Financial Capital and Human Capital in American Corporations: How Ownership by Activist Hedge Funds and Index Investors Affects Employee Satisfaction

Two major trends in the American capital market affect whether firms adopt a long-term or a short-term orientation. The first trend is the growing concentration of ownership of public companies by index investors, such as Blackrock, Vanguard, and State Street, which are decade-long stockholders. The second is the growing control of activist hedge funds on corporate boards, whose median holding period is known to be around 20 months. What do these trends mean for employee relations? This dissertation tests whether ownership by activist hedge funds, which have a relatively short-term investment time horizon, negatively affect employee satisfaction by reducing managerial attention to employees while increasing managerial attention to shareholders and stock market performances. This dissertation also tests whether a concentrated ownership by large index investors, which has a relatively long-term investment time horizon, positively affects employee satisfaction by increasing managerial attention to employees while reducing managerial attention to shareholders and stock market performances. I answer these questions by studying all publicly traded US companies from 2008 to early 2018, and by using big data – firms’ annual reports and anonymous employer reviews on Glassdor.com. More specifically, I developed new measures for firms’ attention to their human capital and its management practices by conducting text analysis of the risk factors section of the annual report where firms list their anticipated risks. Additionally, I analyze the relationship between employee satisfaction and firms’ financial performance. The results of my analyses show that ownership by most activist hedge funds and large index funds do not have a direct effect on employee satisfaction. However, ownership by Gamco Investors, one of the most active hedge funds in terms of the number of campaigns, reduces employee satisfaction. These findings suggest that activist hedge funds may have different strategies and goals, which affect employee satisfaction differently. These results also suggest that large index funds’ engagement with their portfolio firms on human capital issues is limited, leaving us with a question about the role of the powerful investors. This dissertation also found that shareholders affect managerial attention, such that ownership by activist hedge funds increased managerial attention to shareholders, and ownership by large index funds reduced managerial attention to firms’ stock market performance. Firms’ attention to employees was only reduced when firms were under Gamco Investors’ ownership. Additionally, ownership by activist hedge funds led managers to give less consideration to how employee issues can be associated with future cost. On the other hand, ownership by large index funds led managers to be less concerned about their employees as important resources for the firms. Finally, the results show that employee satisfaction is not the cause of firms’ financial performance, but rather the consequence of high firm performance. This dissertation contributes to the corporate governance and human capital management literature by examining labor implications of currents trends in shareholder ownership. Also, it makes a practical contribution to organizational researchers, investors, policy makers, and employees who need standardized measures for firms’ attention to human capital and human capital management practices and performances.PHDBusiness AdministrationUniversity of Michigan, Horace H. Rackham School of Graduate Studieshttp://deepblue.lib.umich.edu/bitstream/2027.42/163126/1/eunwoo_1.pd

Principal factors that determine the extension of detection range in molecular beacon aptamer/conjugated polyelectrolyte bioassays.

A strategy to extend the detection range of weakly-binding targets is reported that takes advantage of fluorescence resonance energy transfer (FRET)-based bioassays based on molecular beacon aptamers (MBAs) and cationic conjugated polyelectrolytes (CPEs). In comparison to other aptamer-target pairs, the aptamer-based adenosine triphosphate (ATP) detection assays are limited by the relatively weak binding between the two partners. In response, a series of MBAs were designed that have different stem stabilities while keeping the constant ATP-specific aptamer sequence in the loop part. The MBAs are labeled with a fluorophore and a quencher at both termini. In the absence of ATP, the hairpin MBAs can be opened by CPEs via a combination of electrostatic and hydrophobic interactions, showing a FRET-sensitized fluorophore signal. In the presence of ATP, the aptamer forms a G-quadruplex and the FRET signal decreases due to tighter contact between the fluorophore and quencher in the ATP/MBA/CPE triplex structure. The FRET-sensitized signal is inversely proportional to [ATP]. The extension of the detection range is determined by the competition between opening of the ATP/MBA G-quadruplex by CPEs and the composite influence by ATP/aptamer binding and the stem interactions. With increasing stem stability, the weak binding of ATP and its aptamer is successfully compensated to show the resistance to disruption by CPEs, resulting in a substantially broadened detection range (from millimolar up to nanomolar concentrations) and a remarkably improved limit of detection. From a general perspective, this strategy has the potential to be extended to other chemical- and biological-assays with low target binding affinity

