Friendship

Imagine, for a moment, that you are a new child, in an unfamiliar place, full of invisible faces that stare at you as you walk past them. Your face buried in a map so that you can find your way through your new environment and you continuously bump into strangers who do not offer a supporting hand to guide you on your way. You are lost, and you do not know what to do. Suddenly, out of nowhere, a hand comes right in front of your path, grasping yours, and leading the way to safety and happiness.It is your first friend. Friendship is the greatest gift you can give someone to ensure mental, emotional, and social aspects for not only your own, but someone else’s life in the process. Everyone needs one good, true friend to stay mentally healthy. Having been proven by scientific experiments studied by Harvard Medical students, if a true friend is available to you, you can relinquish your thoughts and emotions to in order to relieve stress from your brain.Scientists agree that stress releases chemicals changes throughout your brain, and that these changes could influence your health. With a friend there for you, you are able to prevent stress from depleting your energy to even decreasing the stress that can build up cancer cells. Knowing such a thing, can you not see that your friend is saving your life over and over again? How nice is that? Friends are essential to your life.Everyone needs one good, true friend to stay emotionally healthy. Especially for children, having a friend along for the long run is not only nutritious to your emotional state, but as well as for your physical state as well. Common knowledge shows that without the required love or mutual feeling of friendship towards a human being cause’s complications when it comes to probing further in intellectual discoveries or inhibits one from gaining any social connections.Having a friend, or even better, multiple friends, can improve your emotional state in vast like ways, such as increasin g social interactions after gaining self-confidence in the process. Without friends, you’re mental status is also affected due to stress levels that build up after being solitary for long periods of time, or perhaps from rejection, that it can lead to depression or even suicide. Knowing such a thing, can you not see that your friend is saving your life over and over again? Friends are essential to your life.In a personal view, being in the world without friends can be a very scary place. Friends can get you places, help you meet new faces, and make your life brighter than the sun. Friends are there for you when your life is down, if you have had a bad break-up, or if you have lost someone you love. They comfort you when you think you have got nothing else. A friend can be as close as a sibling, or as distant as your worst enemy, but in the end, you are not alone, and that makes all the difference when it comes to your mental, and emotional, state.Many of people believe that n ot everyone is socially inclined by birth or that said person is anti-social by their own means. However, a human being can not possible are, as proven in the statistics above, against human relation and contact without having prior past issues, such as child abuse, or depression. Friends will always be essential to you. In conclusion, Friendship is the greatest gift you can give someone to ensure mental, emotional, and social aspects for not only your own, but someone else’s life in the process.Friends relieve common stresses from a person that can leave them much healthier, mentally, and they can become a target for affections, or for any other positive emotion, leaving you socially enabled to lead your life. Socially connected to friends can lead to more friends, opening more opportunities that go up to business partners, to working together on a school paper. Friends can save your life repeatedly over and over again, isn’t that nice? You need friends, becauseâ€⠀ Friends are essential to your life. Friendship Friendship is the divine feeling or relationship between friends. Friendships developed ultimately and required to be maintained with care. Men can’t live without friend and real friendship could be a great support for one’s life. Friendship is simply a divine relationship based on feelings and understanding. It’s not ordinary social or official affair between people but a divine feelings and care based on mutual trust, affection and support. A true friendship is developed ultimately; sometimes relationship could be established for earthly benefits but that is not really considered friendship.A real friendship does not aim any worldly interests rather spiritual and based on share and care between friends. A relationship required to be reciprocal to turn into friendship. That is friendship between two people or among several people, only develops when they all loves, understands and trust one another equally. Successful friendship only established provided taste, feeling and sentiments of friends are same or common. A friendly relationship between people with strictly different outlook and view is almost impossible.A friendship turns stronger with care and maintenance. In the same way disrespect towards it fade and destroy it away. Friends must be sincere and loyal towards one another. One should not show vanity and power over his/her friends. Friends must bare a sense of equity in mind. Friendship with disparity doesn’t last very long. Real friend be always with his/her friend in well and in owes. In order to maintain friendship, it must be valued and handled delicately because treatment towards friendship determines a friend is real friend or fair weathered.All people seems friendly are not friend. Many pretend to be friend and terminate friendship as soon as their interests are fulfilled. We may have thousands of fair-weathered friends in prosperity but real friends are those who stand by us in our trouble. It’s very painful when friends proved traitor so in choice of friends we must be cautious. A good friend supports us always and led us in the right way. A good friend encourages us for positive and forbid us form wrong deeds. A real good friend is an invaluable treasure. Benefits and necessity of friendship is innumerable.Human being needs companion to live. And friends are one of the best companion because supports us, care us and bless us an opportunity to share our thoughts freely. As friendship doesn’t aim any worldly things, serious dispute between friends are rare or mostly trifle. In a word, friendship is blessed with countless gifts. Friendship is undoubtedly a heavenly thing. Life is colourless and slow without a friend. Though real friends are not easy to find, a real friendship with a good person is a precious gift that could be great supports for lifetime.. Friendship Friendship is the divine feeling or relationship between friends. Friendships developed ultimately and required to be maintained with care. Men can’t live without friend and real friendship could be a great support for one’s life. Friendship is simply a divine relationship based on feelings and understanding. It’s not ordinary social or official affair between people but a divine feelings and care based on mutual trust, affection and support. A true friendship is developed ultimately; sometimes relationship could be established for earthly benefits but that is not really considered friendship.A real friendship does not aim any worldly interests rather spiritual and based on share and care between friends. A relationship required to be reciprocal to turn into friendship. That is friendship between two people or among several people, only develops when they all loves, understands and trust one another equally. Successful friendship only established provided taste, feeling and sentiments of friends are same or common. A friendly relationship between people with strictly different outlook and view is almost impossible.A friendship turns stronger with care and maintenance. In the same way disrespect towards it fade and destroy it away. Friends must be sincere and loyal towards one another. One should not show vanity and power over his/her friends. Friends must bare a sense of equity in mind. Friendship with disparity doesn’t last very long. Real friend be always with his/her friend in well and in owes. In order to maintain friendship, it must be valued and handled delicately because treatment towards friendship determines a friend is real friend or fair weathered.All people seems friendly are not friend. Many pretend to be friend and terminate friendship as soon as their interests are fulfilled. We may have thousands of fair-weathered friends in prosperity but real friends are those who stand by us in our trouble. It’s very painful when friends proved traitor so in choice of friends we must be cautious. A good friend supports us always and led us in the right way. A good friend encourages us for positive and forbid us form wrong deeds. A real good friend is an invaluable treasure. Benefits and necessity of friendship is innumerable.Human being needs companion to live. And friends are one of the best companion because supports us, care us and bless us an opportunity to share our thoughts freely. As friendship doesn’t aim any worldly things, serious dispute between friends are rare or mostly trifle. In a word, friendship is blessed with countless gifts. Friendship is undoubtedly a heavenly thing. Life is colourless and slow without a friend. Though real friends are not easy to find, a real friendship with a good person is a precious gift that could be great supports for lifetime..

