CEO performance-based grants’ vesting provisions and debt contracts: Evidence from GAAP,Non-GAAP and KPI metrics

We examine the influence of CEOs’ equity and cash grants’ vesting provisions that are based on (i) accounting performance metrics prepared under US generally accepted principles (GAAP), (ii) non-GAAP performance metrics and (iii) key performance indicators (KPIs) on debt contracts. We find that grants with vesting provisions based on GAAP metrics and KPIs lead to a lower cost of debt, a lower likelihood of collateral requirements and less restrictive covenant terms. In contrast, performance-based grants with non-GAAP vesting provisions lead to a higher cost of debt, a higher likelihood of collateral requirements and more restrictive covenant terms. Supplementary analyses reveal that our results are incremental to other debtholder-friendly features in the CEO contracts, such as grants with debt-related performance measures and CEOs’ inside debt holdings, and robust to alternative variable definitions and specifications. Overall, our results suggest that debtholders understand the differing incentives associated with GAAP, non-GAAP and KPI-based performance measures, and incorporate these differences into debt contracts.     

The making of imperfect indicators for biodiversity: A case study of UK biodiversity performance measurement

This paper seeks to understand the process by which biodiversity performance indicators can be developed. In doing so, this paper examines how biodiversity performance measurements are inherently imperfect and reflects on the implications of that imperfectness. Using document analysis and semi-structured interviews, this research outlines the case of the UK Department for Environment, Food and Rural Affairs and their work in developing biodiversity indicators. Based on the concept of imperfect measurements, this paper outlines the conditions under which imperfect biodiversity indicators can be productive measurements leading to fertile debate and constant improvements, rather than flawed measurements that actors ‘make do’ with. This paper concludes the biodiversity indicators construction process requires a collaboration between a broad set of diverse organisations, including NGOs and research centres. Lastly, this paper outlines the need for ongoing and rigorous review of adopted measurements to reduce the potentially harmful nature of imperfect biodiversity performance measurement.     

OECD pension reform: The role of demographic trends and the business cycle

Using a new real-time dataset from Beetsma et al. (2020) containing all pension reform measures in 23 OECD countries between 1970 and 2017, we demonstrate that, in contrast to what one might a priori expect, the timing of pension reform measures coincides with business cycle shocks and not with current or projected demographic shocks. The OECD-wide demography only explains the general reform trend. We rationalize this finding using a political-economy model with two-sided adjustment costs to explain a lack of response of pension reform measures to changes in demographic indicators.     

A partial order toolbox for building synthetic indicators of sustainability with ordinal data

This paper designs and implements a statistical toolbox for the construction of synthetic indicators of sustainability and rankings of multidimensional systems of ordinal variables. The toolbox employs results from partial order theory to provide a purely ordinal way to perform the classical steps of indicator construction (i.e., with neither quantification nor aggregation of the input variables) and thus fills a gap in the statistical literature. “Ordinal” non-aggregative procedures are developed to score statistical units and assess the reliability of the final rankings as well as account for exogenous information relating to variable importance. The toolbox is introduced and shown in action through the real example of Sustainable Development Goal 16 (Peace, Justice, and Strong Institutions), specifically as it relates to Political Pluralism and Participation in North and South American countries.     

The diffusion of innovation theory and the effects of IFRS adoption by multinational corporations on capital market performance: a cross-countryanalysis

This article seeks to contribute to International Financial Reporting Standards (IFRS) literature by examining the effects of adopting IFRS on stock market performance worldwide from the diffusion of innovation theory perspective. Our study revealed several interesting findings after using combinations of unique panel data sets from 110 countries worldwide and conducting a robust empirical analysis from 1995 to 2014. First, we found a positive association between late mandatory IFRS adoption and stock market integration in Europe. Second, our findings indicate a significant negative association between early IFRS adoption and the following financial indicators: stock market trading volumes, stock market capitalization, market turnover, and market return. Third, our study reveals an insignificant association between early IFRS adoption and stock price volatility alongside stock market development. Our findings are robust and have significant practical and policy implications for regulators and policymakers of multinational corporations.     

Group penalized logistic regressions predict up and down trends for stock prices

Stock prices are influenced by many economic factors, investors psychology and expectations, movement of other stock markets, political events, etc. Therefore, correctly predicting up and down trends for stock prices is an important puzzle in the financial field. In this paper we combine technical analysis with group penalized logistic regressions, and propose group SCAD/MCP penalized logistic regressions with technical indicators to predict up and down trends for stock prices. Firstly, we screen out 24 important technical indicators, divide them into the five different indicator groups, and construct group SCAD/MCP penalized logistic regressions for the three listed companies. Secondly, we apply the training set to learn the parameter estimators and the probability estimators for the two group penalized logistic regressions, adopt the test set to obtain confusion matrices and ROC(Receiver Operating Characteristic) curves to assess their prediction performances, and found that the AUC values to the three companies all exceed 0.78. Finally, we compare group SCAD/MCP penalized logistic regressions with SCAD/MCP penalized logistic regressions, and found that the two group penalized logistic regressions perform better than the two penalized logistic regressions in terms of prediction accuracy and AUC. Therefore, in this paper we develop a new prediction method by combining group SCAD/MCP penalized logistic regressions with technical indicators to improve the prediction accuracy and bring huge economic benefit for investors.     

俄罗斯教育竞争力指标与管理

教育竞争力是国家竞争力的基础。提高教育竞争力是俄罗斯国家发展战略的核心任务。俄罗斯通过制定国家发展战略和联邦教育发展纲要规定了教育竞争力纲要指标,通过联邦政府决议规定了简称为“5-100”的纲要外指标,并为实现纲要外目标成立了专门的咨议机构。本文依据指标的功能属性,对纲要指标进行分类,介绍了俄罗斯教育竞争力指标的赋值方法,较详尽介绍和分析了纲要外指标的内容和管理,并以最新数据说明了俄罗斯大学教育竞争力进展情况。在实证分析的基础上,概括了纲要管理法和目标管理法在提高教育竞争力方面各自的有效性。本文对俄罗斯在教育竞争力指标设计及为提高教育竞争力所做努力的分析和研究,可为国际教育比较研究提供了参考。     

A composite indicator of social inclusion for EU based on the inverted BoD model

In this paper, after reviewing the existing modeling approaches for reverse indicators, we opt for the use of the inverted Benefit-of-the-doubt (IBoD) model when all the considered indicators are reverse, as is the case with composite indicators related to social inclusion. Using EU data for 2014 we provide comparative empirical results using the IBoD model and three data transformations employed by previous studies. We also provide a thorough analysis of the performance of EU countries during the period 2011–2020 in terms of the composite indicator obtained from the IBoD model. Our empirical results indicate that relative performance across the EU has neither improved nor deteriorated and there is evidence supporting local instead of global convergence in social inclusion with certain groups of countries.     

Measuring the sustainability of Cuban tourism destinations considering stakeholders' perceptions

The aim of this research consists of measuring the sustainability degree for tourism destinations considering the stakeholder's preferences. Their opinions were included in the overall process during the choice of the initial indicators and determining the weights. Additionally, in the aggregation process, a sustainability index was calculated with a multiple criteria decision theory methodology, according to its ability to embrace the participant opinions in the decision‐making process. Results allows determining the sustainability degree and the identification of strengths and weaknesses in terms of goals attainment. To corroborate the robustness of the index, an analysis of the rankings was performed.