Essays on behavioral aspects of the design and disclosure of compensation contracts

This thesis consists of four essays on the design and disclosure of compensation contracts. Essays 1, 2 and 3 focus on behavioral aspects of mandatory compensation disclosure rules and of contract negotiations in agency relationships. The three experimental studies develop psychology- based theory and present results that deviate from standard economic predictions. Furthermore, the results of Essay 1 and 2 also have implications for firms’ discretion in how to communicate their top management’s incentives to the capital market. Essay 4 analyzes the role of fairness perceptions for the evaluation of executive compensation. For this purpose, two surveys targeting representative eligible voters as well as investment professionals were conducted. Essay 1 investigates the role of the detailed ‘Compensation Discussion and Analysis’, which is part of the Security and Exchange Commission’s 2006 regulation, on investors’ evaluations of executive performance. Compensation disclosure complying with this regulation clarifies the relationship between realized reported compensation and the underlying performance measures and their target achievement levels. The experimental findings suggest that the salient presentation of executives’ incentives inherent in the ‘Compensation Discussion and Analysis’ makes investors’ performance evaluations less outcome dependent. Therefore, investors’ judgment and investment decisions might be less affected by noisy environmental factors that drive financial performance. The results also suggest that fairness perceptions of compensation contracts are essential for investors’ performance evaluations in that more transparent disclosure increases the perceived fairness of compensation and the performance evaluation of managers who are not responsible for a bad financial performance. These results have important practical implications as firms might choose to communicate their top management’s incentive compensation more transparently in order to benefit from less volatile expectations about their future performance. Similar to the first experiment, the experiment described in Essay 2 addresses the question of more transparent compensation disclosure. However, other than the first experiment, the second experiment does not analyze the effect of a more salient presentation of contract information but the informational effect of contract information itself. For this purpose, the experiment tests two conditions in which the assessment of the compensation contracts’ incentive compatibility, which determines executive effort, is either possible or not. On the one hand, the results suggest that the quality of investors’ expectations about executive effort is improved, but on the other hand investors might over-adjust their prior expectations about executive effort if being confronted with an unexpected financial performance and under-adjust if the financial performance confirms their prior expectations. Therefore, in the experiment, more transparent compensation disclosure does not lead to more correct overall judgments of executive effort and to even lower processing quality of outcome information. These results add to the literature on disclosure which predominantly advocates more transparency. The findings of the experiment however, identify decreased information processing quality as a relevant disclosure cost category. Firms might therefore carefully evaluate the additional costs and benefits of more transparent compensation disclosure. Together with the results from the experiment in Essay 1, the two experiments on compensation disclosure imply that firms should rather focus on their discretion how to present their compensation disclosure to benefit from investors’ improved fairness perceptions and their spill-over on performance evaluation. Essay 3 studies the behavioral effects of contextual factors in recruitment processes that do not affect the employer’s or the applicant’s bargaining power from a standard economic perspective. In particular, the experiment studies two common characteristics of recruitment processes: Pre-contractual competition among job applicants and job applicants’ non-binding effort announcements as they might be made during job interviews. Despite the standard economic irrelevance of these factors, the experiment develops theory regarding the behavioral effects on employees’ subsequent effort provision and the employers’ contract design choices. The experimental findings largely support the predictions. More specifically, the results suggest that firms can benefit from increased effort and, therefore, may generate higher profits. Further, firms may seize a larger share of the employment relationship’s profit by highlighting the competitive aspects of the recruitment process and by requiring applicants to make announcements about their future effort. Finally, Essay 4 studies the role of fairness perceptions for the public evaluation of executive compensation. Although economic criteria for the design of incentive compensation generally do not make restrictive recommendations with regard to the amount of compensation, fairness perceptions might be relevant from the perspective of firms and standard setters. This is because behavioral theory has identified fairness as an important determinant of individuals’ judgment and decisions. However, although fairness concerns about executive compensation are often stated in the popular media and even in the literature, evidence on the meaning of fairness in the context of executive compensation is scarce and ambiguous. In order to inform practitioners and standard setters whether fairness concerns are exclusive to non-professionals or relevant for investment professionals as well, the two surveys presented in Essay 4 aim to find commonalities in the opinions of representative eligible voters and investments professionals. The results suggest that fairness is an important criterion for both groups. Especially, exposure to risk in the form of the variable compensation share is an important criterion shared by both groups. The higher the assumed variable share, the higher is the compensation amount to be perceived as fair. However, to a large extent, opinions on executive compensation depend on personality characteristics, and to some extent, investment professionals’ perceptions deviate systematically from those of non-professionals. The findings imply that firms might benefit from emphasizing the riskiness of their managers’ variable pay components and, therefore, the findings are also in line with those of Essay 1.

