Essays on Stock Option Compensation and the Role of Incentives and Risk (summary section only)

Managerial pay-for-performance sensitivity has increased rapidly around the world. Early empirical research showed that pay-for-performance sensitivity resulting from stock ownership and stock options appeared to be quite low during the 1970s and early 1980s in the U.S. However, recent empirical research from the U.S. shows an enormous increase in pay-for-performance sensitivity. The global trend has also reached Finland, where stock options have become a major ingredient of executive compensation. The fact that stock options seem to be an appealing form of remuneration from a theoretical point of view combined with the observation that the use of this compensation form has increased significantly during the recent years, implies that research on the dynamics of stock option compensation is highly relevant for the academic community, as well as for practitioners and regulators. The research questions of the thesis are analyzed in four separate essays. The first essay examines whether stock option compensation practices of Finnish firms are consistent with predictions from principal-agent theory. The second essay explores one of the major puzzles in the compensation literature by studying determinants of stock option contract design. In theory, optimal contract design should vary according to firm characteristics. However, in the U.S., variation in contract design seems to be surprisingly low, a phenomenon generally attributed to tax and accounting considerations. In Finland, however, firms are not subject to stringent contracting restrictions, and the variation in contract design tends, in fact, to be quite substantial. The third essay studies the impact of price- and risk incentives arising from stock option compensation on firm investment. In addition, the essay explores one of the most debated questions in the literature, in particular, the relation between incentives and firm performance. Finally, several strands of literature in both economics and corporate finance hypothesize that economic uncertainty is related to corporate decision-making. Previous research has shown that risk tends to slow down firm investment. In the fourth essay, it is hypothesized that firm risk slows down growth from a more universal perspective. Consistent with this view, it is shown that risk not only tends to slow down firm investment, but also employment growth. Moreover, the essay explores whether the nature of firms’ compensation policies, in particular, whether firms make use of stock option compensation, affects the relation between risk and firm growth. In summary, the four essays contribute to the current understanding of stock options as a form of equity incentives, and how incentives and risk affect corporate decision-making. By this, the thesis promotes the knowledge related to the modern theory of the firm.

Triangular Ising antiferromagnet in a staggered field

We study the equilibrium properties of the nearest-neighbor Ising antiferromagnet on a triangular lattice in the presence of a staggered field conjugate to one of the degenerate ground states. Using a mapping of the ground states of the model without the staggered field to dimer coverings on the dual lattice, we classify the ground states into sectors specified by the number of "strings." We show that the effect of the staggered field is to generate long-range interactions between strings. In the limiting case of the antiferromagnetic coupling constant J becoming infinitely large, we prove the existence of a phase transition in this system and obtain a finite lower bound for the transition temperature. For finite J, we study the equilibrium properties of the system using Monte Carlo simulations with three different dynamics. We find that in all the three cases, equilibration times for low-field values increase rapidly with system size at low temperatures. Due to this difficulty in equilibrating sufficiently large systems at low temperatures, our finite-size scaling analysis of the numerical results does not permit a definite conclusion about the existence of st phase transition for finite values of J. A surprising feature in the system is the fact that unlike usual glassy systems; a zero-temperature quench almost always leads to the ground state, while a slow cooling does not.

Polarization Characteristics of Porous Electrode Systems with Adsorbed Intermediates Participating in the Electrode Reaction

Current-potential relationships are derived for porous electrode systems following a homogeneous model and whenadsorbed intermediates participate in the electrode reaction. Limiting Tafel slopes were deduced and compared with thecorresponding behavior on planar electrode systems. The theoretical results showed doubling of Tafel slopes when theslow-step is a charge-transfer reaction and a nonlogarithmic current-voltage behavior when the slow-step is a chemical reaction.Comparison of the experimental results with theory for the case of oxygen reduction on carbon surfaces in alkalinemedia indicates that a slow chemical reaction following the initial charge-transfer reaction to be the likely rate-controllingstep. Theoretical relationships are utilized to determine the exchange current density and the surface coverage by the adsorbedintermediates during the course of oxygen reduction from alkaline solutions on "carbon." Tafel slope measurementson planar and porous electrodes for the same reaction are suggested as one of the diagnostic criteria for elucidatingthe mechanistic pathways of electrochemical reactions.

