CEO turnover in a competitive assignment framework

There is considerable and widespread concern about whether CEOs are appropriately punished for poor performance. The empirical literature on CEO turnover documents that CEOs are indeed more likely to be forced out if their performance is poor relative to the industry average. However, CEOs are also more likely to be replaced if the industry is doing badly. We show that these empirical patterns are natural and efficient outcomes of a competitive assignment model in which CEOs and firms form matches based on multiple characteristics, and where industry conditions affect the outside options of both managers and firms. Our model also has several new predictions about the type of replacement manager, and their pay and performance. We construct a dataset which describes all turnover events during the period 1992-2006 and show that these predictions are also born out empirically.Executive Turnover; Matching Models; Competitive Assignment; CEO Labor Market

Rank expectations, feedback and social hierarchies

We develop and test experimentally a theoretical model of the role of self-esteem, generated by private feedback regarding relative performance, on the behavior of agents working on an effort provision task for a flat wage. Agents work harder and expect to rank better when they are told they may learn their ranking, relative to cases when they are told feedback will not be provided. Individuals who learn that they have ranked better than expected decrease their output but expect an even better rank in the future, while those who were told they ranked worse than expected increase their output and at the same time lower their rank expectations going forward. These effects are stronger in earlier rounds of the task, while subjects learn how they compare to their peers. This rank hierarchy is established early on, and remains relatively stable afterwards. Private relative rank information helps create a ratcheting effect in the group's average output, which is mainly due to the fight for dominance at the top of the hierarchy. Hence, in environments where monetary incentives are weak, moral hazard may be mitigated by providing feedback to agents regarding their relative performance, and by optimally choosing the reference peer group.rankings, incentives, feedback, moral hazard, intrinsic motivation, ego utility, self-esteem

Searching for Jobs: Evidence from MBA Graduates

This paper proposes and tests empirically a model of optimal job search using novel data on job seeking strategies of participants in the labor market for MBA graduates. Theoretically and empirically I find that the breadth of search that workers conduct depends on their ability, outside option, and fit with available jobs, as well as on the exogenous job application cost and the ex-ante probability of applications resulting in offers. These results illustrate the formation of the supply of human capital available to hiring companies, which drives the efficiency of matching between workers and firms and ultimately determines productivity.job search; matching; human capital; MBA education; career choice

Exploration for Human Capital: Evidence from the MBA Labor Market

We empirically investigate the effect of uncertainty on corporate hiring. Using novel data from the labor market for MBA graduates, we show that uncertainty regarding how well job candidates fit with a firm's industry hinders hiring and that firms value probationary work arrangements that provide the option to learn more about potential full-time employees. The detrimental effect of uncertainty on hiring is more pronounced when firms face greater firing and replacement costs and when they face less direct competition from other similar firms. These results suggest that firms faced with uncertainty use similar considerations when making hiring decisions as when making decisions regarding investment in physical capital

Socioeconomic status and learning from financial information

The majority of lower socioeconomic status (SES) households in the U.S. and Europe do not have stock investments, which is detrimental to wealth accumulation. Here, we examine one explanation for this puzzling fact, namely, that economic adversity may influence how people learn from financial information. Using experimental and survey data from the U.S. and Romania, we find that lower SES individuals form more pessimistic beliefs about the distribution of stock returns and are less likely to invest in stocks when these investments are likely to have good outcomes. SES-related differences in pessimism may help explain variation in investments across households

Stroke-related Effects on Maximal Dynamic Hip Flexor Fatigability and Functional Implications

Introduction: Stroke-related changes in maximal dynamic hip flexor muscle fatigability may be more relevant functionally than isometric hip flexor fatigability. Methods: Ten chronic stroke survivors performed 5 sets of 30 hip flexion maximal dynamic voluntary contractions (MDVC). A maximal isometric voluntary contraction (MIVC) was performed before and after completion of the dynamic contractions. Both the paretic and nonparetic legs were tested. Results: Reduction in hip flexion MDVC torque in the paretic leg (44.7%) was larger than the nonparetic leg (31.7%). The paretic leg had a larger reduction in rectus femoris EMG (28.9%) between the first and last set of MDVCs than the nonparetic leg (7.4%). Reduction in paretic leg MDVC torque was correlated with self-selected walking speed (r2 = 0.43), while reduction in MIVC torque was not (r2 = 0.11). Conclusions: Reductions in maximal dynamic torque of paretic hip flexors may be a better predictor of walking function than reductions in maximal isometric contractions

