An Empirical Analysis of the Role of Risk Aversion in Executive Compensation Contracts

This paper empirically tests the principal-agent model prediction that the use of performance measures for incentive purposes is affected by the agent’s risk aversion. We find that the use of both accounting and market performance measures in executive compensation contracts decreases as the level of risk aversions increases. We further find that agent-specific characteristics, i.e., risk aversion, become more important in designing executive compensation contracts when performance measures are less useful due to measure-specific characteristics.Economics ;

Physical Properties of Complex C Halo Clouds

Observations from the Galactic Arecibo L-Band Feed Array HI (GALFA-HI) Survey of the tail of Complex C are presented and the halo clouds associated with this complex cataloged. The properties of the Complex C clouds are compared to clouds cataloged at the tail of the Magellanic Stream to provide insight into the origin and destruction mechanism of Complex C. Magellanic Stream and Complex C clouds show similarities in their mass distributions (slope = -0.7 and -0.6, respectively) and have a common linewidth of 20 - 30 km/s (indicative of a warm component), which may indicate a common origin and/or physical process breaking down the clouds. The clouds cataloged at the tail of Complex C extend over a mass range of 10^1.1 to 10^4.8 solar masses, sizes of 10^1.2 to 10^2.6 pc, and have a median volume density of 0.065 cm^(-3) and median pressure of (P/k) = 580 K cm^{-3}. We do not see a prominent two-phase structure in Complex C, possibly due to its low metallicity and inefficient cooling compared to other halo clouds. From assuming the Complex C clouds are in pressure equilibrium with a hot halo medium, we find a median halo density of 5.8 x 10^(-4) cm^(-3), which given a constant distance of 10 kpc, is at a z-height of ~3 kpc. Using the same argument for the Stream results in a median halo density of 8.4 x 10^(-5) x (60kpc/d) cm^(-3). These densities are consistent with previous observational constraints and cosmological simulations. We also assess the derived cloud and halo properties with three dimensional grid simulations of halo HI clouds and find the temperature is generally consistent within a factor of 1.5 and the volume densities, pressures and halo densities are consistent within a factor of 3.Comment: Accepted for publication in AJ. 54 pages, including 6 tables and 16 figure