Accelerating Waves in Polar Coronal Holes as Seen by EIS and SUMER

We present EIS/Hinode and SUMER/SOHO observations of propagating disturbances detected in coronal lines in inter-plume and plume regions of a polar coronal hole. The observation was carried out on 2007 November 13 as part of the JOP196/HOP045 program. The SUMER spectroscopic observation gives information about fluctuations in radiance and on both resolved (Doppler shift) and unresolved (Doppler width) line-of-sight velocities, whereas EIS 40 `'wide slot images detect fluctuations only in radiance but maximize the probability of overlapping field of view between the two instruments. From distance-time radiance maps, we detect the presence of propagating waves in a polar inter-plume region with a period of 15-20 minutes and a propagation speed increasing from 130 +/- 14 km s(-1) just above the limb to 330 +/- 140 km s(-1) around 160 `' above the limb. These waves can be traced to originate from a bright region of the on-disk part of the coronal hole where the propagation speed is in the range of 25 +/- 1.3 to 38 +/- 4.5 km s(-1), with the same periodicity. These on-disk bright regions can be visualized as the base of the coronal funnels. The adjacent plume region also shows the presence of propagating disturbances with the same range of periodicity but with propagation speeds in the range of 135 +/- 18 to 165 +/- 43 km s(-1) only. A comparison between the distance-time radiance map of the two regions indicates that the waves within the plumes are not observable (may be getting dissipated) far off-limb, whereas this is not the case in the inter-plume region. A correlation analysis was also performed to find out the time delay between the oscillations at several heights in the off-limb region, finding results consistent with those from the analysis of the distance-timemaps. To our knowledge, this result provides first spectroscopic evidence of the acceleration of propagating disturbances in the polar region close to the Sun (within 1.2 R/R-circle dot), which provides clues to the understanding of the origin of these waves. We suggest that the waves are likely either Alfvenic or fast magnetoacoustic in the inter-plume region and slow magnetoacoustic in the plume region. This may lead to the conclusion that inter-plumes are a preferred channel for the acceleration of the fast solar wind.

Plasticity in the primary binding site of galactose/N-acetylgalactosamine-specific lectins - Implication of the C-H center dot center dot center dot O hydrogen bond at the specificity-determining C-4 locus of the saccharide in 4-methoxygalactose recognition by jacalin and winged bean (basic) agglutinin I

It is currently believed that an unsubstituted axial hydroxyl at the specificity-determining C-4 locus of galactose is indispensable for recognition by galactose/N-acetylgalactosamine-specific lectins. Titration calorimetry demonstrates that 4-methoxygalactose retains binding allegiance to the Moraceae lectin jacalin and the Leguminosae lectin, winged bean (basic) agglutinin (WBA I). The binding reactions were driven by dominant favorable enthalpic contributions and exhibited significant enthalpy-entropy compensation. Proton NMR titration of C-methoxygalactose with jacalin and WBA I resulted in broadening of the sugar resonances without any change in chemical shift. The alpha-and beta-anomers of 4-methoxygalactose were found to be in slow exchange with free and lectin-bound states. Both the anomers experience magnetically equivalent environments at the respective binding sites. The binding constants derived from the dependence of NMR line widths on 4-methoxygalactose concentration agreed well with those obtained from titration calorimetry. The results unequivocally demonstrate that the loci corresponding to the axially oriented C-4 hydroxyl group of galactose within the primary binding site of these lectins exhibit plasticity. These analyses suggest, for the first time, the existence of C-H ... O-type hydrogen-bond(s) in protein-carbohydrate interactions in general and between the C-4 locus of galactose derivative and the lectins jacalin and WBA I in particular.

Ultrasonic measurement of the elastic constants of sodium p-nitrophenolate dihydrate single crystals

Sodium p-nitrophenolate dihydrate single crystals possess excellent nonlinear optical properties such that they can be used for optical second-harmonic generation. It belongs to the orthorhombic system with the space group Ima2. Slow evaporation or slow cooling techniques can be used to grow good optical quality single crystals from supersaturated solution. All the nine elastic constants of this crystal have been measured using an ultrasonic technique. Samples for measurements have been cut along desired crystallographic axes and the pulse echo overlap technique has been used to measure longitudinal and shear ultrasonic wave velocities along appropriate symmetry directions in the crystal. The McSkimin Delta t criterion has been applied to determine the round trip travel time accurately, from which the nine elastic constants have been evaluated. Temperature variation of selected elastic constants in a limited range have also been measured and reported.

Tracking Random Walk of Individual Domain Walls in Cylindrical Nanomagnets with Resistance Noise

The stochasticity of domain-wall (DW) motion in magnetic nanowires has been probed by measuring slow fluctuations, or noise, in electrical resistance at small magnetic fields. By controlled injection of DWs into isolated cylindrical nanowires of nickel, we have been able to track the motion of the DWs between the electrical leads by discrete steps in the resistance. Closer inspection of the time dependence of noise reveals a diffusive random walk of the DWs with a universal kinetic exponent. Our experiments outline a method with which electrical resistance is able to detect the kinetic state of the DWs inside the nanowires, which can be useful in DW-based memory designs.

