Citation
Differences in adult adjustment and self-concept between employed and unemployed mentally handicapped males

Material Information

Title:
Differences in adult adjustment and self-concept between employed and unemployed mentally handicapped males
Creator:
Heaney, James B ( James Bernard ), 1944-
Publication Date:
Language:
English
Physical Description:
vii, 122 leaves : ill. ; 28 cm.

Subjects

Subjects / Keywords:
Age groups ( jstor )
Developmental disabilities ( jstor )
Disabled persons ( jstor )
Employment ( jstor )
Labor ( jstor )
Mental retardation ( jstor )
Self concept ( jstor )
Self perception ( jstor )
Unemployment ( jstor )
Work ethic ( jstor )
Adjustment (Psychology) ( lcsh )
Dissertations, Academic -- Special Education -- UF
People with mental disabilities -- Employment ( lcsh )
Self-perception ( lcsh )
Special Education thesis Ph. D
Genre:
bibliography ( marcgt )
non-fiction ( marcgt )

Notes

Thesis:
Thesis (Ph. D.)--University of Florida, 1981.
Bibliography:
Bibliography: leaves 110-120.
General Note:
Typescript.
General Note:
Vita.
Statement of Responsibility:
by James B. Heaney.

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
Copyright [name of dissertation author]. Permission granted to the University of Florida to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Resource Identifier:
000294420 ( ALEPH )
07726858 ( OCLC )
ABS0746 ( NOTIS )

Downloads

This item has the following downloads:


Full Text













DIFFERENCES IN ADULT ADJUSTMENT AND SELF-CONCEPT
BETWEEN EMPLOYED AND UNEMPLOYED
MENTALLY HANDICAPPED MALES








BY

JAMES B. HEANEY


A DISSERTATION PRESENTED TO THE GRADUATE COUNCIL OF
THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY




UNIVERSITY OF FLORIDA


1981

















ACKNOWLEDGMENTS


A note of appreciation is certainly in order for all those

who have given so freely of their time and expertise that this

endeavor may succeed.

Thanks to my wife, Kathy, who typed the first three evolving

drafts.

Thanks to Mrs. Martha Claflin, Dr. Elaine Beason, Dr. Tom King,

Ms. Judy lacino, Dr. Bill Boomer, Dr. Elizabeth Delaney, Ms. Janet

Yates, and Mrs. Dee Hand at Fort Hays State for their combined

patience, encouragement, and the "space" they allowed me in finish-

ing this.

Thanks to Mrs. Lee Ann Brunson, Mr. Lou Allen, Mrs. Wanda

Miller, and especially Mr. Jim Thomas for their help in locating

subjects and in finding places to test them.

Thanks to Mrs. Cynthia Sebrell Ratteree who monitored the tests

and was a true inspiration.

Thanks to my committee chairman, Dr. Stuart E. Schwartz, who

took me under his wing and made me crank, crank, crank until some-

thing worthwhile was produced. He was an inspiration both through

his concern for excellence and his example of diligence.










Thanks to Dr. James W. Hensel for insisting that I follow the

straight and narrow and for occasionally reintroducing me to reality.

Thanks to Dr. Brian DuToit whose objectivity from his outside

perspective kept my focus from becoming too narrow.

Thanks to Dr. Bob Algozzine who guided me through the trials

and tribulations of the research component of this work.

Thanks to Dr. Jim Whorton whose insights into vocational

programs for special needs students were invaluable.

Also special thanks to Dr. Myron Cunningham and Dr. Cary Reichard

for their assistance with this project.















TABLE OF CONTENTS



ACKNOWLEDGMENTS .

ABSTRACT .

CHAPTER I

INTRODUCTION .


Statement of the Problem
Purpose of the Study
Statement of Hypotheses
Delimitations .
Limitations .
Assumptions .
Definition of Terms .


CHAPTER II

REVIEW OF RELATED LITERATURE .

The Work Ethic in Western Society .
Summary . .
Employment of Mentally Handicapped Adults .
Summary . .
Adult Adjustment . .
Summary . .
Adult Adjustment of Mentally Handicapped Individuals .
Summary. . .
Self-Perceptions Held by Mentally Handicapped Persons and
Perceptions of Such Persons by Those Without Handicaps .
Summary .
Adaptive Behavior and Self-Concept Rating Scales .

CHAPTER III

PROCEDURES . .

Statement of Null Hypotheses .
Designs . .
Structural Models . .












Subjects
Verifiers


Data Collection .
Instrumentation .

CHAPTER IV

ANALYSIS OF DATA .

Statistical Treatment .
Statistical Analysis of Hypotheses
Hypothesis 1 .
Hypothesis 2 .
Hypothesis 3 .
Hypothesis 4 .
Summary .

CHAPTER V

DESCRIPTION OF RANDOM SAMPLE .

CHAPTER VI


. . 56
. . 58


. .
Tested
. .
* .
* .
* .
. .


SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

Summary .
Conclusions .
Implications .
Recommendations .

APPENDIX A LETTER OF REQUEST FOR SUBJECTS


B SOCIAL AND PREVOCATIONAL INFORMATION BATTERY .

C SELF-PERCEPTION INVENTORY .

D RAW DATA . .

REFERENCES . .

BIOGRAPHICAL SKETCH . .


. 86

. 86
. 89
. 92
. 94

. 96


98

101

104

110

121
















Abstract of Dissertation Presented to the Graduate
Council of the University of Florida in Partial
Fulfillment of the Requirements for the
Degree of Doctor of Philosophy


DIFFERENCES IN ADULT ADJUSTMENT AND SELF-CONCEPT
BETWEEN EMPLOYED AND UNEMPLOYED MENTALLY HANDICAPPED MALES

By

James B. Heaney

March,. 1981

Chairman: Stuart E. Schwartz
Major Department: Special Education

It was the purpose of this study to compare adult adjustment

scores and self-concept scores of 20 employed and 20 unemployed

mentally handicapped males between the ages of 18 and 54. Subjects

resided within the State of Kansas with slightly over half from

urban areas. Instruments tested successfully for reliability and

validity were administered to determine subjects' adult adjustment

skills and self-concepts. These instruments were the Social and

Prevocational Information Battery and the Self-Perception Inventory.

Analysis of variance was used to determine the existence of signifi-

cant differences in the mean scores of the groups involved. In

addition, employed subjects were asked if they considered themselves

adequately employed and unemployed subjects were asked if they thought

they could acquire and maintain competitive employment. Significant










others in the subjects' lives were asked their responses to the

same questions for verification. In order to determine whether

the subjects and verifiers agreed in their responses beyond chance

probability, the Fisher Exact Test was administered. To supplement

the Fisher Exact Test a ratio test was also given. Additional

analyses of variance were performed on variables of discrete age

groups and location in conjunction with employment status.

Results of the analysis of variance design applied to the adult

adjustment and self-concept instrument mean scores indicated that no

significant differences existed between employed and unemployed

subjects in those areas. Results of application of the Fisher Exact

Test to responses on job adequacy by those employed or employability

by those unemployed, matched with their verifiers, indicated agreement

between those employed and their verifiers and disagreement between

those unemployed and their verifiers. However, a ratio test showed

significant agreement between subjects and verifiers in both groups.

Using the supplementary analyses of variance mean scores, the highest

age group was determined to possess the lowest levels of self-percep-

tion. Specific suggestions were made for elaboration and diversifica-

tion of the research subject matter of this study.
















CHAPTER I

INTRODUCTION


The purpose of this study was to compare adult adjustment scores

and self-perception scores of employed mentally handicapped males

with those of unemployed mentally handicapped males. Justification

for this study rested in the researcher's questioning of the

variable of employability as a critical factor in association with

adult adjustment and self-concept as measured by specific instru-

ments demonstrating satisfactory degrees of validity and reliability.

Historically, employment has been considered a principal

criterion for determining successful adjust adjustment (Olshansky,

1972). Edgerton and Bercovici (1976), however, questioned the

relevance of employment to adjustment in a follow-up study of

deinstitutionalized mentally retarded adults. In Edgerton's original

study of this group, he concluded that many of the subjects "accepted

work as the quintessential means of proving themselves to be normal,

worthy human beings" (1976, p. 491). Slightly more than a decade

later, many members of the same group thought of themselves as "normal"

despite being unemployed (1976, p. 493). The apparent contradictions

between the first research and its follow-up regarding the influence










of work on adjustment were cause for concern by investigators. If

employment no longer demanded a pivotal position in one's life, a

reexamination of the present secondary curricular focus for

mentally handicapped students seemed in order. In addition, the

question arose as to what concept, if any, replaced the work ethic

in the handicapped individual's hierarchy of values.

The following research was primarily an attempt to gauge

whether handicapped males adjusted to the demands of society as

well when they were not working as when they were working as

measured by both an adult adjustment scale and a self-perception

inventory. Also, in order to shed additional light on the employ-

ment situation for handicapped adults, employed persons were queried

concerning the quality of their employment while unemployed persons

were asked their opinions of their own employability. Significant

others were used to validate each subject's response to the question

concerning adequacy of employment or employability.

Traditionally, vocational education authorities have con-

fronted the work ethic from a rather unified position. Brown

(1958) called work "an essential part of man's life which

gives him status and binds him to society" (p. 187). Herzberg,

Mausner, and Snyderman (1959) conducted a study in which they con-

cluded that the single most effective variable in raising the mental

health level of most persons was an increase in the capacity for

work motivation. Friedmann and Havighurst (1954) identified five

needs which the performance of work satisfied. They were the need

for income, time and energy expenditure, identification and status,










association, and meaningful life experiences. Yet Neff (1968),

in his comprehensive text entitled Work and Human Behavior, began

to question these assertions when he concluded "we are becoming

increasingly aware that the will to work is not a God-given natural

resource, like air and water" (p. 258). Terkel (1972) after inter-

viewing 136 laborers of varying occupations for his best seller,

Working, suggested that perhaps the psychological dehumanization of

modern American working conditions had blunted the traditional "work

ethic." The whirlwind social phenomena of the past two decades may

have altered the position of the work ethic in our society. However,

Wenrich and Wenrich (1974) who made sympathetic reference to several

of the more positive vocational findings above, felt that the work

ethic had retained its importance through the early 1970s.

The closest approximation to a percursor of this study was a

comparison between characteristics of employed and unemployed mentally

retarded males based on their respective backgrounds, evaluations, and

employer ratings (Kolstoe, 1961). Two critical variables distinguished

the two studies. First, Kolstoe's subjects had a median I.Q. of 76

which was in keeping with the earlier American Association on Mental

Deficiency (AAMD) definition of mental retardation being only one

standard deviation from the general population mean (Heber, 1959).

The upper limit for the range of subjects' I.Q.'s in the present study

was 69 on the Wechsler and 67 on the Stanford-Binet for those subjects

between 18 and 25. This was based on the revised AAMD definition in

which two standard deviations below the mean were principal determiners

of mental retardation (Grossman, 1973). Second, the earlier study gauged

successful adjustment according to impressions made on significant










others, i.e., vocational raters and employers. In addition to using

an outside adjustment scale, the present research followed the

suggestion of Edgerton and Bercovici (1976) and determined adjust-

ment through self-concept responses of the subjects themselves.

The assumptions that workers were better adjusted (Brown, 1958)

and had better self-concepts (Friedmann & Havinghurst, 1954) than

nonworkers, had for too long gone untested. This research repre-

sented the first step taken to apprise concerned professionals of

the situation as it existed in 1980.


Statement of the Problem

Employment has long been considered an essential criterion

for adult adjustment of mentally handicapped individuals (Olshansky,

1972). However, a recent study (Edgerton & Bercovici, 1976) cast

doubts on this allegation and concluded that continued "commitment

to a work-ethic may be increasingly counterproductive" (p. 494).

The problem for the present research study concerned employment as

an associate of work adjustment and self-concept. What was the

relationship between employment and the two variables of work adjust-

ment and self-concept among mentally retarded males?


Purpose of the Study

It was the major purpose of this study to compare adult adjust-

ment scores and self-concept scores of employed and unemployed










mentally handicapped males between the ages of 18 and 54. It was the

secondary purpose of this study to determine the subject's satis-

faction with his employment situation, if employed, and to determine

whether the unemployed subject was considered by himself and/or

significant others to be, in fact, employable. It was the tertiary

purpose of this study to investigate the possible effects of the

variables of discrete age groups and location, as well as employment

status, on the mean scores of the administered adult adjustment and

self-perception instruments.


Statement of Hypotheses


1. The independent variable of employment does not alter the

degree of adult adjustment of mentally handicapped adults as

measured by the Social and Prevocational Information Battery

(Halpern, Raffeld, Irvin, & Link, 1975).

2. The independent variable of employment does not alter the

self-concepts of mentally handicapped adults as measured by the

Self-Perception Inventory (Soares & Soares, 1974) (See Appendix B).

3. The independent variables of the subjects' rating of the

adequacy of their employment and the verifiers' rating of the

adequacy of the subjects' employment have no relationship (p. = .05).

4. The independent variables of the subjects' rating of their

employability and the verifiers' rating of the subjects' employ-

ability have no relationship (p. = .05).










Delimitations

The topic for this research was the comparison of the scores

on self-concept and adult adjustment scales of employed and un-

employed mentally handicapped males between the ages of 18 and 54.

Also addressed were the views of the subjects and significant

others in their lives on the adequacy of employment of those

employed and the employability of those unemployed. Subjects for

this study included 40 mentally handicapped males between the ages

of 18 and 54 who resided in the State of Kansas. In addition to

their sex, age, and mental status, subjects were chosen on the basis

of three criteria. They were required to reside outside of an

institution at the time of the study; they must have been considered

capable of competitive employment by qualified professionals; and

they must have expressed a willingness to become involved in the

study. Subjects were secured through the cooperation of the Kansas

Association for Retarded Citizens, local special education instructors,

and job placement coordinators of sheltered workshops.


Limitations


The age range of 18 to 54 excluded adults over 54 years of age.

This group (54 and above) was excluded as employment limiting

physical disabilities begin to take their toll in the mid 50's and

in later years retirement may have affected the research findings.

Females were excluded from the present study due to the expecta-

tion that a significant number of chosen mentally handicapped females










between the ages of 18 and 54 would have been employed as housewives.

Webster's New Collegiate Dictionary (1974) defined a housewife as "a

married woman in charge of a household" (p. 555). It was determined

by this researcher that the unavoidable extraneous variables which

would be introduced into a design in which housewives were included

would seriously threaten the validity of this study. These variables

included the lack of a formal wage arrangement, the inconsistency

of a job description, and the absence of a recognized employer.



Assumptions

For the purpose of this research the assumptions were made

that (a) both subjects and significant others responded in accord-

ance with their actual perception of reality in answering respective

questions and (b) individuals classified as mentally handicapped

were, in fact, mentally handicapped. Realizing that this classifi-

cation was arbitrary, no satisfactory measure of adaptive behavior

had, by the date of this study, been made available for research.


Definition of Terms

Advocate: one providing services to an unemployed mentally

handicapped individual; includes, in order of selection, voluntary

advocates, social workers, Supplementary Security Income contact

persons, VISTA volunteers, clergy, and associates who take an active

interest in the subject.










Mentally handicapped: mentally retarded; having been classified

as mentally retarded during one's public school career by one's

school psychologist or by the Division of Health and Rehabilitative

Services in later years by a psychologist appointed for determining

one's recipient status.

Mentally retarded: mentally handicapped.

Employed: presently salaried in a competitive occupational

position.

Rural: residential area having a population of less than 50,000.

Self-Perception Inventory (SPI): measure of how the subject sees

himself.

Social and Prevocational Information Battery (SPIB): series of

nine tests designed to assess knowledge of skills and competencies

widely considered critical for the ultimate community adjustment of

mentally retarded individuals.

Unemployed: presently unsalaried.

Urban: residential area having a population exceeding 50,000.

Verifier: one used for confirmation or substantiation.















CHAPTER II

REVIEW OF RELATED LITERATURE


This section divided the literature reviewed into six sub-

sections to be used as focal points for the study. The subsec-

tions are (a) the work ethic in Western society, (b) employment

of mentally handicapped adults, (c) adult adjustment, (d) adult

adjustment of mentally handicapped individuals, (e) self-percep-

tions held by mentally handicapped persons and the perceptions of

mentally handicapped persons held by significant others, and (f)

adaptive behavior and self-concept rating scales. Each subsection

was determined to be directly relevant to the research project.


The Work Ethic in Western Society

The status of the work ethic in Western society was of funda-

mental importance in the compilation of this research project.

Although much popular literature reported a serious ebbing of the

work ethic in Western culture, some writers disputed such an allega-

tion while others defended this alleged ebbing as a natural conse-

quence of poor management (Goodwin, 1972; O'Toole, 1974; Stencel,

1977; Tiffany, Cowan, & Tiffany, 1970).










Anthropologists in this century studied primitive tribes

whose language usage may shed some light on the origins of the

Western work ethic. Although the languages of the tribes of

interest were exceedingly rich in labeling areas of their respec-

tive concerns, there existed no words denoting "work." The lack

of a term for work did not, however, mean that work was absent from

these societies. On the contrary, work was such an integral part of

everyday life that to be awake was synonymous with to be working.

This could well have been the situation in the preliterate West

(Kransberg & Gies, 1975).

In any case, by the Classical Era in the West, an alternative

to work had been embraced at least in theory. Aristotle con-

sidered leisure to be the only life for which man was fit. Six

centuries later, St. Augustine described the ultimate reward for

a good and just life as the eternal leisure of heaven. Work was

regarded as the penalty mankind paid for original sin.

Although the work ethic, as it is known today, began to take

shape in Catholic doctrine as early as the Sixth Century, A.D.,

the zeal of the Protestant Reformers such as Luther and Zwingli

was a powerful catalyst in this transformation. In addition to

beggars, courtiers and clergy were called upon to toil in order

that they justify their sustenance. In Zwingli's words, "In the

things of the life, the laborer is most like to God" (Tawney, 1926,

p. 115). Attacking the monastic life of contemplation and prayer,

Martin Luther felt there was no substitute for a tangibly productive










vocation. He considered work to be the base and the key to life

(Kransberg & Gies, 1975).

Many of the explorers and early settlers who came to the New

World did not share this veneration for labor. Columbus himself,

upon seeing the tropical vegetation along the verdant shoreline,

described the land as a second Garden of Eden where food was avail-

able simply for the picking. Over a century later and a thousand

miles north, Captain John Smith of Virginia was commissioned to map

the relatively barren New England coast. He was so impressed by

its potential that he concluded a three-day work week would

sufficiently provide for any settler. No suggestions were made of

somehow filling this proposed idle time with work. As the 13

colonies became settled, a distinctive leisure class was formed.

This was composed of men who owned slaves or hired indentured servants.

Man's worth and freedom was inextricably bound to his exemption from

work. Gentility became synonymous with leisure (Rodgers, 1978).

By 1850 the Protestant work ethic was firmly entrenched in the

United States with its greatest emphasis in the populous North. The

seeds had been planted by the Puritans and Quakers who brought with

them from Europe the concepts of methodical labor and avoidance of

idleness as articles of faith. During the 17th and 18th centuries

in Europe, the spark of the work ethic was kindled by the writings

of philosophers and economists. John Locke, the English essayist,

put forth the proposition that all property acquired its title from

labor. Equally heretical to the landed gentry was the claim by

Adam Smith, the Scottish economist, that labor was the ultimate source











of wealth (Rodgers, 1978). From 1820, when immigration records

were first kept, to 1850 almost one-half million European

immigrants came to America, many espousing the Protestant work

ethic (Braddock, Neuhauser, & Reed, 1978). By the mid-nineteenth

century, the thriving middle class in the northern part of the

United States was decidedly influenced by this concept. At either

end of the American spectrum, the wealthy aristocracy or the urban

laborers, the reception to the work ethic was considerably less

enthusiastic. Possibly due to the relative sparsity of the leisure

class in the North, the middle class was able to set the tone for

the rest of society. As the idea of labor for its own sake gained

in popularity, politicians seized the concept and used it for their

own purposes. The statesman, William Evarts, became but one of many

when he said "Labor, gentlemen, we of the free States acknowledge to

be the source of all our wealth, of all our progress, of all our

dignity and value" (Foner, 1970, p. 12).

Contrary to common belief, the work ethic which blossomed in

the United States around 1850 did not consist solely of the

Protestant moralists' fear of idleness and the doctrine of usefulness.

Two other ingredients caused it to transcend fundamentalist religious

values in its attractiveness. These additional elements were the

dream of success and the idea that work could be both a creative and

a fulfilling act (Rodgers, 1978). Literature on the self-made man

who toiled incessantly and was rewarded by fame and wealth burgeoned

across America. Referring to the creative potential of the laborer,

Thomas Carlyle wrote "A small Poet every Worker is" (1918, 236).










Inherent contradictions, which would later be forced into the

open, were not addressed at the time. These contradictions

included the disparity between creativity and self-repression on

the one hand and between social obligation and private benefits

on the other. To encapsulate the Protestant work ethic of 130 years

ago, work was considered to be the focus of the moral life. It put

men to good use in a world of economic want. It combatted doubts

and temptations that fed on idleness. It allowed for deserved wealth

and status. Finally, it permitted a man to leave the imprint of his

own mind and skill on the material world.

Industrialization, which was only emerging in the United States

in 1850, went a long way toward destroying the work ethic as it was

at that time conceived. The industrial age in America received its

first impetus in 1820 when a textile mill was built in Lowell,

Massachusetts. Soon other mills sprang up and the small craft shop

was unwittingly put on the long, but inevitable, road to extinction.

Factories existed prior to this time, but rarely consisting of more

than a dozen laborers. Gutman (1973) described a New York ship-

building factory of the mid-nineteenth century as the scene of

frequent refreshment breaks, some of them for grog, where a high

degree of cameraderie was evident. This type of labor leniency was

representative of the time (Kranzberg & Gies, 1975). Industrializa-

tion eroded the existing work ethic in several ways. Before the

Civil War in the United States, Northerners decried slavery as

inhumane in that poor laborers toiled for the wealth of their masters.

In the latter part of the nineteenth century, when Northern factories










employed thousands of workers in substandard conditions with low

wages, the parallel to the antebellum South was inescapable.

Flying in the face of the success literature of the time was the

eventual realization of industrial workers that climbing the

vertical ladder to wealth and fame was, for most workers, just

fiction. Any hope for artistic fulfillment went by the wayside

when "efficiency" for increased production became the byword of

the day. Finally, the asceticism of the Protestant ethic gave way

to middle-class accumulation. One of the most significant changes

during the industrial period was the moralists' relegation of work

from an essential to an instrumental virtue (Rodgers, 1978).

In 1866 the first convention of the National Labor Union was

held. This was the first national labor federation in the United

States. It lasted hardly a decade but was soon replaced by the

more resilient American Federation of Labor. As the Labor Movement

increased in strength, many of the harsher working conditions were

improved (Karson, 1958). However, the destructive effects of

industrialization on the work ethic appear not to have been

seriously altered.

Two depressions and two World Wars between 1870 and 1945

effectively punctuated the labor concerns of the American worker.

After World War II, a second threat to the work ethic appeared in

the form of mechanization/automation. By 1960 the age of automation

had caused service workers (salespersons, government employees,

maintenance workers, etc.) to replace those in manufacturing as the

predominant work group in the American labor force. Automation










caused further specialization in employment positions from the

already-specialized industrial age. The few crafts which remained

or evolved in the modern age were subdivided in the constant

corner-cutting toward greater efficiency and higher productivity.

The creation of "knowledge jobs" in which supervisors decided for

maintenance men which areas received priority was but one example

of this phenomenon. Thus, little room for personal fulfillment

appeared to be afforded the worker. A study by Heisler and Houck

(1977) concluded that no more than 25 percent of industrial workers

were job-oriented. The study admitted that most would continue

working even if they did not need the money but only because they

were presented with no meaningful alternatives. Blue collar workers

were seen as still accepting the need for work butnot expecting

much fulfillment from their present job. Tiffany et al. (1970)

reached the dreary conclusion that "income has become the sole

standard of work satisfaction" (p. 104).

The question inevitably arose as to the role the American

welfare policies of the 1960's and 1970's played in the degeneration

of the work ethic. Evidence presented, both against and in favor of

the present welfare system, left the issue in doubt. According to

Goodwin (1972), the recipients of welfare valued work initially as

much as the mainstream of society. However, they tended to lose

interest in work when they discovered that their efforts to acquire

and maintain employment were futile. Stencel (1977) wrote about

the current disdain for the work ethic among teenagers, especially

black youth. Four elements worked against the successful job










maintenance of this subgroup. They possessed extremely limited job

qualifications; welfare kept them in food, clothing, and housing;

an integral component of their social system was dependence on

women; and, most importantly, "easy money" (through illegal activity)

was readily available. This study showed that all teenagers

exhibited a disregard for the work ethic. They became more demanding

about the kind of work they would do, their hours of employment, and

the amount of money to be earned, while at the same time, exhibited

shoddy work habits. Noticeable deficits were observed in punctuality,

cooperation with peers, acceptance of supervision, and combining

personal problems with the employment situation. While the effects

of welfare on the work ethic were inconclusive, there was little

disagreement that the American welfare system as it existed was not

the answer to America's poverty problem (Costello, 1977).

In a vocational education text, Wenrich and Wenrich (1974)

insisted that the old-fashioned work ethic continued to thrive in

this country. It was, perhaps, telling to note that none of the

references they cited (Brown, 1958; Friedmann & Havighurst, 1954;

Herzberg et al., 1959) in support of this proposition had been

published within the past two decades when the brunt of automation

had been felt. In contrast to the Wenrich and Wenrich work, Terkel

(1972) spoke of the daily humiliations of work, of workers who

compared themselves to robots, whose only human actions were at the

beginning and end of the work day. "In between, I don't even try to

think" (p. 5). Neff (1968) asserted that some people did not really

succeed in work in spite of having the requisite mental and physical










abilities. Edgerton and Bercovici (1976) found that their subjects

rarely mentioned work as being necessary for their self-esteem.

They viewed work not as fulfilling, but as a means to purchasing

power. Those on welfare were neither self-conscious about the

fact nor eagerly searching for employment.

An independent task force, headed by James O'Toole, recently

issued a report on the relationship between work and the quality

of life (O'Toole, 1974). Much of the blame on the recognized lack

of incentive to work industriously was placed, not on the individual

worker, but on the entire philosophy upon which the American work-

world exists. According to much of the evidence amassed in the report,

high absenteeism, "soldiering" on-the-job, and voluntary unemployment

are basically unorganized rebellions against dull, meaningless jobs.

Other causes of discontent were the attempted molding of human

workers into time-efficiency machines by adherents of Taylor's

scientific management movement (1911), the hugeness of work organiza-

tions relegating the individual laborer to an increasingly minute

position within the organization, and the gradual yet continual

attrition of self-employment options. Comparing the fledgling

worker movement toward better quality of life with the Negro and

woman's equality movements of the past two decades, O'Toole

hypothesized three events which would be necessary before a wide-

spread demand for change could occur. First, conditions must have

been improving. Second, the issue must have been crystallized and

finally, possible alternatives must have been known. The author

contended that each of these events were occurring but at an early










stage. His suggestions for the improvement of the quality of the

working life included the redesigning of jobs, increased wages for

those jobs considered the least desirable and mid-career training

for those in undesirable jobs who would otherwise be faced with no

options until retirement or death.



Summary

The preponderance of available literature on the work ethic

in the United States pointed to a disintegration of the concept due

to the inclusion of two variables in the labor situation during the

past century-and-a-half. Industrialization made its full impact

felt in the latter half of the last century and automation added

its thrust during the past 30 years. Whatever the causes of this

unsettling predicament may appear to have been, the research on

America's newest group of workers, adolescents, gave little promise

for improvement in the near future. However, the problem is being

increasingly recognized for what it is, which is an important step

in its eventual remediation. Efforts such as O'Toole's, if heeded,

may be a crucial second step in the resolution of this national

dilemma.


Employment of Mentally Handicapped Adults

This subsection of the Review of Relevant Literature deals with

mentally handicapped adults as workers. As is evident from the

following, the handicapped worker's status has been subject to the

foibles of influential employers and educators during his lifetime.










Little is known about the vocational success of mentally handi-

capped persons in the United States prior to the twentieth century.

Between 1776 and the mid-1800's adolescents were apprenticed to

skilled craftsmen for job training. However, few such positions

were available to handicapped individuals as the competition for

apprenticeship was vigorous and retarded persons could expect to

perform unskilled labor at best. In 1848, Samual Gridley Howe

established the first training program for those with mental retarda-

tion. This approach, which began a trend, emphasized the acquisition

of a specific occupational skill as the sole prerequisite for success-

ful employment of a mentally handicapped worker. By 1890 job failures

among retarded persons caused educators to rethink their strategy of

relying on a specific job skill. In fact, between 1890 and World War

I, little in the way of vocational training was attempted. This was

a period of paternalistic treatment in which handicapped persons

worked in institutions but were not trained in acquiring skills

(Hewett & Forness, 1974).

In 1916, Bernstein organized a colony in upstate New York.

This colony consisted of mentally retarded persons who were released

from an institution, participating in supervised labor and living

together in group homes. By 1921 the number of colonies had

expanded to the degree that one-third of the educable mentally

retarded institutional population of New York State had moved into

colonies and were productively working. The same year in New York

City a private agency, the Vocational Adjustment Bureau, was

established to find jobs for mentally retarded and emotionally











disturbed individuals. In the meantime, World War I had taken

place, putting many non-handicapped persons into uniform and many

mentally retarded, at least temporarily, into their vacated

positions (Hewett & Forness, 1974). Some deinstitutionalized

retardates who found employment at this time were described by

Fernald (1919).

Just as its predecessor, World War II caused the opening of

many employment opportunities for retarded workers. In 1943

the Barden-LaFollette Act was passed which added Office of Vocational

Rehabilitation services to mentally retarded persons. Twelve years

later, an important step forward was taken in employment opportunities

for mentally handicapped persons, when the New York City public

schools and Office of Vocational Rehabilitation combined their

efforts and established a formal cooperative program. Over much of

the country this example was followed (Brolin, 1976).

Beginning in the 1950's and continuing until the present, docu-

mentation of vocational efforts of mentally handicapped individuals

h-s been extensive. A report was received of a survey of 1,144

mentally retarded persons considered uneducable showing that 14

percent of the women and 26 percent of the men were gainfully

employed (City of Birmingham, England, 1956). No mention was made

of any training attempts for these people. In 1960, mentally

retarded workers and nonhandicapped (but low socio-economically-

based) workers who had graduated from the same high school were

compared in employment situations as well as other areas. Handicapped

workers had a significantly higher unemployment rate, received










lower wages, and labored at lower status jobs than members of the

comparison group (Peterson & Smith, 1960). Dinger (1961) emphasized

the positive vocational adjustments of retarded adults. He conducted

a study in which he determined that over 83 percent of those who

had graduated from or otherwise left the public school system in

Altoona, Pennsylvania, were either employed, continuing their

education, or working as full-time housewives. Forty-two percent

of those queried who still lived in Altoona were receiving higher

wages than a beginning Pennsylvania school teacher ($3,600 in 1958).

Countering Dinger's employment findings, Keeler (1964) reported

that in San Francisco area only 40 percent of the mentally handi-

capped population was employed either full or part-time. However,

Baller, Charles, and Miller (1967) found that in Lincoln, Nebraska,

almost 80 percent of the former students with I.Q. scores of less

than 70 were fairly regularly employed. Kidd (1970) concurred by

determining that 86 percent of the former students of educable

mentally retarded (EMR) classes in an urban area were employed full-

time. Several other studies have been completed, giving the employment

situation of mentally handicapped adults high marks (Kelley & Simon,

1969; Posner, 1970) or low ones (Brolin & Wright, 1971; Tobias, 1970).

Due to the multitude of conflicting reports, coupled with the lack of

definitive criteria for vocational success, no firm statement can be

made at this time concerning the state of the art of the employment

situation for mentally handicapped adults.










More light can be shed on the determiners of successful

employment for a retarded individual. As was mentioned earlier,

in the last century a specific job skill was thought to be the only

essential ingredient for a handicapped worker to succeed. By the

turn of the century, this idea was recognized as being incorrect,

but rather than attempt a different tack, vocational habilitation

was largely ignored. In the late 1960's researchers began to look

for significant variables in vocational success for retarded

individuals. A study by Chaffin (1968) pointed to the rate of

production as being an important component of success. Also shown

to be critical success factors were manual dexterity (Sali &

Amir, 1971) and language and communication skills (Fiester &

Giambra, 1972). Of extreme importance was the finding of indepen-

dent researchers that neither specific job skill nor intelligence

within the range of educable mental retardation were critical

variables for employment success. Instead, personal adjustment

skills and work habits were found to be of prime significance for

job acquisition and maintenance (Domingo & McGarty, 1972; Neuhaus,

1967; Sali & Amir, 1971).

Several recent studies addressed job satisfaction as it

related to performance, severely handicapped workers and the current

plight of the retarded worker. Talkington and Overbeck (1976)

explored the relationship between expressed satisfaction or

dissatisfaction with work assignments and the actual performance

of these assignments. The results mirrored those of similar studies

performed with nonhandicapped populations. Job satisfaction was










found to be highly related to attendance, reliability, and general

efficiency.

Two studies related to the severely mentally handicapped

worker. Jacobs (1978) contested Wolfensberger's (1967) statement

that farming as a variable employment source for severely retarded

workers was no longer practical by citing his own experiences with

an agricultural project in the rural Southeast. There severely

retarded trainees were taught to glean crops after harvesting.

Gleaning is the collection of the remainder of the crops left

over after the crops have been harvested. He predicted an eventual

annual income of as much as $5,000.00 with as little as 20 percent

of the cost of a sheltered workshop. Most importantly, the

farmers were beginning to recognize a need for these workers and

were scheduling their services months in advance. Bellamy, Inman,

andYeates (1978) performed research on three severely retarded

workers in a sheltered workshop where cable harnesses were manu-

factured. The three workers were given $.02 instead of $.01 if their

harnesses were completed before a set timer went off. This timing

was calculated on the average completion time for the subjects

which was gauged earlier. Under the timer contingency method two

of the three subject's production rose such that it approached the

industrial time standard of nonhandicapped workers. In addition to

a reduction in task completion time, day-to-day production consistency

rose sharply.

According to Razeghi and Davis (1979), the situation of the

retarded worker at the end of the 1970's was a bleak one with few










causes for optimism. As recently as 1974, the authors stated,

only two percent of the 13 million students served in vocational

education were handicapped. Citing Hightower (1975) the authors

claimed that only 21 percent of the educable mentally retarded were

fully employed, 40 percent were underemployed, and 26 percent were

unemployed. However, the coordination of the efforts of the

United States Office of Education and the Rehabilitative Services

Administration may result in a positive change for this subgroup of

American society. By consolidating relevant aspects of their

policies toward handicapped persons, these two government agencies

were in the process of combining the strengths of recent legislation

on the rights of the handicapped.



Summary

Beginning with the history of the employment of mentally handi-

capped persons in the United States, this section of the review of

relevant literature examined numerous studies on their vocational

success. Conflicting findings and the lack of a firm definition

of vocational success resulted in no conclusion being accepted

regarding this concept. Inroads within the past decade have been

made concerning critical factors in vocational success for retarded

workers. Recent research with severely mentally handicapped workers

showed them accomplishing vocational goals considered impossible

only a few years ago. Finally, vocational education was reported as,

until recently, shirking its obvious obligations toward the handi-

capped. The same study gave the unemployment rate of educable










mentally retarded individuals as several times that of the

regular work force.


Adult Adjustment

According to Eisdorfer and Lawton (1973) a consistent

developmental perspective of the human personality, from infancy

through old age, has yet to be published. Having discovered

little to dispute this assertion, the present researcher presented

different fragmented perspectives as they appeared in modern psycho-

logical literature.

The concept of adjustment was borrowed by psychology from its

biological origins in Charles Darwin's philosophy of "survival of

the fittest" (1859). Just as man is influenced by physical demands,

he also must make certain adjustments to social pressures. These

are demands which arise from living interdependently with others.

The pressures begin when the infant is expected to accede to the

parents' expectation that he will acquire proper values and behavior

patterns. They continue through much, if not all, of adulthood

when the parents continue their expectations, now regarding marriage,

career, residence, and life style (Lazarus, 1961). The demands to

which the individual must respond are of two kinds. They are

external and internal demands. External demands arise from social as

well as physical conditions of existence. Beginning with simple

tasks, such as self-feeding in early childhood, the demands subtly

progress as the child matures psychologically. Gradually, concepts

and values become components of his repertoire. If the child fails










to comply with the parents' expectations, he is greeted with dis-

approval and other negative consequences. If the child's

behavior measures up to his parents' demands, he is rewarded

with approval and other positive consequences. Internal demands

begin with physical needs within the individual, such as the need

to drink, to eat, or to eliminate waste. During development,

internal social needs arise. These include the need for human

companionship, for social approval, for self-esteem, and for love.

Demands can cause conflicts in one of three possible ways. Two

internal needs can be in opposition to each other; two external

needs can be incompatible; and an internal need may oppose an

external demand. An example of two conflicting internal needs

occurs when one's desire for love and approval must be weighed against

the desire for social prestige. The competition for the prestige

could easily result in diminished love and approval. External

demands could be opposed when each parent attempts to influence the

offspring's personality in different directions. The third conflict,

internal versus external needs, can be illustrated in the parents

sending their son to a boarding school for academic development

when the child is in extreme need of parental companionship (Lazarus,

1961).

Adjustment can be classified into one of two types, achievement

or process. As achievement, evaluation is implied. In this

situation four classes of criteria may be used. These are psycho-

logical comfort, work efficiency, physical symptoms, and social

acceptance. Lazarus (1961) admitted to certain limitations in










applying the criteria. Cultural relativism cannot be totally

removed as a variable. That is, different cultures apply different

standards for behavior. Second, someone may be considered well-

adjusted by one of the four criteria and maladjusted by another.

Third, even within one culture, "adequacy" of adjustment is an

arbitrary term, as yet bound by no standard. Adjustment as a process

focuses on how exactly does one adjust. Two types of adjustment

processes have been named. The first consists of the modification

or inhibition of internal impulses. The second results in the

alteration in some way of the environmental demand.

Piaget (1952) incorporated the two types of adjustment processes

into his theory of cognitive development. For Piaget, intelligence

is defined as an adaptive process in which there is a balance between

assimilation and accommodation. Assimilation is the process by

which the individual fits the environment to biologic or mental

systems already in existence. Accommodation is the process by which

the individual modifies himself in order to fit the environment.

