with greater …nancial frictions -like during the global-…nancial-crisis -uncertainty can be particularly damaging.

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Most of the research related to leadership and virtual teams has been developed under the assumption that members participate on one team at a time. However, scholars have recently noted that more organizations are having their employees working in multiple team environments, and most of this multiple team membership (MTM) is taking place in virtual teams. In this article, we present an analysis of how MTM might affect the creation and development of the Leader-Member Exchange relationship, LMX. To our understanding, this is the first attempt to explore the challenges that multiple team memberships carries in the creation and development on LMX relationships whether they are created in virtual or co-located teams.