Citation
The nature and sources of job satisfaction among school counselors in the American School Counselor Association

Material Information

Title:
The nature and sources of job satisfaction among school counselors in the American School Counselor Association
Creator:
Morgan, Georgiene B. E., 1957-
Publication Date:
Language:
English
Physical Description:
viii, 109 leaves : ; 28 cm.

Subjects

Subjects / Keywords:
Burnout ( jstor )
Counselor training ( jstor )
Employees ( jstor )
High schools ( jstor )
Job satisfaction ( jstor )
Professional schools ( jstor )
School counseling ( jstor )
School counselors ( jstor )
School surveys ( jstor )
Schools ( jstor )
Job satisfaction ( lcsh )
Student counselors ( lcsh )
Genre:
bibliography ( marcgt )
theses ( marcgt )
non-fiction ( marcgt )

Notes

Thesis:
Thesis (Ph. D.)--University of Florida, 1987.
Bibliography:
Includes bibliographical references (leaves 102-108).
General Note:
Typescript.
General Note:
Vita.
Statement of Responsibility:
by Georiene B.E. Morgan.

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:
000968178 ( ALEPH )
AEU3391 ( NOTIS )
17394356 ( OCLC )

Downloads

This item has the following downloads:


Full Text











THE NATURE AND SOURCES OF JOB SATISFACTION
AMONG SCHOOL COUNSELORS IN THE
AMERICAN SCHOOL COUNSELOR ASSOCIATION








By.

GEORGIENE B.E. MORGAN


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


UNIVERSITY OF FLORIDA


1987












ACKNOWLEDGEMENTS


It is impossible to acknowledge all the friends and

family members who provided support and encouragement during

the process of completing this study. However, several

people went beyond the call of duty/friendship and deserve

special mention.

Profoundest gratitude is extended to Dr. Margaret Fong-

Beyette, chairperson of my doctoral committee, who was most

inspiriting, compassionate, and challenging. One of the

most beneficial experiences of my educational career was to

observe the professional and personable manner in which she

guided this study. Additionally, appreciation is extended

to Drs. Robert Jester, Max Parker, and Al Smith whose timely

feedback and expert contributions helped to shape the

development and completion of this project. Special mention

must also be made of Dr. E. L. Tolbert who contributed many

practical suggestions at the inception of the study.

Very special commendation is due my husband, Cecil and

daughter, Jolande. They were constant sources of

inspiration and made many sacrifices to bring this project

to fruition. Other persons who contributed

significant moral support included my aunt, Verna Norman;

my mentor, Dr. Chuck Park; and friends, Drs. Rod McDavis and

Patricia Campbell.







Finally, heartfelt thanks are expressed to the hundreds

of school counselors who made this study possible by

responding to the surveys. Although they were very busy,

they took the time to help. Many school counselors also

offered words of encouragement and those were greatly

appreciated.

Again, I thank all the people who helped to make

this dream a reality!











































iii












TABLE OF CONTENTS

Page
ACKNOWLEDGEMENTS................................ ii

LIST OF TABLES.................................... vi

ABSTRACT.......................................... vii

CHAPTERS

I INTRODUCTION ............................... 1

Statement of the Problem................... 3
Purpose of the Study...... ................ 3
General Research Questions ................. 4
Need for the Study............................ 4
Rationale for Study........... .............. 10
Definition of Terms......................... 12

II LITERATURE REVIEW............ .............. 15

The Role of School Counselors.............. 15
Job Satisfaction Theories .................. 22
Job Satisfaction Research.................. 36
Job Satisfaction and Its Correlates........ 51
Summary.................................... 57

III METHODOLOGY ................................ 60

Population and Sample...................... 60
Instrumentation ............................ 62
Data Collection............................. 65
Pilot Study ................................. 65
Research Questions.......................... 67

IV RESULTS .................................... 69

Research Question 1.......................... 69
Research Question 2........ .............. 70
Research Question 3............ ............ 72
Research Question 4..................... ....... 77
Research Question 5......................... 78
Research Question 6......................... 78
Research Question 7...... .................. 80
Summary .................................... 81








V SUMMARY AND CONCLUSIONS.................... 84

Discussion of Results....................... 86
Limitations ................................ 92
Implications ............................... 94
Conclusions ................................ 99