The Power of Pen and Executive Compensation

ARTICLE IN PRESS Journal of Financial Economics 88 (2008) 1–25 www. elsevier. com/locate/jfec The power of the pen and executive compensation$ John E. Corea, Wayne Guaya,A, David F. Larckerb a The Wharton School, University of Pennsylvania, Philadelphia, PA 19104, USA b Graduate School of Business, Stanford University, Stanford, CA 94305, USA Received 28 October 2005; received in revised form 20 March 2007; accepted 4 May 2007 Available online 5 December 2007 Abstract We examine the press’ role in monitoring and in? uencing executive compensation practice using more than 11,000 press articles about CEO compensation from 1994 to 2002.Negative press coverage is more strongly related to excess annual pay than to raw annual pay, suggesting a sophisticated approach by the media in selecting CEOs to cover. However, negative coverage is also greater for CEOs with more option exercises, suggesting the press engages in some degree of ‘‘sensationalism. ’â€℠¢ We ? nd little evidence that ? rms respond to negative press coverage by decreasing excess CEO compensation or increasing CEO turnover. r 2007 Elsevier B. V. All rights reserved. JEL classi? cations: G32; G34; J33; M41Keywords: Press; Media; Executive compensation; Corporate governance 1. Introduction With the possible exception of major accounting frauds (e. g. , WorldCom, Enron, etc. ), there are few topics that are more pervasive and produce bigger headlines in the business press than executive compensation. The debate about executive compensation tends to focus on the overall level of compensation (e. g. , relative to workers in the US or to executives in other countries), the rate of increase (e. g. , relative to in? ation or stock price returns), and the form of payment (e. . , stock options). Although there is extensive academic research on the determinants of executive compensation, there is little empirical evidence on the role of the popular and business press as a poten tial monitor of executive pay (e. g. , see Zingales, 2000; Bebchuk and Fried, 2004). The objective of our study is to provide insight into three questions: (1) What decision model does the media use to select chief executive of? cers (CEOs) for coverage about their compensation, (2) What determines the proportion of that coverage that is negative-toned, and (3) Do ? ms and managers ? nd this attention $ We thank Greg Miller, seminar participants at Stanford University, and an anonymous referee for their helpful comments. We also thank Jihae Wee for excellent research support, and appreciate ? nancial support from the Wharton School of the University of Pennsylvania and the Graduate School of Business at Stanford University. ACorresponding author. E-mail address: [email  protected] upenn. edu (W. Guay). 0304-405X/$ – see front matter r 2007 Elsevier B. V. All rights reserved. doi:10. 1016/j. j? neco. 2007. 05. 001 ARTICLE IN PRESS 2 J. E.Core et al. / Journal of Financial Ec onomics 88 (2008) 1–25 suf? ciently costly that they respond by making changes to their compensation or employment practices? Empirical evidence on these research questions provides insight into the role of the press in monitoring and in? uencing executive compensation practice. We examine a large sample of ExecuComp CEOs and an extensive collection of more than 11,000 press articles about CEO compensation from 1994 to 2002. Using an iterative key word search procedure, we partition the press articles based on whether they have a negative tone.Thus, for each CEO, in each year, we obtain a measure of the number of compensation articles and the fraction of these articles with a negative tone. We use this data to provide evidence on the press’ decision model and on the effect of press coverage on ? rms’ actions. Not surprisingly, the press chooses to cover CEOs with high total annual pay. We also ? nd that in deciding which CEOs to cover, the press does not appear to discriminate between CEOs that receive high expected pay versus CEOs that receive high excess pay, where excess pay is the residual from an expected compensation model that controls for standard economic determinants.Further, CEOs at large ? rms and ? rms with poor operating performance are also more likely to be selected for coverage. Conditional on the press deciding to cover a CEO’s compensation, we ? nd that negative coverage is more strongly related to measures of excess total annual pay than to raw total annual pay. We interpret this result as evidence that the press uses a relatively sophisticated approach when writing negative articles about CEO compensation. On the other hand, we also ? nd that negative coverage is related to the CEOs’ proceeds from option exercises. This latter ? ding is consistent with Holmstrom and Kaplan’s (2003) concern that one of the reasons the press portrays executive pay as a ‘‘runaway train’’ is t hat it misinterprets the payoff from exercised options as being a component of annual pay. In fact, the grant date value of options, not the payoff at exercise, is widely considered the more appropriate measure of option pay. 1 We ? nd little support for the hypothesis that the press serves as a catalyst or change agent for CEO compensation practices. Speci? cally, there is no consistent evidence that total compensation decreases after CEOs receive negative press coverage, and we ? d no evidence that negative press coverage of CEO compensation is related to CEO turnover. Thus, our results do not corroborate recent evidence that the media exerts an important in? uence on corporate governance choices (e. g. , Dyck and Zingales, 2002, 2004; Louis, Joe, and Robinson, 2004). The remainder of the paper consists of four sections. Section 2 provides a literature review and develops our research questions. Section 3 describes the sample selection and measurement choices. The results are pres ented in Section 4, and summary conclusions are provided in Section 5. 2. Background and research questions . 1. Determinants of media attention about CEO compensation Although there is considerable discussion about the role of disclosure and transparency in monitoring managerial behavior, the precise mechanisms for disclosing and disseminating information have received limited attention in the academic literature (Zingales, 2000). Dyck and Zingales (2002) argue that this limited attention stems from the small role that the diffusion of information plays in agency models. 2 They argue that the media is one vehicle through which information is aggregated and credibly communicated to the public (and across ? ms). Thus, the media can play a substantial role in reducing the costs of contracting parties for collecting and evaluating information, and in shaping the reputation of contracting parties. In order to provide insight into these questions, it is necessary to identify the objectiv e function of the media. As suggested by Jensen (1979), the approach to modeling the media industry is similar to any industry and begins with analyzing the demand faced by news producers (e. g. , newspapers, magazines, etc. ) and the 1 It is possible that the press justi? bly writes negative articles about CEOs with large realized option payoffs if the magnitude of option exercises re? ects a measure of cumulative excess compensation over a period of time. 2 In the accounting literature, diffusion of information plays a large role in research on the quality of accounting information disclosed by management to its shareholders, or in theoretical agency models incorporating channels of communication. However, there is little work on intermediaries, such as the press, that ? lter ? rm disclosures and disseminate information to the general stockholding public. ARTICLE IN PRESSJ. E. Core et al. / Journal of Financial Economics 88 (2008) 1–25 3 supply of news received by these pro ducers. Dyck and Zingales (2002) and Miller (2006) argue that there is a consumer demand for the investigative reporting role of the media, and Zingales (2000) hypothesizes that readers rely on this reporting to form opinions only when they believe the information provided to be accurate and reliable. In contrast, Jensen (1979) takes a more skeptical view of the media and suggests that most of the demand for news services derives not from a demand for information, but from a demand for entertainment.Since the news media’s competition under this scenario is sitcom television and tabloids, the media is expected to sensationalize news stories. Jensen further argues that the media will tailor news stories to take a negative tone about individuals that are out of favor with public opinion (e. g. , CEOs who are paid much more than their peers, or who have laid off large numbers of employees). Miller (2006) provides some initial empirical results that are broadly consistent with bot h of the above sources of demand for publicity.He examines a sample of 263 cases of Securities and Exchange Commission (SEC) Accounting and Auditing Enforcement Releases to investigate whether the press is a watchdog for accounting fraud. Consistent with information provision, Miller ? nds that the media provides the public with information about accounting fraud. However, consistent with sensationalism, he also ? nds that the media is more likely to ? ll the watchdog role for ? rms with a larger public following, ? rms with a richer information environment, and where the story is more likely to be sensational and interesting to the public.Miller also examines whether coverage is less negative for ? rms that do more advertising, but his results do not support this interesting proposition. Media coverage of executive compensation potentially satis? es both of the demand functions identi? ed above. Multi-million dollar pay packages, and the potential scandals surrounding the wealthy i ndividuals who receive high pay, can be very entertaining. For example, there were repeated references, and many negative references, in the press about Tyco International’s purchase of a $6,000 shower curtain for CEO Dennis Kozlowski’s corporate apartment.Similarly, there were repeated references, and many negative references, about the extensive perquisites paid to General Electric’s CEO, Jack Welch, that were disclosed in divorce proceedings after his retirement. On the other hand, if readers of the press demand media coverage about executive compensation that provides reliable information about potential governance problems, we expect that the media will identify and cover individuals who have ‘‘excessive’’ pay. That is, under this hypothesis, the media will not focus simply on large pay.Nor will it focus on large single components of pay such as stock option grants and cash payouts from bonus plans, or on large option exercises. Ex cess pay, de? ned as observed compensation less a measure of expected compensation derived from standard economic determinants, is known to be a sign of poor governance (e. g. , Core, Holthausen, and Larcker, 1999), and poor governance is clearly an important issue for shareholders, employees, suppliers, and society at large.Under this hypothesis, the media will not focus simply on large total pay (or option exercises) because it recognizes that large pay packages are optimal in settings where they re? ect the quality, performance, or bargaining power of the CEO. Thus, we predict that the media makes adjustments to a given CEO’s pay level to control for ‘‘normal’’ or ‘‘reasonable’’ pay, and that coverage of excess pay will primarily have a negative tone. We test this prediction with the following hypothesis: H1. Negative media coverage of CEO compensation is positively related to excess pay.However, if the primary source of demand is not from consumers seeking reliable information, but instead from consumers seeking entertaining news about highly paid executives, we expect that the media will sensationalize its stories. The press may satisfy this demand by writing negative articles about executives with high pay, regardless of whether circumstances are such that the high pay is reasonable. In this case, we view the negative coverage as ‘‘sensationalism,’’ and predict that negative press coverage is positively related to total pay without making adjustments for an expected level of pay given the CEO’s ability and performance.This sensationalism viewpoint provides a contrasting perspective to the ‘‘informing the public’’ notion underlying Hypothesis 1. Speci? cally, the press is predicted to provide negative coverage of high total pay (which is composed of expected pay given ?rm and CEO characteristics, plus excess pay). We propose the following hypothesis to test the ‘‘sensationalism’’ prediction: H2. Negative media coverage of CEO compensation is positively related to total pay (i. e. , related to both expected pay and excess pay). ARTICLE IN PRESS J. E. Core et al. Journal of Financial Economics 88 (2008) 1–25 4 Economists generally view the grant value of stock options as a more appropriate measure of CEO optionbased pay than ex post realized proceeds from multi-year grants. For example, consider a CEO who is granted stock options each year for ? ve years. If this CEO chooses to exercise all of these options in the ? fth year, it would be inappropriate to infer that the CEO received no option compensation in the ? rst four years when the options were granted, and substantial option compensation only in the ? th year when the options are exercised. However, exercise proceeds are a simple-to-understand, and easy-to-compute measure of the value realized by executives from options. And, in f act, a measure of total payout that includes option exercises rather than option grants is frequently cited in pay surveys in the ? nancial press (e. g. , see Forbes’ annual ? rankings of highest paid CEOs). 3 A sensationalism perspective (or possibly just na vete) suggests that the press may not discriminate between the CEO’s annual pay and large dollar proceeds realized by CEOs from options.To examine this hypothesis, we test the following: H3. Negative media coverage of CEO compensation is positively related to large dollar amounts realized from stock option exercises. In addition to our analysis of negative coverage of CEO compensation, we also examine general press coverage of compensation in order to distinguish the decision of the press to cover a story from the choice to produce a story with a negative tone. We do not formulate speci? c hypotheses about general coverage of pay, but rather include these results to provide descriptive vidence on how the press cho oses which CEOs to cover. We view the role of non-negative coverage of compensation as being somewhat unclear. For example, general coverage of total pay (both expected and excess compensation) might be informative for corporate governance purposes by providing benchmarks against which to compare CEO pay across ? rms. However, general coverage of total pay might be consistent with sensationalism, where readers ? nd articles about wealthy CEOs to be entertaining, and are not particularly concerned about whether their pay level is expected or excessive. . 