Executive Compensation in America: Optimal Contracting or Extraction of Rents?

This paper develops an account of the role and significance of rent extraction in executive compensation. Under the optimal contracting view of executive compensation, which has dominated academic research on the subject, pay arrangements are set by a board of directors that aims to maximize shareholder value by designing an optimal principal-agent contract. Under the alternative rent extraction view that we examine, the board does not operate at arm's length; rather, executives have power to influence their own compensation, and they use their power to extract rents. As a result, executives are paid more than is optimal for shareholders and, to camouflage the extraction of rents, executive compensation might be structured sub-optimally. The presence of rent extraction, we argue, is consistent both with the processes that produce compensation schemes and with the market forces and constraints that companies face. Examining the large body of empirical work on executive compensation, we show that the picture emerging from it is largely compatible with the rent extraction view. Indeed, rent extraction, and the desire to camouflage it, can better explain many puzzling features of compensation patterns and practices. We conclude that extraction of rents might well play a significant role in U.S. executive compensation; and that the significant presence of rent extraction should be taken into account in any examination of the practice and regulation of corporate governance.

MoralStrength: Exploiting a Moral Lexicon and Embedding Similarity for Moral Foundations Prediction

Moral rhetoric plays a fundamental role in how we perceive and interpret the information we receive, greatly influencing our decision-making process. Especially when it comes to controversial social and political issues, our opinions and attitudes are hardly ever based on evidence alone. The Moral Foundations Dictionary (MFD) was developed to operationalize moral values in the text. In this study, we present MoralStrength, a lexicon of approximately 1,000 lemmas, obtained as an extension of the Moral Foundations Dictionary, based on WordNet synsets. Moreover, for each lemma it provides with a crowdsourced numeric assessment of Moral Valence, indicating the strength with which a lemma is expressing the specific value. We evaluated the predictive potentials of this moral lexicon, defining three utilization approaches of increased complexity, ranging from lemmas' statistical properties to a deep learning approach of word embeddings based on semantic similarity. Logistic regression models trained on the features extracted from MoralStrength, significantly outperformed the current state-of-the-art, reaching an F1-score of 87.6% over the previous 62.4% (p-value<0.01), and an average F1-Score of 86.25% over six different datasets. Such findings pave the way for further research, allowing for an in-depth understanding of moral narratives in text for a wide range of social issues

Discourse Analysis: varieties and methods

This paper presents and analyses six key approaches to discourse analysis, including political discourse theory, rhetorical political analysis, the discourse historical approach in critical discourse analysis, interpretive policy analysis, discursive psychology and Q methodology. It highlights differences and similarities between the approaches along three distinctive dimensions, namely, ontology, focus and purpose. Our analysis reveals the difficulty of arriving at a fundamental matrix of dimensions which would satisfactorily allow one to organize all approaches in a coherent theoretical framework. However, it does not preclude various theoretical articulations between the different approaches, provided one takes a problem-driven approach to social science as one?s starting-point

Stress and productivity patterns of interrupted, synergistic, and antagonistic office activities.

We describe a controlled experiment, aiming to study productivity and stress effects of email interruptions and activity interactions in the modern office. The measurement set includes multimodal data for n = 63 knowledge workers who volunteered for this experiment and were randomly assigned into four groups: (G1/G2) Batch email interruptions with/without exogenous stress. (G3/G4) Continual email interruptions with/without exogenous stress. To provide context, the experiment's email treatments were surrounded by typical office tasks. The captured variables include physiological indicators of stress, measures of report writing quality and keystroke dynamics, as well as psychometric scores and biographic information detailing participants' profiles. Investigations powered by this dataset are expected to lead to personalized recommendations for handling email interruptions and a deeper understanding of synergistic and antagonistic office activities. Given the centrality of email in the modern office, and the importance of office work to people's lives and the economy, the present data have a valuable role to play