REFERENCES....................................... 102

BIOGRAPHICAL SKETCH ............................... 109












LIST OF TABLES


Table Page

1 Description of sample................... 62

2 Sample Characteristics.................. 63

3 Sources of Job Satisfaction Reported
on the MSQ............................ 71

4 The 10 Most Satisfying Aspects of School
Counseling Listed by the Counselors.. 72

5 Source Tables for Analyses of School
Level Differences on Seven MSQ Scales 74

6 Means of the Seven Significant MSQ
Scales with Respect to School Levels. 75

7 A Comparison of the 10 Most
Dissatisfying Aspects of School
Counseling As Reported by Counselors
at Each School Level................. 77

8 Multiple Regression Summary of
Job Satisfaction Variables........... 79

9 Multiple Regression Summary of
Role Related Variables ............... 82













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



THE NATURE AND SOURCES OF JOB SATISFACTION AMONG
SCHOOL COUNSELORS IN THE
AMERICAN SCHOOL COUNSELOR ASSOCIATION

By

GEORGIENE B.E. MORGAN

August 1987

Chairperson: Dr. Margaret Fong-Beyette
Major Department: Counselor Education

This study was designed to determine the level and

sources of job satisfaction of school counselors and

the relationship between their job satisfaction and

variables such as school level. It was also designed to

learn if job satisfaction could be predicted from factors

such as tenure and sex.

Job satisfaction surveys were mailed to a random sample

of 1500 counselors in the American School Counselor

Association. After screening the 779 responses, 686 were

deemed usable and constituted the final sample. The survey

consisted of a personal and employment data section and the

Minnesota Satisfaction Questionnaire (MSQ). The MSQ

measured 20 sources of job satisfaction as well as general

job satisfaction.

Several statistical procedures were used to analyze the

data, including frequency distributions, Pearson's


vii








correlation technique, analyses of variance, and multiple

regression analyses. It was determined that (a) the school

counselors were moderately satisfied with their jobs;

(b) the school counselors were satisfied by intrinsic

factors such as achievement; (c) high school level

counselors experienced less satisfaction than those at the

elementary or middle/junior high school levels; (d) there

was a weak but statistically significant (p < .05) positive

relationship between age and job satisfaction but not

between salary and job satisfaction; and (e) job

expectations, job challenge, and counselors' perception of

the adequacy of their training were predictors of job

satisfaction.

It was observed that the school counselors had concerns

of role overload, ambiguity, and conflict. It was suggested

that the ASCA could help to promote satisfaction among school

counselors by intensifying its efforts of clarifying the

school counselors' role to the public. It was also

suggested that counselor educators, by developing realistic

training and continuing education programs, could help to

foster job satisfaction among school counselors.


viii


I












CHAPTER I
INTRODUCTION

Although Geist (1963) noted that very few professionals

were dissatisfied with or wanted to change their jobs,

today, after perusing many educational journals, one is apt

to conclude that this is not the case with school

counselors. For example, Wells and Ritter (1979) noted that

school counselors were suffering a loss of personal and

professional satisfaction due to their inability to meet the

needs of their students and school systems. Birashk and

Kazckowski (1984) observed that school counseling was, for

many, a mere stepping stone to bigger and better employment

prospects. When one considers these observations, the

result is a feeling of foreboding for the school counseling

profession.

School counseling is an "American phenomenon" (Wrenn,

1962) that began in the early part of the twentieth

century. As the profession grew, the American School

Counselor Association (ASCA) was formed (Herr, 1979) and

this organization is now regarded as the official "voice" of

the profession. In its role statement ("The Practice of

Guidance," 1981), the ASCA explained that the role of the

school counselor is to create a learning environment where

the psychological well-being of each student is developed

and promoted. To accomplish this, counselors perform the

functions of individual and group guidance, individual









and group counseling, and consultation with parents and

teachers. However, since the psychological needs of

students are related to their developmental stages,

school counselors at each educational level (i.e.,

elementary, middle/junior high, and senior high school)

perform interventions that are appropriate for each

student's developmental stage.

Although the ASCA has made an attempt to define the

school counselors' role, many argue that they are not

performing the duties for which they were trained. This

seems to be endemic to the counseling profession for, as Boy

and Pine (1980) noted, "the professional role envisioned and

internalized during counselor preparation seems inoperable

in the real world, and many counselors have become

personally and professionally discouraged" (p. 161).