Riesman (1950) drew a dichotomy between the inner-directed and the

other-directed individual. The former carries his values and

standards of conduct with him and does not change them to accommodate

the social climate of the times. The other-directed person is easily

influenced by outside pressures to change his value system.

Just as Piaget's last developmental stage, formal operations,

begins at approximately 11 years of age, most developmental theories

concentrate on the childhood years. The above perspectives are no

exception. They were summarized in this review in order to set the










stage for adult adjustment. Yet before focusing on the psycho-

logical development of the adult, the preceding period must be

briefly addressed, that of adolescence. Garrison, in his

Psychology of Adolescence (1965), used Maslow's hierarchy of needs

as a basis from which to determine the needs of the adolescent.

In order of importance, these needs are physiological, safety,

belongingness and love, status or esteem, and self-actualization

(Maslow, 1954). By adolescence the last three needs have achieved

predominance. Using a 90 item questionnaire, Lucas and Horrocks

(1960) were able to subdivide these needs further and develop a

hierarchy based on the responses of 725 adolescents. Through factor

analysis five identifiable needs emerge. In order of priority these

are recognition-acceptance, heterosexual affection and attention,

independence-dominance regarding adults, conformity to adult expecta-

tions, and academic achievement. As the youth matures, the possibilities

of frustration due to the inability or delay in satisfying these needs

increase. Areas of activity in which these outlets may be found

include relationships, work, recreation, community service, mis-

behavior or delinquency, and neurotic traits and illness (Laycock,

1950). Any one of four types of adjustment may occur when an

adolescent is frustrated in his efforts to satisfy a need. He may

continue toward the goal, compromise the goal, distort the original

goal, or withdraw entirely from the goal (Garrison, 1965).

Although many theories of adult psychological development exist,

few theorists are in basic agreement on substantive issues in the

field. According to Levinson (1978) the most promising school of










thought in this area is that which splintered from Freud's school

of depth psychology. This theory of personality included both

conscious and unconscious aspects and showed how childhood

personality development had a great influence on one's adult life.

The father of the modern study of adult development is considered

to be Carl Jung who was an early disciple of Freud and broke away

in 1913 (Levinson, 1978). Jung differed from Freud in two important

spheres. First, he believed Freud focused too narrowly on childhood

development and its influence on adult problems, conflicts, and

creativities. Second, Jung felt that Freud's clinical background

caused him to overemphasize psychopathology and internal processes

and thereby neglect social institutions, religion and mythology. Jung

viewed the young adult as one caught up in emotional involvements

and childhood conflicts. He has difficulty coping with the demands

of family, work, and community. At approximately 20 years of age

his personality has not yet had time to achieve full growth. The

next period of fundamental personality change occurs at around 40

years of age. Here again individuationn" begins. Individuation

means the process of a changing relationship between an individual

and his "self" and also a changing relationship between an individual

and the external world.

A second former devotee of Freud who has had an enormous

influence on modern conceptions of adult psychological development

is Erik Erikson. As his theory evolved, Erikson gravitated toward

Jung, differing in large extent only in his refusal to incorporate

Jung's elements of mysticism. Erikson saw the life cycle as a










series of eight ego stages. The first four cover early and middle

childhood (Erikson, 1950). The fifth stage, which is called

Identity vs. Identity Confusion takes place during adolescence

and extends into the Early Adult Transition. The sixth stage,

entitled Intimacy vs. Isolation, occurs in one's twenties. The

last two stages, Generativity vs. Stagnation and Integrity vs.

Despair, take place at around 40 and 60 respectively (Erikson,

1950).

Summarizing current theories of adult personality, Knox (1977)

defined several central themes. The principal theme, in his

opinion, is "the shifting manner in which the person strives to

maintain and enhance his or her sense of self from late adolescence

and young adulthood through middle and old age" (p. 317). Decision-

making, requiring assertiveness, goal setting and self-directedness,

is another theme in adult personality. Decisions result in conflicts

and conflicts (e.g., between personal and social gains) involve

feelings and attitudes. The probability of conflict with age

peers increases with age as the range of individual differences

in most personality characteristics widens between early young adult-

hood and the beginning of old age. Perceived well-being increases

from late adolescence to early adulthood, decreases in early middle

age, goes up again in late middle age before retirement, and

declines again through old age (Knox, 1977).

The fast pace of American society with its constant state of

flux has taken a definite toll on the personality of its citizens

according to Putney and Putney (1964). Distinguishing between the










"normal" (as defined in the cultural relativity of a society) and

the "natural" (which satisfies human needs), the authors insist

that normal neuroses are the rule rather than the exception in

society. Neurosis is defined as an internal, nonorganic barrier

to need fulfillment. Only the relatively rare truly autonomous

person has both the ability and the disposition to conform when

conformance is functional and to innovate when normal behaviors

would leave one's needs unsatisfied.

Recognizing the psychological adjustment problems in modern

society, Tiffany et al. (1970) noted that a new category of mental

disorder was inserted in the American Psychological Association's

Diagnostic and Statistical Manual of Mental Disorders of 1968.

The new category concerned social maladjustments without manifest

psychiatric disorder in which occupational maladjustment appeared.

This classification gave legitimacy to the claim that adjustment

to the world of work was becoming a significant concern to the

medical profession.



Summary

This review of relevant literature on adult adjustment began

with the origin of the concept of adjustment with Darwin. Both

physical and psychological aspects of adjustment were presented,

as well as the differentiation between internal and external needs.

Brief summaries of the theoretical perspectives of the founders of

modern developmental psychology were given. The central themes

around which topical adult personality theories are based were










enumerated. The position of normal neuroses in modern society

was addressed and, finally, the possible influence of work on

today's adult adjustment was mentioned.


Adult Adjustment of Mentally Handicapped Individuals

From the establishment of the first experimental school for

"idiotic" children in Massachusetts in the 1840's, special educators

have professed the desire that the retarded individual be given the

services necessary to attain social and vocational competency upon

maturation. The extent to which this goal has been accomplished or

is within range is reflected in the findings of researchers of adult

adjustment of mentally retarded persons.

Throughout much of the second half of the nineteenth century,

institutionalized mental retardates in America were given access to

a substantial degree of vocational training. This training was

Provided with the assumption that the benefactors would in due time

return to their former residences fully habilitated as productive

citizens. By the 1890's the image of the resident of the state

school for the retarded had regressed from that of potential

producer to burden. Three reasons may be ascribed for this failure

to adapt. First, it was popularly thought at the time that only

specific skill training was needed to prepare the retarded individual

for life outside the residential school. Second, no standardized

test to measure intellectual functioning had yet been produced whereby
levels of retardation could be distinguished. Thus, a significant

proportion of the students were severely and profoundly mentally










handicapped. When these individuals did not progress at a satis-

factory rate under the traditional educational methods of the era,

the entire effort was called into question. Third, many of the

residents of state schools were from low socioeconomic backgrounds.

As they had not been trained at the schools in daily living or

personal-social skills, these individuals could not reasonably be

expected to function totally independently upon job placement.

The alternative, a return to their families, was often considered

debilitative due to the marginal existence of the families

(Goldstein, 1964).

Fernald (1893) estimated that only 15 percent of the inmates at

Waverly Institute in Connecticut had the potential for economic and

social independence. Most of the rest could be trained to work on

the grounds at Waverly in exchange for their keep. Later, in a

follow-up study of 1,537 former Waverly inmates who had been dis-

charged during the period between 1890 and 1914, Fernald (1919) was

forced to admit that his early estimates of adjustment success were

incorrect. Most of the dischargees had been given little preparation

for independent living, yet deinstitutionalization was considered

successful for the majority of those who could be located.

In 1916, a man named Bernstein began organizing "colonies" out

of Rome State School in upstate New York. Colonies were semi-

independent facilities which housed students who performed super-

vised labor and thus supported themselves. Within five years,

one-third of the mildly retarded population of New York were either

on leave, on parole, or in colonies. In 1921, in New York City, the









Vocational Adjustment Bureau was established. The function of this

private agency was to find jobs for those with diagnosed emotional

disturbance or mental retardation. In the 1930's, placement of

mentally retarded individuals with families in the community for

care and supervision was introduced (Hewett & Forness, 1974).

A large number of studies on the adjustment of mentally retarded

adults were reported between World War I and the 1950's. Matthews

(1922), in another Waverly study, followed the careers of 100 male

adolescents paroled from the institution. This was a selective

group as each had participated in an organized training regimen prior

to discharge. All but three boys were considered to have made a

satisfactory adjustment to community life. During this period,

criteria for successful adjustment were based on material found on

police and complaint records, marriage records, and any other data

collection on public file. If the individual had avoided public

notice, he was regarded as adjusted. Little and Johnson (1932)

studied the adjustment of parolees from Laconia State School between

1925 and 1930. An 83 percent success rate was determined. Coakley

(1945) reported that the severe shortage of domestic manpower during

World War II created job openings for retarded workers. When the

subjects of Coakley's research attained employment, in spite of

previous mediocre job records, these people were able to maintain

their jobs throughout the duration of the war. Saenger (1957)

studied the adjustment of severely and moderately mentally retarded

adults in New York City between 1929 and 1955. He determined that

two-thirds of the population were living in the community and, of these,

over half impressed the author as being in socially acceptable physical

and mental states.










Adult adjustment studies were abundant in the 1960's.

Peterson and Smith (1960) compared retarded adults with those of

normal intelligence in terms of educational, work, home and family,

and civic characteristics. They noted significant discrepancies

favoring the nonhandicapped population in every area. A recommenda-

tion was made to prepare for adult adjustment of retarded persons

through a well-organized preparation program in the senior high

school. In a Pennsylvania study, Dinger (1961) found mentally

retarded adults to be considerably better adjusted than reported

by Peterson and Smith. Furthermore, he lamented the predominance of

research on the deviancies of retarded individuals and suggested

more emphasis on their respective strengths. Although anecdotal in

nature, Butterfield's (1961) description of an adult with Down's

syndrome and a Stanford-Binet I.Q. range of 28 to 36 appeared to be

a step in the direction suggested by Dinger. As a 32-year-old adult,

this individual "does all of the housework. He does the washing and

ironing, vacuums, makes beds, washes the floors and windows, takes

out the rubbish, runs all of the errands and pays all the bills"

(p. 445). This was a situation in which institutionalization was

recommended and public school educational services were denied

(after age 12). At the same time, Windle, Stewart, and Brown (1961)

pointed toward poor work performance and inadequate interpersonal

relations as the chief causes of failure of institutionalized persons

in vocational leave situations.

Three important longitudinal studies on the adaptability of

retarded individuals were published in the mid-1960's. Edgerton










(1967) described the day-to-day lives of 48 persons who have been

discharged from a state hospital for the mentally handicapped in

California. A central factor in their lives was the stigma

attached to retardation. They attempted, on every occasion, to

cover up the fact that they bore this undesirable label. Under

the pretense that one's watch or glasses were broken, the time-of-

day or sign that identified a bus were asked. Only through the

assistance of unofficial advocates was even marginal adjustment

considered to be achieved. In a follow-up of Baller's (1936, 1939)

earlier research, Baller, Charles, and Miller (1967) showed a mean

gain in I.Q. of 28.6 points for subjects studied over a period of

45 years. This finding flew directly in the face of claims that

measured intelligence was static. Kennedy (1948, 1966), in a

follow-up report comparing retarded individuals with peers of normal

measured intelligence in Connecticut, found considerable upward

employment mobility for the handicapped persons but at a slower

initial rate than the control group. Although employer ratings

scored the handicapped group below the control group in learning,

judgment, and efficiency, they received generally favorable job

ratings and had better absentee and punctuality records than the

control group.

In 1970 Carl Haywood leveled specific criticisms at the majority

of reports on the adjustment of retarded adults discharged from

institutions. Cited defects in most of the studies included incon-

sistency in the extent of information gathered, definitions of

adjustment, time factors involved, and sampling procedures used.










Wolfensberger et al. (1972), borrowing from the European concept

of "normalization" (Nirje, 1969), ushered in a new chapter in the

American facilitation of adjustment procedures for handicapped

adults. He called for services "as culturally normative as possible,

in order to establish and/or maintain personal behaviors and

characteristics which are as culturally normative as possible"

(p. 28). In the former article, the curriculum for mildly retarded

secondary students was judged to be too limiting when it was discovered

that graduates were independently finding and keeping higher level jobs

than those for which they were trained. Relying on operant condition-

ing, Gold showed that vocational expectations by trainers in

sheltered workshops were insufficiently challenging for their clients.

Severely retarded adults under Gold's (1972) tutelage were trained to

assemble a 15-piece bicycle brake. A year later the clients were

rechecked and their accuracy was found to have remained at a high

level.

Expressing a current view on the degree of adjustment success

of the deinstitutionalized, Crawford, Aiello, and Thompson (1979)

gave efforts a mixed review at best. They were supported in their

assertion by Conroy (1977) who found that more people were returning

to institutions than were being placed into the community.

Adequate follow-up procedures were recommended as the most critical

component of a proper placement. In their review, Heal, Sigelman,

and Switzky (1978) placed higher priority for successful placement

on the community support system than on the character traits of the

individual being placed. Redding (1979) compared the life adjustment










skills of low socio-economically based cooperative work training

graduates with educable mentally retarded high school graduates

based on their responses to structured questionnaires. Although

based on the criteria used, the nonhandicapped samples exhibited higher

adjustment skills than those with mental retardation; the author noted

that some results favorable to the handicapped were uncovered. Fully

70 percent of the retarded sampled were employed and their mean weekly

salary was over $110.00. With both groups a dearth of leisure time

utilization skills was observed.

Finally, an article by Coffman and Harris (1980) noted the

similarities between adjustment problems faced by deinstitutionalized

retarded adults and those encountered by normal individuals placed

in an alien culture.



Summary

This section of relevant literature traced chronologically the

research on adult adjustment of mentally retarded individuals in

America from the 1840's through 1979. Limited data were available

until mid-century. However, since that time pertinent material on

the subject has multiplied in volume.


Self-Perceptions Held by Mentally Handicapped Persons and
Perceptions of Such Persons by Those without Handicaps


The following section of the review of relevant literature

consists of two principal subsections, that concerning the manner

in which the retarded individual viewed himself and that focusing











on the perception others held of the retarded person. In the first

subsection, the following areas regarding the mentally handicapped

individual's self-concept are discussed: consensus on the positive-

ness of the retarded person's self-perception, the effect of

institutionalization on one's self-concept, other lifetime traumas

which may have deep repercussions on the handicapped person's self-

concept, coping in public with one's perceived deficits, variations

in self-concepts and their implications, the devastating combination

of retardation and minority status on self-concept in American

society, the effects of attendance of regular versus special classes

on self-perception, and the changing role of stigma in adult adjust-

ment.

Unfortunately, as of this writing, no clear consensus has been

attained regarding the feelings a mentally handicapped person

harbors toward himself. However, most of the studies which have

attempted to discover this have concluded that a more negative than

average self-concept exists (Collins, Burger, & Koherty, 1970;

Harrison & Budoff, 1972; Piers & Harris, 1964). Edgerton and

Sabagh (1962) discussed the possible metamorphosis of a retarded

person's self-concept upon institutionalization. According to their

theory, individuals entering institutions for the mentally retarded

fit roughly into two groups: those already mortified and those who

had thus far refused to accept the stigma of mental retardation. A

paradox presented itself as the psychologically healthier status of

acceptance of condition, which would probably result in an ideal

inmate, would consign the individual to a permanent institutional










stay. In contrast, those refusing to accept their assigned condi-

tion would have the better chance of successful adjustment upon

deinstitutionalization. Aggrandizement, or reconstruction of the

self-concept, was given a fair chance of occurrence through the

modes of peer-group relationships, relations with employees, and

comparisons with the more severely retarded population. However,

the self-concept which would evolve would be dependent on continued

institutionalization for its sustenance.

Lazarus (1961), analyzing autobiographies of physically impaired

persons with implications for retarded individuals, depicted two

periods in their lives when the handicap could profoundly affect

their self-concept. The first would occur the initial occasion a

child realized he was not totally like other children. The second

lasted throughout adolescence when the teenager "has to cope with

two kinds of persisting overlapping situations, that owing to his

disability and that owing to his transitional status as child-adult"

(p. 185). In his report on community living patterns of mildly

handicapped adults, Edgerton (1967) noted a sense of shame due to

skill deficits and former institutionalization which caused a

defensiveness on their part. In an effort to become accepted as

equals to their peers of normal intelligence, handicapped individuals

would wear a recognized status symbol, a watch. When they were

asked the time or needed to know the time for another reason, these

people became trapped in a true bind as they lacked time-telling

skills. Their method of coping with the situation was to claim the

watch was broken. In the same year that Edgerton's work was










published, Cleland, Patton, and Seitz (1967) compared insults given

out by mentally handicapped persons and business school students

toward hypothetical adversaries. Whereas the students cast

aspersions at someone's character, the handicapped individuals

berated his intelligence. The latter two studies provide additional

evidence pointing to a negative self-concept for the mentally

retarded person. Chinn (1979) reported that retarded members of

minority groups had their self-perceptions threatened by prejudices

against both their ethnic status and their measured intelligence.

Responding to employers' complaints of lack of motivation among this

group, Chinn cited the sparsity of appropriate work-oriented modeling

and lack of encouragement by significant others as factors responsible

for this situation.

Within the parameters of mental retardation, variation in self-

concept has been claimed to cause variation in learning ability.

Strong correlations have been shown between high self-concept and

both school grades and intelligence (Brookover, Erickson, & Joiner,

1967; Snyder, 1966). Using questionnaires to gauge the relationship

between self-concept and learning ability both Hardy (1967) and Wink

(1963) reached the conclusion that retarded adolescents with high

self-concepts learned better at first and are less prone to let later

negative reinforcement stymie this process.

The relationship between the effects of regular versus special

classes on the self-concept of retarded students has been the

subject of numerous studies. While the findings concerning the










effects of special class placement on self-concept included lowing

it (Borg, 1966; Meyerowitz, 1965), and not changing it significantly

(Bacher, 1965; Knight, 1967; Nash & McQuisten, 1977), most of the

evidence pointed toward improving it (Carroll, 1967; Drews, 1962;

Towne, Joiner, & Schurr, 1967). In a follow-up of the Towne et al.

(1967) study, Schurr and Brookover (1967) found that the self-concept

scores of special class students continued to rise for a full year

and a half after the period covered in the original research.

In Edgerton and Bercovici's (1976) follow-up of Edgerton's

(1967) descriptive report of community living, a change was noted

in the subject's placement of stigma on their hierarchy of personal

values. Previously, it was reported that the stigma of being

mentally retarded was one of the central components of the everyday

lives of most of these individuals. Much of their time was spent

attempting to "pass" as persons of normal intelligence. Yet, the

latter research showed that "passing" retained its importance with

only five of the 30 subjects interviewed. In fact, notwithstanding

a lack of vocational success among a significant proportion of the

group, "many of these people appear to define themselves as normal"

(p. 493).
In the second subsection, which concerned the perceptions of

mentally handicapped persons by those without handicaps, four

conceptual areas were discussed. They were the significance of

inappropriate behavior in causing prejudice against educable

mentally retarded children by their teachers and peers, regular

versus special education classes as variables in determining peer










attitudes toward mentally handicapped children, attitudes of members

of the business-industrial sector, landlords, parents and outsiders

toward mentally handicapped individuals, and European attitudes

toward retarded persons.

Johnson (1950) did research on two communities which included

educable mentally retarded students in regular classes without

additional services. Acceptance scores by peers decreased in rela-

tion to the decrease of I.Q.'s of respective EMR students.

Baldwin (1958) studied a school situation in which certain criteria

were used in determining EMR students eligible for regular class

placement. In spite of this selectivity, the social acceptance of

the eligible retarded students was much lower than the social

acceptance of those students not considered retarded. The principal

reason given for lack of acceptance in each of the above studies was

not academic limitations but inappropriate behavior. Dexter (1958)

reported that deviant behavior could well be a factor in special

class placement but defined this behavior as the natural response

to inappropriate treatment by the handicapped child's peers and

teachers.

Research on attendance of EMR students in regular classes had

done little to support Dunn's (1968) contention that integrated

learning situations result in positive attitudinal change on the

part of nonhandicapped populations. Goldstein, Moss, and Jordon

(1965) did show that nonhandicapped children played more often

after school with mentally handicapped peers who attended regular

classes than with those who were enrolled in special classes.










However, it must be noted that some social contact, important in

establishing after-school playmates, would occur in integrated

classes and would be lacking in segregated ones. Goodman,

Gottlieb, and Harrison (1972) determined that in a nongraded

elementary school, integrated EMR students were accepted less often

and rejected more often than their nonhandicapped peers. Gottlieb

and Budoff (1973) compared peer acceptance of nonhandicapped

students, segregated EMR students, and integrated EMR students

in nongraded schools. The integrated EMR group were rated as the

least accepted. Finally, lano, Ayers, Heller, McGettigan, and

Walker (1974) decided to gauge the acceptance rate of educable

mentally handicapped students who had previously attended special

classes and had been mainstreamed into the regular classroom with

additional advantage of a supportive resource room program. These

were no better accepted than those reported in the above studies.

Two hundred members of the business-industrial sector were

interviewed by researchers for Baltimore Goodwill in order to deter-

mine prospects for job placement in that city. Based on the

questionnaire results, the best job opportunities for handicapped

persons were in the areas of clerical, food services, custodial,

service stations, and upholstery. The areas in which the handi-

capped applicant would stand the least chance of attaining employment

were those of sales and laundry. Businessmen expressed a greater

amount of concern with work attitudes and motivation than with

technical skills (Stewart, 1977).










An attempt was made to determine whether wage-earning mildly

retarded adults would be subject to discrimination from landlords

in the New Paltz, New York, area. The subjects of the study were

100 landlords who advertised apartments for less than $200.00 per

month. Two phone calls were made to the landlords. The first was

from an anonymous renter who asked ten specific questions concern-

ing the advertised apartment (e.g., what the rent included, avail-

ability of shopping area). After receiving answers to the questions

posed, the renter politely informed the landlord that he had decided

not to rent the apartment. The second call was reputedly from an

advocate of a mildly retarded individual who had attained a job

within the general area of the apartment in question. To the first

caller all 100 responses were encouraging. To the second caller,

only one truly encouraging response was forthcoming. Sixty-four

said they would not rent to the retarded person, either because

the apartment was already rented (one-half hour after the first

call), or because they did not trust the capability of the retarded

person to be an adequate tenant (Trippi, Michael, Colao, & Alvarez,

1978).

Four one-half hour television programs depicting retarded

individuals in a positive light were shown with the expressed

purpose of favorably altering mothers' attitudes toward their

retarded offspring. Of the 18 concerns of parents addressed, only

four showed positive attitudinal change on the part of parents

after viewing the programs. The author (Baran, 1979) suggested

that even such a modest change was a step in the right direction










and it was perhaps expecting too much to anticipate that four tele-

vision programs could erase a lifetime of feelings and experiences.

In the second subsection of this section, the following areas

regarding perceptions of mentally handicapped persons by those with-

out handicaps are discussed: the attitudes of mothers toward their

handicapped children, differences in public attitudes toward mildly

and severely handicapped persons, and the effects of the label
"mentally retarded" on individuals' perceptions of the causes of

one's task completions.

Graduate students in a clinical practicum in mental retardation

and mothers randomly chosen from a university community were exposed

to videotapes of mother/child interaction. In each videotape a mother

and her child were involved in a 15-minute play session. Nonretarded

as well as retarded children were labeled as such and half the time

they were not. Both graduates and mothers rated the retarded children

more likable when they were labeled but both groups also placed

labeled and nonlabeled retarded children farther from themselves on

the social scale than the nonretarded children (Seitz & Geske, 1976).

In the second study, Siperstein and Gottlieb (1978) found that public

attitudes toward mildly retarded individuals were considerably more

favorable than those toward severely mentally retarded persons.

Lastly, Severance and Gasstrom (1977) administered booklets containing

two case studies to 96 female undergraduates. The cases described

either successes or failures at task completion. In half of the

successes, as well as the failures, the label "mentally retarded"

was included in the child's description. Using Frieze and Weiner's










(1971) attribution of four sets of causal elements (skill, motiva-

tion, difficulty, and luck) by which social perceivers explain the

behaviors and outcomes of others as the basis for their research,

the authors questioned the undergraduates as to which elements

dominated in their case studies. For the children randomly labeled

retarded, failures were seen as more along ability related lines and

effort (or lack of it) was blamed at a higher rate for non-labeled

failures. Regarding success, a retarded person was thought to exert

more effort than a person not labeled retarded.

After research in Europe, Lippman (1972) concluded that

Europeans generally possessed a more positive attitude toward the

handicapped person than Americans did. This attitude was brought

home to America in Wolfensberger et al.'s (1972) work entitled

Normalization. The concept of normalization, borrowed from Scandinavia

(Nirje, 1969), and defined in the Adult Adjustment of Mentally Handi-

capped Individual's section of this literature review, promised to

have a profound influence on American treatment of retarded adults.



Summary

This section of the review of relevant literature consisted of

two subsections: Self-Perceptions Held by Mentally Handicapped

Persons and Perceptions of Such Persons by Those Without Handicaps.

The first subsection contained consecutively: consensus on the

positveness of the retarded person's self-concept, the effect of

institutionalization on one's self-concept, other lifetime traumas

which may have deep repercussions on the handicapped person's










self-perception, coping in public with one's perceived deficits,

variations in self-concepts and their implications, the devastating

combination of retardation and minority status on self-concept in

American society, the effects of attendance of regular versus

special classes on self-perception and the changing role of stigma

in adult adjustment. The second subsection contained consecutively:

the significance of inappropriate behavior in causing prejudice

against mentally retarded children by their peers and teachers,

regular versus special education classes as variables in determining

peer attitudes toward mentally handicapped children, attitudes of

members of the business-industrial sector, landlords, parents, and

the general public toward mentally handicapped individuals, and

European attitudes toward retarded persons.


Adaptive Behavior and Self-Concept Rating Scales

According to the AAMD manual, adaptive behavior is "the

effectiveness or degree with which an individual meets the standards

of personal independence and social responsibility expected of his

age and cultural groups" (Grossman, 1973, p. 11). Criteria for

successful adaptive behavior begin with sensory-motor communication,

self-help, and socialization skills in the early years of life and

end with daily living, vocational, and social abilities in adulthood

(Brolin, 1976).










Adaptive behavior scales applicable for usage with educable

mentally handicapped adults are limited in number. The most

commonly mentioned are the AAMD Adaptive Behavior Scale and the

Vineland Social Maturity Scale (Brolin, 1976; Robinson & Robinson,

1976). The former purports to measure self-sufficiency, sensory-

motor development, socialization, domestic abilities, vocational

promise, and responsibility (Nihira, Foster, Shellhaas, & Leland,

1969). The VSMS attempts to discover traits of social responsibility,

personal independence, and initiative. In addition, it is used to

determine the level of learning readiness an individual possesses

(Doll, 1964).

Surprisingly, neither of the above were mentioned in Brolin and

Kokaska's (1979) comprehensive text on career education for special

needs students. Instead, a relative newcomer to the field of

adaptive behavior measurement was suggested. It is entitled the

Social and Prevocational Information Battery (SPIB) and is the work

of Halpern, Raffeld, Irvin, and Link (1975). The purpose of its con-

struction was to determine knowledge of skills and competencies

deemed essential for the ultimate community adjustment of mildly

retarded persons. Nine areas are scored: purchasing habits, budget-

ing, banking, job-related behavior, job search skills, home management,

health care, hygiene and grooming, and functional signs. These are

directly related to five long range objectives of junior and senior

high school work-study programs: employability, economic independence,

family life, personal habits, and communication. Using the Kuder-

Richardson formula 20, a reliability rating of .93 was found for










senior high school students. In order to determine predictive

validity, economical correlation was performed between the SPIB

tests and five scores from an adjustment rating instrument

administered to vocational rehabilitation counselors one year

after the subjects left high school. A first order correlation

of .58 showed a moderate relationship between the SPIB scores and

the others (Halpern et al., 1975). Brolin and Kokaska (1979) concluded

that this instrument "is a substantial contribution to the occupa-

tional guidance area and worthy of utilization" (p. 216).

The self-concept is generally conceived as the total view a

person has of himself. Carl Rogers defined self-concept in a

manner which remains relevant today:

an organized configuration of perceptions of the self
which are admissible to awareness. It is composed of
such elements as the perceptions of one's characteristics
and abilities; the value qualities which are perceived
as associated with experiences and objects; and goals
and ideals which are perceived as having positive or
negative valence. (Rodgers, 1951, pp. 136-137)

Brolin and Kokaska (1979) elaborated on this definition by attribut-

ing four components to the process of self-conceptualization.

First, the self-concept is learned and can therefore change with

new experiences. Second, it is influenced by "significant others."

Third, it is based on one's perceptions of oneself and one's

environment. Thus, any limitations in one's system of receiving

information (e.g., visual deficit) affect one'sself-concept. Last,

one places a certain value on what he perceives while looking at

himself.










The self-concept scales available at this time were primarily

designed to measure one's beliefs about oneself. They attempt to

gauge the individual's understanding of his present status, the

behaviors and attitudes others have of him, and the values he

places on what he perceives.

Self-concept scales were located in large quantity in The

Eighth Mental Measurements Yearbook (Buros, 1976). The Self-Esteem

Questionnaire (Hoffmeister, 1971) appeared to be a reasonable gauge

of self-concept but lacked sufficient information on itself

(especially regarding validity) to be useful at this time (Buros,

1976). Self-Concept as a Learner Scale (Waetjen, 1967) could be

used with adults but lacked a description of a normative population

(Buros, 1976). Self-Perception Inventory by William T. Martin (1969)

was age and subject appropriate but inadequate in normative data,

reliability and validity studies (Buros, 1976).

One self-concept scale was found which was age appropriate,

subject appropriate, and had sufficient normative population data.

Also present were validity and reliability measures. This was the

Self-Perception Inventory by Soares and Soares (1975). The area

explored in this study was the subject's perceptions of himself.

The test-retest reliability correlation was reported at .79.

Regarding validity, the student self-concept form correlates .68

with Coopersmith's Self-Esteem Inventory and .44 with the Tennessee

Self-Concept Scale.
















CHAPTER III

PROCEDURES


This study focused on the measurement of adaptive behavior and

self-perception of mentally handicapped males residing in Kansas.

Subjects were divided into two groups, i.e., those who were

employed and those who were unemployed at the time the measurements

were made. Additional investigations were made concerning the

adequacy of jobs held by employed subjects and the employability of

those subjects unemployed at the time the study was conducted.

Finally, the plethora of data for the hypotheses being tested caused

this researcher to examine other variables as possible associative

factors in adult adjustment and self-perception scores of retarded

men.

This chapter contains the statement of the null hypotheses, the

designs used in the research, the determination of subjects contained

in the sample, the instrumentation used in the research, and the

procedural method through which the research was conducted.


Statement of Null Hypotheses

1. There are no statistically significant differences (a = .05)

between the Social and Prevocational Information Battery scores of










the employed mentally handicapped males and the Social and Prevoca-

tional Information Battery scores of the unemployed mentally

handicapped males. (See page 68.)

2. There are no statistically significant differences (a = .05)

between the Self-Perception Inventory scores of the employed mentally

handicapped males and the Self-Perception Inventory scores of the

unemployed mentally handicapped males. (See page 68.)

3. There are no significant differences (p. = .05) between

the employed individuals' perceptions of their suitability for their

respective employment positions and the perceptions held by signifi-

cant others in the lives of the subjects who are in a position to

observe the subjects' work situations. (See page 70.)

4. There are no statistically significant differences (p. =

.05) between the perceptions of the unemployed individuals on their

employability and the perceptions of significant others in the lives

of the subjects on the subjects' employability. (See page 70.)


Designs

In order to determine whether the discrepancies in data

accumulated for the purpose of this study were greater than could

be attributed to chance, two statistical designs were chosen. An

analysis of variance (ANOVA) design was used to determine whether a

significant difference could be ascertained between the Social and

Prevocational Information Battery (SPIB) and Self-Perception Inventory

(SPI) scores of employed subjects and the SPIB and SPI scores of un-

employed subjects. The Fisher Exact Test was used in comparing the










subjects' perception of their job adequacy or employability with

the perceptions of the same phenomena by significant others in their

lives. A .05 level of statistical significance was used in both

designs.

The primary objective of this research design was to determine

the existence or lack of existence of a significant difference

between the SPIB and SPI scores of the employed mentally handicapped

males and the unemployed mentally handicapped males. A secondary

objective of this research was to determine whether the subject was

in agreement with his significant other regarding the adequacy of

his employment, if employed, or his employability, if unemployed.

Questions relating to adequacy of employment or employability were

directed toward the subjects themselves, social acquaintances of the

subjects, employers, or social workers who were familiar with the

subjects.


Structural Models

Employed and unemployed subjects were administered the SPIB

and SPI instruments. They were also asked to determine the adequacy

of their jobs, if employed, or their employability, if unemployed.

Verifiers were used to determine agreement. Figure 1 shows the

breakdown of employed and unemployed subjects on the SPIB and SPI

instruments (Model A) and compares their assertions on adequacy of

employment and employability with that of verifiers (Model B).












Model A


Subjects SPIB SPI


Employed C1 20 20


Unemployed C2 20 20


C1 presently salaried in a competitive occupational
position

C2 presently unsalaried



Model B


Subjects Mentally Verifier
Retarded

Employed D1 20 20


Unemployed D2 20 20


D1 adequacy of employment

D2 employability




Figure 1

Structural Models










Subjects

Forty subjects were chosen representing two distinct groups of

mentally handicapped males between the ages of 18 and 54. Twenty

subjects were selected from a population of employed mentally

handicapped males and 20 subjects were selected from a population

of unemployed mentally handicapped males.

Subjects were located through three means of communication.

Contacts with professionals dealing with retarded adults were

established via personal visits, telephone calls, and letters (Appendix A).

Areas through which retarded men could be located included sheltered

workshops, the Kansas Association for Retarded Citizens, the public

school system, and group living homes. Sheltered workshops in Hays,

Overland Park, and Wichita supplied subjects who were presently on

their waiting lists or had left their programs for various reasons.

Officials with the Kansas Association for Retarded Citizens notified

chapters in Hays, Norton, Wichita, and Pratt of the research being

attempted with the result that subjects were identified and tested

from those areas. Public school special educators from Hays,

Stockton, and Lawrence brought in several former students for

testing. Finally, houseparents in group living homes in Norton

and Wichita allowed residents to participate in the research. The

search for subjects continued until 20 employed individuals and 20

unemployed individuals were tested. The only incentive used to

encourage participation was the guarantee of a free meal during or

after the tests.










Criteria used in determining subjects included the following:

1. Subjects had to be between 18 and 54 years of age.

2. Subjects were not presently institutionalized.

3. Subjects were considered by qualified professionals to

be capable of competitive employment at the time of the study.

4. Subjects had to express a willingness to participate in

the study.

5. Subjects had to have attended mental retardation classes

in the public school system or been classified as mentally retarded

by the Kansas Division of Health and Rehabilitative Services.

The mean age of the subjects was 25.875. The mean age of those

employed was 25.95 and the mean age of those unemployed was 25.70.

The total population from which the subjects were chosen resided in

the State of Kansas.

The impression given by the majority of the subjects was one of

emotional rather than physical dependence on others for support. They

seemed none too sure of themselves and very much other-directed. The

greatest differences in apparent personality and appearance were

those between rural and urban residents. While some rural dwellers

owned their own vehicles, most were dependent upon their parents

(biological, foster, or house) or siblings for transportation.

Urbanites, on the other hand, rarely owned a car, but seemed to have

no trouble reaching destination points due to access to public trans-

portation. Rural subjects usually resided with their parents while

urban subjects were more often in group living homes. Subjects from

rural areas appeared to be more sociable and made of point of letting










the casual observer know they were on familiar terms with all their

neighbors. In contrast, urban residents seemed less out-going and

more competitive, more street-wise. Those who lived in urban areas

were definitely more clothes conscious than their rural counterparts.

For both groups television was probably the most favored form of

entertainment. Few expressed an interest in participant sports.



Verifiers

For the group of employed individuals, verifiers consisted of

two employers, three Association for Retarded Citizens personnel

associated with the retarded individuals, two job placement personnel

from sheltered workshops, two former instructors in public school

special education programs, and two group living home houseparents.

This was the hierarchy followed for verification. Several of the

verifiers gave verification for more than one subject.

For the group of unemployed individuals, verifiers were included

under the term advocates. As shown in the Definition of Terms, these

consisted, in order of selection, of two voluntary advocates, two

social workers, two Supplementary Security Income Contact personnel,

three VISTA volunteers, one member of the clergy, and seven associates

who took an active interest in the subject. Several of the verifiers

gave verification for more than one subject.

While commenting on a subject's contention of adequacy of

employment or employability, a consensus of the verifiers expressed

a genuine affection for the mentally handicapped subjects with whom

they had contact. A special education teacher from Lawrence said his










former students who were being administered the instruments were

"good people, like you and I. Most want to work but just like the

rest of us some don't." At a large sheltered workshop in Wichita,

a job placement officer uttered the thought that most of the workers

in the sheltered workshop conformed to the rules without the necessity

of a behavior management program. He felt that the desire to work

was strong enough to cause the clients to compete for the opportunity

for competitive employment in the community. At the other end of the

expectation spectrum, a group living home houseparent in Norton spoke

disparagingly of the motivation of one of the unemployed residents.

She stated he had unsuccessfully tried several forms of employment

and that he was probably the most intelligent resident in the home but

he simply did not appear to be serious about working. Overall, the

verifiers held the subjects they knew in high regard.


Data Collection

The data were collected over a two-month period, beginning May 15,

1980 and ending July 11, 1980. The instruments were administered at

the following Kansas sites: Glade, Hays, Lawrence, Norton, Overland

Park, Pratt, and Wichita. At Hays, Norton, and Wichita tests were

administered on several occasions as new subjects were located. Over

2,500 miles were traveled during the administration of the research

instruments. As is shown in Figure 2, three test sites have populations

exceeding 50,000 (U.S. Department of Commerce, 1980). At the urban

sites (Wichita, Overland Park, and Lawrence) subjects were local

residents from the respective cities. At the rural sites subjects










60














r )O

r- 'o N

> CO


C) 0.


C*r-
(D LO

S-.. *r-
-JO-








*r N >--
e-
a. 1 cu




O CL,
o *-
O *E






00 0 *





S-

4 CJ











-- zO I-
*-













0 0








o o



o 0. 4
2 0 0
U CL




4-3-









(a


0
am 0 (0&
.c -S ^C -

*d .:-o
>-^ E











*i










were either local residents or were transported to the sites from

nearby towns.