[Risk factors for the oral use of antibiotics and animal treatment incidence of weaners in Switzerland].

In the present study, risk factors for the use of oral antibiotics in weaned piglets were collected on 112 pig farms by a personal questionaire. The most common indication for an antibiotic group therapy was diarrhoea, and the most frequently used antibiotic was Colistin. On average, 27.33 daily doses in the control farms and 387.21 daily doses in the problem farms per 1000 weaners were administered on a given day. The significant risk factors in the multivariate model were poor hygiene in the water supply of suckling piglets, less than two doses ofprestarter feed daily, lack of an all-in-and-all-out production system in weaners, no herd book performance data analysis, and less than two of the legally prescribed veterinary visits per year. Furthermore, the treatment incidence of weaners for oral antibiotics was calculated on the basis of the drug inventory. This study provides evidence that the use of oral antibiotics in weaners can be reduced by interventions in hygiene and management.

Mutagenicity study of the urinary metabolites of 2-aminonaphthalene

The mutagenicity study of the urinary metabolites of 2-aminonaphthalene was conducted to determine whether differences in metabolism between different acetylator phenotypes could account for a proposed mechanism of bladder carcinogenesis. This required the use of fast and slow acetylator rabbits with phenotypic similarities to humans. In the absence of available slow acetylators, it was necessary to inhibit fast acetylators. The proposed mechanism was that slow acetylators were at greater potential risk of bladder carcinogenesis due to low rates of acetylation, a detoxification mechanism for certain aromatic amines. The alternate metabolic pathway will be hydroxylation. The fast acetylators were proposed to exhibit lower risk of bladder carcinogenicity as a result of higher acetylation rates and less mutagenic metabolites.^ This hypothesis was approached by determining from in vitro mutagenicity assays with Salmonella typhimurium strains TA98 and TA100 whether different metabolites were mutagenic. The acetylation rate of each rabbit and a suitable method of acetylation inhibition were determined through oral exposure to dapsone and the acetylation inhibitor, K-p-aminosalicylic acid. Residues of dapsone and its acetylated metabolite were extracted from blood samples and analyzed by ultra-violet spectrometry using standard curves for each metabolite. The urine samples were concentrated on XAD-2 resin and analyzed both as whole urine concentrates and as isolated metabolites from spots on high performance thin layer chromatography plates. The major isolated spots were identified and quantified through extraction and analysis by high performance liquid chromatography when possible.^ Acetylation rate determination and inhibition were successfully demonstrated in rabbits. Significant mutagenicity was noted for several critical metabolites. None of the mutagenic metabolites were detected in higher concentration in the inhibited acetylators and thus, no clear relationship of metabolite concentration to bladder carcinogenesis was evident for the compounds analyzed. There was some evidence that the inhibitor may have affected critical enzyme systems other than acetylation alone. This would account for the lower concentrations of mutagenic hydroxylated compounds observed. ^