Addressing the problems of school counselors,

Day and Sparacio (1980) hypothesized that several factors

were preventing them from performing duties consistent with

their training. These impediments include (a) the absence

of legal definitions of school counseling or a regulatory

body for the practice of school counseling; (b) the lack of

understanding on the part of parents, students, and other

school personnel of the competencies of the school

counselors; (c) inadequate and/or unrealistic school

counselor training; and (d) the failure of school counselors

to define their roles clearly. As a result of these

barriers to effective school counselor performance, Day and









Sparacio believed that school counselors were experiencing

dissatisfaction with their jobs.



Statement of the Problem

There is a common belief that there is a high level of

job dissatisfaction among school counselors and that this is

affecting their effectiveness in the schools (Wells &

Ritter, 1979). However, this view seems to be perpetuated

by many persons who are not currently involved in the

practice of school counseling and little has been done to

determine school counselors' views. Therefore, there exists

a need to determine school counselors' level of satisfaction

with their jobs.



Purpose of the Study

There is a paucity of empirical literature that takes a

comprehensive approach to describing the proportion of

school counselors who are satisfied with their careers as

well as the factors that contribute to their job

satisfaction. Therefore, data were gathered to describe

both the levels and sources of job satisfaction among school

counselors. Additionally, the relationships between job

satisfaction and variables such as grade level of school,

monthly salaries, and ages were examined.

Another purpose of the study was to determine if job

satisfaction could be predicted from factors such as

counselor-student ratios, tenure, and level of education.








General Research Questions

Seven general questions were addressed in this study:

1. What is the level of job satisfaction among school

counselors who are members of the American School Counselor

Association?

2. What are the sources of job satisfaction among

school counselors who are members of the American School

Counselor Association?

3. Are there differences in the sources of job

satisfaction among school counselors in elementary,

middle/junior high, and senior high schools?

4. Is school counselor satisfaction related to

personal variables such as age and monthly salaries?

5. Can school counselor job satisfaction be predicted

from variables such as level of employing school, sex,

level of education, school setting, control of

school, and involvement in professional organizations?

6. Can job satisfaction be predicted from factors

such as occupational and job tenure, counselor-student

ratios, percentage of time spent on specific duties

(e.g., counseling, consulting, and guidance) each week, and

school counselors' perceptions of the degree of job challenge,

adequacy of educational training, and job expectations?



Need for the Study

What are school counselors' perceptions of their jobs?

Are school counselors satisfied or dissatisfied with their

profession? A limited amount of empirical data is available










to answer these questions. The studies of school

counselors' reactions to their jobs can be separated

into three categories: studies of occupational burnout,

occupational stress, and job satisfaction.

Addressing the phenomenon of occupational burnout,

several authors have presented an alarming picture of

burnout among counselors (Boy & Pine, 1980; Savicki &

Cooley, 1982; Warnath & Shelton, 1976; Watkins, 1983; Welch,

Medeiros, & Tate, 1982). Although none of these writers

present data to support their observations, they have

contributed to the prevailing notion that a high level of

burnout is rampant among this professional group.

Additionally, although writers do not specifically address

school counselors, it has often been concluded that high

levels of burnout exist among school counselors since they

are in a "helping" profession. However, after reviewing

current research it was concluded that this view may be

overstated (Cummings & Nall, 1982, 1983; Lynch, 1981;

Pierson & Archambault, 1984).

In a national survey of the ASCA's members conducted by

Lynch (1981), 60% of the respondents indicated that they

were not very anxious. This study was conducted to

determine (a) sources of job stress, (b) activities used by

school counselors to reduce stress, and (c) physical and

mental health problems related to stress. In the study

stress was used synonymously with burnout and was

ascertained by a questionnaire developed by Lynch. Lynch









attributed the finding of low levels of school counselor

burnout to the facts that school counselors are not always

in as stressful situations as teachers and the school

counselors' training which prepared them for dealing with

stress. Although the results of the study suggested that

school counselors do not experience high levels of burnout,

it was not well documented and so its results must

be considered tentatively.

