Managerial Attributes, Incentives, and Performance

2020 ◽  
Author(s):  
Jeffrey L Coles ◽  
Zhichuan (Frank) Li
Keyword(s):  
Fixed Effects ◽  
Parameter Estimates ◽  
Firm Risk ◽  
Managerial Ability ◽  
Corporate Policies ◽  
Executive Incentives ◽  
Editorial Decision ◽  
And Performance ◽  
Policy Risk ◽  
Time Invariant

Abstract We examine the relative importance of observed and unobserved firm- and manager-specific heterogeneities in determining executive compensation incentives and firm policy, risk, and performance. First, we decompose executive incentives into time-variant and time-invariant firm and manager components. Manager fixed effects supply 73% (60%) of explained variation in delta (vega). Second, controlling for manager fixed effects alters parameter estimates and corresponding inference on observed firm and manager characteristics. Third, larger CEO delta (vega) fixed effects predict better firm performance (riskier corporate policies and higher firm risk). These results suggest that the delta (vega) fixed effect captures managerial ability (risk aversion). (JEL G3, G32, G34, J24, J31, J33) Received September 7, 2018; editorial decision February 21, 2020 by Editor Andrew Ellul.

Dental Care Use, Edentulism, and Systemic Health among Older Adults

2021 ◽  
pp. 002203452110190
Author(s):  
C.D. Meyerhoefer ◽  
J.V. Pepper ◽  
R.J. Manski ◽  
J.F. Moeller
Keyword(s):  
Older Adults ◽  
Heart Disease ◽  
Chronic Illness ◽  
Dental Care ◽  
Fixed Effects ◽  
Past Research ◽  
Positive Correlations ◽  
Systemic Health ◽  
Time Invariant ◽  
Retirement Study

Past research suggests there are systematic associations between oral health and chronic illness among older adults. Although causality has not yet been credibly established, periodontitis has been found to be associated with higher risk of both heart disease and stroke. We advance this literature by estimating the direct association between dental care use and systemic health using multiple waves of the 1992 to 2016 Health and Retirement Study. Through the inclusion of individual fixed effects in our regression models, we account for unobservable time-invariant characteristics of individuals that might otherwise bias estimates of the association between dental care use and health. We find statistically significant negative associations between dental care use and the number of health conditions, self-reported overall health, the incidence of heart disease, and the incidence of stroke. In particular, the use of dental care within the past 2 y is associated with a 2.7% reduction in the likelihood of being diagnosed with a heart condition and a reduction in the likelihood of a stroke diagnosis of between 5.3% and 11.6%. We also find large positive correlations between edentulism and the measures of chronic illness. Associations from models estimated separately for men and women are qualitatively similar to one another. These findings provide additional motivation for the consideration of a Medicare dental benefit.

The Importance of Oversight and Agency Capacity in Enhancing Performance in Public Service Delivery

2020 ◽  
Author(s):  
Cody A Drolc ◽  
Lael R Keiser
Keyword(s):  
Service Delivery ◽  
Performance Management ◽  
Fixed Effects ◽  
Poor Performance ◽  
Central Component ◽  
State Agencies ◽  
Public Programs ◽  
And Performance ◽  
Fixed Effects Regression ◽  
Social Security Disability

Abstract Government agencies often encounter problems in service delivery when implementing public programs. This undermines effectiveness and raise questions about accountability. A central component of responsiveness and performance management is that agencies correct course when problems are identified. However, public agencies have an uneven record in responding to problems. In this paper we investigate whether, and to what extent, capacity both within the agency and within institutions performing oversight, improves agency responsiveness to poor performance indicators. Using panel data on eligibility determinations in the Social Security Disability program from U.S. state agencies from 1991-2015 and fixed effects regression, we find that indicators of agency and oversight capacity moderate the relationship between poor performance and improvement. Our results suggest that investments in building capacity not only within agencies, but also within elected institutions, are important for successful policy implementation. However, we find evidence that while agency capacity alone can improve responsiveness to poor performance, the effect of oversight capacity on improving performance requires high agency capacity.