Growth regulatory role of R -PTPmu in normal and neoplastic epithelial cells

Cellular oncogenes and tumor suppressor genes regulate cellular adhesion and proliferation, two important events in malignant transformation. Even though receptor-like protein tyrosine phosphatases (R-PTPs) can influence these events, their role in malignant transformation has not been studied. The major goal of this study was to determine whether downregulation of R-PTP$\mu$ expression in lung epithelial cells is associated with or causal to neoplastic transformation. Examination of R-PTP$\mu$ expression in normal and carcinoma cells demonstrated that lung epithelial cells expressed R-PTP$\mu$ whereas lung carcinoma cells did not, and that incubation with TGF-$\alpha$ and HGF induced a two fold increase in R-PTP$\mu$ mRNA expression. To associate the expression of R-PTP$\mu$ with neoplastic transformation, we transfected lung epithelial cells with the H-ras oncogene. Transformation resulted in the activation of the MAPK signal transduction pathway, the hyperphosphorylation of c-met, and the production of HGF. Upon analysis of R-PTP$\mu$ expression, we observed a significant decrease in R-PTP$\mu$ mRNA and protein levels suggesting that transformation can directly or indirectly downregulate the expression of R-PTP$\mu.$ TGF-$\beta$ reversed the H-ras transformed phenotype, an event directly correlated with upregulation of R-PTP$\mu.$ To provide a casual relationship between R-PTP$\mu$ and cessation of tumor cell growth, we transfected carcinoma cells with the wild type R-PTP$\mu$ cDNA. Transiently expressing cells were selected by FACS using the mAb 3D7 and plated into individual wells. Carcinoma cells positive for R-PTP$\mu$ expression did not grow into colonies whereas non-R-PTP$\mu$ expressing carcinoma cells did, suggesting that expression of R-PTP$\mu$ arrested cell growth. To better understand the growth arrest induced by R-PTP$\mu$, we transfected the H-ras transformed lung epithelial cell line (MvLu-1-ras) with R-PTP$\mu$ (MvLu-1-ras/R-PTP$\mu$). Examination of growth factor receptor phosphorylation revealed significant inhibition of c-met and EGF-R. Furthermore, these cells underwent apoptosis in the absence of serum. Taken together the data demonstrate that the downregulation of R-PTP$\mu$ expression is an important step in neoplastic transformation of lung epithelial cells and that its presence can induce apoptosis and inhibit the signaling of c-met and EGF-R, two major growth factor receptors in lung carcinoma. In conclusion, the expression of R-PTP$\mu$ is inversely correlated with neoplastic transformation, growth and survival of tumor cells. ^

Estrategias para el diseño de un sistema de gestión ambiental en una bodega : (Mendoza, Argentina)

En los últimos tiempos se ha fomentado, a través de distintas normas, la protección del medio ambiente como parte integrante de las diferentes actividades y políticas tanto del sector público como privado, con el propósito de lograr un desarrollo equilibrado y sostenible, compatible con el actual modelo económico. En función de ello, en una bodega emplazada en Maipú (Mendoza, Argentina) se realizó un diagnóstico (Revisión Inicial Ambiental - RIA) para conocer la situación actual del establecimiento con respecto a su relación con el medio ambiente. Una vez recabada la información y concluido el diagnóstico, se planteó un plan de medidas de gestión ambiental. Dichas medidas, que incorporaron los nuevos conceptos de producción limpia, ecoeficiencia y buenas prácticas ambientales, fueron documentadas a través de registros y permitieron conocer el desempeño ambiental a partir de los indicadores propuestos para cada uno de los Puntos Críticos ambientales (PCA). La propuesta inicial del presente trabajo fue lograr que la implementación de las medidas de acción, junto con los registros e indicadores de desempeño ambiental, sirvieran de soporte decisorio y brindaran los lineamientos básicos para diseñar un Sistema de Gestión Ambiental (SGA) que, junto con las Auditorías Ambientales (AA), formaran parte de la propuesta final.

Percepción de variabilidad climática, uso de información y estrategias de los agentes frente al riesgo. Análisis de esquemas decisionales en agricultores de la región pampeana argentina

Este artículo indaga acerca de qué elementos de análisis están presentes en las estrategias de los agricultores de las pampas argentinas a la hora de tomar decisiones de producción considerando el factor climático. El énfasis está puesto en cómo perciben la variabilidad climática y qué información manejan acerca de sus perspectivas a mediano plazo. Durante 2005 se entrevistaron a 60 productores, seleccionados de dos zonas pampeanas de diferentes características físicas. 30 personas correspondieron al área central húmeda y 30 personas a un área marginal semiárida. Los resultados del estudio apuntan a caracterizar los esquemas decisionales presentes en las percepciones de los individuos, teniendo en cuenta que su actividad supone una exposición al riesgo. El objetivo de fondo del trabajo de investigación es proponer acciones de comunicación que ayuden a un mejor uso de la información climática, considerando que se trata de una herramienta disponible con gran potencial para dar un soporte más científico a los procedimientos de los agentes productivos y mejorar su rentabilidad económica.

Percepción de variabilidad climática, uso de información y estrategias de los agentes frente al riesgo. Análisis de esquemas decisionales en agricultores de la región pampeana argentina

Este artículo indaga acerca de qué elementos de análisis están presentes en las estrategias de los agricultores de las pampas argentinas a la hora de tomar decisiones de producción considerando el factor climático. El énfasis está puesto en cómo perciben la variabilidad climática y qué información manejan acerca de sus perspectivas a mediano plazo. Durante 2005 se entrevistaron a 60 productores, seleccionados de dos zonas pampeanas de diferentes características físicas. 30 personas correspondieron al área central húmeda y 30 personas a un área marginal semiárida. Los resultados del estudio apuntan a caracterizar los esquemas decisionales presentes en las percepciones de los individuos, teniendo en cuenta que su actividad supone una exposición al riesgo. El objetivo de fondo del trabajo de investigación es proponer acciones de comunicación que ayuden a un mejor uso de la información climática, considerando que se trata de una herramienta disponible con gran potencial para dar un soporte más científico a los procedimientos de los agentes productivos y mejorar su rentabilidad económica.