The findings of Pierson and Archambault (1984) were

consistent with those of Lynch (1981). Pierson and

Archambault observed that school counselors, like teachers

and other student personnel workers in Connecticut's public

schools, experienced only moderate levels of burnout and

role stress. To measure burnout, the Maslach Burnout

Inventory was used while the Role Questionnaire was used to

determine role stress. Of all the groups, school counselors

indicated the highest levels of role ambiguity on the Role

Questionnaire. This finding is also similar to that of Day

and Sparacio (1980) who indicated that the roles of

school counselors were not clear-cut. It should be noted,

however, that the Pierson and Archambault study was

regional, and so it may be limited in generalizability.

In another study of burnout, Cummings and Nall (1982)

sought to determine if school counselor burnout was

influenced by school administrators' leadership styles.

After surveying 300 randomly selected school counselors in

eastern Iowa, they found that those with administrators who

used authoritarian leadership styles tended to report higher










le-.-ls of burnout than did school counselors whose

administrators used a participative style of leadership.

Although this study may be helpful to administrators who

wanr to help school counselors avoid burnout, the validity

of these results is limited as burnout was determined by a

single question on the survey.

It has been noted that some investigations of

scchol counselors' reactions to their jobs are studies of

occupational stress. One such study was conducted by

Bucke, Moracco, and McEwen (1984), who surveyed 550 members

of the ASCA using the Counselor Occupational Stress Inventory.

The aim of this well-designed study was to determine the

factors that contributed to school counselors' job stress.

Six sources of stress were identified from reports of 410

respondents. These were (a) lack of decision-making

authority, (b) financial security, (c) nonprofessional

duties, (d) professional job overload, (e) school counselor-

teacher relationships, and (f) school counselor-principal

relationships. While this study did provide information

about sources of school counselor stress, it also gave

credence to the popular view that counseling is a very

stressful occupation because the authors did not report what

percentage of their sample was experiencing stress.

Therefore, it could be construed that all school counselors

in this study were suffering from stress. In extrapolating

from this, it could be perceived that all school counselors

are stressed.








In addition to examining occupational burnout and

stress among school counselors, some researchers have

conducted job satisfaction studies to investigate school

counselors reactions to their jobs. For example, Wiggins

(1984) found a significant relationship between job

satisfaction and congruence between school counselors'

personality codes on Holland's Vocational Preference

Inventory and the school counselors' occupational code (SIA)

in the Occupations Finder. Job satisfaction was measured by

the Task-Hygiene Job Satisfaction Blank (designed by

Wiggins) which was mailed to 200 school counselors in the

eastern states. Results from 123 respondents indicated a

moderate level of job satisfaction among school counselors

and that those with congruent Holland codes were more

satisfied than their counterparts with incongruent codes.

Although limited to a regional sample, this study lends

support to the belief that job satisfaction is an

interaction between the worker and the work environment.

Although the studies of school counselor burnout and

occupational stress are more abundant than job satisfaction

studies, they do not provide much information about school

counselors' reactions to their jobs. Additionally, the few

existing studies of school counselor satisfaction have used

varying measures of job satisfaction and regional samples in

addressing the topic. Hence, the results from these studies

are often contradictory and of questionable generalizability.

It should also be noted that existing studies tend to treat

school counselors as a homogenous group, disregarding










differences that may occur as a result of serving student

populations of differing age groups. Thus, there is a need

for comprehensive studies of job satisfaction among school

counselors.

One approach to a comprehensive study of job

satisfaction is to use a conceptual base upon which to build

the research questions. Therefore, the theory of work

adjustment (Dawis & Lofquist, 1984) was used to provide a

framework for this study of school counselor job

satisfaction. Dawis and Lofquist (1984) present the idea

that job satisfaction is the result of the interaction

between the requirements of both individuals and their work

environments. Individuals have certain needs or reinforcer

requirements that must be met by the work environment. When

this occurs, job satisfaction results, and is indicated by

an individual's tenure (i.e., choice to remain in the work

environment). In summary, "the probability that an

individual will voluntarily leave the work environment is

inversely related to the individual's satisfaction" (Dawis &

Lofquist, 1984, p. 60). An outgrowth of the theory of work

adjustment was the development of the Minnesota Satisfaction

Questionnaire (MSQ), developed by Weiss, Dawis, England, and

Lofquist in 1967 and revised in 1977. This instrument

measures individuals' satisfaction with aspects/facets of

their jobs as well as overall job satisfaction.








