Empire-Builders and Shirkers: Investment, Firm Performance, and Managerial Incentives

Do firms systematically over- or underinvest as a result of agency problems? We develop a contracting model between shareholders and managers in which managers have private benefits or private costs of investment. Managers overinvest when they have private benefits and underinvest when they have private costs. Optimal incentive contracts mitigate the over- or underinvestment problem. We derive comparative static predictions for the equilibrium relationships between incentives from compensation, investment, and firm performance for both cases. The relationship between firm performance and managerial incentives, in isolation, is insufficient to identify whether managers have private benefits or private costs of investment. In order to identify whether managers have private benefits or costs, we estimate the joint relationships between incentives and firm performance and between incentives and investment. Our empirical results show that both firm performance and investment are increasing in managerial incentives. These results are consistent with managers having private costs of investment. We find no support for overinvestment based on private benefits.

Performance Incentives Within Firms: The Effect of Managerial Responsibility

Empirical research on executive compensation has focused almost exclusively on the incentives provided to chief executive officers. However, firms are run by teams of managers, and a theory of the firm should also explain the distribution of incentives and responsibilities for other members of the top management team. An extension of the standard principal-agent model to allow for multiple signals of effort predicts that executives who have other, more precise signals of their effort than firm performance will have compensation that is less sensitive to the overall performance of the firm. We test this prediction in a comprehensive panel dataset of executives at large corporations by comparing executives with explicit divisional responsibilities to those with broad oversight authority over the firm and to CEOs. Controlling for executive fixed effects and the level of compensation, we find that CEOs have pay-performance incentives that are $5.85 per thousand dollar increase in shareholder wealth higher than the pay-performance incentives of executives with divisional responsibility. Executives with oversight authority have pay-performance incentives that are$1.26 per thousand higher than those of executives with divisional responsibility. The aggregate pay-performance sensitivity of the top management team is quite substantial, at $30.24 per thousand dollar increase in shareholder wealth for the median firm in our sample. Our work sheds light on the alignment of responsibility and incentives within firms and suggests that the principal-agent model provides an appropriate characterization of the internal organization of the firm.

Event-by-Event Search for Charged Neutral Fluctuations in Pb - Pb Collisions at 158-A-GeV

Results from the analysis of data obtained from the WA98 experiment at the CERN SPS have been presented. Some events have been filtered which show photon excess in limited $\eta-\phi$ zones within the overlap region of the charged particle and photon multiplicity detectors.Comment: 6 pages, 4 figure

Radiative rates and electron impact excitation rates for transitions in He II

We report calculations of energy levels, radiative rates, collision strengths, and effective collision strengths for transitions among the lowest 25 levels of the n <= 5 configurations of He~II. The general-purpose relativistic atomic structure package (GRASP) and Dirac atomic R-matrix code (DARC) are adopted for the calculations. Radiative rates, oscillator strengths, and line strengths are reported for all electric dipole (E1), magnetic dipole (M1), electric quadrupole (E2), and magnetic quadrupole (M2) transitions among the 25 levels. Furthermore, collision strengths and effective collision strengths are listed for all 300 transitions among the above 25 levels over a wide energy (temperature) range up to 9 Ryd (10**5.4 K). Comparisons are made with earlier available results and the accuracy of the data is assessed.Comment: 30 pages of text including 12 figures and 5 Tables will appear in ATOMS 5 (2017

Electron Impact Excitation Cross Sections for Hydrogen-Like Ions

We present cross sections for electron-impact-induced transitions n --> n' in hydrogen-like ions C 5+, Ne 9+, Al 12+, and Ar 17+. The cross sections are computed by Coulomb-Born with exchange and normalization (CBE) method for all transitions with n < n' < 7 and by convergent close-coupling (CCC) method for transitions with n 2s and 1s --> 2p are presented as well. The CCC and CBE cross sections agree to better than 10% with each other and with earlier close-coupling results (available for transition 1 --> 2 only). Analytical expression for n --> n' cross sections and semiempirical formulae are discussed.Comment: RevTeX, 5 pages, 13 PostScript figures, submitted to Phys. Rev.

Structure of confined laminar spray diffusion flames: Numerical investigation

The structure of confined laminar spray diffusion flames is investigated numerically by solving the gas-phase conservation equations for mass species, continuity, momentum, and energy and the liquid-phase equations for droplet position, velocity, size, and temperature. A one-step global reaction scheme along with six equilibrium reactions are employed to model the flame chemistry. Monodisperse as well as polydisperse sprays are considered. The numerical results demonstrate that liquid spray flames substantially differ from gaseous flames in their structure, i.e., temperature, concentration, and velocity fields, shape, and dimensions under the same conditions. Spray flames are predicted to be taller and narrower than their counterpart gaseous ones and their shapes are almost cylindrical. This is in agreement with experimental observations. The numerical computations also show that the use of the equilibrium reactions with the one-step reaction scheme decreases the flame temperature compared to the one-step reaction scheme without the equilibrium reactions and more importantly increases the surface area of the flame zone due to a phenomenon termed 'equilibrium broadening.' The spray flames also possess a finite thickness with minimal overlap of the fuel and oxygen species. A case for which a fuel-mixture consisting of 20 to 80 percent gas-liquid by mass is introduced into the combustor is also investigated and compared with predictions using only gaseous or liquid fuel

Empirical Evaluation of the Parallel Distribution Sweeping Framework on Multicore Architectures

In this paper, we perform an empirical evaluation of the Parallel External Memory (PEM) model in the context of geometric problems. In particular, we implement the parallel distribution sweeping framework of Ajwani, Sitchinava and Zeh to solve batched 1-dimensional stabbing max problem. While modern processors consist of sophisticated memory systems (multiple levels of caches, set associativity, TLB, prefetching), we empirically show that algorithms designed in simple models, that focus on minimizing the I/O transfers between shared memory and single level cache, can lead to efficient software on current multicore architectures. Our implementation exhibits significantly fewer accesses to slow DRAM and, therefore, outperforms traditional approaches based on plane sweep and two-way divide and conquer.Comment: Longer version of ESA'13 pape

An investigation of Fe XV emission lines in solar flare spectra

Previously, large discrepancies have been found between theory and observation for Fe XV emission line ratios in solar flare spectra covering the 224-327 A wavelength range, obtained by the Naval Research Laboratory's S082A instrument on board Skylab. These discrepancies have been attributed to either errors in the adopted atomic data or the presence of additional atomic processes not included in the modelling, such as fluorescence. However our analysis of these plus other S082A flare observations (the latter containing Fe XV transitions between 321-482 A), performed using the most recent Fe XV atomic physics calculations in conjunction with a CHIANTI synthetic flare spectrum, indicate that blending of the lines is primarily responsible for the discrepancies. As a result, most Fe XV lines cannot be employed as electron density diagnostics for solar flares, at least at the spectral resolution of S082A and similar instruments (i.e. ~ 0.1 A). An exception is the intensity ratio I(321.8 A)/I(327.0 A), which appears to provide good estimates of the electron density at this spectral resolution.Comment: 6 pages, 3 figures, Astronomy & Astrophysics, in pres