scholarly journals Bayesian inference of genetic parameters for reproductive and performance traits in White Leghorn hens

2018 ◽  
Vol 63 (No. 6) ◽  
pp. 230-236 ◽  
Author(s):  
J.O. Rosa ◽  
G.C. Venturini ◽  
T.C.S. Chud ◽  
B.C. Pires ◽  
M.E. Buzanskas ◽  
...  
Keyword(s):  
Bayesian Inference ◽  
Fixed Effects ◽  
Egg Production ◽  
Genetic Parameters ◽  
Laying Hens ◽  
Reproductive Traits ◽  
A Posteriori ◽  
White Leghorn ◽  
Performance Traits ◽  
And Performance

This study estimated the genetic parameters for reproductive and performance traits and determined which ones can be used as selection criteria for egg production in laying hens using the Bayesian inference. The data of 1894 animals from three generations of White Leghorn laying hens were analyzed for fertility (FERT), hatchability (HATC), and birth rate measurements at 60 weeks of age (BIRTH), body weight at 16 and 60 weeks of age (BW16 and BW60), age at sexual maturity (ASM), egg height/width ratio, weight, and density at 28, 36, and 40 weeks of age (RHW28, RHW36, RHW40, WEGG28, WEGG36, WEGG40, DENS28, DENS36, and DENS40, respectively) traits. The genetic parameters were estimated by the Bayesian inference method of multi-trait animal model. The model included the additive and residual genetic random effects and the fixed effects of generation. The a posteriori mean distributions of the heritability estimates for reproductive traits ranged from 0.14 ± 0.003 (HATC) to 0.22 ± 0.005 (FERT) and performance from 0.07 ± 0.001 (RHW28) to 0.42 ± 0.001 (WEGG40). The a posteriori mean distributions of the genetic correlation between reproductive traits ranged from 0.18 ± 0.026 (FERT and HACT) to 0.79 ± 0.007 (FERT and BIRTH) and those related to performance ranged from –0.49 ± 0.001 (WEGG36 and DENS36) to 0.75 ± 0.003 (DENS28 and DENS36). Reproductive and performance traits showed enough additive genetic variability to respond to selection, except for RHW28. This trait alone would have little impact on the genetic gain because environmental factors would have a higher impact compared to those from the additive genetic factors. Based on the results of this study, the selection applied on the BIRTH trait can be indicated to improve FERT and HATC of eggs. Furthermore, the use of the WEGG40 could improve egg quality in this population.

The financial consequences of human capital disclosure as part of integrated reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Salvi ◽  
Nicola Raimo ◽  
Felice Petruzzella ◽  
Filippo Vitolla
Keyword(s):  
Human Capital ◽  
Firm Value ◽  
Fixed Effects ◽  
Cost Of Capital ◽  
Positive Impact ◽  
Firm Risk ◽  
Integrated Reporting ◽  
Content Type ◽  
Financial Consequences ◽  
The Cost

PurposeThe purpose of this paper is to analyse the financial consequences of the level of human capital (HC) information disclosed by firms through integrated reports. Specifically, this work examines the effect of HC information on the cost of capital and firm value.Design/methodology/approachA manual content analysis is used to measure the level of HC information contained in integrated reports. A fixed-effects regression model is used to analyse 375 observations (a balanced panel of 125 firms for the period 2017–2019) and test the financial consequences of HC disclosure.FindingsThe empirical outcomes indicate that HC disclosure has a significant and negative effect on the cost of capital and a positive impact on firm value. Our results show that companies can reduce investors' perceived firm risk by improving HC disclosure, leading to a lower cost of capital. Moreover, our findings support the notion that increased levels of HC disclosure are linked to firms' improved access to external financial resources, consequently enhancing firm value.Originality/valueThis study is the first contribution to examine the financial consequences of HC disclosure and is one of the first to examine the level of HC information within integrated reports.