2. In? uence of the media on CEO compensation Dyck and Zingales (2002) argue that there are at least three ways in which media attention can affect the reputations of ? rms and their of? cers and directors, and play a role in corporate governance. First, media attention on ? rms with weak corporate governance can drive politicians and regulators to enact legislation to reform or enforce corporate law, especially if they believe that failure to do so would hurt their political careers or cause public outcry.The recent media attention given to stock option backdating, and the consequent regulatory interest, could be thought of as an example of this type of activity. 4 Second, negative media attention on managers and directors can call into question whether these individuals are good decision makers who attend to the interests of their shareholders and employers. Fama and Jensen (1983) make a similar argument that the value of managers’ and directors’ human capital depends primarily on signals about their performance as decision makers within corporations.Thus, if negative media attention damages managers’ and directors’ reputations, it can reduce the value of these individuals in the labor market. Finally, Dyck and Zingales (2002) argue that negative media attention can hurt the reputations of managers and directors within their communities and impose social costs on both them and thei r families. 5 Dyck and Zingales (2002, 2004) also provide evidence in an international setting that the media plays a role in corporate governance and in? uences ? rms’ behavior. Their primary ? ndings are that the private bene? s of control are smaller and the responsiveness of the private sector to environmental issues is greater in countries with larger newspaper circulation. 3 Executive bonuses are generally measured in compensation studies at payout values rather than ex ante values. Ideally, one would measure both option pay and bonus pay at the grant date expected value of the pay. However, although data are readily available to estimate grant date option values, it is dif? cult to estimate the expected value to the executive from a given bonus plan. 4 For example, see Heron and Lie (2007).Also see The Wall Street Journal online at: http://online. wsj. com/public/resources/documents/ info-optionsscore06-full. html, which lists corporations that have come under SEC and Justice Department scrutiny for possible option backdating. We last accessed this website on February 23, 2007. 5 In our study, we do not distinguish between these three channels of media in? uence. For our purposes, it is only important that negative media attention about CEO compensation can impose costs on ? rms and their CEOs. ARTICLE IN PRESS J. E. Core et al. Journal of Financial Economics 88 (2008) 1–25 5 Two additional papers are related to our research question. Johnson, Porter and Shackell (1997) examine changes in compensation from 1993 to 1994 for a sample of 186 CEOs to investigate whether CEO compensation is sensitive to stakeholder pressure. They ? nd that the existence of a negative tone article in any one of ? ve leading periodicals is associated with a smaller increase in total CEO pay from 1993 to 1994 and an increase in the sensitivity of cash pay to ? rm performance. However, as we demonstrate in Section 4. 2, this ? ding is confounded by strong mean reve rsion in pay among the general population of highly paid CEOs (i. e. , when a CEO has high pay in year t, there is a natural tendency for pay to be lower in year t+1). Moreover, highly paid CEOs are also more likely to receive media attention. Therefore, CEOs that draw media attention are more likely to experience mean reversion in pay, but this relation may not be causal. Finally, Louis, Joe, and Robinson (2004) provide some evidence that negative Business Week coverage regarding institutional investors’ assessment of board effectiveness in? ences boards’ actions. In particular, the boards identi? ed as worst are more likely to replace CEOs and board chairs, to separate the CEO and chair functions, and to increase the number of outside board members. However, it is not clear from these ? ndings whether the boards’ actions are due to media coverage or due to pressure from unsatis? ed institutional investors. If negative media coverage damages the reputations and human capital of managers and directors, ? rms will respond to this negative coverage by taking steps to avoid further coverage in the future.However, the nature of the responses that the ? rms might take is not clear. If the media acts as a good watchdog over executive pay, and if its negative coverage primarily serves to provide investors and the public at large with reliable information about excess pay, we expect ? rms to respond by reducing excess CEO pay. 6 An even more severe response would be to terminate the CEO to avoid future negative media coverage of that CEO and his compensation. To gain insight into the outcomes of negative media coverage, we test the following hypotheses: H4.CEO compensation declines following negative media coverage. H5. CEO turnover increases following negative media attention. As noted above, it is also possible that the media’s coverage of CEO pay serves to entertain readers with sensational stories. In this case, we expect that ? rms eit her take no action (and bear the brunt of any reputation damage) or make ‘‘cosmetic’’ adjustments to avoid negative media attention in the future. An example of a ‘‘cosmetic’’ change would be for the CEO to alter the pattern of his stock option exercises.If the media sensationalizes compensation stories by including the proceeds from option exercises in the computation of executive pay, CEOs may avoid exercising options for a few years or ‘‘smooth out’’ option exercises after the negative publicity. We test the following research hypothesis: H6. Option exercises decline following negative media attention. 3. Sample selection and variable measurement Our initial sample consists of all ExecuComp CEOs from ? scal years 1993 to 2001. For a CEO to be included in the ? nal sample, we require that we can match the ? m to the Center for Research in Securities Prices (CRSP) database, that CEO tenure is available in ExecuComp, and that the CEO is in of? ce at the end of the ? scal year. Second, we require non-missing data on CEO compensation and on the variables that we use to estimate our model for excess compensation and press coverage (described below). Finally, we require that the ? rm name and CEO name can be matched to the Factiva news source database. 7 These data requirements yield a sample of 12,090 CEO-year observations from 1993 to 2001.The sample contains 3,126 different CEOs at 2,052 different companies. The summary results in Table 1 show that the number of CEOs in the sample grows slightly over time (as ExecuComp coverage increases). Consistent with other ? ndings using ExecuComp data (e. g. , Hall and Murphy, 2002), we ? nd that CEO total compensation increases substantially over the period, and at a greater percentage growth rate than ? rm sales. In addition, there is a monotonic increase in the average level of total 6 As we discuss below, ? rms will respond to unanticipated negative coverage by reducing future pay.To the extent that ? rms anticipate the costs of negative media coverage, they will reduce current pay to avoid these costs. 7 Factiva is a joint venture between Dow Jones and Reuters. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 1–25 6 Table 1 Trends in CEO compensation and compensation-related press coverage Year N 1993 1,203 1994 1,250 1995 1,305 1996 1,316 1997 1,327 1998 1,392 1999 1,389 2000 1,443 2001 1,465 Percentage change from 1993 to 2001 Total compt (thousands) SalestA1 (millions) Number of articles per CEOt+1 Percentage ofCEOs with coveraget+1 Fraction of CEO compensation articles with negative tonet+1 (%) 1,176 1,345 1,378 1,605 1,859 1,972 2,248 2,578 2,632 124% 883 859 872 950 959 936 1,058 1,061 1,162 32% 0. 27 0. 35 0. 47 0. 85 1. 01 1. 05 0. 98 1. 12 2. 23 724% 0. 09 0. 12 0. 13 0. 21 0. 22 0. 24 0. 23 0. 26 0. 38 302% 43 32 37 31 34 32 30 28 31 A28% The data consist of ExecuComp CEOs from ? scal years 1993 to 2001. The articles on CEO compensation are obtained from the Factiva database for the year after pay was earned, that is years 1994 to 2002. N is the sample size for that year.Total Compt is the sample median salary, bonus, long-term incentive plan payouts, the value of restricted stock grants, the value of options granted during the year, and any other annual pay (in $000s) in the ? scal year shown. SalestA1 is the sample median ? rm sales for year tA1. Number of Articles per CEO is the sample average total number of articles written about the CEO’s compensation in the Factiva database in the ? scal year t+1 after pay was earned. Percentage of CEOs with Coveraget+1 is the percentage of CEOs for whom the press covers CEO compensation.Fraction of CEO compensation articles with negative tonet+1 is the total number of negative articles written about the CEOs’ compensation (using the algorithm described in the text to measure negative tone) as a percentage of the total number of articles written about the CEOs’ compensation. press coverage of CEO pay and in the proportion of CEOs who receive coverage. However, conditional on receiving coverage, the proportion of coverage that is negative is relatively constant over time (we describe the measurement of these publicity variables below). . 1. Measurement of press coverage and negative press coverage We measure publicity about CEO compensation by gathering all articles related to the CEO’s compensation from the Factiva database in the ? scal year after the compensation was earned (for example, for a ? rm with a ? scal year ending June 30, 2001, where CEO compensation is typically disclosed in the proxy statement in August or September of 2001, we would match articles published during the next ? cal year ended June 30, 2002). We include all major news and business publication sources on Factiva with the exception of the press release wires through which ? rms initi ate the release of information, such as PR Newswire, FD Newswire, and Business Wire. Similar to Francis, Huang, Rajgopal, and Zang (2004), we use the company identi? er in Factiva to locate articles covering a speci? c ? rm. We then locate articles written about the CEO’s compensation through the following search: CEO NAME or CEO NAME’S) near20 (compensation or salary or bonus or option* near10 grant or option* near10 receiv* or option* near10 exercis* or restricted stock or (pay near5 00) or (was paid near5 00) or (pay near5 million*) or (was paid near5 million*)) and (CEO NAME or CEO NAME’S) same (compensation or salary or bonus or option* near10 grant or option* near10 receiv* or option* near10 exercis* or restricted stock or (pay near5 00) or (was paid near5 00) or (pay near5 million*) or (was paid near5 million*)) The objective of this free text search is to identify all articles in which the CEO’s compensation is described in either a positive, nega tive, or neutral fashion. We count each article as a single observation, regardless of the number of times a CEO’s name or compensation is mentioned in the article. 8 As described in the Factiva Inside-Out Reference Guide, ‘‘near20’’ locates words within 20 words of the CEO’s name and ‘‘same’’ locates words in the same paragraph as the CEO’s name. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 1–25 7 To measure negative publicity about CEO compensation, we iteratively develop a Perl program to process the text of each article about CEO compensation to assess whether the article has a negative tone. The input into the Perl program consists of a set of negative tone keywords and phrases.This set of keywords and phrases was developed from manually reading approximately 200 articles about CEO compensation, where the articles included both randomly selected ? rms and ? rms widel y known to have received negative publicity (e. g. ; Tyco international and Citigroup). 9 In order to validate and improve the Perl algorithm, we applied the search string to articles for a random sample of 50 CEOs, and we allowed the algorithm to classify the articles as having either a negative or non-negative tone. We then read these same articles and manually assigned each as having either a negative or non-negative tone. To identify errors in the Perl algorithm, we compared the two sets of coded negative tones using a contingency table of manual partitioning versus computer partitioning. Based on the classi? ation errors, we adjusted the keyword search to improve the ? t of the search string within this 50 CEO sample. To check the validity of these adjustments, we applied the improved negative tone Perl algorithm string to articles for an independent random sample of 50 CEOs. We again read and partitioned the articles for this second random sample and constructed another contin gency table to assess accuracy. This manual partitioning identi? ed 18% (82%) of the articles as negative tone (non-negative tone). The automated Perl keyword search correctly identi? ed 75% of the non-negative tone articles and 54% of the negative tone articles. Further, the manual partitioning identi? ed 25% (75%) of the ? m-years as having at least one negative tone article (no negative tone article). The Perl algorithm correctly identi? ed 63% of the ? rm-years without negative tone articles and 77% of the ? rm-years with negative tone articles. The fact that the classi? cation rates are less than 100% con? rms that there is measurement error in our search string (in Section 4. 