scholarly journals Distributional differences in the time horizon of executive compensation

2021 ◽  
Author(s):  
Michael Haylock
Keyword(s):  
Quantile Regression ◽  
Executive Compensation ◽  
Firm Value ◽  
Fixed Effects ◽  
Time Horizon ◽  
Performance Pay ◽  
Short Term ◽  
Left Tail ◽  
The Right

AbstractThe aim of executive compensation plans is to incentivize executives to maximize long-term firm value. Past research shows that executives’ pay is determined by short-term stock performance to a substantial degree. This paper tests for distributional differences in the time horizon of the performance–pay relation, controlling for executive-firm fixed effects in a quantile regression framework. I identify short-term and long-term firm and industry performance using a filter and estimate distributional differences in the short-term and long-term performance–pay relation using method of moments–quantile regression (Machado and Santos Silva in J Econ 213:145–173, 2019). I find the right tail of the conditional total compensation distribution has a more long-term-oriented performance–pay relation than the left tail. By contrast, the right tail of the conditional accumulated wealth distribution has more short-term-oriented performance–pay relation than the left tail. Results show that asymmetry in short-term firm performance–pay relations may exist, but do not vary across the conditional distribution.

Distinguishable Brain Activation Networks for Short- and Long-Term Motor Skill Learning

2005 ◽  
Vol 94 (1) ◽  
pp. 512-518 ◽  
Author(s):  
A. Floyer-Lea ◽  
P. M. Matthews
Keyword(s):  
Motor Skill ◽  
Isometric Force ◽  
Brain Activation ◽  
Skill Learning ◽  
Anterior Cingulate ◽  
Motor Skill Learning ◽  
Short Term ◽  
Learning Stage ◽  
The Right

The acquisition of a new motor skill is characterized first by a short-term, fast learning stage in which performance improves rapidly, and subsequently by a long-term, slower learning stage in which additional performance gains are incremental. Previous functional imaging studies have suggested that distinct brain networks mediate these two stages of learning, but direct comparisons using the same task have not been performed. Here we used a task in which subjects learn to track a continuous 8-s sequence demanding variable isometric force development between the fingers and thumb of the dominant, right hand. Learning-associated changes in brain activation were characterized using functional MRI (fMRI) during short-term learning of a novel sequence, during short-term learning after prior, brief exposure to the sequence, and over long-term (3 wk) training in the task. Short-term learning was associated with decreases in activity in the dorsolateral prefrontal, anterior cingulate, posterior parietal, primary motor, and cerebellar cortex, and with increased activation in the right cerebellar dentate nucleus, the left putamen, and left thalamus. Prefrontal, parietal, and cerebellar cortical changes were not apparent with short-term learning after prior exposure to the sequence. With long-term learning, increases in activity were found in the left primary somatosensory and motor cortex and in the right putamen. Our observations extend previous work suggesting that distinguishable networks are recruited during the different phases of motor learning. While short-term motor skill learning seems associated primarily with activation in a cortical network specific for the learned movements, long-term learning involves increased activation of a bihemispheric cortical-subcortical network in a pattern suggesting “plastic” development of new representations for both motor output and somatosensory afferent information.

scholarly journals (M,β)-Stability of Positive Linear Systems

2016 ◽  
Vol 2016 ◽  
pp. 1-11 ◽  
Author(s):  
Octavian Pastravanu ◽  
Mihaela-Hanako Matcovschi
Keyword(s):  
Linear System ◽  
Linear Systems ◽  
Transient Behavior ◽  
Short Term ◽  
Time Dynamics ◽  
The Right ◽  
Long Term Behavior ◽  
Stability Concept

The main purpose of this work is to show that the Perron-Frobenius eigenstructure of a positive linear system is involved not only in the characterization of long-term behavior (for which well-known results are available) but also in the characterization of short-term or transient behavior. We address the analysis of the short-term behavior by the help of the “(M,β)-stability” concept introduced in literature for general classes of dynamics. Our paper exploits this concept relative to Hölder vectorp-norms,1≤p≤∞, adequately weighted by scaling operators, focusing on positive linear systems. Given an asymptotically stable positive linear system, for each1≤p≤∞, we prove the existence of a scaling operator (built from the right and left Perron-Frobenius eigenvectors, with concrete expressions depending onp) that ensures the best possible values for the parametersMandβ, corresponding to an “ideal” short-term (transient) behavior. We provide results that cover both discrete- and continuous-time dynamics. Our analysis also captures the differences between the cases where the system dynamics is defined by matrices irreducible and reducible, respectively. The theoretical developments are applied to the practical study of the short-term behavior for two positive linear systems already discussed in literature by other authors.

