Managerial Power, Stock-Based Compensation, and Firm Performance: Theory and Evidence

We study theoretically and empirically the relation among CEO power, CEO pay and firm performance. Our theoretical model follows the rent extraction view of CEO compensation put forward by the managerial power theory. We test our theoretical findings using the sample of S&P1500 firms. The predicted relation between power and pay is largely supported. However, the relation between power and firm performance has mixed support, suggesting that, while the managerial power theory has relevance in explaining the relation between power and pay, the scope of power needs to be broadened for better understanding of how managerial power affects firm performance.Managerial power, agency theory, stock-based compensation, firm performance, pay-performance sensitivity

MANAGERIAL POWER, STOCK-BASED COMPENSATION, AND FIRM PERFORMANCE: THEORY AND EVIDENCE

This paper studies theoretically and empirically the relation among CEO power, CEO compensation and firm performance. Our theoretical model follows the rent extraction view of CEO compensation put forward by the managerial power theory, and proxies CEO power by the bargaining power the CEO exercises in the determination of his compensation contract. We show (i) when there is no constraint on the CEO's salary, the CEO's stock-based compensation and the pay-performance sensitivity of CEO compensation are both independent of CEO power, although firm performance net of CEO compensation worsens as CEO power increases, and (ii) when the CEO's salary has a binding cap, the CEO's stock-based compensation and the pay-performance sensitivity of CEO compensation are both increasing in CEO power, resulting in better firm performance gross of CEO compensation, but worse firm performance net of CEO compensation. We test our theoretical findings using the sample of S&P1500 firms over the period of 2001-2005. The predicted relation between power and pay is largely supported. However, the relation between power and firm performance as predicted by theory has mixed support. This suggests that, while the managerial power theory has clear relevance in explaining the relation between power and pay, the scope of power needs to be broadened to have better understanding of how managerial power affects firm performance.Managerial power, agency theory, stock-based incentives, firm performance, pay-performance sensitivity.

The Rise and Fall of the Widely Held Firm - A History of Corporate Ownership in Canada

A panel of corporate ownership data, stretching back to 1902, shows that the Canadian corporate sector began the century with a predominance of large pyramidal corporate groups controlled by wealthy families or individuals. By mid-century, widely held firms predominated. But, from the 1970s on, pyramidal groups controlled by wealthy families and individuals resurge, restoring a situation similar to that a century earlier. Institutional factors underlying this resurgence are shown to have antecedents deep in the country's colonial past.

Northern Hemisphere mid-winter vortex-displacement and vortex-split stratospheric sudden warmings: Influence of the Madden-Julian Oscillation and Quasi-Biennial Oscillation

We investigate the connection between the equatorial Madden‐Julian Oscillation (MJO) and different types of the Northern Hemisphere mid‐winter major stratospheric sudden warmings (SSWs), i.e., vortex‐displacement and vortex‐split SSWs. The MJO‐SSW relationship for vortex‐split SSWs is stronger than that for vortex‐displacement SSWs, as a result of the stronger and more coherent eastward propagating MJOs before vortex‐split SSWs than those before vortex‐displacement SSWs. Composite analysis indicates that both the intensity and propagation features of MJO may influence the MJO‐related circulation pattern at high latitudes and the type of SSWs. A pronounced Quasi‐Biennial Oscillation (QBO) dependence is found for vortex‐displacement and vortex‐split SSWs, with vortex‐displacement (‐split) SSWs occurring preferentially in easterly (westerly) QBO phases. The lagged composites suggest that the MJO‐related anomalies in the Arctic are very likely initiated when the MJO‐related convection is active over the equatorial Indian Ocean (around the MJO phase 3). Further analysis suggests that the QBO may modulate the MJO‐related wave disturbances via its influence on the upper tropospheric subtropical jet. As a result, the MJO‐related circulation pattern in the Arctic tends to be wave number‐one/wave number‐two ~25–30 days following phase 3 (i.e., approximately phases 7–8, when the MJO‐related convection is active over the western Pacific) during easterly/westerly QBO phases, which resembles the circulation pattern associated with vortex‐displacement/vortex‐split SSWs

Opposite Root Growth Phenotypes of hy5 versus hy5 hyh Mutants Correlate with Increased Constitutive Auxin Signaling

The Arabidopsis transcription factor HY5 controls light-induced gene expression downstream of photoreceptors and plays an important role in the switch of seedling shoots from dark-adapted to light-adapted development. In addition, HY5 has been implicated in plant hormone signaling, accounting for the accelerated root system growth phenotype of hy5 mutants. Mutants in the close HY5 homolog HYH resemble wild-type, despite the largely similar expression patterns and levels of HY5 and HYH, and the functional equivalence of the respective proteins. Moreover, the relative contribution of HYH to the overall activity of the gene pair is increased by an alternative HYH transcript, which encodes a stabilized protein. Consistent with the enhanced root system growth observed in hy5 loss-of-function mutants, constitutively overexpressed alternative HYH inhibits root system growth. Paradoxically, however, in double mutants carrying hy5 and hyh null alleles, the hy5 root growth phenotype is suppressed rather than enhanced. Even more surprisingly, compared to wild-type, root system growth is diminished in hy5 hyh double mutants. In addition, the double mutants display novel shoot phenotypes that are absent from either single mutant. These include cotyledon fusions and defective vasculature, which are typical for mutants in genes involved in the transcriptional response to the plant hormone auxin. Indeed, many auxin-responsive and auxin signaling genes are misexpressed in hy5 mutants, and at a higher number and magnitude in hy5 hyh mutants. Therefore, auxin-induced transcription is constitutively activated at different levels in the two mutant backgrounds. Our data support the hypothesis that the opposite root system phenotypes of hy5 single and hy5 hyh double mutants represent the morphological response to a quantitative gradient in the same molecular process, that is gradually increased constitutive auxin signaling. The data also suggest that HY5 and HYH are important negative regulators of auxin signaling amplitude in embryogenesis and seedling development

