Target difficulty, intra-year target revisions and firm performance: evidence from business units' targets

Target difficulty is often argued to increase performance. While this association is well established in experimental research, empirical evidence in field research is rather mixed. We attempt to explain this inconsistency by analyzing the importance of intra-year target revisions, which are especially prevalent in real-world field settings. Using survey and archival data from 97 firms, we find that firms with more challenging business unit targets revise targets more often, in line with asymmetric, downward target revisions. Results further show that the degree to which targets are revised during a period results in negative effects on firm performance, as the anticipation of revision negatively affects the business unit management’s performance incentives. Additionally, we find that using targets predominantly for either decision-making or control influences the overall performance effects of target revisions. Our findings may partially explain the mixed field study evidence regarding the effects of target difficulty.

Integration of WSNs into enterprise systems based on semantic physical business entities

Internet of Things based systems are anticipated to gain widespread use in industrial applications. Standardization efforts, like 6L0WPAN and the Constrained Application Protocol (CoAP) have made the integration of wireless sensor nodes possible using Internet technology and web-like access to data (RESTful service access). While there are still some open issues, the interoperability problem in the lower layers can now be considered solved from an enterprise software vendors' point of view. One possible next step towards integration of real-world objects into enterprise systems and solving the corresponding interoperability problems at higher levels is to use semantic web technologies. We introduce an abstraction of real-world objects, called Semantic Physical Business Entities (SPBE), using Linked Data principles. We show that this abstraction nicely fits into enterprise systems, as SPBEs allow a business object centric view on real-world objects, instead of a pure device centric view. The interdependencies between how currently services in an enterprise system are used and how this can be done in a semantic real-world aware enterprise system are outlined, arguing for the need of semantic services and semantic knowledge repositories. We introduce a lightweight query language, which we use to perform a quantitative analysis of our approach to demonstrate its feasibility.

Real-World Evaluation of Sensor Context-aware Adaptive Duty-cycled Opportunistic Routing

Energy is of primary concern in wireless sensor networks (WSNs). Low power transmission makes the wireless links unreliable, which leads to frequent topology changes. Resulting packet retransmissions aggravate the energy consumption. Beaconless routing approaches, such as opportunistic routing (OR) choose packet forwarders after data transmissions, and are promising to support dynamic features of WSNs. This paper proposes SCAD - Sensor Context-aware Adaptive Duty-cycled beaconless OR for WSNs. SCAD is a cross-layer routing solution and it brings the concept of beaconless OR into WSNs. SCAD selects packet forwarders based on multiple types of network contexts. To achieve a balance between performance and energy efficiency, SCAD adapts duty-cycles of sensors based on real-time traffic loads and energy drain rates. We implemented SCAD in TinyOS running on top of Tmote Sky sensor motes. Real-world evaluations show that SCAD outperforms other protocols in terms of both throughput and network lifetime.

Three Essays on Age and Firm Performance

Old captains at the helm: Chairman age and firm performance Urs Waelchli and Jonas Zeller December, 2012 This paper examines whether the chairmen of the board (COBs) impose their life-cycles on the firms over which they preside. Using a large sample of unlisted firms we find a robust negative relation between COB age and firm performance. COBs age much like ‘ordinary’ people. Their cognitive abilities deteriorate and they experience significant shifts in motivation. Deteriorating cognitive abilities are the main driver of the performance effect that we observe. The results imply that succession planning problems in unlisted firms are real. Mandatory retirement age clauses cannot solve these problems. Corporate Aging around the World Jonas Zeller January, 2014 This paper examines whether firms internationally age as US firms do (Loderer, Stulz, and Wälchli, 2013). Using a large panel, I find that Tobin’s Q monotonically falls with firm Age across all nineteen countries in the sample. The decrease varies across countries but is generally extremely robust and economically significant. ROA, sales growth, and market share decrease over a firm’s lifetime in most countries as well. Furthermore, older firms reduce their capital expenditures and R&D outlays. Instead, they distribute more cash to their shareholders. Overall, the results suggest that corporate aging is not confined to the US but is a genuine phenomenon that affects listed firms worldwide. This evidence supports the hypothesis that corporate aging is driven by managers who optimally focus on managing their assets in place and neglect the development of growth opportunities. I finally ask whether the managers’ choice and with it the magnitude of the decline in Tobin’s Q is a function of country-level institutional settings. I find that most notably firms age faster in countries where employees are relatively well protected by labor regulation. Is employment protection the fountain of corporate youth? Claudio Loderer, Urs Wälchli, Jonas Zeller* September 2014 Acharya, Baghai, and Subramanian (2012, 2013) find that employment protection legislation (EPL) encourages innovation. We argue that this effect should be particularly strong in mature firms. We would therefore also expect EPL to boost growth opportunities. Using the natural Experiment created by the staggered passage of changes in EPL across seventeen countries, we find evidence that employment protection legislation does indeed stimulate Innovation efforts, especially in mature firms. The effect is stronger in countries in which patents are owned by the firm and in the context of regular contracts. Consistent with that, EPL encourages risk taking. Overall, however, there is Little evidence that the effect of EPL on innovation effort translates into higher firm value, not even in mature firms. EPL does motivate employees in those firms to put in a greater effort, as evidenced by stronger sales growth. Yet it also increases costs, reduces profitability, and depresses Tobin’s Q ratios in all firms, especially the mature ones, possibly because of the rigidities that characterize these firms [Loderer, Stulz, and Waelchli (2014)].