too many performance measures and too much complexity;
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arbitrary targets that are subject to intense lobbying by executives;
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caps and floors that narrow the payout range and stifle incentives;
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performance measured at a level too high to be meaningful for most managers, or too low to encourage teamwork; and
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a failure to integrate the incentive plan into the overall compensation philosophy.
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After examining these problems, the author offers 12 suggestions for implementing plans that support management's aspirations to create value for shareholders.
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A closer look at BBW's regression analysis suggests that investors, while apparently ignoring the cost of equity, put great weight on the cost of debt —a puzzling result in need of an explanation.
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The attempt by BBW to "level the playing field" effectively makes the NOPAT model into a NOPAT and capital model. Thus, it is really an EVA model in disguise and offers no insight into the explanatory power of NOPAT or earnings by itself.
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BBW's model of expectations is too simple. The ability of EVA to explain shareholder returns depends upon the accuracy of the model of expected EVA performance, and BBW make no attempt to derive a model of expected EVA improvement from the EVA valuation equation.
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Trust toward others is positively correlated with both religious observance and Catholic affiliation (and practice ).
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There is a positive correlation between trust in the government, in the police, in the armed forces, in the judiciary and in the banking system and religious practice in general. Identical positive findings are obtained for Catholic affiliation and practice , although they may be affected by a majority effect.
Moreover, there is no evidence to support the hypotheses of a negative effect of religion on social capital. 相似文献
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Wind power is an abundant and clean source of energy for the U.S. both now and in the future.
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Wind power is now economically viable in some parts of the country, and would be viable throughout the wind-rich mid-section of the U.S. if we had a national transmission grid.
But developing such a grid faces several hurdles, including the cost of construction and the need for state-by-state approvals of interstate transmission lines. To overcome these obstacles, the authors offer the following policy recommendations:
Federal oversight of the construction of the national transmission grid. Moving toward renewable sources of energy and reduced greenhouse gas from the use of coal changes the problem of managing electric power generation from a local to regional and national problem. This requires broader cooperation and coordination to ensure the construction and management of reliable sources of electric power.
Identify adequate sources of financing. The positive economics of wind power suggest that wind farm development and transmission grid installation should attract sufficient private funding to fully develop the 20% wind solution. But because of the sheer size of the plan, completing it may require innovative financing structures that include the possibility of some combination of public and private funding sources.
Nevertheless, reliance on VAR can result in serious problems when improperly used, and would-be users of VAR are advised to consider the following three pieces of advice:
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First, VAR is a tool for firms engaged in total value risk management. Companies concerned not with the value of a stock of assets and liabilities over a specific time horizon, but rather with the volatility of a flow of funds, are often better off eschewing VAR altogether in favor of a measure of cash flow volatility.
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Second, VAR should be applied very carefully to companies that practice "selective" risk management those firms that choose to take certain risks as a part of their primary business. When VAR is reported in such situations without estimates of corresponding expected profits, the information conveyed by the VAR estimate can be extremely misleading.
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Third, as a number of recent derivatives disasters are used to illustrate, no form of risk measurement including VAR–is a substitute for good management. Risk management as a process encompasses much more than just risk measurement. Indeed, risk measurement (whether using VAR or some of the alternatives proposed in this article) is pointless without a well-developed organizational infrastructure and IT system capable of supporting the complex and dynamic process of risk taking and risk control.
The article begins by dividing the compensation debate into four key issues:
First, while public outrage has focused on the size of the pay packages at failed financial institutions, it is perhaps more important to focus on the structure of compensation and the process of setting compensation to prevent future crises. An effective pay package is not necessarily the one most laden with equity incentives. Too much equity exposure can cause excessive risk-taking, manipulation, and shift executive attention away from true value creation.
Second, incentive structures should incorporate indexing and clawbacks to guard against the possibility that performance benchmarks are rewarding luck more than sustainable, long-run performance.
Third, the compensation-setting process should be placed in the hands of shareholders, boards, and advisors who are not only independent but also possess ample expertise in the financial instruments used to incentivize pay.
Fourth and finally, any proposals for changes in compensation design or the taxation of compensation should anticipate how executives will alter their behavior in response to the changes, and evaluate the effect of the changes net of such offsetting responses.
The author argues that improvements in governance should focus on achieving the following:
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Organization structures that leverage external alliances while improving internal collaboration. This involves gaining acceptance of and support for a common aspiration across the company—the goal of deploying financial and human resources, complemented by technology, to build shareholder wealth.
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corporate IR activities and the number of stock analysts who follow the firm;
This article presents an alternative framework to estimate the discount for private companies that computes four separate valuation multiples for a set of private transactions and a comparable set of public transactions. After comparing these four sets of multiples for both domestic and foreign firms, the authors reach the following conclusions:
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Domestic private companies are acquired at an average 20–30% discount relative to similar public companies when using earnings (more precisely, EBIT and EBITDA) multiples as the basis for valuing the transactions. The average discount measured using price- to-book value multiples are somewhat lower, and there are no significant differences between the revenue multiples of acquired private and public companies.
In this article, the authors use the term organizational architecture to refer to three key elements of a company's design:
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the assignment of decision-making authority–who gets to make what decisions;
Further analysis of the chosen companies suggests that they are distinguished by a number of common capabilities:
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an alert perception of customer values, allowing for quick detection of major shifts in demand or environmental conditions;