The subjects were initially given the Self-Perception Inventory

which took an average of 20 minutes to complete. In addition to the

utilization of a sample item preceding the Inventory, continual

clarification of each item's intent, as well as the monitoring of

responses were performed to assure validity.

The Social and Prevocational Information Battery was then

administered to the subjects. This knowledge-based test of adult

adjustment skills consists of nine subtests, averaging 20 minutes

each. The SPIB manual suggests that its administration be divided

into three one hour sessions. This was accomplished by administering

the tests over a single day, punctuated by breaks of free time. After

the SPI and the first three subtests of the SPIB were completed, a

break was called with the subjects being allowed to walk about freely,

smoke cigarettes, and/or drink beverages. After a period of 15 to 30

minutes, the subjects were again assembled for subtests four through

six. After subtest six, another break was called. At this time the

subjects were treated to a meal. Lunch or dinner was supplied,

depending on the time of day during which the instruments were

administered. After the second break, subtests seven through nine

were completed.

For consistency of approach, each instrument was administered to

each subject by this researcher. The test administrator read the

item statement twice, then observed the subject's answer sheet to

determine that the correct space for that numbered statement was being










marked. Only one of the 40 subjects was found to be marking inappro-

priate items and those inappropriately marked were erased and

verbally readministered until responses were coordinated with the

numbers asked.

The sites used for testing varied with the type of contact

through which the subjects were located. Included among testing

sites were Association for Retarded Citizens offices, public school

buildings, sheltered workshops, and group living homes. In all cases

of administration of the instruments, sufficient writing space,

chairs, quiet surroundings, and proper lighting were provided.



Instrumentation

The Social and Prevocational Information Battery (SPIB) is a

series of nine tests designed to assess knowledge of skills and

competencies widely considered critical for the ultimate community

adjustment of mentally retarded individuals. The tests measure

knowledge of the following skills: purchasing habits, budgeting,

banking, job-related behavior, job search skills, home management,

health care, hygiene and grooming, and functional signs. These may

be condensed into five major high school work study objectives:

employability, economic independence, family life, personal habits,

and communication. A reliability rating of .93 was determined for

the instrument using the Kuder-Richardson formula 20. Comparison of

the mean scores of employed and unemployed subjects on this instru-

ment formed the basis of Hypothesis 1.










The Self-Perception Inventory (SPI) is a measure of how the

subject sees himself. The inventory, as used in this research,

measures solely one's perception of himself as a person. It is

age and subject appropriate with adequate data on the normative

population. Unlike many self-concept measures, SPI does supply

validity data. This shows SPI to correlate with Coopersmith's

Self-Esteem Inventory at the .68 level. The instrument is acknowledged

to be highly usable as it is presented in a straightforward manner,

comes equipped with short, concise directions, and has a clear format.

Comparison of the mean scores of employed and unemployed subjects on

this instrument formed the basis of Hypothesis 2.

Finally, two separate questions were asked, one to the employed

subjects and one to the unemployed subjects. The members of the first

group (employed) were asked whether they considered their position of

employment adequate. Their employers and social acquaintances were then

asked if they considered the subject's employment position to be adequate

for the subject's ability level. Comparison of the responses of the

subjects with that of their verifiers formed the basis of Hypothesis 3.

The members of the second group (unemployed) were asked if they believed

they could, in fact, acquire and maintain a job. Advocates, who had

been in contact with the unemployed subjects, were then asked if they

considered the subject employable in a regular job setting. A hierarchy

of verifiers under the term "advocate" included voluntary advocates,

social workers, Supplementary Security Income contact persons, VISTA

volunteers, clergy, and associates who took an active interest in the

subject. This was the order in which persons to be used as verifiers







64


were selected. Comparison of the responses of the subject with that

of their verifiers formed the basis of Hypothesis 4.
















CHAPTER IV

ANALYSIS OF DATA


The data presented in this chapter are the final results of

statistical treatments used to investigate for differences and

relationships between and within employed and unemployed mentally

retarded men concerning adult adjustment skills and self-perceptions.



Statistical Treatment

Data were collected and treated with two statistical techniques,

i.e., one way analysis of variance and the Fisher Exact Test used

as an exact test of significance for a 2x2 table with small cell

frequencies. The one way analysis of variance was used to investi-

gate for differences between means obtained from employed and

unemployed mentally retarded males on measurement of adult adjust-

ment skills and self-perception.

According to Willemsen (1974), analysis of variance is a

method by which the total variance of a group of scores are

algebraically divided into portions. Under proper conditions these

portions can work as "an unbiased estimate of the variation due to

different identifiable sources" (p. 88). Among other sources,










specific subject characteristics such as present employment situa-

tion are relevant to the present research. Proper conditions

include the following assumptions: (a) each of the sampled population

is assumed to have a normal distribution and (b) all populations are

assumed to have the same variance. As participants in this study were

gathered representatively from a wide geographical and sociocultural

range from within the State of Kansas, normal distribution for utiliza-

tion of the analysis of variance design was achieved.

The second statistical treatment used was the Fisher Exact Test

(Borg & Gall, 1974). Due to the small frequencies occupying several

of the cross breaks, the Fisher Exact Test was used to reach exact

probability. The purpose of this technique was to examine the rela-

tionship in agreement between the subject and the verifier. Assumptions

for computation include complete independence of subjects.

In addition to the statistics used for verification of the

hypotheses, analysis of variance were used to accumulate inferences

regarding other variables found in the data. These variables included

discrete age groups (18-21, 22-27, and 30-54) and location (rural and

urban) which were observed with regard to employment status.


Statistical Analysis of Hypotheses Tested

Hypothesis 1

Statistical analysis of Hypothesis 1 is presented in Table 1. A

.05 level of significance with 1,38 degrees of freedom places the

critical point at 4.098 for Hypothesis 1.










Table 1

Degrees of Freedom, Sums of Squares, Mean Squares
and F-Ratios for Hypotheses 1 and 2

Hypothesis 1


Sum of Mean
df Squares Square F

Between Groups 1 1276.9 1276.9 0.86

Within Groups 38 56287.430 1486.248


Total 39 57564.332 1476.008


Social and Prevocational Information Battery

Hypothesis 2


Sum of Mean
df Squares Square F

Between Groups 1 193.600 193.600 0.63

Within Groups 38 11587.449 304.933


Total 39 11781.051 302.078


Self-Perception Inventory


Significant at .05 level of
region is F 4.098.

1. Computation of F 0.86.

2. Computation of F 0.63.


confidence with 1,38 df, critical











Statement of Hypothesis 1. There are no statistically signifi-

cant differences (a = .05) between the Social and Prevocational

Information Battery scores of the employed mentally handicapped males

and the Social and Prevocational Information Battery scores of the

unemployed mentally handicapped males.

Finding. Since F was not in the critical region at the .05 level

of confidence, the hypothesis was not rejected. The finding was that

there was no significant difference in adult adjustment based on

Social and Prevocational Information Battery scores.


Hypothesis 2

Statistical analysis of Hypothesis 2 is presented in Table 2.

A .05 level of significance with 1,38 degrees of freedom places the

critical point at 4.098 for Hypothesis 2.

Statement of Hypothesis 2. There are no statistically significant

differences (a = .05) between the Self-Perception Inventory scores of

the employed mentally handicapped males and the Self-Perception

Inventory scores of the unemployed mentally handicapped males.

Finding. Since F was not in the critical region at the .05 level

of confidence, the hypothesis was not rejected. The finding was that

there was no significant difference in self-perception based on Self-

Perception Inventory scores.

Hypothesis 3

Statistical analysis of Hypothesis 3 is presented in Table 2.

The critical level for Hypothesis 3 is at the .05 level of probability

with one degree of freedom.












Table 2

Adequacy of Employment Agreement and Employability
Agreement for Hypotheses 3 and 4


Hypothesis 3


Yes No p. ratio


Verifier Agreement 15 1

Verifier Disagreement 1 3

.0132 16/20=.80


Adequacy of Employment


Hypothesis 4


Yes No p. ratio


Verifier Agreement 14 1

Verifier Disagreement 3 2

.140 15/20=.75


Employability



Computation of Hypothesis 3 p. = .0132.

Computation of Hypothesis 4 p. = .140.










Statement of Hypothesis 3. There is no relationship between

employed individuals ratings of the adequacy of their own employment

and the ratings of their verifiers (p. = .05).

Findings. Data from Hypothesis 3 gave statistical support for

agreement between subjects and verifiers regarding the subjects'

adequacy of employment. The probability of .013 was rejected. A

confirmation of this finding was the ratio of agreement between

subjects and verifiers. Of the 20 subjects, 16 received agreement

from their verifiers. This ratio of 16/20 signified a high agreement

ratio of .8.

Hypothesis 4

Statistical analysis of Hypothesis 4 is presented in Table 2.

The critical level for Hypothesis 4 is at the .05 level of probability

with one degree of freedom.

Statement of Hypothesis 4. There is no relationship between

unemployed individuals' rating of their employability and the ratings

of their verifiers (p. = .05).

Findings. Data from Hypothesis 4 failed to statistically support

agreement between subjects and verifiers regarding the subjects'

employability as the probability of .140 exceeded the critical level

of .05. Therefore, Hypothesis 4 was not rejected. However, the

ratio of agreement between subjects and verifiers was almost as high

as that in Hypothesis 3. The ratio of 15/20 signified a high agree-

ment ratio of .75.

Added to the data used for testing and primary and secondary

hypotheses of this study, numerous other data appeared from










administration of the instruments. These were analyzed in order

to shed further light on adult-adjustment skills and self-concepts

of mentally retarded men. In order to determine whether age differ-

ences represented significant variables in SPIB and SPI scores, the

subjects were divided into three discrete age groups. Those between

and including the ages of 18 and 21 comprised one group, 22 to 27

the second group, and 30 to 54 the third group. The ages of 28 and

29 were not represented as no subjects were of that age. Another

domain of research interest consisted of subjects from rural locations

compared with those from urban locations. Seventeen of the subjects

(42.5 percent) were from rural areas and 23 of the subjects (57.5

percent) were from urban areas. Urban areas were arbitrarily desig-

nated as those with populations exceeding 50,000. Rural areas were

arbitrarily designated as those with populations of less than 50,000.

Finally, mean scores of each of the nine subtests of the Social and

Prevocational Information Battery were analyzed in an effort to deter-

mine whether significant mean differences occurred among age group,

employment status, or location variables.

Regarding the basic composition of the overall SPIB data, an

analysis of variance was run and no significant differences (F. = .05)

were found among mean scores for main effects, two-way interactions

or three-way interactions (see Appendix D). However, the two-way

interaction of Employment Status X Location came extremely lost at

F. = .058. Thus, at F.10 this difference would be significant. As

depicted by the table below, the greatest mean difference occurred

between rural employed and rural unemployed, the former outscoring










the latter by over 30 SPIB points. In contrast the urban employed and

unemployed achieved nearly identical mean scores. Another interesting

finding from this interaction is the large difference in mean score

between the urban (lower) and rural (higher) employed. In fact, the

rural employed standalmost 30 SPIB points above any of the other

three categories.

Although analyses of variance were not performed for groups when

isolated for location, large differences were seen for both the rural

and the urban samples. The interaction of discrete age groups and

employment status variables shown in Table 4, indicated wide dis-

crepancies favoring employed subjects in the rural grouping. The two

younger age groups (18-27) exhibited over 30 SPIB point differences

favoring those employed. No comparison could be made with those in

the 30 and over age group as it contained no unemployed members. A

wide range of mean SPIB points was achieved in the urban group

showing no pattern whatsoever. The youngest group (18-21) of un-

employed and oldest group (30-54) of employed were virtually tied

for the highest mean SPIB scores.

Analysis of variance were performed for each of the SPIB subtests,

using discrete age grouping, location, and employment status as

variables. No significant differences were discovered for the first

subtest, purchasing habits. For budgeting, the interaction of discrete

Age Group X Location was found to have a significant F. of .04. As

shown in Table 5, the only real discrepancy found in this interaction

is between rural subjects over 30 and the composite other groups.

The third, fourth, and fifth subtests, those entitled banking,

job related behavior, and job search skills respectively showed no










Table 3
Mean SPIB Scores: Employment Status X Location


Rural No. Urban No.

Unemployed 161.57 ( 7) 173.85 (13)
Employed 192.20 (10) 170.50 (10)







Table 4
Mean SPIB Scores: Discrete Rural and Urban Subgroupings


Age Unemployed No. Employed No.

18-21 167.33 (3) 200.67 (3)

S 22-27 157.25 (4) 211.25 (4)
30-54 0.0 (0) 155.00 (3)

18-21 188.83 (6) 172.00 (4)
C
| 20-27 159.50 (4) 151.67 (3)
30-54 163.00 (3) 187.33 (3)












Table
SPIB Subtest:


5
Budgeting


Rural No. Urban No.

18-21 21.00 ( 6) 20.80 (10)
22-27 21.38 ( 8) 18.29 ( 7)
30-54 14.67 ( 3) 19.17 ( 6)









Table 6
SPIB Subtest: Home Management


Rural No. Urban No.

Unemployed 16.71 ( 7) 20.23 (13)
Employed 21.00 (10) 19.40 (10)










significant differences among their mean scores. The analysis of

variance of the sixth subtest, home management, resulted in a

significant F. of .20 for the interaction between Employment Status

and Location (see Table 6). The major discrepancy in this subtest

was between the rural unemployed and employed. The urban scores

were approximately the same.

In the analysis of variance run for the seventh subtest, health

care, a significant F. of .029 was found for the interaction between

Employment Status and Location (see Table 7). Similar to the situa-

tion found with the previous subtest of Home Management, the rural

unemployed scored significantly lower than the rural employed, while

both unemployed and employed urban subjects received nearly identical

mean scores.




Table 7

SPIB Subtest: Health Care


Rural No. Urban No.

Unemployed 16.71 (7) 20.23 (13)

Employed 21.00 (10) 19.40 (.10)










Continuing the trend of the most recent two subtests, the

eighth subtest, that of Hygiene and Grooming, again revealed a

major discrepancy between the unemployed and employed rural subjects

with little or no mean score difference between urbanites. For this

subtest a significant F. of .006 was determined.


Table 8
SPIB Subtest: Hygiene and Grooming


Rural No. Urban No.

Unemployed 13.29 ( 7) 16.54 (13)

Employed 18.40 (10) 16.10 (10)


The final subtest, Functional Signs, demonstrated no significant

differences among variables when an analysis of variance was per-

formed on it.

An analysis of variance was performed on mean scores from the
Self-Perception Inventory (see Appendix D). A significant F (.007)

was determined for the Discrete Age Groups variable for the main

effects. As is evident from Table 9, subjects in the 30 to 54 age

grouping scored significantly lower than younger subjects on this

measure of self-concept. When divided into discrete groups by loca-

tion, the reasons for this difference become clearer. No unemployed

rural subjects between the ages of 30 and 54 were tested. Therefore,

only three over-30 groups were available for examination. Of those,










Table 9
Self-Perception Inventory: Discrete Age Groups


Age Mean SPI Score No.

18-21 27.19 (16)

22-27 21.00 (15)

30-54 4.00 ( 9)





Table 10
Mean SPI Scores: Discrete Rural and Urban Subgroupings


Age Unemployed No. Employed No.

18-21 27.67 (3) 34.33 (3)

22-27 21.00 (4) 23.50 (4)
CI.
30-54 0.00 (0) -4.67 (3)

18-21 26.83 (6) 22.00 (4)
C
-e 22-27 14.00 (4) 27.00 (3)
30-54 17.67 (3) -1.00 (3)










the unemployed urban sample exhibited a mean SPI score of 17.67

which placed comfortably above the mean score of the unemployed

urban subjects in the 22-27 age group. However, employed individuals

in the over-30 age group achieved negative mean scores whether they

were from urban or rural areas (see Table 10).



Summary

Investigations for significant differences and relationships

between employed and unemployed mentally retarded males between the

ages of 18 and 54 were conducted in the areas of adult adjustment

skills and self-concepts. In addition, probability of agreement

was determined between mentally retarded adults and significant

others in their lives regarding their responses to queries of

adequacy of employment for those employed and employability for

those unemployed. In determining differences and relationships in

adult adjustment skills and self-concepts, an analysis of variance

was used at the .05 level of significance. In determining agreement

between subjects and significant others, a Fisher Exact Test was made

due to the small marginal frequencies occupying several of the cross

breaks. This was applied at the .05 level of probability. Compari-

sons were then made using the variables of discrete age groups and

location, which, in conjunction with employment status, became the

subject of a series of analyses of variance. Significant F. was at

the .05 level. Analyses of variance were also performed on each of

the subtests of the Social and Prevocational Information Battery.










Application of the analysis of variance design resulted in

no significant differences between employed and unemployed

mentally retarded males in the SPIB and SPI scores. Application

of the Fisher Exact Test for small expected cell frequencies for

determination of agreement probability between subjects and

significant others in their lives resulted in significant

differences between unemployed individuals and their significant

others, but not between employed subjects and their significant

others. Using ratio analysis, high agreement was found between

subjects and verifiers in both groups. Application of the analysis

of variance design among the independent variables of discrete age

groups, location, and employment status resulted in significant

differences between subjects from the oldest age group and those

from other groups.
















CHAPTER V

DESCRIPTION OF RANDOM SAMPLE


In order to keep in perspective the human element in this study,

a brief descriptive analysis was made of eight of the tested

subjects. The first of the eight was randomly chosen from 40

pieces of paper placed in a bowl, each piece marked with a discrete

number ranging from I to 40. After that number was chosen, it was

matched with the number assigned to the respective subject. The

other subjects were chosen by taking every fifth subject after the

original one until seven had been obtained. Subject variables

appeared fairly representative. Although five of those described

were in their teens or early 20s, half of the group was employed

and an equal ratio unemployed. Also, five of the eight were from

urban areas which roughly corresponded to the composition of the

total subject group. Pseudonyms were given the subjects to protect

their right to confidentiality.

Ben Wilson, who did manual work for the city, agreed to be

tested in Norton after much prodding by his fo-mer GED (General

Educational Development high school equivalency diploma) tutor who

was also a local Association for Retarded Citizens officer. He was

a large man, resemblirg the stereotype one might have of a lumberjack.

His manner was abrupt and he left little doubt that he was uncomfortable











in the classroom situation. However, Ben cooperated fully in the

testing and relaxed somewhat when the "ordeal" was completed.

In conversation he intimated that he was close to passing his GED

test after several near misses. However, his GED tutor countered

in private that Ben had decisively failed each of the subtests and

only irregularly attended the tutoring sessions. In spite of the

fact that Ben is the only married subject being described, his

adult adjustment scores were relatively low on the SPIB. He demon-

strated little understanding of either the difference between

luxuries and necessities for the consumer or the skills involved

in check writing. His married status was reflected in his home

management skills where kitchen-related items were the most deficient.

In the Health Care section one of the questions may have been in-

appropriate in Ben's case. He did not think that three or four

beers would affect one's driving ability. Ben, who is approximately

6'3" in height and weighs in the neighborhood of 240 pounds, may

indeed be little affected by the 3.2% alcohol beer brewed by law in

Kansas. Ben's self-concept appeared to be quite low. He admitted

to poor performance in school as well as aversion to change and self-

doubt. At the time of the testing, he was 31 years of age.

Another subject, tested in Norton but on a different occasion

than Ben, was Bart Stouffer. Bart was presently unemployed, although

he had held various jobs for brief periods of time. He was 27 years

of age and a resident of a group living home. Upon questioning

concerning his employability, both he and his housemother did not

believe he could hold a job. His housemother did not feel that











intelligence was a barrier to Bart's vocational success. Instead,

she blamed lack of work motivation. At the testing session Bart

was dressed casually but had a well-groomed appearance. He behaved

in a friendly, outgoing manner which belied evident skills in social

manipulation. At dinner at the local A & W root beer stand, despite

protests from this researcher and another subject, Bart walked over

to a dining trucker and borrowed a cigarette. Apparently, he often

assumes this medicant role. Although he was garbed appropriately for

the tests, his SPIB score for the Hygiene and Grooming subsection

was easily his lowest. A possible key to his present status of

unemployment was his agreement in the Job Related Behavior subsection

that one should tell customers or visitors about problems with one's

boss. Bart showed a slightly negative self-concept on the SPI.

Although he considered himself self-pitying, unhappy, and fearful,

he felt he possessed the ability to be very self-reliant. This was

not confirmed by the observations at the A & W.

Larry Adams, at 18, was the youngest subject. He was employed

at a college cafeteria and living at home with his family. His

appearance was somewhat disheveled and during the course of the

session he revealed the reason. He and some friends had partied at

one of the friend's houses the night before. The party was a lively

one with much alcoholic consumption (no other drug being admitted to).

Larry had stayed through the night and had come directly to the

Saturday morning testing complete with a hangover. In spite of this,

he was amiable and joked casually. The impression given this

observer was that the physical suffering Larry was no enduring was











more than compensated for by his defacto initiation into the world

of the normal decadent. In fact, he indulged himself in his hang-

over as if it were a Red Badge of Courage. On his SPIB test he

scored uniformly with subtest extremes only five points apart.

Although Larry's mother is a full-blooded American Indian, he

appeared ignorant of rural health care as was evidenced by the fact

that he missed questions concerning protection from snakes and

poisonous berries. Extreme self-reliance was shown in his SPI

responses.

The eldest subject described was Clark Jones. He was a 41 year

old Wichitan who was presently unemployed and living in a group

living home. His physical appearance was that of a man at least a

decade older and he was confined to a wheelchair. Clark was a reticent

test-taker. His demeanor was surly. He did not like to risk an

evaluation. He was bitter, it seemed, at life in general. On the

SPIB his responses were unique in that he marked with huge X's whose

centers only would fit in the allotted boxes. His Self-Perception

Inventory results were surprisingly positive in light of Clark's

projected attitude.

Sam Conrad was 20 years of age, living in Pratt and employed by

that city installing water lines. Arriving on a Friday evening for

testing, he was dressed in dirty overalls and admitted that he came

only because of the promised free meal. During the testing, which

occurred in a dilapidated school building in Pratt, Sam constantly

made inside jokes with another subject. He appeared to bear ill

feelings for being reminded of his intellectual status. He scored










among the highest of all the subjects on both the SPIB and the SPI.

Sam possessed the technical check writing skills but was unsure of

some of the implications of keeping a checking account. On the

Self-Perception Inventory he gave himself all top scores except for

three items. Even on those he ranked himself positively (+1).

Tested in Lawrence was Phil Burns who worked in the same

college cafeteria as did Larry Adams. He was 20 years of age and

lived with his parents. He had still not settled on a designated

name as he alternately signed his test sheets as George (his middle

name) and Phil. On the Saturday he was tested, Phil came in work

overalls as he had been helping his father paint the house. Through-

out the session he was patient, cooperative, and well-mannered. On

the budgeting subtest of the SPIB, Phil missed several items related

to financial considerations of home rental or ownership. This was

probably due to the fact that he had not yet had to set up his own

home situation. In his Job Related Behavior subtest, Phil showed a

strong preference for not rocking the boat when the items concerned

relations with his boss or fellow workers. His SPI results showed a

quite positive self-concept.

The only black in the random sample was Monte Hooks, who was 21

and unemployed when he was tested in Wichita. He was referred by

the placement officer at Kansas Elks Training Center. He lived with

his mother and siblings in a small house near Wichita State University.

Opportunities for part-time employment abound due to proximity to

the University and Monte has held several university jobs in the

past. He is socially active and has an interest in spectator sports.

His personality is pleasant and although he likes loud soul music










and jokes around with his compatriots, his manner is not abrasive.

On the day he was tested, Monte was neatly groomed and carried an

Afro "pic" in his back pocket. He scored high on the SPIB. On

the subtest of Budgeting, Monte missed an item possibly because

of a cultural difference. He agreed that half of what one spends

each month should be for clothes. As nice clothes high a high

priority in his culture and because he did not spend his money

on rental (while living at home), Monte may justifiably spend half

his income on clothes. His self-concept was positive and he assessed

himself as both happy and self-satisfied.

Fred Detweiler was 20 years old, unemployed, and lived in

suburban Wichita with his parents. His family was well-to-do and

responsible for at least one of his job placements. Fred was slender

and lightly built. He was slightly effeminate and very other-directed.

At the time of the testing, he had been fired from at least two

jobs. The first position, as part of a clean up crew in a school

cafeteria, was lost because the duties were too complex for him.

The second job, at his parent's country club as a busboy, was

terminated because he had been too gregarious with patrons and

the other staff and as a result did not accomplish his tasks. Fred's

scores on the SPIB reflected an almost total lack of awareness of

money management. His lowest subtest was that of Job Related

Behavior. His self-concept was in the high range.















CHAPTER VI
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS


The primary purpose of the present study was to investigate

for differences and relationships between employed mentally

retarded males and unemployed mentally retarded males in adult

adjustment skills and self-perception. The secondary purpose of

the present study was to investigate the level of agreement between

employed mentally retarded males and significant others in their

lives regarding the adequacy of their employment and the level of

agreement between unemployed mentally retarded males and significant

others in their lives regarding their employability. Additional

information gathered from the variables of discrete age groupings

and location, as well as employment status, was used to probe into

the variables' possible association with adult adjustment skills and

self-perception.


Summary

Adult adjustment skills and self-concepts were investigated in

employed and unemployed adult mentally retarded males. Adult

adjustment skills were determined through administration of the

Social and Prevocational Information Battery and self-concepts were










determined through the Self-Perception Inventory. In addition,

the employed mentally retarded adults were asked if they felt their

present employment sufficiently tapped their occupational skills.

The unemployed mentally retarded adults were asked if they thought

they were capable of acquiring and maintaining competitive employment.

Significant others were asked the same job adequacy and employability

questions as were the subjects and probability of agreement was

gauged for these questions.

A review of related literature provided information concerning

the following topics: the work ethic in Western society, employment

of mentally handicapped adults, adjust adjustment, adult adjustment

of mentally handicapped individuals, self-perceptions held by mentally

handicapped persons and the perceptions of handicapped persons held

by significant others, and adaptive behavior and self-concept rating

scales. Each topic was summarized at its conclusion.

The population for the study was selected from mentally retarded

men between the ages of 18 and 54 who resided in the State of Kansas.

They were either presently engaged in competitive employment or con-

sidered by significant others to be capable of competitive employ-

ment. Twenty of the subjects were presently competitively employed

and 20 of the subjects were presently unemployed.

During a 57-day period between mid-May and mid-July of 1980,

subjects were administered the Social and Prevocational Information

Battery (Halpern et al., 1975) and the Self-Perception Inventory

(Soares & Soares, 1974). Data from the above listed instruments

were collected and treated with two statistical techniques, i.e.,










one way analysis of variance and a Fisher Exact Test used for small

marginal frequencies. Two primary hypotheses were designed to

determine if there were significant differences and relationships

between adult adjustment scores and self-concept scores of employed

and unemployed mentally retarded men between the ages of 18 and 54.

Two secondary hypotheses were designed to determine the probability

of agreement between subjects and significant others when queried

as to the subjects' adequacy of employment, if employed, or ability

to secure and maintain a competitive job, if unemployed.

Additional data from SPIB and SPI mean scores were accumulated

and analyzed based on the main effects and interactions of three

variables. These variables were membership in discrete age groups,

residence in rural or urban locations, and employment status.

As no significant differences were determined between the mean

SPIB scores of the employed and unemployed subjects, Hypothesis 1 was

not rejected. Therefore it was concluded that competitively employed

mentally retarded males between the ages of 18 and 54 did not differ

from unemployed mentally retarded males, within the same age range

in adult adjustment skills as reflected by the Social and Prevocational

Information Battery.

As no significant differences were determined between the mean

SPI scores of the employed and unemployed subjects, Hypothesis 2

was not rejected. Therefore it was concluded that competitively

employed mentally retarded males between the ages of 18 and 54 did

not differ from unemployed mentally retarded males, within the same

age range, in self-concept as reflected by the Self-Perception Inventory.










With the secondary hypotheses 3 and 4 mixed results were

attained. Hypothesis 3 was rejected, signifying that the occurrence

of agreement of responses between employed subjects and verifiers was

large enough to not have occurred by chance. Hypothesis 4 was not

rejected, signifying that the discordance of agreement of responses

between unemployed subjects and verifiers was too great to have

occurred by chance.

Combining the variables of discrete age groups and location

with employment status, several interesting observations were

obtained with the SPIB subtests and the SPI. On the SPIB subtests

of home management, health care, and hygiene and grooming, urban

employed and unemployed subjects attained nearly identical scores,

while on the same subtests, large discrepancies were found between

rural employed (higher) and unemployed. On the SPI analysis negative

self-concepts of employed males between the ages of 30 and 54 was

discovered.


Conclusions

Conclusions of the present study were made based on statistical

analysis of differences and relationships between employed and unem-

ployed mentally retarded males between the ages of 18 and 54. The

following conclusions were made as to the development of differences

and relationships concerning dependent variables in the present study.

Hypothesis 1 stated that there is no significant difference between

employed mentally retarded adults and unemployed mentally retarded

adults in the area of adult adjustment as determined by a comparison










of their mean scores on the Social and Prevocational Information

Battery. Any differences between the two groups on the mean scores

for the SPIB were attributed to chance and therefore Hypothesis 1

was not rejected.

Hypothesis 2 stated that there is no significant difference

between employed mentally retarded adults and unemployed mentally

retarded adults in the area of self-concept as determined by a compari-

son of their mean scores on the Self-Perception Inventory. Any differ-

ences between the two groups on the mean scores for the SPI were

attributed to chance and therefore Hypothesis 2 was not rejected.

Hypothesis 3 stated that there is no relationship between the

responses of employed mentally retarded adults and significant others

in their lives regarding their adequacy of employment. Based upon

statistical analysis, it was concluded that the occurrence of agreement

of responses was large enough to not have occurred by chance and

therefore Hypothesis 3 was rejected.

Hypothesis 4 stated that there is no relationship between the

responses of unemployed mentally retarded adults and significant others

in their lives regarding their employability. Based upon statistical

analysis, it was concluded that discordance in agreement was too great

to have occurred by chance and therefore Hypothesis 4 was not rejected.

General conclusions were made based on statistical analyses of

data collected on the 40 subjects in this study. It was concluded

that competitively employed mentally retarded males between the ages

of 18 and 54 did not differ from unemployed mentally retarded males,

within the same age range, in adult adjustment skills as reflected










by the Social and Prevocational Information Battery. Although the

mean score of the employed group was greater than the mean score of

the unemployed group, the difference between the means was not large

enough to be significant beyond chance.

These findings give the possible implication that the state of

employment with its attendant learning experiences and responsi-

bilities did not result in improved adult adjustment skills for those

mentally retarded individuals who were employed. An alternate implica-

tion was that retarded men with greater adult adjustment skills opt

for the unemployment rather than the employment status. The assumption

for this implication was that unemployment was the result of choice

and not other variables.

The second general conclusion reached was that competitively

employed mentally retarded males between the ages of 18 and 54 did

not differ from unemployed mentally retarded males, within the same

age range, in self-concept as reflected by the Self-Perception

Inventory. For this instrument, the mean score of the unemployed group

was actually higher than that of the employed group. However, the

difference between the means was not large enough to be significant

beyond chance. These findings give the possible implication that the

status of employment was insufficient to cause a significant increase

in the employed individual's self-concept. An indirect implication

may be that competitive employment is no longer considered the sine

qua non in a male individual's repertoire.

The third general conclusion reached was that the employed

group and their verifiers concurred in their perception of the

adequacy of the former's employment to the extent that significant










doubt could be ruled out. The fact that two of the three employed

individuals who expressed the feeling that their jobs were inadequate

for their skills were in disagreement with their significant others

was offset by the high rate of agreement between those who felt

their jobs adequate and their verifiers.

The fourth general conclusion reached was that there was

significant room for doubting agreement between unemployed indivi-

duals and their verifiers regarding their employability. As in the

third hypothesis, the small number of negative responses were out-

numbered by verifier disagreements. However, the three disagreements

among the positive responses, compared to only one disagreement among

the positive responses in Hypothesis 3, had a critical effect on the

outcome. Yet, a conflicting result showing agreement between subjects

and verifiers on a ratio test, supported the contention that substan-

tial agreement did take place.


Implications


The gathering and analysis of data based on the inherent presence

of the variables of discrete age groups, location, and employment

status yielded several interesting implications using analysis of

variance procedures. For the overall test scores, although no signi-

ficant differences could be discerned for the SPIB at the .05 level,

the interaction between Employment Status and Location was extremely

close at F. = .058. Regardless of the caution this engendered, it

appeared that mentally retarded men who were employed and lived in

rural areas, may have possessed more adult adjustment skills as










measured by the Social and Prevocational Information Battery than

those who were unemployed.

In the analyses of variance performed for each of the SPIB sub-

tests, several conclusions were reached. For the measured skill of

budgeting, rural subjects in the 30-54 age group showed significantly

less aptitude than members of any of the other five Discrete Age--

Location groups. However, as the size of this group (3) was only

half as large as the next smallest group, the question could be

raised concerning this group's right to represent mentally retarded

rural men between the ages of 30 and 54. The subtests of home

management, health care, and hygiene and grooming followed remark-

ably similar patterns in demonstrating significant mean differences

when subjected to analyses of variance. For each of the above sub-

tests urban subjects achieved nearly identical scores when those who

were employed were compared to those who were unemployed. In the same

subtests, the rural employed significantly outdistanced the rural

unemployed in each case. Regarding home management, the speculation

may be made that a mentally retarded man who holds a job, would be

more likely to live independently, either in his parent's household

or by himself than one who is unemployed. Health care may be

indirectly job related as nonretarded coworkers may be inadvertently

used as health care models. Proper hygiene and grooming knowledge

may be directly related to the work world as acceptable appearance

may be a prerequisite to successful job acquisition and maintenance.

