The relevance of size, gender and ownership for performance-related pay schemes

With performance-related pay, the reward for an employee is partly dependent upon its own performance and/or on the performance of the organisation. In the Netherlands, performance-related pay is being implemented in SMEs an increasing scale. Currently, about 25% of Dutch SMEs make use of some kind of performance-related pay scheme, which may include profit sharing, bonuses, gratuities and stock options.� The aim of this study is to increase our understanding of the usage of performance-related pay schemes in Dutch small and medium-sized enterprises. In particular, we examine whether firm size, ownership structure, and gender of the entrepreneur and employees predict the presence of performance-related pay schemes. The results show that larger SMEs are more likely to use performance-related pay than smaller SMEs (as can be expected). We also find strong support for the presence of a gender effect. The results indicate that for male entrepreneurs, the use of performance-related pay is independent of the gender composition of the work force. For female entrepreneurs, we find that the usage of performance-related pay increases with the share of male employees. This relationship is such, that for firms where more than 70% of the workforce is male, female entrepreneurs are more likely to apply performance-related pay then male entrepreneurs. A possible explanation is that female entrepreneurs are more inclined to take the preferences of their employees into account when they determine the compensation scheme of their enterprise. Finally, the ownership structure also seems to matter. The results suggest that we should differentiate between (at least) three different ownership structures: single-owned and managed firms, family firms (firms with multiple owners that have family ties between them), and multiple-owned non-family firms. Once we do so, we find that single-owned and managed firms are just as likely to use performance-related pay schemes as family firms. Both types of firms use performance-related pay significantly less often than multiple-owned non-family firms. �

A Contracting-Agency Analysis of the Association between Firm Risk, Incentives and Firm Performance: An Australian Perspective

Tosi and Gomez-Mejia, (1989) suggest that the challenge of corporate governance is to set up supervisory and incentive alignment mechanisms that alter the risk and effort orientation of agents to align them with the interests of principals. The research problem is to discern the conditions that align the goals of the agent with those of the principal. These conditions will promote maximum effort in achieving the organisational goal thus maximizing shareholder wealth. Therefore, the objective of this study is to determine the efficiency of incentive contracts given certain characteristics of the firm. That is, the study sets out to determine whether risk firms with higher levels of incentives are associated with higher firm performance. In this study, data was collected from 40 of the top 500 Australian publicly listed companies. Information on incentives and firm characteristics was acquired from company annual and financial reports, a mailed questionnaire and the Australian graduate school of management risk measurement service of the University of New South Wales. The results of this study demonstrated how the relationship between firm risk and performance is associated with the incentive contracts used by these firms. In particular, the results of this study showed that the negative relationship between firm risk and firm performance is weakened by higher levels of share options in executives’ compensation contracts. In addition the results demonstrated that the relationship between firm performance and share ownership is dependent on the level of firm risk. The results of this study are expected to improve our understanding of how and why firms adopt different types of incentives in an effort to reduce agency costs. Rarely has prior research examined whether the effectiveness of the incentive contract in eliminating agency costs is associated with the environmental characteristics of the organisation (Bloom & Milkovich, 1998).Risk, compensation incentives, management share ownership, share options, firm performance.

The demographics of student device ownership: An examination of the personal computing ecosystems of students in higher education

Higher education has become dependent on the use of digital materials, which may include texts, audiovisual content, and software applications. Because students in higher education are largely responsible for providing the computing devices they are required to use to interact with their digital course materials, instructors and instructional designers are often unaware of the personal computing ecosystems in use by their students. This study describes a large-scale survey of student ownership and use of computing devices at a large public university in the midwestern United States. The results demonstrate that students generally have access to devices that allow them to engage with their digital course materials, but age and demographic factors correlated with socioeconomic status appear to impact the type and quality of devices owned. The study also shows that students have access to a variety of device types and that most students perform their computing tasks on a single screen. Understanding the personal computing ecosystems of students will allow instructors and instructional designers to develop course materials that are accessible to students on the devices in use and can inform the decision-making process when an institution considers adoption of new learning technologies. This data can also be used as a foundation for future studies that examine the influence of a student’s technology access and ownership on their academic outcomes

THE EFFECTS OF CORPORATE GOVERNANCE STRUCTURE AND FIRM CHARACTERISTIC TOWARDS ENVIRONMENTAL DISCLOSURE

This study aims to obtain empirical evidence about the effect of corporate governance structure and firm characteristic towards environmental disclosure of firms in Indonesia. Prior research review show that there is no consistency and have variety results. This research is a replication with modification of the research by Rao, et al (2012) and Burgwal and Vieira (2014) that examined the influence of corporate governance structure and firm characteristic on environmental disclosure. This study attempts to examine it with seven independent variables. These are independent commissioners, institutional ownership, board of commissioners size, proportion of women directors, firm size, profitability and industry type. The population of this study was all companies listed in Indonesia Stock Exchange (IDX) in 2012 and 2013. Sample consists of companies which disclose environmental disclosure through the GRI 3.1 index table on sustainability report so there are 59 firms that determined as samples and 59 observations of financial statements. Analysis of Covariance (ANCOVA) test was used as an analysis technique to examine the hypotheses. Statistic program in this study used SPSS 20. The results of this study showed that board of independent commissioners, board of commissioners size and industry type have significant positive effect on environmental diclosure. While institutional ownership, proportion of women directors, firm size and profitability have no significant influence on environmental disclosure. This research showed that corporate governance practices and firm characteristic in Indonesia was still minimize to control the extent of environmental disclosure