1 Effect of Conditioning, Rest, and Post-rest Transport Duration on Welfare Indicators of Beef Cattle Transported by Road

2021 ◽  
Vol 99 (Supplement_3) ◽  
pp. 2-3
Author(s):  
Daniela M Melendez ◽  
Sonia Marti ◽  
Timothy D Schwinghamer ◽  
Derek B Haley ◽  
Karen S Schwartzkopf-Genswein
Keyword(s):  
Beef Cattle ◽  
Factorial Design ◽  
Random Effects ◽  
Fixed Effects ◽  
Rest Period ◽  
Flight Speed ◽  
Beef Calves ◽  
Welfare Indicators ◽  
Preliminary Results ◽  
And Performance

Abstract The aim of this study was to assess the effects of conditioning, rest, and post-rest transport duration on welfare indicators of 6–7 mo old beef calves. Three hundred and twenty-eight weaned calves (237 ± 29.7 kg BW) were randomly assigned to a 2 × 2 × 2 nested factorial design: conditioning, conditioned (C) or non-conditioned (N); rest, 0 (R0) or 8 (R8) h, and post-rest transport, 4 (T4) or 15 (T15) h. Calves were sampled prior to the first loading (L1), after 20h of transport, prior to and after the additional 4 or 15-h transport, and at 1, 2, 3, 5, 14, and 28 d after transport ended. Data were analyzed using the GLIMMIX procedure of SAS. Fixed effects included conditioning, transport and time nested within rest period, while random effects included animal and pen. Greater shrink (P < 0.01) was observed in C than N calves after the initial 20-h transport. The N calves had greater (P < 0.01) ADG than C calves between L1 and d 5, while C had greater (P < 0.01) ADG than N calves between 14 and 28 d. L-lactate concentrations and flight speed were greater (P ≤ 0.05) in C than N calves between L1 and d 5. The R8-T4 calves had greater (P < 0.01) ADG than R8-T15 calves between L1 and d 5. The R0-T4 calves had greater (P = 0.02) L-lactate concentrations than R0-T15 and R8-T4 calves on d 1. The R0 calves had greater (P < 0.01) ADG than R8 calves between 14 and 28 d. Preliminary results show physiological, behavioral, and performance differences across treatments, however, additional indicators are required to accurately assess the effect of conditioning, rest, and post-rest transport durations on calf welfare.

scholarly journals Fixed Effects Vector Decomposition: A Magical Solution to the Problem of Time-Invariant Variables in Fixed Effects Models?

2011 ◽  
Vol 19 (2) ◽  
pp. 135-146 ◽  
Author(s):  
William Greene
Keyword(s):  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Fe Model ◽  
Real World Data ◽  
Problem Of Time ◽  
Dummy Variable ◽  
Vector Decomposition ◽  
Step Procedure ◽  
Time Invariant ◽  
Subsequent Literature

Plümper and Troeger (2007) propose a three-step procedure for the estimation of a fixed effects (FE) model that, it is claimed, “provides the most reliable estimates under a wide variety of specifications common to real world data.” Their fixed effects vector decomposition (FEVD) estimator is startlingly simple, involving three simple steps, each requiring nothing more than ordinary least squares (OLS). Large gains in efficiency are claimed for cases of time-invariant and slowly time-varying regressors. A subsequent literature has compared the estimator to other estimators of FE models, including the estimator of Hausman and Taylor (1981) also (apparently) with impressive gains in efficiency. The article also claims to provide an efficient estimator for parameters on time-invariant variables (TIVs) in the FE model. None of the claims are correct. The FEVD estimator simply reproduces (identically) the linear FE (dummy variable) estimator then substitutes an inappropriate covariance matrix for the correct one. The consistency result follows from the fact that OLS in the FE model is consistent. The “efficiency” gains are illusory. The claim that the estimator provides an estimator for the coefficients on TIVs in an FE model is also incorrect. That part of the parameter vector remains unidentified. The “estimator” relies upon a strong assumption that turns the FE model into a type of random effects model.

scholarly journals Do Managerial Ability Impact Indonesian Firm Risk-Taking Behavior?