Long-run Patterns of Labour Market Polarisation: Evidence from German Micro Data

The past four decades have witnessed dramatic changes in the structure of employment. In particular, the rapid increase in computational power has led to large-scale reductions in employment in jobs that can be described as intensive in routine tasks. These jobs have been shown to be concentrated in middle skill occupations. A large literature on labour market polarisation characterises and measures these processes at an aggregate level. How- ever to date there is little information regarding the individual worker adjustment processes related to routine- biased technological change. Using an administrative panel data set for Germany, we follow workers over an ex- tended period of time and provide evidence of both the short-term adjustment process and medium-run effects of routine task intensive job loss at an individual level. We initially demonstrate a marked, and steady, shift in em- ployment away from routine, middle-skill, occupations. In subsequent analysis, we demonstrate how exposure to jobs with higher routine task content is associated with a reduced likelihood of being in employment in both the short term (after one year) and medium term (five years). This employment penalty to routineness of work has increased over the past four decades. More generally, we demonstrate that routine task work is associated with reduced job stability and more likelihood of experiencing periods of unemployment. However, these negative ef- fects of routine work appear to be concentrated in increased employment to employment, and employment to unemployment transitions rather than longer periods of unemployment

Bringing Growth Theory "Down to Earth"

Explicitly accounting for certain basic physical laws governing the “earth” sector dramatically enriches our ability to explain a high degree of diversity in observed patterns of economic growth. We provide a theoretical explanation of why some countries have been able to sustain a more or less constant and positive rate of economic growth for many decades while so many others have failed to do so. The analysis predicts that countries that have an over abundance of physical capital (a concept that is precisely defined in the text) may be unable to sustain a positive rate of economic growth over the long run. Too much physical capital may affect the dynamics of the economy ultimately leading to stagnation. The plausibility of the growth model introduced here is demonstrated by its ability to predict some important stylized facts for which standard endogenous growth models generally cannot account.endogenous growth theory, unbalanced growth, structural change, stagnation, Environmental Economics and Policy, International Development, Labor and Human Capital, Political Economy, E22, Q01, O41,

Assessing the Impact of Strategic Global Entry from Cultural Research Perspective in Marketing: A Case of Oil and Gas Industry in Romania

Breaking into a new market is a classic path to business growth. Ability to understand consumption experience of consumers is a major concern of today’s marketers, most especially in view of the rise of experiential marketing approaches that seek to re-enchant people through consumption (Schmitt, 1999, 2003). Service businesses, in particular, are being urged to have a global view on what types of experiences to organize for consumers and how they should be provided. One of the entry strategy of a successful global organization is to research the market they are about to enter and most marketers are now turning to ethnographers. Ethnography has therefore, devised a compilation of retrospective and introspective consumer narratives called “big stories” in contrast to “small stories” Therefore, ethnography of consumption has evolved towards a double method featuring, on one hand, observations that generate “small stories” and, on the other, introspection that generates “big stories”. Ethnography of consumption has been strengthened by the shift from a researcher-devised retrospective narrative in an interview form to an introspective narrative that is produced, fine-tuned and diffused by the consumer in the shape of a text diary, audio diary or video diary (Caru and Cova, 2008). This non-empirical article is to detail the major roles of ethnographers when a company wants to enter an international market. Romania is the largest oil producer in Central and Eastern Europe with reserves of 956 million barrels. According to the 2008 BP Statistical Energy Survey, Romania produced an average of 105.4 thousand barrels of crude oil per day in 2007, 0.12% of the world total and a change of 0.9 % compared to 2006. The country is a net oil importer, and according to the 2008 BP Statistical Energy Survey, Romania consumed an average of 229.29 thousand barrels a day of oil in 2007, 0.27% of the world total and a change from 2006 of 10.44 tbpd. This non-empirical article is to look into the entry strategies of oil multinationals wishing to do business in Romani

A taxonomy of multi-industry labour force skills

This paper proposes an empirical study of the skill repertoires of 290 sectors in the United States over the period 2002–2011. We use information on employment structures and job content of occupations to flesh out structural characteristics of industry-specific know-how. The exercise of mapping the skills structures embedded in the workforce yields a taxonomy that discloses novel nuances on the organization of industry. In so doing we also take an initial step towards the integration of labour and employment in the area of innovation studies