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Compensation
Kinds of Compensation Terms modified by Compensation Selected AbstractsSTRATEGIC DECISIONS ON LAWYERS' COMPENSATION IN CIVIL DISPUTESECONOMIC INQUIRY, Issue 4 2007KYUNG HWAN BAIK We study a model of civil dispute with delegation in which a plaintiff's lawyer works on a contingent-fee basis but a defendant's lawyer on an hourly fee basis. We first derive the condition under which delegation to the lawyers brings both litigants more payoffs compared with the case of no delegation. We then show that under this profitable delegation condition, the contingent-fee fraction for the plaintiff's lawyer is about one-third. Next, allowing the plaintiff to choose between the two fees, we show that under the profitable delegation condition, the plaintiff chooses the contingent fee, given that the defendant adopts the hourly fee. (JEL K41, K13, D74, D72) [source] TRADE LIBERALIZATION AND COMPENSATION,INTERNATIONAL ECONOMIC REVIEW, Issue 3 2006Carl Davidson Liberalization harms some groups while generating aggregate benefits. We consider various labor market policies that might be used to compensate those who lose from freer trade. Our goal is to find the policy that compensates each group of losers at the lowest cost to the economy. We argue that wage subsidies should be used to compensate those who bear the adjustment costs triggered by liberalization whereas employment subsidies should be used to compensate those who remain trapped in the previously protected sector. Our analysis indicates that the cost of compensation is low, provided that the right policy is used. [source] GOLF TOURNAMENTS AND CEO PAY,UNRAVELING THE MYSTERIES OF EXECUTIVE COMPENSATIONJOURNAL OF APPLIED CORPORATE FINANCE, Issue 3 2001John Martin Leading financial economists and activist institutional investors have long argued that the proper alignment of manager and shareholder interests requires the use of performance based compensation. Partly in response to these pressures, and in combination with a change in the tax code that encourages performance-based pay, corporate boards have dramatically increased their use of stock grants and executive stock options. Combine this development with the longest bull market in U.S. financial history, and the result is unprecedented levels of CEO pay at the close of the 20th century. This review of executive compensation reveals that the economic theory of tournaments may provide a rationale for the pattern, if not the level, of executive pay. Specifically it finds that the total compensation of the five highestpaid executives in a cross-section of new and old-economy firms is very similar to the pattern of payouts to players in a golf tournament. The author also reports that recent studies show a significant increase in the pay-for-performance correlation throughout the 1990s. But whether that correlation is as high as it should be, and whether current levels of CEO pay are socially "optimal," are questions that remain unanswered. [source] EVIDENCE ON THE COMPENSATION OF PORTFOLIO MANAGERSTHE JOURNAL OF FINANCIAL RESEARCH, Issue 3 2006Heber Farnsworth Abstract We surveyed 396 portfolio managers about the structure of their compensation. Overall, more compensation packages are subjective/discretionary than objective/formula based. Firm success factors such as firm profitability have more effect on bonuses than do client success factors such as investment performance. Differences in the structure of compensation across firms, clients, job types, and manager characteristics reflect likely differences in the underlying contracting environments, especially differences in the difficulty of monitoring performance and exerting control. [source] HAVE EMPLOYEES IN GERMANY RECEIVED FULL WAGE COMPENSATION AFTER A CUT IN STANDARD HOURS?,THE MANCHESTER SCHOOL, Issue 3 2006THORSTEN SCHANK The effect of standard hours on the hourly wage rate is important in assessing whether work-sharing is likely to be a successful policy. Furthermore, it determines whether unions have achieved their goal of keeping the monthly income of employees constant after a cut in standard hours (income compensation) or whether employees experience reductions in monthly income (income sharing). However, the standard hours elasticity of the hourly wage rate has rarely been estimated. This study reports evidence for Germany, 1995,99, using the IAB Establishment Panel. The results imply income compensation for plants with a bargaining agreement, but income sharing for plants without a bargaining agreement. No evidence is found for the Calmfors and Driffill hypothesis that postulates that wage demands are more moderate if