2020 ◽  
Vol 12 (1) ◽  
pp. 18
Author(s):  
Emiliya Rahma Wati ◽  
Heru Tjaraka ◽  
Erina Sudaryati
Keyword(s):  
Risk Taking ◽  
Firm Value ◽  
Structural Equation ◽  
High Ability ◽  
Manufacturing Companies ◽  
Firm Risk ◽  
Managerial Ability ◽  
Risk Taking Behavior ◽  
Corporate Investors ◽  
Low Ability

This study aims to examine the role of managerial in firm decisions. This study recognizes that managerial plays an important role in corporate decision making. Decisions carried out by the company are not only influenced by the manager's explicit mandate to maximize firm value, but also by the manager's ability to manage the company. In previous research it was found that high-ability and low-ability managers have opposite effects on firm behavior and firm value. High-ability managers accept risk-taking whereas low-ability managers refrain from taking risks. Managerial Ability in this study was measured using DEA (Data Envelopment Analysis) while for firm risk-taking behavior using the return on assets (ROA), return on equity (ROE), and research and development costs to total assets (R&D). The model used in this study is a causality model or the relationship of influence between research variables. The proposed model is analyzed using the Structural Equation Model (SEM) causality technique. This research was conducted on manufacturing companies listed on IDX (Indonesian Stock Exchange) in 2013-2017. However, unlike previous studies, the results of this study indicate that highly capable managers play a role in minimizing corporate risk taking. This research contributes as a reference for Indonesian corporate investors and also regulators as a reflection of the effectiveness of regulations made in Indonesia.

scholarly journals Determinants Factors of Crafters Performance of SME’s at Tapis, Province of Lampung

2021 ◽  
Vol 8 (1) ◽  
pp. 10
Author(s):  
Mieke Rahayu ◽  
Betty Magdalena
Keyword(s):  
Structural Equation ◽  
Organizational Characteristics ◽  
Equation Modeling ◽  
Work Culture ◽  
Innovation Capability ◽  
Managerial Ability ◽  
Analysis Technique ◽  
Verification Methods ◽  
And Performance ◽  
Positive Effect

This study aims to analyze and prove empirically the influence of managerial ability, work culture, organizational characteristics both partially and simultaneously on the innovation capability and performance of crafters at Tapis SMEs in Lampung Province. The research methods in this research are descriptive and verification methods. The population was 1,302 Tapis crafter in Lampung Province and a sample of 305 and as owner crafters as respondents, with questionnaires as data collection techniques, and data analysis technique was Structural Equation Modeling (SEM), using Lisrel 8.70. The results showed that partially or simultaneously, managerial ability, work culture, and organizational characteristics had a positive and significant influence on the capability of innovation. The results of this study also showed a positive effect of managerial ability, work culture, and innovation capabilities on the performance of crafters at Tapis SMEs in Lampung Province. Innovation capability can act as an intervening variable that strengthens the influence of managerial ability, organizational culture, and organizational characteristics on the performance of crafters the most dominant work culture influences the performance of craftsmen is 0.356. 

Wage Dispersion and Team Performance: The Moderation Role of Club Size

2021 ◽  
pp. 152700252110677
Author(s):  
Thadeu Gasparetto ◽  
Angel Barajas
Keyword(s):  
Team Performance ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Wage Dispersion ◽  
Financial Strength ◽  
Football Clubs ◽  
And Performance ◽  
The Impact ◽  
Robustness Check

Previous research on professional football offer conflicting results regarding the impact of wage dispersion on team performance. However, the existing intra-league heterogeneity among clubs is overlooked and could be the reason for the diverging outcomes. The aim of this paper is to reanalyze this relationship having the clubs’ size as moderator. Payroll – which captures the financial strength – is used as proxy of club size. Ordinary Least Squares regressions with season and league fixed effects are employed. Dispersion is measured by three indexes for robustness check. The outputs confirm the quadratic relationship between wage dispersion and performance, but adding that identical levels of dispersion have different impact on football clubs according to their financial strength.

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