1, we show in sensitivity analysis that this measurement error does not appear to affect our inference). We use the revised search string to identify negative tone articles for the full sample of CEO compensation articles (‘‘NEGATIVE’’). Appendix A shows our ? nal negative tone s earch string.In order to provide some descriptive information about our search string, Appendix B contains excerpts from two articles about the 2001 compensation package for E*Trade Financial Corporation’s CEO, Christos Cotsakos. Both articles were published on May 1, 2002. The ? rst article from The New York Times reports the salary, bonus, equity, and other components of Cotsakos’ pay package without taking a view as to whether the pay package is excessive or unreasonable. We classify this article as having a non-negative tone. The second article from The Wall Street Journal also reports the components of Cotsakos’ pay package but takes a negative tone by calling the compensation an ‘‘outsize package’’ and referring to Cotsakos as the ‘‘highestpaid CEO on Wall Street. ’ The keyword ‘‘outsize’’ within a few words of ‘‘salary’’ and/or ‘‘bonus,’â₠¬â„¢ and the keyword ‘‘highest’’ within a few words of ‘‘pay’’ are both triggers for our keyword search that classify this article as having a negative tone. However, note the title of the second article, ‘‘No Discount: E*Trade CEO Gets Pay Deal of $80 Million. ’’ Although this title clearly has a negative tone, the ‘‘play on words’’ nature of the text prevents us from ? agging this title as negative tone with our Perl search string. In this case, the body of the article is suf? cient to categorize the article as negative tone. We acknowledge that it is dif? cult to construct a completely accurate search string and that our negative tone classi? cation inevitably measures true negative tone with error. However, a sensitivity analysis summarized below in Section 4. suggests that our inference using the negative publicity measure in the full sample is not induced by measurement erro r. The time-series statistics on the number of compensation-related articles for our sample CEOs over the period 1994 to 2002 is reported in Table 2 (Panel A). 10 The number of compensation-related articles grew rapidly from 325 to 3,263 (Column 3), an increase of about 900%. However, at the same time, the total number of articles across all topics grew from 216,677 to 825,887 (Column 1), an increase of about 280%. Similarly, the number of news sources covering CEO compensation grew from 62 to 470 (Column 2), a rise of 9 As illustrated in Appendix A, the ? al negative tone search string consists of approximately 150 keywords and phrases, such as ‘‘high pay,’’ ‘‘excess pay,’’ and ‘‘generous options. ’’ For most of the phrases, we allow for the possibility that the keywords do not immediately precede or follow each other, and may be several words apart in the text. We also allow for different characterizatio ns of the same word (e. g. , ‘‘large bonus,’’ ‘‘larger bonus,’’ ‘‘and largest bonus’’). 10 Since our sample data on CEO compensation covers the time period from 1993 to 2001, the articles for the year following the compensation are collected from 1994 to 2002. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 1–25 8 Table 2Annual data on the source of articles on CEO compensation Panel A. Trends in Articles about CEO Compensation Year Number of Number of articles–all sources–CEO topics compensation articles (1) (2) 1994 1995 1996 1997 1998 1999 2000 2001 2002 Percentage change from 1994–2002 216,677 196,032 178,378 233,665 303,850 543,058 514,747 542,096 825,887 281% 62 97 131 234 244 279 308 323 470 658% Panel B. Major sources and tone of coverage Type of source Source and Their Sources Number of CEO compensation articles (3) 325 439 609 1,117 1,346 1,465 1,362 1,616 3,263 904% Fraction of CEO compensation articles with negative tone (4) Number of WSJ articlesFraction of WSJ articles with negative tone (5) (6) 43% 32% 37% 31% 34% 32% 30% 28% 31% A28% 58 74 112 104 122 149 44 81 210 262% 48% 45% 43% 38% 39% 38% 25% 25% 40% A17% Number of CEO compensation articles Number of negative tone CEO compensation articles Fraction of CEO compensation articles with negative tone Newswire AP Dow Jones Reuters Sub-total 235 717 1,271 2,223 75 137 279 491 32% 19% 22% 22% Newspaper Chicago Sun-Times Financial Times New York Times The Globe And Mail The Washington Post USA Today Wall Street Journal Sub-total 110 252 260 190 123 49 954 1,938 29 99 88 49 49 22 367 703 26% 39% 34% 26% 40% 45% 38% 36% Magazine Barron’s Business WeekForbes Fortune Sub-total 44 43 43 40 170 27 21 15 17 80 61% 49% 35% 43% 47% The sample consists of ExecuComp CEOs from ? scal years 1993 to 2001. The articles on CEO compensation are obtained from the Factiva data base for years 1994 to 2002, including the source of each article. Number of articles—all topics is the total number of articles for all sample ? rms for each year. Number of sources—CEO compensation articles is the total number of different publications that printed an article about CEO compensation for each year. Number of CEO compensation articles is the total number of articles about CEO compensation for all sample ? rms for each year.Fraction of CEO compensation articles with negative tonet+1 is the total number of negative articles written about the CEOs’ compensation (using the algorithm described in the text to measure negative tone) as a percentage of the total number of articles written about the CEOs’ compensation. Number of WSJ articles is the total number of The Wall Street Journal (WSJ) articles on CEO compensation for our sample, and fraction of compensation articles with negative tonet+1 is the percentage of WSJ articles with negative tone (using the algorithm described in the text to measure negative tone). Number of negative tone WSJ articles is the number of articles where negative tone is assessed using the algorithm described in the text. ARTICLE IN PRESS J. E.Core et al. / Journal of Financial Economics 88 (2008) 1–25 9 about 660%. To explore whether the growing number of compensation-related articles is primarily due to the growth in the number of articles and sources, we present time-series data for The Wall Street Journal, one of the largest sources. As might be expected, The Wall Street Journal released a growing number of compensation-related articles over this period. The total number of articles for this source was 210 in 2002 compared to 58 in 1994 (Column 5), an increase of about 260%. Thus, the increase in articles does not appear to be simply caused by the increase in sources covered by Factiva.The fraction of negative tone compensation articles across all sources has remained a fairly constan t fraction of total articles, with a yearly average of about 33% (Column 4). The last column in Table 2 (Panel A) shows that a somewhat larger fraction of the compensation articles written by The Wall Street Journal are negative, with a yearly average of about 38%. This suggests that some news agencies, as a matter of strategy or reporting orientation, are more likely than others to publish compensation articles with a negative tone. To explore compensation coverage across news sources, we tabulate article counts separately for many of the major sources in Table 2 (Panel B). We classify major news sources as newswires, newspapers, or magazines.The main newswires, Associated Press, Dow Jones and Reuters, provide the greatest number of compensation-related articles, but have the lowest fraction of negative tone compensation articles, at about 22%. This latter ? nding is perhaps not surprising given that newswires tend to capture company press releases. The major newspapers (The Wall S treet Journal, The New York Times, Financial Times, etc. ) supply the second highest fraction of negative tone articles, at 36%. The largest fraction of articles with a negative tone, at about 47%, is written by magazines (Fortune, Business Week, etc. ). This ranking of negative tone coverage potentially re? cts a greater tendency by the papers and magazines to sensationalize stories in order to sell copies, presumably due to differences in their subscriber base and marketing techniques. In the ? rst two rows of Table 3, we provide descriptive data on compensation-related articles by CEO-year. In this table, and in our data analysis in Tables 6–9, we mitigate the in? uence of outliers by setting the upperand lower-most percentiles for our variables equal to the values at the 1st and 99th percentiles in each year, respectively. Media coverage is skewed, with the median CEO receiving no articles about his compensation in a given year. In 21. 6% of the CEO-years, at least one ar ticle was published about the CEO’s compensation, and the 10% of the CEO-years with the greatest media coverage received at least two articles.Negative media coverage is skewed to an even greater extent, with only 10. 0% of the CEO-years receiving at least one compensation article with a negative tone. In 1% of the CEO-years, at least four negative tone articles were written about the CEO’s compensation. For the 2,607 observations in which the CEO has some coverage of his compensation, 47% of the CEOs have at least some negative-toned coverage, and 28% of the compensation articles have a negative tone. 3. 2. Control variables and model of expected press coverage Our main objective is to better understand the determinants of press coverage about executive compensation, and in particular, negative coverage about executive compensation.The results in Tables 1 and 3 reveal that only a subset of CEOs attracts press coverage on their reported compensation. Among the CEOs tha t attract coverage, there is substantial variation in the degree of negative comments about their pay, as proxied by the proportion of the coverage that is negative. To address this empirically, we ? rst model the media’s choice of whether to cover a CEO with the following probit model: E? Prob? Coverageit? 1 ? F? go ? g1 Compensationit ? g2 Controls?. (1) For those CEOs who receive coverage, we model the proportion of the coverage that is negative with the following general linear model: E ? % of Negative Articlesit? 1 jCoveraget? 1 ? ? G? bo ? b1 Compensationit ? b2 Controls?. (2) The dependent variable in Eq. 2) is a fraction bounded between 0 and 1. We follow Papke and Wooldridge (1996) and estimate Eq. (2) using a general linear model (GLM) in which the link function is logistic. Papke ARTICLE IN PRESS 10 J. E. Core et al. / Journal of Financial Economics 88 (2008) 1–25 Table 3 Descriptive statistics Variable Mean Std Dev P1 Q1 Median Q3 P90 P99 Number of article st+1 Coveraget+1 Number of negative articlest+1 % of negative articlest+1 Number of ? rm articlest+1 Total compt Total payoutt Tenuret S&P500t SalestA1 Bk/MkttA1 RETt ROAt 0. 81 0. 22 0. 23 0. 28 293. 85 3,746 3,122 7. 60 0. 33 3,280 0. 65 0. 20 0. 04 2. 79 0. 41 0. 92 0. 37 669. 29 6,237 6,587 7. 45 0. 47 6,296 0. 7 0. 61 0. 10 0. 00 0. 00 0. 00 0. 00 1. 00 189 117 0. 08 0. 00 17 0. 11 A0. 75 A0. 37 0. 00 0. 00 0. 00 0. 00 52. 00 904 659 2. 17 0. 00 353 0. 44 A0. 13 0. 01 0. 00 0. 00 0. 00 0. 00 116. 00 1,758 1,246 5. 33 0. 00 980 0. 66 0. 11 0. 05 0. 00 0. 00 0. 00 0. 50 244. 00 3,822 2,736 10. 58 1. 00 2,989 0. 86 0. 38 0. 09 2. 00 1. 00 1. 00 1. 00 599. 00 8,334 6,675 16. 92 1. 00 8,775 0. 98 0. 76 0. 14 16. 00 1. 00 5. 00 1. 00 3,856. 00 32,909 37,109 35. 92 1. 00 34,654 1. 20 2. 34 0. 25 This table presents descriptive statistics for the variables used in the subsequent analyses. The sample consists of 12,090 observations for ExecuComp CEOs from ? cal years 1993 to 2001. The a rticles on CEO compensation are obtained from the Factiva database for years 1994 to 2002. Number of Articlest+1 is the total number of articles written about the CEO’s compensation. Coveraget+1 is an indicator variable for whether the press covers CEO compensation. Number of Negative Articlest+1 is the total number of negative tone articles written about the CEO’s compensation, where negative tone is assessed using the algorithm described in the text. % of Negative Articlest+1 is Number of Negative Articlest+1 divided by Number of Articlest+1. This variable is tabulated only for the 2607 observations with Coveraget+1 greater than zero.Number of Firm Articlest+1 is the number of articles (all topics) written about the ? rm during year t+1. Total Compt is salary, bonus, long-term incentive plan payouts, the value of restricted stock grants, the value of options granted during the year, and any other annual pay for the CEO in year t. Total Payoutt is salary, bonus, long- term incentive plan payouts, the value of restricted stock grants, the proceeds from options exercised during the year, and any other annual pay for the CEO in year t. Tenuret is the CEO’s tenure in years at the end of year t. S&P500t is one if the ? rm is in the S&P500 at the end of year t, and zero otherwise. SalestA1 (in millions of dollars) is ? rm sales for year tA1.Bk/MkttA1 is (book value of assets)/(book value of liabilities+market value of equity) at the end of year tA1. RETt is the ? rm’s return for the year t. ROAt is income before extraordinary items divided by average total assets for the year t. and Wooldridge show that this estimator is consistent when the dependent variable is a proportion ranging from 0 to 1, and when there may be a mass of observations at 0 and 1. 11 We note that in these models, coverage and negative coverage are measured in the ? scal year t+1 following determination of compensation in year t. 12 This lessens the chance of a simulta neity bias, in which realized negative coverage causes reductions in realized pay. However, as we discuss further below, if ? ms anticipate that future negative coverage can be very costly, they may reduce current pay in order to avoid future coverage. We expect that publicity about CEO pay derives not only from the magnitude and components of CEO pay, but also from general determinants of press coverage. Therefore, we control for the determinants of publicity that are not directly related to CEO compensation. To our knowledge, an accepted model for the expected level of press coverage related to CEO pay does not exist. As a starting point, we include log(Number of Firm Articles) as a control variable for general ? rm-speci? c press coverage across all topics, where log(Number of Firm Articles) is measured for each ? m-year as the natural logarithm of the total number of articles that mention the ? rm across all major news and business publication sources on Factiva, excluding newsw ires that primarily carry company-initiated 11 We obtain the same inference if we instead estimate a linear model for the fraction using ordinary least squares (OLS). If we estimate an OLS model for the fraction and include a Heckman (1979) correction for the predictability of the coverage decision in Eq. (1), we obtain the same inference. The Heckman correction is not signi? cant in any of our models, which suggests that results are robust to ignoring the selection in the second-stage model. 12Base salary, option and restricted stock grants, and the majority of compensation are determined and paid during the ? scal year. The one exception is cash bonuses, which are determined early the next ? scal year after results are known. However, the bonus amounts tend to be small compared to option and restricted stock grants. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 1–25 11 disclosures. 13 We also expect that ? rm size is a key determinant of publ icity (see Jensen, 1979; Miller, 2006). Press coverage of large ? rms will have broader appeal as these ? rms are more likely to be household names and to have larger customer and shareholder bases. At the same time, large ? rms may e able to impose costs on media ? rms that cover them in a negative light. These costs may come in the form of withholding valuable news stories or withholding advertising dollars. 