Diatom abundances of ODP Hole 177-1093A in the Southern Ocean

Laminated diatom ooze samples collected during ODP Leg 177 were analysed using scanning electron microscope (SEM) and optical microscopy to test their potential as high-resolution records of Polar Front hydrography, surface production, and export. SEM analysis from two intervals, marine isotope stage (MIS) 29 and 12/11, respectively, recovered from 50°S in the Atlantic Ocean (ODP Site 1093, Hole A, sections 13H-4 0-18 cm and 23H-4 0-22 cm), show abundant and well-preserved Thalassiothrix antarctica mats, thought to be indicative of rapid export from the surface and deposition in the sediment. A preliminary analysis of laminae succession points to a possible annual couplet/triplet succession of laminae, and suggests exceptionally high local sedimentation rates of 57 and 80 cm/kyr for MIS 12/11 and 29, respectively. Such high accumulation rates imply that local export from the surface layer and sequestration of biogenic silica and organic matter to the sediments may have been much higher than previously suggested.

Percepción de variabilidad climática, uso de información y estrategias de los agentes frente al riesgo. Análisis de esquemas decisionales en agricultores de la región pampeana argentina

Este artículo indaga acerca de qué elementos de análisis están presentes en las estrategias de los agricultores de las pampas argentinas a la hora de tomar decisiones de producción considerando el factor climático. El énfasis está puesto en cómo perciben la variabilidad climática y qué información manejan acerca de sus perspectivas a mediano plazo. Durante 2005 se entrevistaron a 60 productores, seleccionados de dos zonas pampeanas de diferentes características físicas. 30 personas correspondieron al área central húmeda y 30 personas a un área marginal semiárida. Los resultados del estudio apuntan a caracterizar los esquemas decisionales presentes en las percepciones de los individuos, teniendo en cuenta que su actividad supone una exposición al riesgo. El objetivo de fondo del trabajo de investigación es proponer acciones de comunicación que ayuden a un mejor uso de la información climática, considerando que se trata de una herramienta disponible con gran potencial para dar un soporte más científico a los procedimientos de los agentes productivos y mejorar su rentabilidad económica.

Physicochemical parameters of water sample the four coastal lagoons at the Peninsula of Yucatan

Study sites. Samples of surface water were taken from 4 coastal lagoons on the Yucatan Peninsula in Mexico: Celestun (20° 45' N - 90° 22' W), Chelem (21° 15' N - 89° 45' W), Rosada Lagoon (21º 19' N - 89º 19' W), and Sabancuy Estuary (18° 58' N - 91° 12' W). The sampling was performed from august to October of 2011 (Chelem 08/24; Laguna Rosada 09/06; Celestún 09/28; Sabancuy 10/25). The sampling was random without replacement and 10 samples of surface water were collected along a transect parallel to the coastal axis. Samples were deposited in sterile plastic bottles and conserved in refrigeration at 4°C. All samples were processed within 24 hours after sampling. According to the Mexican laws and regulations no permissions are required to obtain water and sediment samples from open public areas. Analysis of environmental and physicochemical parameters. Determinations of the environmental parameters were performed with a Hach 5465000 model 156 multi-parameter measuring instrument. The Lorenzen method was used to determine chlorophyll-a (21) with 90% acetone and the concentration was calculated according to the formula: Chla= 27.63 (OD665o - OD665a)(VA)/VM x L Where, OD665o: absorbance at 665 nm before acidification; OD665a: absorbance at 665 nm after acidification; VA: volume (ml) of acetone for extraction; VM: volume (ml) of filtered water; L: length (cm) of the photometric cell. Determinations of the physicochemical parameters (silicates, phosphates, nitrates, nitrites and ammonia) were performed using the spectrophotometric techniques described and modified by Strickland and Parsons (1972).