unions operate at the firm level than if bargaining takes place at the industry level. [source] FORCE RIPPLE COMPENSATION OF LINEAR SYNCHRONOUS MOTORSASIAN JOURNAL OF CONTROL, Issue 1 2005Christof Röhrig ABSTRACT Linear synchronous motors are finding expanded use in high-performance applications where high speed and high accuracy is essential. The main problem in improving the tracking performance of linear synchronous motors is the presence of force ripple caused by mismatched current waveforms and unbalanced motor phases or amplifier gains. This paper presents a method to optimize the waveform of the phase currents in order to generate smooth force. The optimized current waveforms produces minimal copper losses and maximize motor efficiency. The waveforms are implemented in a waveform generator of the motion controller and approximated with Fourier series. The optimization method consist of three stages. In every stage, different harmonics of the force ripple are reduced. A comparison of the tracking performance with optimized waveforms and with sinusoidal waveforms shows the effectiveness of the proposed method. [source] BACKLASH COMPENSATION IN NONLINEAR SYSTEMS USING DYNAMIC INVERSION BY NEURAL NETWORKSASIAN JOURNAL OF CONTROL, Issue 2 2000Rastko R. Selmic ABSTRACT A dynamic inversion compensation scheme is presented for backlash. The compensator uses the backstepping technique with neural networks (NN) for inverting the backlash nonlinearity in the feedforward path. The technique provides a general procedure for using NN to determine the dynamic preinverse of an invertible dynamical system. A tuning algorithm is presented for the NN backlash compensator which yields a stable closed-loop system. [source] RELATIONAL GOODS, MONITORING AND NON-PECUNIARY COMPENSATIONS IN THE NONPROFIT SECTOR: THE CASE OF THE ITALIAN SOCIAL SERVICESANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 1 2007Michele Mosca ABSTRACT,:,This paper investigates the nonprofit wage gap suggesting a theoretical framework where, like inAkerlof (1984), effort correlates not only with wages, but also with non-monetary compensations. These take the form of relational goods by-produced in the delivery of particular services. By paying higher non-pecuniary compensations, the nonprofit sector attracts intrinsically similarly skilled, but more motivated workers, able to provide in fact a similar (or potentially higher) level of effort than their counterparts in the forprofit sector. On an empirical ground, the paper provides a number of econometric tests that confirm the main predictions of the model in Italy's case. It adds to the available empirical literature by introducing in the analysis direct measures of non-pecuniary compensations and job satisfaction. [source] Audit Committee Incentive Compensation and Accounting Restatements,CONTEMPORARY ACCOUNTING RESEARCH, Issue 4 2008Deborah S. Archambeault First page of article [source] The Impact of Internal Auditor Compensation and Role on External Auditors' Planning Judgments and Decisions,CONTEMPORARY ACCOUNTING RESEARCH, Issue 2 2001F. Todd Dezoort Abstract This paper reports the results of an experiment that investigates how external audit planning is affected when internal auditors have incentives and the opportunity to bias their evaluations. Specifically, we draw on attribution theory to examine how internal auditor eligibility for incentive compensation and participation in consulting (i.e., two factors that provide incentives to bias audit evaluations) affect external audit planning. In addition, we examine the effects of incentive compensation and a consulting role across two routine internal audit tasks , an objective tests of controls task and a subjective inventory valuation task , to evaluate whether their effects are contingent upon task subjectivity (i.e., opportunity to bias audit evaluations). Seventy-six external auditors from four Big 5 public accounting firms participated in an experiment that manipulated internal auditor compensation (fixed salary versus incentive compensation), the type of work that the internal auditors routinely perform (primarily auditing versus primarily consulting), and audit task subjectivity (objective tests of controls versus subjective inventory valuation). Our results suggest that the nature of internal auditors' compensation and work affect audit planning recommendations differently. The opportunity to receive incentive compensation results in less reliance on internal auditors' work and greater budgeted audit hours, but only for the subjective task. Although a consulting role decreases perceived internal auditor objectivity, it has a limited effect on planning