Social and Behavioral Sciences Commons^™

Measuring Performance: The Economics Of Cleaning The Outside Of The Cup, Joshua Hollinger

Faculty Work Comprehensive List

"Sometimes focusing too much on what we can measure distorts our beliefs and actions as we turn away from immeasurable things that matter."

Posting about ­­­­­­­­the economics of evaluating workers based on their performance from In All Things - an online journal for critical reflection on faith, culture, art, and every ordinary-yet-graced square inch of God’s creation.

https://inallthings.org/measuring-performance-the-economics-of-cleaning-the-outside-of-the-cup/

Determinants Of Performance In Smallholder Farmer Groups In Uganda, David Agole, Connie D. Baggett, John C. Ewing, Edgar P. Yoder, Margaret N. Mangheni

Journal of International Agricultural and Extension Education

The performance of farmer groups is critical for the success of the farmer-led Agricultural Extension approach currently used in Uganda. This study examines factors affecting performance of farmer groups accessing agricultural extension and advisory services from the National Agricultural Advisory Services in Eastern Uganda. The study collected data 200 members of 19 farmer groups in Eastern Uganda. Performance of farmer groups was the dependent variable, which was perceived to be influenced by individual members’ objectives, participation culture, power distance, structure of task, perceived equity, reward allocation and participation in group activities. Farmer group performance had a statistically significant positive relationship …

Feeling The Heat? Fear Of Failure And Performance, Alberto Chong, Marco Chong

CSLF Working Papers

Using a new, objective measure, we study the role of fear of failure in performance and find that it is positively linked with the latter, a finding that tends to contradict the conventional wisdom in both psychology and behavioral economics. We use individual data from the nationally syndicated television show MasterChef for the years 2010 to 2020 and exploit situations in which contestants are on the verge of being dropped from competition. Using ordinary least squares, we show that extreme fear of failure is associated with an increase of two to four positions in the final placement of the competition.

Investing In Low-Trust Countries: On The Role Of Social Trust In The Global Mutual Fund Industry, Massimo Massa, Chengwei Wang, Hong Zhang, Jian Zhang

Research Collection Lee Kong Chian School Of Business

We hypothesize that social trust, in mitigating contracting incompleteness, may have an important effect on the activeness and effectiveness of delegated portfolio management. Using a complete sample of worldwide open-end mutual funds, we find that trust is positively associated with the activeness of funds and that trust-related active share delivers superior performance (e.g., approximately 2% per year for cross-border investments). Moreover, "trust in the market" and "trust in managers" play important yet different roles for different types of cross-border delegated portfolio management. Our results suggest that trust acts as a fundamental building block for delegated portfolio management.

Environmental Accounting And Financial Performance Of Listed Family-Owned Companies In Nigeria, Charles Segun Ilelaboye, Muyiwa E. Alade

International Review of Business and Economics

This study examines the effect of environmental accounting on the performance of family-owned companies in Nigeria using restoration cost, community development costs and health & security costs as surrogates. The study used ex-post facto research design. The population of the study consisted of all 12 family-owned companies across industrial and oil & gas sectors that were quoted on the Nigerian Stock Exchange (NSE). Purposive sampling technique was used to select six (6) family-owned companies that disclosed environmental information. Data were gleaned from the annual reports of the sampled companies covering 2012-2020. The study used descriptive statistics, correlation and Ordinary Least …

A Contemporary Study On The Impact Of Regulations On Business Performance, Brian C. Mulligan

Theses and Dissertations

This dissertation examines Nobel Prize Laureate Hayek's ominous warning that economic liberty in the U.S. is at risk, due to regulations, of becoming an unplanned administrative state. The research seeks to understand the effects of regulations on business performance and how to right-size them for a healthy business environment. These objectives are accomplished with two papers: (1) a macro cross-discipline literature review and call for research on the impact of regulations on business performance, and (2) a qualitative grounded theory study from interviews from elite business executives on their perspectives on the impact of regulations on business performance. The findings …

He, She, We: Gender Impacts In Teamwork, Arlene J. Nicholas

Faculty and Staff - Articles & Papers

It is well known that organizational teams are highly valued in work settings (Marquis, 2019). Some research has shown gender differences such as "team collaboration is greatly improved by the presence of women in the group" (Baer & Woolley, 2011). Other studies support mixed gender teams as advantageous (Sachiko & Takeda, 2014). This paper will review the perceptions of gender contributions in teams from the literature and report on a study of current business students in a liberal arts university. Some comparisons are made to the author's 2017 survey on gender effects in team projects in the same school.

