Performance-Based Long Term Incentive Compensation and Firm Performance

Awarding executives long-term incentive pay based on firm performance is often described as a natural way to improve firm performance. This brief uses an analytical approach to examine that proposed relationship. We first document the prevalence of performance-based long-term incentive (PB LTI) measures and the trends in the relative size of these measures compared to aggregate measures of compensation. We then compare the characteristics and performance of firms that have implemented a PB LTI measure in the past to those that have not. In order to understand the impact of PB LTI awards on firm performance, we separately assess the roles of the existence of the PB LTI measures, the relative size of the measures, and the type of PB LTI measure on firm performance

Corporate Governance Practices to Restore Trust, Focus on Long-Term Performance, and Rebuilding Leadership

Summary of the three CED corporate governance reports: Private Enterprise, Public Trust: The State of Corporate Governance After Sarbanes-Oxley (2006); Built to Last: Focusing Corporations on Long-Term Performance (2007); and Rebuilding Corporate Leadership: How Directors Can Link Long-Term Performance with Public Goals (2009)

Rapid internationalization and long-term performance: The knowledge link

Drawing on the knowledge-based view and organizational learning theory, we develop and test a set of hypotheses to provide a first attempt at analyzing the effect of speed of internationalization on long-term performance. Using a panel-data sample of Spanish listed firms (1986-2010), we find that there is an inverted U-shaped relationship between speed of internationalization and long-term performance. We also find that whereas technological knowledge steepens this relationship, the diversity of prior international experience flattens it. Our results contribute to the existing IB literature on the performance of FDI, cross-country knowledge transferability, and nonsequential entry

IPO-related organizational change and long-term performance

Mainstream literature on long-term performance of initial public offerings focuses on long-term underperformance. Because underperformance is an anomalous phenomenon, many authors search for explanations based on financial market imperfections. More recently, however, the attention shifts from underperformance to long-term performance in general. This induces the search for other than financial market imperfections in explaining under- or outperformance. This article presents the idea that in many companies the preparation for the IPO and the IPO itself may bring organizational change. It searches for IPO-related organizational change in The Netherlands with interviews of Dutch corporate officers. The research shows that an IPO primarily changes financial management and financial reporting, but that other types of organizational change may also be relevant. Moreover, long-term stock market performance was on average higher in companies where IPO-related organizational changes were reported than in companies where the changes were not reported.

Long-Term Performance Evaluation Of NUdeck In Kearney East Bypass

The Kearney East Bypass bridge is the first project that implements the newly developed precast concrete deck system (known as 2nd generation NUDECK). The new system consists of full-depth full-width precast prestressed concrete deck panels that are 12 ft (3.66 m) long each. The panels have covered shear pockets at 4 ft (1.22 m) spacing on each girder line to host clustered shear connectors that are adjustable in height. Narrow unreinforced transverse joints are used to eliminate the need for deck overlay. Also, deck panels are post-tensioned in the longitudinal direction using a new post-tensioning system that eliminates the need for post- tensioning ducts, strand threading, and grouting operations. The project has twin bridges: a southbound bridge with cast-in-place (CIP) concrete deck, and northbound bridge with the new precast concrete (PC) deck system. The two bridges were completed in the fall of 2015 and opened to traffic in the fall of 2016. Due to the unique features of the new PC deck system, this research project was initiated to monitor short-term performance using live load test and long-term performance under traffic loads to evaluate the system performance. Both CIP concrete deck and PC deck bridges were instrumented and tested during the summer of 2016 to compare the performance of their superstructures. Also, finite element analysis (FEA) was conducted to predict the performance of the new PC deck system. The results of both analytical and experimental investigations indicated that the PC deck system performs as predicted and very comparable to the conventional CIP concrete deck

Dynamics of Content Quality in Collaborative Knowledge Production

We explore the dynamics of user performance in collaborative knowledge production by studying the quality of answers to questions posted on Stack Exchange. We propose four indicators of answer quality: answer length, the number of code lines and hyperlinks to external web content it contains, and whether it is accepted by the asker as the most helpful answer to the question. Analyzing millions of answers posted over the period from 2008 to 2014, we uncover regular short-term and long-term changes in quality. In the short-term, quality deteriorates over the course of a single session, with each successive answer becoming shorter, with fewer code lines and links, and less likely to be accepted. In contrast, performance improves over the long-term, with more experienced users producing higher quality answers. These trends are not a consequence of data heterogeneity, but rather have a behavioral origin. Our findings highlight the complex interplay between short-term deterioration in performance, potentially due to mental fatigue or attention depletion, and long-term performance improvement due to learning and skill acquisition, and its impact on the quality of user-generated content