recommendations. Specifically, consulting has no effect on reliance, and leads to greater budgeted audit hours only when incentive compensation is available. We discuss potential explanations for the results as well as implications for audit research, practice, and regulation. [source] Compensation of actuator delay and dynamics for real-time hybrid structural simulationEARTHQUAKE ENGINEERING AND STRUCTURAL DYNAMICS, Issue 1 2008M. Ahmadizadeh Abstract Compensation of delay and dynamic response of servo-hydraulic actuators is critical for stability and accuracy of hybrid experimental and numerical simulations of seismic response of structures. In this study, current procedures for compensation of actuator delay are examined and improved procedures are proposed to minimize experimental errors. The new procedures require little or no a priori information about the behavior of the test specimen or the input excitation. First, a simple approach is introduced for rapid online estimation of system delay and actuator command gain, thus capturing the variability of system response through a simulation. Second, an extrapolation procedure for delay compensation, based on the same kinematics equations used in numerical integration procedures is examined. Simulations using the proposed procedures indicate a reduction in high-frequency noise in force measurements that can minimize the excitation of high-frequency modes. To further verify the effectiveness of the compensation procedures, the artificial energy added to a hybrid simulation as a result of actuator tracking errors is measured and used for demonstrating the improved accuracy in the simulations. Copyright © 2007 John Wiley & Sons, Ltd. [source] Corticolous arthropods under climatic fluctuations: compensation is more important than migrationECOGRAPHY, Issue 1 2005Andreas Prinzing Animals can cope with fluctuating climates by physiological tolerance, tracking of climatic fluctuations (migration) and compensatory redistribution among (micro)habitats (compensation). Compensation is less demanding and thus more important than migration at large geographic scales. It is not clear however which strategy is more important at the small scale of a microhabitat landscape. I investigated how six arthropod species (Collembola, Oribatei, Psocoptera, Isopoda) respond to microclimatic fluctuations at the surface of exposed tree trunks. Across a nine-month period I characterized the microclimatic zonation of 299 trunks, and focally sampled the arthropods from different microhabitat types (different cryptogam species and bark crevices) within different microclimatic zones. I found that compensatory microhabitat-use was a general phenomenon. The distribution of all species across microhabitats was influenced significantly by ambient microclimate. Also, the arthropods' microhabitat use changed throughout their ontogeny, and microhabitats were used even if they were rare. Most interestingly, the arthropods responded to microclimatic fluctuations primarily by redistribution among microhabitats and less by fluctuations of overall abundances across all microhabitats. Hence compensation was more important than migration. The animals moved for centimeters to decimeters rather than for decimeters to meters; they perceived and utilized their environment primarily at the finest, but also most complex scale. This has implications for the resilience of arthropod populations, their interactions with cryptogams and the turnover of species between macrohabitats. [source] Grandfathering and Greenhouse: The Role of Compensation and Adjustment Assistance in the Introduction of a Carbon Emissions Trading Scheme for AustraliaECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 2 2009Flavio Menezes Q52; Q58 The terms "grandfather clause" and "grandfathering" describe elements of a policy programme in which existing participants in an activity are protected from the impact of regulations, restrictions or charges applied to new entrants. In this paper, the role of grandfathering in the design of a carbon emissions trading scheme in Australia is assessed. It is argued that adjustment assistance policies such as those adopted in conjunction with previous microeconomic reform programmes are preferable to policies based on the free issue of emission permits. The suggestion that owners of capital assets should be compensated for changes in government policy that reduce the expected flow of income from those assets represents a radical, and undesirable, policy innovation. [source] Enthalpy/Entropy Compensation in the Melting of Thermotropic Nitrogen-Containing Chelating Ligands and Their Lanthanide Complexes: Successes and Failures,,EUROPEAN