Rationale for Study

After reviewing the literature on school counselors'

reactions to their jobs it was concluded that many were

experiencing negative reactions to their jobs (e.g., Savicki

& Cooley, 1982; Warnath & Shelton, 1976). If so, school

counselors could be negative influences in the lives of

students and thus could impact negatively on students'

psychological development. Additionally, because job

dissatisfaction can be physically and psychologically

debilitating, it could result in high rates of job turnover

for school counselors, a result that also would be costly to

schools.

If the problem of high levels of job dissatisfaction,

exists among school counselors, principals and school

superintendents may want to take steps to ensure satisfying

environments for them. However, with little or no

empirical data, it is impossible to determine the extent of

the problem and the appropriate corrective steps necessary

to ameliorate it. This study therefore provides an

indication of not only the level of satisfaction among

school counselors, but also specific factors that contribute

to their satisfaction. This then might provide school

administrators with a base from which they can build

corrective and preventative strategies for promoting job

satisfaction among school counselors.

This study also has implications for career counseling,

school counselor education, and professional organizations.

In career counseling, clients are aided in the process of










matching their personal characteristics with those of

various jobs in order to determine a complementary

combination. By identifying the satisfying elements of the

school counselor's job, this study provides information

that will help potential school counselors to make more

realistic decisions about whether or not to become school

counselors.

For admission to their programs, school counselor

educators select and recruit students whom they believe will

be able to be satisfied and successful in school counseling.

Therefore, the more school counselor educators know about

the contributors to school counselors' satisfaction, the

better will be their selections. This study provides

school counselor educators and students with information to

facilitate their selection processes. Additionally, this

information can be incorporated into professional

development curricula to ensure that students are presented

with a realistic picture of school counseling and therefore

be forearmed with strategies to meet the demands of the

profession.

Since a function of professional organizations (e.g.,

the ASCA) is the promotion of the welfare of its members,

information from this study can be used by such

organizations to develop programs that promote job

satisfaction among their members.










Definition of Terms

Control of school refers to the source from which the

operating funds for the school are derived. Source of

control can be public (i.e., supported by local, county,

state, or federal government) or private (i.e., supported by

a nongovernmental agency, including religious organizations).

Counselor-student ratio is based on the number of

school counselors employed in a school and the total number

of students enrolled in that school. The ratio is computed

by dividing the number of school counselors by the number of

students.

Elementary school is an institution so designated by

the school counselor respondents. In this study, the

majority of respondents indicated a beginning grade of

kindergarten and ending grade of six for the elementary

schools in which they worked. However, in a few cases, an

upper grade limit of nine was reported.

Job challenge refers to the degree to which the job

presents opportunities for using problem-solving strategies

as opposed to merely performing routine tasks.

Job satisfaction is a sense of gratification which "is

the result of the worker's appraisal of the extent to which

the work environment fulfills the individual's needs" (Dawis

& Lofquist, 1984, p. 72). In this study, job satisfaction

was measured by the Minnesota Satisfaction Questionnaire.








Job tenure is the "time spent in a particular position"

(Dawis & Lofquist, 1984, p. 74). In this study, it was

measured in years.

Middle/junior high school is an institution so

designated by the school counselor respondents. In this

study, the majority of respondents indicated a beginning

grade of six and an ending grade of nine for the

middle/junior schools in which they worked. However, in a

few cases, a beginning grade level of kindergarten and an

ending grade level of 12 was reported.

Occupational tenure is the "time spent in a specific

occupation irrespective of organizational membership or

positions held" (Dawis & Lofquist, 1984, p.74). In this

study, it was measured in years.

Professional organization is any organization

comprised of individuals with similar professional

interests which serves to control and maintain standards of

performance within the profession, socialize newer members,

and promote the welfare of its members.

School counselor is an employee of a public or

private school whose main responsibilities are counseling,

consultation, guidance, and other related activities.

Senior high school is an institution so designated by

the school counselor respondent. In this study, the

majority of school counselors indicated a beginning grade of

nine and an ending grade of 12 for the senior high schools

in which they worked. However, in a few cases, there was a

lower limit of grade six.







14

Setting of school describes the size of the populace of

the city in which the school is located. In this study,

setting is referred to as urban (i.e., a city with

population of 2,500 or more) or rural (i.e., a city with

population of 2,499 or less) (U.S. Department of Commerce,

1982).

Sources of job satisfaction refer to school counselors'

needs requirements as indicated on the Minnesota

Satisfaction Questionnaire.













