The Costs and Benefits of Long-Term CEO Contracts

Author(s):  
Moqi Xu

2020 ◽  
Author(s):  
Anthony D Mancini

In this commentary, I argue that the mental health impact of COVID-19 will show substantial variation across individuals, contexts, and time. Further, one key contributor to this variation will be the proximal and long-term impact of COVID-19 on the social environment. In addition to the mental health costs of the pandemic, it is likely that a subset of people will experience improved social and mental health functioning.



Author(s):  
David M. Willumsen

The central argument of this book is that voting unity in European legislatures is not primarily the result of the ‘disciplining’ power of the leadership of parliamentary parties, but rather the result of a combination of ideological homogeneity through self-selection into political parties and the calculations of individual legislators about their own long-term benefits. Despite the central role of policy preferences in the subsequent behaviour of legislators, preferences at the level of the individual legislator have been almost entirely neglected in the study of parliaments and legislative behaviour. The book measures these using an until now under-utilized resource: parliamentary surveys. Building on these, the book develops measures of policy incentives of legislators to dissent from their parliamentary parties, and show that preference similarity amongst legislators explains a very substantial proportion of party unity, yet alone cannot explain all of it. Analysing the attitudes of legislators to the demands of party unity, and what drives these attitudes, the book argues that what explains the observed unity (beyond what preference similarity would explain) is the conscious acceptance by MPs that the long-term benefits of belonging to a united party (such as increased influence on legislation, lower transaction costs, and better chances of gaining office) outweigh the short-terms benefits of always voting for their ideal policy outcome. The book buttresses this argument through the analysis of both open-ended survey questions as well as survey questions on the costs and benefits of belonging to a political party in a legislature.



PeerJ ◽  
2019 ◽  
Vol 7 ◽  
pp. e6535 ◽  
Author(s):  
Jennifer L. Snekser ◽  
Murray Itzkowitz

Monogamy can be either long-term or serial, with new pairs formed with each breeding bout. Costs and benefits are associated with each strategy. Because biparental convict cichlids (Amatitlania nigrofasciata) typically switch mates, exhibiting serial monogamy, we tested for the costs associated with forcing individuals to remain with the same mate. Convict cichlids were observed over two successive breeding bouts, either with the same or a new, equally experienced, mate. Parental behavior did not differ between breeding bouts, nor did brood size. Surprisingly, fish that remained with their original partner for a second bout took significantly longer to produce a brood compared to fish that paired with new partners. New partners were also more likely to successfully produce a second brood than re-mated partners. This is in contrast to the majority of bird studies that show many benefits to staying with the same partner for multiple broods. In convict cichlids, there seems to be no benefit associated with remaining with the same partner and switching mates reduces duration between broods for both males and females, potentially increasing overall reproductive success.



Author(s):  
J. Boyce

Genetic diversity in crop plants is crucial for long-term world food security. This diversity is sustained in the field primarily by poor farmers in developing countries, who receive no compensation for providing this external benefit to humankind. When agricultural imports displace local production in centers of genetic diversity, this threatens both rural livelihoods and the continued provision of this external benefit. The North American Free Trade Agreement’s impact on Mexican maize farming illustrates the problem. The prospects for remedial policies are shaped by the distribution of the costs and benefits of action of inaction.



2019 ◽  
Vol 55 (6) ◽  
pp. 1757-1791 ◽  
Author(s):  
Peter Cziraki ◽  
Moqi Groen-Xu

We study the role of the contractual time horizon of chief executive officers (CEOs) for CEO turnover and corporate policies. Using hand-collected data on 3,954 fixed-term CEO contracts, we show that remaining time under contract predicts CEO turnover. When contracts are close to expiration, turnover is more likely and is more sensitive to performance. We also show a positive within-CEO relation between remaining time under contract and firm risk. Our results are similar across short and long contracts and are driven neither by firm or CEO survival, nor technological cycles. They are consistent with incentives to take long-term projects with interim volatility.



Author(s):  
Kristine Durkin ◽  
Desireé N Williford ◽  
Nicholas A Turiano ◽  
Melissa D Blank ◽  
Paul T Enlow ◽  
...  

Abstract Objective Prior research identified peer use as a salient risk factor of adolescent electronic cigarette (e-cigarette) use, but has not expanded on the mechanisms of this association. Methods Participants were 562 adolescents recruited from rural and suburban public high schools and an adolescent medicine clinic in the mid-Atlantic United States. Participants completed a packet of questionnaires that assessed demographics, substance use, expectations about the consequences of e-cigarette use, and perceptions of their own self-efficacy to resist using e-cigarettes. We estimated a series of mediation models using the MODEL INDIRECT command in MPLUS statistical software. In all models, significance of indirect effects from peer e-cigarette use to self-reported e-cigarette use were tested via two variables: (a) expected costs, (b) benefits of e-cigarette use, and (c) the perceived self-efficacy of the individual to refrain from e-cigarette use. Results Adolescents with more peers using e-cigarettes were more likely to have ever used an e-cigarette and perceived greater benefits and fewer costs, which was associated with a reduced self-efficacy to refrain from e-cigarette smoking (Model 1). Those with more peers using e-cigarettes were more likely to be currently using e-cigarettes themselves because they perceived greater benefits and fewer costs, which was associated with a reduced self-efficacy to refrain from e-cigarette smoking (Model 2). Conclusion Peer use, self-efficacy to resist use, and expectations of cost and benefits of e-cigarette use should be considered as possible targets when devising tailored interventions and policies to prevent or reduce negative health consequences of long-term e-cigarette use.



2016 ◽  
Vol 80 (3) ◽  
pp. 745-763 ◽  
Author(s):  
Stineke van Houte ◽  
Angus Buckling ◽  
Edze R. Westra

SUMMARYBacteria have a range of distinct immune strategies that provide protection against bacteriophage (phage) infections. While much has been learned about the mechanism of action of these defense strategies, it is less clear why such diversity in defense strategies has evolved. In this review, we discuss the short- and long-term costs and benefits of the different resistance strategies and, hence, the ecological conditions that are likely to favor the different strategies alone and in combination. Finally, we discuss some of the broader consequences, beyond resistance to phage and other genetic elements, resulting from the operation of different immune strategies.







2020 ◽  
Vol 6 (1) ◽  
pp. 53-62
Author(s):  
Muhammad Sajid Amin ◽  
Hashim Khan ◽  
Imran Abbas Jaddon ◽  
Muhammad Tahir

Purpose: Firms have different costs and benefits and asymmetric information across their life cycle stages and hence each stage has different financial pattern and speed of adjustment towards target capital. Methodology: We use System GMM to test the hypotheses. We use market leverages proxies for the capital structure, life cycle proxies: introduction, growth, mature, shakeout and decline and the control determinants of capital structure such as profitability, tangibility, firm size and growth opportunities. We estimate the financial pattern and speed of adjustment along life cycle stages of manufacturing firms from eleven Asian economies over the period of 2010-2018. Findings: The results show that firms in earlier stages have more long term debt than mature stage. The speed of adjustment towards target capital structure is highest in mature stage than the other stages. The control determinants significantly affect market leverages. Implications: The findings suggest that management has to consider life cycle stages of their firms in order to adjust capital structure. Stockholders should consider stage of firm with relation to profitability and capital structure for long term prospects.



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