Financial and non-financial performance measures and managerial short-term orientation: the interactive effect of performance targets

In this paper, I examine the incentive effects of both performance measures and performance targets and the linkages between these two components of the incentive system. Furthermore, I examine the theoretical claim that non-financial performance measures provide subordinate managers with incentives to be long-term oriented. Finally, I examine the role of risk aversion in setting performance targets. The empirical results show that the short-term orientation of subordinate managers increases (decreases) with the difficulty of financial (non-financial) performance targets but is not related to the use of either financial or non-financial performance measures for incentive purposes. Further, the difficulty of financial (non-financial) performance targets increases with the use of financial (non-financial) performance measures for incentive purposes, which suggests that performance measures have an indirect effect on managerial behavior. Finally, the relationship between the use of performance measures and performance target difficulty is moderated by the risk aversion of the manager. That is, the relationship is less positive the higher the manager’s risk aversion, which implies that superiors take the risk imposed on the manager into account when setting targets.accounting and auditing ;

The Role of Performance Measure Characteristics in the Design of Incentive Systems: An Empirical Analysis

In this paper, I derive three general performance measure characteristics from the literature that are theoretically related to the use of performance measures, i.e., (1) the impact that a manager has on performance (sensitivity), (2) the impact that uncontrollable factors have on performance (controllability), and (3) the degree to which the performance measure is objective and verifiable (measurement accuracy). I empirically examine the effect of information asymmetry and the performance measure characteristics on the use of three types of performance measures. Furthermore, I examine how two types of uncertainty, i.e., task uncertainty and environmental uncertainty, affect information asymmetry and performance measure characteristics. The major finding of this study is that sensitivity is positively related to the use of all three types of performance measures, while measurement accuracy is positively related to two out of these three types of performance measures. Controllability, on the other hand, does not have the proposed positive effect on any of the performance measures examined. These results suggest that sensitivity and measurement accuracy play an important role in designing incentive systems, while controllability seems to play no role.accounting and auditing ;

An Empirical Analysis of the Role of Risk Aversion in Executive Compensation Contracts

This paper empirically tests the principal-agent model prediction that the use of performance measures for incentive purposes is affected by the agent’s risk aversion. We find that the use of both accounting and market performance measures in executive compensation contracts decreases as the level of risk aversions increases. We further find that agent-specific characteristics, i.e., risk aversion, become more important in designing executive compensation contracts when performance measures are less useful due to measure-specific characteristics.Economics ;

1,1′-Fc(4-C6H4CO2Et)2and its unusual salt derivative withZ′ = 5,catena-[Na+]2[1,1′-Fc(4-C6H4CO2−)2]·0.6H2O [1,1′-Fc = (η5-(C5H4)2Fe]

The neutral diethyl 4,4'-(ferrocene-1,1'-diyl)dibenzoate, Fe[[eta]5-(C5H4)(4-C6H4CO2Et)]2 (I), yields (II) (following base hydrolysis) as the unusual complex salt poly[disodium bis[diethyl 4,4'-(ferrocene-1,1'-diyl)dibenzoate] 0.6-hydrate] or [Na+]2[Fe{[eta]5-(C5H4)-4-C6H4CO_2^-}2]·0.6H2O with Z' = 5. Compound (I) crystallizes in the triclinic system, space group P\bar 1, with two molecules having similar geometry in the asymmetric unit (Z' = 2). The salt complex (II) crystallizes in the orthorhombic system, space group Pbca, with the asymmetric unit comprising poly[decasodium pentakis[diethyl 4,4'-(ferrocene-1,1'-diyl)dibenzoate] trihydrate] or [Na+]10[Fe{[eta]5-(C5H4)-4-C6H4CO_2^-}2]5·3H2O. The five independent 1,1'-Fc[(4-C6H4CO2)-]2 dianions stack in an offset ladder (stepped) arrangement with the ten benzoates mutually oriented cisoid towards and bonded to a central layer comprising the ten Na+ ions and three water molecules [1,1'-Fc = [eta]5-(C5H4)2Fe]. The five dianions differ in the cisoid orientations of their pendant benzoate groups, with four having their -C6H4- groups mutually oriented at interplanar angles from 0.6 (3) to 3.2 (3)° (as [pi]...[pi] stacked C6 rings) and interacting principally with Na+ ions. The fifth dianion is distorted and opens up to an unprecedented -C6H4- interplanar angle of 18.6 (3)° through bending of the two 4-C6H4CO2 groups and with several ionic interactions involving the three water molecules (arranged as one-dimensional zigzag chains in the lattice). Overall packing comprises two-dimensional layers of Na+ cations coordinated mainly by the carboxylate O atoms, and one-dimensional water chains. The non-polar Fc(C6H4)2 groups are arranged perpendicular to the layers and mutually interlock through a series of efficient C-H...[pi] stacking contacts in a herringbone fashion to produce an overall segregation of polar and non-polar entities

