How Should Performance Signals Affect Contracts?

2021 ◽  
Author(s):  
Pierre Chaigneau ◽  
Alex Edmans ◽  
Daniel Gottlieb
Keyword(s):  
Performance Measures ◽  
Strike Price ◽  
Output Distribution ◽  
Industry Performance ◽  
Precise Measure ◽  
Informative Signals ◽  
Do So

Abstract The informativeness principle states that a contract should depend on informative signals. This paper studies how it should do so. Signals indicating that the output distribution has shifted to the left (e.g., weak industry performance) reduce the threshold for the manager to be paid; those indicating that output is a precise measure of effort (e.g., low volatility) decrease high thresholds and increase low thresholds. Surprisingly, “good” signals of performance need not reduce the threshold. Applying our model to performance-based vesting, we show that performance measures should affect the strike price, rather than the number of vesting options, contrary to practice.

scholarly journals Heart Failure Prognostication using Boosting Algorithms

2021 ◽  
Vol 9 (VI) ◽  
pp. 1964-1972
Author(s):  
Rachaell Nihalaani
Keyword(s):  
Heart Failure ◽  
Heart Disease ◽  
Performance Measures ◽  
Public Library ◽  
Gradient Boosting ◽  
Medical Field ◽  
Boosting Algorithms ◽  
Do So

In the medical field, predicting a heart disease has become a very complicated and challenging task. So, in this contemporary lifestyle, there is an urgent need for a system that will help predict accurately the possibility of getting heart disease. This paper presents an observation-based comparison between four boosting algorithms namely Gradient boosting, XGBoost, ADAboost and CatBoost to predict heart failure efficiently. To do so, we have referred to the PLOS (Public Library of Science) Repository dataset. These algorithm’s performances have been evaluated using metrics like Accuracy, F1 score, Recall and many more. All values obtained ensured the superiority of these boosting algorithms based on several performance measures.

Effect of SCF on automobile industry performance during sales promotional schemes

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sricharan Chirra ◽  
Dinesh Kumar
Keyword(s):  
Supply Chain ◽  
Performance Measures ◽  
Automobile Industry ◽  
Contact Method ◽  
Chain Flexibility ◽  
Content Type ◽  
Supply Chain Flexibility ◽  
Industry Performance ◽  
Interpretive Ranking Process ◽  
And Performance

PurposeIn today's competitive market subject to various uncertainties, supply chain flexibility (SCF) arose as a potential weapon to enhance the firm's performance. This paper model the effect of SCF on automobile industry performance during sales promotional schemes (SPS), which has turned out to be one of the most important marketing tools.Design/methodology/approachIn view of the literature and the expert opinion taken from an automobile OEM, the SCFs and performance measures pertaining to the SPS environment have been identified. For the purpose of ranking the SCFs with respect to the performance measures, the Interpretive Ranking Process (IRP) has been applied using the direct contact method as a means for establishing the contextual relationships between SCFs and performance measures and to draw the interpreting reasons behind them.FindingsThe findings of this study along with the validity and stability of the results assessed through the system graphs and sensitivity analysis demonstrate that flexibility at the procurement end followed by the organizational end has the highest impact on the performance of the company during SPS.Originality/valueAnalysis of SCFs in regard to performance measures during SPS helps improve supply chain performance and offer valuable insights to the practicing managers in decision-making. This study augments the flexibility literature, by clubbing the two independent research streams, SCF and SPS.

The Influence of CEO Power on Compensation Contract Design

2014 ◽  
Vol 90 (4) ◽  
pp. 1265-1306 ◽  
Author(s):  
Margaret A. Abernethy ◽  
Yu Flora Kuang ◽  
Bo Qin
Keyword(s):  
Executive Compensation ◽  
Performance Measures ◽  
Stock Option ◽  
Data Availability ◽  
Ceo Power ◽  
Performance Targets ◽  
Public Pressure ◽  
Ceo Pay ◽  
The Impact ◽  
Do So

ABSTRACT We investigate whether CEO power influences a firm's decision to change its compensation system in response to regulatory and public pressure. In particular, we assess whether CEO power influences the choice of performance measures as a form of camouflage to minimize the impact of these reforms on their wealth. We examine one component of CEO pay, namely, the use of performance-vested stock option (PVSO) plans, and find that firms with powerful CEOs attach less challenging targets in the initial PVSOs granted to their CEOs. Such firms also appear to adopt PVSO plans early, and are more likely to do so when faced with public outrage over executive compensation. Our results suggest that powerful CEOs attempt to appease public outrage by quickly adopting PVSOs, but that adopting PVSOs early does not appear to be an optimal strategy for increasing shareholder value. Regulators intended that implementation of PVSOs would be beneficial to shareholders by improving the link between CEO pay and firm performance. However, our results indicate that powerful CEOs can negate some of the beneficial effect of PVSOs through their influence on adoption and choice of performance targets. Data Availability: All data used in this study are publicly available from the sources indicated in the paper.

