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. ^

Earnings management using estimates and the timing of adoption of accounting standards: An empirical examination of pensions

This study investigates the relationship between adoption timing of Statement of Financial Accounting Standards 87 and earnings management after adoption. Earnings management, defined consistent with Schipper (1989), is tested through hypotheses using (1) a portfolio approach and (2) pension rates. One Hypothesis uses a Modified Jones (1991) Model as a proxy for discretionary accruals and the other uses pension rate estimates.^ Statistically significant relationships are found between adoption timing and (1) discretionary accruals and (2) estimated rate-of-return (ROR) on pension plan assets. Early adopting firms tend to have lower discretionary accruals after adoption than on-time adopters. They also tend to use higher ROR estimates which are not supported by higher actual returns. Thus, while early adopters may be using ROR to manage income, this tends to not result in higher discretionary accruals. ^

Employee engagement: An examination of antecedent and outcome variables

This nonexperimental, correlational study (N = 283) examined the relation among job fit, affective commitment, psychological climate, discretionary effort, intention to turnover, and employee engagement. An internet-based self-report survey battery of six scales were administered to a heterogeneous sampling of organizations from the fields of service, technology, healthcare, retail, banking, nonprofit, and hospitality. Hypotheses were tested through correlational and hierarchical regression analytic procedures. Job fit, affective commitment, and psychological climate were all significantly related to employee engagement and employee engagement was significantly related to both discretionary effort and intention to turnover. For the discretionary effort model, the hierarchical regression analysis results suggested that the employees who reported experiencing a positive psychological climate were more likely to report higher levels of discretionary effort. As for the intention to turnover model, the hierarchical regression analysis results indicated that affective commitment and employee engagement predicted lower levels of an employee’s intention to turnover. The regression beta weights ranged from to .43 to .78, supporting the theoretical, empirical, and practical relevance of understanding the impact of employee engagement on organizational outcomes. Implications for HRD theory, research, and practice are highlighted as possible strategic leverage points for creating conditions that facilitate the development of employee engagement as a means for improving organizational performance.

An Analysis on the Decline in the Authoritative Powers of the Papacy and its Application to Challenges to Authoritative Powers Faced By the Permanent Membership of the UN Security Council

The organizational authority of the Papacy in the Roman Catholic Church and the permanent membership of the UN Security Council are unique from institutions that are commonly compared with the UN, like the Concert of Europe and the League of Nations, in that these institutional organs possessed strong authoritative and veto powers. Both organs also owe their strong authority during their founding to a need for stability: The Papacy after the crippling of Western Roman Empire and the P-5 to deal with the insecurities of the post-WWII world. While the P-5 still possesses similar authoritative powers within the Council as it did after WWII, the historical authoritative powers of the Papacy within the Church was debilitated to such a degree that by the time of the Reformation in Europe, condemnations of practices within the Church itself were not effective. This paper will analyze major challenges to the authoritative powers of the Papacy, from the crowning of Charlemagne to the beginning of the Reformation, and compare the analysis to challenges affecting the authoritative powers of the P-5 since its creation. From research conducted thus far, I hypothesize that common themes affecting the authoritative powers of the P-5 and the Papacy would include: major changes in the institutions organization (i.e. the Avignon Papacy and Japan’s bid to become a permanent member); the decline in power of actors supporting the institutional organ (i.e. the Holy Roman Empire and the P-5 members); and ideological clashes affecting the institution’s normative power (i.e. the Great Western Schism and Cold War politics).

An Analysis on the Decline in the Authoritative Powers of the Papacy and its Application to Challenges to Authoritative Powers Faced By the Permanent Membership of the UN Security Council

The organizational authority of the Papacy in the Roman Catholic Church and the permanent membership of the UN Security Council are unique from institutions that are commonly compared with the UN, like the Concert of Europe and the League of Nations, in that these institutional organs possessed strong authoritative and veto powers. Both organs also owe their strong authority during their founding to a need for stability: The Papacy after the crippling of Western Roman Empire and the P-5 to deal with the insecurities of the post-WWII world. While the P-5 still possesses similar authoritative powers within the Council as it did after WWII, the historical authoritative powers of the Papacy within the Church was debilitated to such a degree that by the time of the Reformation in Europe, condemnations of practices within the Church itself were not effective. This paper will analyze major challenges to the authoritative powers of the Papacy, from the crowning of Charlemagne to the beginning of the Reformation, and compare the analysis to challenges affecting the authoritative powers of the P-5 since its creation. From research conducted thus far, I hypothesize that common themes affecting the authoritative powers of the P-5 and the Papacy would include: major changes in the institutions organization (i.e. the Avignon Papacy and Japan’s bid to become a permanent member); the decline in power of actors supporting the institutional organ (i.e. the Holy Roman Empire and the P-5 members); and ideological clashes affecting the institution’s normative power (i.e. the Great Western Schism and Cold War politics).

