Determinants of director compensation in two-tier systems: evidence from German panel data

Building on a unique panel data set of German Prime Standard companies for the period 2005-2008, this paper investigates the influencing factors of both director compensation levels and structure, i.e. the probability of performance-based compensation. Drawing on agency theory arguments and previous literature, we analyze a comprehensive group of determinants, including detailed corporate performance, ownership and board characteristics. While controlling for unobserved heterogeneity, we find director compensation to be set in ways consistent with optimal contracting theory. I.e. compensation is systematically structured to mitigate agency conflicts and to encourage effective monitoring. Thus, our results indicate that similar types of agency conflicts exist in the German two-tier setting. --Director Compensation,Corporate Governance,Outside Directors,Two-tier System,Agency Costs

X-Ray Eclipse Timing in the LMXB EXO0748-676

Orbital period changes are an important diagnostic for understanding low mass X-ray binary (LMXB) accretion-induced angular momentum exchange and overall system evolution. We present our most recent results for the eclipse timing of the LMXB EXO0748-676. Since its discovery in 1985 it has apparently undergone three distinct orbital period "epochs", each characterized by a different orbital period than the previous epoch. We outline the orbital period behavior for EXO0748-676 over the past 18 years and discuss the implications of this behavior in light of current theoretical ideas for LMXB evolution.Comment: 4 Pages, 3 Figures, Submitted to the X-Ray Timing 2003: Rossi and Beyond conference, November 200

Comptonization and the Spectra of Accretion-Powered X-Ray Pulsars

Accretion-powered X-ray pulsars are among the most luminous X-ray sources in the Galaxy. However, despite decades of theoretical and observational work since their discovery, no satisfactory model for the formation of the observed X-ray spectra has emerged. In this paper, we report on a self-consistent calculation of the spectrum emerging from a pulsar accretion column that includes an explicit treatment of the bulk and thermal Comptonization occurring in the radiation-dominated shocks that form in the accretion flows. Using a rigorous eigenfunction expansion method, we obtain a closed-form expression for the Green's function describing the upscattering of monochromatic radiation injected into the column. The Green's function is convolved with bremsstrahlung, cyclotron, and blackbody source terms to calculate the emergent photon spectrum. We show that energization of photons in the shock naturally produces an X-ray spectrum with a relatively flat continuum and a high-energy exponential cutoff. Finally, we demonstrate that our model yields good agreement with the spectra of the bright pulsar Her X-1 and the low luminosity pulsar X Per.Comment: 6 Pages, 2 Figures, To appear in "The Multicoloured Landscape of Compact Objects and their Explosive Progenitors" (Cefalu, Sicily, June 2006). Eds. L. Burderi et al. (New York: AIP

Criminal Authorities and the State: Gangs, Organized Crime, and Police in Brazil

Drug gangs and organized criminal groups rarely evolve into structured authorities governing their resident communities. Where this occurs, however, they may effectively replace the state in its most basic functions, and consequently exclude subject populations from the rights and protections supposedly guaranteed by the state. Employing qualitative research methods, this study compares criminal development and state public security policies in Rio de Janeiro and Recife, Brazil. The research is primarily concerned with the development of criminal authority structures, and asks when, where, why, and how they develop. Arguing that the extant literature on organized crime fails to adequately explain this phenomenon—particularly in the case of drug trafficking gangs—I draw from the civil wars literature to theoretically explain the rise of non-state authority structures. The parallels are compelling. In Rio de Janeiro, concentrated illicit wealth created by the cocaine boom in the 1980s attracted an international arms market that helped drug gangs dominate larger territories (i.e. opportunities), while indiscriminate and lethally violent state repression pushed non-criminal publics into a de facto alliance with drug traffickers (i.e. grievance). In this context gangs—and later, militias—developed clear and structured governing functions. Other factors, such as inhibiting geography, also contributed to this authoritative duality. In Recife, by contrast, drug gangs have remained small, disorganized, and unengaged in local political structures. A smaller drug market, flat and vehicle-accessible slums, and a comparatively much less violent police force help to explain the failure of gangs and other criminal groups to develop broader authoritative functions