Paying for long-term performance: restructuring bankers’ pay for risk regulation

The purpose of this paper is to propose hybrid capital securities as a new approach to compensation for senior bank executives and risk-takers instead of cash or equity-based compensation currently adopted by the industry. The global financial turmoil indicated that misaligned pay-for-performance compensation arrangements encouraged management short-termism and rewarded excessive risk-taking behaviour in Anglo-Saxon system. Rather than regulating specific instruments and processes, we believe that it is much more efficient to overhaul the compensation scheme to align it with risk management and governance. This empirical paper investigates the European hybrid market by employing data from the Merrill Lynch Global Index System from 2000 to 2010. Our paper contributes to both literature and practices by designing a structured scheme to tie the executive’s interests to long-term performance of the bank, the goal of regulators and the economy at large which consequently reduce the probability of future bank failures.

Do personality traits predict ‘complaining’ consumers?

Although the effects of personality traits on complaining behaviour emerged in the early 1980s, there is limited research in the service industry. The purpose of this study is to examine whether consumer personality traits influence intentions to complain and whether product price and product types moderate the relationship between personality traits and intentions to complain in the retail industry. The research model is tested by logistic regression analysis on two groups of consumers who report passive and active complaining intentions. The study reveals that conscientious consumers who are open to new experiences tend to have higher intentions to complain. Being extroverted does not have any influence on complaining behaviour. Whilst price levels (low/high) and product types (grocery, clothing and electronics) improve the predictive ability of the complaining behaviour, the interaction effects relating to the three personality traits are statistically insignificant. Theoretical and managerial implications of the study findings are discussed.

Oljudens musik : En revolution i kompositionsteknik?

Noise music is created around sounds not often welcome in a musical context. Since the birth of electronic music in the 1950s a new perspective on composing has emerged. In electronic music, sounds and their timbre are as much important as melody, harmony and rhythm. This composing perspective is not often observed. Therefore I have examined a musical genre that stretches the boundaries of what we consider music, sound, noise, beautiful and terrible. The aim of this thesis is to investigate what aesthetic ideals noise musicians have when they create music. I examine the composing processes of three noise musicians, by asking the following questions: Do you compose in advance or do you improvise, how do your control of sound look like, how do you use the human voice and how do you categorize sound? The thesis is constructed around interviews I have made with the musicians and an extensive historical background concentrated on the alternative composing techniques that has led to the development of noise music. Among the results I found that these noise musicians always improvise with material, but the real essence of noise music is the character of the sounds, not their origins or material. Composing in advance for sound is a lot more difficult than traditional composing. Another result is that these noise musicians have extensive control of their instruments and can produce the sounds they wanted. They point out the importance of instruments that produce sound not directly controlled by themselves, something that create a musical quality that they aspire.