Normothermic machine perfusion of ischaemically damaged porcine kidneys with autologous, allogeneic porcine and human red blood cells

In porcine kidney auto-transplant models, red blood cells (RBCs) are required for ex-vivo normothermic machine perfusion (NMP). As large quantities of RBCs are needed for NMP, utilising autologous RBCs would imply lethal exsanguination of the pig that is donor and recipient-to-be in the same experiment. The purpose of this study was to determine if an isolated porcine kidney can also be perfused with allogeneic porcine or human RBCs instead. Porcine kidneys, autologous and allogeneic blood were obtained from a local slaughterhouse. Human RBCs (O-pos), were provided by our transfusion laboratory. Warm ischaemia time was standardised at 20 minutes and subsequent hypothermic machine perfusion lasted 1.5–2.5 hours. Next, kidneys underwent NMP at 37°C during 7 hours with Williams’ Medium E and washed, leukocyte depleted RBCs of either autologous, allogeneic, or human origin (n = 5 per group). During perfusion all kidneys were functional and produced urine. No macroscopic adverse reactions were observed. Creatinine clearance during NMP was significantly higher in the human RBC group in comparison with the allogeneic group (P = 0.049) but not compared to the autologous group. The concentration of albumin in the urine was significantly higher in the human RBC group (P <0.001) compared to the autologous and allogeneic RBC group. Injury marker aspartate aminotransferase was significantly higher in the human RBC group in comparison with the allogeneic group (P = 0.040) but not in comparison with the autologous group. Renal histology revealed glomerular and tubular damage in all groups. Signs of pathological hyperfiltration and microvascular injury were only observed in the human RBC group. In conclusion, perfusion of porcine kidneys with RBCs of different origin proved technically feasible. However, laboratory analysis and histology revealed more damage in the human RBC group compared to the other two groups. These results indicate that the use of allogeneic RBCs is preferable to human RBCs in a situation where autologous RBCs cannot be used for NMP

Prolonged ex-vivo normothermic kidney perfusion:The impact of perfusate composition

Normothermic machine perfusion (NMP) of donor kidneys provides the opportunity for improved graft preservation and objective pre-transplant ex-vivo organ assessment. Currently, a multitude of perfusion solutions exist for renal NMP. This study aimed to evaluate four different perfusion solutions side-by-side and determine the influence of different perfusate compositions on measured renal perfusion parameters. Porcine kidneys and blood were obtained from a slaughterhouse. Kidneys underwent NMP at 37°C for 7 hours, with 4 different perfusion solutions (n = 5 per group). Group 1 consisted of red blood cells (RBCs) and a perfusion solution based on Williams' Medium E. Group 2 consisted of RBCs, albumin and a balanced electrolyte composition. Group 3 contained RBCs and a medium based on a British clinical NMP solution. Group 4 contained RBCs and a medium used in 24-hour perfusion experiments. NMP flow patterns for solutions 1 and 2 were similar, solutions 3 and 4 showed lower but more stable flow rates. Thiobarbituric acid reactive substances were significantly higher in solution 1 and 4 compared to the other groups. Levels of injury marker N-acetyl-β-D glucosaminidase were significantly lower in solution 2 in comparison with solution 3 and 4. This study illustrates that the perfusate composition during NMP significantly impacts the measured perfusion and injury parameters and thus affects the interpretation of potential viability markers. Further research is required to investigate the individual influences of principal perfusate components to determine the most optimal conditions during NMP and eventually develop universal organ assessment criteria