Earnings Management and Measurement Error

In this paper I consider the impact of a noisy indicator regarding a manager’s manipulative behavior on optimal effort incentives and the extent of earnings management. The analysis in this paper extends a twotask, single performance measure LEN model by including a binary random variable. I show that contracting on the noisy indicator variable is not always useful. More specifically, the principal uses the indicator variable to prevent earnings management only under conditions where manipulative behavior is not excessive. Thus, under conditions of excessive earnings management, accounting adjustments that yield a more congruent overall performance measure can be more effective than an appraisal of the existence of earnings management to mitigate the earnings management problem.

Effects of camera aperture correction on keying and compositing of broadcast video

This contribution discusses the effects of camera aperture correction in broadcast video on colour-based keying. The aperture correction is used to ’sharpen’ an image and is one element that distinguishes the ’TV-look’ from ’film-look’. ’If a very high level of sharpening is applied, as is the case in many TV productions then this significantly shifts the colours around object boundaries with hight contrast. This paper discusses these effects and their impact on keying and describes a simple low-pass filter to compensate for them. Tests with colour-based segmentation algorithms show that the proposed compensation is an effective way of decreasing the keying artefacts on object boundaries.

A user supported object tracking framework for interactive video production

We present a user supported tracking framework that combines automatic tracking with extended user input to create error free tracking results that are suitable for interactive video production. The goal of our approach is to keep the necessary user input as small as possible. In our framework, the user can select between different tracking algorithms - existing ones and new ones that are described in this paper. Furthermore, the user can automatically fuse the results of different tracking algorithms with our robust fusion approach. The tracked object can be marked in more than one frame, which can significantly improve the tracking result. After tracking, the user can validate the results in an easy way, thanks to the support of a powerful interpolation technique. The tracking results are iteratively improved until the complete track has been found. After the iterative editing process the tracking result of each object is stored in an interactive video file that can be loaded by our player for interactive videos.

Implementation status of error disclosure standards reported by Swiss hospitals

QUESTION UNDER STUDY To establish at what stage Swiss hospitals are in implementing an internal standard concerning communication with patients and families after an error that resulted in harm. METHODS Hospitals were identified via the Swiss Hospital Association's website. An anonymous questionnaire was sent during September and October 2011 to 379 hospitals in German, French or Italian. Hospitals were asked to specify their hospital type and the implementation status of an internal hospital standard that decrees that patients or their relatives are to be promptly informed about medical errors that result in harm. RESULTS Responses from a total of 205 hospitals were received, a response rate of 54%. Most responding hospitals (62%) had an error disclosure standard or planned to implement one within 12 months. The majority of responding university and acute care (75%) hospitals had introduced a disclosure standard or were planning to do so. In contrast, the majority of responding psychiatric, rehabilitation and specialty (53%) clinics had not introduced a standard. CONCLUSION It appears that Swiss hospitals are in a promising state in providing institutional support for practitioners disclosing medical errors to patients. This has been shown internationally to be one important factor in encouraging the disclosure of medical errors. However, many hospitals, in particular psychiatric, rehabilitation and specialty clinics, have not implemented an error disclosure policy. Further research is needed to explore the underlying reasons.

Accounting for baseline differences and measurement error in the analysis of change over time

If change over time is compared in several groups, it is important to take into account baseline values so that the comparison is carried out under the same preconditions. As the observed baseline measurements are distorted by measurement error, it may not be sufficient to include them as covariate. By fitting a longitudinal mixed-effects model to all data including the baseline observations and subsequently calculating the expected change conditional on the underlying baseline value, a solution to this problem has been provided recently so that groups with the same baseline characteristics can be compared. In this article, we present an extended approach where a broader set of models can be used. Specifically, it is possible to include any desired set of interactions between the time variable and the other covariates, and also, time-dependent covariates can be included. Additionally, we extend the method to adjust for baseline measurement error of other time-varying covariates. We apply the methodology to data from the Swiss HIV Cohort Study to address the question if a joint infection with HIV-1 and hepatitis C virus leads to a slower increase of CD4 lymphocyte counts over time after the start of antiretroviral therapy.

Informative State-Based Video Communication

We study state-based video communication where a client simultaneously informs the server about the presence status of various packets in its buffer. In sender-driven transmission, the client periodically sends to the server a single acknowledgement packet that provides information about all packets that have arrived at the client by the time the acknowledgment is sent. In receiver-driven streaming, the client periodically sends to the server a single request packet that comprises a transmission schedule for sending missing data to the client over a horizon of time. We develop a comprehensive optimization framework that enables computing packet transmission decisions that maximize the end-to-end video quality for the given bandwidth resources, in both prospective scenarios. The core step of the optimization comprises computing the probability that a single packet will be communicated in error as a function of the expected transmission redundancy (or cost) used to communicate the packet. Through comprehensive simulation experiments, we carefully examine the performance advances that our framework enables relative to state-of-the-art scheduling systems that employ regular acknowledgement or request packets. Consistent gains in video quality of up to 2B are demonstrated across a variety of content types. We show that there is a direct analogy between the error-cost efficiency of streaming a single packet and the overall rate-distortion performance of streaming the whole content. In the case of sender-driven transmission, we develop an effective modeling approach that accurately characterizes the end-to-end performance as a function of the packet loss rate on the backward channel and the source encoding characteristics.

An Extended Hierarchical Task Analysis for Error Prediction in Medical Devices

This paper introduces an extended hierarchical task analysis (HTA) methodology devised to evaluate and compare user interfaces on volumetric infusion pumps. The pumps were studied along the dimensions of overall usability and propensity for generating human error. With HTA as our framework, we analyzed six pumps on a variety of common tasks using Norman’s Action theory. The introduced method of evaluation divides the problem space between the external world of the device interface and the user’s internal cognitive world, allowing for predictions of potential user errors at the human-device level. In this paper, one detailed analysis is provided as an example, comparing two different pumps on two separate tasks. The results demonstrate the inherent variation, often the cause of usage errors, found with infusion pumps being used in hospitals today. The reported methodology is a useful tool for evaluating human performance and predicting potential user errors with infusion pumps and other simple medical devices.

Medical Error: Is the Solution Medical or Cognitive?

Is the solution for medical errors medical or cognitive? In this AMIA2001 panel on medical error, we argued that medical error is primarily an issue for cognitive science and engineering, not for medicine, although the knowledge of the practice of medicine is essential for the research and prevention of medical errors. The three panelists presented studies that demonstrate that cognitive research is the foundation for theories of medical errors and interventions of error reductions.

Evaluating a medical error taxonomy

Healthcare has been slow in using human factors principles to reduce medical errors. The Center for Devices and Radiological Health (CDRH) recognizes that a lack of attention to human factors during product development may lead to errors that have the potential for patient injury, or even death. In response to the need for reducing medication errors, the National Coordinating Council for Medication Errors Reporting and Prevention (NCC MERP) released the NCC MERP taxonomy that provides a standard language for reporting medication errors. This project maps the NCC MERP taxonomy of medication error to MedWatch medical errors involving infusion pumps. Of particular interest are human factors associated with medical device errors. The NCC MERP taxonomy of medication errors is limited in mapping information from MEDWATCH because of the focus on the medical device and the format of reporting.

The physician's perception of medical error and its application to the development of an educational training tool.

It is becoming clear that if we are to impact the rate of medical errors it will have to be done at the practicing physician level. The purpose of this project was to survey the attitude of physicians in Alabama concerning their perception of medical error, and to obtain their thoughts and desires for medical education in the area of medical errors. The information will be used in the development of a physician education program.