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. ^

Adult education directors' perceptions of performance indicators for adult education programs in the state of Florida

Current demands for accountability in education emphasize outcome-based program evaluation and tie program funding to individual student performance. As has been the case for elementary and secondary programs, demands for accountability have increased pressure on adult educators to show evidence of the benefits of their programs in order to justify their financial support. In Florida, recent legislation fundamentally changes the delivery of adult education in the state by establishing a performance-based funding system that is based on outcomes related to the retention, completion, and employment of program participants.^ A performance-based funding system requires an evaluation process that stresses outcome indicators over indicators that focus on program context or process. Although the state has adopted indicators of program quality to evaluate its adult education programs, these indicators focus mostly on program processes rather than student outcomes. In addition, the indicators are not specifically tied to workforce development outcomes, a priority to federal and local funding agents.^ Improving the accountability of adult education programs and defining the role of these programs in Florida's Workforce Development System has become a priority to policy makers across the state. Another priority has been to involve adult education practitioners in every step of this process.^ This study was conducted in order to determine what performance indicators, as judged by the directors and supervisors of adult education programs in the state of Florida, are important and feasible in measuring the quality and effectiveness of these programs. The results of the study indicated that, both statewide and by region, the respondents consistently gave the highest ratings on both importance and feasibility to the indicators of Program Context, which reflect the needs, composition, and structure of the programs, and to the indicators of Educational Gain, which reflect learner progress in the attainment of basic skills and competencies. In turn, the respondents gave the lowest ratings on both importance and feasibility to the indicators in the areas of Return on State's Investment, Efficiency, Retention, and Workforce Training. In general, the indicators that received high ratings for importance also received high ratings for feasibility. ^

The relationship of student and teacher variables on academic achievement in Florida schools

Since 1995, Florida has been one of the leading states in the country initiating a high-stakes school accountability system. Public schools in Florida receive letter grades based on their performance on the Florida Comprehensive Assessment Test (FCAT). These school grades have significant effects on schools' reputations and funding. Consequently, the plan has been criticized for grading all schools in the same manner, without taking into account such variables as student poverty and mobility rates which are beyond the control of the school. ^ The purpose of this study was to examine the relationship of student variables (poverty and mobility rates) and teacher variables (average years of teacher experience and attained degree level) on FCAT math and reading performance. This research utilized an education production function model to examine which set of inputs (student or teacher) has a stronger influence on student academic output as measured by the FCAT. ^ The data collected for this study was from over 1500 public elementary schools in Florida that listed all pertinent information for 2 school years (1998/1999 & 1999/2000) on the Florida Department of Education's website. ^ It was concluded that student poverty, teacher average years of experience and student mobility taken together, provide a strong predictive measure of FCAT reading and math performance. However, the set of student inputs was significantly stronger than the teacher inputs. High student poverty was highly correlated with low FCAT scores. Teacher experience and student mobility rates were not nearly as strongly related to FCAT scores as was student poverty. The results of this study provide evidence for educators and other school stakeholders of the relative degree to which student and teacher variables are related to student academic achievement. The underlying reasons for these relationships will require further examination in future studies. These results raise questions for Florida's school policymakers about the educational equity of the state's accountability system and its implementation. ^

The effect of the business cycle on the performance of socially responsible equity mutual funds

The current study applies a two-state switching regression model to examine the behavior of a hypothetical portfolio of ten socially responsible (SRI) equity mutual funds during the expansion and contraction phases of US business cycles between April 1991 and June 2009, based on the Carhart four-factor model, using monthly data. The model identified a business cycle effect on the performance of SRI equity mutual funds. Fund returns were less volatile during expansion/peaks than during contraction/troughs, as indicated by the standard deviation of returns. During contraction/troughs, fund excess returns were explained by the differential in returns between small and large companies, the difference between the returns on stocks trading at high and low Book-to-Market Value, the market excess return over the risk-free rate, and fund objective. During contraction/troughs, smaller companies offered higher returns than larger companies (ci = 0.26, p = 0.01), undervalued stocks out-performed high growth stocks (h i = 0.39, p <0.0001), and funds with growth objectives out-performed funds with other objectives (oi = 0.01, p = 0.02). The hypothetical SRI portfolio was less risky than the market (bi = 0.74, p <0.0001). During expansion/peaks, fund excess returns were explained by the market excess return over the risk-free rate, and fund objective. Funds with other objectives, such as balanced funds and income funds out-performed funds with growth objectives (oi = −0.01, p = 0.03). The hypothetical SRI portfolio exhibited similar risk as the market (bi = 0.93, p <0.0001). The SRI investor adds a third criterion to the risk and return trade-off of traditional portfolio theory. This constraint is social performance. The research suggests that managers of SRI equity mutual funds may diminish value by using social and ethical criteria to select stocks, but add value by superior stock selection. The result is that the performance of SRI mutual funds is very similar to that of the market. There was no difference in the value added among secular SRI, religious SRI, and vice screens.