A novel fiber-coated strong base-type anion exchanger with superfast kinetics. Removal and recovery of silver thiosulfate from aqueous solutions

A commercial acrylic fiber with 92% (w/w) acrylonitrile content was partially hydrolyzed converting a fraction of the nitrile (-CN) groups to carboxylic acid (-COOH) groups, to coat the fiber with polyethylenimine (PEI) resin, which was then crosslinked with glutaraldehyde and further quaternized with ethyl chloroacetate to produce a novel strong-base anionic exchanger in the form of fiber. Designated as PAN(QPEI.XG)(Cl-), the fibrous sorbent was compared with a commercial bead-form resin Amberlite IRA-458(Cl-) in respect of sorption capacity, selectivity, and kinetics for removal of silver thiosulfate complexes from aqueous solutions. Though the saturation level of [Ag(S2O3)(2)](3-) on PAN(QPEI.XG)(Cl-) is considerably less than that on IRA-458(Cl-), the gel-coated fibrous sorbent exhibits, as compared to the bead-form sorbent, a significantly higher sorption selectivity for the silver thiosulfate complex in the presence of excess of other anions Such as S2O32-, SO42-, and Cl-, and a remarkably faster rate of both sorption and stripping. The initial uptake of the sorbate by the fibrous sorbent is nearly instantaneous, reaching up to similar to 80% of the saturation capacity within 10 s, as compared to only similar to 12% on the bead-form sorbent. The high initial rate of uptake fits a shell-core kinetic model for sorption on fiber of cylindrical geometry. With 4M HCl, the stripping of the sorbed silver complex from the fibrous sorbent is clean and nearly instantaneous, while, in contrast, a much slower rate of stripping on the bead-form sorbent leads to its fouling due to a slow decomposition of the silver thiosulfate complex in the acidic medium.

Implications of Energy Profile and Storage on Energy Harvesting Sensor Link Performance

Energy harvesting sensors (EHS), which harvest energy from the environment in order to sense and then communicate their measurements over a wireless link, provide the tantalizing possibility of perpetual lifetime operation of a sensor network. The wireless communication link design problem needs to be revisited for these sensors as the energy harvested can be random and small and not available when required. In this paper, we develop a simple model that captures the interactions between important parameters that govern the communication link performance of a EHS node, and analyze its outage probability for both slow fading and fast fading wireless channels. Our analysis brings out the critical importance of the energy profile and the energy storage capability on the EHS link performance. Our results show that properly tuning the transmission parameters of the EHS node and having even a small amount of energy storage capability improves the EHS link performance considerably.

Biphenyl ethers conjugated CdSe/ZnS core/shell quantum dots and interpretation of the mechanism of amyloid fibril disruption

The biphenyl ethers (BPEs) are the potent inhibitors of TTR fibril formation and are efficient fibril disrupter. However, the mechanism by which the fibril disruption occurs is yet to be fully elucidated. To gain insight into the mechanism, we synthesized and used a new QD labeled BPE to track the process of fibril disruption. Our studies showed that the new BPE-QDs bind to the fiber uniformly and has affinity and specificity for TTR fiber and disrupted the pre-formed fiber at a relatively slow rate. Based on these studies we put forth the probable mechanism of fiber disruption by BPEs. Also, we show here that the BPE-QDs interact with high affinity to the amyloids of A beta(42), lysozyme and insulin. The potential of BPE-QDs in the detection of senile plaque in the brain of transgenic Alzheimer's mice has also been explored. (C) 2010 Elsevier Ltd. All rights reserved.

Identification of corona discharge-induced SF6 oxidation mechanisms using SF6/18O2/H216O and SF6/16O2/H218O gas mixtures

The absolute yields of gaseous oxyfluorides SOF2, SO2F2, and SOF4 from negative, point-plane corona discharges in pressurized gas mixtures of SF6 with O2 and H2O enriched with18O2 and H2 18O have been measured using a gas chromatograph-mass spectrometer. The predominant SF6 oxidation mechanisms have been revealed from a determination of the relative18O and16O isotope content of the observed oxyfluoride by-product. The results are consistent with previously proposed production mechanisms and indicate that SOF2 and SO2F2 derive oxygen predominantly from H2O and O2, respectively, in slow, gas-phase reactions involving SF4, SF3, and SF2 that occur outside of the discharge region. The species SOF4 derives oxygen from both H2O and O2 through fast reactions in the active discharge region involving free radicals or ions such as OH and O, with SF5 and SF4.