Northern Hemisphere mid-winter vortex-displacement and vortex-split stratospheric sudden warmings: Influence of the Madden-Julian Oscillation and Quasi-Biennial Oscillation

We investigate the connection between the equatorial Madden‐Julian Oscillation (MJO) and different types of the Northern Hemisphere mid‐winter major stratospheric sudden warmings (SSWs), i.e., vortex‐displacement and vortex‐split SSWs. The MJO‐SSW relationship for vortex‐split SSWs is stronger than that for vortex‐displacement SSWs, as a result of the stronger and more coherent eastward propagating MJOs before vortex‐split SSWs than those before vortex‐displacement SSWs. Composite analysis indicates that both the intensity and propagation features of MJO may influence the MJO‐related circulation pattern at high latitudes and the type of SSWs. A pronounced Quasi‐Biennial Oscillation (QBO) dependence is found for vortex‐displacement and vortex‐split SSWs, with vortex‐displacement (‐split) SSWs occurring preferentially in easterly (westerly) QBO phases. The lagged composites suggest that the MJO‐related anomalies in the Arctic are very likely initiated when the MJO‐related convection is active over the equatorial Indian Ocean (around the MJO phase 3). Further analysis suggests that the QBO may modulate the MJO‐related wave disturbances via its influence on the upper tropospheric subtropical jet. As a result, the MJO‐related circulation pattern in the Arctic tends to be wave number‐one/wave number‐two ~25–30 days following phase 3 (i.e., approximately phases 7–8, when the MJO‐related convection is active over the western Pacific) during easterly/westerly QBO phases, which resembles the circulation pattern associated with vortex‐displacement/vortex‐split SSWs

Radio emission from Supernova Remnants

The explosion of a supernova releases almost instantaneously about 10^51 ergs of mechanic energy, changing irreversibly the physical and chemical properties of large regions in the galaxies. The stellar ejecta, the nebula resulting from the powerful shock waves, and sometimes a compact stellar remnant, constitute a supernova remnant (SNR). They can radiate their energy across the whole electromagnetic spectrum, but the great majority are radio sources. Almost 70 years after the first detection of radio emission coming from a SNR, great progress has been achieved in the comprehension of their physical characteristics and evolution. We review the present knowledge of different aspects of radio remnants, focusing on sources of the Milky Way and the Magellanic Clouds, where the SNRs can be spatially resolved. We present a brief overview of theoretical background, analyze morphology and polarization properties, and review and critical discuss different methods applied to determine the radio spectrum and distances. The consequences of the interaction between the SNR shocks and the surrounding medium are examined, including the question of whether SNRs can trigger the formation of new stars. Cases of multispectral comparison are presented. A section is devoted to reviewing recent results of radio SNRs in the Magellanic Clouds, with particular emphasis on the radio properties of SN 1987A, an ideal laboratory to investigate dynamical evolution of an SNR in near real time. The review concludes with a summary of issues on radio SNRs that deserve further study, and analyzing the prospects for future research with the latest generation radio telescopes.Comment: Revised version. 48 pages, 15 figure

Evasion of anti-growth signaling: a key step in tumorigenesis and potential target for treatment and prophylaxis by natural compounds

The evasion of anti-growth signaling is an important characteristic of cancer cells. In order to continue to proliferate, cancer cells must somehow uncouple themselves from the many signals that exist to slow down cell growth. Here, we define the anti-growth signaling process, and review several important pathways involved in growth signaling: p53, phosphatase and tensin homolog (PTEN), retinoblastoma protein (Rb), Hippo, growth differentiation factor 15 (GDF15), AT-rich interactive domain 1A (ARID1A), Notch, insulin-like growth factor (IGF), and Krüppel-like factor 5 (KLF5) pathways. Aberrations in these processes in cancer cells involve mutations and thus the suppression of genes that prevent growth, as well as mutation and activation of genes involved in driving cell growth. Using these pathways as examples, we prioritize molecular targets that might be leveraged to promote anti-growth signaling in cancer cells. Interestingly, naturally-occurring phytochemicals found in human diets (either singly or as mixtures) may promote anti-growth signaling, and do so without the potentially adverse effects associated with synthetic chemicals. We review examples of naturally-occurring phytochemicals that may be applied to prevent cancer by antagonizing growth signaling, and propose one phytochemical for each pathway. These are: epigallocatechin-3-gallate (EGCG) for the Rb pathway, luteolin for p53, curcumin for PTEN, porphyrins for Hippo, genistein for GDF15, resveratrol for ARID1A, withaferin A for Notch and diguelin for the IGF1-receptor pathway. The coordination of anti-growth signaling and natural compound studies will provide insight into the future application of these compounds in the clinical setting