In Situ Driving Performance and the Alcohol Impaired Driver

1977 ◽  
Vol 21 (6) ◽  
pp. 548-552
Author(s):  
David K. Damkot
Keyword(s):  
Performance Measures ◽  
Young Male ◽  
Lateral Position ◽  
Double Standard ◽  
Driving Performance ◽  
Blood Alcohol ◽  
Unobtrusive Measures ◽  
Rural Sites ◽  
Do So

Blood alcohol concentrations (BACs), interview data, and unobtrusive measures of driving performance were obtained on public highways at 42 rural sites. Special data acquisition and recording systems were developed to obtain analog records of speed and lateral position electronically. Interview results confirmed that young male motorists are an important population-at-risk, but older male and female liquor drinkers are also prevalent. A double standard exists regarding attitudes toward beer and liquor, especially among younger males. Driving performance measures indicated that drivers with .08–.149 BAC react with caution to unexpected situations, but are less able to smoothly come to a stop when directed to do so.

Doing well by doing good: can voluntary CSR reporting enhance financial performance?

2019 ◽  
Vol 11 (2) ◽  
pp. 100-119 ◽  
Author(s):  
Avinandan Mukherjee ◽  
Rosita Nuñez
Keyword(s):  
Financial Performance ◽  
Performance Measures ◽  
Environmental Risk ◽  
Significant Relationship ◽  
Content Type ◽  
Csr Reporting ◽  
Financial Performance Measures ◽  
The Relationship ◽  
Risk Ratios ◽  
Do So

Purpose Management is sometimes challenged by investors to justify the financial benefits of voluntary disclosure and transparency related to corporate social responsibility (CSR). Researchers have found inconsistent results when examining the relationship between CSR reporting and financial performance. The purpose of this paper is to explore the relationship between voluntary CSR reporting and financial performance. Specifically, this paper addresses three questions. First, is there a significant difference in Global Reporting Initiative (GRI) reporting level for firms in a high environmental risk sector compared to those in a low environmental risk sector? Second, does GRI reporting level significantly influence financial performance measures, such as the risk ratios and information ratio? And third, does the relationship between GRI reporting level and financial performance measures differ significantly based on sector environmental risk? These questions are particularly relevant to the Indian business environment, where CSR is not just voluntary but mandated by regulation since 2013. The Indian Government is the first to do so and is ahead of many nations in collaborating with businesses to address not just environmental impacts but also social effects of industry on the community. Design/methodology/approach This study examined the relationship between GRI reporting level and financial performance for 173 firms with different levels of environmental risk. ANOVA and MANOVA were used to examine for differences in GRI reporting level and financial performance for firms from the various sectors and also to determine if there were significant relationships between GRI level and certain financial risk ratios. Findings Results indicate that firms in sectors with high environmental risk adopt GRI framework at a higher level than firms with low environmental risk. There is no significant relationship found between GRI reporting and financial performance at an aggregate level. However, environmental risk is found to moderate the relationship between GRI reporting and financial reporting, such that firms with high risk experience a more significant relationship between the GRI level that is adopted and financial performance. Originality/value CSR is quickly becoming a pathway to sustainable competitive advantage for businesses today. Such CSR efforts can lead to both reputational and financial performance implications. Organizations not only adopt CSR in response to regulatory requirements, but also frequently do so voluntarily to address stakeholder concerns. This study sheds valuable insight on the positive effects of CSR reporting, which provides important implications for Indian organizations.