Although these tentative conclusions may explain the difference in

these scores between employed and unemployed rural subjects, it does

not explain the discrepancy between employed rural and employed urban




Full Text

PAGE 1

',))(5(1&(6 ,1 $'8/7 $'-8670(17 $1' 6(/)&21&(37 %(7:((1 (03/2<(' $1' 81(03/2<(' 0(17$//< +$1',&$33(' 0$/(6 %< -$0(6 % +($1(< $ ',66(57$7,21 35(6(17(' 72 7+( *5$'8$7( &281&,/ 2) 7+( 81,9(56,7< 2) )/25,'$ ,1 3$57,$/ )8/),//0(17 2) 7+( 5(48,5(0(176 )25 7+( '(*5(( 2) '2&725 2) 3+,/2623+< 81,9(56,7< 2) )/25,'$

PAGE 2

$&.12:/('*0(176 $ QRWH RI DSSUHFLDWLRQ LV FHUWDLQO\ LQ RUGHU IRU DOO WKRVH ZKR KDYH JLYHQ VR IUHHO\ RI WKHLU WLPH DQG H[SHUWLVH WKDW WKLV HQGHDYRU PD\ VXFFHHG 7KDQNV WR P\ ZLIH .DWK\ ZKR W\SHG WKH ILUVW WKUHH HYROYLQJ GUDIWV 7KDQNV WR 0UV 0DUWKD &ODIOLQ 'U (ODLQH %HDVRQ 'U 7RP .LQJ 0V -XG\ ,DFLQR 'U %LOO %RRPHU 'U (OL]DEHWK 'HODQH\ 0V -DQHW
PAGE 3

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

PAGE 4

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

PAGE 5

6XEMHFWV 9HULILHUV 'DWD &ROOHFWLRQ ,QVWUXPHQWDWLRQ f &+$37(5 ,9 $1$/<6,6 2) '$7$ 6WDWLVWLFDO 7UHDWPHQW 6WDWLVWLFDO $QDO\VLV RI +\SRWKHVHV 7HVWHG +\SRWKHVLV +\SRWKHVLV +\SRWKHVLV +\SRWKHVLV 6XPPDU\ &+$37(5 9 '(6&5,37,21 2) 5$1'20 6$03/( &+$37(5 9, 6800$5< &21&/86,216 $1' 5(&200(1'$7,216 6XPPDU\ &RQFOXVLRQV ,PSOLFDWLRQV 5HFRPPHQGDWLRQV $33(1',; $ /(77(5 2) 5(48(67 )25 68%-(&76 % 62&,$/ $1' 35(92&$7,21$/ ,1)250$7,21 %$77(5< & 6(/)3(5&(37,21 ,19(1725< 5$: '$7$ 5()(5(1&(6 %,2*5$3+,&$/ 6.(7&+ Y

PAGE 6

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n DGXOW DGMXVWPHQW VNLOOV DQG VHOIFRQFHSWV 7KHVH LQVWUXPHQWV ZHUH WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ DQG WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ $QDO\VLV RI YDULDQFH ZDV XVHG WR GHWHUPLQH WKH H[LVWHQFH RI VLJQLILn FDQW GLIIHUHQFHV LQ WKH PHDQ VFRUHV RI WKH JURXSV LQYROYHG ,Q DGGLWLRQ HPSOR\HG VXEMHFWV ZHUH DVNHG LI WKH\ FRQVLGHUHG WKHPVHOYHV DGHTXDWHO\ HPSOR\HG DQG XQHPSOR\HG VXEMHFWV ZHUH DVNHG LI WKH\ WKRXJKW WKH\ FRXOG DFTXLUH DQG PDLQWDLQ FRPSHWLWLYH HPSOR\PHQW 6LJQLILFDQW YL

PAGE 7

RWKHUV LQ WKH VXEMHFWVn OLYHV ZHUH DVNHG WKHLU UHVSRQVHV WR WKH VDPH TXHVWLRQV IRU YHULILFDWLRQ ,Q RUGHU WR GHWHUPLQH ZKHWKHU WKH VXEMHFWV DQG YHULILHUV DJUHHG LQ WKHLU UHVSRQVHV EH\RQG FKDQFH SUREDELOLW\ WKH )LVKHU ([DFW 7HVW ZDV DGPLQLVWHUHG 7R VXSSOHPHQW WKH )LVKHU ([DFW 7HVW D UDWLR WHVW ZDV DOVR JLYHQ $GGLWLRQDO DQDO\VHV RI YDULDQFH ZHUH SHUIRUPHG RQ YDULDEOHV RI GLVFUHWH DJH JURXSV DQG ORFDWLRQ LQ FRQMXQFWLRQ ZLWK HPSOR\PHQW VWDWXV 5HVXOWV RI WKH DQDO\VLV RI YDULDQFH GHVLJQ DSSOLHG WR WKH DGXOW DGMXVWPHQW DQG VHOIFRQFHSW LQVWUXPHQW PHDQ VFRUHV LQGLFDWHG WKDW QR VLJQLILFDQW GLIIHUHQFHV H[LVWHG EHWZHHQ HPSOR\HG DQG XQHPSOR\HG VXEMHFWV LQ WKRVH DUHDV 5HVXOWV RI DSSOLFDWLRQ RI WKH )LVKHU ([DFW 7HVW WR UHVSRQVHV RQ MRE DGHTXDF\ E\ WKRVH HPSOR\HG RU HPSOR\DELOLW\ E\ WKRVH XQHPSOR\HG PDWFKHG ZLWK WKHLU YHULILHUV LQGLFDWHG DJUHHPHQW EHWZHHQ WKRVH HPSOR\HG DQG WKHLU YHULILHUV DQG GLVDJUHHPHQW EHWZHHQ WKRVH XQHPSOR\HG DQG WKHLU YHULILHUV +RZHYHU D UDWLR WHVW VKRZHG VLJQLILFDQW DJUHHPHQW EHWZHHQ VXEMHFWV DQG YHULILHUV LQ ERWK JURXSV 8VLQJ WKH VXSSOHPHQWDU\ DQDO\VHV RI YDULDQFH PHDQ VFRUHV WKH KLJKHVW DJH JURXS ZDV GHWHUPLQHG WR SRVVHVV WKH ORZHVW OHYHOV RI VHOISHUFHSn WLRQ 6SHFLILF VXJJHVWLRQV ZHUH PDGH IRU HODERUDWLRQ DQG GLYHUVLILFDn WLRQ RI WKH UHVHDUFK VXEMHFW PDWWHU RI WKLV VWXG\ 9,,

PAGE 8

&+$37(5 ,1752'8&7,21 7KH SXUSRVH RI WKLV VWXG\ ZDV WR FRPSDUH DGXOW DGMXVWPHQW VFRUHV DQG VHOISHUFHSWLRQ VFRUHV RI HPSOR\HG PHQWDOO\ KDQGLFDSSHG PDOHV ZLWK WKRVH RI XQHPSOR\HG PHQWDOO\ KDQGLFDSSHG PDOHV -XVWLILFDWLRQ IRU WKLV VWXG\ UHVWHG LQ WKH UHVHDUFKHUnV TXHVWLRQLQJ RI WKH YDULDEOH RI HPSOR\DELOLW\ DV D FULWLFDO IDFWRU LQ DVVRFLDWLRQ ZLWK DGXOW DGMXVWPHQW DQG VHOIFRQFHSW DV PHDVXUHG E\ VSHFLILF LQVWUXn PHQWV GHPRQVWUDWLQJ VDWLVIDFWRU\ GHJUHHV RI YDOLGLW\ DQG UHOLDELOLW\ +LVWRULFDOO\ HPSOR\PHQW KDV EHHQ FRQVLGHUHG D SULQFLSDO FULWHULRQ IRU GHWHUPLQLQJ VXFFHVVIXO DGMXVW DGMXVWPHQW 2OVKDQVN\ f (GJHUWRQ DQG %HUFRYLFL f KRZHYHU TXHVWLRQHG WKH UHOHYDQFH RI HPSOR\PHQW WR DGMXVWPHQW LQ D IROORZXS VWXG\ RI GHLQVWLWXWLRQDOL]HG PHQWDOO\ UHWDUGHG DGXOWV ,Q (GJHUWRQV RULJLQDO VWXG\ RI WKLV JURXS KH FRQFOXGHG WKDW PDQ\ RI WKH VXEMHFWV DFFHSWHG ZRUN DV WKH TXLQWHVVHQWLDO PHDQV RI SURYLQJ WKHPVHOYHV WR EH QRUPDO ZRUWK\ KXPDQ EHLQJV S f 6OLJKWO\ PRUH WKDQ D GHFDGH ODWHU PDQ\ PHPEHUV RI WKH VDPH JURXS WKRXJKW RI WKHPVHOYHV DV QRUPDO GHVSLWH EHLQJ XQHPSOR\HG S f 7KH DSSDUHQW FRQWUDGLFWLRQV EHWZHHQ WKH ILUVW UHVHDUFK DQG LWV IROORZXS UHJDUGLQJ WKH LQIOXHQFH

PAGE 9

RI ZRUN RQ DGMXVWPHQW ZHUH FDXVH IRU FRQFHUQ E\ LQYHVWLJDWRUV ,I HPSOR\PHQW QR ORQJHU GHPDQGHG D SLYRWDO SRVLWLRQ LQ RQHnV OLIH D UHH[DPLQDWLRQ RI WKH SUHVHQW VHFRQGDU\ FXUULFXODU IRFXV IRU PHQWDOO\ KDQGLFDSSHG VWXGHQWV VHHPHG LQ RUGHU ,Q DGGLWLRQ WKH TXHVWLRQ DURVH DV WR ZKDW FRQFHSW LI DQ\ UHSODFHG WKH ZRUN HWKLF LQ WKH KDQGLFDSSHG LQGLYLGXDOnV KLHUDUFK\ RI YDOXHV 7KH IROORZLQJ UHVHDUFK ZDV SULPDULO\ DQ DWWHPSW WR JDXJH ZKHWKHU KDQGLFDSSHG PDOHV DGMXVWHG WR WKH GHPDQGV RI VRFLHW\ DV ZHOO ZKHQ WKH\ ZHUH QRW ZRUNLQJ DV ZKHQ WKH\ ZHUH ZRUNLQJ DV PHDVXUHG E\ ERWK DQ DGXOW DGMXVWPHQW VFDOH DQG D VHOISHUFHSWLRQ LQYHQWRU\ $OVR LQ RUGHU WR VKHG DGGLWLRQDO OLJKW RQ WKH HPSOR\n PHQW VLWXDWLRQ IRU KDQGLFDSSHG DGXOWV HPSOR\HG SHUVRQV ZHUH TXHULHG FRQFHUQLQJ WKH TXDOLW\ RI WKHLU HPSOR\PHQW ZKLOH XQHPSOR\HG SHUVRQV ZHUH DVNHG WKHLU RSLQLRQV RI WKHLU RZQ HPSOR\DELOLW\ 6LJQLILFDQW RWKHUV ZHUH XVHG WR YDOLGDWH HDFK VXEMHFWnV UHVSRQVH WR WKH TXHVWLRQ FRQFHUQLQJ DGHTXDF\ RI HPSOR\PHQW RU HPSOR\DELOLW\ 7UDGLWLRQDOO\ YRFDWLRQDO HGXFDWLRQ DXWKRULWLHV KDYH FRQn IURQWHG WKH ZRUN HWKLF IURP D UDWKHU XQLILHG SRVLWLRQ %URZQ f FDOOHG ZRUN DQ HVVHQWLDO SDUW RI PDQnV OLIH ZKLFK JLYHV KLP VWDWXV DQG ELQGV KLP WR VRFLHW\ S f +HU]EHUJ 0DXVQHU DQG 6Q\GHUPDQ f FRQGXFWHG D VWXG\ LQ ZKLFK WKH\ FRQn FOXGHG WKDW WKH VLQJOH PRVW HIIHFWLYH YDULDEOH LQ UDLVLQJ WKH PHQWDO KHDOWK OHYHO RI PRVW SHUVRQV ZDV DQ LQFUHDVH LQ WKH FDSDFLW\ IRU ZRUN PRWLYDWLRQ )ULHGPDQQ DQG +DYLJKXUVW f LGHQWLILHG ILYH QHHGV ZKLFK WKH SHUIRUPDQFH RI ZRUN VDWLVILHG 7KH\ ZHUH WKH QHHG IRU LQFRPH WLPH DQG HQHUJ\ H[SHQGLWXUH LGHQWLILFDWLRQ DQG VWDWXV

PAGE 10

DVVRFLDWLRQ DQG PHDQLQJIXO OLIH H[SHULHQFHV
PAGE 11

RWKHUV LH YRFDWLRQDO UDWHUV DQG HPSOR\HUV ,Q DGGLWLRQ WR XVLQJ DQ RXWVLGH DGMXVWPHQW VFDOH WKH SUHVHQW UHVHDUFK IROORZHG WKH VXJJHVWLRQ RI (GJHUWRQ DQG %HUFRYLFL f DQG GHWHUPLQHG DGMXVWn PHQW WKURXJK VHOIFRQFHSW UHVSRQVHV RI WKH VXEMHFWV WKHPVHOYHV 7KH DVVXPSWLRQV WKDW ZRUNHUV ZHUH EHWWHU DGMXVWHG %URZQ f DQG KDG EHWWHU VHOIFRQFHSWV )ULHGPDQQ t +DYLQJKXUVW f WKDQ QRQZRUNHUV KDG IRU WRR ORQJ JRQH XQWHVWHG 7KLV UHVHDUFK UHSUHn VHQWHG WKH ILUVW VWHS WDNHQ WR DSSULVH FRQFHUQHG SURIHVVLRQDOV RI WKH VLWXDWLRQ DV LW H[LVWHG LQ 6WDWHPHQW RI WKH 3UREOHP (PSOR\PHQW KDV ORQJ EHHQ FRQVLGHUHG DQ HVVHQWLDO FULWHULRQ IRU DGXOW DGMXVWPHQW RI PHQWDOO\ KDQGLFDSSHG LQGLYLGXDOV 2OVKDQVN\ f +RZHYHU D UHFHQW VWXG\ (GJHUWRQ t %HUFRYLFL f FDVW GRXEWV RQ WKLV DOOHJDWLRQ DQG FRQFOXGHG WKDW FRQWLQXHG FRPPLWPHQW WR D ZRUNHWKLF PD\ EH LQFUHDVLQJO\ FRXQWHUSURGXFWLYH S f 7KH SUREOHP IRU WKH SUHVHQW UHVHDUFK VWXG\ FRQFHUQHG HPSOR\PHQW DV DQ DVVRFLDWH RI ZRUN DGMXVWPHQW DQG VHOIFRQFHSW :KDW ZDV WKH UHODWLRQVKLS EHWZHHQ HPSOR\PHQW DQG WKH WZR YDULDEOHV RI ZRUN DGMXVWn PHQW DQG VHOIFRQFHSW DPRQJ PHQWDOO\ UHWDUGHG PDOHV" 3XUSRVH RI WKH 6WXG\ ,W ZDV WKH PDMRU SXUSRVH RI WKLV VWXG\ WR FRPSDUH DGXOW DGMXVWn PHQW VFRUHV DQG VHOIFRQFHSW VFRUHV RI HPSOR\HG DQG XQHPSOR\HG

PAGE 12

PHQWDOO\ KDQGLFDSSHG PDOHV EHWZHHQ WKH DJHV RI DQG ,W ZDV WKH VHFRQGDU\ SXUSRVH RI WKLV VWXG\ WR GHWHUPLQH WKH VXEMHFWnV VDWLVn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t /LQN f 7KH LQGHSHQGHQW YDULDEOH RI HPSOR\PHQW GRHV QRW DOWHU WKH VHOIFRQFHSWV RI PHQWDOO\ KDQGLFDSSHG DGXOWV DV PHDVXUHG E\ WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ 6RDUHV t 6RDUHV f 6HH $SSHQGL[ %f 7KH LQGHSHQGHQW YDULDEOHV RI WKH VXEMHFWVn UDWLQJ RI WKH DGHTXDF\ RI WKHLU HPSOR\PHQW DQG WKH YHULILHUVn UDWLQJ RI WKH DGHTXDF\ RI WKH VXEMHFWVn HPSOR\PHQW KDYH QR UHODWLRQVKLS S f 7KH LQGHSHQGHQW YDULDEOHV RI WKH VXEMHFWVn UDWLQJ RI WKHLU HPSOR\DELOLW\ DQG WKH YHULILHUVn UDWLQJ RI WKH VXEMHFWVn HPSOR\ DELOLW\ KDYH QR UHODWLRQVKLS S f

PAGE 13

'HOLPLWDWLRQV 7KH WRSLF IRU WKLV UHVHDUFK ZDV WKH FRPSDULVRQ RI WKH VFRUHV RQ VHOIFRQFHSW DQG DGXOW DGMXVWPHQW VFDOHV RI HPSOR\HG DQG XQn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f ZDV H[FOXGHG DV HPSOR\PHQW OLPLWLQJ SK\VLFDO GLVDELOLWLHV EHJLQ WR WDNH WKHLU WROO LQ WKH PLG V DQG LQ ODWHU \HDUV UHWLUHPHQW PD\ KDYH DIIHFWHG WKH UHVHDUFK ILQGLQJV )HPDOHV ZHUH H[FOXGHG IURP WKH SUHVHQW VWXG\ GXH WR WKH H[SHFWDn WLRQ WKDW D VLJQLILFDQW QXPEHU RI FKRVHQ PHQWDOO\ KDQGLFDSSHG IHPDOHV

PAGE 14

EHWZHHQ WKH DJHV RI DQG ZRXOG KDYH EHHQ HPSOR\HG DV KRXVHZLYHV :HEVWHUnV 1HZ &ROOHJLDWH 'LFWLRQDU\ f GHILQHG D KRXVHZLIH DV D PDUULHG ZRPDQ LQ FKDUJH RI D KRXVHKROG S f ,W ZDV GHWHUPLQHG E\ WKLV UHVHDUFKHU WKDW WKH XQDYRLGDEOH H[WUDQHRXV YDULDEOHV ZKLFK ZRXOG EH LQWURGXFHG LQWR D GHVLJQ LQ ZKLFK KRXVHZLYHV ZHUH LQFOXGHG ZRXOG VHULRXVO\ WKUHDWHQ WKH YDOLGLW\ RI WKLV VWXG\ 7KHVH YDULDEOHV LQFOXGHG WKH ODFN RI D IRUPDO ZDJH DUUDQJHPHQW WKH LQFRQVLVWHQF\ RI D MRE GHVFULSWLRQ DQG WKH DEVHQFH RI D UHFRJQL]HG HPSOR\HU $VVXPSWLRQV )RU WKH SXUSRVH RI WKLV UHVHDUFK WKH DVVXPSWLRQV ZHUH PDGH WKDW Df ERWK VXEMHFWV DQG VLJQLILFDQW RWKHUV UHVSRQGHG LQ DFFRUGn DQFH ZLWK WKHLU DFWXDO SHUFHSWLRQ RI UHDOLW\ LQ DQVZHULQJ UHVSHFWLYH TXHVWLRQV DQG Ef LQGLYLGXDOV FODVVLILHG DV PHQWDOO\ KDQGLFDSSHG ZHUH LQ IDFW PHQWDOO\ KDQGLFDSSHG 5HDOL]LQJ WKDW WKLV FODVVLILn FDWLRQ ZDV DUELWUDU\ QR VDWLVIDFWRU\ PHDVXUH RI DGDSWLYH EHKDYLRU KDG E\ WKH GDWH RI WKLV VWXG\ EHHQ PDGH DYDLODEOH IRU UHVHDUFK 'HILQLWLRQ RI 7HUPV $GYRFDWH RQH SURYLGLQJ VHUYLFHV WR DQ XQHPSOR\HG PHQWDOO\ KDQGLFDSSHG LQGLYLGXDO LQFOXGHV LQ RUGHU RI VHOHFWLRQ YROXQWDU\ DGYRFDWHV VRFLDO ZRUNHUV 6XSSOHPHQWDU\ 6HFXULW\ ,QFRPH FRQWDFW SHUVRQV 9,67$ YROXQWHHUV FOHUJ\ DQG DVVRFLDWHV ZKR WDNH DQ DFWLYH LQWHUHVW LQ WKH VXEMHFW

PAGE 15

0HQWDOO\ KDQGLFDSSHG PHQWDOO\ UHWDUGHG KDYLQJ EHHQ FODVVLILHG DV PHQWDOO\ UHWDUGHG GXULQJ RQHnV SXEOLF VFKRRO FDUHHU E\ RQHnV VFKRRO SV\FKRORJLVW RU E\ WKH 'LYLVLRQ RI +HDOWK DQG 5HKDELOLWDWLYH 6HUYLFHV LQ ODWHU \HDUV E\ D SV\FKRORJLVW DSSRLQWHG IRU GHWHUPLQLQJ RQHnV UHFLSLHQW VWDWXV 0HQWDOO\ UHWDUGHG PHQWDOO\ KDQGLFDSSHG (PSOR\HG SUHVHQWO\ VDODULHG LQ D FRPSHWLWLYH RFFXSDWLRQDO SRVLWLRQ 5XUDO UHVLGHQWLDO DUHD KDYLQJ D SRSXODWLRQ RI OHVV WKDQ 6HOI3HUFHSWLRQ ,QYHQWRU\ 63,f PHDVXUH RI KRZ WKH VXEMHFW VHHV KLPVHOI 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ 63,%f VHULHV RI QLQH WHVWV GHVLJQHG WR DVVHVV NQRZOHGJH RI VNLOOV DQG FRPSHWHQFLHV ZLGHO\ FRQVLGHUHG FULWLFDO IRU WKH XOWLPDWH FRPPXQLW\ DGMXVWPHQW RI PHQWDOO\ UHWDUGHG LQGLYLGXDOV 8QHPSOR\HG SUHVHQWO\ XQVDODULHG 8UEDQ UHVLGHQWLDO DUHD KDYLQJ D SRSXODWLRQ H[FHHGLQJ 9HULILHU RQH XVHG IRU FRQILUPDWLRQ RU VXEVWDQWLDWLRQ

PAGE 16

&+$37(5 ,, 5(9,(: 2) 5(/$7(' /,7(5$785( 7KLV VHFWLRQ GLYLGHG WKH OLWHUDWXUH UHYLHZHG LQWR VL[ VXEn VHFWLRQV WR EH XVHG DV IRFDO SRLQWV IRU WKH VWXG\ 7KH VXEVHFn WLRQV DUH Df WKH ZRUN HWKLF LQ :HVWHUQ VRFLHW\ Ef HPSOR\PHQW RI PHQWDOO\ KDQGLFDSSHG DGXOWV Ff DGXOW DGMXVWPHQW Gf DGXOW DGMXVWPHQW RI PHQWDOO\ KDQGLFDSSHG LQGLYLGXDOV Hf VHOISHUFHSn WLRQV KHOG E\ PHQWDOO\ KDQGLFDSSHG SHUVRQV DQG WKH SHUFHSWLRQV RI PHQWDOO\ KDQGLFDSSHG SHUVRQV KHOG E\ VLJQLILFDQW RWKHUV DQG If DGDSWLYH EHKDYLRU DQG VHOIFRQFHSW UDWLQJ VFDOHV (DFK VXEVHFWLRQ ZDV GHWHUPLQHG WR EH GLUHFWO\ UHOHYDQW WR WKH UHVHDUFK SURMHFW 7KH :RUN (WKLF LQ :HVWHUQ 6RFLHW\ 7KH VWDWXV RI WKH ZRUN HWKLF LQ :HVWHUQ VRFLHW\ ZDV RI IXQGDn PHQWDO LPSRUWDQFH LQ WKH FRPSLODWLRQ RI WKLV UHVHDUFK SURMHFW $OWKRXJK PXFK SRSXODU OLWHUDWXUH UHSRUWHG D VHULRXV HEELQJ RI WKH ZRUN HWKLF LQ :HVWHUQ FXOWXUH VRPH ZULWHUV GLVSXWHG VXFK DQ DOOHJDn WLRQ ZKLOH RWKHUV GHIHQGHG WKLV DOOHJHG HEELQJ DV D QDWXUDO FRQVHn TXHQFH RI SRRU PDQDJHPHQW *RRGZLQ 2n7RROH 6WHQFHO 7LIIDQ\ &RZDQ t 7LIIDQ\ f

PAGE 17

$QWKURSRORJLVWV LQ WKLV FHQWXU\ VWXGLHG SULPLWLYH WULEHV ZKRVH ODQJXDJH XVDJH PD\ VKHG VRPH OLJKW RQ WKH RULJLQV RI WKH :HVWHUQ ZRUN HWKLF $OWKRXJK WKH ODQJXDJHV RI WKH WULEHV RI LQWHUHVW ZHUH H[FHHGLQJO\ ULFK LQ ODEHOLQJ DUHDV RI WKHLU UHVSHFn WLYH FRQFHUQV WKHUH H[LVWHG QR ZRUGV GHQRWLQJ ZRUN 7KH ODFN RI D WHUP IRU ZRUN GLG QRW KRZHYHU PHDQ WKDW ZRUN ZDV DEVHQW IURP WKHVH VRFLHWLHV 2Q WKH FRQWUDU\ ZRUN ZDV VXFK DQ LQWHJUDO SDUW RI HYHU\GD\ OLIH WKDW WR EH DZDNH ZDV V\QRQ\PRXV ZLWK WR EH ZRUNLQJ 7KLV FRXOG ZHOO KDYH EHHQ WKH VLWXDWLRQ LQ WKH SUHOLWHUDWH :HVW .UDQVEHUJ t *LHV f ,Q DQ\ FDVH E\ WKH &ODVVLFDO (UD LQ WKH :HVW DQ DOWHUQDWLYH WR ZRUN KDG EHHQ HPEUDFHG DW OHDVW LQ WKHRU\ $ULVWRWOH FRQn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nV ZRUGV ,Q WKH WKLQJV RI WKH OLIH WKH ODERUHU LV PRVW OLNH WR *RG 7DZQH\ S f $WWDFNLQJ WKH PRQDVWLF OLIH RI FRQWHPSODWLRQ DQG SUD\HU 0DUWLQ /XWKHU IHOW WKHUH ZDV QR VXEVWLWXWH IRU D WDQJLEO\ SURGXFWLYH

PAGE 18

Q YRFDWLRQ +H FRQVLGHUHG ZRUN WR EH WKH EDVH DQG WKH NH\ WR OLIH .UDQVEHUJ t *LHV f 0DQ\ RI WKH H[SORUHUV DQG HDUO\ VHWWOHUV ZKR FDPH WR WKH +HZ :RUOG GLG QRW VKDUH WKLV YHQHUDWLRQ IRU ODERU &ROXPEXV KLPVHOI XSRQ VHHLQJ WKH WURSLFDO YHJHWDWLRQ DORQJ WKH YHUGDQW VKRUHOLQH GHVFULEHG WKH ODQG DV D VHFRQG *DUGHQ RI (GHQ ZKHUH IRRG ZDV DYDLOn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nV ZRUWK DQG IUHHGRP ZDV LQH[WULFDEO\ ERXQG WR KLV H[HPSWLRQ IURP ZRUN *HQWLOLW\ EHFDPH V\QRQ\PRXV ZLWK OHLVXUH 5RGJHUV f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

PAGE 19

RI ZHDOWK 5RGJHUV f )URP ZKHQ LPPLJUDWLRQ UHFRUGV ZHUH ILUVW NHSW WR DOPRVW RQHKDOI PLOOLRQ (XURSHDQ LPPLJUDQWV FDPH WR $PHULFD PDQ\ HVSRXVLQJ WKH 3URWHVWDQW ZRUN HWKLF %UDGGRFN 1HXKDXVHU t 5HHG f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f &RQWUDU\ WR FRPPRQ EHOLHI WKH ZRUN HWKLF ZKLFK EORVVRPHG LQ WKH 8QLWHG 6WDWHV DURXQG GLG QRW FRQVLVW VROHO\ RI WKH 3URWHVWDQW PRUDOLVWVn IHDU RI LGOHQHVV DQG WKH GRFWULQH RI XVHIXOQHVV 7ZR RWKHU LQJUHGLHQWV FDXVHG LW WR WUDQVFHQG IXQGDPHQWDOLVW UHOLJLRXV YDOXHV LQ LWV DWWUDFWLYHQHVV 7KHVH DGGLWLRQDO HOHPHQWV ZHUH WKH GUHDP RI VXFFHVV DQG WKH LGHD WKDW ZRUN FRXOG EH ERWK D FUHDWLYH DQG D IXOILOOLQJ DFW 5RGJHUV f /LWHUDWXUH RQ WKH VHOIPDGH PDQ ZKR WRLOHG LQFHVVDQWO\ DQG ZDV UHZDUGHG E\ IDPH DQG ZHDOWK EXUJHRQHG DFURVV $PHULFD 5HIHUULQJ WR WKH FUHDWLYH SRWHQWLDO RI WKH ODERUHU 7KRPDV &DUO\OH ZURWH $ VPDOO 3RHW HYHU\ :RUNHU LV f

PAGE 20

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f GHVFULEHG D 1HZ
PAGE 21

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n UHOHJDWLRQ RI ZRUN IURP DQ HVVHQWLDO WR DQ LQVWUXPHQWDO YLUWXH 5RGJHUV f ,Q WKH ILUVW FRQYHQWLRQ RI WKH 1DWLRQDO /DERU 8QLRQ ZDV KHOG 7KLV ZDV WKH ILUVW QDWLRQDO ODERU IHGHUDWLRQ LQ WKH 8QLWHG 6WDWHV ,W ODVWHG KDUGO\ D GHFDGH EXW ZDV VRRQ UHSODFHG E\ WKH PRUH UHVLOLHQW $PHULFDQ )HGHUDWLRQ RI /DERU $V WKH /DERU 0RYHPHQW LQFUHDVHG LQ VWUHQJWK PDQ\ RI WKH KDUVKHU ZRUNLQJ FRQGLWLRQV ZHUH LPSURYHG .DUVRQ f +RZHYHU WKH GHVWUXFWLYH HIIHFWV RI LQGXVWULDOL]DWLRQ RQ WKH ZRUN HWKLF DSSHDU QRW WR KDYH EHHQ VHULRXVO\ DOWHUHG 7ZR GHSUHVVLRQV DQG WZR :RUOG :DUV EHWZHHQ DQG HIIHFWLYHO\ SXQFWXDWHG WKH ODERU FRQFHUQV RI WKH $PHULFDQ ZRUNHU $IWHU :RUOG :DU ,, D VHFRQG WKUHDW WR WKH ZRUN HWKLF DSSHDUHG LQ WKH IRUP RI PHFKDQL]DWLRQDXWRPDWLRQ %\ WKH DJH RI DXWRPDWLRQ KDG FDXVHG VHUYLFH ZRUNHUV VDOHVSHUVRQV JRYHUQPHQW HPSOR\HHV PDLQWHQDQFH ZRUNHUV HWFf WR UHSODFH WKRVH LQ PDQXIDFWXULQJ DV WKH SUHGRPLQDQW ZRUN JURXS LQ WKH $PHULFDQ ODERU IRUFH $XWRPDWLRQ

PAGE 22

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f FRQFOXGHG WKDW QR PRUH WKDQ SHUFHQW RI LQGXVWULDO ZRUNHUV ZHUH MRERULHQWHG 7KH VWXG\ DGPLWWHG WKDW PRVW ZRXOG FRQWLQXH ZRUNLQJ HYHQ LI WKH\ GLG QRW QHHG WKH PRQH\ EXW RQO\ EHFDXVH WKH\ ZHUH SUHVHQWHG ZLWK QR PHDQLQJIXO DOWHUQDWLYHV %OXH FROODU ZRUNHUV ZHUH VHHQ DV VWLOO DFFHSWLQJ WKH QHHG IRU ZRUN EXW QRW H[SHFWLQJ PXFK IXOILOOPHQW IURP WKHLU SUHVHQW MRE 7LIIDQ\ HW DO f UHDFKHG WKH GUHDU\ FRQFOXVLRQ WKDW LQFRPH KDV EHFRPH WKH VROH VWDQGDUG RI ZRUN VDWLVIDFWLRQ S f 7KH TXHVWLRQ LQHYLWDEO\ DURVH DV WR WKH UROH WKH $PHULFDQ ZHOIDUH SROLFLHV RI WKH nV DQG nV SOD\HG LQ WKH GHJHQHUDWLRQ RI WKH ZRUN HWKLF (YLGHQFH SUHVHQWHG ERWK DJDLQVW DQG LQ IDYRU RI WKH SUHVHQW ZHOIDUH V\VWHP OHIW WKH LVVXH LQ GRXEW $FFRUGLQJ WR *RRGZLQ f WKH UHFLSLHQWV RI ZHOIDUH YDOXHG ZRUN LQLWLDOO\ DV PXFK DV WKH PDLQVWUHDP RI VRFLHW\ +RZHYHU WKH\ WHQGHG WR ORVH LQWHUHVW LQ ZRUN ZKHQ WKH\ GLVFRYHUHG WKDW WKHLU HIIRUWV WR DFTXLUH DQG PDLQWDLQ HPSOR\PHQW ZHUH IXWLOH 6WHQFHO f ZURWH DERXW WKH FXUUHQW GLVGDLQ IRU WKH ZRUN HWKLF DPRQJ WHHQDJHUV HVSHFLDOO\ EODFN \RXWK )RXU HOHPHQWV ZRUNHG DJDLQVW WKH VXFFHVVIXO MRE

PAGE 23

PDLQWHQDQFH RI WKLV VXEJURXS 7KH\ SRVVHVVHG H[WUHPHO\ OLPLWHG MRE TXDOLILFDWLRQV ZHOIDUH NHSW WKHP LQ IRRG FORWKLQJ DQG KRXVLQJ DQ LQWHJUDO FRPSRQHQW RI WKHLU VRFLDO V\VWHP ZDV GHSHQGHQFH RQ ZRPHQ DQG PRVW LPSRUWDQWO\ HDV\ PRQH\ WKURXJK LOOHJDO DFWLYLW\f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nV SRYHUW\ SUREOHP &RVWHOOR f ,Q D YRFDWLRQDO HGXFDWLRQ WH[W :HQULFK DQG :HQULFK f LQVLVWHG WKDW WKH ROGIDVKLRQHG ZRUN HWKLF FRQWLQXHG WR WKULYH LQ WKLV FRXQWU\ ,W ZDV SHUKDSV WHOOLQJ WR QRWH WKDW QRQH RI WKH UHIHUHQFHV WKH\ FLWHG %URZQ )ULHGPDQQ t +DYLJKXUVW +HU]EHUJ HW DO f LQ VXSSRUW RI WKLV SURSRVLWLRQ KDG EHHQ SXEOLVKHG ZLWKLQ WKH SDVW WZR GHFDGHV ZKHQ WKH EUXQW RI DXWRPDWLRQ KDG EHHQ IHOW ,Q FRQWUDVW WR WKH :HQULFK DQG :HQULFK ZRUN 7HUNHO f VSRNH RI WKH GDLO\ KXPLOLDWLRQV RI ZRUN RI ZRUNHUV ZKR FRPSDUHG WKHPVHOYHV WR URERWV ZKRVH RQO\ KXPDQ DFWLRQV ZHUH DW WKH EHJLQQLQJ DQG HQG RI WKH ZRUN GD\ ,Q EHWZHHQ GRQnW HYHQ WU\ WR WKLQN S f 1HII f DVVHUWHG WKDW VRPH SHRSOH GLG QRW UHDOO\ VXFFHHG LQ ZRUN LQ VSLWH RI KDYLQJ WKH UHTXLVLWH PHQWDO DQG SK\VLFDO

PAGE 24

DELOLWLHV (GJHUWRQ DQG %HUFRYLFL f IRXQG WKDW WKHLU VXEMHFWV UDUHO\ PHQWLRQHG ZRUN DV EHLQJ QHFHVVDU\ IRU WKHLU VHOIHVWHHP 7KH\ YLHZHG ZRUN QRW DV IXOILOOLQJ EXW DV D PHDQV WR SXUFKDVLQJ SRZHU 7KRVH RQ ZHOIDUH YLHUH QHLWKHU VHOIFRQVFLRXV DERXW WKH IDFW QRU HDJHUO\ VHDUFKLQJ IRU HPSOR\PHQW $Q LQGHSHQGHQW WDVN IRUFH KHDGHG E\ -DPHV 2n7RROH UHFHQWO\ LVVXHG D UHSRUW RQ WKH UHODWLRQVKLS EHWZHHQ ZRUN DQG WKH TXDOLW\ RI OLIH 2n7RROH f 0XFK RI WKH EODPH RQ WKH UHFRJQL]HG ODFN RI LQFHQWLYH WR ZRUN LQGXVWULRXVO\ ZDV SODFHG QRW RQ WKH LQGLYLGXDO ZRUNHU EXW RQ WKH HQWLUH SKLORVRSK\ XSRQ ZKLFK WKH $PHULFDQ ZRUN ZRUOG H[LVWV $FFRUGLQJ WR PXFK RI WKH HYLGHQFH DPDVVHG LQ WKH UHSRUW KLJK DEVHQWHHLVP VROGLHULQJ RQWKHMRE DQG YROXQWDU\ XQHPSOR\PHQW DUH EDVLFDOO\ XQRUJDQL]HG UHEHOOLRQV DJDLQVW GXOO PHDQLQJOHVV MREV 2WKHU FDXVHV RI GLVFRQWHQW ZHUH WKH DWWHPSWHG PROGLQJ RI KXPDQ ZRUNHUV LQWR WLPHHIILFLHQF\ PDFKLQHV E\ DGKHUHQWV RI 7D\ORUnV VFLHQWLILF PDQDJHPHQW PRYHPHQW f WKH KXJHQHVV RI ZRUN RUJDQL]Dn WLRQV UHOHJDWLQJ WKH LQGLYLGXDO ODERUHU WR DQ LQFUHDVLQJO\ PLQXWH SRVLWLRQ ZLWKLQ WKH RUJDQL]DWLRQ DQG WKH JUDGXDO \HW FRQWLQXDO DWWULWLRQ RI VHOIHPSOR\PHQW RSWLRQV &RPSDULQJ WKH IOHGJOLQJ ZRUNHU PRYHPHQW WRZDUG EHWWHU TXDOLW\ RI OLIH ZLWK WKH 1HJUR DQG ZRPDQnV HTXDOLW\ PRYHPHQWV RI WKH SDVW WZR GHFDGHV 2n7RROH K\SRWKHVL]HG WKUHH HYHQWV ZKLFK ZRXOG EH QHFHVVDU\ EHIRUH D ZLGHn VSUHDG GHPDQG IRU FKDQJH FRXOG RFFXU )LUVW FRQGLWLRQV PXVW KDYH EHHQ LPSURYLQJ 6HFRQG WKH LVVXH PXVW KDYH EHHQ FU\VWDOOL]HG DQG ILQDOO\ SRVVLEOH DOWHUQDWLYHV PXVW KDYH EHHQ NQRZQ 7KH DXWKRU FRQWHQGHG WKDW HDFK RI WKHVH HYHQWV ZHUH RFFXUULQJ EXW DW DQ HDUO\

PAGE 25

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nV QHZHVW JURXS RI ZRUNHUV DGROHVFHQWV JDYH OLWWOH SURPLVH IRU LPSURYHPHQW LQ WKH QHDU IXWXUH +RZHYHU WKH SUREOHP LV EHLQJ LQFUHDVLQJO\ UHFRJQL]HG IRU ZKDW LW LV ZKLFK LV DQ LPSRUWDQW VWHS LQ LWV HYHQWXDO UHPHGLDWLRQ (IIRUWV VXFK DV 2n7RROHnV LI KHHGHG PD\ EH D FUXFLDO VHFRQG VWHS LQ WKH UHVROXWLRQ RI WKLV QDWLRQDO GLOHPPD (PSOR\PHQW RI 0HQWDOO\ +DQGLFDSSHG $GXOWV 7KLV VXEVHFWLRQ RI WKH 5HYLHZ RI 5HOHYDQW /LWHUDWXUH GHDOV ZLWK PHQWDOO\ KDQGLFDSSHG DGXOWV DV ZRUNHUV $V LV HYLGHQW IURP WKH IROORZLQJ WKH KDQGLFDSSHG ZRUNHUnV VWDWXV KDV EHHQ VXEMHFW WR WKH IRLEOHV RI LQIOXHQWLDO HPSOR\HUV DQG HGXFDWRUV GXULQJ KLV OLIHWLPH

PAGE 26

/LWWOH LV NQRZQ DERXW WKH YRFDWLRQDO VXFFHVV RI PHQWDOO\ KDQGLn FDSSHG SHUVRQV LQ WKH 8QLWHG 6WDWHV SULRU WR WKH WZHQWLHWK FHQWXU\ %HWZHHQ DQG WKH PLGnV DGROHVFHQWV ZHUH DSSUHQWLFHG WR VNLOOHG FUDIWVPHQ IRU MRE WUDLQLQJ +RZHYHU IHZ VXFK SRVLWLRQV ZHUH DYDLODEOH WR KDQGLFDSSHG LQGLYLGXDOV DV WKH FRPSHWLWLRQ IRU DSSUHQWLFHVKLS ZDV YLJRURXV DQG UHWDUGHG SHUVRQV FRXOG H[SHFW WR SHUIRUP XQVNLOOHG ODERU DW EHVW ,Q 6DPXDO *ULGOH\ +RZH HVWDEOLVKHG WKH ILUVW WUDLQLQJ SURJUDP IRU WKRVH ZLWK PHQWDO UHWDUGDn WLRQ 7KLV DSSURDFK ZKLFK EHJDQ D WUHQG HPSKDVL]HG WKH DFTXLVLWLRQ RI D VSHFLILF RFFXSDWLRQDO VNLOO DV WKH VROH SUHUHTXLVLWH IRU VXFFHVVn IXO HPSOR\PHQW RI D PHQWDOO\ KDQGLFDSSHG ZRUNHU %\ MRE IDLOXUHV DPRQJ UHWDUGHG SHUVRQV FDXVHG HGXFDWRUV WR UHWKLQN WKHLU VWUDWHJ\ RI UHO\LQJ RQ D VSHFLILF MRE VNLOO ,Q IDFW EHWZHHQ DQG :RUOG :DU OLWWOH LQ WKH ZD\ RI YRFDWLRQDO WUDLQLQJ ZDV DWWHPSWHG 7KLV ZDV D SHULRG RI SDWHUQDOLVWLF WUHDWPHQW LQ ZKLFK KDQGLFDSSHG SHUVRQV ZRUNHG LQ LQVWLWXWLRQV EXW ZHUH QRW WUDLQHG LQ DFTXLULQJ VNLOOV +HZHWW t )RUQHVV f ,Q %HUQVWHLQ RUJDQL]HG D FRORQ\ LQ XSVWDWH 1HZ
PAGE 27