Análisis A Través De Procesos De Optimización Geométrico Browniano Aplicado En Los Etfs, Cristihan Andrés Chaves Cárdenas, Juan Fernando Rodríguez Ramos

Finanzas y Comercio Internacional

El objetivo de esta investigación es determinar la eficiencia en la construcción de los ETFs a través de la mejora en el proceso de optimización evaluados bajo pronóstico en las series de tiempo financieras. En resumen, con base en las series de los valores en dólares (USD) de cada ETF en Colombia (Icol), México (Flmx), Brasil (Fblr) y Estados Unidos (Usmv) y las acciones que los componen, a partir de los precios, se calcularon los rendimientos y luego se obtuvieron los parámetros para hacer los pronósticos mediante el Movimiento Geométrico Browniano (MGB) logrando la mayor precisión en cuanto a retorno …

Assessing Efficiency In The Pharmaceutical Sector Of Nigeria, Efayena O. Obukohwo, Enoh H. Olele, Patricia N. Buzugbe

CBN Journal of Applied Statistics (JAS)

The study analyses, empirically, the efficiency of the Pharmaceutical sector in Nigeria. Employing a balanced panel of 20 pharmaceutical firms between 2012 and 2016, the paper uses a non-parametric technique (Data Envelopment Analysis) to analyze the firms’ efficiency under the constant returns to scale (CRS) and variable returns to scale (VRS) assumptions. The results obtained shows inefficiency in the pharmaceutical sector as it operates under a decreasing return to scale. This calls for an appropriate policy mix to stimulate the efficiency of the pharmaceutical sector in Nigeria by enhancing research and development (R&D) as ell as regulations within the sector.

The Connection Between Race And Performance Of Nba Draft Picks, Jeremiah Mitchell

Theses and Dissertations

This paper examines the relationship between race and performance in terms of one of the highest forms of efficiency in basketball, field goal percentage, based on college statistics, with regard to draft position, career earnings and NBA win shares.

The Impact Of Efficiency On Islamic Banks’ Performance: A Cross-Country Study, Fatma Ahmed, Khaled Hussainey, Elsayeda Ismail

Economics

This paper contributes to Islamic finance literature by offering large-scale evidence on the impact of efficiency on the performance of Islamic banks all over the world. Our initial sample includes all Islamic banks around the world. Using a sample of 151 Islamic Banks with financial years ending within the period January 2013 and December 2013, we examine, controlling for Bank-specific characteristics and country-specific characteristics, whether high efficiency leads to more profitability in Islamic Banks. We define higher efficiency as the lower Cost-to-income ratio. We find that higher levels of Islamic banks’ efficiency banks (i.e. lower Cost-to-income ratio) are positively associated …

Personality And Transformational Leadership: A Review, Saima Ghazal, Arooj Arshad, Fatima Kamran University Of The Punjab, Lahore, Pakistan

Business Review

A review of the literature shows that extroversion is the strongest and most consistent positive predictor of transformational leadership. Furthermore, such leadership is shown to predict team performance, subordinate's individual performance, job satisfaction and organizational commitment.

"Gravity Models" Applied To Projections For New Casinos: Techniques And Results, Will E. Cummings

International Conference on Gambling & Risk Taking

All developers of new casinos prepare, or have prepared for them, projections for the likely gaming-revenue performance of those casinos; in many cases; regulatory authorities in North America also require or commission independent third-party assessments of such performance. These projections are very frequently based on "gravity models," applying techniques pioneered by Reilly and Huff to analyze other retail activities in relation to the geographic distribution of competitors and potential customers. In this paper, I review roughly 80 examples of such applications from recent casino-licensing procedures in the U.S., and compare their results.

From Promise To Form: How Contracting Online Changes Consumers, David A. Hoffman

All Faculty Scholarship

I hypothesize that different experiences with online contracting have led some consumers to see contracts—both online and offline—in distinctive ways. Experimenting on a large, nationally representative sample, this paper provides evidence of age-based and experience-based differences in views of consumer contract formation and breach. I show that younger subjects who have entered into more online contracts are likelier than older ones to think that contracts can be formed online, that digital contracts are legitimate while oral contracts are not, and that contract law is unforgiving of breach.

