Performance Incentives, Performance Pressure and Executive Turnover

We examine the relationship between the optimal incentive contract and the firm’s decision to fire a manager for poor performance. We first derive some theoretical results using a simple principal-agent model, and then examine the empirical evidence on the incidence of forced turnover among CEOs with different compensation contracts. We find that CEOs with steeper compensation contracts (i.e., with greater incentives) are more likely to be fired following poor firm performance. Logit estimations indicate that among firms that make a net loss in a given year, a CEO receiving incentives at the 60th percentile level is 26.55% more likely to be fired than a CEO with incentives at the 40th percentile. The corresponding figure for firms whose ROA is below the industry average level is 15.07%, and for firms whose stock return is below the market return is 15.86%. The results are robust to various performance and incentive measures. Overall, our re-sults indicate that CEOs with greater incentives also face greater performance pressures.Incentive Contracts, Executive Compensation, Equity-based compensation, Management Turnover

Learning versus Diversification in Project Choice

We study the issue of project choice when a risk-averse agent must choose whether to invest in two projects of the same type (focus) or of different types (diversification). Projects of the same type are subject to common type-specific shocks. Hence focusing is more risky within each period, but enables faster learning across periods. Optimal project choice involves balancing these two considerations. We demonstrate how an agent's choice of whether to focus or diversify is related to (i) the speed of learning (ii) the type-specific risk and (iii) his risk- aversion and investment horizon. We show that, contrary to intuition, an increase in type-specific risk may lead to a decrease in diversification. Our theory is applicable to occupational choice within households, project choice under group lending, and corporate diversification.Bayesian Learning, Insurance, Risk-Sharing

Optimal acyclic edge colouring of grid like graphs

AbstractWe determine the values of the acyclic chromatic index of a class of graphs referred to as d-dimensional partial tori. These are graphs which can be expressed as the cartesian product of d graphs each of which is an induced path or cycle. This class includes some known classes of graphs like d-dimensional meshes, hypercubes, tori, etc. Our estimates are exact except when the graph is a product of a path and a number of odd cycles, in which case the estimates differ by an additive factor of at most 1. Our results are also constructive and provide an optimal (or almost optimal) acyclic edge colouring in polynomial time

A comparison of the ForestMan AI software with the Heureka system regarding forest growth simulations and carbon calculations

The purpose of this study is to evaluate the reliability of the forest growth simulations and carbon calculations of the ForestMan AI forest planning system. The ForestMan AI software is developed by and the property of Skogr Kaupa Group AB. ForestMan AI is based on the ProdMod model from SLU and carbon calculations according to methodologies recommended by the IPCC in Guidelines for National Greenhouse Gas Inventories reporting.The Heureka system calculations are used as benchmark for the evaluation. Heureka is a planning system that has been developed over more than 20 years and has found extensive use in both research and among forest companies. The Heureka system calculations is used as the basis for evaluation since it can be considered state-of-the-art with respect to forest research and because it is also used for assessments for the Swedish reporting of greenhouse gas emissions.The evaluation is based on the data from a forest estate in the Halland county. The estate encompasses 2.037 ha and has spruce as dominating species. It is, by and large, representative of forest in the region.The evaluation shows ForestMan AI to perform growth projections and the associated carbon stock assessment to agree to a great extent. No major deviations between the outputs of the systems are identified.The result of the study can be used as a basis for further development of standards for evaluating forest planning systems. Carbon as a commodity represents an emerging branch of forestry. Furthermore, it is the quantity to report by financial institutions and forest owners in Climate Benefit Analyses (CBA) mandated by the EU Taxonomy. Thus, it is crucial that different actors, SMEs (Small, Medium Enterprises) and others, are given access to research in various forms to meet the needs of this emerging branch of forestry

Simulation of Net Primary Production (NPP) of Picea abies in southern Sweden : an analysis based on three forest growth models

The potential Net Primary Production (NPP) under climate change was simulated by using two process based growth models, 3-PG and BIOMASS. Both models were run for two climate scenarios A2 and B2 during the period 2071-2100 and compared with simulations of reference climate (1961-1990). The simulated NPP of the 3-PG model was also compared with simulated output of NPP from the BIOMASS model, for Picea abies (Norway spruce) at Asa in southern Sweden. In addition, the simulation results from 3-PG were compared with the biomass production of the empirical growth model DT. Special objectives of this study were (i) to estimate 3-PG parameters for Picea abies, (ii) compare the simulated NPP under different climate scenarios A2 and B2, (iii) analyze the 3-PG model sensitivity towards change in temperature, rainfall and soil fertility and (iv) to compare the prediction of potential NPP between 3-PG and BIOMASS models. Climate data showed an increased precipitation during winter season and elevated temperature throughout the whole year. The development of dry mass (tones/ha) simulated through 3-PG had good correlation with values simulated through DT. The R2 value for foliage dry mass, root dry mass, stem dry mass and total dry mass are 0.82, 0.94, 0.7 and 0.73 respectively. The relative increase in predicted NPP ranged between 26.8-48.4% and 55.5-101.6% for A2 and B2 scenarios, respectively. A sensitivity analysis was also conducted for the effect of rainfall, temperature and soil fertility on potential NPP simulated by the 3-PG model. The relative range of NPP under A2-scenario was 55.5-101.6% for the 3-PG model and 13.3-41.8 for the BIOMASS model. The corresponding value for the B2-scenario was 26.8-48.4 % for 3-PG and 10.7-29.7 for BIOMASS