CHAPTER II
LITERATURE REVIEW

The review of literature related to this study is

presented in four sections in this chapter. The first

section is an examination of the role of school counselors.

The second section is a discussion of the theories of job

satisfaction. A review of job satisfaction research is

presented in the third section and the fourth contains a

description of conditions related to job satisfaction.



The Role of School Counselors

In 1950, James Conant, then president of Harvard

University, stated that "it would not be too much to say

that on the success or failure of our guidance program

hangs the success or failure of our system of public

education" (p. xi). More recently, this sentiment was

echoed by Herr (1984) who argued that in order for American

students to achieve excellence in school and the workplace,

attention must be focused on the "emotional, values, and

decision-making components that school counselors and

guidance processes contribute to the overall educational

mission" (p. 219). The fact that school counselors are

considered important school personnel was reflected in

the 1970 Gallup Poll (Elam, 1978) where 73% of all persons in

the national survey indicated that they believed that school

counselors were worth the added costs.







Why are school counselors considered to be such an integral

part of the educational system? This can be attributed to

the role they play in the nation's elementary, middle/junior,

and senior high schools. Here, the aim of each school

counselor is to serve the needs of the students and thereby

enhance each student's educational, vocational, and psycho-

social development ("Practice of Guidance," 1981). To

achieve this aim, school counselors perform several roles

and functions.

In the elementary school, the school counselor works with

parents and teachers to ensure that the students develop

positive attitudes toward school, self-esteem, good social

skills, and the like. Counselors also work with other

student personnel staff to identify and remediate students

with developmental deficiencies and handicaps ("Practice of'

Guidance," 1981).

In the upper elementary grades, students are introduced

to the relationship between educational choices and career

planning and this concept is further developed in middle or

junior high school. Counselors also help students to make

the transition from elementary to middle school, through

guidance activities. In consultations with teachers,

school counselors help to design curricula that will help the

students gain greater self-knowledge and understanding

("Practice of Guidance," 1981).

In high school, career guidance and counseling are of

paramount importance as students must make career decisions

in preparation for life beyond high school. As such, school








counselors assist students in assessing their interests,

abilities, and so forth and in using this information to make

educational and vocational plans. Counselors also work with

teachers and parents in the process of helping students over

the "adolescent hurdles" and to provide remediation for

students with emotional and vocational problems, along with

school psychologists and other members of the student

personnel team ("Practice of Guidance," 1981).

Although Herr (1984) and the American School Counselor

Association (ASCA) in its role statement ("Practice of

Guidance," 1981) asserted that school counselors by virtue

of the role they perform are assets to the educational

system, some critics challenge this view. For example,

Aubrey (1982) contended that "the work of school counselors

entails inordinate amounts of time in clerical and

administrative tasks that could just as easily be

accomplished by computers or paraprofessionals at a lower

cost" (p. 198). However, Whitham (1982) has suggested that

one reason for the school counselors' required load of

nonprofessional duties is the fact that the school counselor

role was never well defined and neither was the school

counselor's position in relationship to other positions in

the school system.

Responding to the the need for clarifying the school

counselor's role, the ASCA developed and refined position

statements concerning the role and function of school

counselors in elementary through postsecondary institutions,

during the 1970s. In 1981, the ASCA published a role statement









that incorporated all previous statements ("Practice of

Guidance," 1981). Presently, the ASCA works with principals at

the local and national levels to promote understanding of

and appreciation for the role of school counselors. It is

also the ASCA's goal to establish relationships with the

National Parent Teachers Association Council, the American

Federation of Teachers, and the National Educational

Association to help these groups to understand the unique

position of school counselors (Minkoff & Terres, 1985).

Another reason for school counselors' preponderance

with noncounseling activities was suggested by Thomas and

Myrick (1984), who noted that school counselors often report

that they "feel powerless in making decisions about their

roles and functions" (p. 3). On the other hand, Wells and

Ritter (1979) countered that school counselors need to

determine their own job roles and functions. Perhaps this

is more easily said than done for as Moore (1970) and Scott

(1966) explained, whenever professionals become employed

(rather than being self-employed), their professional

autonomy is often eroded.