The Stroke-related Effects of Hip Flexion Fatigue on Over Ground Walking

Individuals post stroke often rely more on hip flexors for limb advancement during walking due to distal weakness but the effects of muscle fatigue in this group is not known. The purpose of this study was to quantify how stroke affects the influence of hip flexor fatigue on over ground walking kinematics and performance and muscle activation. Ten individuals with chronic stroke and 10 without stroke (controls) participated in the study. Maximal walking speed, walking distance, muscle electromyograms (EMG), and lower extremity joint kinematics were compared before and after dynamic, submaximal fatiguing contractions of the hip flexors (30% maximal load) performed until failure of the task. Task duration and decline in hip flexion maximal voluntary contraction (MVC) and power were used to assess fatigue. The stroke and control groups had similar task durations and percent reductions in MVC force following fatiguing contractions. Compared with controls, individuals with stroke had larger percent reductions in maximal walking speed, greater decrements in hip range of motion and peak velocity during swing, greater decrements in ankle velocity and lack of modulation of hip flexor EMG following fatiguing dynamic hip flexion contractions. For a given level of fatigue, the impact on walking function was more profound in individuals with stroke than neurologically intact individuals, and a decreased ability to up regulate hip flexor muscle activity may contribute. These data highlight the importance of monitoring the effect of hip flexor muscle activity during exercise or performance of activities of daily living on walking function post stroke

Carotenoides Pro-vitamina A em frutos de bananeira.

Os tipos de carotenóides variam muito nas frutas, sendo que aproximadamente 50 carotenóides possuem atividade pró-vitamina A. Dentre esses o β-caroteno é o mais importante e abundante em alimentos, seguido do α-caroteno e β-criptoxantina, os quais possuem a metade da atividade de vitamina A, comparativamente ao primeiro caroteno. Outros carotenóides não pró-vitamina A, porém com efeitos relevantes à saúde humana (e.g., antioxidante, antitumoral e inibidores da degeneração macular), também ocorrem em alimentos (luteína, zeaxantina e licopeno, por exemplo - RODRIGUEZ-AMAYA, 2001) e sua identificação em frutos de bananeira é considerado relevante. A banana destaca-se pelo seu alto potencial como alimento funcional, devido a seu alto consumo, principalmente em países subdesenvolvidos

Searching for Jobs: Evidence from MBA Graduates

This paper proposes and tests empirically a model of optimal job search using novel data on job seeking strategies of participants in the labor market for MBA graduates. Theoretically and empirically I find that the breadth of search that workers conduct depends on their ability, outside option, and fit with available jobs, as well as on the exogenous job application cost and the ex-ante probability of applications resulting in offers. These results illustrate the formation of the supply of human capital available to hiring companies, which drives the efficiency of matching between workers and firms and ultimately determines productivity

Cloning Protocol of Aloe vera as a Study-Case for “Tailor-Made” Biotechnology to Small Farmers

Aloe vera has been used worldwide both for pharmaceutical, food, and cosmetic industries due to the plethora of biological activities of some of its metabolites. A study case is reported focusing on the development of a cloning protocol of A. vera to provide propagation material with superior quality to the private sector in southern Brazil, i.e., A. vera juice industry. Such biotechnological approach afforded ca. 4,300 plantlets from 20 explants, over a 6-month period, overcoming the drawback of the lack of propagation material. Typically, the results have led to the increase of the cultured area and juice production of that species coming true the goal of the partnership between the public and private sectors herein involved. The transference of the resulting technology was successfully performed to the company and a patent covering the biotechnological process has been recently requested to official organisms on behalf of the partners.El Aloe vera ha sido empleado mundialmente en las industrias farmacéutica, alimentaria y cosmética, debido a la variedad de actividades biológicas de sus metabolitos. Un estudio de caso es reportado, enfocado en el desarrollo de un protocolo de clonamiento de A. vera para proveer propagación de material de calidad superior al sector privado en el sur de Brasil, por ejemplo, la industria de jugo de A. Vera. Ya que las plantas obtenidas mediante métodos biotecnológicos ascienden a 4300 plántulas desde 20 explantes, en un período de 6 meses, se hace un problema la inminente falta de material. Típicamente los resultados han conducido al incremento de del área cultivada y de la producción de jugo de las especies con verdaderos objetivos de asociatividad entre los sectores privados y públicos. La transferencia de la tecnología resultante fue exitosamente desempeñada hacia la compañía y una patente que protege el proceso biotecnológico ha sido recientemente solicitada a los organismos de patentamiento.Aloe vera has been used worldwide both for pharmaceutical, food, and cosmetic industries due to the plethora of biological activities of some of its metabolites. A study case is reported focusing on the development of a cloning protocol of A. vera to provide propagation material with superior quality to the private sector in southern Brazil, i.e., A. vera juice industry. Such biotechnological approach afforded ca. 4,300 plantlets from 20 explants, over a 6-month period, overcoming the drawback of the lack of propagation material. Typically, the results have led to the increase of the cultured area and juice production of that species coming true the goal of the partnership between the public and private sectors herein involved. The transference of the resulting technology was successfully performed to the company and a patent covering the biotechnological process has been recently requested to official organisms on behalf of the partners