14 We use two variables to control for ? rm size and likelihood of broad appeal: the logarithm of each ? rm’s sales revenues (‘‘Sales’’) and membership in the S&P 500 (‘‘S&P500’’). Jensen (1979) argues that the media is more likely to write a negative article when the individual under scrutiny has lost popularity with the public. We include recent ? rm performance in our regressions to control for the possibility that the CEO has fallen out of favor with the public.We measure ? rm performance using contemporaneous and lagged stock returns obtained from CRSP (‘‘RET’’) and accounting performance obtained from Compustat (‘‘ROA’’) which is computed as net income before extraordinary items divided by average assets. To allow for the possibility that press coverage is more sensitive to negative performance than to positive performance, we include separate variables for negative (‘‘NEG’’) and positive (‘‘POS’’) stock return and accounting performance. 15 We also include CEO tenure (‘‘Tenure’’) as a control variable because we expect that it may take time for the press to become interested in covering a new CEO.Finally, we expect that press coverage varies across different calendar years and sectors of the economy. To capture this effect we include indicator variables for two-digit SIC code and calendar year in our model. 3. 3. Measurement of compensation variables and excess compensation As described in Section 2, we expect that publicity may be in? uenced by total annual compensation. We measure Total Comp as the sum of salary, bonus, long-term incentive plan payouts, the value of restricted stock grants, the value of options granted during the year, and any other annual pay. This is the most common measure of total pay in the academic literature.We hypothesize in Hypothesis 3 that press coverage could also be affected by realized option exercise proceeds as opposed to option grant value. To test this hypothesis, we construct a measure of total realized payouts to the CEO, Total Payout, computed as the sum of salary, bonus, long-term incentive plan payouts, value of restricted stock grants, proceeds from options exercised during the year, and any other annual pay. This measure of total realized payout is common in the media (e. g. , see Forbes’ annual rankings of highest paid CEOs). 16 We obtain our compensation data from ExecuComp. Descriptive statistics for the compensation variables are presented in Table 3. The mean Total Comp is $3. 7 million, and the mean Total Payout is $3. 1 million.However, the values in the extreme percentile of Total Payout are somewhat greater than those for Total Comp. In addition to these raw compensation variables, we also construct a measure of excess CEO compensation to investigate whether the media appears to make adjustments for a ‘‘normal’’ level of compensation when writing an article with a negative tone. We measure excess compensation as actual compensation minus expected compensation. Our benchmark model for expected compensation follows prior research in this area (e. g. , Smith and Watts, 1992; Core, Holthausen, and Larcker, 1999; Murphy, 1999), and is obtained by regressing the natural logarithm (Log) of compensation on proxies for economic determinants of CEO compensation, such as ? m size, growth opportunities, stock return, accounting return, and indu stry controls: Log? Compensationit ? ? a ? xit b ? uit 13 (3) In the 68 ? rm-years with no articles on Factiva, we set Number of Firm Articles equal to one to avoid losing the observations. The costs of withholding valuable news from the press may apply not only to large ? rms but also to growing ? rms with rich information environments that are engaging in substantial investments, acquisitions, or product developments. At the same time, growth ? rms may also have broader appeal to the public than stable or declining ? rms. Our regressions are robust to including book-to-market as a control variable for ? rms’ investment opportunities. 15Dial and Murphy (1995) raise the possibility that unpopular operational decisions draw media attention. For example, in their case study of General Dynamics, the press strongly criticized the CEO for receiving a bonus payout after the stock price responded positively to his decision to lay off thousands of employees. We examine this possibili ty in Section 4. 3. 16 Total Payout also has preferable econometric properties as compared to using only the proceeds from option exercises. Speci? cally, an option exercise variable has a large mass at zero, whereas Total Payout has a positive value for all cases. 14 ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 1–25 12 here Compensationit is Total Comp or Total Payout as described in Section 3. 3, and xit consists of Log(Tenure)it, Log(Sales)itA1, S&P500itA1, Book-to-marketitA1, RETit, RETitA1, ROAit, ROAitA1, and Industry controlsit. Book-to-market is (book value of assets)/(book value of liabilities+market value of equity), and the other independent variables are de? ned above. We estimate Eq. (3) using OLS. We estimate Expected Compensation by exponentiating the expected value of Eq. (3). We compute Residual(Compensation) by estimating expected Compensation and subtracting it from Compensation: Residual? Compensationit ? ? Compensationit A Expected Compensationit . (4) We compute %Residual Compensation as: Residual? Compensationit ? ? log? Compensationit ? A log? Expected Compensationit ?. (5) Although we estimate Eq. (2) using annual cross-sectional regressions, in the interest of brevity, we present the results of a pooled cross-section, time-series estimation of Eq. (2) with year indicators in Table 4. Consistent with prior research, we ? nd that all measures of compensation exhibit the expected positive associations with ? rm size, growth opportunities, and stock returns. The coef? cient estimates for the annual regressions are substantively similar to those reported in Table 4. Table 4 Regressions for compensation variables Dependent variableIndependent variable Log(total compt) Log(total payoutt) Log(tenure)t A0. 02 (A0. 80) 0. 42*** (17. 96) 0. 12** (2. 30) A0. 99*** (A9. 76) 0. 27*** (12. 84) 0. 16*** (6. 71) A1. 00*** (A5. 87) A0. 45** (A2. 07) 0. 4290 0. 13*** (6. 93) 0. 40*** (18. 74) 0. 14** (2. 83) A0. 6 9*** (A6. 80) 0. 31*** (11. 64) 0. 26*** (19. 23) 0. 40* (1. 98) A0. 51* (A1. 72) 0. 4274 Log(sales)tA1 S&P500t Bk/MkttA1 RETt RETtA1 ROAt ROAtA1 R2 This table presents results of pooled cross-sectional OLS regressions for the logarithms of two measures of CEO compensation and the economic determinants of compensation. The sample consists of 12,090 observations for ExecuComp CEOs from ? cal years 1993 to 2001. Total Compt is salary, bonus, long-term incentive plan payouts, the value of restricted stock grants, the value of options granted during the year, and any other annual pay for the CEO in year t. Total Payoutt is salary, bonus, long-term incentive plan payouts, the value of restricted stock grants, the proceeds from options exercised during the year, and any other annual pay for the CEO in year t. Log(Tenure)t is the logarithm of the CEO’s tenure in years at the end of year t. Log(Sales)tA1 is the logarithm of ? rm sales for year tA1. S&P500t is one if the ? rm is in th e S&P500 at the end of year t, and zero otherwise.Bk/MkttA1 is (book value of assets)/(book value of liabilities+market value of equity) at the end of year tA1. RETt is the ? rm’s return for year t. RETtA1 is the ? rm’s return for year tA1. ROAt is income before extraordinary items divided by average total assets for year t. ROAtA1 is income before extraordinary items divided by average total assets for year tA1. Fixed effects for year and 2-digit SIC codes are included in the regressions, but not tabulated. T-statistics using Huber-White robust standard errors are presented in parentheses below coef? cient estimates. *, **, and *** indicate two-tailed statistical signi? cance at 10, 5, and 1 percent levels, respectively. ARTICLE IN PRESS J. E. Core et al. Journal of Financial Economics 88 (2008) 1–25 13 3. 4. Illustrations from the sample Table 5 (Panel A) lists the ten CEOs with the greatest amount of coverage (i. e. , greatest number of articles) about their compensation in any given year during our sample period. The compensation and ? rm characteristic variables are provided for the year prior to the press coverage variables (thus, the year t+1 designation on the press variables). These CEOs had between 87 and 320 compensation-related articles, as well as very substantial negative press coverage, as measured by either fraction of articles that are negative, or number of articles that are negative.The percentage of negative articles in this group of CEOs ranges from 32% to 73%, whereas the sample average is 28% (see Table 3). CEOs with a large number of compensation-related articles tend to manage large, poor performing ? rms. Seven out of the ten ? rms have market capitalization of $20 billion or more, and three-year market-adjusted returns are negative for all of the ten ? rms. Dennis Kozlowski of Tyco International received the most compensation-related articles in 2002 with 320, as well as the most negative articles (57% or 183 neg ative articles). His total compensation in 2001 was $77. 8 million with substantial estimated excess compensation. 17 Five of these ten CEOs had positive excess total pay in the year prior to the publicity.However, excess compensation during the prior year was not the obvious instigator of the press coverage for some of these CEOs. For example, Sanford Weill, CEO of Citigroup, received 178 compensation-related articles (40% of which were negative), but had negative excess total pay. At the same time, Mr. Weill had a combination of fairly large raw compensation at $16. 6 million, substantial option exercises, poor three-year market-adjusted stock return performance (A44%), and a history of prior media attention for being among the higher paid CEOs. Similarly, Carly Fiorina, CEO of Hewlett Packard, received 168 articles in 2002 (32% of which were negative), but had lower than expected pay in 2001.However, although she had negative excess compensation, Ms. Fiorina was the recipient of considerable criticism about Hewlett Packard’s sub-par performance as evidenced by Hewlett Packard’s market-adjusted stock return of A68% from 2000 to 2002. Another interesting example is Thomas Siebel of Siebel Systems, Inc. , who drew 132 articles and 65 negative articles about compensation in 2003, and yet received no pay in 2002. However, Mr. Siebel exercised a substantial dollar amount of options in 2002 (as well as in 2001), and also received a very large grant of new options in 2001. Siebel Systems also had extremely poor three-year market-adjusted stock price performance at A123%.Table 5 (Panel B) lists the ten CEOs with the greatest percentage of negative articles in any given year during our sample period (i. e. , the number of negative articles about compensation divided by the total number of articles about compensation). We restrict our attention to ? rms that have at least four articles on CEO compensation, because there are many CEOs with only one or two compensationrelated articles, and where 100% of these articles are negative. The ? rms in Panel B are generally much smaller than those reported in Panel A which suggests that the total volume of press coverage is related to ? rm size. The results suggest a mixture of explanations for a high percentage of negative articles.The CEOs at Bear Stearns, EOG Resources, and Warnaco Group received very large total and residual compensation, and the CEO of Micron received a large stock option payout in the year of negative press coverage. The CEOs of Hillenbrand Industries, Nike, and Federal-Mogul received relatively modest levels of total compensation, and the negative press coverage seems to be due to their large negative marketadjusted returns. The explanations for Delphi Financial and Manpower are not clear, as both of these companies have low relative total compensation, no stock option payouts, and reasonable market-adjusted returns. It is also useful to examine some features of negat ive publicity for CEOs selected on the basis of large excess compensation.For example, an examination of the ten CEOs in 2001 with the greatest excess total direct compensation indicates that eight out of the ten CEOs received some negative publicity in 2002 (not tabulated). Interestingly, some of these excessively paid CEOs received no media attention. Greg Reyes, CEO of Brocade Communications, received about $370 million in total direct compensation, primarily due to a grant of more than 10 million stock options. However, even though he received the greatest amount of excess pay, Mr. Reyes received no negative publicity (although he was subsequently accused of 17 In Table 4, we do not winsorize any of the variables being shown. ARTICLE IN PRESS J. E. Core et al. / Journal of Financial Economics 88 (2008) 1–25 14Table 5 Panel A. CEOs with greatest number of articles Company name CEO last name Year Number of articlest+1 % of negative articlest+1 (%) Tenure as CEO (years)t Tot al compt Residual (total comp)t Total payoutt Three-year mkt-adj stock returnt (%) Market value of equity ($mil)t Tyco International AMR Corp. Citigroup Inc. Hewlett-Packard Co. Siebel Systems Delta Air Lines Qwest Commun. Disney (Walt) Co Disney (Walt) Co. Disney (Walt) Co. Kozlowski Carty Weill Fiorina Siebel Mullin Nacchio Eisner Eisner Eisner 2001 2002 2002 2001 2002 2002 2001 1996 1997 1998 320 250 178 168 132 121 116 109 88 87 57 54 40 32 49 73 35 50 55 38 9. 2 4. 6 4. 9 2. 3 . 4 5. 3 4. 9 12. 0 13. 0 14. 0 77,767 10,171 16,556 18,121 0 14,039 74,115 202,185 10,654 5,768 55,390 2,484 A18,313 A11,533 A6,994 6,901 57,349 192,527 A233 A9,244 42,177 1,109 13,367 1,248 34,586 4,870 101,995 8,654 10,654 575,596 A85 A111 A44 A68 A123 A120 A106 A7 A45 A74 88,064 1,030 180,901 32,633 3,600 1,493 23,506 42,631 54,099 52,552 Panel B. CEOs with greatest percentage of negative articles Company name CEO last name Year Number of articlest+1 % of negative articlest+1 (%) Tenure as CEO (years) t Total compt Residual (total comp)t Total payoutt Three-year mkt-adj stock returnt (%) Market value of equity ($mil)t Hillenbrand IndustriesNike Inc. Delphi Financial Grp. Bear Stearns Federal-Mogul Micron Technology Bear Stearns EOG Resources Inc. Manpower Inc. Warnaco Group Inc. Hillenbrand Knight Rosenkranz Cayne Miller Appleton Cayne Hoglund Fromstein Wachner 1998 1997 2002 1995 2000 1996 1998 1994 1995 1996 12 10 9 7 6 5 5 4 4 4 100 100 100 100 100 100 100 100 100 100 9. 6 29. 3 15. 6 1. 9 0. 3 1. 9 4. 9 7. 3 6. 9 9. 3 3,887 1,679 1,500 8,472 880 4,251 27,176 13,365 3,726 20,490 A51 A4,256 A1,327 4,649 A1,960 1,074 16,260 11,477 A559 17,301 2,936 1,679 1,500 9,384 426 4,847 27,176 20,114 3,726 9,434 A102 A56 A1 A26 A149 4 28 4 28 A32 3,793 13,202 783 2,508 163 4,750 6,663 3,000