Corporate social responsibility and debt financing of listed firms: a quantile regression approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kofi Mintah Oware ◽  
T. Mallikarjunappa
Keyword(s):  
Quantile Regression ◽  
Debt Financing ◽  
Short Term ◽  
Content Type ◽  
Leverage Ratio ◽  
Listed Firms ◽  
Conditional Mean ◽  
Natural Logarithm ◽  
Corporate Social

Purpose The purpose of the study is to examine the effect of corporate social responsibility (CSR) on debt financing (natural logarithm of debt and leverage ratios) of listed firms. Design/methodology/approach Using content analysis for data extraction, the study examines listed firms on the Bombay Stock Exchange (BSE) from 2010 to 2019 financial year. It uses a quantile regression and panel fixed effect regression as the model's application. Findings The study shows that CSR expenditure has a positive and strong correlation with debt financing (i.e. natural logarithm of long-term and short-term debts). The first findings show that CSR expenditure has a negative and statistically significant association with total leverage ratio, using conditional mean and median percentile. However, there is a positive and statistically significant association between CSR expenditure and long-term leverage ratio at the 25th and 50th percentile. The second findings show that CSR expenditure has a positive and statistically significant association with long-term debt but an insignificant association with short-term debt and total debt under a conditional mean average. The application of quantile regression addresses the values that fall outside the confidence interval and therefore document a positive and statistically significant association between CSR expenditure and debt financing (short-term debt, long-term debt and total debt) at the 25th, 50th and 75th percentile. Originality/value The introduction of quantile regression gives a novelty in CSR and debt financing study, which to the best of the authors’ knowledge, has not received any attention. Similarly, firms have better information on how to position their CSR expenditure to attract providers of debt financing.

Velocity Optimization and Robust Energy Management of Connected Power-Split Hybrid Electric Vehicles

2021 ◽  
Author(s):  
Seyedeh Mahsa Sotoudeh ◽  
Baisravan HomChaudhuri
Keyword(s):  
Energy Management ◽  
Time Horizon ◽  
Control Method ◽  
Optimization Approach ◽  
Management Problem ◽  
Energy Management Strategy ◽  
Short Term ◽  
Power Split ◽  
Energy Manager

Abstract This paper focuses on an eco-driving based hierarchical robust energy management strategy for connected automated HEVs in the presence of uncertainty. The proposed control strategy includes a velocity optimizer, which evaluates the optimal vehicle velocity, and a powertrain energy manager, which evaluates the optimal power split between the engine and the battery in a hierarchical framework. The velocity optimizer accounts for regenerative braking and minimizes the total driving power and friction braking over a short control horizon. The hierarchical powertrain energy manager employs a long- and short-term strategy where it first approximately solves its problem over a long time horizon (the whole trip time in this paper) using the traffic data obtained from vehicle-to-infrastructure (V2I) connectivity. This is followed by a short-term decision maker that utilizes the velocity optimizer and long-term solution, and solves the energy management problem over a relatively short time horizon using robust prediction control methods to factor in any uncertainty in the velocity profile due to uncertain traffic. We solve the long-term energy management problem using pseudospectral optimal control method, and the short-term problem using robust tube-based model predictive control(MPC) method. Simulation results show the competence of our proposed approach, where our proposed co-optimization approach with long- and short-term solution results in ≈ 12% more energy efficiency than a baseline co-optimization approach.

Long-Term Decision-Making: Biological and Psychological Evidence

2009 ◽  
Vol 9 (3) ◽  
pp. 9-19 ◽  
Author(s):  
Thomas Princen
Keyword(s):  
Decision Making ◽  
Time Horizon ◽  
Cultural Factors ◽  
Structural Factors ◽  
Short Term ◽  
Environmental Decision Making ◽  
Human Decision ◽  
Psychological Evidence ◽  
Widespread Belief

A central conundrum in the need to infuse a long-term perspective into climate policy and other environmental decision-making is the widespread belief that humans are inherently short-term thinkers. An analysis of human decision-making informed by evolved adaptations—biological, psychological and cultural—suggests that humans actually have a long-term thinking capacity. In fact, the human time horizon encompasses both the immediate and the future (near and far term). And yet this very temporal duality makes people susceptible to manipulation; it carries its own politics, a politics of the short term. A “legacy politics” would extend the prevailing time horizon by identifying structural factors that build on evolved biological and cultural factors.

scholarly journals Substitute or complement? The use of trade credit as a financing source among SMEs

2017 ◽  
Vol 40 (1) ◽  
pp. 10-27 ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman
Keyword(s):  
Fixed Effects ◽  
Trade Credit ◽  
Generalized Method Of Moments ◽  
Short Term ◽  
Content Type ◽  
System Models ◽  
Accounts Payable ◽  
Short And Long Term ◽  
Retained Earnings