Data-Reserved Periodic Diffusion LMS With Low Communication Cost Over Networks

In this paper, we analyze diffusion strategies in which all nodes attempt to estimate a common vector parameter for achieving distributed estimation in adaptive networks. Under diffusion strategies, each node essentially needs to share processed data with predefined neighbors. Although the use of internode communication has contributed significantly to improving convergence performance based on diffusion, such communications consume a huge quantity of power in data transmission. In developing low-power consumption diffusion strategies, it is very important to reduce the communication cost without significant degradation of convergence performance. For that purpose, we propose a data-reserved periodic diffusion least-mean-squares (LMS) algorithm in which each node updates and transmits an estimate periodically while reserving its measurement data even during non-update time. By applying these reserved data in an adaptation step at update time, the proposed algorithm mitigates the decline in convergence speed incurred by most conventional periodic schemes. For a period p, the total cost of communication is reduced to a factor of 1/p relative to the conventional adapt-then-combine (ATC) diffusion LMS algorithm. The loss of combination steps in this process leads naturally to a slight increase in the steady-state error as the period p increases, as is theoretically confirmed through mathematical analysis. We also prove an interesting property of the proposed algorithm, namely, that it suffers less degradation of the steady-state error than the conventional diffusion in a noisy communication environment. Experimental results show that the proposed algorithm outperforms related conventional algorithms and, in particular, outperforms ATC diffusion LMS over a network with noisy links.11Ysciescopu

Clinical implications of correlation between peripheral eosinophil count and serum levels of IL-5 and tryptase in acute eosinophilic pneumonia

SummaryBackgroundThe peripheral eosinophil count (PEC) tends to increase during the course of acute eosinophilic pneumonia (AEP), and an initially elevated PEC is associated with milder disease. However, there is a lack of data regarding these phenomena and inflammatory process of AEP.MethodsWe prospectively evaluated serial changes in serum interleukin (IL)-5 levels and the correlation between the initial level of IL-5 and the PEC to investigate whether the initial PEC indicates a resolving state of inflammation. We also evaluated serum tryptase levels to investigate the possibility of involvement of mast cell activity in AEP.ResultsTwenty-one AEP patients were included, and all patients improved within 10 days after corticosteroid treatment. The median initial serum IL-5 level among all patients was 561.0 pg/mL, which decreased to zero at 10 days of follow-up (n = 15, P < 0.001). The median initial serum tryptase level (detectable in 20 of 21 patients) was 3.7 ng/mL and decreased to a median of 1.1 ng/mL at 10 days of follow-up (n = 15, P < 0.001). The initial serum IL-5 and C-reactive protein levels were positively correlated (P = 0.009, r = 0.556), and the initial serum IL-5 level was inversely correlated with the initial PEC (P = 0.004, r = −0.603).ConclusionsOur data suggest that IL-5 is an important cytokine involved in the recruitment of eosinophils from peripheral blood into the lungs, that an initially elevated PEC is associated with a resolving state of inflammation, and that mast cells are potentially involved in the inflammatory process of AEP

Immune-enhancing screening of fourteen plants on murine macrophage RAW 264.7 cells

Purpose: To investigate the potential immune-enhancing effects of fourteen natural plant extracts on mouse macrophage RAW 264.7 cells.Methods: Fourteen plant extracts from 7 different plants were tested on RAW 264.7 cells to determine their immunostimulant activities. Methylthiazolydiphenyltetrazolium bromide (MTT) and Griess assays were performed to evaluate cell viability and nitric oxide (NO) production, respectively. Then, immune related proteins were measured by western blot analysis, while cytokines and phagocytic activity were determined by enzyme-linked immunosorbent assay (ELISA) method.Results: Among the 14 plant extracts, the hot water extract of Agastache rugose was selected based on the screening results on NO production. The hot water extract of A. rugose significantly increased NO production in a concentration-dependent manner without any cytotoxicity. In addition, the expression levels of proteins (iNOS and COX-2) and cytokines (TNF-α, IL-1β, IL-6 and IL-12) closely related to immune reaction were also significantly upregulated. Furthermore, phagocytic activity of RAW 264.7 cells significantly increased following treatment with A. rugosa.Conclusion: The hot water extract of A. rugosa exhibits significant immune-stimulant activity. Therefore, A. rugosa can be used as a natural resource for immune enhancement or dietary supplement.Keywords: Immune enhancing activity, Macrophage polarization, Natural plant extracts, Agastache rugosa, RAW 264.