Oikeustieteen ensimmäisen vuoden opiskelijoiden haasteet opiskelussa

The aim of this dissertation was to explore factors which affect first-year law students study success. A modified Biggs s 3P model was used as the theoretical framework. The model includes both personal and contextual factors in student learning. The participants were first-year law students from the academic years 2005-2008, and the data were collected through interviews, open-ended question and electronic questionnaires. Study I explored first-year law students spontaneous descriptions of their learning activities at the beginning of their studies as well as fast study pace law students who had already finished their first year. Even though, law students are selected through a demanding entrance examination, some of the beginner students mentioned using only one or very few learning activities, which were mainly non-generative strategies. On the other hand, it was typical for the fast study pace students to mention generative strategies and elements of organised effort in studying. Study II analysed the relationship between approaches to learning and study success in terms of earned study credits and grade point average among first-year law students in three years. Organised students and students applying a deep approach earned the highest number of credits and the highest grades, whereas students applying a surface approach and unorganised students applying a deep approach received the lowest number of credits and the lowest grades. The study confirms previous findings that organised students constitute the largest cluster among first-year law students. Study III explored factors affecting the study pace of law students during their first academic year. The factors mentioned by the students were classified into four categories of self-regulation: motivation, behaviour, cognition and context. The group of fast study pace students turned out to have good skills in all areas of self-regulation. Respectively, the slow study pace group showed more individual variation, and had weaknesses in one or more areas of self-regulation. In addition, students experienced, that other activities such as working affected their study pace, this could be constitute a fifth category. However, the slow and fast study pace students felt differently about work. According to the slow study pace students, work impeded their studying because it took up too much time. For their part, the fast study pace students were able to allocate their time effectively and felt working to be useful and a counterbalanced to their studying, as well as an opportunity to apply knowledge in practice. Study IV analysed differences in law students perceptions of their teaching-learning environments after three learning periods. The students perceptions were compared with pharmacy and veterinary students perceptions of their teaching-learning environments. The results showed that the law students experienced their teaching-learning environment more negatively than the pharmacy and veterinary students. The law students experienced that alignment, teaching for understanding, staff enthusiasm and support, along with constructive feedback were areas that could be developed at the Faculty. Together the four studies indicate that both law students learning skills and the teaching-learning environment could be further developed. The results imply that managing in the demanding teaching-learning environment of law requires student to effectively employ qualitative learning activities: organised studying and a deep approach to learning and good self-regulation skills. In addition to student counselling, it is important for students study success to direct the teaching-learning environment towards a more learning-focused than content-focused approach to teaching.

Physico-chemical properties of pure and x-ray irradiated single crystals of KAP

Single crystals of potassium hydrogen phthalate (KAP) have been grown by slow evaporation method from aqueous solutions. Thermal analyses indicate that KAP crystals decompose into phthalic anhydride and KOH around 520 K. Electrical properties of single crystals of KAP have been studied along with the effect of X-ray irradiation of the crystals. The electrical transport appears to be associated with tunneling of protons. The irradiated crystal exhibits lower dielectric constant and higher ac conductivity.

Static and dynamic properties of incommensurate smectic-AIC liquid crystals

We study the elasticity, topological defects, and hydrodynamics of the recently discovered incommensurate smectic (AIC) phase, characterized by two collinear mass density waves of incommensurate spatial frequency. The low-energy long-wavelength excitations of the system can be described by a displacement field u(x) and a ��phason�� field w(x) associated, respectively, with collective and relative motion of the two constituent density waves. We formulate the elastic free energy in terms of these two variables and find that when w=0, its functional dependence on u is identical to that of a conventional smectic liquid crystal, while when u=0, its functional dependence on w is the same as that for the angle variable in a slightly anisotropic XY model. An arbitrariness in the definition of u and w allows a choice that eliminates all relevant couplings between them in the long-wavelength elastic energy. The topological defects of the system are dislocations with nonzero u and w components. We introduce a two-dimensional Burgers lattice for these dislocations, and compute the interaction between them. This has two parts: one arising from the u field that is short ranged and identical to the interaction between dislocations in an ordinary smectic liquid crystal, and one arising from the w field that is long ranged and identical to the logarithmic interaction between vortices in an XY model. The hydrodynamic modes of the AIC include first- and second-sound modes whose direction-dependent velocities are identical to those in ordinary smectics. The sound attenuations have a different direction dependence, however. The breakdown of hydrodynamics found in conventional smectic liquid crystals, with three of the five viscosities diverging as 1/? at small frequencies ?, occurs in these systems as well and is identical in all its details. In addition, there is a diffusive phason mode, not found in ordinary smectic liquid crystals, that leads to anomalously slow mechanical response analogous to that predicted in quasicrystals, but on a far more experimentally accessible time scale.