Purpose This study aims to investigate trade credit as a financing source among small- and medium-sized enterprises (SMEs), particularly the influence of short-term debt, long-term debt and profitability on the use of such credit. Design/methodology/approach Ordinary least squares (OLS), fixed-effects and generalized method of moments (GMM) system models were used to analyze a large cross-sectional panel data set of 15,897 Swedish SMEs in five industry sectors for the 2009-2012 period. Findings The study provides empirical evidence that long-term debt and profitability each significantly and negatively influence trade credit (i.e. accounts payable) and that short-term debt positively influences trade credit. Notably, while trade credit seems to complement other short-term debt, it replaces long-term debt. Moreover, firm size in terms of sales is positively related and firm age is negatively related to accounts payable. Industry affiliation is another significant explanatory variable. Practical implications The results provide debt holders, potential investors, policymakers and academic researchers with insights into the relationship between trade credit demand, on the one hand, and external financing (i.e. short- and long-term debt) and internal retained earnings (i.e. profit), on the other. From a manager’s perspective, the findings may be important for decision-making regarding trade credit use. Originality/value When investigating trade credit determinants, the literature has seldom distinguished between short- and long-term debt and considered that they may influence the use of trade credit in different ways. The present study adds to the literature by using OLS, fixed-effects and GMM system models to analyze a large cross-sectoral sample in a high-tax country where both bank loans and trade credit are considered important financing instruments.

Echoes of the French Revolution in the Rhineland, 1830–1849

1989 ◽  
Vol 22 (2) ◽  
pp. 200-217 ◽  
Author(s):  
Jonathan Sperber
Keyword(s):  
French Revolution ◽  
Economic Effects ◽  
Left Bank ◽  
Short Term ◽  
Political Implications ◽  
The One ◽  
The Right ◽  
Grand Duchy ◽  
The French Revolution

Of all the regions of Central Europe, the Rhineland was the one most affected by the French Revolution. The area on the left bank of the Rhine belonged for almost two full decades to the First French Republic and the Napoleonic Empire; parts of the right bank were, for a shorter period, under the rule of the Napoleonic satellite state, the Grand Duchy of Berg. In studying these unusual circumstances, historians have sometimes focused on short-term political implications, asking how the Rhenish population of the 1790s responded to the Jacobin regime. They have also studied the long-term social and economic effects of the revolutionary legislation and the secularization of church lands.

Short-Term Investors, Long-Term Investments, and Firm Value

2017 ◽  
Author(s):  
K. J. Martijn Cremers ◽  
Ankur Pareek ◽  
Zacharias Sautner
Keyword(s):  
Firm Value ◽  
Short Term

scholarly journals Time Horizon, Costs of Equity Capital, and Generic Investment Strategies of Firms

2007 ◽  
Vol 20 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Thomas Zellweger
Keyword(s):  
Default Risk ◽  
Time Horizon ◽  
Family Firms ◽  
Economic Value ◽  
Equity Capital ◽  
Investment Strategies ◽  
Cost Of Equity Capital ◽  
Short Term ◽  
Investment Projects

Recent literature (McNulty, Yeh, Schulze, & Lubatkin, 2002) states that the assumptions behind the capital asset pricing model, in particular the irrelevance of time horizon, do not correspond to the characteristics of firms that prefer long-term investment horizons. I show that family firms display a longer time horizon than most of their nonfamily counterparts, since (1) family firms display a longer CEO tenure, (2) this type of firm strives for long-term independence and succession within the family, and (3) due to the fact that family firms are overrepresented on western European stock markets in cyclical industries in which business cycles inhibit short-term success. As the annual default risk of an investment diminishes with increasing holding period (Hull, 2003), the risk-equivalent cost of equity capital of firms with longer planning horizons (e.g., family firms) can be lower as well. Based on the assumption that economic value to shareholders is created when firms invest in projects with returns above the associated cost of capital (Copeland, Koller, & Murrin, 2000), I argue that long-term-oriented firms can tackle unique investment projects represented by two generic investment strategies—the perseverance and the outpacing strategy. The first one, the perseverance strategy, represents investment strategies in which long-term-oriented firms invest in lower return but equal risk projects than their more short-term-oriented counterparts. The second one, the outpacing strategy, comprises investment projects with higher risk and equal return than the short-term competitors.

scholarly journals Comparative Analysis of Executive Compensation in the Republic of Serbia and EU Countries

2019 ◽  
Vol 57 (2) ◽  
pp. 181-200
Author(s):  
Ivana Marinović Matović
Keyword(s):  
Comparative Analysis ◽  
Executive Compensation ◽  
High Capacity ◽  
Business Organization ◽  
Business Organizations ◽  
Short Term ◽  
Eu Countries ◽  
Strong Motivation ◽  
The Republic

AbstractExecutive compensations have a strong motivation role in contemporary business organizations. Adequate models of compensation enable attracting and retaining the high-capacity managers. This way, business organization conquers and maintains the competitive position in the context of globalization. It is necessary to align the executive compensation with the business organization’s strategy, which requires careful process of planning, done by the highest levels of management and ownership. The main objective of the paper is to explore and compare the structure and the level of executive compensation in the Republic of Serbia and EU countries. The paper focuses on executive compensation components, primarily long-term and short-term incentives, as well as sallary and benefits. A comparative analysis of executive compensation models was performed to explain the differences in the observed countries.The study found large and disproportionate differences in the executive compensation levels, conditioned mostly by the economic development of the observed economies.

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