Does Financial Performance Depend on Hotel Size? Analysis of the Financial Profile of the U.S. Lodging Industry

This research presents a financial profile of the U.S. Lodging Industry based on an analysis of 2,091 financial statements (fiscal year 2011) for individual hotels ranging in asset size of $500 thousand to $250 million. The study analyzes summary results of the financial position and profitability of hotels based on a common size analysis of Balance Sheets and Income Statements. Furthermore, the study analyzes 10 key performance benchmarks as measured by Liquidity, Solvency and Operating Ratios. The results of the study show a divergence in the hotel industry’s financial performance based on the size of the hotel and by upper, median and lower quartiles of the study sample.

Applied Research Sport Experiences, Milestones, and Educational Activities Associated With High-Performance Coaches' Development

What experiences are needed to become a high-performance coach? The present study addressed this question through structured retrospective quantitative interviews with 10 team- and 9 individual-sport coaches at the Canadian interuniversity-sport level. Minimum amounts of certain experiences were deemed necessary but not sufficient to become a high-performance coach (e.g., playing the sport they now coach and interaction with a mentor coach for all coaches, leadership opportunities as athletes for team-sport coaches only). Although coaches reported varying amounts of these necessary experiences, general stages of high-performance coach development were traced. Findings serve to identify and support potential high-performance coaches and increase the effectiveness of formal coaching-education programs.

Importância da certificação ISO 9001 na performance das empresas de transportes em Portugal

Mestrado em Gestão e Estratégia Industrial

Towards a 21st-century roadmap for biomedical research and drug discovery: consensus report and recommendations

Decades of costly failures in translating drug candidates from preclinical disease models to human therapeutic use warrant reconsideration of the priority placed on animal models in biomedical research. Following an international workshop attended by experts from academia, government institutions, research funding bodies, and the corporate and nongovernmental organisation (NGO) sectors, in this consensus report, we analyse, as case studies, five disease areas with major unmet needs for new treatments. In view of the scientifically driven transition towards a human pathway-based paradigm in toxicology, a similar paradigm shift appears to be justified in biomedical research. There is a pressing need for an approach that strategically implements advanced, human biology-based models and tools to understand disease pathways at multiple biological scales. We present recommendations to help achieve this.

Fallen Awake

Photo from process: David Megarrity, albury 2007 - example of convergence of writing/design/perfomance/video RESEARCH COMPONENT Fallen Awake was a practice-led research process that opened the development process to the influence of collaborative authorship across artforms. The project focused on of how multiple artforms and artists converge their vision into a singular text, in the context of collaborative authorship. The work also uncovered new questions relating to the dream-life of children. The stimulus for the work was a selection of verbal statements by three-year-olds, raising complex ethical questions as the project progressed about the child’s voice, mediated by the adult artist, for the eventual presentation to a child audience. With the text emergent and open to influence, this project raised other questions related to the lived experience of children, dreaming, creative play and the development of consciousness. It pushed the creative process to experiment with associative, rather then causal narratives, and to negotiate the challenges this raises for traditional story structures and the development processes that usually shape them. It led to the consideration of each artforms and artist as equal contributors in the development of story: traditionally the province of the sole author. The outcomes appeared in various artforms, none of which was live-performance based. An ‘artist’s book’ by the designer, a ‘video treatment’ - a DVD capturing the approach to the performance and a script for an innovative large-scale performance. Fallen Awake was developed with the assistance of Strut & Fret Production House, Arts Queensland, and HotHouse Theatre, Albury Wodonga, through their ‘Month in the Country’ initiative.

Medeleven

Medeleven was a practice-based research work that challenged conventional notions of how audiences ‘experience’ contemporary dance. It resulted in a 40 minute ‘experiential’ performance that inverted the traditional ‘passive’ presentation paradigm by situating the audience centrally within the creative process. The ‘traditional presentation paradigm’ was inverted in numerous ways including: asking the audience onstage with the performers, placing swings onstage for the audience to play on during the performance and guiding the audience through backstage corridors before entering onstage – all of which added elements of physicality, agency and liminality to the performance not usually available to audience members of contemporary dance. Five dancers moved throughout the space allowing the audience to choose where and how they engaged with this work and the swings were utilised both as a performance space and for audience seating. In addition to these spatial variations, the quadraphonic soundscore created distinct ‘environments’ throughout the stage space that varied individual experience possibilities. By positing performance as an experiential phenomenon, the pivotal objective of this work was to create a live-art experience that extended its performativity to include audience members as active meaning-makers, challenging both their role within this paradigm and their expectations of contemporary dance. The work produced strong responses from the audience with surveys indicating the presentation format, as well as the construction of the work, changed audience experience and ability to connect with the dance work. The research suggested that, in addition to existing research on dance audiences, barriers to engagement with contemporary dance may include how the art is constructed and where the audience is positioned within that creative framework. The research builds upon artistic practices being undertaken throughout the world that challenge the notion of existing ‘passive’ performance paradigms via creative ‘engagement’ with audience.

