Are Perks Purely Managerial Excess?

Why do some firms tend to offer executives a variety of perks while others offer none at all? A widespread view in the corporate finance literature is that executive perks are a form of agency or private benefit and a way for managers to misappropriate some of the surplus the firm generates. According to this view, firms with plenty of free cash flow that operate in industries with limited investment prospects should typically offer perks. The theory also suggests that firms that are subject to more external monitoring should have fewer perks. Overall, the evidence for the private benefits explanation is, at best, mixed. We do, however, find evidence that perks are offered most in situations where they are likely to enhance managerial productivity. This suggests that a view of perks that sees them purely as managerial excess is incorrect.

Innovation and Incentives: Evidence from Corporate R&D

Beginning in the late 1980s, American corporations began increasingly linking the compensation of central research personnel to the economic objectives of the corporation. This paper examines the impact of the shifting compensation of the heads of corporate research and development. Among firms with centralized R&D organizations, a clear relationship emerges: more long-term incentives (e.g. stock options and restricted stock) are associated with more heavily cited patents. These incentives also appear to be somewhat associated with more patent filings and patents of greater generality. We address endogeniety concerns in a variety of ways, including examining the impact of compensation for other key managers and utilizing an instrument based on spawning activity in the region. While we cannot determine whether the effect is due to better project selection or better people selection, the results continue to be consistent with our interpretation that performance pay of corporate R&D heads is associated with more innovative firms.

The Flattening Firm and Product Market Competition: The Effect of Trade Liberalization

This paper establishes a causal effect of competition from trade liberalization on various characteristics of organizational design. We exploit a unique panel dataset on firm hierarchies (1986-1999) of large U.S. firms and find that increasing competition leads firms to become flatter, i.e., (i) reduce the number of positions between the CEO and division managers (DM), (ii) increase the number of positions reporting directly to the CEO (span of control), (iii) increase DM total and performance-based pay. The results are generally consistent with the explanation that firms redesign their organizations through a set of complementary choices in response to changes in their environment.organizational change, hierarchy, organizational structure, incentives, complementarities, decentralization, competition

Who Lives in the C-Suite? Organizational Structure and the Division of Labor in Top Management

This paper shows that top management structures in large US firms radically changed since the mid-1980s. While the number of managers reporting directly to the CEO doubled, the growth was driven primarily by functional managers rather than general managers. Using panel data on senior management positions, we explore the relationship between changes in executive team composition, firm diversification, and IT investments—which arguably alter returns to exploiting synergies through corporate-wide coordination by functional managers in headquarters. We find that the number of functional managers closer to the product (“product” functions i.e., marketing, R&D) increase as firms focus their businesses, while the number of functional managers farther from the product (“administrative” functions i.e., finance, law, HR) increase with IT investments. Finally, we show that general manager pay decreases as functional managers join the executive team suggesting a shift in activities from general to functional managers—a phenomenon we term “functional centralization.”

Comparative Study of HIM Professionals Comprehension and Use of Data Protection on Mobile Devices

AS SMARTPHONE USE continues to grow, these devices are often used to access an individual’s private information. American mobile device users spend, on average, five hours1 of their day communicating or accessing information on their smartphones. Approximately 69 percent of that time is spent in apps. Recent figures show healthcare apps have helped boost that percentage, as more than 50 percent of smartphone users gather health-related information on their phones, while 80 percent of physicians use smartphones and medical apps

The Flattening Firm and Product Market Competition: The Effect of Trade Liberalization

This paper establishes a causal effect of competition from trade liberalization on various characteristics of organizational design. We exploit a unique panel dataset on firm hierarchies (1986-1999) of large U.S. firms and find that increasing competition leads firms to become flatter, i.e., (i) reduce the number of positions between the CEO and division managers (DM), (ii) increase the number of positions reporting directly to the CEO (span of control), (iii) increase DM total and performance-based pay. The results are generally consistent with the explanation that firms redesign their organizations through a set of complementary choices in response to changes in their environment.

Evidence of Systematic Differences in User Populations

Do user populations differ systematically in the way they express and rate sentiment? We use large collections of Danish and U.S. reviews to investigate this question, and we find evidence of important systematic differences: first, positive ratings are far more common in the U.S. data than in the Danish data. Second, Danish reviewers tend to under-rate their own positive reviews compared to U.S. reviewers. This has potentially far-reaching implications for the interpretation of user ratings, the use of which has exploded in recent years

The All-sky Medium Energy Gamma-ray Observatory eXplorer (AMEGO-X) Mission Concept

The All-sky Medium Energy Gamma-ray Observatory eXplorer (AMEGO-X) is designed to identify and characterize gamma rays from extreme explosions and accelerators. The main science themes include: supermassive black holes and their connections to neutrinos and cosmic rays; binary neutron star mergers and the relativistic jets they produce; cosmic ray particle acceleration sources including Galactic supernovae; and continuous monitoring of other astrophysical events and sources over the full sky in this important energy range. AMEGO-X will probe the medium energy gamma-ray band using a single instrument with sensitivity up to an order of magnitude greater than previous telescopes in the energy range 100 keV to 1 GeV that can be only realized in space. During its three-year baseline mission, AMEGO-X will observe nearly the entire sky every two orbits, building up a sensitive all-sky map of gamma-ray sources and emission. AMEGO-X was submitted in the recent 2021 NASA MIDEX Announcement of Opportunity.Comment: 23 pages, 16 figures, Published Journal of Astronomical Telescopes, Instruments, and System