GLVWXUEHG LQGLYLGXDOV ,Q WKH PHDQWLPH :RUOG :DU KDG WDNHQ SODFH SXWWLQJ PDQ\ QRQKDQGLFDSSHG SHUVRQV LQWR XQLIRUP DQG PDQ\ PHQWDOO\ UHWDUGHG DW OHDVW WHPSRUDULO\ LQWR WKHLU YDFDWHG SRVLWLRQV +HZHWW t )RUQHVV f 6RPH GHLQVWLWXWLRQDOL]HG UHWDUGDWHV ZKR IRXQG HPSOR\PHQW DW WKLV WLPH ZHUH GHVFULEHG E\ )HUQDOG f -XVW DV LWV SUHGHFHVVRU :RUOG :DU ,, FDXVHG WKH RSHQLQJ RI PDQ\ HPSOR\PHQW RSSRUWXQLWLHV IRU UHWDUGHG ZRUNHUV ,Q WKH %DUGHQ/D)ROOHWWH $FW ZDV SDVVHG ZKLFK DGGHG 2IILFH RI 9RFDWLRQDO 5HKDELOLWDWLRQ VHUYLFHV WR PHQWDOO\ UHWDUGHG SHUVRQV 7ZHOYH \HDUV ODWHU DQ LPSRUWDQW VWHS IRUZDUG ZDV WDNHQ LQ HPSOR\PHQW RSSRUWXQLWLHV IRU PHQWDOO\ KDQGLFDSSHG SHUVRQV ZKHQ WKH 0HZ
PAGE 28

ORZHU ZDJHV DQG ODERUHG DW ORZHU VWDWXV MREV WKDQ PHPEHUV RI WKH FRPSDULVRQ JURXS 3HWHUVRQ t 6PLWK f 'LQJHU f HPSKDVL]HG WKH SRVLWLYH YRFDWLRQDO DGMXVWPHQWV RI UHWDUGHG DGXOWV +H FRQGXFWHG D VWXG\ LQ ZKLFK KH GHWHUPLQHG WKDW RYHU SHUFHQW RI WKRVH ZKR KDG JUDGXDWHG IURP RU RWKHUZLVH OHIW WKH SXEOLF VFKRRO V\VWHP LQ $OWRRQD 3HQQV\OYDQLD ZHUH HLWKHU HPSOR\HG FRQWLQXLQJ WKHLU HGXFDWLRQ RU ZRUNLQJ DV IXOOWLPH KRXVHZLYHV )RUW\WZR SHUFHQW RI WKRVH TXHULHG ZKR VWLOO OLYHG LQ $OWRRQD ZHUH UHFHLYLQJ KLJKHU ZDJHV WKDQ D EHJLQQLQJ 3HQQV\OYDQLD VFKRRO WHDFKHU LQ f &RXQWHULQJ 'LQJHUnV HPSOR\PHQW ILQGLQJV .HHOHU f UHSRUWHG WKDW LQ 6DQ )UDQFLVFR DUHD RQO\ SHUFHQW RI WKH PHQWDOO\ KDQGLn FDSSHG SRSXODWLRQ ZDV HPSOR\HG HLWKHU IXOO RU SDUWWLPH +RZHYHU %DLOHU &KDUOHV DQG 0LOOHU f IRXQG WKDW LQ /LQFROQ 1HEUDVND DOPRVW SHUFHQW RI WKH IRUPHU VWXGHQWV ZLWK ,4 VFRUHV RI OHVV WKDQ ZHUH IDLUO\ UHJXODUO\ HPSOR\HG .LGG f FRQFXUUHG E\ GHWHUPLQLQJ WKDW SHUFHQW RI WKH IRUPHU VWXGHQWV RI HGXFDEOH PHQWDOO\ UHWDUGHG (05f FODVVHV LQ DQ XUEDQ DUHD ZHUH HPSOR\HG IXOOn WLPH 6HYHUDO RWKHU VWXGLHV KDYH EHHQ FRPSOHWHG JLYLQJ WKH HPSOR\PHQW VLWXDWLRQ RI PHQWDOO\ KDQGLFDSSHG DGXOWV KLJK PDUNV .HOOH\ t 6LPRQ 3RVQHU f RU ORZ RQHV %UROLQ t :ULJKW 7RELDV f 'XH WR WKH PXOWLWXGH RI FRQIOLFWLQJ UHSRUWV FRXSOHG ZLWK WKH ODFN RI GHILQLWLYH FULWHULD IRU YRFDWLRQDO VXFFHVV QR ILUP VWDWHPHQW FDQ EH PDGH DW WKLV WLPH FRQFHUQLQJ WKH VWDWH RI WKH DUW RI WKH HPSOR\PHQW VLWXDWLRQ IRU PHQWDOO\ KDQGLFDSSHG DGXOWV

PAGE 29

0RUH OLJKW FDQ EH VKHG RQ WKH GHWHUPLQHUV RI VXFFHVVIXO HPSOR\PHQW IRU D UHWDUGHG LQGLYLGXDO $V ZDV PHQWLRQHG HDUOLHU LQ WKH ODVW FHQWXU\ D VSHFLILF MRE VNLOO ZDV WKRXJKW WR EH WKH RQO\ HVVHQWLDO LQJUHGLHQW IRU D KDQGLFDSSHG ZRUNHU WR VXFFHHG %\ WKH WXUQ RI WKH FHQWXU\ WKLV LGHD ZDV UHFRJQL]HG DV EHLQJ LQFRUUHFW EXW UDWKHU WKDQ DWWHPSW D GLIIHUHQW WDFN YRFDWLRQDO KDELOLWDWLRQ ZDV ODUJHO\ LJQRUHG ,Q WKH ODWH nV UHVHDUFKHUV EHJDQ WR ORRN IRU VLJQLILFDQW YDULDEOHV LQ YRFDWLRQDO VXFFHVV IRU UHWDUGHG LQGLYLGXDOV $ VWXG\ E\ &KDIILQ f SRLQWHG WR WKH UDWH RI SURGXFWLRQ DV EHLQJ DQ LPSRUWDQW FRPSRQHQW RI VXFFHVV $OVR VKRZQ WR EH FULWLFDO VXFFHVV IDFWRUV ZHUH PDQXDO GH[WHULW\ 6DOL t $PLU f DQG ODQJXDJH DQG FRPPXQLFDWLRQ VNLOOV )LHVWHU t *LDPEUD f 2I H[WUHPH LPSRUWDQFH ZDV WKH ILQGLQJ RI LQGHSHQn GHQW UHVHDUFKHUV WKDW QHLWKHU VSHFLILF MRE VNLOO QRU LQWHOOLJHQFH ZLWKLQ WKH UDQJH RI HGXFDEOH PHQWDO UHWDUGDWLRQ ZHUH FULWLFDO YDULDEOHV IRU HPSOR\PHQW VXFFHVV ,QVWHDG SHUVRQDO DGMXVWPHQW VNLOOV DQG ZRUN KDELWV ZHUH IRXQG WR EH RI SULPH VLJQLILFDQFH IRU MRE DFTXLVLWLRQ DQG PDLQWHQDQFH 'RPLQJR t 0F*DUW\ 1HXKDXV 6DOL t $PLU f 6HYHUDO UHFHQW VWXGLHV DGGUHVVHG MRE VDWLVIDFWLRQ DV LW UHODWHG WR SHUIRUPDQFH VHYHUHO\ KDQGLFDSSHG ZRUNHUV DQG WKH FXUUHQW SOLJKW RI WKH UHWDUGHG ZRUNHU 7DONLQJWRQ DQG 2YHUEHFN f H[SORUHG WKH UHODWLRQVKLS EHWZHHQ H[SUHVVHG VDWLVIDFWLRQ RU GLVVDWLVIDFWLRQ ZLWK ZRUN DVVLJQPHQWV DQG WKH DFWXDO SHUIRUPDQFH RI WKHVH DVVLJQPHQWV 7KH UHVXOWV PLUURUHG WKRVH RI VLPLODU VWXGLHV SHUIRUPHG ZLWK QRQKDQGLFDSSHG SRSXODWLRQV -RE VDWLVIDFWLRQ ZDV

PAGE 30

IRXQG WR EH KLJKO\ UHODWHG WR DWWHQGDQFH UHOLDELOLW\ DQG JHQHUDO HIILFLHQF\ 7ZR VWXGLHV UHODWHG WR WKH VHYHUHO\ PHQWDOO\ KDQGLFDSSHG ZRUNHU -DFREV f FRQWHVWHG :ROIHQVEHUJHUV f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
PAGE 31

FDXVHV IRU RSWLPLVP $V UHFHQWO\ DV WKH DXWKRUV VWDWHG RQO\ WZR SHUFHQW RI WKH PLOOLRQ VWXGHQWV VHUYHG LQ YRFDWLRQDO HGXFDWLRQ ZHUH KDQGLFDSSHG &LWLQJ +LJKWRZHU f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n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n FDSSHG 7KH VDPH VWXG\ JDYH WKH XQHPSOR\PHQW UDWH RI HGXFDEOH

PAGE 32

PHQWDOO\ UHWDUGHG LQGLYLGXDOV DV VHYHUDO WLPHV WKDW RI WKH UHJXODU ZRUN IRUFH $GXOW $GMXVWPHQW $FFRUGLQJ WR (LVGRUIHU DQG /DZWRQ f D FRQVLVWHQW GHYHORSPHQWDO SHUVSHFWLYH RI WKH KXPDQ SHUVRQDOLW\ IURP LQIDQF\ WKURXJK ROG DJH KDV \HW WR EH SXEOLVKHG +DYLQJ GLVFRYHUHG OLWWOH WR GLVSXWH WKLV DVVHUWLRQ WKH SUHVHQW UHVHDUFKHU SUHVHQWHG GLIIHUHQW IUDJPHQWHG SHUVSHFWLYHV DV WKH\ DSSHDUHG LQ PRGHUQ SV\FKRn ORJLFDO OLWHUDWXUH 7KH FRQFHSW RI DGMXVWPHQW ZDV ERUURZHG E\ SV\FKRORJ\ IURP LWV ELRORJLFDO RULJLQV LQ &KDUOHV 'DUZLQnV SKLORVRSK\ RI VXUYLYDO RI WKH ILWWHVW f -XVW DV PDQ LV LQIOXHQFHG E\ SK\VLFDO GHPDQGV KH DOVR PXVW PDNH FHUWDLQ DGMXVWPHQWV WR VRFLDO SUHVVXUHV 7KHVH DUH GHPDQGV ZKLFK DULVH IURP OLYLQJ LQWHUGHSHQGHQWO\ ZLWK RWKHUV 7KH SUHVVXUHV EHJLQ ZKHQ WKH LQIDQW LV H[SHFWHG WR DFFHGH WR WKH SDUHQWVn H[SHFWDWLRQ WKDW KH ZLOO DFTXLUH SURSHU YDOXHV DQG EHKDYLRU SDWWHUQV 7KH\ FRQWLQXH WKURXJK PXFK LI QRW DOO RI DGXOWKRRG ZKHQ WKH SDUHQWV FRQWLQXH WKHLU H[SHFWDWLRQV QRZ UHJDUGLQJ PDUULDJH FDUHHU UHVLGHQFH DQG OLIH VW\OH /D]DUXV f 7KH GHPDQGV WR ZKLFK WKH LQGLYLGXDO PXVW UHVSRQG DUH RI WZR NLQGV 7KH\ DUH H[WHUQDO DQG LQWHUQDO GHPDQGV ([WHUQDO GHPDQGV DULVH IURP VRFLDO DV ZHOO DV SK\VLFDO FRQGLWLRQV RI H[LVWHQFH %HJLQQLQJ ZLWK VLPSOH WDVNV VXFK DV VHOIIHHGLQJ LQ HDUO\ FKLOGKRRG WKH GHPDQGV VXEWO\ SURJUHVV DV WKH FKLOG PDWXUHV SV\FKRORJLFDOO\ *UDGXDOO\ FRQFHSWV DQG YDOXHV EHFRPH FRPSRQHQWV RI KLV UHSHUWRLUH ,I WKH FKLOG IDLOV

PAGE 33

WR FRPSO\ ZLWK WKH SDUHQWVn H[SHFWDWLRQV KH LV JUHHWHG ZLWK GLVn DSSURYDO DQG RWKHU QHJDWLYH FRQVHTXHQFHV ,I WKH FKLOGnV EHKDYLRU PHDVXUHV XS WR KLV SDUHQWVn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nV GHVLUH IRU ORYH DQG DSSURYDO PXVW EH ZHLJKHG DJDLQVW WKH GHVLUH IRU VRFLDO SUHVWLJH 7KH FRPSHWLWLRQ IRU WKH SUHVWLJH FRXOG HDVLO\ UHVXOW LQ GLPLQLVKHG ORYH DQG DSSURYDO ([WHUQDO GHPDQGV FRXOG EH RSSRVHG ZKHQ HDFK SDUHQW DWWHPSWV WR LQIOXHQFH WKH RIIVSULQJnV SHUVRQDOLW\ LQ GLIIHUHQW GLUHFWLRQV 7KH WKLUG FRQIOLFW LQWHUQDO YHUVXV H[WHUQDO QHHGV FDQ EH LOOXVWUDWHG LQ WKH SDUHQWV VHQGLQJ WKHLU VRQ WR D ERDUGLQJ VFKRRO IRU DFDGHPLF GHYHORSPHQW ZKHQ WKH FKLOG LV LQ H[WUHPH QHHG RI SDUHQWDO FRPSDQLRQVKLS /D]DUXV f $GMXVWPHQW FDQ EH FODVVLILHG LQWR RQH RI WZR W\SHV DFKLHYHPHQW RU SURFHVV $V DFKLHYHPHQW HYDOXDWLRQ LV LPSOLHG ,Q WKLV VLWXDWLRQ IRXU FODVVHV RI FULWHULD PD\ EH XVHG 7KHVH DUH SV\FKRn ORJLFDO FRPIRUW ZRUN HIILFLHQF\ SK\VLFDO V\PSWRPV DQG VRFLDO DFFHSWDQFH /D]DUXV f DGPLWWHG WR FHUWDLQ OLPLWDWLRQV LQ

PAGE 34

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f LQFRUSRUDWHG WKH WZR W\SHV RI DGMXVWPHQW SURFHVVHV LQWR KLV WKHRU\ RI FRJQLWLYH GHYHORSPHQW )RU 3LDJHW LQWHOOLJHQFH LV GHILQHG DV DQ DGDSWLYH SURFHVV LQ ZKLFK WKHUH LV D EDODQFH EHWZHHQ DVVLPLODWLRQ DQG DFFRPPRGDWLRQ $VVLPLODWLRQ LV WKH SURFHVV E\ ZKLFK WKH LQGLYLGXDO ILWV WKH HQYLURQPHQW WR ELRORJLF RU PHQWDO V\VWHPV DOUHDG\ LQ H[LVWHQFH $FFRPPRGDWLRQ LV WKH SURFHVV E\ ZKLFK WKH LQGLYLGXDO PRGLILHV KLPVHOI LQ RUGHU WR ILW WKH HQYLURQPHQW 5LHVPDQ f GUHZ D GLFKRWRP\ EHWZHHQ WKH LQQHUGLUHFWHG DQG WKH RWKHUGLUHFWHG LQGLYLGXDO 7KH IRUPHU FDUULHV KLV YDOXHV DQG VWDQGDUGV RI FRQGXFW ZLWK KLP DQG GRHV QRW FKDQJH WKHP WR DFFRPPRGDWH WKH VRFLDO FOLPDWH RI WKH WLPHV 7KH RWKHUGLUHFWHG SHUVRQ LV HDVLO\ LQIOXHQFHG E\ RXWVLGH SUHVVXUHV WR FKDQJH KLV YDOXH V\VWHP -XVW DV 3LDJHWnV ODVW GHYHORSPHQWDO VWDJH IRUPDO RSHUDWLRQV EHJLQV DW DSSUR[LPDWHO\ \HDUV RI DJH PRVW GHYHORSPHQWDO WKHRULHV FRQFHQWUDWH RQ WKH FKLOGKRRG \HDUV 7KH DERYH SHUVSHFWLYHV DUH QR H[FHSWLRQ 7KH\ ZHUH VXPPDUL]HG LQ WKLV UHYLHZ LQ RUGHU WR VHW WKH

PAGE 35

VWDJH IRU DGXOW DGMXVWPHQW
PAGE 36

WKRXJKW LQ WKLV DUHD LV WKDW ZKLFK VSOLQWHUHG IURP )UHXGnV VFKRRO RI GHSWK SV\FKRORJ\ 7KLV WKHRU\ RI SHUVRQDOLW\ LQFOXGHG ERWK FRQVFLRXV DQG XQFRQVFLRXV DVSHFWV DQG VKRZHG KRZ FKLOGKRRG SHUVRQDOLW\ GHYHORSPHQW KDG D JUHDW LQIOXHQFH RQ RQHnV DGXOW OLIH 7KH IDWKHU RI WKH PRGHUQ VWXG\ RI DGXOW GHYHORSPHQW LV FRQVLGHUHG WR EH &DUO -XQJ ZKR ZDV DQ HDUO\ GLVFLSOH RI )UHXG DQG EURNH DZD\ LQ /HYLQVRQ f -XQJ GLIIHUHG IURP )UHXG LQ WZR LPSRUWDQW VSKHUHV )LUVW KH EHOLHYHG )UHXG IRFXVHG WRR QDUURZO\ RQ FKLOGKRRG GHYHORSPHQW DQG LWV LQIOXHQFH RQ DGXOW SUREOHPV FRQIOLFWV DQG FUHDWLYLWLHV 6HFRQG -XQJ IHOW WKDW )UHXGn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nV HOHPHQWV RI P\VWLFLVP (ULNVRQ VDZ WKH OLIH F\FOH DV D

PAGE 37

VHULHV RI HLJKW HJR VWDJHV 7KH ILUVW IRXU FRYHU HDUO\ DQG PLGGOH FKLOGKRRG (ULNVRQ f 7KH ILIWK VWDJH ZKLFK LV FDOOHG ,GHQWLW\ YV ,GHQWLW\ &RQIXVLRQ WDNHV SODFH GXULQJ DGROHVFHQFH DQG H[WHQGV LQWR WKH (DUO\ $GXOW 7UDQVLWLRQ 7KH VL[WK VWDJH HQWLWOHG ,QWLPDF\ YV ,VRODWLRQ RFFXUV LQ RQHnV WZHQWLHV 7KH ODVW WZR VWDJHV *HQHUDWLYLW\ YV 6WDJQDWLRQ DQG ,QWHJULW\ YV 'HVSDLU WDNH SODFH DW DURXQG DQG UHVSHFWLYHO\ (ULNVRQ f 6XPPDUL]LQJ FXUUHQW WKHRULHV RI DGXOW SHUVRQDOLW\ .QR[ f GHILQHG VHYHUDO FHQWUDO WKHPHV 7KH SULQFLSDO WKHPH LQ KLV RSLQLRQ LV WKH VKLIWLQJ PDQQHU LQ ZKLFK WKH SHUVRQ VWULYHV WR PDLQWDLQ DQG HQKDQFH KLV RU KHU VHQVH RI VHOI IURP ODWH DGROHVFHQFH DQG \RXQJ DGXOWKRRG WKURXJK PLGGOH DQG ROG DJH S f 'HFLVLRQn PDNLQJ UHTXLULQJ DVVHUWLYHQHVV JRDO VHWWLQJ DQG VHOIGLUHFWHGQHVV LV DQRWKHU WKHPH LQ DGXOW SHUVRQDOLW\ 'HFLVLRQV UHVXOW LQ FRQIOLFWV DQG FRQIOLFWV HJ EHWZHHQ SHUVRQDO DQG VRFLDO JDLQVf LQYROYH IHHOLQJV DQG DWWLWXGHV 7KH SUREDELOLW\ RI FRQIOLFW ZLWK DJH SHHUV LQFUHDVHV ZLWK DJH DV WKH UDQJH RI LQGLYLGXDO GLIIHUHQFHV LQ PRVW SHUVRQDOLW\ FKDUDFWHULVWLFV ZLGHQV EHWZHHQ HDUO\ \RXQJ DGXOWn KRRG DQG WKH EHJLQQLQJ RI ROG DJH 3HUFHLYHG ZHOOEHLQJ LQFUHDVHV IURP ODWH DGROHVFHQFH WR HDUO\ DGXOWKRRG GHFUHDVHV LQ HDUO\ PLGGOH DJH JRHV XS DJDLQ LQ ODWH PLGGOH DJH EHIRUH UHWLUHPHQW DQG GHFOLQHV DJDLQ WKURXJK ROG DJH .QR[ f 7KH IDVW SDFH RI $PHULFDQ VRFLHW\ ZLWK LWV FRQVWDQW VWDWH RI IOX[ KDV WDNHQ D GHILQLWH WROO RQ WKH SHUVRQDOLW\ RI LWV FLWL]HQV DFFRUGLQJ WR 3XWQH\ DQG 3XWQH\ f 'LVWLQJXLVKLQJ EHWZHHQ WKH

PAGE 38

QRUPDO DV GHILQHG LQ WKH FXOWXUDO UHODWLYLW\ RI D VRFLHW\f DQG WKH QDWXUDO ZKLFK VDWLVILHV KXPDQ QHHGVf WKH DXWKRUV LQVLVW WKDW QRUPDO QHXURVHV DUH WKH UXOH UDWKHU WKDQ WKH H[FHSWLRQ LQ VRFLHW\ 1HXURVLV LV GHILQHG DV DQ LQWHUQDO QRQRUJDQLF EDUULHU WR QHHG IXOILOOPHQW 2QO\ WKH UHODWLYHO\ UDUH WUXO\ DXWRQRPRXV SHUVRQ KDV ERWK WKH DELOLW\ DQG WKH GLVSRVLWLRQ WR FRQIRUP ZKHQ FRQIRUPDQFH LV IXQFWLRQDO DQG WR LQQRYDWH ZKHQ QRUPDO EHKDYLRUV ZRXOG OHDYH RQHnV QHHGV XQVDWLVILHG 5HFRJQL]LQJ WKH SV\FKRORJLFDO DGMXVWPHQW SUREOHPV LQ PRGHUQ VRFLHW\ 7LIIDQ\ HW DO f QRWHG WKDW D QHZ FDWHJRU\ RI PHQWDO GLVRUGHU ZDV LQVHUWHG LQ WKH $PHULFDQ 3V\FKRORJLFDO $VVRFLDWLRQn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

PAGE 39

HQXPHUDWHG 7KH SRVLWLRQ RI QRUPDO QHXURVHV LQ PRGHUQ VRFLHW\ ZDV DGGUHVVHG DQG ILQDOO\ WKH SRVVLEOH LQIOXHQFH RI ZRUN RQ WRGD\nV DGXOW DGMXVWPHQW ZDV PHQWLRQHG $GXOW $GMXVWPHQW RI 0HQWDOO\ +DQGLFDSSHG ,QGLYLGXDOV )URP WKH HVWDEOLVKPHQW RI WKH ILUVW H[SHULPHQWDO VFKRRO IRU LGLRWLF FKLOGUHQ LQ 0DVVDFKXVHWWV LQ WKH n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n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

PAGE 40

KDQGLFDSSHG :KHQ WKHVH LQGLYLGXDOV GLG QRW SURJUHVV DW D VDWLVn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f )HUQDOG f HVWLPDWHG WKDW RQO\ SHUFHQW RI WKH LQPDWHV DW :DYHUO\ ,QVWLWXWH LQ &RQQHFWLFXW KDG WKH SRWHQWLDO IRU HFRQRPLF DQG VRFLDO LQGHSHQGHQFH 0RVW RI WKH UHVW FRXOG EH WUDLQHG WR ZRUN RQ WKH JURXQGV DW :DYHUO\ LQ H[FKDQJH IRU WKHLU NHHS /DWHU LQ D IROORZXS VWXG\ RI IRUPHU :DYHUO\ LQPDWHV ZKR KDG EHHQ GLVn FKDUJHG GXULQJ WKH SHULRG EHWZHHQ DQG )HUQDOG f ZDV IRUFHG WR DGPLW WKDW KLV HDUO\ HVWLPDWHV RI DGMXVWPHQW VXFFHVV ZHUH LQFRUUHFW 0RVW RI WKH GLVFKDUJHHV KDG EHHQ JLYHQ OLWWOH SUHSDUDWLRQ IRU LQGHSHQGHQW OLYLQJ \HW GHLQVWLWXWLRQDOL]DWLRQ ZDV FRQVLGHUHG VXFFHVVIXO IRU WKH PDMRULW\ RI WKRVH ZKR FRXOG EH ORFDWHG ,Q D PDQ QDPHG %HUQVWHLQ EHJDQ RUJDQL]LQJ FRORQLHV RXW RI 5RPH 6WDWH 6FKRRO LQ XSVWDWH 1HZ
PAGE 41

9RFDWLRQDO $GMXVWPHQW %XUHDX ZDV HVWDEOLVKHG 7KH IXQFWLRQ RI WKLV SULYDWH DJHQF\ ZDV WR ILQG MREV IRU WKRVH ZLWK GLDJQRVHG HPRWLRQDO GLVWXUEDQFH RU PHQWDO UHWDUGDWLRQ ,Q WKH nV SODFHPHQW RI PHQWDOO\ UHWDUGHG LQGLYLGXDOV ZLWK IDPLOLHV LQ WKH FRPPXQLW\ IRU FDUH DQG VXSHUYLVLRQ ZDV LQWURGXFHG +HZHWW t )RUQHVV f $ ODUJH QXPEHU RI VWXGLHV RQ WKH DGMXVWPHQW RI PHQWDOO\ UHWDUGHG DGXOWV ZHUH UHSRUWHG EHWZHHQ :RUOG :DU DQG WKH nV 0DWWKHZV f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f VWXGLHG WKH DGMXVWPHQW RI SDUROHHV IURP /DFRQLD 6WDWH 6FKRRO EHWZHHQ DQG $Q SHUFHQW VXFFHVV UDWH ZDV GHWHUPLQHG &RDNOH\ f UHSRUWHG WKDW WKH VHYHUH VKRUWDJH RI GRPHVWLF PDQSRZHU GXULQJ :RUOG :DU ,, FUHDWHG MRE RSHQLQJV IRU UHWDUGHG ZRUNHUV :KHQ WKH VXEMHFWV RI &RDNOH\V UHVHDUFK DWWDLQHG HPSOR\PHQW LQ VSLWH RI SUHYLRXV PHGLRFUH MRE UHFRUGV WKHVH SHRSOH ZHUH DEOH WR PDLQWDLQ WKHLU MREV WKURXJKRXW WKH GXUDWLRQ RI WKH ZDU 6DHQJHU f VWXGLHG WKH DGMXVWPHQW RI VHYHUHO\ DQG PRGHUDWHO\ PHQWDOO\ UHWDUGHG DGXOWV LQ 1HZ
PAGE 42

$GXOW DGMXVWPHQW VWXGLHV ZHUH DEXQGDQW LQ WKH nV 3HWHUVRQ DQG 6PLWK f FRPSDUHG UHWDUGHG DGXOWV ZLWK WKRVH RI QRUPDO LQWHOOLJHQFH LQ WHUPV RI HGXFDWLRQDO ZRUN KRPH DQG IDPLO\ DQG FLYLF FKDUDFWHULVWLFV 7KH\ QRWHG VLJQLILFDQW GLVFUHSDQFLHV IDYRULQJ WKH QRQKDQGLFDSSHG SRSXODWLRQ LQ HYHU\ DUHD $ UHFRPPHQGDn WLRQ ZDV PDGH WR SUHSDUH IRU DGXOW DGMXVWPHQW RI UHWDUGHG SHUVRQV WKURXJK D ZHOORUJDQL]HG SUHSDUDWLRQ SURJUDP LQ WKH VHQLRU KLJK VFKRRO ,Q D 3HQQV\OYDQLD VWXG\ 'LQJHU f IRXQG PHQWDOO\ UHWDUGHG DGXOWV WR EH FRQVLGHUDEO\ EHWWHU DGMXVWHG WKDQ UHSRUWHG E\ 3HWHUVRQ DQG 6PLWK )XUWKHUPRUH KH ODPHQWHG WKH SUHGRPLQDQFH RI UHVHDUFK RQ WKH GHYLDQFLHV RI UHWDUGHG LQGLYLGXDOV DQG VXJJHVWHG PRUH HPSKDVLV RQ WKHLU UHVSHFWLYH VWUHQJWKV $OWKRXJK DQHFGRWDO LQ QDWXUH %XWWHUILHOGnV f GHVFULSWLRQ RI DQ DGXOW ZLWK 'RZQnV V\QGURPH DQG D 6WDQIRUG%LQHW ,4 UDQJH RI WR DSSHDUHG WR EH D VWHS LQ WKH GLUHFWLRQ VXJJHVWHG E\ 'LQJHU $V D \HDUROG DGXOW WKLV LQGLYLGXDO GRHV DOO RI WKH KRXVHZRUN +H GRHV WKH ZDVKLQJ DQG LURQLQJ YDFXXPV PDNHV EHGV ZDVKHV WKH IORRUV DQG ZLQGRZV WDNHV RXW WKH UXEELVK UXQV DOO RI WKH HUUDQGV DQG SD\V DOO WKH ELOOV S f 7KLV ZDV D VLWXDWLRQ LQ ZKLFK LQVWLWXWLRQDOL]DWLRQ ZDV UHFRPPHQGHG DQG SXEOLF VFKRRO HGXFDWLRQDO VHUYLFHV ZHUH GHQLHG DIWHU DJH f $W WKH VDPH WLPH :LQGOH 6WHZDUW DQG %URZQ f SRLQWHG WRZDUG SRRU ZRUN SHUIRUPDQFH DQG LQDGHTXDWH LQWHUSHUVRQDO UHODWLRQV DV WKH FKLHI FDXVHV RI IDLOXUH RI LQVWLWXWLRQDOL]HG SHUVRQV LQ YRFDWLRQDO OHDYH VLWXDWLRQV 7KUHH LPSRUWDQW ORQJLWXGLQDO VWXGLHV RQ WKH DGDSWDELOLW\ RI UHWDUGHG LQGLYLGXDOV ZHUH SXEOLVKHG LQ WKH PLGnV (GJHUWRQ

PAGE 43

f GHVFULEHG WKH GD\WRGD\ OLYHV RI SHUVRQV ZKR KDYH EHHQ GLVFKDUJHG IURP D VWDWH KRVSLWDO IRU WKH PHQWDOO\ KDQGLFDSSHG LQ &DOLIRUQLD $ FHQWUDO IDFWRU LQ WKHLU OLYHV ZDV WKH VWLJPD DWWDFKHG WR UHWDUGDWLRQ 7KH\ DWWHPSWHG RQ HYHU\ RFFDVLRQ WR FRYHU XS WKH IDFW WKDW WKH\ ERUH WKLV XQGHVLUDEOH ODEHO 8QGHU WKH SUHWHQVH WKDW RQHnV ZDWFK RU JODVVHV ZHUH EURNHQ WKH WLPHRI GD\ RU VLJQ WKDW LGHQWLILHG D EXV ZHUH DVNHG 2QO\ WKURXJK WKH DVVLVWDQFH RI XQRIILFLDO DGYRFDWHV ZDV HYHQ PDUJLQDO DGMXVWPHQW FRQVLGHUHG WR EH DFKLHYHG ,Q D IROORZXS RI %DLOHUnV f HDUOLHU UHVHDUFK %DLOHU &KDUOHV DQG 0LOOHU f VKRZHG D PHDQ JDLQ LQ ,4 RI SRLQWV IRU VXEMHFWV VWXGLHG RYHU D SHULRG RI \HDUV 7KLV ILQGLQJ IOHZ GLUHFWO\ LQ WKH IDFH RI FODLPV WKDW PHDVXUHG LQWHOOLJHQFH ZDV VWDWLF .HQQHG\ f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n VLVWHQF\ LQ WKH H[WHQW RI LQIRUPDWLRQ JDWKHUHG GHILQLWLRQV RI DGMXVWPHQW WLPH IDFWRUV LQYROYHG DQG VDPSOLQJ SURFHGXUHV XVHG

PAGE 44

:ROIHQVEHUJHU HW DO f ERUURZLQJ IURP WKH (XURSHDQ FRQFHSW RI QRUPDOL]DWLRQ 1LUMH f XVKHUHG LQ D QHZ FKDSWHU LQ WKH $PHULFDQ IDFLOLWDWLRQ RI DGMXVWPHQW SURFHGXUHV IRU KDQGLFDSSHG DGXOWV +H FDOOHG IRU VHUYLFHV DV FXOWXUDOO\ QRUPDWLYH DV SRVVLEOH LQ RUGHU WR HVWDEOLVK DQGRU PDLQWDLQ SHUVRQDO EHKDYLRUV DQG FKDUDFWHULVWLFV ZKLFK DUH DV FXOWXUDOO\ QRUPDWLYH DV SRVVLEOH S f ,Q WKH IRUPHU DUWLFOH WKH FXUULFXOXP IRU PLOGO\ UHWDUGHG VHFRQGDU\ VWXGHQWV ZDV MXGJHG WR EH WRR OLPLWLQJ ZKHQ LW ZDV GLVFRYHUHG WKDW JUDGXDWHV ZHUH LQGHSHQGHQWO\ ILQGLQJ DQG NHHSLQJ KLJKHU OHYHO MREV WKDQ WKRVH IRU ZKLFK WKH\ ZHUH WUDLQHG 5HO\LQJ RQ RSHUDQW FRQGLWLRQn LQJ *ROG VKRZHG WKDW YRFDWLRQDO H[SHFWDWLRQV E\ WUDLQHUV LQ VKHOWHUHG ZRUNVKRSV ZHUH LQVXIILFLHQWO\ FKDOOHQJLQJ IRU WKHLU FOLHQWV 6HYHUHO\ UHWDUGHG DGXOWV XQGHU *ROGnV f WXWHODJH ZHUH WUDLQHG WR DVVHPEOH D SLHFH ELF\FOH EUDNH $ \HDU ODWHU WKH FOLHQWV ZHUH UHFKHFNHG DQG WKHLU DFFXUDF\ ZDV IRXQG WR KDYH UHPDLQHG DW D KLJK OHYHO ([SUHVVLQJ D FXUUHQW YLHZ RQ WKH GHJUHH RI DGMXVWPHQW VXFFHVV RI WKH GHLQVWLWXWLRQDOL]HG &UDZIRUG $LHOOR DQG 7KRPSVRQ f JDYH HIIRUWV D PL[HG UHYLHZ DW EHVW 7KH\ ZHUH VXSSRUWHG LQ WKHLU DVVHUWLRQ E\ &RQUR\ f ZKR IRXQG WKDW PRUH SHRSOH ZHUH UHWXUQLQJ WR LQVWLWXWLRQV WKDQ ZHUH EHLQJ SODFHG LQWR WKH FRPPXQLW\ $GHTXDWH IROORZXS SURFHGXUHV ZHUH UHFRPPHQGHG DV WKH PRVW FULWLFDO FRPSRQHQW RI D SURSHU SODFHPHQW ,Q WKHLU UHYLHZ +HDO 6LJHOPDQ DQG 6ZLW]N\ f SODFHG KLJKHU SULRULW\ IRU VXFFHVVIXO SODFHPHQW RQ WKH FRPPXQLW\ VXSSRUW V\VWHP WKDQ RQ WKH FKDUDFWHU WUDLWV RI WKH LQGLYLGXDO EHLQJ SODFHG 5HGGLQJ f FRPSDUHG WKH OLIH DGMXVWPHQW

PAGE 45

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f QRWHG WKH VLPLODULWLHV EHWZHHQ DGMXVWPHQW SUREOHPV IDFHG E\ GHLQVWLWXWLRQDOL]HG UHWDUGHG DGXOWV DQG WKRVH HQFRXQWHUHG E\ QRUPDO LQGLYLGXDOV SODFHG LQ DQ DOLHQ FXOWXUH 6XPPDU\ 7KLV VHFWLRQ RI UHOHYDQW OLWHUDWXUH WUDFHG FKURQRORJLFDOO\ WKH UHVHDUFK RQ DGXOW DGMXVWPHQW RI PHQWDOO\ UHWDUGHG LQGLYLGXDOV LQ $PHULFD IURP WKH nV WKURXJK /LPLWHG GDWD ZHUH DYDLODEOH XQWLO PLGFHQWXU\ +RZHYHU VLQFH WKDW WLPH SHUWLQHQW PDWHULDO RQ WKH VXEMHFW KDV PXOWLSOLHG LQ YROXPH 6HOI3HUFHSWLRQV +HOG E\ 0HQWDOO\ +DQGLFDSSHG 3HUVRQV DQG 3HUFHSWLRQV RI 6XFK 3HUVRQV E\ 7KRVH ZLWKRXW +DQGLFDSV 7KH IROORZLQJ VHFWLRQ RI WKH UHYLHZ RI UHOHYDQW OLWHUDWXUH FRQVLVWV RI WZR SULQFLSDO VXEVHFWLRQV WKDW FRQFHUQLQJ WKH PDQQHU LQ ZKLFK WKH UHWDUGHG LQGLYLGXDO YLHZHG KLPVHOI DQG WKDW IRFXVLQJ

PAGE 46

RQ WKH SHUFHSWLRQ RWKHUV KHOG RI WKH UHWDUGHG SHUVRQ ,Q WKH ILUVW VXEVHFWLRQ WKH IROORZLQJ DUHDV UHJDUGLQJ WKH PHQWDOO\ KDQGLFDSSHG LQGLYLGXDOnV VHOIFRQFHSW DUH GLVFXVVHG FRQVHQVXV RQ WKH SRVLWLYHn QHVV RI WKH UHWDUGHG SHUVRQnV VHOISHUFHSWLRQ WKH HIIHFW RI LQVWLWXWLRQDOL]DWLRQ RQ RQHnV VHOIFRQFHSW RWKHU OLIHWLPH WUDXPDV ZKLFK PD\ KDYH GHHS UHSHUFXVVLRQV RQ WKH KDQGLFDSSHG SHUVRQnV VHOI FRQFHSW FRSLQJ LQ SXEOLF ZLWK RQHnV SHUFHLYHG GHILFLWV YDULDWLRQV LQ VHOIFRQFHSWV DQG WKHLU LPSOLFDWLRQV WKH GHYDVWDWLQJ FRPELQDWLRQ RI UHWDUGDWLRQ DQG PLQRULW\ VWDWXV RQ VHOIFRQFHSW LQ $PHULFDQ VRFLHW\ WKH HIIHFWV RI DWWHQGDQFH RI UHJXODU YHUVXV VSHFLDO FODVVHV RQ VHOISHUFHSWLRQ DQG WKH FKDQJLQJ UROH RI VWLJPD LQ DGXOW DGMXVWn PHQW 8QIRUWXQDWHO\ DV RI WKLV ZULWLQJ QR FOHDU FRQVHQVXV KDV EHHQ DWWDLQHG UHJDUGLQJ WKH IHHOLQJV D PHQWDOO\ KDQGLFDSSHG SHUVRQ KDUERUV WRYDUG KLPVHOI +RZHYHU PRVW RI WKH VWXGLHV ZKLFK KDYH DWWHPSWHG WR GLVFRYHU WKLV KDYH FRQFOXGHG WKDW D PRUH QHJDWLYH WKDQ DYHUDJH VHOIFRQFHSW H[LVWV &ROOLQV %XUJHU t .RKHUW\ +DUULVRQ t %XGRII 3LHUV t +DUULV f (GJHUWRQ DQG 6DEDJK f GLVFXVVHG WKH SRVVLEOH PHWDPRUSKRVLV RI D UHWDUGHG SHUVRQnV VHOIFRQFHSW XSRQ LQVWLWXWLRQDOL]DWLRQ $FFRUGLQJ WR WKHLU WKHRU\ LQGLYLGXDOV HQWHULQJ LQVWLWXWLRQV IRU WKH PHQWDOO\ UHWDUGHG ILW URXJKO\ LQWR WZR JURXSV WKRVH DOUHDG\ PRUWLILHG DQG WKRVH ZKR KDG WKXV IDU UHIXVHG WR DFFHSW WKH VWLJPD RI PHQWDO UHWDUGDWLRQ $ SDUDGR[ SUHVHQWHG LWVHOI DV WKH SV\FKRORJLFDOO\ KHDOWKLHU VWDWXV RI DFFHSWDQFH RI FRQGLWLRQ ZKLFK ZRXOG SUREDEO\ UHVXOW LQ DQ LGHDO LQPDWH ZRXOG FRQVLJQ WKH LQGLYLGXDO WR D SHUPDQHQW LQVWLWXWLRQDO