I argue that such individual differences in views of contract formation and enforceability …

Boom & Bust: The Perils Of Guaranteed Long Term Contracts. Evidence From Ops100 Performance Over The Contract Cycle, Heather M. O'Neill

Business and Economics Faculty Publications

This study focuses on panel data of 256 MLB free agent hitters under the 2006-2011 Collective Bargaining Agreement (CBA) to demonstrate that hitters, on average, increase their offensive production, measured by OPS100, during the last year of their contract and subsequently underperform the first year of the newly signed long term contract. The contract year phenomenon arises from the incentive to land a lucrative guaranteed contract for players not intending to retire. Signing a long term guaranteed contract creates an incentive to shirk (underperform) the first year of the new contract because performance and pay become unlinked and the need …

Player Compensation And Team Performance: Salary Cap Allocation Strategies Across The Nfl, Max Winsberg

CMC Senior Theses

The National Football League’s salary cap constrains the available resources each franchise is allotted to spend on player personnel. I examine the effects of executive management’s compensation allocation strategies on team performance from 2006 to 2013. The findings suggest that spending more than the league-average on offensive lineman hurts overall team performance. Spending above the league average on both the offensive line and quarterback positions negatively affects offensive performance as well. This supports previous research stating that taking a superstar-approach to cap distribution negatively affects team performance. Furthermore, I find evidence of increased compensation inequality among players under the Collective …

The Common Sense Of Contract Formation, Tess Wilkinson-Ryan, David A. Hoffman

All Faculty Scholarship

What parties know and think they know about contract law affects their obligations under the law and their intuitive obligations toward one another. Drawing on a series of new experimental questionnaire studies, this Article makes two contributions.First, it lays out what information and beliefs ordinary individuals have about how to form contracts with one another. We find that the colloquial understanding of contract law is almost entirely focused on formalization rather than actual assent, though the modern doctrine of contract formation takes the opposite stance. The second Part of the Article tries to get at whether this misunderstanding matters. Is …

Macroeconomic Fluctuations As Sources Of Luck In Ceo Compensation, Hsin-Hui Chiu, Lars Oxelheim, Clas Wihlborg, Jianhua Zhang

Business Faculty Articles and Research

Macroeconomic fluctuations in interest rates, exchange rates, and inflation can be considered sources of good or bad “luck” for corporate performance if management is unable to adjust operations to these fluctuations. Based on a sample of 2,091 US firms, we decompose the impacts of macroeconomic fluctuations on three measures of CEO compensation. Our study provides empirical support for the importance of considering macroeconomic fluctuations in designing CEO incentive schemes. It adds to the managerial power literature on moral hazard and CEO compensation by pinpointing the obvious risk that the CEO in an asymmetric and non-linear reward system will be inclined …

The Determinants Of The Salary In Nba And The Overpayment In The Year Of Signing A New Contract, Nuoya Li

All Theses

Based on lots of previous research, the salary in National Basketball Association is determined by both personal characteristics and on-court performance. However, which kind of performance seems more important? Furthermore, does signing a new contract have any incentive or effect on the player's performance which makes the player be overpaid or underpaid in the year of signing the contract? And which kind of contracts and what kind of players tend to be overpaid? In my paper I introduce the on-court performance, personal characteristics and salary. Then I build a connection between them and run 2 regressions to analyze the determinants …

Toward A Postmodern Avant-Garde: Labour, Virtuosity, And Aesthetics In An American New Music Ensemble, John R. Pippen

Electronic Thesis and Dissertation Repository

This dissertation examines the aesthetic beliefs and labour practices of the American new music ensemble eighth blackbird (lower-case intentional). Drawing on ethnographic research conducted with the ensemble for the past six years, I show how the ensemble responds to specific cultural pressures endemic to the classical music scene, its new music vanguard, and to the contemporary United States. eighth blackbird, I argue, has created an ensemble identity and performance style designed to satisfy numerous audience positions, from experts well-versed in the intricacies of musical techniques to lay-persons unacquainted with the values and practices of new or classical music. This attempt …

An Empirical Test Of The Structure, Conduct-Performance Paradigm In The Asian And Pacific Basin Countries, Abdur Chowdhury

Abdur R. Chowdhury

This paper tests the structure‐conduct‐performance paradigm in eighteen Asian and Pacific Basin countries. The results suggest that concentration in the banking markets in these countries lead to monopoly profits being earned and is a signal of collusive behaviour among the leading banks. Competitive imperfections allow banks to set prices that are less favourable to consumers thereby decreasing total consumer and producer surplus. This has important policy implications for merger activity. A further increase in concentration in the banking market in these countries will decrease the level of competition in the market. Regulatory actions, such as anti‐trust laws, are justified on …

Players' Performance Index For Major League Soccer, Joel Correll

Joel Correll

This paper analyzes player compensation and team finances within Major League Soccer's 2007 season by calculating salaries with respect to the player's marginal revenue product and performance parameters. The player's performance index is a calculated overall value which takes into account variations of weighted in-game actions. This performance index is tied together with a player's marginal revenue product to determine their actual economic value with respect to their 2007 rating. The paper concludes that on average, Major League Soccer as a whole compensates players based on the team's marginal revenue product, and not the individuals. The study also finds clear …

Do Mlb Hitters Boost Performance In Their Contract Year?, Heather M. O'Neill

Business and Economics Faculty Publications

This study focuses on 256 MLB free agent hitters playing under the 2006-2011 CBA to determine whether they boost their offensive performance in their contract year. Prior studies’ results are mixed, depending on the econometric technique used and the choice of the offensive performance measure.