Impacts of climate change on forest management and implications for Swedish forestry

While climate change is expected to increase the growth rates of most tree species in Sweden in the future, during this period, there are also increased risks of tree damage due to various risk factors associated with climate change. Therefore, it is necessary to develop adaptive management measures in order to exploit the benefits of climate change and minimize the damage resulting from these risk factors. In this thesis, the interactive effects of future climate change and various risk factors associated with the future climate such as storms, environmental pollutants, pests and pathogens such as root rot and bark beetle on growth and yield of important tree species in Swedish forestry such as Norway spruce (Picea abies (L.) Karst.), Scots pine (Pinus sylvestnis L.) and birch (Betula spp) are investigated and possible adaptive management measures are proposed. Simulations of a representative Norway spruce stand in southern Sweden performed using the empirical Heureka-Standwise model (Paper I) showed that forest management practices such as changing the thinning regime, shortening rotation periods, and switching to exotic tree species like hybrid aspen and hybrid larch could effectively reduce damage caused by risk factors and be financially rewarding. Standlevel simulations of six representative stands across Sweden using the ozone parameterized process-based model 3-PG showed that future growth and biomass production could be adversely affected by increasing tropospheric ozone concentrations (Paper II). However, the reduction in growth and biomass production was much lower than the increase due to climate change in all parts of Sweden other than the south. A new landscape-level hybrid model 3PG-Heureka was developed, parameterised and evaluated for Kronoberg county, Sweden (Paper III). The overall performance of the model was satisfactory with highest average error content of 1.5%. The hybrid model’s predictions under the future climate scenarios indicated that the storm events could drastically affect the growth and economy of forest landscape in Kronoberg county if the current forest management remains unchanged (Paper IV). Adaptive management regimes featuring shorter rotation periods were predicted to improve annual volume increments and net revenue while reducing storm-felling under two future climate scenarios (RCP4.5 and RCP8.5) but replacing Norway spruce with Scots pine was found to be less effective than reducing the rotation period

Failed shoulder stabilization procedure in the elderly: reverse shoulder replacement is the treatment ultimum

Shoulder instability, though often seen in younger individuals it can also occur in the elderly. Shoulder instability in the elderly is often missed and definitive management gets delayed. Treatment delay has a significant influence on the choice of surgical procedure and its functional outcome. We report a 77 year old female who presented with a missed anterior dislocation of the glenohumeral joint. She had undergone an open Latarjet procedure for shoulder instability eight months before her presentation. Considering her age, humeral head bone defects, rotator cuff tear and degenerative changes in the joint we opted for a Reverse Shoulder Replacement in her. The patient now has a pain free, stable and mobile shoulder joint. Her pre-operative Constant score was 11 which improved to 67 at 6 months follow up. Now after 12 months follow up, she has active flexion up to 150°, abduction- 90°, external rotation- 10°, internal rotation- 300 and extension- 50°. Reverse shoulder replacement is a viable treatment option for chronic locked shoulder dislocations with concomitant rotator cuff lesions. Though there is a concern about failure of the glenoid component due to bone defects, RSA is still preferable in elderly patients with low functional demand

Tensor fascia lata muscle pedicle grafting for avascular necrosis femoral head

Background: Osteonecrosis of femoral head (AVN) is a disabling condition with ill-defined etiology and pathogenesis. In more than 60% it leads to osteoarthritis of hip joint. Treatment for this condition includes both operative and non-operative methods with variable success rates. Surgical options being aimed at both conservation of femoral head and arthroplasty of hip joint. Aim of our study was to evaluate the efficacy of tensor fascia lata muscle pedicle grafting in the management of osteonecrosis of femoral head.Methods: 27 cases with a mean age of 38.7 years (range from 24 to 52) who underwent tensor fascia lata muscle pedicle grafting in the management of  osteonecrosis  of femoral head were prospectively evaluated with a  mean follow up period of  7.3 years (range from 3 to 12 years). Watson-Jones approach was used in all patients. Average hospital stay was 12 days. Harris hip score was used for the evaluation of clinical outcome.Results: In our series of 27 cases, the Harris hip score was excellent (90-100) in 19, good (80-89) in 5, fair (70-79) in 2 and  poor  (<70) in 1 case at final follow up.Conclusions: Tensor fascia lata muscle pedicle grafting is an effective, technically easier, pain relieving head-preserving procedure and will improve outcome in properly selected patients with osteonecrosis of femoral head.

Antiulcer Activity of Indigenous Plant Operculina turpethum

In the Indian traditional system of medicine Operculina turpethum is commonly used to treat various ailments including peptic ulcer, inflammation, and pain. Ulcer preventive and ulcer protective activities of HAOP and MOP stem bark extracts of Operculina turpethum (100 mg/kg, b.w., orally) were evaluated employing aspirin + pylorus ligation (APL) model in experimental rats. The results suggested that both extracts (HAOP and MOP) possess enhanced ulcer preventive and protective activities when compared with the standard drug ranitidine. HAOP showed more pronounced effect when compared to MOP. Further the result of the histopathological and biochemical studies also confirms potent ulcer preventive and protective nature of a extracts in a similar manner