Acid Rain Essays (1959 words) - Inorganic Solvents, Acid Rain

Acid Rain INTRODUCTION: Acid rain is a great problem in our world. It causes fish and plants to die in our waters. As well it causes harm to our own race as well, because we eat these fish, drink this water and eat these plants. It is a problem that we must all face together and try to get rid of. However acid rain on it's own is not the biggest problem. It cause many other problems such as aluminum poisoning. Acid Rain is deadly. WHAT IS ACID RAIN? Acid rain is all the rain, snow, mist etc that falls from the sky onto our planet that contains an unnatural acidic. It is not to be confused with uncontaminated rain that falls, for that rain is naturally slightly acidic. It is caused by today's industry. When products are manufactured many chemicals are used to create it. However because of the difficulty and cost of properly disposing of these products they are often emitted into the atmosphere with little or no treatment. The term was first considered to be important about 20 years ago when scientists in Sweden and Norway first believed that acidic rain may be causing great ecological damage to the planet. The problem was that by the time that the scientist found the problem it was already very large. Detecting an acid lake is often quite difficult. A lake does not become acid over night. It happens over a period of many years, some times decades. The changes are usually to gradual for them to be noticed early. At the beginning of the 20th century most rivers/lakes like the river Tovdal in Norway had not yet begun to die. However by 1926 local inspectors were noticing that many of the lakes were beginning to show signs of death. Fish were found dead along the banks of many rivers. As the winters ice began to melt off more and more hundreds upon hundreds more dead fish (trout in particular) were being found. It was at this time that scientist began to search for the reason. As the scientists continued to work they found many piles of dead fish, up to 5000 in one pile, further up the river. Divers were sent in to examine the bottom of the rivers. What they found were many more dead fish. Many live and dead specimens were taken back to labs across Norway. When the live specimens were examined they were found to have very little sodium in their blood. This is typical a typical symptom of acid poisoning. The acid had entered the gills of the fish and poisoned them so that they were unable to ext ract salt from the water to maintain their bodies sodium levels. Many scientist said that this acid poising was due to the fact that it was just after the winter and that all the snow and ice was running down into the streams and lakes. They believed that the snow had been exposed to many natural phenomena that gave the snow it's high acid content. Other scientists were not sure that this theory was correct because at the time that the snow was added to the lakes and streams the Ph levels would change from around 5.2 to 4.6. They believed that such a high jump could not be attributed to natural causes. They believed that it was due to air pollution. They were right. Since the beginning of the Industrial revolution in England pollution had been affecting all the trees,soil and rivers in Europe and North America. However until recently the loses of fish was contained to the southern parts of Europe. Because of the constant onslaught of acid rain lakes and rivers began to lose their ability to counter act their affects. Much of the alkaline elements; such as calcium and limestone; in the soil had been washed away. It is these lakes that we must be worried about for they will soon become extinct. A fact that may please fishermen is that in lakes/rivers they tend to catch older and larger fish. This may please them in the short run however they will soon have to change lakes for the fish supply will die quickly in these lakes. The problem is that acid