Enhancing research and development: designing collaborative environments for innovation

Work environments have previously been studied to identify the strategies, structures and processes which increase the likelihood of creativity, innovation and collaboration for productive workplaces. A number of perspectives have emerged which identify social and cognitive factors known to contribute to or to restrict innovation and collaboration. Recently more attention has been given to designing physical environments to encourage processes relevant to innovation such as creativity (McCoy & Evans, 2002) knowledge sharing (Hemlin, Allwood & Martin, 2008) and collaboration (Bozeman & Corley, 2004). Some attention has been given specifically to research and development environments (Boutellier et al, 2008) but little integration of this research has occurred. In the context of the construction of new purpose-built premises which will bring together under one roof separate public sector agencies engaged in research and development in agriculture, natural resource systems and the environment, this paper examines the extant literature and develops initial propositions for research relevant to the transition, collaboration and performance of research and development in new organizational environments where traditional boundaries have been redrawn.

How to achieve sustainability : regulatory challenges

The importance of designing sustainable buildings is gaining greater acceptance worldwide. Evidence of this is how regulators are incorporating sustainable design principles into building regulations and requirements. The aim being to increase the number of sustainable buildings and move from a traditional voluntary compliance to one that is mandatory. However, developing regulations that actually achieve these aims can be a difficult exercise. Several countries in South East Asia, such as Singapore and Malaysia, have performance based building regulations that are supplemented by prescriptive measures for achieving the desired performance. Australia too has similar building regulations and has had energy efficiency regulations within the Building Code of Australia for over a decade. This paper explores some of the difficulties and problems that Australian regulators have experienced with the performance-based method and the prescriptive or “deemed-to-comply” method and measures that have been taken to try and overcome these problems. These experiences act as a useful guide to all regulators considering the incorporation of sustainable design measures into their countries building regulations. The paper also speculates on future environmental requirements being incorporated into regulations, including the possibility of non-residential buildings being required to meet minimum energy efficiency requirements, and the possible systems that would need to be in place before such requirements were included. Finally, the paper looks at a possible way forward using direct assessment from electronic designs and introduces several software tools that are currently being developed that move towards achieving this goal. Keywords: Sustainable buildings, Performance-based, Regulations, Energy efficiency, Assessment tools.

FM as a Business Enabler

As a functioning performing arts centre, commercial enterprise, tourist attraction and major national asset, Sydney Opera House must continue to demonstrate the optimal use and effectiveness of its facilities management (FM) to provide value for its stakeholders. To better achieve this, the Cooperative Research Centre for Construction Innovation focussed on the following three themes for investigation in the FM Exemplar Project — Sydney Opera House: digital modelling — developing a building information model capable of integrating information from disparate software systems and hard copy, and combining this with a spatial 3D computeraided design (CAD)/geographic information system (GIS) platform. This model offers a visual representation of the building and its component elements in 3D, and provides comprehensive information on each element. The model can work collaboratively through an open data exchange standard (common to all compliant software) in order to mine the data required to further FM objectives (such as maintenance) more efficiently and effectively. services procurement — developing a multi-criteria performance-based procurement framework aligned with organisational objectives for FM service delivery performance benchmarking — developing an FM benchmarking framework that enables facilities/ organisations to develop key performance indicators (KPIs) to identify better practice and improvement strategies. These three research stream outcomes were then aligned within the broader context of Sydney Opera House’s Total Asset Management (TAM) Plan and Strategic Asset Maintenance (SAM) Plan in arriving at a business framework aligned with, and in support of, organisational objectives. The Sydney Opera House is managed by the Sydney Opera House Trust on behalf of the Government of the State of New South Wales. Within the framework of the TAM Plan prepared in accordance with NSW Treasury Guidelines, the assimilation of these three themes provides an integrated FM solution capable of supporting Sydney Opera House’s business objectives and functional requirements. FM as a business enabler showcases innovative methods in improving FM performance, a better alignment of service and performance objectives and provides a better-practice model to support the business enterprise.

Predicting project performance through neural networks

Successful project delivery of construction projects depends on many factors. With regard to the construction of a facility, selecting a competent contractor for the job is paramount. As such, various approaches have been advanced to facilitate tender award decisions. Essentially, this type of decision involves the prediction of a bidderÕs performance based on information available at the tender stage. A neural network based prediction model was developed and presented in this paper. Project data for the study were obtained from the Hong Kong Housing Department. Information from the tender reports was used as input variables and performance records of the successful bidder during construction were used as output variables. It was found that the networks for the prediction of performance scores for Works gave the highest hit rate. In addition, the two most sensitive input variables toward such prediction are ‘‘Difference between Estimate’’ and ‘‘Difference between the next closest bid’’. Both input variables are price related, thus suggesting the importance of tender sufficiency for the assurance of quality production.