The emergence of large shareholders in mass privatized firms: Evidence from Poland and the Czech Republic

Mass privatization offers a particularly suitable framework to study the change in ownership concentration as the extent of change is unusual for a stable market economy. Focusing on two different mass privatization schemes in two transition economies, Poland and the Czech Republic, we find that despite important differences in the design of the two programmes and despite different quality of legal and regulatory framework, ownership structure in the two countries has rapidly evolved and the emerging ownership patterns are remarkably similar. This suggests that private benefits of control are large and the quality of investor protection regime is low in both countries. However, looking at the relationship between the change in ownership concentration and firm performance, we find an interesting difference between the two countries: in the Czech Republic the increase in ownership concentration seems to be less likely in poorly performing firms while in Poland the quality of past performance does not affect investors' willingness to increase their holdings. This effect may be interpreted in the light of the theory stressing the importance of the quality of investors' protection. It could be argued that if Czech investors are more risk averse and more concerned with diversification this is largely due to the weakness of the legal protection they face.http://deepblue.lib.umich.edu/bitstream/2027.42/40104/3/wp718.pd

The influence of blockholders on R and D investments intensity : evidence from Spain

This article studies the relationship between the presence of large shareholders in the ownership structure of firms and R and D investment. In our analysis, we consider the influence of three types of blockholders: banks, non-financial corporations, and individuals. Moreover, we incorporate an additional feature largely ignored in previous research, namely the number of blockholders. Consistent with our theoretical contention, our results indicate that the impact of large shareholders on the R and D investment is (1) negative when blockholders are banks, (2) positive when blockholders are non- financial corporations, and (3) null when blockholders are individuals. In addition, we find a systematic negative relationship between the number of blockholders and R and D investment. Finally, we contribute to current literature by extending our analysis in two novel ways. First, we test the impact of each blockholder type contingent to the life-cycle stage of firms. Second, we analyze the influence that the combined effect between blockholder type and R and D investment has on the firm's economic performance. Results of these extensions provide relevant implications for policy makers and academic research

Understanding Entrepreneurship Process and Growth in Emerging Business Ventures under Market Socialism in China

Objectives: This paper aims to provide an insightful view of the entrepreneurial process and growth in different types of Chinese entrepreneurial enterprises under market socialism in China. This issue is explored by examining the organisational characteristics of three emerging business ventures under market reforms and institutional changes. It addresses the interactive effect of key contingency factors in entrepreneurship process and explains its impact on growth or failure outcomes in a particular ‘China type’ of market economy. Prior work: China’s hybrid economic system represents a mixed political economy with both socialist and capitalist characteristics (Lichtenstein, 1992; Morphy et al, 1992; Opper, 2001). Despite a growing body of research on Chinese small business practices alongside the economic reforms (Shen, 1994; Child, 1994; Naughton, 1994; Schlevogt, 2001; Warner, 2004; Yang, 2007; Kshetri, 2007; Yang and Li, 2008), more empirical studies are required to provide a critical insight into the emerging business practices. This research adopts a contingency model of entrepreneurship(Wickham, 2006) to examine entrepreneurship process and growth in different types of business venture. It reveals the interactive relationships among key variables such as strategy, ownership, culture and management process. Approaches: This research is undertaken through the empirical analysis of three case study companies in the textile industry. This fieldwork was conducted in 2006 and 2009 respectively. Multiple sources of data were collected including 21 open-ended interviews of owners and key managers in three case study companies. Results: The study offers an explanation on how entrepreneurship takes different forms and features in different organisational contexts. Empirical evidence supports four hypotheses: (1) The type of ownership is a key contingent factor that moderates particular entrepreneurial outcomes. (2) Leadership and knowledge accumulation capability are critical factors in learning process, significantly affecting the strategic choices in either high value or low value added products strategy. (3) The broadening of product portfolios and increased production capacity will improve survival chances and increase the likelihood of firm growth. (4) Management capability and consistency have greater impact on the outcome of entrepreneurship process than the resource and strategy factors. Implications: The findings have significant implications for a conceptual understanding of Chinese entrepreneurship dynamics. It addresses important considerations on government policy making and promotion strategies for entrepreneurship development in different forms of business venture. Value: The textile sector has pioneered the government reforms in restructuring and creating entrepreneurial enterprises. It offers a perfect case for assessing the entrepreneurship processes in a rapidly changing market environment. It emphasizes the important ownership effect on entrepreneurial outcomes. Drawing upon Wickham’s contingency model of entrepreneurship, it provides an improved understanding of this concept under particular circumstance and different contexts

NeoWestern business-government relations: the case of Poland

This article investigates the applicability of Western models of business-government relations to the postcommunist context. Given the absence of a business-government relationship over the forty years of communism, it seems perfectly plausible that postcommunist countries should produce a historically unprecedented form of business-government relations and a new type of capitalist democracy. On the other hand, these countries have for several years been unequivocally regarded as capitalist democracies so it also seems possible that a literature developed for Western capitalist democracies should be useful in the postcommunist context. This article argues that, in spite of their assertions to the contrary, postcommunist studies propose no new concepts or variables for the study of business-government relations. Moreover, a detailed case study of Poland demonstrates the applicability of Western models to a postcommunist context. The confrontation between Western models and postcommunist data does not "stretch" the models but, in some important respects, actually clarifies them

Encapsulation and Aggregation

A notion of object ownership is introduced as a solution to difficult problems of specifying and reasoning about complex linked structures and of modeling aggregates (composit objects). Syntax and semantics are provided for extending Eiffel with language support for object ownership annotation and checking. The ideas also apply to other OOPLs such as C++