Stock Option Compensation in Finland: An Analysis of Economic Determinants, Contracting Frequency, and Design

This paper addresses several questions in the compensation literature by examining stock option compensation practices of Finnish firms. First, the results indicate that principal-agent theory succeeds quite well in predicting the use of stock options. Proxies for monitoring costs, growth opportunities, ownership structure, and risk are found to determine the use of incentives consistent with theory. Furthermore, the paper examines whether determinants of stock options targeted to top management differ from determinants of broad-based stock option plans. Some evidence is found that factors driving these two types of incentives differ. Second, the results reveal that systematic risk significantly increases the likelihood that firms adopt stock option plans, whereas total firm risk and unsystematic risk do not seem to affect this decision. Third, the results show that growth opportunities are related to time-dimensional contracting frequency, consistent with the argument that incentive levels deviate more rapidly from optimum in firms with high growth opportunities. Finally, the results suggest that vesting schedules are decreasing in financial leverage, and that contract maturity is decreasing in firm focus. In addition, both vesting schedules and contract maturity tend to be longer in firms involving state ownership.

Moderneja ryijyjä, metritavaraa ja käsityötä : Tekstiilitaide ja nykyaikaistuva taideteollisuus Suomessa maailmansotien välisenä aikana

Modern ryijys, fabric by the yard and handicrafts. Finnish textile art and modernizing applied art during the inter-war years Textile art was in the 1920s and 1930s in the front rank of Finnish applied art and design. Modern ryijys, tapestries and fabrics by the yard by contemporary textile artists were on show in Finland and abroad. Textile art had also become interesting commercially, especially in interior textiles of modern homes. The research uses sources of the Ornamo Association of Decorative Artists, for example the Ornamo year books published from 1927, the Finnish Society of Crafts and Design and the country s only school of applied arts, the Central School of Arts and Crafts and the Museum of Applied Arts maintained by the society and also the national specialist organisation the Friends of Finnish Handicraft. It also refers to the magazines Käsiteollisuus and Kotiliesi. The art historical dissertation studies the renaissance of weaving art of the inter-war years in Finland. It problematizes the relation of the succesfull and appreciated textile art to the concept of breakthrough of Modernism (Functionalism). With the material from textile artists activities it questions the prevailing idea of slow modernization of Finnish applied art and design and challenges the polarization of craft and industry in the discourses of Modernisms of design. The public discussions about modernization of design and applied art where textile art and especially the ryijy got sometimes into difficult positions are interpreted as power struggles. After taking independence in 1917 the Finnish tradition of ryijy rugs was set as a symbol of the original culture of the young nation. The research studies the development of the so called art ryijy and the notions and meanings of hand weaving in the national context and also in relation to contemporary events in international applied art and design. It highlights the continuity of hand crafted production of textiles and the strong position of textile artists working in this field. The research opens new perspectives to Finnish textile artists by showing their activities as entrepreneurs in their own weaving studios or design studios and referring to their many relations and functions as pattern designers and educators in the growing handicraft industries.

Luonnoksia käsityön ruumiillisuudesta. : Käsityö Maurice Merleau-Pontyn ruumiinfenomenologian valossa.

Purpose This study focused on craft from a standpoint of phenomenological philosophy and craft was interpreted through Maurice Merleau-Ponty’s phenomenology of the body. The main focus was the physical phase of the craft process, wherein a product is made from material. The aim was to interpret corporality in craft. There is no former research focusing on lived body in craft science. Physical, bodily making is inalienable in craft, but it is not articulated. Recent discussion has focused on craft as ”whole”, which emphasizes designing part in the process, and craft becomes conceptualized with the theories of art and design. The axiomatic yet silenced basis of craft, corporality, deserves to become examined as well. That is why this study answers the questions: how craft manifests in the light of phenomenology of the body and what is corporality in craft? Methods In this study I cultivated a phenomenological attitude and turned my exploring eye on craft ”in itself”. In addition I restrained myself from mere making and placed myself looking at the occurrence of craft to describe it verbally. I read up Maurice Merleau-Ponty’s phenomenology of the body on his principal work (2002) and former interpretations of it. Interpreting and understanding textual data were based on Gadamer’s hermeneutics, and the four-pronged composition of the study followed Koski’s (1995) version of the Gadamerian process of textual interpretation. Conclusions In the construction of bodily phenomenology craft was to be contemplated as a mutual relationship between the maker and the world materializing in bodily making. At the moment of making a human being becomes one with his craft, and the connection between the maker, material and the equipment appears as communication. Operational dimension was distinctive in the intentionality of craft, which operates in many ways, also in craft products. The synesthesia and synergy of craft were emphasized and craft as bodily practice came to life through them. The moment of making appeared as situation generating time and space, where throwing oneself into making may give the maker an experience of upraise beyond the dualism of mind and body. The conception of the implicit nature of craft knowledge was strengthened. In the light of interpretation it was possible to conceptualize craft as a performance and making ”in itself” as a work of art. In that case craft appeared as bodily expression, which as an experience approaches art without being it after all. The concept of aesthetic was settled into making as well. Bodily and phenomenological viewpoint on craft gave material to critically contemplate the concept of “whole craft” (kokonainen käsityö) and provided different kind of understanding of craft as making.