Pre-eclampsia : The role of soluble VEGF receptor-1 and related anti-angiogenic factors beyond

Pre-eclampsia is a pregnancy complication that affects about 5% of all pregnancies. It is known to be associated with alterations in angiogenesis -related factors, such as vascular endothelial growth factor (VEGF). An excess of antiangiogenic substances, especially the soluble receptor-1 of VEGF (sVEGFR-1), has been observed in maternal circulation after the onset of the disease, probably reflecting their increased placental production. Smoking reduces circulating concentrations of sVEGFR-1 in non-pregnant women, and in pregnant women it reduces the risk of pre-eclampsia. Soluble VEGFR-1 acts as a natural antagonist of VEGF and placental growth factor (PlGF) in human circulation, holding a promise for potential therapeutic use. In fact, it has been used as a model to generate a fusion protein, VEGF Trap , which has been found effective in anti-angiogenic treatment of certain tumors and ocular diseases. In the present study, we evaluated the potential use of maternal serum sVEGFR-1, Angiopoietin-2 (Ang-2) and endostatin, three central anti-angiogenic markers, in early prediction of subsequent pre-eclampsia. We also studied whether smoking affects circulating sVEGFR-1 concentrations in pregnant women or their first trimester placental secretion and expression in vitro. Last, in order to allow future discussion on the potential therapy based on sVEGFR-1, we determined the biological half-life of endogenous sVEGFR-1 in human circulation, and measured the concomitant changes in free VEGF concentrations. Blood or placental samples were collected from a total of 268 pregnant women between the years 2001 2007 in Helsinki University Central Hospital for the purposes above. The biomarkers were measured using commercially available enzyme-linked immunosorbent assays (ELISA). For the analyses of sVEGFR-1, Ang-2 and endostatin, a total of 3 240 pregnant women in the Helsinki area were admitted to blood sample collection during two routine ultrasoundscreening visits at 13.7 ± 0.5 (mean ± SD) and 19.2 ± 0.6 weeks of gestation. Of them, 49 women later developing pre-eclampsia were included in the study. Their disease was further classified as mild in 29 and severe in 20 patients. Isolated early-onset intrauterine growth retardation (IUGR) was diagnosed in 16 women with otherwise normal medical histories and uncomplicated pregnancies. Fifty-nine women remaining normotensive, non-proteinuric and finally giving birth to normal-weight infants were picked to serve as the control population of the study. Maternal serum concentrations of Ang-2, endostatin and sVEGFR-1, were increased already at 16 20 weeks of pregnancy, about 13 weeks before the clinical manifestation of preeclampsia. In addition, these biomarkers could be used to identify women at risk with a moderate precision. However, larger patient series are needed to determine whether these markers could be applied for clinical use to predict preeclampsia. Intrauterine growth retardation (IUGR), especially if noted at early stages of pregnancy and not secondary to any other pregnancy complication, has been suggested to be a form of preeclampsia compromising only the placental sufficiency and the fetus, but not affecting the maternal endothelium. In fact, IUGR and preeclampsia have been proposed to share a common vascular etiology in which factors regulating early placental angiogenesis are likely to play a central role. Thus, these factors have been suggested to be involved in the pathogenesis of IUGR. However, circulating sVEGFR-1, Ang-2 and endostatin concentrations were unaffected by subsequent IUGR at early second trimester. Furthermore, smoking was not associated with alterations in maternal circulating sVEGFR-1 or its placental production. The elimination of endogenous sVEGFR-1 after pregnancy was calculated from serial samples of eight pregnant women undergoing elective Caesarean section. As typical for proteins in human compartments, the elimination of sVEGFR-1 was biphasic, containing a rapid halflife of 3.4 h and a slow one of 29 h. The decline in sVEGFR-1 concentrations after mid-trimester legal termination of pregnancy was accompanied with a simultaneous increase in the serum levels of free VEGF so that within a few days after pregnancy VEGF dominated in the maternal circulation. Our study provides novel information on the kinetics of endogenous sVEGFR-1, which serves as a potential tool in the development of new strategies against diseases associated with angiogenic imbalance and alterations in VEGF signaling.