JOURNAL OF INORGANIC CHEMISTRY, Issue 18 2010Aude Escande Abstract In this short overview dedicated to the thermodynamics of liquid crystalline chelating nitrogen-containing ligands and their lanthanide complexes (i.e., lanthanidomesogens), we first go through the initial successes obtained with the introduction of the concept of enthalpy/entropy compensation for rationalizing and programming melting and clearing temperatures in thermotropic mesophases. In the second part, the failures encountered during our attempts for switching from a qualitative toward a quantitative interpretation of the melting processes in polycatenar lanthanidomesogens are discussed, together with the delicate correlations established between the thermodynamic parameters of intermolecular cohesion measured in noncoordinating solvents and those operating in pure mesophases. [source] Board Structure and Executive Compensation in the Public Sector: New Zealand EvidenceFINANCIAL ACCOUNTABILITY & MANAGEMENT, Issue 4 2005Steven F. Cahan We provide evidence on the relation between board structure and CEO compensation in public sector corporations in New Zealand. Using a sample of 80 New Zealand public sector companies, we find that similar to private sector studies, CEO compensation is related to board size, whether the CEO sits on the board, and director quality. We also find that a composite measure of board structure is significant. We conclude that, similar to the private sector, board structure is important in constraining CEO pay. Moreover, our results suggest that private sector-style board can be effective in a public sector context. [source] Quantifying the Impact of Option-Based Compensation on Earnings for the 50 Largest U.S.Technology CompaniesFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 4 2002Noah E. Butensky First page of article [source] Earnings-Based Bonus CompensationFINANCIAL REVIEW, Issue 4 2009António Câmara G39; M52 Abstract This article studies the cost of contingent earnings-based bonus compensation. We assume that the firm has normal and abnormal earnings. The normal earnings result from normal firm activities and are modeled as an arithmetic Brownian motion. The abnormal earnings result from surprising activities (e.g., introduction of an unexpected new product, an unexpected strike) and are modeled as a compound Poisson process where the earnings jump sizes have a normal distribution. We investigate, in a simple general equilibrium model, how normal and abnormal earnings affect the cost of contingent bonus compensation to the firm. [source] Determinants of executive compensation in privately held firmsACCOUNTING & FINANCE, Issue 3 2010Jesper Banghøj M52; Compensation and Compensation Methods and Their Effects Abstract We examine what determines executive compensation in privately held firms. Our study is motivated by the fact that most studies in this area rely on data from publicly traded firms. Further, the few studies that are based on data from privately held firms only examine a limited number of determinants of executive compensation. Our findings indicate that the pay-to-performance relation is weak. Board size and ownership concentration are the only corporate governance characteristics that explain variations in executive compensation. Executive characteristics like skills, title and educational attainment all explain variations in executive compensation. Contrary to our expectations, we do not find a stronger pay-to-performance relation in firms with better designed bonus plans. [source] Preventive HIV Vaccine Acceptability and Behavioral Risk Compensation among a Random Sample of High-Risk Adults in Los Angeles (LA VOICES)HEALTH SERVICES RESEARCH, Issue 6 2009Peter A. Newman Objective. To assess HIV vaccine acceptability among high-risk adults in Los Angeles. Study Setting. Sexually transmitted disease clinics, needle/syringe exchange programs, Latino community health/HIV prevention programs. Study Design. Cross-sectional survey using conjoint analysis. Participants were randomly selected using three-stage probability sampling. Data Collection. Sixty-minute structured interviews. Participants rated acceptability of eight hypothetical vaccines, each with seven dichotomous attributes, and reported post-vaccination risk behavior intentions. Principal Findings. Participants (n=1164; 55.7 percent male, 82.4 percent ethnic minority, mean age=37.4 years) rated HIV vaccine acceptability from 28.4 to 88.6; mean=54.5 (SD=18.8; 100-point scale). Efficacy had the greatest impact on acceptability, followed by side effects and out-of-pocket cost. Ten percent would decrease condom use after vaccination. Conclusions. Findings support development