Estimation of average annual daily traffic (AADT) using geographically weighted regression (GWR) method and geographic information system (GIS)

Annual average daily traffic (AADT) is important information for many transportation planning, design, operation, and maintenance activities, as well as for the allocation of highway funds. Many studies have attempted AADT estimation using factor approach, regression analysis, time series, and artificial neural networks. However, these methods are unable to account for spatially variable influence of independent variables on the dependent variable even though it is well known that to many transportation problems, including AADT estimation, spatial context is important. ^ In this study, applications of geographically weighted regression (GWR) methods to estimating AADT were investigated. The GWR based methods considered the influence of correlations among the variables over space and the spatially non-stationarity of the variables. A GWR model allows different relationships between the dependent and independent variables to exist at different points in space. In other words, model parameters vary from location to location and the locally linear regression parameters at a point are affected more by observations near that point than observations further away. ^ The study area was Broward County, Florida. Broward County lies on the Atlantic coast between Palm Beach and Miami-Dade counties. In this study, a total of 67 variables were considered as potential AADT predictors, and six variables (lanes, speed, regional accessibility, direct access, density of roadway length, and density of seasonal household) were selected to develop the models. ^ To investigate the predictive powers of various AADT predictors over the space, the statistics including local r-square, local parameter estimates, and local errors were examined and mapped. The local variations in relationships among parameters were investigated, measured, and mapped to assess the usefulness of GWR methods. ^ The results indicated that the GWR models were able to better explain the variation in the data and to predict AADT with smaller errors than the ordinary linear regression models for the same dataset. Additionally, GWR was able to model the spatial non-stationarity in the data, i.e., the spatially varying relationship between AADT and predictors, which cannot be modeled in ordinary linear regression. ^

Armenia's foreign policy, 1991–2004: Between history and geopolitics

This dissertation is the first systematic study of Armenia’s foreign policy during the post-independence period, between 1991 and 2004. It argues that a small state’s foreign policy is best understood when looking at the regional level. Armenia’s geographic proximity to Iran, Russia and Turkey, places it in an area of heightened geopolitical interest by various great powers. This dissertation explores four sets of relationships with Armenia’s major historical ‘partners’: Russia, Iran, Turkey and the West (Europe and the United States). Each relationship reveals a complex reality of a continuous negotiation between ideas of history, collective memory, nationalism and geopolitics. A detailed study of Armenia’s relations with these powers demonstrates how actors’ relations of amity and enmity are formed to constitute a regional security complex. Turkey represents the ultimate “other”, while both Europe and Iran are seen as ideational “others”, whose role in Armenia’s foreign policy, aside from pragmatic policy considerations, reflects a normative quest. Russia and the United States, on the other hand, represent the powerful structural forces that define the regional security complex, in which Armenia operates. This dissertation argues that although Armenia has been severely constrained in certain foreign policy choices, it was adept at carving a space for action that privileged the issue of Nagorno-Karabakh over other geopolitical imperatives.

An examination of accounting and auditing issues related to strategic environmental initiatives

Although corporate environmental accountability is receiving unprecedented attention in the United States from policy makers, the capital market, and the public at large, extant research is limited in its examination of the implications of strategic corporate environmental initiatives on accounting and auditing. The purpose of my dissertation is to address these implications by examining the association between firm environmental initiatives and audit fees, capital expenditures, and earnings quality using multivariate regression analysis. I find that firms engaged in more strategic environmental initiatives tend to have significantly higher audit fees and capital expenditures, and significantly lower levels of earnings manipulation measured using discretionary accruals. These results support the notion that auditors do recognize the importance of environmental initiatives when conducting the year-end financial statement audit, an idea that positively reflects upon the auditor’s monitoring role. The results also demonstrate the increased amount of capital resources required to participate in strategic environmental initiatives, an anecdotal notion that had yet to be empirically supported. This empirical support provides valuable insights on how environmental initiatives materially impact corporate financial statements. Finally, my results extend the extant literature by demonstrating that the superior financial performance reported by environmentally active firms is less likely driven by earnings manipulation by management, and by implication, more likely a result of real economic gains. Taken together, my dissertation establishes a strong and timely foundation for current and future research to explore corporate environmental initiatives in the United States and globally, a topic increasingly gaining momentum in today’s more eco-conscious world.^

