The Determinants of Stock Option Compensation: Evidence from Finland

A new, long, and rich panel data set consisting of all Finnish publicly traded firms is used to study how firm characteristics and stock market developments influence the adoption and targeting of stock option compensation. Stock option adoption is found to be a procyclical phenomenon. Findings from firm‐level econometric analysis often corroborate those based on U.S. data, but important differences also emerge. Findings include: (i) firms with higher market value per employee are more likely to use stock option compensation; (ii) share returns from the past year affect the adoption of targeted stock options, but not broad‐based plans; (iii) our results are consistent with the hypothesis that selective and broad‐based plans arise as solutions to differing monitoring difficulties. Broad‐based schemes are observed when production is human capital‐intensive and employee performance is hard to monitor, while selective schemes are adopted when ownership is dispersed and therefore owners may have weak incentives to monitor management.     

Look sharp,feel sharp,be sharp and listen — anecdotal excellence: People,places and things

While the techniques become more sophisticated, the hardware and software go through new generations and we move towards such unexplored options as internet fundraising and legal restraints, the challenges and successes in the field of fundraising and in the personality of fundraisers should not change very much: they are faced with the assignment of making the donors feel important, the causes seem attractive, and making the system move with ease and comfort for everyone concerned. The author gives strong credence to such ‘simple’ matters as appearance, health, ethics, virtue and giving attention to words as well as innuendo. The reader will learn if he or she ‘listens’ to the message of this paper; if, on the other hand, he or she is looking for a shortcut or a foolproof plan short of living and loving in the field, it will not be found — in this or any other paper. Fundraising is a synergestic system: you put everything you know together, and it comes out to equal more than the sum of its parts. Still, you keep on learning. The best fundraiser has not yet been born; the most successful campaign has not yet begun; the wisdom is still being assembled. This paper is one man's overview of where we have been, what we are doing in best practice scenarios, and what is possible if we ‘Look sharp, feel sharp, be sharp and listen’; it includes a good overview of ‘Anecdotal excellence: people, places and things’. The paper starts with a word from God and ends with a reminder for us all: ‘We must remember — to look forward!’ Copyright © 2002 Henry Stewart Publications     

Analysis of Beef Producers' Risk Management Perceptions and Desire for Further Risk Management Education

Beef cattle producers were surveyed in Texas and Nebraska to investigate perceptions of sources of risk, the effectiveness of risk management strategies, and interest in further risk management education, particularly production risk, using probit analysis. Important decision variables identified are age, prior use of risk management tools, previous attendances of risk management education, and risk aversion. Severe drought and cattle price variability are identified as primary risk factors with potential to affect farm income. Extremely cold weather and disease are of less importance. Understocking pasture and storing hay are perceived most effective as risk management options.     

The Effects of Participation and Job-Relevant Information on the Relationship Between Evaluative Style and Job Satisfaction

This study investigates the intervening effects of budgetary participation and job-relevant information on the relationship between budget emphasis and job satisfaction. It proposes that budgetary participation and job-relevant information are endogenous to budget emphasis. Using the path analytical technique and based on a sample of 152 senior managers, the study found that budget emphasis has an insignificant direct effect on job satisfaction, but a strong indirect effect through job-relevant information and budgetary participation. The results also indicate that job-relevant information has an intervening effect on the relationship between participation and job satisfaction.     

Estimating the Size of a Criminal Population from Police Records Using the Truncated Poisson Regression Model

The truncated Poisson regression model is used to arrive at point and interval estimates of the size of two offender populations, i.e. drunk drivers and persons who illegally possess firearms. The dependent capture–recapture variables are constructed from Dutch police records and are counts of individual arrests for both violations. The population size estimates are derived assuming that each count is a realization of a Poisson distribution, and that the Poisson parameters are related to covariates through the truncated Poisson regression model. These assumptions are discussed in detail, and the tenability of the second assumption is assessed by evaluating the marginal residuals and performing tests on overdispersion. For the firearms example, the second assumption seems to hold well, but for the drunk drivers example there is some overdispersion. It is concluded that the method is useful, provided it is used with care.     

DETERMINANTS OF GOODWILL AMORTIZATION PERIOD

This study investigates whether economic consequences have an effect on the length of the period over which goodwill is amortized. It finds that there is a significant relationship between the size of the firm and the length of the amortization period. It also finds, when the only firms included in the sample are those reporting debt covenant restrictions dependent in part on goodwill accounting, evidence that the length of the amortization period for goodwill is related to the firm's leverage.     

Estimating the effectiveness of extension information systems using farm trials and subjective probabilities

A method of combining survey data and Dairy Herd Improvement Association (DHIA) records to achieve low cost farm trials is presented. Farm trials and surveys of current practices and production responses are useful to identify yield gaps between expectations predicted from experimental findings and actual field results. Different management schemes can be ranked using subjective probabilities and stochastic dominance to enhance successful implementation of research findings and to increase the feedback between researchers, extension workers, and producers. A survey of current masitis control practices and expected milk yield response is the example. Combining survey results with DHIA records allowed estimating the relationship between somatic cell counts (SCC) and milk yield. Eliciting beliefs about the relationship between SCC and milk yield showed that producers agreed with predictions from the statistical model. Subjective probabilities about SCC and mastitis control practices showed that our sample of experts and producers consistently ranked the different practices but extension agents had no consensus about the the most or least effective ones.     

Competition and structural change in Eastern Europe

Widely publicized reform programs for East Europe which emphasize rapid privatization are questioned on the grounds that structural changes to assure workable competition take precedence and will take years. A mix of deconcentrated state, cooperative, worker-owned, private, and foreignowned business can be workable. Import competition and antitrust legislation have auxiliary roles.     

FIRST-MOVER ADVANTAGE: THE OPPORTUNITY CURVE

A model depicting first-mover dynamics is proposed wherein certain types of strategic barriers activated by the first-mover strategy figure prominently in preserving benefits in the time dimension. Strategic barriers conferring singularity (i.e. one-time benefit) are considered to be the most effective preservers of first-mover advantage. the theoretical model is tested empirically in a study of six major industries. Benefits operationalized as industry share and profit share were found to decline consistently with industry age according to an exponential function designated the opportunity curve.