of social marketing interventions to increase acceptability of "partial efficacy" vaccines, behavioral interventions to mitigate risk compensation, and targeted cost subsidies. [source] Race, Compensation and Contract Length in the NBA: 2001,2002*INDUSTRIAL RELATIONS, Issue 3 2005LAWRENCE M. KAHN We study race and pay in the NBA for 2001,2002. For players who were neither free agents nor on rookie scale contracts, there were large, statistically significant ceteris paribus nonwhite shortfalls in salary, total compensation, and contract duration. But for players under the rookie salary scale (first-round draft picks) and free agents, race effects were small and insignificant. These results suggest discrimination against marginal nonwhite players. [source] The Influence of Regular Work Systems on Compensation for Contingent WorkersINDUSTRIAL RELATIONS, Issue 4 2003Article first published online: 16 SEP 200, Brenda A. Lautsch Using data from a nationally representative survey of U.S. establishments, this article explores how features of regular work influence outcomes for contingent workers. The results show that firms combine regular and contingent work in varied ways: Some managers design contingent work to achieve performance objectives not possible with the regular workforce, whereas managers in other cases create contingent jobs to reinforce the same goals as regular work. In the latter case, contingent workers are more likely to be integrated with regular workers and to receive benefits. Benefit provision for contingent workers is also influenced by traditional internal labor market rules and by spillover effects in which efficiency or regulatory requirements lead benefits to be extended to contingent staff once offered to regular workers. [source] Unionization, Compensation, and Voice Effects on Quits and RetentionINDUSTRIAL RELATIONS, Issue 4 2000John E. Delery This study explores the relationships among unionization, compensation practices, and employee attachment (quit rates and tenure) among trucking companies to assess the applicability of Freeman and Medoff's exit/voice argument. Unionization was associated with lower quit rates, higher tenure, a better compensation package, and stronger voice mechanisms. The relationship of unionization to quit rates and tenure becomes nonsignificant after accounting for compensation (pay and benefits), and voice mechanisms do not add explanatory variance. [source] Simulation of the Impact of the Recognition of Stock Options on the Earnings: The case of Canadian Companies,ACCOUNTING PERSPECTIVES, Issue 1 2005SILVA BODJOVA ABSTRACT One of the most controversial accounting issues pertains to stock compensation. In Canada, the Canadian Institute of Chartered Accountants (CICA) approved section 3870, Stock-based Compensation and Other Stock-Based Payments, on November 13, 2001, to take effect in January 2002. Section 3870 forces companies to "take a look at the real economic cost of most of the stock-based compensation mechanisms" (AcSB Bulletin, October 2001, 1). The adoption of section 3870 was aimed at harmonizing Canadian accounting practice with U.S. standards. The new standard, which was initially based on two American accounting standards - APB Opinion No. 25 and SFAS No. 123 - gave companies the choice of using either the fair value method or the pro forma disclosure of net income and adjusted earnings per share to account for stock-based compensation. The Accounting Standards Board (AcSB) nevertheless recommended that Canadian companies use the fair value method, which consists in estimating and recognizing the value of the stock options at the grant date. [source] Top-Down Control of Reed Detritus Processing in a Lake Littoral Zone: Experimental Evidence of a Seasonal Compensation between Fish and Invertebrate PredationINTERNATIONAL REVIEW OF HYDROBIOLOGY, Issue 2 2007Giorgio Mancinelli Abstract We investigated whether predatory fish exert a top-down control on reed leaf packs processing in a lake littoral zone through a trophic cascade. Exclosure experiments were repeated in summer and winter, under high and low natural fish abundance, respectively. Fish exclusion effects on detritus processing and fungal conditioning were consistent with trophic cascade predictions only in summer. In winter, however, results indicated that a trophic cascade was induced by predatory invertebrates. In both seasons, variations in detritivores abundance generally supported a cascade scenario, whereas several taxon-specific departures occurred during the experimental periods. We conclude suggesting that predators may continuously regulate leaf detritus processing in lake littoral zones, through a seasonal