PAGE 47

VWD\ ,Q FRQWUDVW WKRVH UHIXVLQJ WR DFFHSW WKHLU DVVLJQHG FRQGLn WLRQ ZRXOG KDYH WKH EHWWHU FKDQFH RI VXFFHVVIXO DGMXVWPHQW XSRQ GHLQVWLWXWLRQDOL]DWLRQ $JJUDQGL]HPHQW RU UHFRQVWUXFWLRQ RI WKH VHOIFRQFHSW ZDV JLYHQ D IDLU FKDQFH RI RFFXUUHQFH WKURXJK WKH PRGHV RI SHHUJURXS UHODWLRQVKLSV UHODWLRQV ZLWK HPSOR\HHV DQG FRPSDULVRQV ZLWK WKH PRUH VHYHUHO\ UHWDUGHG SRSXODWLRQ +RZHYHU WKH VHOIFRQFHSW ZKLFK ZRXOG HYROYH ZRXOG EH GHSHQGHQW RQ FRQWLQXHG LQVWLWXWLRQDOL]DWLRQ IRU LWV VXVWHQDQFH /D]DUXV f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f ,Q KLV UHSRUW RQ FRPPXQLW\ OLYLQJ SDWWHUQV RI PLOGO\ KDQGLFDSSHG DGXOWV (GJHUWRQ f QRWHG D VHQVH RI VKDPH GXH WR VNLOO GHILFLWV DQG IRUPHU LQVWLWXWLRQDOL]DWLRQ ZKLFK FDXVHG D GHIHQVLYHQHVV RQ WKHLU SDUW ,Q DQ HIIRUW WR EHFRPH DFFHSWHG DV HTXDOV WR WKHLU SHHUV RI QRUPDO LQWHOOLJHQFH KDQGLFDSSHG LQGLYLGXDOV ZRXOG ZHDU D UHFRJQL]HG VWDWXV V\PERO D ZDWFK :KHQ WKH\ ZHUH DVNHG WKH WLPH RU QHHGHG WR NQRZ WKH WLPH IRU DQRWKHU UHDVRQ WKHVH SHRSOH EHFDPH WUDSSHG LQ D WUXH ELQG DV WKH\ ODFNHG WLPHWHOOLQJ VNLOOV 7KHLU PHWKRG RI FRSLQJ ZLWK WKH VLWXDWLRQ ZDV WR FODLP WKH ZDWFK ZDV EURNHQ ,Q WKH VDPH \HDU WKDW (GJHUWRQnV ZRUN ZDV

PAGE 48

SXEOLVKHG &OHODQG 3DWWRQ DQG 6HLW] f FRPSDUHG LQVXOWV JLYHQ RXW E\ PHQWDOO\ KDQGLFDSSHG SHUVRQV DQG EXVLQHVV VFKRRO VWXGHQWV WRZDUG K\SRWKHWLFDO DGYHUVDULHV :KHUHDV WKH VWXGHQWV FDVW DVSHUVLRQV DW VRPHRQHnV FKDUDFWHU WKH KDQGLFDSSHG LQGLYLGXDOV EHUDWHG KLV LQWHOOLJHQFH 7KH ODWWHU WZR VWXGLHV SURYLGH DGGLWLRQDO HYLGHQFH SRLQWLQJ WR D QHJDWLYH VHOIFRQFHSW IRU WKH PHQWDOO\ UHWDUGHG SHUVRQ &KLQQ f UHSRUWHG WKDW UHWDUGHG PHPEHUV RI PLQRULW\ JURXSV KDG WKHLU VHOISHUFHSWLRQV WKUHDWHQHG E\ SUHMXGLFHV DJDLQVW ERWK WKHLU HWKQLF VWDWXV DQG WKHLU PHDVXUHG LQWHOOLJHQFH 5HVSRQGLQJ WR HPSOR\HUVn FRPSODLQWV RI ODFN RI PRWLYDWLRQ DPRQJ WKLV JURXS &KLQQ FLWHG WKH VSDUVLW\ RI DSSURSULDWH ZRUNRULHQWHG PRGHOLQJ DQG ODFN RI HQFRXUDJHPHQW E\ VLJQLILFDQW RWKHUV DV IDFWRUV UHVSRQVLEOH IRU WKLV VLWXDWLRQ :LWKLQ WKH SDUDPHWHUV RI PHQWDO UHWDUGDWLRQ YDULDWLRQ LQ VHOI FRQFHSW KDV EHHQ FODLPHG WR FDXVH YDULDWLRQ LQ OHDUQLQJ DELOLW\ 6WURQJ FRUUHODWLRQV KDYH EHHQ VKRZQ EHWZHHQ KLJK VHOIFRQFHSW DQG ERWK VFKRRO JUDGHV DQG LQWHOOLJHQFH %URRNRYHU (ULFNVRQ t -RLQHU 6Q\GHU f 8VLQJ TXHVWLRQQDLUHV WR JDXJH WKH UHODWLRQVKLS EHWZHHQ VHOIFRQFHSW DQG OHDUQLQJ DELOLW\ ERWK +DUG\ f DQG :LQN f UHDFKHG WKH FRQFOXVLRQ WKDW UHWDUGHG DGROHVFHQWV ZLWK KLJK VHOIFRQFHSWV OHDUQHG EHWWHU DW ILUVW DQG DUH OHVV SURQH WR OHW ODWHU QHJDWLYH UHLQIRUFHPHQW VW\PLH WKLV SURFHVV 7KH UHODWLRQVKLS EHWZHHQ WKH HIIHFWV RI UHJXODU YHUVXV VSHFLDO FODVVHV RQ WKH VHOIFRQFHSW RI UHWDUGHG VWXGHQWV KDV EHHQ WKH VXEMHFW RI QXPHURXV VWXGLHV :KLOH WKH ILQGLQJV FRQFHUQLQJ WKH

PAGE 49

HIIHFWV RI VSHFLDO FODVV SODFHPHQW RQ VHOIFRQFHSW LQFOXGHG ORZLQJ LW %RUJ 0H\HURZLW] f DQG QRW FKDQJLQJ LW VLJQLILFDQWO\ %DFKHU .QLJKW 1DVK t 0F4XLVWHQ f PRVW RI WKH HYLGHQFH SRLQWHG WRZDUG LPSURYLQJ LW &DUUROO 'UHZV 7RZQH -RLQHU t 6FKXUU f ,Q D IROORZXS RI WKH 7RZQH HW DO f VWXG\ 6FKXUU DQG %URRNRYHU f IRXQG WKDW WKH VHOIFRQFHSW VFRUHV RI VSHFLDO FODVV VWXGHQWV FRQWLQXHG WR ULVH IRU D IXOO \HDU DQG D KDOI DIWHU WKH SHULRG FRYHUHG LQ WKH RULJLQDO UHVHDUFK ,Q (GJHUWRQ DQG %HUFRYLFLnV f IROORZXS RI (GJHUWRQnV f GHVFULSWLYH UHSRUW RI FRPPXQLW\ OLYLQJ D FKDQJH ZDV QRWHG LQ WKH VXEMHFWnV SODFHPHQW RI VWLJPD RQ WKHLU KLHUDUFK\ RI SHUVRQDO YDOXHV 3UHYLRXVO\ LW ZDV UHSRUWHG WKDW WKH VWLJPD RI EHLQJ PHQWDOO\ UHWDUGHG ZDV RQH RI WKH FHQWUDO FRPSRQHQWV RI WKH HYHU\GD\ OLYHV RI PRVW RI WKHVH LQGLYLGXDOV 0XFK RI WKHLU WLPH ZDV VSHQW DWWHPSWLQJ WR SDVV DV SHUVRQV RI QRUPDO LQWHOOLJHQFH
PAGE 50

DWWLWXGHV WRZDUG PHQWDOO\ KDQGLFDSSHG FKLOGUHQ DWWLWXGHV RI PHPEHUV RI WKH EXVLQHVVLQGXVWULDO VHFWRU ODQGORUGV SDUHQWV DQG RXWVLGHUV WRZDUG PHQWDOO\ KDQGLFDSSHG LQGLYLGXDOV DQG (XURSHDQ DWWLWXGHV WRZDUG UHWDUGHG SHUVRQV -RKQVRQ f GLG UHVHDUFK RQ WZR FRPPXQLWLHV ZKLFK LQFOXGHG HGXFDEOH PHQWDOO\ UHWDUGHG VWXGHQWV LQ UHJXODU FODVVHV ZLWKRXW DGGLWLRQDO VHUYLFHV $FFHSWDQFH VFRUHV E\ SHHUV GHFUHDVHG LQ UHODn WLRQ WR WKH GHFUHDVH RI ,4nV RI UHVSHFWLYH (05 VWXGHQWV %DOGZLQ f VWXGLHG D VFKRRO VLWXDWLRQ LQ ZKLFK FHUWDLQ FULWHULD ZHUH XVHG LQ GHWHUPLQLQJ (05 VWXGHQWV HOLJLEOH IRU UHJXODU FODVV SODFHPHQW ,Q VSLWH RI WKLV VHOHFWLYLW\ WKH VRFLDO DFFHSWDQFH RI WKH HOLJLEOH UHWDUGHG VWXGHQWV ZDV PXFK ORZHU WKDQ WKH VRFLDO DFFHSWDQFH RI WKRVH VWXGHQWV QRW FRQVLGHUHG UHWDUGHG 7KH SULQFLSDO UHDVRQ JLYHQ IRU ODFN RI DFFHSWDQFH LQ HDFK RI WKH DERYH VWXGLHV ZDV QRW DFDGHPLF OLPLWDWLRQV EXW LQDSSURSULDWH EHKDYLRU 'H[WHU f UHSRUWHG WKDW GHYLDQW EHKDYLRU FRXOG ZHOO EH D IDFWRU LQ VSHFLDO FODVV SODFHPHQW EXW GHILQHG WKLV EHKDYLRU DV WKH QDWXUDO UHVSRQVH WR LQDSSURSULDWH WUHDWPHQW E\ WKH KDQGLFDSSHG FKLOGnV SHHUV DQG WHDFKHUV 5HVHDUFK RQ DWWHQGDQFH RI (05 VWXGHQWV LQ UHJXODU FODVVHV KDG GRQH OLWWOH WR VXSSRUW 'XQQnV f FRQWHQWLRQ WKDW LQWHJUDWHG OHDUQLQJ VLWXDWLRQV UHVXOW LQ SRVLWLYH DWWLWXGLQDO FKDQJH RQ WKH SDUW RI QRQKDQGLFDSSHG SRSXODWLRQV *ROGVWHLQ 0RVV DQG -RUGRQ f GLG VKRZ WKDW QRQKDQGLFDSSHG FKLOGUHQ SOD\HG PRUH RIWHQ DIWHU VFKRRO ZLWK PHQWDOO\ KDQGLFDSSHG SHHUV ZKR DWWHQGHG UHJXODU FODVVHV WKDQ ZLWK WKRVH ZKR ZHUH HQUROOHG LQ VSHFLDO FODVVHV

PAGE 51

+RZHYHU LW PXVW EH QRWHG WKDW VRPH VRFLDO FRQWDFW LPSRUWDQW LQ HVWDEOLVKLQJ DIWHUVFKRRO SOD\PDWHV ZRXOG RFFXU LQ LQWHJUDWHG FODVVHV DQG ZRXOG EH ODFNLQJ LQ VHJUHJDWHG RQHV *RRGPDQ *RWWOLHE DQG +DUULVRQ f GHWHUPLQHG WKDW LQ D QRQJUDGHG HOHPHQWDU\ VFKRRO LQWHJUDWHG (05 VWXGHQWV ZHUH DFFHSWHG OHVV RIWHQ DQG UHMHFWHG PRUH RIWHQ WKDQ WKHLU QRQKDQGLFDSSHG SHHUV *RWWOLHE DQG %XGRII f FRPSDUHG SHHU DFFHSWDQFH RI QRQKDQGLFDSSHG VWXGHQWV VHJUHJDWHG (05 VWXGHQWV DQG LQWHJUDWHG (05 VWXGHQWV LQ QRQJUDGHG VFKRROV 7KH LQWHJUDWHG (05 JURXS ZHUH UDWHG DV WKH OHDVW DFFHSWHG )LQDOO\ ,DQR $\HUV +HOOHU 0F*HWWLJDQ DQG :DONHU f GHFLGHG WR JDXJH WKH DFFHSWDQFH UDWH RI HGXFDEOH PHQWDOO\ KDQGLFDSSHG VWXGHQWV ZKR KDG SUHYLRXVO\ DWWHQGHG VSHFLDO FODVVHV DQG KDG EHHQ PDLQVWUHDPHG LQWR WKH UHJXODU FODVVURRP ZLWK DGGLWLRQDO DGYDQWDJH RI D VXSSRUWLYH UHVRXUFH URRP SURJUDP 7KHVH ZHUH QR EHWWHU DFFHSWHG WKDQ WKRVH UHSRUWHG LQ WKH DERYH VWXGLHV 7ZR KXQGUHG PHPEHUV RI WKH EXVLQHVVLQGXVWULDO VHFWRU ZHUH LQWHUYLHZHG E\ UHVHDUFKHUV IRU %DOWLPRUH *RRGZLOO LQ RUGHU WR GHWHUn PLQH SURVSHFWV IRU MRE SODFHPHQW LQ WKDW FLW\ %DVHG RQ WKH TXHVWLRQQDLUH UHVXOWV WKH EHVW MRE RSSRUWXQLWLHV IRU KDQGLFDSSHG SHUVRQV ZHUH LQ WKH DUHDV RI FOHULFDO IRRG VHUYLFHV FXVWRGLDO VHUYLFH VWDWLRQV DQG XSKROVWHU\ 7KH DUHDV LQ ZKLFK WKH KDQGLn FDSSHG DSSOLFDQW ZRXOG VWDQG WKH OHDVW FKDQFH RI DWWDLQLQJ HPSOR\PHQW ZHUH WKRVH RI VDOHV DQG ODXQGU\ %XVLQHVVPHQ H[SUHVVHG D JUHDWHU DPRXQW RI FRQFHUQ ZLWK ZRUN DWWLWXGHV DQG PRWLYDWLRQ WKDQ ZLWK WHFKQLFDO VNLOOV 6WHZDUW f

PAGE 52

$Q DWWHPSW ZDV PDGH WR GHWHUPLQH ZKHWKHU ZDJHHDUQLQJ PLOGO\ UHWDUGHG DGXOWV ZRXOG EH VXEMHFW WR GLVFULPLQDWLRQ IURP ODQGORUGV LQ WKH 1HZ 3DOW] 1HZ
PAGE 53

DQG LW ZDV SHUKDSV H[SHFWLQJ WRR PXFK WR DQWLFLSDWH WKDW IRXU WHOHn YLVLRQ SURJUDPV FRXOG HUDVH D OLIHWLPH RI IHHOLQJV DQG H[SHULHQFHV ,Q WKH VHFRQG VXEVHFWLRQ RI WKLV VHFWLRQ WKH IROORZLQJ DUHDV UHJDUGLQJ SHUFHSWLRQV RI PHQWDOO\ KDQGLFDSSHG SHUVRQV E\ WKRVH ZLWKn RXW KDQGLFDSV DUH GLVFXVVHG WKH DWWLWXGHV RI PRWKHUV WRZDUG WKHLU KDQGLFDSSHG FKLOGUHQ GLIIHUHQFHV LQ SXEOLF DWWLWXGHV WRZDUG PLOGO\ DQG VHYHUHO\ KDQGLFDSSHG SHUVRQV DQG WKH HIIHFWV RI WKH ODEHO PHQWDOO\ UHWDUGHG RQ LQGLYLGXDOVn SHUFHSWLRQV RI WKH FDXVHV RI RQHn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t *HVNH f ,Q WKH VHFRQG VWXG\ 6LSHUVWHLQ DQG *RWWOLHE f IRXQG WKDW SXEOLF DWWLWXGHV WRZDUG PLOGO\ UHWDUGHG LQGLYLGXDOV ZHUH FRQVLGHUDEO\ PRUH IDYRUDEOH WKDQ WKRVH WRZDUG VHYHUHO\ PHQWDOO\ UHWDUGHG SHUVRQV /DVWO\ 6HYHUDQFH DQG *DVVWURP f DGPLQLVWHUHG ERRNOHWV FRQWDLQLQJ WZR FDVH VWXGLHV WR IHPDOH XQGHUJUDGXDWHV 7KH FDVHV GHVFULEHG HLWKHU VXFFHVVHV RU IDLOXUHV DW WDVN FRPSOHWLRQ ,Q KDOI RI WKH VXFFHVVHV DV ZHOO DV WKH IDLOXUHV WKH ODEHO PHQWDOO\ UHWDUGHG ZDV LQFOXGHG LQ WKH FKLOGnV GHVFULSWLRQ 8VLQJ )ULH]H DQG :HLQHUnV

PAGE 54

f DWWULEXWLRQ RI IRXU VHWV RI FDXVDO HOHPHQWV VNLOO PRWLYDn WLRQ GLIILFXOW\ DQG OXFNf E\ ZKLFK VRFLDO SHUFHLYHUV H[SODLQ WKH EHKDYLRUV DQG RXWFRPHV RI RWKHUV DV WKH EDVLV IRU WKHLU UHVHDUFK WKH DXWKRUV TXHVWLRQHG WKH XQGHUJUDGXDWHV DV WR ZKLFK HOHPHQWV GRPLQDWHG LQ WKHLU FDVH VWXGLHV )RU WKH FKLOGUHQ UDQGRPO\ ODEHOHG UHWDUGHG IDLOXUHV ZHUH VHHQ DV PRUH DORQJ DELOLW\ UHODWHG OLQHV DQG HIIRUW RU ODFN RI LWf ZDV EODPHG DW D KLJKHU UDWH IRU QRQODEHOHG IDLOXUHV 5HJDUGLQJ VXFFHVV D UHWDUGHG SHUVRQ ZDV WKRXJKW WR H[HUW PRUH HIIRUW WKDQ D SHUVRQ QRW ODEHOHG UHWDUGHG $IWHU UHVHDUFK LQ (XURSH /LSSPDQ f FRQFOXGHG WKDW (XURSHDQV JHQHUDOO\ SRVVHVVHG D PRUH SRVLWLYH DWWLWXGH WRZDUG WKH KDQGLFDSSHG SHUVRQ WKDQ $PHULFDQV GLG 7KLV DWWLWXGH ZDV EURXJKW KRPH WR $PHULFD LQ :ROIHQVEHUJHU HW DOV f ZRUN HQWLWOHG 1RUPDOL]DWLRQ 7KH FRQFHSW RI QRUPDOL]DWLRQ ERUURZHG IURP 6FDQGLQDYLD 1LUMH f DQG GHILQHG LQ WKH $GXOW $GMXVWPHQW RI 0HQWDOO\ +DQGLn FDSSHG ,QGLYLGXDOnV VHFWLRQ RI WKLV OLWHUDWXUH UHYLHZ SURPLVHG WR KDYH D SURIRXQG LQIOXHQFH RQ $PHULFDQ WUHDWPHQW RI UHWDUGHG DGXOWV 6XPPDU\ 7KLV VHFWLRQ RI WKH UHYLHZ RI UHOHYDQW OLWHUDWXUH FRQVLVWHG RI WZR VXEVHFWLRQV 6HOI3HUFHSWLRQV +HOG E\ 0HQWDOO\ +DQGLFDSSHG 3HUVRQV DQG 3HUFHSWLRQV RI 6XFK 3HUVRQV E\ 7KRVH :LWKRXW +DQGLFDSV 7KH ILUVW VXEVHFWLRQ FRQWDLQHG FRQVHFXWLYHO\ FRQVHQVXV RQ WKH SRVLWYHQHVV RI WKH UHWDUGHG SHUVRQnV VHOIFRQFHSW WKH HIIHFW RI LQVWLWXWLRQDOL]DWLRQ RQ RQHnV VHOIFRQFHSW RWKHU OLIHWLPH WUDXPDV ZKLFK PD\ KDYH GHHS UHSHUFXVVLRQV RQ WKH KDQGLFDSSHG SHUVRQnV

PAGE 55

VHOISHUFHSWLRQ FRSLQJ LQ SXEOLF ZLWK RQHn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f &ULWHULD IRU VXFFHVVIXO DGDSWLYH EHKDYLRU EHJLQ ZLWK VHQVRU\PRWRU FRPPXQLFDWLRQ VHOIKHOS DQG VRFLDOL]DWLRQ VNLOOV LQ WKH HDUO\ \HDUV RI OLIH DQG HQG ZLWK GDLO\ OLYLQJ YRFDWLRQDO DQG VRFLDO DELOLWLHV LQ DGXOWKRRG %UROLQ f

PAGE 56

$GDSWLYH EHKDYLRU VFDOHV DSSOLFDEOH IRU XVDJH ZLWK HGXFDEOH PHQWDOO\ KDQGLFDSSHG DGXOWV DUH OLPLWHG LQ QXPEHU 7KH PRVW FRPPRQO\ PHQWLRQHG DUH WKH $$0' $GDSWLYH %HKDYLRU 6FDOH DQG WKH 9LQHODQG 6RFLDO 0DWXULW\ 6FDOH %UROLQ 5RELQVRQ t 5RELQVRQ f 7KH IRUPHU SXUSRUWV WR PHDVXUH VHOIVXIILFLHQF\ VHQVRU\ PRWRU GHYHORSPHQW VRFLDOL]DWLRQ GRPHVWLF DELOLWLHV YRFDWLRQDO SURPLVH DQG UHVSRQVLELOLW\ 1LKLUD )RVWHU 6KHOOKDDV t /HODQG f 7KH 9606 DWWHPSWV WR GLVFRYHU WUDLWV RI VRFLDO UHVSRQVLELOLW\ SHUVRQDO LQGHSHQGHQFH DQG LQLWLDWLYH ,Q DGGLWLRQ LW LV XVHG WR GHWHUPLQH WKH OHYHO RI OHDUQLQJ UHDGLQHVV DQ LQGLYLGXDO SRVVHVVHV 'ROO f 6XUSULVLQJO\ QHLWKHU RI WKH DERYH ZHUH PHQWLRQHG LQ %UROLQ DQG .RNDVNDnV f FRPSUHKHQVLYH WH[W RQ FDUHHU HGXFDWLRQ IRU VSHFLDO QHHGV VWXGHQWV ,QVWHDG D UHODWLYH QHZFRPHU WR WKH ILHOG RI DGDSWLYH EHKDYLRU PHDVXUHPHQW ZDV VXJJHVWHG ,W LV HQWLWOHG WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ 63,%f DQG LV WKH ZRUN RI +DOSHUQ 5DIIHOG ,UYLQ DQG /LQN f 7KH SXUSRVH RI LWV FRQn VWUXFWLRQ ZDV WR GHWHUPLQH NQRZOHGJH RI VNLOOV DQG FRPSHWHQFLHV GHHPHG HVVHQWLDO IRU WKH XOWLPDWH FRPPXQLW\ DGMXVWPHQW RI PLOGO\ UHWDUGHG SHUVRQV 1LQH DUHDV DUH VFRUHG SXUFKDVLQJ KDELWV EXGJHWn LQJ EDQNLQJ MREUHODWHG EHKDYLRU MRE VHDUFK VNLOOV KRPH PDQDJHPHQW KHDOWK FDUH K\JLHQH DQG JURRPLQJ DQG IXQFWLRQDO VLJQV 7KHVH DUH GLUHFWO\ UHODWHG WR ILYH ORQJ UDQJH REMHFWLYHV RI MXQLRU DQG VHQLRU KLJK VFKRRO ZRUNVWXG\ SURJUDPV HPSOR\DELOLW\ HFRQRPLF LQGHSHQGHQFH IDPLO\ OLIH SHUVRQDO KDELWV DQG FRPPXQLFDWLRQ 8VLQJ WKH .XGHU 5LFKDUGVRQ IRUPXOD D UHOLDELOLW\ UDWLQJ RI ZDV IRXQG IRU

PAGE 57

VHQLRU KLJK VFKRRO VWXGHQWV ,Q RUGHU WR GHWHUPLQH SUHGLFWLYH YDOLGLW\ HFRQRPLFDO FRUUHODWLRQ ZDV SHUIRUPHG EHWZHHQ WKH 63,% WHVWV DQG ILYH VFRUHV IURP DQ DGMXVWPHQW UDWLQJ LQVWUXPHQW DGPLQLVWHUHG WR YRFDWLRQDO UHKDELOLWDWLRQ FRXQVHORUV RQH \HDU DIWHU WKH VXEMHFWV OHIW KLJK VFKRRO $ ILUVW RUGHU FRUUHODWLRQ RI VKRZHG D PRGHUDWH UHODWLRQVKLS EHWZHHQ WKH 63,% VFRUHV DQG WKH RWKHUV +DOSHUQ HW DO f %UROLQ DQG .RNDVND f FRQFOXGHG WKDW WKLV LQVWUXPHQW LV D VXEVWDQWLDO FRQWULEXWLRQ WR WKH RFFXSDn WLRQDO JXLGDQFH DUHD DQG ZRUWK\ RI XWLOL]DWLRQ S f 7KH VHOIFRQFHSW LV JHQHUDOO\ FRQFHLYHG DV WKH WRWDO YLHZ D SHUVRQ KDV RI KLPVHOI &DUO 5RJHUV GHILQHG VHOIFRQFHSW LQ D PDQQHU ZKLFK UHPDLQV UHOHYDQW WRGD\ DQ RUJDQL]HG FRQILJXUDWLRQ RI SHUFHSWLRQV RI WKH VHOI ZKLFK DUH DGPLVVLEOH WR DZDUHQHVV ,W LV FRPSRVHG RI VXFK HOHPHQWV DV WKH SHUFHSWLRQV RI RQHnV FKDUDFWHULVWLFV DQG DELOLWLHV WKH YDOXH TXDOLWLHV ZKLFK DUH SHUFHLYHG DV DVVRFLDWHG ZLWK H[SHULHQFHV DQG REMHFWV DQG JRDOV DQG LGHDOV ZKLFK DUH SHUFHLYHG DV KDYLQJ SRVLWLYH RU QHJDWLYH YDOHQFH 5RGJHUV SS f %UROLQ DQG .RNDVND f HODERUDWHG RQ WKLV GHILQLWLRQ E\ DWWULEXWn LQJ IRXU FRPSRQHQWV WR WKH SURFHVV RI VHOIFRQFHSWXDOL]DWLRQ )LUVW WKH VHOIFRQFHSW LV OHDUQHG DQG FDQ WKHUHIRUH FKDQJH ZLWK QHZ H[SHULHQFHV 6HFRQG LW LV LQIOXHQFHG E\ VLJQLILFDQW RWKHUV 7KLUG LW LV EDVHG RQ RQHnV SHUFHSWLRQV RI RQHVHOI DQG RQHnV HQYLURQPHQW 7KXV DQ\ OLPLWDWLRQV LQ RQHnV V\VWHP RI UHFHLYLQJ LQIRUPDWLRQ HJ YLVXDO GHILFLWf DIIHFW RQHnV VHOIFRQFHSW /DVW RQH SODFHV D FHUWDLQ YDOXH RQ ZKDW KH SHUFHLYHV ZKLOH ORRNLQJ DW KLPVHOI

PAGE 58

7KH VHOIFRQFHSW VFDOHV DYDLODEOH DW WKLV WLPH ZHUH SULPDULO\ GHVLJQHG WR PHDVXUH RQHnV EHOLHIV DERXW RQHVHOI 7KH\ DWWHPSW WR JDXJH WKH LQGLYLGXDOnV XQGHUVWDQGLQJ RI KLV SUHVHQW VWDWXV WKH EHKDYLRUV DQG DWWLWXGHV RWKHUV KDYH RI KLP DQG WKH YDOXHV KH SODFHV RQ ZKDW KH SHUFHLYHV 6HOIFRQFHSW VFDOHV ZHUH ORFDWHG LQ ODUJH TXDQWLW\ LQ 7KH (LJKWK 0HQWDO 0HDVXUHPHQWV
PAGE 59

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f EHWZHHQ WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ VFRUHV RI

PAGE 60

WKH HPSOR\HG PHQWDOO\ KDQGLFDSSHG PDOHV DQG WKH 6RFLDO DQG 3UHYRFD WLRQDO ,QIRUPDWLRQ %DWWHU\ VFRUHV RI WKH XQHPSOR\HG PHQWDOO\ KDQGLFDSSHG PDOHV 6HH SDJH f 7KHUH DUH QR VWDWLVWLFDOO\ VLJQLILFDQW GLIIHUHQFHV D f EHWZHHQ WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ VFRUHV RI WKH HPSOR\HG PHQWDOO\ KDQGLFDSSHG PDOHV DQG WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ VFRUHV RI WKH XQHPSOR\HG PHQWDOO\ KDQGLFDSSHG PDOHV 6HH SDJH f 7KHUH DUH QR VLJQLILFDQW GLIIHUHQFHV S f EHWZHHQ WKH HPSOR\HG LQGLYLGXDOVn SHUFHSWLRQV RI WKHLU VXLWDELOLW\ IRU WKHLU UHVSHFWLYH HPSOR\PHQW SRVLWLRQV DQG WKH SHUFHSWLRQV KHOG E\ VLJQLILn FDQW RWKHUV LQ WKH OLYHV RI WKH VXEMHFWV ZKR DUH LQ D SRVLWLRQ WR REVHUYH WKH VXEMHFWVn ZRUN VLWXDWLRQV 6HH SDJH f 7KHUH DUH QR VWDWLVWLFDOO\ VLJQLILFDQW GLIIHUHQFHV S f EHWZHHQ WKH SHUFHSWLRQV RI WKH XQHPSOR\HG LQGLYLGXDOV RQ WKHLU HPSOR\DELOLW\ DQG WKH SHUFHSWLRQV RI VLJQLILFDQW RWKHUV LQ WKH OLYHV RI WKH VXEMHFWV RQ WKH VXEMHFWVn HPSOR\DELOLW\ 6HH SDJH f 'HVLJQV ,Q RUGHU WR GHWHUPLQH ZKHWKHU WKH GLVFUHSDQFLHV LQ GDWD DFFXPXODWHG IRU WKH SXUSRVH RI WKLV VWXG\ ZHUH JUHDWHU WKDQ FRXOG EH DWWULEXWHG WR FKDQFH WZR VWDWLVWLFDO GHVLJQV ZHUH FKRVHQ $Q DQDO\VLV RI YDULDQFH $19$f GHVLJQ ZDV XVHG WR GHWHUPLQH ZKHWKHU D VLJQLILFDQW GLIIHUHQFH FRXOG EH DVFHUWDLQHG EHWZHHQ WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ 63,%f DQG 6HOI3HUFHSWLRQ ,QYHQWRU\ 63,f VFRUHV RI HPSOR\HG VXEMHFWV DQG WKH 63,% DQG 63, VFRUHV RI XQn HPSOR\HG VXEMHFWV 7KH )LVKHU ([DFW 7HVW ZDV XVHG LQ FRPSDULQJ WKH

PAGE 61

VXEMHFWVn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f DQG FRPSDUHV WKHLU DVVHUWLRQV RQ DGHTXDF\ RI HPSOR\PHQW DQG HPSOR\DELOLW\ ZLWK WKDW RI YHULILHUV 0RGHO %f

PAGE 62

0RGHO $ 6XEMHFWV 63,% 63, (PSOR\HG &O 8QHPSOR\HG & &O SUHVHQWO\ VDODULHG LQ D FRPSHWLWLYH RFFXSDWLRQDO SRVLWLRQ & SUHVHQWO\ XQVDODULHG 0RGHO % 6XEMHFWV 0HQWDOO\ 5HWDUGHG 9HULILHU (PSOR\HG 8QHPSOR\HG ' DGHTXDF\ RI HPSOR\PHQW HPSOR\DELOLW\ )LJXUH 6WUXFWXUDO 0RGHOV

PAGE 63

6XEMHFWV )RUW\ VXEMHFWV ZHUH FKRVHQ UHSUHVHQWLQJ WZR GLVWLQFW JURXSV RI PHQWDOO\ KDQGLFDSSHG PDOHV EHWZHHQ WKH DJHV RI DQG 7ZHQW\ VXEMHFWV ZHUH VHOHFWHG IURP D SRSXODWLRQ RI HPSOR\HG PHQWDOO\ KDQGLFDSSHG PDOHV DQG VXEMHFWV ZHUH VHOHFWHG IURP D SRSXODWLRQ RI XQHPSOR\HG PHQWDOO\ KDQGLFDSSHG PDOHV 6XEMHFWV ZHUH ORFDWHG WKURXJK WKUHH PHDQV RI FRPPXQLFDWLRQ &RQWDFWV ZLWK SURIHVVLRQDOV GHDOLQJ ZLWK UHWDUGHG DGXOWV ZHUH HVWDEOLVKHG YLD SHUVRQDO YLVLWV WHOHSKRQH FDOOV DQG OHWWHUV $SSHQGL[ $f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

PAGE 64

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f RU VLEOLQJV IRU WUDQVSRUWDWLRQ 8UEDQLWHV RQ WKH RWKHU KDQG UDUHO\ RZQHG D FDU EXW VHHPHG WR KDYH QR WURXEOH UHDFKLQJ GHVWLQDWLRQ SRLQWV GXH WR DFFHVV WR SXEOLF WUDQVn SRUWDWLRQ 5XUDO VXEMHFWV XVXDOO\ UHVLGHG ZLWK WKHLU SDUHQWV ZKLOH XUEDQ VXEMHFWV ZHUH PRUH RIWHQ LQ JURXS OLYLQJ KRPHV 6XEMHFWV IURP UXUDO DUHDV DSSHDUHG WR EH PRUH VRFLDEOH DQG PDGH RI SRLQW RI OHWWLQJ

PAGE 65

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nV FRQWHQWLRQ RI DGHTXDF\ RI HPSOR\PHQW RU HPSOR\DELOLW\ D FRQVHQVXV RI WKH YHULILHUV H[SUHVVHG D JHQXLQH DIIHFWLRQ IRU WKH PHQWDOO\ KDQGLFDSSHG VXEMHFWV ZLWK ZKRP WKH\ KDG FRQWDFW $ VSHFLDO HGXFDWLRQ WHDFKHU IURP /DZUHQFH VDLG KLV

PAGE 66

IRUPHU VWXGHQWV ZKR ZHUH EHLQJ DGPLQLVWHUHG WKH LQVWUXPHQWV ZHUH JRRG SHRSOH OLNH \RX DQG 0RVW ZDQW WR ZRUN EXW MXVW OLNH WKH UHVW RI XV VRPH GRQn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f $W WKH XUEDQ VLWHV :LFKLWD 2YHUODQG 3DUN DQG /DZUHQFHf VXEMHFWV ZHUH ORFDO UHVLGHQWV IURP WKH UHVSHFWLYH FLWLHV $W WKH UXUDO VLWHV VXEMHFWV

PAGE 67

.DQVDV 1RUWRQr SRS f r 6WRFNWRQ SRS f f +D\V SRS f /DZUHQFH SRS f 2YHUODQG 3DUN SRS f 3UDWW f f :LFKLWD SRS f SRS f )LJXUH 3RSXODWLRQV RI &LWLHV DQG 7RZQV LQ :KLFK ,QVWUXPHQWV :HUH $GPLQLVWHUHG

PAGE 68

ZHUH HLWKHU ORFDO UHVLGHQWV RU ZHUH WUDQVSRUWHG WR WKH VLWHV IURP QHDUE\ WRZQV 7KH VXEMHFWV ZHUH LQLWLDOO\ JLYHQ WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ ZKLFK WRRN DQ DYHUDJH RI PLQXWHV WR FRPSOHWH ,Q DGGLWLRQ WR WKH XWLOL]DWLRQ RI D VDPSOH LWHP SUHFHGLQJ WKH ,QYHQWRU\ FRQWLQXDO FODULILFDWLRQ RI HDFK LWHPn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nV DQVZHU VKHHW WR GHWHUPLQH WKDW WKH FRUUHFW VSDFH IRU WKDW QXPEHUHG VWDWHPHQW ZDV EHLQJ

PAGE 69

PDUNHG 2QO\ RQH RI WKH VXEMHFWV ZDV IRXQG WR EH PDUNLQJ LQDSSURn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f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n PHQW IRUPHG WKH EDVLV RI +\SRWKHVLV