Spatial agglomeration and specialization in emerging markets

2019 ◽  
Vol 29 (3) ◽  
pp. 236-252 ◽  
Author(s):  
Mathieu Resbeut ◽  
Philippe Gugler ◽  
Danuvasin Charoen
Keyword(s):  
Emerging Markets ◽  
Performance Measures ◽  
Design Methodology ◽  
Emerging Market ◽  
Content Type ◽  
Developed Economies ◽  
Industry Performance ◽  
The Impact ◽  
Cluster Mapping

Purpose The paper aims to investigate the role of specialization and agglomeration forces on industry performance in an emerging market, namely, Thailand. In particular, the impact of clusters and the influence of complexity will be tackled. Design/methodology/approach The methodology used is based on the work of Delgado et al. (2014). Industries and clusters are assigned to a certain category according to their respective level of specialization and complexity. Performance measures are then computed for each category. Findings It was found that the agglomeration of similar industries and co-located and related industries increase the performance of firms in terms of gross output per employee and remuneration per employee. Moreover, the increase of performance induced by the complexity level of an industry was closely related to the level of specialization. Originality/value Building on a cluster mapping, this study brings new insight on the effect of specialization and agglomeration on performance in emerging markets. In fact, the paper show how performance can be enhanced in less sophisticated and developed economies.

Holding replication studies to mainstream standards of evidence

2018 ◽  
Vol 41 ◽  
Author(s):  
Duane T. Wegener ◽  
Leandre R. Fabrigar
Keyword(s):  
Replication Studies ◽  
Replication Research ◽  
Standards Of Evidence ◽  
Do So

AbstractReplications can make theoretical contributions, but are unlikely to do so if their findings are open to multiple interpretations (especially violations of psychometric invariance). Thus, just as studies demonstrating novel effects are often expected to empirically evaluate competing explanations, replications should be held to similar standards. Unfortunately, this is rarely done, thereby undermining the value of replication research.

Electron Microscopy of a Herpesvirus Isolated from Marek's Disease in Duck and Chicken Embryo Fibroblast Cultures

1968 ◽  
Vol 26 ◽  
pp. 222-223 ◽  
Author(s):  
Keyvan Nazerian
Keyword(s):  
Inclusion Bodies ◽  
Chicken Embryo Fibroblast ◽  
Marek's Disease ◽  
Marek’S Disease ◽  
Duck Embryo Fibroblast ◽  
Multinucleated Cells ◽  
Viral Particles ◽  
Infected Cells ◽  
And Control ◽  
Do So

A herpes-like virus has been isolated from duck embryo fibroblast (DEF) cultures inoculated with blood from Marek's disease (MD) infected birds. Cultures which contained this virus produced MD in susceptible chickens while virus negative cultures and control cultures failed to do so. This and other circumstantial evidence including similarities in properties of the virus and the MD agent implicate this virus in the etiology of MD.Histochemical studies demonstrated the presence of DNA-staining intranuclear inclusion bodies in polykarocytes in infected cultures. Distinct nucleo-plasmic aggregates were also seen in sections of similar multinucleated cells examined with the electron microscope. These aggregates are probably the same as the inclusion bodies seen with the light microscope. Naked viral particles were observed in the nucleus of infected cells within or on the edges of the nucleoplasmic aggregates. These particles measured 95-100mμ, in diameter and rarely escaped into the cytoplasm or nuclear vesicles by budding through the nuclear membrane (Fig. 1). The enveloped particles (Fig. 2) formed in this manner measured 150-170mμ in diameter and always had a densely stained nucleoid. The virus in supernatant fluids consisted of naked capsids with 162 hollow, cylindrical capsomeres (Fig. 3). Enveloped particles were not seen in such preparations.

Debates in Dysphagia Management: How Do You Use Evidence-Based Practice in Your Dysphagia Patient Care?

2011 ◽  
Vol 20 (4) ◽  
pp. 121-123
Author(s):  
Jeri A. Logemann
Keyword(s):  
Decision Making ◽  
Patient Care ◽  
Clinical Outcomes ◽  
Clinical Judgment ◽  
Clinical Decision Making ◽  
Evidence Based Practice ◽  
Clinical Decision ◽  
Evidence Based ◽  
Clinical Method ◽  
Do So

Evidence-based practice requires astute clinicians to blend our best clinical judgment with the best available external evidence and the patient's own values and expectations. Sometimes, we value one more than another during clinical decision-making, though it is never wise to do so, and sometimes other factors that we are unaware of produce unanticipated clinical outcomes. Sometimes, we feel very strongly about one clinical method or another, and hopefully that belief is founded in evidence. Some beliefs, however, are not founded in evidence. The sound use of evidence is the best way to navigate the debates within our field of practice.

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