shift in the relative contribution of fish and invertebrate predation. (© 2007 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim) [source] Providing Nutrition Supplements to Institutionalized Seniors with Probable Alzheimer's Disease Is Least Beneficial to Those with Low Body Weight StatusJOURNAL OF AMERICAN GERIATRICS SOCIETY, Issue 8 2004Karen W. H. Young MSc Objectives: To examine whether providing a midmorning nutrition supplement increases habitual energy intake in seniors with probable Alzheimer's disease (AD) and to investigate the effects of body weight status and cognitive and behavioral function on the response to the intervention. Design: Randomized, crossover, nonblinded clinical trial. Setting: A fully accredited geriatric teaching facility affiliated with the University of Toronto's Medical School with a home for the aged. Participants: Thirty-four institutionalized seniors with probable AD who ate independently. Intervention: Nutrition supplements were provided between breakfast and lunch for 21 consecutive days and compared with 21 consecutive days of habitual intake. Measurements: Investigator-weighed food intake, body weight, cognitive function (Severe Impairment Battery and Global Deterioration Scale), behavioral disturbances (Neuropsychiatric Inventory,Nursing Home Version), and behavioral function (London Psychogeriatric Rating Scale). Results: Relative to habitual intake, group mean analyses showed increased 24-hour energy, protein, and carbohydrate intake during the supplement phase, but five of 31 subjects who finished all study phases completely compensated for the energy provided by the supplement by reducing lunch intake, and 24-hour energy intake was enhanced in only 21 of 31 subjects. Compensation at lunch was more likely in subjects with lower body mass indices, increased aberrant motor behavior, poorer attention, and increased mental disorganization/confusion. Conclusion: Nutrition supplements were least likely to enhance habitual energy intake in subjects who would normally be targeted for nutrition intervention,those with low body weight status. Those likely to benefit include those with higher body mass indices, less aberrant motor problems, less mental disorganization, and increased attention. [source] Pay Without Performance: Overview of the IssuesJOURNAL OF APPLIED CORPORATE FINANCE, Issue 4 2005Lucian A. Bebchuk In their recent book, Pay Without Performance: The Unfulfilled Promise of Executive Compensation, the authors of this article provided a comprehensive critique of U.S. executive pay practices and the corporate governance processes that produce them, and then offered a number of proposals for improving both pay and governance. This article presents an overview of their analysis and proposals. The authors' analysis suggests that the pay-setting process in U.S. public companies has strayed far from the economist's model of "arm's-length contracting" between executives and boards in a competitive labor market. In place of this conventional model, which is standard in corporate law as well as economics, the authors argue that managerial power and influence play a major role in shaping executive pay, and in ways that end up imposing significant costs on investors and the economy. The main concern is not the levels of executive pay, but rather the distortion of incentives caused by compensation practices that fail to tie pay to performance and to limit executives' ability to sell their shares. Also troubling are "the correlation between power and pay, the systematic use of compensation practices that obscure the amount and performance insensitivity of pay, and the showering of gratuitous benefits on departing executives." To address these problems, the authors propose three kinds of changes: 1)increases in transparency, accomplished in part by new SEC rules requiring annual corporate disclosure that provides "the dollar value of all forms of compensation" (including "stealth compensation" in the form of pensions and other post-retirement benefits) and an analysis of the relationship between the past year's pay and performance, as well as more timely and informative disclosure of insider stock purchases and sales; 2)improvements in pay practices, including greater use of "indexed" stock and options to limit "windfalls," tougher limits on executives' freedom to sell shares, and greater use of "clawback" provisions in bonus plans that would force executives to return pay for performance that proves to be temporary; and 3)improvements in board accountability to shareholders, including limits on the use of staggered boards and granting shareholders the right to nominate directors and propose changes