Having multiple year observations per player, one can incorporate the unobserved traits of the players (ability, risk aversion, work ethic, etc.) by using Fixed Effects (FE) estimation. Since these unmeasured player traits are likely to be correlated with observed predictors of performance (games played, playoff contention, age, etc.), traditionally used Ordinary Least Squares (OLS) and …

Merit Pay For School Superintendents?, Ronald G. Ehrenberg, Richard P. Chaykowski, Randy A. Ehrenberg

Ronald G. Ehrenberg

Given the important role that school district administrators play in the educational process, one might expect their 'performance" to be of fundamental importance in determining both how much students learn and the cost of public education to taxpayers. Yet, while public debate has considered the issue of merit pay plans for teachers, virtually no attention has been directed to the methods by which school administrators are compensated. This paper provides evidence on whether school superintendents are explicitly or implicitly rewarded for their "performance" by higher compensation and/or greater opportunities for mobility. We analyze panel data from over 700 school districts …

Core Resources Of Corporate Strategy And Performance-Oriented Bank Management Practice: A Lesson For Nigeria, Andrew O. Agbada

Bullion

In the past three decades, the Nigerian banking industry has suffered from a host of vices namely miss-management, financial misappropriation, administrative recklessness, etcetera, reflecting incompetence on all levels of management and those have had dire consequences in the economy. In an attempt to re-position the industry on the path of performance, different governments in the past took various corrective steps to no avail. Thus this study seeks to explore the Core Resources of Corporate Strategy and Performance-oriented Bank Management best practice with a view to creating sustainable best practices in bank management in Nigeria. The findings from the study are …

Are School Superintendents Rewarded For “Performance”?, Ronald G. Ehrenberg, Richard P. Chaykowski, Randy Ann Ehrenberg

Ronald G. Ehrenberg

[Excerpt] This chapter presents analyses of the compensation and mobility of school superintendents in New York State during the 1978-79 to 1982-83 period. The focus is on school superintendents because they are the chief operating officers of school districts, their salaries are determined through individual "negotiations" with school boards, and their salary data were made available to us. In contrast, school principals' salary data were not available to us. Especially in large districts, principals tend to be members of a union and their salary increases negotiated collectively, which limits the likelihood of observing individual principals' salaries being related to measures …

Executive Compensation In Municipalities, Gerald S. Goldstein, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] In this paper we are concerned with the salaries of three important municipal officials; city-managers, police chiefs, and fire chiefs. We present a model that relates the salaries of these officials to a set of explanatory variables, the most important being measures associated with job performance. Two of these measures of performance are developed in the study. Further, the influence of the city-manager form of government on the incentive structure facing police chiefs and fire chiefs, and the interdependence betwen the salaries of police chiefs and fire chiefs is investigated. The model is tested using cross-section data for 1967.

Do Tournaments Have Incentive Effects?, Ronald Ehrenberg, Michael Bognanno

Ronald G. Ehrenberg

Much attention has been devoted to studying models of tournaments or situations in which an individual's payment depends only on his or her output or rank relative to that of other competitors. Academic interest derives from the fact that under certain sets of assumptions, tournaments have desirable normative properties because of the incentive structures they provide. Our paper uses nonexperimental data to test whether tournaments actually elicit effort responses. We focus on professional golf tournaments because information on the incentive structure (prize distribution) and measures of individual output (players' scores) are both available. We find strong support for the proposition …

Modeling Offensive Performance And Salary In Major League Baseball, Joseph E. Ojanen

Culminating Projects in Economics

There are numerous statistics, such as Batting Average, On-Base Percentage, and Slugging Percentage, which attempt to measure the value of Major League Baseball players. However, the statistics commonly used today each have problems associated with it, which means they are not a good predictor of runs scored.

In an attempt to improve on these statistics, numerous models have been developed by Lindsey, Pankin, James, Bennet and Flueck, Thom, Palmer, and Gershman, and Furtado that estimate runs by assigning values to various statistics. There have also been numerous models, such as those by Hakes and Sauer, Brown and Jepsen, and Stone …

Officer Performance And Compensation In Local Building Trades Unions, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] This paper presents estimates of the relationship between the performance and compensation of local building trades union leaders. A growing literature has revived the common-sense notion that organizations should structure the compensation of both their employees and their executives so as to encourage them to take actions consistent with the goals of the organizations. One way to minimize the probability that executives will take actions contrary to the organization's goals is to tie their compensation to measures of their organization's performance.