Chemical composition of rocks from the Eastern Indian Ocean

The monograph presents results of comprehensive geological and geophysical studies carried out in 1973 and 1976 during Cruises 54 and 58 of R/V "Vityaz" in the Eastern Indian Ocean. On the base of obtained data a description of topography, magnetic and gravity fields, structure of the sedimentary series and deep crustal structure of the East Indian Ridge, Central, West Australian and Cocos Basins, the Sunda Trench has been done. Materials on petrography, petrochemistry and geochemistry of igneous rocks in the region have been summarized. New geological and geophysical information has been compared with with DSDP materials. Tectonics and geological history of the Eastern Indian Ocean are under consideration.

Infrastructure Development of Railway in Cambodia: A Long Term Strategy

Infrastructure development means for the making of living environment, transport and communications, disaster prevention and national land conservation, agriculture, forestry and fisheries, and energy production and supply. Transport infrastructure development in Cambodia involved with (1) road, (2) railway, (3) port, inland-water way and (4) aviation. All model of transport infrastructure have special different kinds of importance. Railway is different from other base important of railways are transport passengers and traffic freight especially transport for heavy goods in huge capacity and in long distance by safer and faster. Transport in Cambodia for traffic freight export import base from Thailand and other via Sisophon and Shihanoukvill port. Traffic is increasing rapidly during nowadays railway condition in adequate of demand required. This is why Railway is selected as the topic of this paper to prevent monopoly of road transport. This paper, does review about infrastructure development plan for Railway in Cambodia as a long term strategy by review and analysis forecast on the previous performance of Royal Railways of Cambodia (RRC) transport traffic involved with condition of infrastructure development of railway in Cambodia. And also review the plan of development RRC but just only detail a plan of rehabilitation that is immediately needed. Suggest some recommendation at the last part. As Cambodia is a member country of ASEAN and also Mekong sub-region. For make sure that transport networks work effectively with a progress of economic integration, we make clear what is important for infrastructure development of railway in Cambodia from the standpoint of the development plan of Mekong sub-region. This paper is organized by 4 sections. Section 1 review about Infrastructure Development of Railway in Cambodia (IDRC) Historical Background, Follow by Section 2 will review the Current Situation of IDRC and some analysis of transport performance from previous years, Then Section 3 review of the focusing on traffic transport of RRC in the future, Section 4 review Infrastructure Development of Railway in Cambodia Future plans in long term; at last conclusion and recommendation. In section 1 does review history background of RRC from the rail first begun. But why is needed to review? Because of history background is involved infrastructure development of RRC in present time. History background made big gaps constraint and obstacle for socioeconomic development and poverty reduction, also left Cambodia with tragedy and left developed behind. After that remain infrastructure development needs huge fund and long time for restoration, reconstruction, rehabilitation and development into new technology as most of world practice.

The size distribution of all Cambodian establishments

This paper presents empirical evidence on the size distribution of all Cambodian establishments in the nonfarm sector for 2009. Small- and large-scale establishments account for the largest share of employment, pointing to a “missing middle” that is commonly observed in developing countries. The analysis provides little evidence for Zipf’s law because Cambodian industry is characterized by a more dense mass of small establishments than the Zipf distribution would predict.

Industrial deepening in East Asia

Structural transformations are an indispensable element of sustained economic growth. Within the context of East Asia, this study focuses on industrial deepening, which refers to the formation of local linkages and the creation of a robust local supplier base. To investigate the progress of industrial deepening, this study introduces two kinds of domestic procurement measures in addition to the previously developed local content measures. Specifically, two kinds of vertical specialization measures are used to demonstrate the degree to which respective East Asian economies are specialized within their vertical production networks. The results clearly show that the advancement of production networks is likely to reduce domestic procurement ratios, even if local supplier bases are strengthened in the respective countries. Moreover, the trend of domestic procurement ratios differs depending on the characteristics of particular industries and the industrial policies adopted by individual countries.

Influence of driving style on fuel consumption and Emissions in diesel-powered passenger car

This paper presents the main results of a study on the influence of driving style on fuel consumption and pollutant emissions of diesel passenger car in urban traffic. Driving styles (eco, normal or aggressive) patterns were based on the “eco-driving” criteria. The methodology is based on on-board emission measurements in real urban traffic in the city of Madrid. Five diesel passenger cars, have been tested. Through a statistical analysis, a Dynamic Performance Index was defined for diesel passenger cars. Likewise, the CO, NOX and HC emissions were compared for each driving style for the tested vehicles. Eco-driving reduces by 14% fuel consumption and CO2 emissions, but aggressive driving increase consumption by 40%. Aggressive driving increases NOX emission by more than 40%. CO and HC, show different trends, but being increased in eco-driving style.