Why car seat belts should be a law Essay Example | Topics and Well Written Essays - 1000 words

Why car seat belts should be a law - Essay Example Research suggests that making seat belt use a primary offense does not result in reduced death rates, enforcement of law to wear seat belts in the car can adversely influence behavior, and risk is an individual factor, hence enforcement of seat belts only affect the external behavior posing higher risk to others including cyclists, pedestrian and other drivers. Proponents of imposing penalties for not using seat belts claim that increasing penalties increases the usage of seat belts, studies suggest otherwise. Even though states treating seal belt usage a primary offense reported that seat belt was used 74% of the times and those as a secondary offense reported usage at 61% times, these data do not prove that usage of seat belts has led to decreased traffic injuries and fatalities. No jurisdiction that has passed a seat belt law has shown evidence of a reduction in road accident deaths (Kopel, 1999). It is important to note that some people wear seat belt with or without enforcement of law. In 1996 in New York, when non usage of seat belt was a primary offense, it was observed that despite 74% usage, 46% of its fatally injured car occupants were wearing seat belts. In Iowa, with 75% usage of seat belts 50% of its fatally injured car occupants were wearing seat belts. Wyoming had no primary law enforcing seat belt usage but 72% usage was re ported. Thus, these data amply suggest that imposing penalties and treating seat belt usage a primary offense has not known to reduce accidents. Secondly, people would use seat belt even if no law is enforced. Enforcement of law to use seat belt in the car can adversely affect human behavior. In a study, when subjects who normally did not wear seat belts, were asked to do SO, they were found to drive faster, followed closely and braked later (Kopel). People who are naturally cautious would wear seat belts voluntarily. When reckless people are forced to wear seat belts, they drive more recklessly. According to Robertson,

Literature Review for Woolworths Research Essay - 1

Literature Review for Woolworths Research - Essay Example Marketing scholars and practitioners have long agreed that the factors which determine a customer’s decision to shop in a specific store are integral as it not only where customers choose to shop, but also what they shop and how much they buy. The key factors identified that influence customer’s store choice behavior include store price, store assortments, convenience in location, availability, and a variety of merchandise, value added store services, personal interaction, physical appearance and promotional activities in such stores. This factor comes third after location convenience and low prices. Assortment size may be in terms of a broad ray of products and the retail price formats which may be either promotional pricing format (Hi-Lo) where prices change with changing seasons, or it may be everyday price format (EDLP) where prices are lower than competitors. Indeed in their analysis of price formats on store patronage, Bell, Ho and Tang (1998) showed that customer s often traded off between lower prices and convenience where they would most likely visit a Hi-Lo store when they are purchasing less, and hence convenience beets price or they would most likely choose EDLP stores when they are purchasing more irrespective of the location of the store, hence low price beats convenience. Briesch, Chintagunta, and Fox (2009) affirm this by showing that customers would be willing to travel a considerable distance to stores that have a wide assortment of products and low price to make their purchases.

Portfolio Analysis Assignment Example | Topics and Well Written Essays - 3250 words

Portfolio Analysis - Assignment Example Portfolio analysis includes all efforts made by a firm towards the achievement of the best trade off between returns and risk tolerance. Portfolio analysis also involves the quantification of the financial and operational impact of a given portfolio, and it is quite vital as it helps firms to evaluate the performance of their investments and the effective timing of its returns. Each portfolio consists of sub-unit. For example, the financial sector can be made up of several banks or the Airline industry can be made up of several airline companies. The analysis of each portfolio helps an investor in making a decision when investing. Most likely, a rational investor will choose the best portfolio and screen out the ones that are not essential based on objective criteria. A good portfolio is characterized by high returns on investment (Reilly and Brown, 2011). Portfolio analysis requires subjective judgment as it is not easy to segment different industries. Description This report will analyze the performance of different portfolios that are displayed in FINVIZ to ascertain their trends at a particular time. Particularly, the analysis will be based on individual stock, the best and the worst performing portfolios. FINVIZ has several portfolios. Therefore, each industry has individual portfolios. Below is a table and a bar graph showing the performance of different portfolio listed in FINVIZ for a period of three months.... A good portfolio is characterized by high returns on investment (Reilly and Brown, 2011). Portfolio analysis requires subjective judgment as it is not easy to segment different industries. Description This report will analyze the performance of different portfolios that are displayed in FINVIZ to ascertain their trends at a particular time. Particularly, the analysis will be based on individual stock, the best and the worst performing portfolios. FINVIZ has several portfolios. Therefore, each industry has individual portfolios. Below is a table and a bar graph showing the performance of different portfolio listed in FINVIZ for a period of three months. No. Name Performance (Quarter) 1 Financial 5.87% 2 Industrial Goods 4.97% 3 Consumer Goods 4.84% 4 Services 3.62% 5 Healthcare 2.49% 6 Basic Materials 0.21% 7 Conglomerates -0.08% 8 Technology -2.95% 9 Utilities -4.06% Economic /Market analysis The contradictions that caused the 2008-2009 global recessions are not being resolved, and t here is a possibility in the near future of another recession due to: †¢There are vast amounts of household debt, which are unpaid, particularly one for home mortgages. †¢The global capitalist crisis for example, most immediate European crisis, which will reduce exports in the U.S market and destabilize its financial system. †¢Introduction of a policy by the U.S government which forced expenditure at the federal, state and local level to be cut. As a result, the Gross domestic product (GDP) went down by almost one-half percent in 2011. It might also cause more harm in the future †¢Increased rates of unemployment, growing rate of inequality, the growing power of financial capital and growth driven by

Use of Social Media Research Paper Example | Topics and Well Written Essays - 1000 words

Use of Social Media - Research Paper Example This paper tells that social media has been flagged as a potential threat if used inappropriately. Issues of privacy, unnecessary information, negative influence, devaluation of human values are some of the negative issues associated with social media. For proper utilization of social media, governments should take control on managing social media so that issues like privacy, dangerous outcomes, and endless distractions can be maintained. Certainly, social media connects millions of people across the world. Among these people are genuine users as well as hackers and other malicious identities. Social media such as Facebook is a good avenue for accessing a large pool of people of all kinds. This makes it an attractive haven for any person with personal interests. For instance, politicians have often used social media to propagate their political ideologies some of which may trigger hatred among the target groups. North Africa an Arabian region revolution that began in Tunisia is a goo d example of overwhelming political usage of social media. Advertisers and business entities are always crawling through social media in search for opportunity to exploit. Whereas everybody is looking at an opportunity to benefit themselves, it poses a serious privacy risks to social media users. Certainly, â€Å"Breaches of privacy and security are frequently mentioned topics and so is identity theft, online bullying, and disclosure of potentially damaging or embarrassing personal information† (Shneiderman et al, 2011).  Perhaps one of the most potentially dangerous technologies is social media. Due to the high degree of penetration, wide usage, freedom, anonymity, and interconnectivity, social media is potentially dangerous if not properly regulated. Politically, social media, particularly Facebook, has been a prime platform for the propagation of political and religious views. It does not come by surprise that the recent revolution in Tunisia, Egypt, and other Islamic co untries was made possible by social media. The hazardous nature of social media stems from the fact that it supports anonymity. People have different thoughts and ideologies that they would like others to adopt. Whereas some people have well-meaning ideologies, others such as extremists, pose a danger to the population. According to Shneiderman et al (2011), â€Å"the potential for more polarized discussions as users selectively view only materials aligned with their world view and scientists retreat to narrow research topics.† Terrorists have also been using social media platforms to propagate their ideologies. In order to protect users of social media against uncontrolled use, the relevant authorities need to put measures into place (Madhava, 2011). For example, it may be necessary and important for all social media platforms to keep electronic and retrievable copies of all web activities. This way, it would be easy for the relevant authorities to keep track of potentially harmful use. Additionally, user information may be required to be incorporated within the usage of the media platforms so that users can be held accountable for wrongful use of social media.  

Family and Kinship in Japan Essay Example | Topics and Well Written Essays - 1250 words

Family and Kinship in Japan - Essay Example The sayings, or â€Å"Analects† of Confucius were written some 500 years BC and they contain many references to the duties of parents and children, in particular stressing the duty of the young man to respect his elders (Confucius and Leys, 1997, p. 4). In those days peasant families had no social security systems or means of supporting themselves in old age, and so children were expected to provide for their parents. Japanese culture is no longer based on a peasant, agricultural economy, but in the urban centers there is still an expectation that children should respect their elders, and a collectivist approach to society which involves each family unit being responsible for their own members. With the rise of industrial society in Japan male and female roles continued to be quite clearly segregated, so that women maintained the role of homemaker and provide care for the elders, while the men are expected to work long hours with a few holidays. A relic of older times can be seen in the way that Japanese religion has a place for ancestor worship. The Japanese Shinto religion involves interactions with kami or spirits, and these can include the ghosts of ancestors who have died. Hori noted in the 1960s that this practice is â€Å"even today, widespread and important† (Hori, p. 32) but points out at the same time that there is a difference between this kind of lowly household deity and the more absolute deities of Judaism, Christianity and Islam. Japanese religious beliefs are syncretistic, drawing on many different sources for inspiration so that the same family can have a Shinto New Year celebration, a Buddhist funeral and a Christian wedding ceremony, without seein g any conflict between the underlying world views. This makes it rather difficult for researchers to work out how deeply embedded any cultural phenomena in modern Japan actually are.