Latin America: Nuclear Capabilities, Intentions and Threat Perceptions

Three key states are relevant in considering future nuclear proliferation in Latin America: Argentina, Brazil, and Venezuela. Argentina and Brazil are critical because of their relatively advanced nuclear capabilities. For historical and geopolitical reasons, neither Argentina nor Brazil is likely to reactive nuclear weapons programs. Venezuela’s President, Hugo Chávez, has repeatedly demonstrated interest in developing a nuclear program, yet Venezuela lacks any serious nuclear expertise. Even if it had the managerial and technological capacity, the lead-time to develop an indigenous nuclear program would be measured in decades. Acquisition of nuclear technology from international sources would be difficult because members of the Nuclear Suppliers Group would insist on safeguards, and potential non-Nuclear Suppliers Group (NSG) suppliers are highly surveilled, risking the exposure of such a program before Venezuela could put a deterrent into place. While South American states have historically opposed nuclear weapons, their acquisition by Brazil and Argentina would lead to little more than diplomatic condemnation. Brazil and Argentina are both geopolitically satisfied powers that are deeply embedded in a regional security community. On the other hand, Venezuela under President Chávez is perceived as a revisionist power seeking a transformation of the international system. Venezuelan acquisition of nuclear weapons would be met with alarm by the United States and Colombia, and it would prompt nuclear weapons development by Brazil and possibly Argentina, more for reasons of preserving regional leadership and prestige than for fear of a Venezuelan threat.

Democracy promotion and Turkey

The dissertation documented the degree of Turkey's involvement in the promotion of democracy in the Arab Middle East (ME). Initially, I investigated why and under what conditions Turkey promotes democracy in the ME, and then I explained strategies through which Turkey promotes democracy in the region. I applied the neo-classical realist theoretical framework and a mixed methodology in the research, and I provided evidence from two sources: face-to-face interviews with the Turkish and foreign officials and common citizens, and the statistical data from institutions, such as the OECD, Turkish Statistical Institute, and World Bank.^ My research indicates that Turkey promotes democracy through seven channels. These channels are official development assistance (ODA), mentoring, demonstrative effect, normative pressure, conditionality, military power, enlargement, and civil society organizations. Turkey promotes democracy in the ME for three substantial reasons: first, to advance its security and economic interests; second, to improve the political, social, and economic conditions of people living in the region; and third, to create long-term regional stability, crucial for cooperation in economic and security realms.^ I attempted to engage in debates with two distinct, but interrelated fields of comparative politics and international relations. My most important contribution to the field is that I documented Turkey's case of democracy promotion regarding the degree of Turkey's involvement in this endeavor, its strategies, specificities, and effectiveness in the region. I also contribute to the field as I explained the difference between democracy promotion policies of a regional power, such as Turkey, and global powers, such as the US. I further engaged in discussions that illuminate some aspects of the interplay between the identity and strategic interests in states' foreign policy decisions.^

Identity, Ideology, and Cinema: Making Sense of Japan's Foreign and Security Policies in the 1950s and 2000s

Japan is an important ally of the United States–the world’s third biggest economy, and one of the regional great powers in Asia. Making sense of Japan’s foreign and security policies is crucial for the future of peace and stability in Northeast Asia, where the possible sources of conflict such as territorial disputes or the disputes over Japan’s war legacy issues are observed. This dissertation explored Japan’s foreign and security policies based on Japan’s identities and unconscious ideologies. It employed an analysis of selected Japanese films from the late 1940s to the late 1950s, as well as from the late 1990s to the mid-2000s. The analysis demonstrated that Japan’s foreign and security policies could be understood in terms of a broader social narrative that was visible in Japanese popular cultural products, including films and literatures. Narratives of Japanese families from the patriarch’s point of view, for example, had constantly shaped Japan’s foreign and security policies. As a result, the world was ordered hierarchically in the eyes of the Japan Self. In the 1950s, Japan tenaciously constructed close but asymmetrical security relations with the U.S. in which Japan willingly subjugated itself to the U.S. In the 2000s, Japan again constructed close relations with the U.S. by doing its best to support American responses to the 9/11 terrorist attacks by mobilizing Japan’s SDFs in the way Japan had never done in the past. The concepts of identity and unconscious ideology are helpful in understanding how Japan’s own understanding of self, of others, and of the world have shaped its own behaviors. These concepts also enable Japan to reevaluate its own behaviors reflexively, which departs from existing alternative approaches. This study provided a critical analytical explanation of the dynamics at work in Japan’s sense of identity, particularly with regard to its foreign and security policies.