PAGE 70

7KH 6HOI3HUFHSWLRQ ,QYHQWRU\ 63,f LV D PHDVXUH RI KRZ WKH VXEMHFW VHHV KLPVHOI 7KH LQYHQWRU\ DV XVHG LQ WKLV UHVHDUFK PHDVXUHV VROHO\ RQHnV SHUFHSWLRQ RI KLPVHOI DV D SHUVRQ ,W LV DJH DQG VXEMHFW DSSURSULDWH ZLWK DGHTXDWH GDWD RQ WKH QRUPDWLYH SRSXODWLRQ 8QOLNH PDQ\ VHOIFRQFHSW PHDVXUHV 63, GRHV VXSSO\ YDOLGLW\ GDWD 7KLV VKRZV 63, WR FRUUHODWH ZLWK &RRSHUVPLWKnV 6HOI(VWHHP ,QYHQWRU\ DW WKH OHYHO 7KH LQVWUXPHQW LV DFNQRZOHGJHG WR EH KLJKO\ XVDEOH DV LW LV SUHVHQWHG LQ D VWUDLJKWIRUZDUG PDQQHU FRPHV HTXLSSHG ZLWK VKRUW FRQFLVH GLUHFWLRQV DQG KDV D FOHDU IRUPDW &RPSDULVRQ RI WKH PHDQ VFRUHV RI HPSOR\HG DQG XQHPSOR\HG VXEMHFWV RQ WKLV LQVWUXPHQW IRUPHG WKH EDVLV RI +\SRWKHVLV )LQDOO\ WZR VHSDUDWH TXHVWLRQV ZHUH DVNHG RQH WR WKH HPSOR\HG VXEMHFWV DQG RQH WR WKH XQHPSOR\HG VXEMHFWV 7KH PHPEHUV RI WKH ILUVW JURXS HPSOR\HGf ZHUH DVNHG ZKHWKHU WKH\ FRQVLGHUHG WKHLU SRVLWLRQ RI HPSOR\PHQW DGHTXDWH 7KHLU HPSOR\HUV DQG VRFLDO DFTXDLQWDQFHV ZHUH WKHQ DVNHG LI WKH\ FRQVLGHUHG WKH VXEMHFWnV HPSOR\PHQW SRVLWLRQ WR EH DGHTXDWH IRU WKH VXEMHFWnV DELOLW\ OHYHO &RPSDULVRQ RI WKH UHVSRQVHV RI WKH VXEMHFWV ZLWK WKDW RI WKHLU YHULILHUV IRUPHG WKH EDVLV RI +\SRWKHVLV 7KH PHPEHUV RI WKH VHFRQG JURXS XQHPSOR\HGf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

PAGE 71

ZHUH VHOHFWHG &RPSDULVRQ RI WKH UHVSRQVHV RI WKH VXEMHFW ZLWK WKDW RI WKHLU YHULILHUV IRUPHG WKH EDVLV RI +\SRWKHVLV

PAGE 72

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n JDWH IRU GLIIHUHQFHV EHWZHHQ PHDQV REWDLQHG IURP HPSOR\HG DQG XQHPSOR\HG PHQWDOO\ UHWDUGHG PDOHV RQ PHDVXUHPHQW RI DGXOW DGMXVWn PHQW VNLOOV DQG VHOISHUFHSWLRQ $FFRUGLQJ WR :LOOHPVHQ f DQDO\VLV RI YDULDQFH LV D PHWKRG E\ ZKLFK WKH WRWDO YDULDQFH RI D JURXS RI VFRUHV DUH DOJHEUDLFDOO\ GLYLGHG LQWR SRUWLRQV 8QGHU SURSHU FRQGLWLRQV WKHVH SRUWLRQV FDQ ZRUN DV DQ XQELDVHG HVWLPDWH RI WKH YDULDWLRQ GXH WR GLIIHUHQW LGHQWLILDEOH VRXUFHV S f $PRQJ RWKHU VRXUFHV

PAGE 73

VSHFLILF VXEMHFW FKDUDFWHULVWLFV VXFK DV SUHVHQW HPSOR\PHQW VLWXDn WLRQ DUH UHOHYDQW WR WKH SUHVHQW UHVHDUFK 3URSHU FRQGLWLRQV LQFOXGH WKH IROORZLQJ DVVXPSWLRQV Df HDFK RI WKH VDPSOHG SRSXODWLRQ LV DVVXPHG WR KDYH D QRUPDO GLVWULEXWLRQ DQG Ef DOO SRSXODWLRQV DUH DVVXPHG WR KDYH WKH VDPH YDULDQFH $V SDUWLFLSDQWV LQ WKLV VWXG\ ZHUH JDWKHUHG UHSUHVHQWDWLYHO\ IURP D ZLGH JHRJUDSKLFDO DQG VRFLRFXOWXUDO UDQJH IURP ZLWKLQ WKH 6WDWH RI .DQVDV QRUPDO GLVWULEXWLRQ IRU XWLOL]Dn WLRQ RI WKH DQDO\VLV RI YDULDQFH GHVLJQ ZDV DFKLHYHG 7KH VHFRQG VWDWLVWLFDO WUHDWPHQW XVHG ZDV WKH )LVKHU ([DFW 7HVW %RUJ t *DOO f 'XH WR WKH VPDOO IUHTXHQFLHV RFFXS\LQJ VHYHUDO RI WKH FURVV EUHDNV WKH )LVKHU ([DFW 7HVW ZDV XVHG WR UHDFK H[DFW SUREDELOLW\ 7KH SXUSRVH RI WKLV WHFKQLTXH ZDV WR H[DPLQH WKH UHODn WLRQVKLS LQ DJUHHPHQW EHWZHHQ WKH VXEMHFW DQG WKH YHULILHU $VVXPSWLRQV IRU FRPSXWDWLRQ LQFOXGH FRPSOHWH LQGHSHQGHQFH RI VXEMHFWV ,Q DGGLWLRQ WR WKH VWDWLVWLFV XVHG IRU YHULILFDWLRQ RI WKH K\SRWKHVHV DQDO\VLV RI YDULDQFH ZHUH XVHG WR DFFXPXODWH LQIHUHQFHV UHJDUGLQJ RWKHU YDULDEOHV IRXQG LQ WKH GDWD 7KHVH YDULDEOHV LQFOXGHG GLVFUHWH DJH JURXSV DQG f DQG ORFDWLRQ UXUDO DQG XUEDQf ZKLFK ZHUH REVHUYHG ZLWK UHJDUG WR HPSOR\PHQW VWDWXV 6WDWLVWLFDO $QDO\VLV RI +\SRWKHVHV 7HVWHG +\SRWKHVLV 6WDWLVWLFDO DQDO\VLV RI +\SRWKHVLV LV SUHVHQWHG LQ 7DEOH $ OHYHO RI VLJQLILFDQFH ZLWK GHJUHHV RI IUHHGRP SODFHV WKH FULWLFDO SRLQW DW IRU +\SRWKHVLV

PAGE 74

7DEOH 'HJUHHV RI )UHHGRP 6XPV RI 6TXDUHV 0HDQ 6TXDUHV DQG e5DWL RV IRU +\SRWKHVHV DQG +\SRWKHVLV GI 6XP RI 6TXDUHV 0HDQ 6TXDUH e %HWZHHQ *URXSV :LWKLQ *URXSV 7RWDO 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ +\SRWKHVLV GI 6XP RI 6TXDUHV 0HDQ 6TXDUH e %HWZHHQ *URXSV :LWKLQ *URXSV 7RWDO 6HOI3HUFHSWLRQ ,QYHQWRU\ 6LJQLILFDQW DW UHJLRQ LV e OHYHO RI FRQILGHQFH ZLWK GI FULWLFDO &RPSXWDWLRQ RI e &RPSXWDWLRQ RI e

PAGE 75

6WDWHPHQW RI +\SRWKHVLV 7KHUH DUH QR VWDWLVWLFDOO\ VLJQLILn FDQW GLIIHUHQFHV D f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f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

PAGE 76

7DEOH $GHTXDF\ RI (PSOR\PHQW $JUHHPHQW DQG (PSOR\DELOLW\ $JUHHPHQW IRU +\SRWKHVHV DQG +\SRWKHVLV
PAGE 77

6WDWHPHQW RI +\SRWKHVLV 7KHUH LV QR UHODWLRQVKLS EHWZHHQ HPSOR\HG LQGLYLGXDOV UDWLQJV RI WKH DGHTXDF\ RI WKHLU RZQ HPSOR\PHQW DQG WKH UDWLQJV RI WKHLU YHULILHUV S f )LQGLQJV 'DWD IURP +\SRWKHVLV JDYH VWDWLVWLFDO VXSSRUW IRU DJUHHPHQW EHWZHHQ VXEMHFWV DQG YHULILHUV UHJDUGLQJ WKH VXEMHFWVn DGHTXDF\ RI HPSOR\PHQW 7KH SUREDELOLW\ RI ZDV UHMHFWHG $ FRQILUPDWLRQ RI WKLV ILQGLQJ ZDV WKH UDWLR RI DJUHHPHQW EHWZHHQ VXEMHFWV DQG YHULILHUV 2I WKH VXEMHFWV UHFHLYHG DJUHHPHQW IURP WKHLU YHULILHUV 7KLV UDWLR RI VLJQLILHG D KLJK DJUHHPHQW UDWLR RI +\SRWKHVLV 6WDWLVWLFDO DQDO\VLV RI +\SRWKHVLV LV SUHVHQWHG LQ 7DEOH 7KH FULWLFDO OHYHO IRU +\SRWKHVLV LV DW WKH OHYHO RI SUREDELOLW\ ZLWK RQH GHJUHH RI IUHHGRP 6WDWHPHQW RI +\SRWKHVLV 7KHUH LV QR UHODWLRQVKLS EHWZHHQ XQHPSOR\HG LQGLYLGXDOVn UDWLQJ RI WKHLU HPSOR\DELOLW\ DQG WKH UDWLQJV RI WKHLU YHULILHUV S f )LQGLQJV 'DWD IURP +\SRWKHVLV IDLOHG WR VWDWLVWLFDOO\ VXSSRUW DJUHHPHQW EHWZHHQ VXEMHFWV DQG YHULILHUV UHJDUGLQJ WKH VXEMHFWVn HPSOR\DELOLW\ DV WKH SUREDELOLW\ RI H[FHHGHG WKH FULWLFDO OHYHO RI 7KHUHIRUH +\SRWKHVLV ZDV QRW UHMHFWHG +RZHYHU WKH UDWLR RI DJUHHPHQW EHWZHHQ VXEMHFWV DQG YHULILHUV ZDV DOPRVW DV KLJK DV WKDW LQ +\SRWKHVLV 7KH UDWLR RI VLJQLILHG D KLJK DJUHHn PHQW UDWLR RI $GGHG WR WKH GDWD XVHG IRU WHVWLQJ DQG SULPDU\ DQG VHFRQGDU\ K\SRWKHVHV RI WKLV VWXG\ QXPHURXV RWKHU GDWD DSSHDUHG IURP

PAGE 78

DGPLQLVWUDWLRQ RI WKH LQVWUXPHQWV 7KHVH ZHUH DQDO\]HG LQ RUGHU WR VKHG IXUWKHU OLJKW RQ DGXOWDGMXVWPHQW VNLOOV DQG VHOIFRQFHSWV RI PHQWDOO\ UHWDUGHG PHQ ,Q RUGHU WR GHWHUPLQH ZKHWKHU DJH GLIIHUn HQFHV UHSUHVHQWHG VLJQLILFDQW YDULDEOHV LQ 63,% DQG 63, VFRUHV WKH VXEMHFWV ZHUH GLYLGHG LQWR WKUHH GLVFUHWH DJH JURXSV 7KRVH EHWZHHQ DQG LQFOXGLQJ WKH DJHV RI DQG FRPSULVHG RQH JURXS WR WKH VHFRQG JURXS DQG WR WKH WKLUG JURXS 7KH DJHV RI DQG ZHUH QRW UHSUHVHQWHG DV QR VXEMHFWV ZHUH RI WKDW DJH $QRWKHU GRPDLQ RI UHVHDUFK LQWHUHVW FRQVLVWHG RI VXEMHFWV IURP UXUDO ORFDWLRQV FRPSDUHG ZLWK WKRVH IURP XUEDQ ORFDWLRQV 6HYHQWHHQ RI WKH VXEMHFWV SHUFHQWf ZHUH IURP UXUDO DUHDV DQG RI WKH VXEMHFWV SHUFHQWf ZHUH IURP XUEDQ DUHDV 8UEDQ DUHDV ZHUH DUELWUDULO\ GHVLJn QDWHG DV WKRVH ZLWK SRSXODWLRQV H[FHHGLQJ 5XUDO DUHDV ZHUH DUELWUDULO\ GHVLJQDWHG DV WKRVH ZLWK SRSXODWLRQV RI OHVV WKDQ )LQDOO\ PHDQ VFRUHV RI HDFK RI WKH QLQH VXEWHVWV RI WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ ZHUH DQDO\]HG LQ DQ HIIRUW WR GHWHUn PLQH ZKHWKHU VLJQLILFDQW PHDQ GLIIHUHQFHV RFFXUUHG DPRQJ DJH JURXS HPSOR\PHQW VWDWXV RU ORFDWLRQ YDULDEOHV 5HJDUGLQJ WKH EDVLF FRPSRVLWLRQ RI WKH RYHUDOO 63,% GDWD DQ DQDO\VLV RI YDULDQFH ZDV UXQ DQG QR VLJQLILFDQW GLIIHUHQFHV ) f ZHUH IRXQG DPRQJ PHDQ VFRUHV IRU PDLQ HIIHFWV WZRZD\ LQWHUDFWLRQV RU WKUHHZD\ LQWHUDFWLRQV VHH $SSHQGL[ 'f +RZHYHU WKH WZRZD\ LQWHUDFWLRQ RI (PSOR\PHQW 6WDWXV ; /RFDWLRQ FDPH H[WUHPHO\ GRVW DW ) 7KXV DW ) WKLV GLIIHUHQFH ZRXOG EH VLJQLILFDQW $V GHSLFWHG E\ WKH WDEOH EHORZ WKH JUHDWHVW PHDQ GLIIHUHQFH RFFXUUHG EHWZHHQ UXUDO HPSOR\HG DQG UXUDO XQHPSOR\HG WKH IRUPHU RXWVFRULQJ

PAGE 79

WKH ODWWHU E\ RYHU 63,% SRLQWV ,Q FRQWUDVW WKH XUEDQ HPSOR\HG DQG XQHPSOR\HG DFKLHYHG QHDUO\ LGHQWLFDO PHDQ VFRUHV $QRWKHU LQWHUHVWLQJ ILQGLQJ IURP WKLV LQWHUDFWLRQ LV WKH ODUJH GLIIHUHQFH LQ PHDQ VFRUH EHWZHHQ WKH XUEDQ ORZHUf DQG UXUDO KLJKHUf HPSOR\HG ,Q IDFW WKH UXUDO HPSOR\HG VWDQG DOPRVW 63,% SRLQWV DERYH DQ\ RI WKH RWKHU WKUHH FDWHJRULHV $OWKRXJK DQDO\VHV RI YDULDQFH ZHUH QRW SHUIRUPHG IRU JURXSV ZKHQ LVRODWHG IRU ORFDWLRQ ODUJH GLIIHUHQFHV ZHUH VHHQ IRU ERWK WKH UXUDO DQG WKH XUEDQ VDPSOHV 7KH LQWHUDFWLRQ RI GLVFUHWH DJH JURXSV DQG HPSOR\PHQW VWDWXV YDULDEOHV VKRZQ LQ 7DEOH LQGLFDWHG ZLGH GLVn FUHSDQFLHV IDYRULQJ HPSOR\HG VXEMHFWV LQ WKH UXUDO JURXSLQJ 7KH WZR \RXQJHU DJH JURXSV f H[KLELWHG RYHU 63,% SRLQW GLIIHUHQFHV IDYRULQJ WKRVH HPSOR\HG 1R FRPSDULVRQ FRXOG EH PDGH ZLWK WKRVH LQ WKH DQG RYHU DJH JURXS DV LW FRQWDLQHG QR XQHPSOR\HG PHPEHUV $ ZLGH UDQJH RI PHDQ 63,% SRLQWV ZDV DFKLHYHG LQ WKH XUEDQ JURXS VKRZLQJ QR SDWWHUQ ZKDWVRHYHU 7KH \RXQJHVW JURXS f RI XQn HPSOR\HG DQG ROGHVW JURXS f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

PAGE 80

7DEOH 0HDQ 63,% 6FRUHV (PSOR\PHQW 6WDWXV ; /RFDWLRQ 5XUDO 1R 8UEDQ 1R 8QHPSOR\HG f f (PSOR\HG f f 7DEOH 0HDQ 63,% 6FRUHV 'LVFUHWH 5XUDO DQG 8UEDQ 6XEJURXSLQJV $JH 8QHPSOR\HG 1R (PSOR\HG 1R f f IO f f 2W/ f f f f & UR MD f f =' f f

PAGE 81

7DEOH 63,% 6XEWHVW %XGJHWLQJ 5XUDO 1R 8UEDQ 1R f f f f f f 7DEOH 63,% 6XEWHVW +RPH 0DQDJHPHQW 5XUDO 1R 8UEDQ 1R 8QHPSOR\HG f f (PSOR\HG f f

PAGE 82

VLJQLILFDQW GLIIHUHQFHV DPRQJ WKHLU PHDQ VFRUHV 7KH DQDO\VLV RI YDULDQFH RI WKH VL[WK VXEWHVW KRPH PDQDJHPHQW UHVXOWHG LQ D VLJQLILFDQW ) RI IRU WKH LQWHUDFWLRQ EHWZHHQ (PSOR\PHQW 6WDWXV DQG /RFDWLRQ VHH 7DEOH f 7KH PDMRU GLVFUHSDQF\ LQ WKLV VXEWHVW ZDV EHWZHHQ WKH UXUDO XQHPSOR\HG DQG HPSOR\HG 7KH XUEDQ VFRUHV ZHUH DSSUR[LPDWHO\ WKH VDPH ,Q WKH DQDO\VLV RI YDULDQFH UXQ IRU WKH VHYHQWK VXEWHVW KHDOWK FDUH D VLJQLILFDQW ) RI ZDV IRXQG IRU WKH LQWHUDFWLRQ EHWZHHQ (PSOR\PHQW 6WDWXV DQG /RFDWLRQ VHH 7DEOH f 6LPLODU WR WKH VLWXDn WLRQ IRXQG ZLWK WKH SUHYLRXV VXEWHVW RI +RPH 0DQDJHPHQW WKH UXUDO XQHPSOR\HG VFRUHG VLJQLILFDQWO\ ORZHU WKDQ WKH UXUDO HPSOR\HG ZKLOH ERWK XQHPSOR\HG DQG HPSOR\HG XUEDQ VXEMHFWV UHFHLYHG QHDUO\ LGHQWLFDO PHDQ VFRUHV 7DEOH 63,% 6XEWHVW +HDOWK &DUH 5XUDO 1R 8UEDQ 1R 8QHPSOR\HG (PSOR\HG f f f f

PAGE 83

&RQWLQXLQJ WKH WUHQG RI WKH PRVW UHFHQW WZR VXEWHVWV WKH HLJKWK VXEWHVW WKDW RI +\JLHQH DQG *URRPLQJ DJDLQ UHYHDOHG D PDMRU GLVFUHSDQF\ EHWZHHQ WKH XQHPSOR\HG DQG HPSOR\HG UXUDO VXEMHFWV ZLWK OLWWOH RU QR PHDQ VFRUH GLIIHUHQFH EHWZHHQ XUEDQLWHV )RU WKLV VXEWHVW D VLJQLILFDQW ) RI ZDV GHWHUPLQHG 7DEOH 63,% 6XEWHVW +\JLHQH DQG *URRPLQJ 5XUDO 1R 8UEDQ 1R 8QHPSOR\HG f f (PSOR\HG f f 7KH ILQDO VXEWHVW )XQFWLRQDO 6LJQV GHPRQVWUDWHG QR VLJQLILFDQW GLIIHUHQFHV DPRQJ YDULDEOHV ZKHQ DQ DQDO\VLV RI YDULDQFH ZDV SHUn IRUPHG RQ LW $Q DQDO\VLV RI YDULDQFH ZDV SHUIRUPHG RQ PHDQ VFRUHV IURP WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ VHH $SSHQGL[ 'f $ VLJQLILFDQW ) f ZDV GHWHUPLQHG IRU WKH 'LVFUHWH $JH *URXSV YDULDEOH IRU WKH PDLQ HIIHFWV $V LV HYLGHQW IURP 7DEOH VXEMHFWV LQ WKH WR DJH JURXSLQJ VFRUHG VLJQLILFDQWO\ ORZHU WKDQ \RXQJHU VXEMHFWV RQ WKLV PHDVXUH RI VHOIFRQFHSW :KHQ GLYLGHG LQWR GLVFUHWH JURXSV E\ ORFDn WLRQ WKH UHDVRQV IRU WKLV GLIIHUHQFH EHFRPH FOHDUHU 1R XQHPSOR\HG UXUDO VXEMHFWV EHWZHHQ WKH DJHV RI DQG ZHUH WHVWHG 7KHUHIRUH RQO\ WKUHH RYHU JURXSV ZHUH DYDLODEOH IRU H[DPLQDWLRQ 2I WKRVH

PAGE 84

7DEOH 6HOI3HUFHSWLRQ ,QYHQWRU\ 'LVFUHWH $JH *URXSV $JH 0HDQ 63, 6FRUH 1R f f f 0HDQ 63, 6FRUHV 7DEOH 'LVFUHWH 5XUDO DQG 8UEDQ 6XEJURXSLQJV $JH 8QHPSOR\HG 1R (PSOR\HG 1R f f DV f f 2n f f f f DV -' f f f f

PAGE 85

WKH XQHPSOR\HG XUEDQ VDPSOH H[KLELWHG D PHDQ 63, VFRUH RI ZKLFK SODFHG FRPIRUWDEO\ DERYH WKH PHDQ VFRUH RI WKH XQHPSOR\HG XUEDQ VXEMHFWV LQ WKH DJH JURXS +RZHYHU HPSOR\HG LQGLYLGXDOV LQ WKH RYHU DJH JURXS DFKLHYHG QHJDWLYH PHDQ VFRUHV ZKHWKHU WKH\ ZHUH IURP XUEDQ RU UXUDO DUHDV VHH 7DEOH f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n VRQV ZHUH WKHQ PDGH XVLQJ WKH YDULDEOHV RI GLVFUHWH DJH JURXSV DQG ORFDWLRQ ZKLFK LQ FRQMXQFWLRQ ZLWK HPSOR\PHQW VWDWXV EHFDPH WKH VXEMHFW RI D VHULHV RI DQDO\VHV RI YDULDQFH 6LJQLILFDQW ) ZDV DW WKH OHYHO $QDO\VHV RI YDULDQFH ZHUH DOVR SHUIRUPHG RQ HDFK RI WKH VXEWHVWV RI WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\

PAGE 86

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

PAGE 87

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f WXWRU ZKR ZDV DOVR D ORFDO $VVRFLDWLRQ IRU 5HWDUGHG &LWL]HQV RIILFHU +H ZDV D ODUJH PDQ UHVHPEOLUJ WKH VWHUHRW\SH RQH PLJKW KDYH RI D OXPEHUMDFN +LV PDQQHU ZDV DEUXSW DQG KH OHIW OLWWOH GRXEW WKDW KH ZDV XQFRPIRUWDEOH

PAGE 88

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n VWUDWHG OLWWOH XQGHUVWDQGLQJ RI HLWKHU WKH GLIIHUHQFH EHWZHHQ OX[XULHV DQG QHFHVVLWLHV IRU WKH FRQVXPHU RU WKH VNLOOV LQYROYHG LQ FKHFN ZULWLQJ +LV PDUULHG VWDWXV ZDV UHIOHFWHG LQ KLV KRPH PDQDJHPHQW VNLOOV ZKHUH NLWFKHQUHODWHG LWHPV ZHUH WKH PRVW GHILFLHQW ,Q WKH +HDOWK &DUH VHFWLRQ RQH RI WKH TXHVWLRQV PD\ KDYH EHHQ LQn DSSURSULDWH LQ %HQnV FDVH +H GLG QRW WKLQN WKDW WKUHH RU IRXU EHHUV ZRXOG DIIHFW RQHnV GULYLQJ DELOLW\ %HQ ZKR LV DSSUR[LPDWHO\ f LQ KHLJKW DQG ZHLJKV LQ WKH QHLJKERUKRRG RI SRXQGV PD\ LQGHHG EH OLWWOH DIIHFWHG E\ WKH b DOFRKRO EHHU EUHZHG E\ ODZ LQ .DQVDV %HQnV VHOIFRQFHSW DSSHDUHG WR EH TXLWH ORZ +H DGPLWWHG WR SRRU SHUIRUPDQFH LQ VFKRRO DV ZHOO DV DYHUVLRQ WR FKDQJH DQG VHOIn GRXEW $W WKH WLPH RI WKH WHVWLQJ KH ZDV \HDUV RI DJH $QRWKHU VXEMHFW WHVWHG LQ 1RUWRQ EXW RQ D GLIIHUHQW RFFDVLRQ WKDQ %HQ ZDV %DUW 6WRXIIHU %DUW ZDV SUHVHQWO\ XQHPSOR\HG DOWKRXJK KH KDG KHOG YDULRXV MREV IRU EULHI SHULRGV RI WLPH +H ZDV \HDUV RI DJH DQG D UHVLGHQW RI D JURXS OLYLQJ KRPH 8SRQ TXHVWLRQLQJ FRQFHUQLQJ KLV HPSOR\DELOLW\ ERWK KH DQG KLV KRXVHPRWKHU GLG QRW EHOLHYH KH FRXOG KROG D MRE +LV KRXVHPRWKHU GLG QRW IHHO WKDW

PAGE 89

LQWHOOLJHQFH ZDV D EDUULHU WR %DUWnV YRFDWLRQDO VXFFHVV ,QVWHDG VKH EODPHG ODFN RI ZRUN PRWLYDWLRQ $W WKH WHVWLQJ VHVVLRQ %DUW ZDV GUHVVHG FDVXDOO\ EXW KDG D ZHOOJURRPHG DSSHDUDQFH +H EHKDYHG LQ D IULHQGO\ RXWJRLQJ PDQQHU ZKLFK EHOLHG HYLGHQW VNLOOV LQ VRFLDO PDQLSXODWLRQ $W GLQQHU DW WKH ORFDO $ t : URRW EHHU VWDQG GHVSLWH SURWHVWV IURP WKLV UHVHDUFKHU DQG DQRWKHU VXEMHFW %DUW ZDONHG RYHU WR D GLQLQJ WUXFNHU DQG ERUURZHG D FLJDUHWWH $SSDUHQWO\ KH RIWHQ DVVXPHV WKLV PHGLFDQW UROH $OWKRXJK KH ZDV JDUEHG DSSURSULDWHO\ IRU WKH WHVWV KLV 63,% VFRUH IRU WKH +\JLHQH DQG *URRPLQJ VXEVHFWLRQ ZDV HDVLO\ KLV ORZHVW $ SRVVLEOH NH\ WR KLV SUHVHQW VWDWXV RI XQHPSOR\PHQW ZDV KLV DJUHHPHQW LQ WKH -RE 5HODWHG %HKDYLRU VXEVHFWLRQ WKDW RQH VKRXOG WHOO FXVWRPHUV RU YLVLWRUV DERXW SUREOHPV ZLWK RQHnV ERVV %DUW VKRZHG D VOLJKWO\ QHJDWLYH VHOIFRQFHSW RQ WKH 63, $OWKRXJK KH FRQVLGHUHG KLPVHOI VHOISLW\LQJ XQKDSS\ DQG IHDUIXO KH IHOW KH SRVVHVVHG WKH DELOLW\ WR EH YHU\ VHOIUHOLDQW 7KLV ZDV QRW FRQILUPHG E\ WKH REVHUYDWLRQV DW WKH $ t : /DUU\ $GDPV DW ZDV WKH \RXQJHVW VXEMHFW +H ZDV HPSOR\HG DW D FROOHJH FDIHWHULD DQG OLYLQJ DW KRPH ZLWK KLV IDPLO\ +LV DSSHDUDQFH ZDV VRPHZKDW GLVKHYHOHG DQG GXULQJ WKH FRXUVH RI WKH VHVVLRQ KH UHYHDOHG WKH UHDVRQ +H DQG VRPH IULHQGV KDG SDUWLHG DW RQH RI WKH IULHQGnV KRXVHV WKH QLJKW EHIRUH 7KH SDUW\ ZDV D OLYHO\ RQH ZLWK PXFK DOFRKROLF FRQVXPSWLRQ QR RWKHU GUXJ EHLQJ DGPLWWHG WRf /DUU\ KDG VWD\HG WKURXJK WKH QLJKW DQG KDG FRPH GLUHFWO\ WR WKH 6DWXUGD\ PRUQLQJ WHVWLQJ FRPSOHWH ZLWK D KDQJRYHU ,Q VSLWH RI WKLV KH ZDV DPLDEOH DQG MRNHG FDVXDOO\ 7KH LPSUHVVLRQ JLYHQ WKLV REVHUYHU ZDV WKDW WKH SK\VLFDO VXIIHULQJ /DUU\ ZDV QR HQGXULQJ ZDV

PAGE 90

PRUH WKDQ FRPSHQVDWHG IRU E\ KLV GHIDFWR LQLWLDWLRQ LQWR WKH ZRUOG RI WKH QRUPDO GHFDGHQW ,Q IDFW KH LQGXOJHG KLPVHOI LQ KLV KDQJn RYHU DV LI LW ZHUH D 5HG %DGJH RI &RXUDJH 2Q KLV 63,% WHVW KH VFRUHG XQLIRUPO\ ZLWK VXEWHVW H[WUHPHV RQO\ ILYH SRLQWV DSDUW $OWKRXJK /DUU\n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nV ZKRVH FHQWHUV RQO\ ZRXOG ILW LQ WKH DOORWWHG ER[HV +LV 6HOI3HUFHSWLRQ ,QYHQWRU\ UHVXOWV ZHUH VXUSULVLQJO\ SRVLWLYH LQ OLJKW RI &ODUNnV SURMHFWHG DWWLWXGH 6DP &RQUDG ZDV \HDUV RI DJH OLYLQJ LQ 3UDWW DQG HPSOR\HG E\ WKDW FLW\ LQVWDOOLQJ ZDWHU OLQHV $UULYLQJ RQ D )ULGD\ HYHQLQJ IRU WHVWLQJ KH ZDV GUHVVHG LQ GLUW\ RYHUDOOV DQG DGPLWWHG WKDW KH FDPH RQO\ EHFDXVH RI WKH SURPLVHG IUHH PHDO 'XULQJ WKH WHVWLQJ ZKLFK RFFXUUHG LQ D GLODSLGDWHG VFKRRO EXLOGLQJ LQ 3UDWW 6DP FRQVWDQWO\ PDGH LQVLGH MRNHV ZLWK DQRWKHU VXEMHFW +H DSSHDUHG WR EHDU LOO IHHOLQJV IRU EHLQJ UHPLQGHG RI KLV LQWHOOHFWXDO VWDWXV +H VFRUHG

PAGE 91

DPRQJ WKH KLJKHVW RI DOO WKH VXEMHFWV RQ ERWK WKH 63,% DQG WKH 63, 6DP SRVVHVVHG WKH WHFKQLFDO FKHFN ZULWLQJ VNLOOV EXW ZDV XQVXUH RI VRPH RI WKH LPSOLFDWLRQV RI NHHSLQJ D FKHFNLQJ DFFRXQW 2Q WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ KH JDYH KLPVHOI DOO WRS VFRUHV H[FHSW IRU WKUHH LWHPV (YHQ RQ WKRVH KH UDQNHG KLPVHOI SRVLWLYHO\ f 7HVWHG LQ /DZUHQFH ZDV 3KLO %XUQV ZKR ZRUNHG LQ WKH VDPH FROOHJH FDIHWHULD DV GLG /DUU\ $GDPV +H ZDV \HDUV RI DJH DQG OLYHG ZLWK KLV SDUHQWV +H KDG VWLOO QRW VHWWOHG RQ D GHVLJQDWHG QDPH DV KH DOWHUQDWHO\ VLJQHG KLV WHVW VKHHWV DV *HRUJH KLV PLGGOH QDPHf DQG 3KLO 2Q WKH 6DWXUGD\ KH ZDV WHVWHG 3KLO FDPH LQ ZRUN RYHUDOOV DV KH KDG EHHQ KHOSLQJ KLV IDWKHU SDLQW WKH KRXVH 7KURXJKn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

PAGE 92

DQG MRNHV DURXQG ZLWK KLV FRPSDWULRWV KLV PDQQHU LV QRW DEUDVLYH 2Q WKH GD\ KH ZDV WHVWHG 0RQWH ZDV QHDWO\ JURRPHG DQG FDUULHG DQ $IUR SLF LQ KLV EDFN SRFNHW +H VFRUHG KLJK RQ WKH 63,% 2Q WKH VXEWHVW RI %XGJHWLQJ 0RQWH PLVVHG DQ LWHP SRVVLEO\ EHFDXVH RI D FXOWXUDO GLIIHUHQFH +H DJUHHG WKDW KDOI RI ZKDW RQH VSHQGV HDFK PRQWK VKRXOG EH IRU FORWKHV $V QLFH FORWKHV KLJK D KLJK SULRULW\ LQ KLV FXOWXUH DQG EHFDXVH KH GLG QRW VSHQG KLV PRQH\ RQ UHQWDO ZKLOH OLYLQJ DW KRPHf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nV FRXQWU\ FOXE DV D EXVER\ ZDV WHUPLQDWHG EHFDXVH KH KDG EHHQ WRR JUHJDULRXV ZLWK SDWURQV DQG WKH RWKHU VWDII DQG DV D UHVXOW GLG QRW DFFRPSOLVK KLV WDVNV )UHGnV VFRUHV RQ WKH 63,% UHIOHFWHG DQ DOPRVW WRWDO ODFN RI DZDUHQHVV RI PRQH\ PDQDJHPHQW +LV ORZHVW VXEWHVW ZDV WKDW RI -RE 5HODWHG %HKDYLRU +LV VHOIFRQFHSW ZDV LQ WKH KLJK UDQJH

PAGE 93

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n SRVVLEOH DVVRFLDWLRQ ZLWK DGXOW DGMXVWPHQW VNLOOV DQG VHOISHUFHSWLRQ 6XPPDU\ $GXOW DGMXVWPHQW VNLOOV DQG VHOIFRQFHSWV ZHUH LQYHVWLJDWHG LQ HPSOR\HG DQG XQHPSOR\HG DGXOW PHQWDOO\ UHWDUGHG PDOHV $GXOW DGMXVWPHQW VNLOOV ZHUH GHWHUPLQHG WKURXJK DGPLQLVWUDWLRQ RI WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ DQG VHOIFRQFHSWV ZHUH

PAGE 94

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n VLGHUHG E\ VLJQLILFDQW RWKHUV WR EH FDSDEOH RI FRPSHWLWLYH HPSOR\n PHQW 7ZHQW\ RI WKH VXEMHFWV ZHUH SUHVHQWO\ FRPSHWLWLYHO\ HPSOR\HG DQG RI WKH VXEMHFWV ZHUH SUHVHQWO\ XQHPSOR\HG 'XULQJ D GD\ SHULRG EHWZHHQ PLG0D\ DQG PLG-XO\ RI VXEMHFWV ZHUH DGPLQLVWHUHG WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ +DOSHUQ HW DO f DQG WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ 6RDUHV t 6RDUHV f 'DWD IURP WKH DERYH OLVWHG LQVWUXPHQWV ZHUH FROOHFWHG DQG WUHDWHG ZLWK WZR VWDWLVWLFDO WHFKQLTXHV LH

PAGE 95

RQH ZD\ DQDO\VLV RI YDULDQFH DQG D )LVKHU ([DFW 7HVW XVHG IRU VPDOO PDUJLQDO IUHTXHQFLHV 7ZR SULPDU\ K\SRWKHVHV ZHUH GHVLJQHG WR GHWHUPLQH LI WKHUH ZHUH VLJQLILFDQW GLIIHUHQFHV DQG UHODWLRQVKLSV EHWZHHQ DGXOW DGMXVWPHQW VFRUHV DQG VHOIFRQFHSW VFRUHV RI HPSOR\HG DQG XQHPSOR\HG PHQWDOO\ UHWDUGHG PHQ EHWZHHQ WKH DJHV RI DQG 7ZR VHFRQGDU\ K\SRWKHVHV ZHUH GHVLJQHG WR GHWHUPLQH WKH SUREDELOLW\ RI DJUHHPHQW EHWZHHQ VXEMHFWV DQG VLJQLILFDQW RWKHUV ZKHQ TXHULHG DV WR WKH VXEMHFWVn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

PAGE 96

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f DQG XQHPSOR\HG 2Q WKH 63, DQDO\VLV QHJDWLYH VHOIFRQFHSWV RI HPSOR\HG PDOHV EHWZHHQ WKH DJHV RI DQG ZDV GLVFRYHUHG &RQHXVLRQV &RQFOXVLRQV RI WKH SUHVHQW VWXG\ ZHUH PDGH EDVHG RQ VWDWLVWLFDO DQDO\VLV RI GLIIHUHQFHV DQG UHODWLRQVKLSV EHWZHHQ HPSOR\HG DQG XQHPn SOR\HG PHQWDOO\ UHWDUGHG PDOHV EHWZHHQ WKH DJHV RI DQG 7KH IROORZLQJ FRQFOXVLRQV ZHUH PDGH DV WR WKH GHYHORSPHQW RI GLIIHUHQFHV DQG UHODWLRQVKLSV FRQFHUQLQJ GHSHQGHQW YDULDEOHV LQ WKH SUHVHQW VWXG\ +\SRWKHVLV VWDWHG WKDW WKHUH LV QR VLJQLILFDQW GLIIHUHQFH EHWZHHQ HPSOR\HG PHQWDOO\ UHWDUGHG DGXOWV DQG XQHPSOR\HG PHQWDOO\ UHWDUGHG DGXOWV LQ WKH DUHD RI DGXOW DGMXVWPHQW DV GHWHUPLQHG E\ D FRPSDULVRQ