to governance arrangements in the corporate charter. [source] Value of Multinationality: Internalization, Managerial Self-interest, and Managerial CompensationJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 1-2 2002Kenneth K. Yung In this paper, we examine the impact of managerial self-interest on the value of multinationality. Since agency theory also suggests that a divergence between the interests of managers and shareholders can be aligned by effective managerial incentive, we also examine the effect of managerial compensation on the value of multinationality. Our results show that for high- Q (Tobin's Q > 1) firms, investors do not associate the spending of free cash flow on multinationality with the problem of overinvestments. For high- Q firms, it is also found that the value of multinationality can be enhanced by effective managerial incentives. For low- Q firms (Tobin's Q < 1), it is found that the concern of managerial self-interest overwhelms the benefits of internalization, making multinationality a value-decreasing event. For low- Q firms, managerial compensation is also ineffective in promoting value-enhancing foreign direct investments. [source] Managerial Compensation and Capital StructureJOURNAL OF ECONOMICS & MANAGEMENT STRATEGY, Issue 4 2000Elazar Berkovitch We investigate the interaction between financial structure and managerial compensation and show that risky debt affects both the probability of managerial replacement and the manager's wage if he is retained by the firm. Our model yields a rich set of predictions, including the following: (i) The market values of equity and debt decrease if the manager is replaced; moreover, the expected cash flow affirms that retain their managers exceeds that affirms that replace their managers, (ii) Managers affirms with risky debt outstanding are promised lower severance payments (golden parachutes) than managers affirms that do not have risky debt. (Hi) Controlling for firm's size, the leverage, managerial compensation, and cash flow of firms that retain their managers are positively correlated, (iv) Controlling for the firm's size, the probability of managerial turnover and firm value are negatively correlated, (v) Managerial pay-performance sensitivity is positively correlated with leverage, expected compensation, and expected cash flows. [source] Doing Wrong Without Creating HarmJOURNAL OF EMPIRICAL LEGAL STUDIES, Issue 1 2010John M. Darley We investigate lay intuitions about the appropriate compensatory and retributive consequences of a wrongdoer putting another in harm's way when harm either does or does not result. Compensation tracked whether the harm actually occurred, though when harm has not yet occurred but might, participants prefer an escrow-like solution in which money will be available to the victim only if the risk matures into actual harm. Retributive sanctions (punitive damages, fines, prison terms) were largely unaffected by whether the harm materialized but were instead sensitive to whether the wrongdoer exhibited negligent or reckless conduct. Thus, subjects clearly differentiated between the retributive nature of punitive sanctions and the compensatory nature of restorative damages. Finally, subjects often assigned liability to the actor even when the risk-causing actions were not negligent,and in this way preferred a strict liability stance more than does the current legal doctrine. [source] Physician Shopping in Workers' Compensation: Evidence from CaliforniaJOURNAL OF EMPIRICAL LEGAL STUDIES, Issue 1 2006Seth A. Seabury Physician evaluations of impairment severity have a significant impact on the size of permanent disability benefits awarded to injured workers in workers' compensation. This gives both parties in a disputed claim the incentive to "shop" for physicians who will provide them with sympathetic evaluations. In this article we use data from the California workers' compensation system on competing physician evaluations for the same injury to study the extent to which the ability to select a physician results in a more favorable disability rating. We find that disability ratings based on evaluations from physicians selected by the applicant are 23 percent higher than those based on a neutral evaluation, while ratings based on a defense physician's evaluation tend to be about 5 percent lower. Moreover, we match these data to earnings loss data and estimate the extent to which applicant, defense, or neutral ratings best predict the outcomes of injured workers. The neutral ratings appear to do the best job of predicting earnings losses overall, though not by a substantial margin. [source] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||