Another problem that employee-professionals face is

role conflict (Moore, 1970). This occurs when there are

differences in the demands of the employer and the

employee's professional norms. In school counseling, the

conflict stems from the administrators' requirements of

nonprofessional activities (e.g., scheduling and maintaining

attendance records) (Day & Sparacio, 1980) and the school








counselors' loyalties to the practice of counseling,

consulting, and guidance. In cases where employees

experience conflicts between their employers and

professional beliefs, employees often rebel against the

employers since they believe that professional allegiance is

more important than loyalty to the employers (Scott, 1966).

As a whole, school counselors have not rebelled against

doing nonprofessional duties and this is probably due to the

fact that school counseling is still in the process of

professionalization and so school counselors are not fully

united.

According to Caplow (1966), the process of

professionalization involves four steps. These are

(a) establishment of a professional organization, (b) name

change, (c) development of a professional code of ethics,

and (d) political agitation. During the first step, the

group establishes a professional organization which has

membership criteria that exclude unqualified personnel. An

example of this is the American Medical Association which is

restricted to physicians ("American Medical Association,"

1954/1966). This is in contrast to the ASCA which includes,

in its membership, any person "engaged in activities having

an impact on a student's success and well being at school,

work, and home" (Minkoff & Terres, 1985, p. 426). This

open-ended membership policy could undermine the

professional status of the school counselor group.

The second step in the professionalization process is a

change of name. This step serves to reduce the








identification with the previous occupational status. The

change process is exemplified by the medical technologists,

who, prior to 1928, were called laboratory technicians.

However, as they organized into a professional group, they

realized that their former name vaguely described their

profession and so they developed a new and descriptive name

for their profession ("Medical Technology," 1966). School

counselors are often referred to as school guidance

counselors (e.g., Miller, 1983), but Aubrey (1982) argued

that guidance and counseling convey a plethora of meanings

and so are not descriptive of the school counseling

profession. In fact, Aubrey claimed that the use of the

terms guidance and counseling is a demonstration that the

profession lacks direction. Therefore, it seems that as

school counselors forge their professional identity, they

will need a name that more aptly describes their profession.

The next step in the process of professionalization is

the development of a code of ethics to guide the actions of

the members in the professional group. This step has been

accomplished by the ASCA and in its role statement ("Practice of

Guidance," 1981) school counselors were exhorted to be

guided by the "sound ethical practices for professional

counselors as embodied in the Ethical Standards of the

American Personnel and Guidance Association--American School

Counselor Association" (p. 12).

The final stage of professionalization is involvement

in political agitation. During this stage, the group's








objective is to gain public acceptance and to convince the

public of the need for recognizing this exclusive group of

professionals. To accomplish this, the professional group

usually sets admission and graduation standards for those

entering and graduating from their professional training

schools and establishes inviolable confidentiality

privileges. This step has not been fully mastered by school

counselors for although Minkoff and Terres (1985) indicated

that the ASCA has been and continues to be politically active,

Thomas and Myrick (1984) noted that school counselors were

generally perceived as being politically naive and

recommended that they take a more proactive stance in

determining their professional role and image. Thomas and

Myrick also indicated that school counselors felt a need for

more favorable recognition and support from the public, thus

indicating that school counseling as a profession has not

yet received full approval from the public.

The culmination or the final stage of the process of

professionalization is legislation prohibiting the people on

the outside of the professional group from practicing the

activities reserved for that profession. Presently, there

are no laws restricting the practice of school counseling to

school counselors. However, although school counseling has

not attained the apex of professionalization, this should

not be construed as a weakness of this group since the

process of professionalization can be a prolonged one.

For example, the American Medical Association, which has now

"attained a position of undeniable authority and influence








over medical affairs" ("American Medical Association,"

1954/1966, p. 169), has been in existence for over a century

while the ASCA is only 33-years-old.

It has been suggested here that school counselors have

not rebelled against their required nonprofessional duties

because they are not united by the bonds of a full

professional status. However, it could also be hypothesized

that the school counselors' inertia is due to their

satisfaction with their jobs as satisfied people have no

need to change the conditions of their jobs.



Job Satisfaction Theories

Locke (1969) advised researchers that "to explain job

satisfaction the first question a scientific

investigator must ask is not, 'How can I measure it?' but

rather, 'What is it?'" (p. 334). Following Locke's

admonition, this section is designed to provide an overview

of the study of job satisfaction and a review of the theory

of work adjustment (Dawis & Lofquist, 1984).