Public International law Essay Example | Topics and Well Written Essays - 1750 words

Public International law - Essay Example What this means is that where there are gross violations of human rights without internal structures to mitigate the suffering of victims, alternative forces have the right and duty to intervene and correct the situation. It must be understood that governments that tend towards gross violation of human rights are necessarily despotic in nature (Engelhart, 2009). This aspect of their being means that they must systematically destroy systems that are structurally opposed to their ideals of violence and philosophies of oppression and suppression. In time therefore there is left no meaningful forces within the despotic system to safeguard the rights of the citizens. The absence of a corrective mechanism means that the violations will go on as long as the oppressor lasts (Engelhart, 2009). This situation therefore warrants the intervention of foreign powers to protect, restore, and sustain human rights. Moreover in situations where some of the despotic governments refuse to be party to in ternational protocols that bind them towards the protection of human rights only external forces can move in to alleviate the suffering of the citizens. ... The relationship between governments and the international protocols on human rights can still be seen in the second dimension of member countries that still flout the codes for the preservation of the same rights they undertook to protect. There have been cases where countries which are party to the United Nations protocols turn round and start oppressing their civilians with little regard to the essence of rights, freedoms, and the sanctity of human rights. There are case studies all around the globe although parts of Eastern Europe, Asia, Africa, and The Middle East have featured most prominently in this disregard of human rights. Mass murder, arbitrary confinement, summary execution, and detention without trial are some of the examples that feature among the countries that renege on their legal obligations to safeguard their citizens’ rights and freedoms. This willful abuse and subjugation of the rights of individuals must be met with direct and active measure from whateve r source for the sole purpose of restoring the just order as idealized in the principles of good governance and as enshrined in legal systems, both foreign and local. Another argument for this measure should be that laws are meant to be kept and that there must be consequences attached to non-compliance. One case study of such intervention is illustrative in North Atlantic Treaty Organization (NATO) forces intervention of the Kosovo crisis to ease the magnitude of human suffering and the trampling of individual rights and freedoms under the authority of the then president Slobodan Milosevic. Although the magnitude of human suffering was great it can be argued that the intervention of the foreign forces

Economic growth and technological advance interact and drive the rise Essay

Economic growth and technological advance interact and drive the rise of Western Civilization through 1500 - Essay Example hnological advancement had prompted for the start of the Age of Discovery, which lead to the start of the rising power of the Western European region. The start of economic growth in the Western European region was when the status of private property rights was changed and given more emphasis in line with the Protestant work ethic. According to Robert Higgs in his article "The Rise of the West," this change in the status had provided people more incentive to accumulate capital, hence the development of capitalism and start of economic progress followed: "Fundamental to that sustained dynamism was the gradually improving status of private property rights. So long as people cannot count on a reasonable prospect of reaping the fruits of their efforts and investments, they have little or no incentive to work hard or to accumulate physical, human, and intellectual capital. And without such accumulation, no ongoing economic progress is possible. More reliable private property rights did not just drop from heaven, however. For the most part, the merchants acquired the protection of such rights by paying off the robber barons and aspiring kings who constituted the fragmented ruling stratum of Western Europe (Higgs 2002)." As the status of private property rights changed, accumulation of intellectual capital had been rewarded in relation to trade. New technological advancements had enabled agriculture to flourish in the region. The significant inventions such as water mills and new farming techniques had enabled better and more plenty production of agricultural goods. According to the "Technology in the Middle Ages" page of San Jose State University website, "In addition to the redesign of the plow, the way the crops were grown changed in Medieval Europe when farmers changed from a two-field crop rotation to a three-field crop rotation beginning in the 8th century (SJSU.edu 2009)." Two other significant agricultural technologies had helped grow the production of crops in

A Content Analysis of Internet Sites Essay Example for Free

A Content Analysis of Internet Sites Essay This study is an analysis of pornography of a violent nature on the internet. There were found to be varied definitions of pornography such as â€Å"sexually explicit material† and â€Å"material that combines sex and or exposure of genitals with abuse or degradation that appears to endorse, condone or encourage such behavior. † The purpose of this study is to explore the harmful effects of pornography on relationships between males and females and not so much the actual content of the sites. There was also a review of earlier research that was done. Prior analysis also included different mediums such as movies and printed magazines. The research design was specific to internet websites that marketed their sites specifically promoting violence and sex. The research included thirty-one such websites. The methods of research were various search engines, links on websites that provided links to other sites and pay for view sites through explicit advertising. Websites were compared by overall content and strong explicit images and text. The findings discovered repetitive themes and images as well as invitations to access interactive websites or programs. Research also found that the setting, type of force, instruments used, number of victims and perpetrators and race were clearly displayed. More details of the victims were revealed while little was revealed about the perpetrators. An Analysis of Intercollegiate Media Guide Cover Photographs The cover photographs marketed a pre-conceived definition of male and female athletes. The focus of this analysis was to determine how men and women athletes are portrayed on and off court based on the cover photographs. The findings were determined by asking the following questions. Was the photograph taken on or off court? Was the athlete in uniform and were they posed? Did the photograph reveal athleticism? Was there sexual suggestion of either femininity or masculinity? It found that media perpetuates inequalities between male and female athletes and influences the viewpoint of the public. Media also tends to promote the muscularity and superiority of men. The physical appearance and femininity of female athletes takes precedence over athletic abilities and performance. Getting Your Body Back This analysis was to determine how the magazine portrayed pregnancy and motherhood relative to fitness. Pregnant women have a great deal of anxiety and corporations take advantage of that and use it to market the importance of fitness before, during and after pregnancy. Fitness is portrayed as a form of empowerment and control in a woman’s life and being out of shape depicts excessiveness, lack of self-control and devalues the femininity of women even during pregnancy. It also portrays fit women as having the capacity to â€Å"do it all. † Works Cited Gill, Jugdeep Kaur. Tips on Summary Writing. 12 October 2008. The Star Online. 16 October 2008   http://www.thestar.com

The pulley system investigation Essay Example for Free

The pulley system investigation Essay My aim is to create a pulley system which must consist of one, two or three pulley systems so that the results are recorded. I will also investigate and find the difference in the value of the force obtained for the three different pulley systems. Hypothesis I should be able to pick up 500g with one pulley but to make this easier I will use a pulley system, if I use one pulley that the force needed to lift this amount of weight should decrease by 25%. Off course this is my hypothesis Apparatus   Nylon Rope (3 Metres long Rope) Three pulley systems.   500g mass load force meter. (Newton Meter)   Clamp, Boss, Retort Stand. Loop and Weights. Safety Points The first thing that you must always be concerned about should be the safety of yourself and people around you. Safety should always be looked at seriously as this could alter the results and the test could turn unequal and unfair. You must always be concerned about Safety as this could always make the test more equal and Fair. Make sure that you put a bad underneath the pulleys in case they drop. A tension should always be readily available on the strings so that the whole pulley system does not collapse. Counter Balancing Masses could be an affective way to improve rather than a Newton Meter (optional). Method 1) The pulley must be firstly fixed together with a loop to a retort stand. 2) A string which has looped ends is then placed on top of the pulley 3) Weights can then be attached to one end of the string using its loop. A Newton Meter is than attached to the other side of the string. 4) By pulling down the Newton Meter you are able to raise the weight which sets the height and the effort is recorded on the Newton Meter. 5) You can now attach more pulleys and compare the force required to raise the weights. I have observed that you will not get the required result if you skip weight increasing from one number to another. You must go up step by step to see the trend. This is so that you can take real measurements and make observations correctly. 6) Adaptations To help make the experiment more efficient, the stand was were unstable; I got a friend to hold down the experiment whilst i was pulling the Newton meter. May I also mention that standard procedure may be different to the procedures which conclude in a Science Based Service. Science Based Services have much more detailed and quality instructions as well as equipment which give much more accurate readings. These accurate data include materials such as a digital Newton Meter which gives you an accurate reading to three decimal places. A Service which uses this equipment includes a building company which has to pick up a lot of weight. Diagram Result Test Number of Pulley Systems Force Needed to lift 500g load off the floor 1 0 3N 2 1 4N 3 2 3N 4 3 2N A surprising result has been achieved. The trend is very unusual. I have seen that the more the pulley is added the less force is required. But through observation i can see that without a pulley at all is better that has 1 pulley or 3 pulleys. The device is not very good as it was very unstable and people had to be aware of it. It was probably able to fall but did not due to the care that was taken. The performance of the system as a whole has not really attracted me. This is because the machine we used was insecure and unsafe to use. The first three tests were also very bad as they were better of not to be done. We contained results which were very unexpecting. If you were to add more pulleys the machine would get too complicated and may also not be able to handle it. As you know i had wished to add more pulleys but there were not any more to go around in the class. Conclusion I found out as the number of pulleys increased from 1 to 3 the amount of force needed to lift goes down. Evaluation I could improve my experiment if I repeat the test a few times to cancel any human errors such as wrong measurements which may occur during the measurement of the rope. Other measurements such as the weights may have been misunderstood due to their sizes which will vary accordingly. We also required adding more pulleys to get a more accurate result as more pulleys would have given us a more appropriate result. In the Industry In a laboratory you would use a pulley system simply to get the over all picture. It would be very small machine and the results taken would not be accurate. In a real world industry people have to move very large heavy items and materials. In an industry there are special separate companies which have the business of just moving items with huge pulley like machines. They take accurate reading of all there uses and determine through past experience of how much weight will be picked up and take on a job with the appropriate amount of pulleys. They have also got more stable and secure equipment which is checked regularly. The difference is our equipment is low graded and has not been specified for any specific weight criteria like there. We are also taking experiments before any real work can be taken up. But they have already got all the information required and choose there machine depending on the weight intended. Pulleys are found usually on cranes which help pick loads vertically but they use ropes, wires and chains!