Executive compensation and the susceptibility of firms to hostile takeovers : An empirical investigation of the U.S. oil industry

We investigate the suggested substitutive relation between executive compensation and the disciplinary threat of takeover imposed by the market for corporate control. We complement other empirical studies on managerial compensation and corporate control mechanisms in three distinct ways. First, we concentrate on firms in the oil industry for which agency problems were especially severe in the 1980s. Due to the extensive generation of excess cash flow, product and factor market discipline was ineffective. Second, we obtain a unique data set drawn directly from proxy statements which accounts not only for salary and bonus but for the value of all stock-market based compensation held in the portfolio of a CEO. Our data set consists of 51 firms in the U.S. oil industry from 1977 to 1994. Third, we employ ex ante measures of the threat of takeover at the individual firm level which are superior to ex post measures like actual takeover occurrence or past incidence of takeovers in an industry. Results show that annual compensation and, to a much higher degree, stock-based managerial compensation increase after a firm becomes protected from a hostile takeover. However, clear-cut evidence that CEOs of protected firms receive higher compensation than those of firms considered susceptible to a takeover cannot be found

Phase Lags and Coherence of X-Ray Variability in Black Hole Candidates

The ``low'' (hard or ``non-thermal'') state of black hole candidates is sometimes modelled via an optically thick, hot Compton cloud that obscures a softer input source such as an accretion disk. In these models the observed output spectra consist entirely of photons reprocessed by the cloud, making it difficult to extract information about the input spectra. Recently Miller (1995) has argued that the Fourier phase (or time) lag between hard and soft X-ray photons in actuality represents the phase lags intrinsic to the input source, modulo a multiplicative factor. The phase lags thus would be a probe of the input photon source. In this paper we examine this claim and find that, although true for the limited parameter space considered by Miller, the intrinsic phase lag disappears whenever the output photon energy is much greater than the input photon energy. The remaining time lags represent a ``shelf'' due to differences between mean diffusion times across the cloud. As pointed out by Miller, the amplitude of this shelf -- which is present even when the intrinsic time lags remain -- is indicative of the size and temperature of the Compton cloud and is a function of the two energies being compared. However, we find that with previous instruments such as Ginga the shelf, if present, was likely obscured by counting noise. A more sensitive measure of Compton cloud parameters may be obtainable from the coherence function, which is derived from the amplitude of the Fourier cross power spectral density. This function has been seen to exponentially decrease at high Fourier frequencies in Cygnus X-1. Coherence loss is characteristic of Compton clouds that undergo large variations of size and/or temperature on time scales longer than about 10 seconds. We argue that observing phase lags and coherenceComment: 14 pages, uuencoded postscript, accepted for publication in Monthly Notice

Network Inference from Co-Occurrences

The recovery of network structure from experimental data is a basic and fundamental problem. Unfortunately, experimental data often do not directly reveal structure due to inherent limitations such as imprecision in timing or other observation mechanisms. We consider the problem of inferring network structure in the form of a directed graph from co-occurrence observations. Each observation arises from a transmission made over the network and indicates which vertices carry the transmission without explicitly conveying their order in the path. Without order information, there are an exponential number of feasible graphs which agree with the observed data equally well. Yet, the basic physical principles underlying most networks strongly suggest that all feasible graphs are not equally likely. In particular, vertices that co-occur in many observations are probably closely connected. Previous approaches to this problem are based on ad hoc heuristics. We model the experimental observations as independent realizations of a random walk on the underlying graph, subjected to a random permutation which accounts for the lack of order information. Treating the permutations as missing data, we derive an exact expectation-maximization (EM) algorithm for estimating the random walk parameters. For long transmission paths the exact E-step may be computationally intractable, so we also describe an efficient Monte Carlo EM (MCEM) algorithm and derive conditions which ensure convergence of the MCEM algorithm with high probability. Simulations and experiments with Internet measurements demonstrate the promise of this approach.Comment: Submitted to IEEE Transactions on Information Theory. An extended version is available as University of Wisconsin Technical Report ECE-06-

Neighboring suboptimal control for vehicle guidance

The neighboring optimal feedback control law is developed for systems with a piecewise linear control for the case where the optimal control is obtained by nonlinear programming techniques. To develop the control perturbation for a given deviation from the nominal path, the second variation is minimized subject to the constraint that the final conditions be satisfied (neighboring suboptimal control). This process leads to a feedback relationship between the control perturbation and the measured deviation from the nominal state. Neighboring suboptimal control is applied to the lunar launch problem. Two approaches, single optimization and multiple optimization for calculating the gains are used, and the gains are tested in a guidance simulation with a mismatch in the acceleration of gravity. Both approaches give acceptable results, but multiple optimization keeps the perturbed path closer to the nominal path

Coronal--Temporal Correlations in GX339-4: Hysteresis, Possible Reflection Changes, and Implications for ADAFs

We present spectral fits and timing analysis of Rossi X-ray Timing Explorer observations of GX339-4. These observations were carried out over a span of more than two years and encompassed both the soft/high and hard/low states. Hysteresis in the soft state/hard state transition is observed. The hard state exhibits a possible anti-correlation between coronal compactness (i.e., spectral hardness) and the covering fraction of cold, reflecting material. The correlation between `reflection fraction' and soft X-ray flux, however, appears to be more universal. Furthermore, low flux, hard state observations - taken over a decline into quiescence- show that the Fe line, independent of `reflection fraction', remains broad and at a roughly constant equivalent width, counter to expectations from ADAF models. All power spectral densities (PSD) of the hard state X-ray lightcurves are describable as the sum of just a few broad, quasi-periodic features with frequencies that roughly scale as coronal compactness to the -3/2 power. Similar to observations of Cyg X-1, time lags between soft and hard variability anti-correlate with coronal compactness. A stronger correlation is seen between the time lags and the `reflection fraction'.Comment: 29 Pages, 17 Figures, 6 Tables. Accepted for Publication in MNRAS. (Abstract Abridged

The Economics of Native Subsistence Activities in a Village of Southwestern Alaska

It is demonstrated that while it is difficult to arrive directly at values for the products of traditional subsistence activities, such values are necessary for the making of an assessment of actual and potential savings realizable through the use of traditional foods. These savings can account for one-quarter of the total real income of a family, although it is possible that inflation will decrease this amount in the future. The cost of basic equipment required for traditional subsistence activities and the total amount of flesh obtained are the primary determinants of final expense to the hunter