PAGE 97

RI WKHLU PHDQ VFRUHV RQ WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ $Q\ GLIIHUHQFHV EHWZHHQ WKH WZR JURXSV RQ WKH PHDQ VFRUHV IRU WKH 63,% ZHUH DWWULEXWHG WR FKDQFH DQG WKHUHIRUH +\SRWKHVLV ZDV QRW UHMHFWHG +\SRWKHVLV VWDWHG WKDW WKHUH LV QR VLJQLILFDQW GLIIHUHQFH EHWZHHQ HPSOR\HG PHQWDOO\ UHWDUGHG DGXOWV DQG XQHPSOR\HG PHQWDOO\ UHWDUGHG DGXOWV LQ WKH DUHD RI VHOIFRQFHSW DV GHWHUPLQHG E\ D FRPSDULn VRQ RI WKHLU PHDQ VFRUHV RQ WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ $Q\ GLIIHUn HQFHV EHWZHHQ WKH WZR JURXSV RQ WKH PHDQ VFRUHV IRU WKH 63, ZHUH DWWULEXWHG WR FKDQFH DQG WKHUHIRUH +\SRWKHVLV ZDV QRW UHMHFWHG +\SRWKHVLV VWDWHG WKDW WKHUH LV QR UHODWLRQVKLS EHWZHHQ WKH UHVSRQVHV RI HPSOR\HG PHQWDOO\ UHWDUGHG DGXOWV DQG VLJQLILFDQW RWKHUV LQ WKHLU OLYHV UHJDUGLQJ WKHLU DGHTXDF\ RI HPSOR\PHQW %DVHG XSRQ VWDWLVWLFDO DQDO\VLV LW ZDV FRQFOXGHG WKDW WKH RFFXUUHQFH RI DJUHHPHQW RI UHVSRQVHV ZDV ODUJH HQRXJK WR QRW KDYH RFFXUUHG E\ FKDQFH DQG WKHUHIRUH +\SRWKHVLV ZDV UHMHFWHG +\SRWKHVLV VWDWHG WKDW WKHUH LV QR UHODWLRQVKLS EHWZHHQ WKH UHVSRQVHV RI XQHPSOR\HG PHQWDOO\ UHWDUGHG DGXOWV DQG VLJQLILFDQW RWKHUV LQ WKHLU OLYHV UHJDUGLQJ WKHLU HPSOR\DELOLW\ %DVHG XSRQ VWDWLVWLFDO DQDO\VLV LW ZDV FRQFOXGHG WKDW GLVFRUGDQFH LQ DJUHHPHQW ZDV WRR JUHDW WR KDYH RFFXUUHG E\ FKDQFH DQG WKHUHIRUH +\SRWKHVLV ZDV QRW UHMHFWHG *HQHUDO FRQFOXVLRQV ZHUH PDGH EDVHG RQ VWDWLVWLFDO DQDO\VHV RI GDWD FROOHFWHG RQ WKH VXEMHFWV LQ WKLV VWXG\ ,W ZDV FRQFOXGHG WKDW FRPSHWLWLYHO\ HPSOR\HG PHQWDOO\ UHWDUGHG PDOHV EHWZHHQ WKH DJHV RI DQG GLG QRW GLIIHU IURP XQHPSOR\HG PHQWDOO\ UHWDUGHG PDOHV ZLWKLQ WKH VDPH DJH UDQJH LQ DGXOW DGMXVWPHQW VNLOOV DV UHIOHFWHG

PAGE 98

E\ WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ $OWKRXJK WKH PHDQ VFRUH RI WKH HPSOR\HG JURXS ZDV JUHDWHU WKDQ WKH PHDQ VFRUH RI WKH XQHPSOR\HG JURXS WKH GLIIHUHQFH EHWZHHQ WKH PHDQV ZDV QRW ODUJH HQRXJK WR EH VLJQLILFDQW EH\RQG FKDQFH 7KHVH ILQGLQJV JLYH WKH SRVVLEOH LPSOLFDWLRQ WKDW WKH VWDWH RI HPSOR\PHQW ZLWK LWV DWWHQGDQW OHDUQLQJ H[SHULHQFHV DQG UHVSRQVLn ELOLWLHV GLG QRW UHVXOW LQ LPSURYHG DGXOW DGMXVWPHQW VNLOOV IRU WKRVH PHQWDOO\ UHWDUGHG LQGLYLGXDOV ZKR ZHUH HPSOR\HG $Q DOWHUQDWH LPSOLFDn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nV VHOIFRQFHSW $Q LQGLUHFW LPSOLFDWLRQ PD\ EH WKDW FRPSHWLWLYH HPSOR\PHQW LV QR ORQJHU FRQVLGHUHG WKH VLQH TXD QRQ LQ D PDOH LQGLYLGXDOnV UHSHUWRLUH 7KH WKLUG JHQHUDO FRQFOXVLRQ UHDFKHG ZDV WKDW WKH HPSOR\HG JURXS DQG WKHLU YHULILHUV FRQFXUUHG LQ WKHLU SHUFHSWLRQ RI WKH DGHTXDF\ RI WKH IRUPHUnV HPSOR\PHQW WR WKH H[WHQW WKDW VLJQLILFDQW

PAGE 99

GRXEW FRXOG EH UXOHG RXW 7KH IDFW WKDW WZR RI WKH WKUHH HPSOR\HG LQGLYLGXDOV ZKR H[SUHVVHG WKH IHHOLQJ WKDW WKHLU MREV ZHUH LQDGHTXDWH IRU WKHLU VNLOOV ZHUH LQ GLVDJUHHPHQW ZLWK WKHLU VLJQLILFDQW RWKHUV ZDV RIIVHW E\ WKH KLJK UDWH RI DJUHHPHQW EHWZHHQ WKRVH ZKR IHOW WKHLU MREV DGHTXDWH DQG WKHLU YHULILHUV 7KH IRXUWK JHQHUDO FRQFOXVLRQ UHDFKHG ZDV WKDW WKHUH ZDV VLJQLILFDQW URRP IRU GRXEWLQJ DJUHHPHQW EHWZHHQ XQHPSOR\HG LQGLYLn GXDOV DQG WKHLU YHULILHUV UHJDUGLQJ WKHLU HPSOR\DELOLW\ $V LQ WKH WKLUG K\SRWKHVLV WKH VPDOO QXPEHU RI QHJDWLYH UHVSRQVHV ZHUH RXWn QXPEHUHG E\ YHULILHU GLVDJUHHPHQWV +RZHYHU WKH WKUHH GLVDJUHHPHQWV DPRQJ WKH SRVLWLYH UHVSRQVHV FRPSDUHG WR RQO\ RQH GLVDJUHHPHQW DPRQJ WKH SRVLWLYH UHVSRQVHV LQ +\SRWKHVLV KDG D FULWLFDO HIIHFW RQ WKH RXWFRPH
PAGE 100

PHDVXUHG E\ WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ WKDQ WKRVH ZKR ZHUH XQHPSOR\HG ,Q WKH DQDO\VHV RI YDULDQFH SHUIRUPHG IRU HDFK RI WKH 63,% VXEn WHVWV VHYHUDO FRQFOXVLRQV ZHUH UHDFKHG )RU WKH PHDVXUHG VNLOO RI EXGJHWLQJ UXUDO VXEMHFWV LQ WKH DJH JURXS VKRZHG VLJQLILFDQWO\ OHVV DSWLWXGH WKDQ PHPEHUV RI DQ\ RI WKH RWKHU ILYH 'LVFUHWH $JH /RFDWLRQ JURXSV +RZHYHU DV WKH VL]H RI WKLV JURXS f ZDV RQO\ KDOI DV ODUJH DV WKH QH[W VPDOOHVW JURXS WKH TXHVWLRQ FRXOG EH UDLVHG FRQFHUQLQJ WKLV JURXSnV ULJKW WR UHSUHVHQW PHQWDOO\ UHWDUGHG UXUDO PHQ EHWZHHQ WKH DJHV RI DQG 7KH VXEWHVWV RI KRPH PDQDJHPHQW KHDOWK FDUH DQG K\JLHQH DQG JURRPLQJ IROORZHG UHPDUNn DEO\ VLPLODU SDWWHUQV LQ GHPRQVWUDWLQJ VLJQLILFDQW PHDQ GLIIHUHQFHV ZKHQ VXEMHFWHG WR DQDO\VHV RI YDULDQFH )RU HDFK RI WKH DERYH VXEn WHVWV XUEDQ VXEMHFWV DFKLHYHG QHDUO\ LGHQWLFDO VFRUHV ZKHQ WKRVH ZKR ZHUH HPSOR\HG ZHUH FRPSDUHG WR WKRVH ZKR ZHUH XQHPSOR\HG ,Q WKH VDPH VXEWHVWV WKH UXUDO HPSOR\HG VLJQLILFDQWO\ RXWGLVWDQFHG WKH UXUDO XQHPSOR\HG LQ HDFK FDVH 5HJDUGLQJ KRPH PDQDJHPHQW WKH VSHFXODWLRQ PD\ EH PDGH WKDW D PHQWDOO\ UHWDUGHG PDQ ZKR KROGV D MRE ZRXOG EH PRUH OLNHO\ WR OLYH LQGHSHQGHQWO\ HLWKHU LQ KLV SDUHQWn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

PAGE 101

VXEMHFWV +RZHYHU LQ HDFK FDVH WKH GLIIHUHQFHV DUH VPDOOHU WKDQ EHWZHHQ HPSOR\HG DQG XQHPSOR\HG UXUDO VXEMHFWV 7KH DQDO\VLV RI YDULDQFH SHUIRUPHG RQ WKH 6HOI3HUFHSWLRQ ,QYHQWRU\ UHVXOWHG LQ D VLJQLILFDQW GLIIHUHQFH DPRQJ WKH PHDQ VFRUHV RI WKH 'LVFUHWH $JH *URXSV ZKHQ FRPSDUHG IRU (PSOR\PHQW 6WDWXV 7KH DJH JURXS VFRUHG VLJQLILFDQWO\ ORZHU WKDQ HLWKHU RI WKH \RXQJHU DJH JURXSLQJV :KHQ WKLV ZDV EURNHQ GRZQ E\ ORFDWLRQ UXUDO DQG XUEDQf WKH REVHUYDWLRQ ZDV PDGH WKDW RQO\ WKUHH VXEJURXSV RI WKH DJH JURXS H[LVWHG DV WKHUH ZHUH QR XQHPSOR\HG UXUDO PHPEHUV RI WKH ROGHVW DJH JURXS 7KH RQO\ XQHPSOR\HG DJH JURXS UHPDLQLQJ XUEDQf VFRUHG ZLWKLQ WKH QRUPDO UDQJH RQ WKH 63, +RZHYHU ERWK UXUDO DQG XUEDQ HPSOR\HG PHPEHUV RI WKH DJH JURXS DFWXDOO\ KDG QHJDWLYH VHOISHUFHSWLRQ VFRUHV 2QH FRQFOXVLRQ DQ REVHUYHU PD\ UHDFK IURP WKLV GDWD LV WKDW D PHQWDOO\ UHWDUGHG PDQn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

PAGE 102

,W LV UHFRPPHQGHG WKDW D IXWXUH VWXG\ LQYHVWLJDWH UHODWLRQn VKLSV EHWZHHQ HPSOR\HG DQG XQHPSOR\HG PHQWDOO\ UHWDUGHG PHQ LQ WKHLU UHVSRQVHV WR WKH TXHVWLRQV RI DGHTXDF\ RI HPSOR\PHQW IRU WKRVH HPSOR\HG DQG HPSOR\DELOLW\ IRU WKRVH XQHPSOR\HG ,W LV UHFRPPHQGHG WKDW D IXWXUH VWXG\ LQYHVWLJDWH UHODWLRQn VKLSV EHWZHHQ DQG ZLWKLQ HPSOR\HG DQG XQHPSOR\HG PHQWDOO\ UHWDUGHG PHQ UHJDUGLQJ WKHLU VFRUHV RQ HDFK RI WKH VXEWHVWV RI WKH 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ UHODWLQJ WR VSHFLILF DGXOW DGMXVWPHQW VNLOOV VXFK DV EXGJHWLQJ DQG KRPH PDQDJHPHQW ,W LV UHFRPPHQGHG WKDW D IXWXUH VWXG\ LQYHVWLJDWH UHODn WLRQVKLSV EHWZHHQ UXUDO DQG XUEDQ EDVHG HPSOR\HG DQG XQHPSOR\HG PHQWDOO\ UHWDUGHG PHQ UHJDUGLQJ WKHLU DGXOW DGMXVWPHQW VNLOOV DQG VHOIFRQFHSWV ,W LV UHFRPPHQGHG WKDW IXWXUH LQYHVWLJDWLRQV RI DGXOW DGMXVWPHQW VNLOOV DQG VHOIFRQFHSWV RI PHQWDOO\ UHWDUGHG DGXOWV EH ODUJH HQRXJK WR LQFOXGH HPSOR\HG DQG XQHPSOR\HG ZRPHQ ZKR DUH QRW KRXVHZLYHV ,W LV UHFRPPHQGHG WKDW D IXWXUH VWXG\ LQYHVWLJDWH UHODWLRQn VKLSV EHWZHHQ GLVFUHWH DJH JURXSLQJV DPRQJ HPSOR\HG DQG XQHPSOR\HG PHQWDOO\ UHWDUGHG LQGLYLGXDOV

PAGE 103

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

PAGE 104

5HVSHFWLQJ WKH ULJKW WR FRQILGHQWLDOLW\ RI KDQGLFDSSHG FLWL]HQV UHTXHVW WKDW WKRVH DGXOWV LQWHUHVWHG LQ SDUWLFLSDn WLRQ LQ WKH DERYHPHQWLRQHG VWXG\ UHOHDVH WKHLU QDPHV WR PH IRU SHUVRQDO FRQWDFW 3DUWLFLSDWLRQ LQ WKH VWXG\ LV RI FRXUVH FRPSOHWHO\ YROXQWDU\ 1RQH RI WKH VXEMHFWV ZLOO KDYH WKHLU QDPHV GLYXOJHG LQ WKH ILQDO UHSRUW DP JUDWHIXO IRU DQ\ FRQVLGHUDWLRQ \RX PD\ JLYH WKLV PDWWHU 6LQFHUHO\ 0U -LP +HDQH\ ,QVWUXFWRU 6SHFLDO (GXFDWLRQ

PAGE 105

$33(1',; % 62&,$/ $1' 35(92&$7,21$/ ,1)250$7,21 %$77(5< 6DPSOH ,WHPV 7HVW 3XUFKDVLQJ +DELWV 1XPEHU ,W LV XVXDOO\ ZLVH WR FRPSDUH SULFHV EHIRUH EX\LQJ 1XPEHU 7KH QHVW ZD\ WR ILQG RXW KRZ PXFK VRPHWKLQJ FRVWV LV WR EX\ LW 1XPEHU $ 79 VHW WKDW FRVWV LQ RQH VWRUH PD\ FRVW OHVV LQ RWKHU VWRUHV 1XPEHU
PAGE 106

7HVW -RE 5HODWHG %HKDYLRU 1XPEHU
PAGE 107

7HVW +\JLHQH DQG *URRPLQJ •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

PAGE 108

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

PAGE 109

QR ULJKW RU ZURQJ DQVZHUVRQO\ DQVZHUV ZKLFK EHVW VKRZ \RX DV D SHUVRQ f DP PDVFXOLQH DP IHPLQLQH f f GRQnW PLQG GRQnW OLNH f FKDQJHV WKLQJV WR FKDQJH f VWLFN XS IRU JLYH XS f P\ ULJKWV HDVLO\ f WKLQN RI WKLQN RQO\ RI f RWKHUV P\VHOI f GR ZHOO LQ GR SRRUO\ LQ f VFKRRO ZRUN VFKRRO ZRUN f DP UHOD[HG DP QHUYRXV f f WKLQN EHIRUH GR WKLQJV ZLWK f GR DQ\WKLQJ RXW WKLQNLQJ f VWDQG RQ P\ JR DORQJ ZLWK f RZQ WZR IHHW WKH JDQJ f DP D KDSS\ DP QRW D KDSS\ f SHUVRQ SHUVRQ f FDQ ZDLW IRU ZDQW WKLQJV f WKLQJV ULJKW DZD\ ,' DP VXUH RI DP QRW VXUH ,' P\VHOI RI P\VHOI f PDNH IULHQGV GR QRW PDNH f HDVLO\ IULHQGV HDVLO\ f OLNH SHRSOH ILQG IDXOW f DV WKH\ DUH ZLWK SHRSOH f FDQ WDNH LW DP HDVLO\ KXUW f ZKHQ SHRSOH VD\ EDG WKLQJV WR PH ZKHQ SHRSOH VD\ EDG WKLQJV WR PH f WUXVW SHRSOH GRQnW WUXVW f SHRSOH f DP VDWLVILHG IHHO VRUU\ f ZLWK P\VHOI IRU P\VHOI

PAGE 110

f DP NLQG WR SHRSOH f DP QRW DIUDLG RI WKLQJV KXUW SHRSOH f DP DIUDLG RI f WKLQJV f OLNH WR ZRUN ZLWK RWKHUV GRQnW OLNH WR f ZRUN ZLWK RWKHUV f ,nP VRPHERG\ ,nP QRERG\ f 'LG \RX SXW D FKHFN RQ HDFK OLQH"f 6RDUHV t 6RDUHV f

PAGE 111

$33(1',; 5$: '$7$ 6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ 2YHUDOO 0HDQ 6FRUH 0HDQ 6FRUH E\ 'LVFUHWH $JH *URXS $JH 1R f f f 0HDQ 6FRUH E\ /RFDWLRQ 5XUDO 1R 8UEDQ 1R f f 0HDQ 6FRUH $JH 8QHPSOR\HG 1R (PSOR\HG 1R 'LVFUHWH $JH *URXS E\ (PSOR\PHQW 6WDWXV f f f f f f 0HDQ 6FRUH $JH 5XUDO 1R 8UEDQ 1R 'LVFUHWH $JH *URXS E\ /RFDWLRQ f f f f f f 0HDQ 6FRUH 5XUDO 1R 8UEDQ 1R (PSOR\PHQW 6WDWXV E\ /RFDWLRQ 8QHPSOR\HG f f (PSOR\HG f f

PAGE 112

6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ %\ /RFDWLRQ 5XUDO f 0HDQ 6FRUH 0HDQ 6FRUH 'LVFUHWH $JH $JH 8QHPSOR\HG 1R (PSOR\HG 1R *URXS E\ (PSOR\PHQW 6WDWXV f f f f f f 8UEDQ f 0HDQ 6FRUH 0HDQ 6FRUH 'LVFUHWH $JH $JH 8QHPSOR\HG 1R (PSOR\HG 1R *URXS E\ (PSOR\PHQW 6WDWXV f f f f f f

PAGE 113

6RFLDO DQG 3UHYRFDWLRQDO ,QIRUPDWLRQ %DWWHU\ $QDO\VLV RI 9DULDQFH 6RXUFH RI 9DULDWLRQ 6XP RI 6TXDUHV ') 0HDQ 6TXDUH ) 6LJQLILFDQFH RI ) 0DLQ (IIHFWV 'LVFUHWH $JH *URXSV (PSOR\PHQW 6WDWXV /RFDWLRQ 7ZR:D\ ,QWHUDFWLRQV 'LVFUHWH $JH *URXSV ; (PSOR\PHQW 6WDWXV 'LVFUHWH $JH *URXSV ; /RFDWLRQ (PSOR\PHQW 6WDWXV ; /RFDWLRQ 7KUHH:D\ ,QWHUDFWLRQV 'LVFUHWH $JH *URXSV ; (PSOR\PHQW 6WDWXV ; /RFDWLRQ ([SODLQHG 5HVLGXDO 7RWDO

PAGE 114

6HOI3HUFHSWLRQ ,QYHQWRU\ 0HDQ 6FRUH 0HDQ 6FRUH E\ 'LVFUHWH $JH *URXS $JH 1R f f f 0HDQ 6FRUH E\ /RFDWLRQ 5XUDO 1R 8UEDQ 1R f f 0HDQ 6FRUH 'LVFUHWH $JH $JH 8QHPSOR\HG 1R (PSOR\HG 1R *URXS E\ (PSOR\PHQW 6WDWXV f f f f f f 0HDQ 6FRUH 'LVFUHWH $JH $JH 5XUDO 1R 8UEDQ 1R *URXS E\ /RFDWLRQ f f f f f f 0HDQ 6FRUH (PSOR\PHQW 5XUDO 1R 8UEDQ 1R 6WDWXV E\ /RFDWLRQ 8QHPSOR\HG f f (PSOR\HG f f

PAGE 115

6HOI3HUFHSWLRQ ,QYHQWRU\ %\ /RFDWLRQ 5XUDO f 0HDQ 6FRUH 0HDQ 6FRUH 'LVFUHWH $JH *URXS $JH 8QHPSOR\HG 1R (PSOR\HG 1R E\ (PSOR\PHQW 6WDWXV f f f f f f 8UEDQ f 0HDQ 6FRUH 0HDQ 6FRUH 'LVFUHWH $JH *URXS $JH 8QHPSOR\HG 1R (PSOR\HG 1R E\ (PSOR\PHQW 6WDWXV f f f f f f

PAGE 116

6HOI3HUFHSWLRQ ,QYHQWRU\ $QDO\VLV RI 9DULDQFH 6RXUFH RI 9DULDWLRQ 6XP RI 6TXDUHV ') 0HDQ 6TXDUH ) 6LJQLILFDQFH RI ) 0DLQ (IIHFWV 'LVFUHWH $JH *URXSV (PSOR\PHQW 6WDWXV /RFDWLRQ 7ZR:D\ ,QWHUDFWLRQV 'LVFUHWH $JH *URXSV ; (PSOR\PHQW 6WDWXV 'LVFUHWH $JH *URXSV ; /RFDWLRQ (PSOR\PHQW 6WDWXV ; /RFDWLRQ 7KUHH:D\ ,QWHUDFWLRQV 'LVFUHWH $JH *URXSV ; (PSOR\PHQW 6WDWXV ; /RFDWLRQ ([SODLQHG 5HVLGXDO 7RWDO

PAGE 117

5()(5(1&(6 %DFKHU + 7KH HIIHFW RI VSHFLDO FODVV SODFHPHQW RQ WKH VHOI FRQFHSW VRFLDO DGMXVWPHQW DQG UHDGLQJ JURZWK RI VORZ OHDUQHUV 'RFWRUDO GLVVHUWDWLRQ 1HZ
PAGE 118

P %UROLQ ( 9RFDWLRQDO SUHSDUDWLRQ RI UHWDUGHG FLWL]HQV &ROXPEXV 2+ 0HUULOO %UROLQ ( t .RNDVND & &DUHHU HGXFDWLRQ IRU KDQGLFDSSHG FKLOGUHQ DQG \RXWK &ROXPEXV 2+ 0HUULOO %UROLQ ( t :ULJKW ,PSOHPHQWLQJ UHKDELOLWDWLRQ UHFRPPHQGDn WLRQV IRU WKH PHQWDOO\ UHWDUGHG $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ %URRNRYHU : % (ULFNVRQ ( / t -RLQHU / 0 6HOIFRQFHSW DQG DFKLHYHPHQW 9RO f 86 2IILFH RI (GXFDWLRQ &RRSHUDWLYH 5HVHDUFK 3URMHFW 1R (DVW /DQVLQJ 0LFKLJDQ 6WDWH 8QLYHUVLW\ %URZQ $ & 7KH VRFLDO SV\FKRORJ\ RI LQGXVWU\ %DOWLPRUH 0' 3HQJXLQ %XURV (Gf 7KH HLJKWK PHQWDO PHDVXUHPHQWV \HDUERRN +LJKODQG 3DUN 1*U\SKRQ 3UHVV %XWWHUILHOG ( & $ SURYRFDWLYH FDVH RI RYHUDFKLHYHPHQW E\ D PRQJRORLG $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ &DPSEHOO 7 t 6WDQOH\ & ([SHULPHQWDO DQG TXDVLH[SHULPHQWDO GHVLJQV IRU UHVHDUFK &KLFDJR 5DQG 0F1DOO\ &DUO\OH 7 3DVW DQG SUHVHQW 1HZ
PAGE 119

&RDNOH\ ) 6WXG\ RI IHHEOHPLQGHG ZDUGV HPSOR\HG LQ ZDU LQGXVWULHV $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ &RIIPDQ 7 / t +DUULV 0 & 7UDQVLWLRQ VKRFN DQG DGMXVWPHQWV RI PHQWDOO\ UHWDUGHG SHUVRQV 0HQWDO 5HWDUGDWLRQ f &ROOLQV + $ %XUJHU t .RKHUW\ 6HOIFRQFHSW RI (05 DQG QRQUHWDUGHG DGROHVFHQWV $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ A &RQUR\ : 7UHQGV LQ GHLQVWLWXWLRQDOL]DWLRQ RI WKH PHQWDOO\ UHWDUGHG 0HQWDO 5HWDUGDWLRQ f &RVWHOOR 0 :HOIDUH LQ $PHULFD DQG (XURSH (GLWRULDO 5HVHDUFK 5HSRUWV f &UDZIRUG / $LHOOR 5 t 7KRPSVRQ ( 'HLQVWLWXWLRQDOL]Dn WLRQ DQG FRPPXQLW\ SODFHPHQW &OLQLFDO DQG HQYLURQPHQWDO IDFWRUV 0HQWDO 5HWDUGDWLRQ Bf 'DUZLQ & 5 2ULJLQ RI VSHFLHV &KLFDJR +HQQHEHUU\ 'H*UD]LD 6 2I WLPH ZRUN DQG OHLVXUH 1HZ
PAGE 120

(GJHUWRQ 5 % 7KH FORDN RI FRPSHWHQFH 6WLJPD LQ WKH OLYHV RI WKH PHQWDOO\ UHWDUGHG %HUNHOH\ 8QLYHUVLW\ RI &DOLIRUQLD 3UHVV (GJHUWRQ 5 % t %HUFRYLFL 6 0 7KH FORDN RI FRPSHWHQFH
PAGE 121

*ROGVWHLQ + 0RVV : t -RUGDQ / 7KH HIILFDF\ RI VSHFLDO FODVV WUDLQLQJ RQ WKH GHYHORSPHQW RI PHQWDOO\ UHWDUGHG FKLOGUHQ 8UEDQD 8QLYHUVLW\ RI ,OOLQRLV ,QVWLWXWH IRU 5HVHDUFK RQ ([FHSWLRQDO &KLOGUHQ *RRGPDQ + *RWWOLHE t +DUULVRQ 5 + 6RFLDO DFFHSWDQFH RI (05V LQWHJUDWHG LQWR D QRQJUDGHG HOHPHQWDU\ VFKRRO $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ A *RRGZLQ / 'R WKH SRRU ZDQW WR ZRUN $ VRFLDOSV\FKRORJLFDO VWXG\ RI ZRUN RULHQWDWLRQV :DVKLQJWRQ '& 7KH %URRNLQJV ,QVWLWXWLRQ *RUORZ / %XWOHU $ t *XWKULH 0 &RUUHODWHV RI VHOIDWWLWXGHV RI UHWDUGDWHV $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ *RWWOLHE t %XGRII 0 6RFLDO DFFHSWDELOLW\ RI UHWDUGHG FKLOGUHQ LQ QRQJUDGHG VFKRROV GLIIHULQJ LQ DUFKLWHFWXUH $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ *URVVPDQ + (Gf 0DQXDO RQ WHUPLQRORJ\ DQG FODVVLILFDWLRQ LQ PHQWDO UHWDUGDWLRQ 5HY HGf $PHULFDQ $VVRFLDWLRQ RQ 0HQWDO 'HILFLHQF\ %DOWLPRUH *DUDPRQG3ULGHPDUN 3UHVV *XWPDQ + :RUN FXOWXUH DQG VRFLHW\ LQ LQGXVWULDOL]LQJ $PHULFD $PHULFDQ +LVWRULFDO 5HYLHZ A +DOSHUQ $ 6 *HQHUDO XQHPSOR\PHQW DQG YRFDWLRQDO RSSRUWXQLWLHV IRU (05 LQGLYLGXDOV $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ +DOSHUQ $ 6 $GROHVFHQWV DQG \RXQJ DGXOWV ([FHSWLRQDO &KLOGUHQ f +DOSHUQ $ 6 5DIIHOG 3 ,UYLQ / t /LQN 5 6RFLDO DQG SUH YRFDWLRQDO LQIRUPDWLRQ EDWWHU\ 0RQWHUH\ &$ &7%0F*UDZ +LOO +DUG\ + $ 7KH UHODWLRQVKLS EHWZHHQ VHOIDWWLWXGHV DQG SHUIRUPDQFH RQ D SDLUHGDVVRFLDWHV OHDUQLQJ WDVN LQ HGXFDEOH UHWDUGDWHV 'RFWRUDO GLVVHUWDWLRQ 8QLYHUVLW\ RI 2NODKRPD f 'LVVHUWDWLRQ $EVWUDFWV ,QWHUQDWLRQDO A 8QLYHUVLW\ 0LFURILOPV 1R f +DUULVRQ 5 + t %XGRII 0 $ IDFWRU DQDO\VLV RI WKH /DXUHOWRQ 6HOI&RQFHSW 6FDOH $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ +D\ZRRG + & (Gf 6RFLRFXOWXUDO DVSHFWV RI PHQWDO UHWDUGDWLRQ 1HZ
PAGE 122

+HDO / : 6LJHOPDQ & t 6ZLW]N\ + 1 5HVHDUFK RQ FRPPXQLW\ UHVLGHQWLDO DOWHUQDWLYHV IRU WKH PHQWDOO\ UHWDUGHG ,Q 1 5 (OOLV (Gf ,QWHUQDWLRQDO UHYLHZ RI UHVHDUFK LQ PHQWDO UHWDUGDWLRQ 9RO f 1HZ
PAGE 123

.HQQHG\ 5 $ &RQQHFWLFXW FRPPXQLW\ UHYLVLWHG $ VWXG\ RI WKH VRFLDO DGMXVWPHQW RI D JURXS RI PHQWDOO\ GHILFLHQW DGXOWV LQ DQG +DUWIRUG &RQQHFWLFXW 6WDWH 'HSDUWPHQW RI +HDOWK 2IILFH RI 0HQWDO 5HWDUGDWLRQ .HUOLQJHU ) 1 )RXQGDWLRQV RI EHKDYLRUDO UHVHDUFK 1HZ
PAGE 124

/LWWOH $ 1 t -RKQVRQ % 6 $ VWXG\ RI WKH VRFLDO DQG HFRQRPLF DGMXVWPHQW RI GLVFKDUJHG SDUROHHV IURP /DFRQLD 6WDWH 6FKRRO 3URFHHGLQJV RI WKH $VVRFLDWLRQ IRU WKH 6WXG\ RI WKH )HHEOHPLQGHG /XFDV & 0 t +RUURFNV ( $Q H[SHULPHQWDO DSSURDFK WR WKH DQDO\VLV RI DGROHVFHQW QHHGV &KLOG 'HYHORSPHQW 0DUWLQ : 7 6HOI SHUFHSWLRQ LQYHQWRU\ SV\FKRORJLVWV DQG HGXFDWRUV 1HZ
PAGE 125

2n7RROH (Gf :RUN DQG WKH TXDOLW\ RI OLIH &DPEULGJH 0$ 7KH 0DVVDFKXVHWWV ,QVWLWXWH RI 7HFKQRORJ\ 3UHVV 3HWHUVRQ / t 6PLWK / / 7KH SRVWVFKRRO DGMXVWPHQW RI HGXFDEOH PHQWDOO\ UHWDUGHG DGXOWV ZLWK WKDW RI DGXOWV RI QRUPDO LQWHOOLJHQFH ([FHSWLRQDO &KLOGUHQ = 3LDJHW 7KH RULJLQV RI LQWHOOLJHQFH LQ FKLOGUHQ QG HGf 1HZ
PAGE 126

6DO L t $PLU 3HUVRQDO IDFWRUV LQIOXHQFLQJ WKH UHWDUGHG SHUVRQnV VXFFHVV DW ZRUN $ UHSRUW IURP ,VUDHO $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ 6FKXUU 7 t %URRNRYHU : 7KH HIIHFW RI VSHFLDO FODVV SODFHn PHQW RQ WKH VHOIFRQFHSW RI DELOLW\ RI WKH HGXFDEOH PHQWDOO\ UHWDUGHG FKLOG (DVW /DQVLQT 0LFKLTDQ 6WDWH 8QLYHUVLW\ 6HLW] 6 t *HVNH 0RWKHUVn DQG JUDGXDWH WUDLQHHVn MXGJPHQWV RI FKLOGUHQ 6RPH HIIHFWV RI ODEHOLQJ $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ Af 6HYHUDQFH / t *DVVWURP / / (IIHFWV RI WKH ODEHO PHQWDOO\ UHWDUGHG RQ FDXVDO H[SODQDWLRQV IRU VXFFHVV DQG IDLOXUH RXWFRPHV $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ f 6LSHUVWHLQ 1 t *RWWOLHE 3DUHQWVn DQG WHDFKHUVn DWWLWXGHV WRZDUG PLOGO\ DQG VHYHUHO\ UHWDUGHG FKLOGUHQ 0HQWDO 5HWDUGDWLRQ f 6Q\GHU 5 7 3HUVRQDOLW\ DGMXVWPHQW VHOI DWWLWXGHV DQG DQ[LHW\ GLIIHUHQFHV LQ UHWDUGHG DGROHVFHQWV $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ B 6RDUHV / 0 t 6RDUHV $ 7 6HOISHUFHSWLRQ LQYHQWRU\ 1HZ
PAGE 127

7RZQH 5 & -RLQHU / 0 t 6FKXUU 7 7KH HIIHFW RI VSHFLDO FODVV SODFHPHQW RQ WKH VHOIFRQFHSW RI DFDGHPLF DELOLW\ RI WKH PHQWDOO\ UHWDUGHG 3DSHU SUHVHQWHG DW PHHWLQJV RI WKH &RXQFLO IRU ([FHSWLRQDO &KLOGUHQ 6W /RXLV 7ULSSL 0LFKDHO 5 &RODR $ ; $OYDUH] $ +RXVLQJ GLVn FULPLQDWLRQ WRZDUG PHQWDOO\ UHWDUGHG SHUVRQV ([FHSWLRQDO &KLOGUHQ f :DHWMHQ : % 6HOIFRQFHSW DV D OHDUQHU VFDOH %RVWRQ $XWKRU :HEVWHUnV 1HZ &ROOHJLDWH 'LFWLRQDU\ 6SULQJILHOG 0$ t & 0HUULDP :HQULFK 5 & t :HQULFK : /HDGHUVKLS LQ DGPLQLVWUDWLRQ RI YRFDWLRQDO DQG WHFKQLFDO HGXFDWLRQ &ROXPEXV 2+ 0HUULOO :LOOHPVHQ ( : 8QGHUVWDQGLQJ VWDWLVWLFDO UHDVRQLQJ 6DQ )UDQFLVFR : + )UHHPDQ :LQGOH & 6WHZDUW ( t %URZQ 6 5HDVRQV IRU FRPPXQLW\ IDLOXUH RI UHOHDVHG SDWLHQWV $PHULFDQ -RXUQDO RI 0HQWDO 'HILFLHQF\ :LQN & ) 0HQWDO UHWDUGDWLRQ DQG OHDUQLQJ XQGHU V\PEROLF UHLQIRUFHn PHQW LQ YLHZ RI VHOIDFFHSWDQFH 'RFWRUDO GLVVHUWDWLRQ 3HQQV\OYDQLD 6WDWH 8QLYHUVLW\ f 'LVVHUWDWLRQ $EVWUDFWV ,QWHUQDWLRQDO 8QLYHUVLW\ 0LFURILOPV 1R f :ROIHQVEHUJHU : &RXQVHOLQJ WKH SDUHQWV RI WKH UHWDUGHG ,Q $ $ %DXPHLVWHU (Gf 0HQWDO UHWDUGDWLRQ $SSUDLVDO HGXFDWLRQ DQG UHKDELOLWDWLRQ &KLFDJR $OGLQH

PAGE 128

%,2*5$3+,&$/ 6.(7&+ -DPHV %HUQDUG +HDQH\ ZDV ERUQ LQ -DFNVRQYLOOH )ORULGD RQ 0D\ +H DWWHQGHG ORFDO SDURFKLDO VFKRROV DQG HYHQWXDOO\ JUDGXDWHG IURP KLJK VFKRRO DW 6W /HR &ROOHJH 3UHSDUDWRU\ 6FKRRO LQ 6W /HR )ORULGD LQ +H HQUROOHG DW WKH 8QLYHUVLW\ RI 1RWUH 'DPH ZKHUH KH REWDLQHG D %DFKHORU RI $UWV GHJUHH LQ VRFLRORJ\ LQ $IWHU WZR \HDUV ZLWK WKH 3HDFH &RUSV LQ /LEHULD :HVW $IULFD KH HQJDJHG LQ YDULRXV W\SHV RI HGXFDWLRQDO HPSOR\PHQW ZLWK WKH 3LWWVEXUJK 3HQQV\OYDQLD%RDUG RI (GXFDWLRQ ,Q KH UHFHLYHG D 0DVWHU RI $UWV GHJUHH LQ $IULFDQ DIIDLUV IURP 'XTXHVQH 8QLYHUVLW\ 8SRQ UHWXUQLQJ IURP D VHFRQG 3HDFH &RUSV WRXU WKLV WLPH LQ =DLUH &HQWUDO $IULFD KH HPEDUNHG RQ D FDUHHU LQ VSHFLDO HGXFDWLRQ )LUVW KH GLUHFWHG DQ DGXOW DFWLYLW\ FHQWHU IRU VHYHUHO\ UHWDUGHG DGXOWV LQ -DFNVRQYLOOH )ORULGD 7KHQ KH WDXJKW WUDLQDEOH PHQWDOO\ UHWDUGHG VWXGHQWV DW ERWK WKH SUHYRFDWLRQDO DQG ZRUNVWXG\ OHYHOV LQ WKH ORFDO SXEOLF VFKRRO V\VWHP ,Q DGGLWLRQ KH WXWRUHG DQG VHUYHG DV D ZHHNHQG KRXVHSDUHQW DW VHYHUDO JURXS OLYLQJ KRPHV LQ -DFNVRQYLOOH :KLOH HPSOR\HG LQ WKHVH SRVLWLRQV KH SXUVXHG D 0DVWHU RI $UWV GHJUHH LQ VSHFLDO HGXFDWLRQ DW WKH 8QLYHUVLW\ RI 1RUWK )ORULGD ZKLFK KH REWDLQHG LQ :KLOH ZRUNLQJ RQ KLV GRFWRUDWH LQ VSHFLDO HGXFDWLRQ DW WKH 8QLYHUVLW\ RI )ORULGD KH WUDLQHG VWXGHQWV WR EHFRPH SDUDSURIHVVLRQDOV LQ VSHFLDO HGXFDWLRQ DW 6DQWD )H &RPPXQLW\ &ROOHJH

PAGE 129

+H LV SUHVHQWO\ DQ LQVWUXFWRU LQ VSHFLDO HGXFDWLRQ DW )RUW +D\V 6WDWH 8QLYHUVLW\ LQ +D\V .DQVDV

PAGE 130

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

PAGE 131

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


xml version 1.0 encoding UTF-8
REPORT xmlns http:www.fcla.edudlsmddaitss xmlns:xsi http:www.w3.org2001XMLSchema-instance xsi:schemaLocation http:www.fcla.edudlsmddaitssdaitssReport.xsd
INGEST IEID E5ID2B98G_KV3SAR INGEST_TIME 2011-08-29T15:53:08Z PACKAGE AA00003452_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
FILES