Armenia's Foreign Policy, 1991-2004: Between History and Geopolitics

This dissertation is the first systematic study of Armenia’s foreign policy during the post-independence period, between 1991 and 2004. It argues that a small state’s foreign policy is best understood when looking at the regional level. Armenia’s geographic proximity to Iran, Russia and Turkey, places it in an area of heightened geopolitical interest by various great powers. This dissertation explores four sets of relationships with Armenia’s major historical ‘partners’: Russia, Iran, Turkey and the West (Europe and the United States). Each relationship reveals a complex reality of a continuous negotiation between ideas of history, collective memory, nationalism and geopolitics. A detailed study of Armenia’s relations with these powers demonstrates how actors’ relations of amity and enmity are formed to constitute a regional security complex. Turkey represents the ultimate “other”, while both Europe and Iran are seen as ideational “others”, whose role in Armenia’s foreign policy, aside from pragmatic policy considerations, reflects a normative quest. Russia and the United States, on the other hand, represent the powerful structural forces that define the regional security complex, in which Armenia operates. This dissertation argues that although Armenia has been severely constrained in certain foreign policy choices, it was adept at carving a space for action that privileged the issue of Nagorno-Karabakh over other geopolitical imperatives.

A model of school managerial control : the systematic analysis of managerial behaviors, processes, and indicators

The theoretical construct of control has been defined as necessary (Etzioni, 1965), ubiquitous (Vickers, 1967), and on-going (E. Langer, 1983). Empirical measures, however, have not adequately given meaning to this potent construct, especially within complex organizations such as schools. Four stages of theory-development and empirical testing of school building managerial control using principals and teachers working within the nation's fourth largest district are presented in this dissertation as follows: (1) a review and synthesis of social science theories of control across the literatures of organizational theory, political science, sociology, psychology, and philosophy; (2) a systematic analysis of school managerial activities performed at the building level within the context of curricular and instructional tasks; (3) the development of a survey questionnaire to measure school building managerial control; and (4) initial tests of construct validity including inter-item reliability statistics, principal components analyses, and multivariate tests of significance. The social science synthesis provided support of four managerial control processes: standards, information, assessment, and incentives. The systematic analysis of school managerial activities led to further categorization between structural frequency of behaviors and discretionary qualities of behaviors across each of the control processes and the curricular and instructional tasks. Teacher survey responses (N=486) reported a significant difference between these two dimensions of control, structural frequency and discretionary qualities, for standards, information, and assessments, but not for incentives. The descriptive model of school managerial control suggests that (1) teachers perceive structural and discretionary managerial behaviors under information and incentives more clearly than activities representing standards or assessments, (2) standards are primarily structural while assessments are primarily qualitative, (3) teacher satisfaction is most closely related to the equitable distribution of incentives, (4) each of the structural managerial behaviors has a qualitative effect on teachers, and that (5) certain qualities of managerial behaviors are perceived by teachers as distinctly discretionary, apart from school structure. The variables of teacher tenure and school effectiveness reported significant effects on school managerial control processes, while instructional levels (elementary, junior, and senior) and individual school differences were not found to be significant for the construct of school managerial control.

Inventing indigenous religious belief and practice within the spaces of Ghanaian Pentecostalism : the Mame Wata healing churches of Half Assini

Goddesses in African religions are spirits that affect humans and demand reverence from them. They are also embodiments of ideas that African people have about women, their powers and their roles in society. This study focused on Mame Wata, a goddess in Half Assini, an Nzema-speaking coastal community in western Ghana. It sought to resolve a paradox, that is, the fact that, the goddess is at the center of a Pentecostalist tradition even though traditional Pentecostalism in Ghana views her as an agent of the devil. The study involved fieldwork in this community of the goddess's female worshippers led by Agyimah, a charismatic man, and an agent of the goddess. The study interpreted the goddess as a post-colonial invented symbol personifying both pre-colonial and emerging ideas about female power. Findings from the study also show that through Mame Wata the followers celebrate the spirituality of the female.