The impact of CEO compensation and CEO horizon on a firm's discretionary research and development expenditures

Agency costs are said to arise as a result of the separation of ownership from control inherent in the corporate form of ownership. One such agency problem concerns the potential variance between the time horizons of principal shareholders and agent managers. Agency theory suggests that these costs can be alleviated or controlled through performance-based Chief Executive Officer (CEO) contracting. However, components of a CEO's compensation contract can exacerbate or mitigate agency-related problems (Antle and Smith, 1985). According to the horizon hypothesis, a self-serving CEO reduces discretionary research and development (R&D) expenditures to increase earnings and earnings-based bonus compensation. Agency theorists contend that a CEO's market-based compensation component can mitigate horizon problems. This study seeks to determine whether there is a relationship between CEO earnings- and market-based compensation components and R&D expenditures in the largest United States industrial firms from 1987 to 1993.^ Consistent with the horizon hypothesis, results provide evidence of a negative and statistically significant relationship between CEO cash compensation (i.e., salary and bonus) and the firm's R&D expenditures. Consistent with the expectations of agency theory, results provide evidence of a positive and statistically significant relationship between market-based CEO compensation and R&D.^ Further results of this study provide evidence of a positive and statistically significant relationship between CEO tenure and the firm's R&D expenditures. Although there is a negative relationship between CEO age and the firm's R&D, it was not statistically significant at the 0.5 level. ^

The impact of pre -training interventions on cognitive, skill, and affective learning outcomes: A meta -analytic examination of four decades of research

Technological advancements and the ever-evolving demands of a global marketplace may have changed the way in which training is designed, implemented, and even managed, but the ultimate goal of organizational training programs remains the same: to facilitate learning of a knowledge, skill, or other outcome that will yield improvement in employee performance on the job and within the organization (Colquitt, LePine, & Noe, 2000; Tannenbaum & Yukl, 1992). Studies of organizational training have suggested medium to large effect sizes for the impact of training on employee learning (e.g., Arthur, Bennett, Edens, & Bell, 2003; Burke & Day, 1986). However, learning may be differentially affected by such factors as the (1) level and type of preparation provided prior to training, (2) targeted learning outcome, (3) training methods employed, and (4) content and goals of training (e.g., Baldwin & Ford, 1988). A variety of pre-training interventions have been identified as having the potential to enhance learning from training and practice (Cannon-Bowers, Rhodenizer, Salas, & Bowers, 1998). Numerous individual studies have been conducted examining the impact of one or more of these pre-training interventions on learning. ^ I conducted a meta-analytic examination of the effect of these pre-training interventions on cognitive, skill, and affective learning. Results compiled from 359 independent studies (total N = 37,038) reveal consistent positive effects for the role of pre-training interventions in enhancing learning. In most cases, the provision of a pre-training intervention explained approximately 5–10% of the variance in learning, and in some cases, explained up to 40–50% of variance in learning. Overall attentional advice and meta-cognitive strategies (as compared with advance organizers, goal orientation, and preparatory information) seem to result in the most consistent learning gains. Discussion focuses on the most beneficial match between an intervention and the learning outcome of interest, the most effective format of these interventions, and the most appropriate circumstances under which these interventions should be utilized. Also highlighted are the implications of these results for practice, as well as propositions for important avenues for future research. ^

The self-perceived effects on faculty that result from the experience of serving in a residential college

The purpose of this phenomenological study was to examine the effects that faculty who live in residence with college students perceive result from their experience. This study examined the perspectives from current and recent residential faculty members. Data were gathered through structured interviews with current and former residential faculty who gave firsthand accounts of how they felt that experience impacted them. A pilot study had been previously conducted that enabled the researcher to modify and adjust the dissertation methodology accordingly, based upon the findings of the pilot study. The pilot study, in short, found that residential faculty members felt they gained from the experience in terms of relationships with students and other faculty while facing a few small challenges. Literature consistently showed that faculty-student interaction is very important to the development and success of students (Astin, 1993). Research has clearly demonstrated positive outcomes that result for students; the literature review revealed this information is plentiful. There is a dearth of research, however, regarding this impact on the faculty members themselves. Given the importance of faculty-student interaction outside of the classroom, it is crucial to recruit faculty for these communities. Thus, more information regarding this experience will be valuable. The study was conducted at a mid-sized private university in the Southeastern United States. The reason for this choice was the fact that this school has a 25-year history as a residential college system and utilizes 12–15 residential faculty members yearly. The researcher conducted interviews with 13 faculty members and coded and analyzed the data, then prepared the findings of the study based on the results. The data resulting from the study indicated that faculty perceived great benefits from serving as residential college faculty members. Perceived benefits as described by the participants included increased skill in teaching, feeling a sense of community, stronger relationships with other faculty members and students, and an increased affinity toward the university. While there were some challenges such as lack of training, politics, and loss of privacy all participants in the study felt they gained from the opportunity and would do it again in the same situation. This study enhanced the limited formal knowledge available regarding how faculty experience living in residential colleges with students.

Tagged tree broken as result of Hurricane Wilma, Shark River Slough

This material is based upon work supported by the National Science Foundation through the Florida Coastal Everglades Long-Term Ecological Research program under Cooperative Agreements #DBI-0620409 and #DEB-9910514. This image is made available for non-commercial or educational use only.