Traditional Theory

The earliest systematic study of job satisfaction has

been attributed to Robert Hoppock (Burr, 1980; Gruneberg,

1979), who believed that people's attitudes to their jobs

fell along a satisfaction-dissatisfaction continuum.

Hoppock (1935) believed that satisfaction occurred when

there was the presence of "any combination of psychological,








physiological, and environmental circumstances that cause a

person truthfully to say, 'I am satisfied with my job'" (p.

47). The absence of this combination resulted in

dissatisfaction and people who were neither satisfied nor

dissatisfied were thought to be indifferent to or uncertain

about their feelings toward their jobs. This view is

considered the traditional approach to the study of job

satisfaction and is concerned only with environmental or

work variables that affect job satisfaction.

Hoppock is also considered the forerunner in the use of

attitude surveys to measure job satisfaction. To measure

job satisfaction, Hoppock developed the Job Satisfaction

Blank which he first administered to teachers during the

1932-33 school year (Hoppock, 1935). The purpose of his

investigation was to determine if there were any

differences between satisfied and dissatisfied workers and

since he believed that there was no acceptable means of

measuring job satisfaction, he developed his own instrument.

The Job Satisfaction Blank No. 1 had 258 items. Items 2-12

asked for respondents' reactions to their jobs in general,

while items 13-258 sought to determine respondents' reactions

to various aspects of their jobs (e.g., supervisors, salary,

and working conditions). Responses to items 2-12 were used

to compute a job satisfaction index and Hoppock (1935)

reported a .87 split-half reliability coefficient (Spearman-

Brown formula) for the index. A split-half reliability

coefficient was also calculated for items 13-258 and this

was determined to be .83. However, when the satisfaction








index and the item score (score derived from items 13-258)

were compared, only a moderate correlation of .67 was found.

This is not surprising as the instrument is long and tedious

and respondents may have grown tired and probably responded

less carefully to the items.

In his research, Hoppock (1935) found that the

instrument discriminated between satisfied and dissatisfied

workers. For example, he found that the satisfied teachers

were more emotionally adjusted, older, and felt more

successful than the dissatisfied teachers. After the

initial work with teachers, Hoppock revised the Job

Satisfaction Blank and conducted studies among other working

populations. In 1933, the Job Satisfaction Blank No. 5 was

used to survey the adult population in New Hope,

Pennsylvania, and this version consisted of only 41 of the

original 258 items. Although Hoppock (1935) continued to

use attitude surveys in his research, he bemoaned the fact

that there was no "valid, objective measure" of job

satisfaction "which will be independent of subject's

willingness to tell the truth" (p. 272). This is definitely

a disadvantage in using attitude surveys. However, this

disadvantage is outweighed by the advantage for as Hoppock

(1935) noted, each employee "lives with himself all day and

every day, he experiences his own emotions; if they are

pleasant, he knows it; if they are unpleasant, no one needs

to tell him so" (p. 151). Although Hoppock made inroads

into the study of job satisfaction, his work has not been

unchallenged.










Herzberg's Theory

The most significant challenge to the traditional

theory came from Herzberg, who along with his colleagues,

developed the Herzberg's two-factor or motivation-hygiene

(M-H) theory of job attitudes (Carroll, 1973). This theory

was first published in 1959 by Herzberg, Mausner, and

Snyderman (Herzberg, 1966) who claimed that people had dual

natures. On one hand, they seek to avoid pain and on the

other, they seek to grow psychologically and these natures

affect their attitudes toward their jobs. Based on research

to test this claim, they concluded that people had two

distinct reactions to their jobs--job satisfaction and job

dissatisfaction. Job satisfaction promoted psychological

growth and was determined by achievement, recognition, work

itself, responsibility, and advancement. These satisfiers

were called motivators as they stimulate people to perform

better on the job. There are also five dissatisfiers or

pain producers and these were collectively referred to as

hygienes. The hygienes are company policy, administration,

supervision, salary, interpersonal relations, and working

conditions.

The biggest contention between the traditional and M-H

theories is that the M-H theory asserts that job

satisfaction and dissatisfaction are not on a continuum, but

rather two separate continue. Herzberg (1966) argued that

the "opposite of job satisfaction would not be job

dissatisfaction, but rather no job satisfaction; similarly,








the opposite of job dissatisfaction is no job

dissatisfaction, not satisfaction with one's job" (p. 76).

Herzberg (1966) claimed validity for his theory on the

basis of the research using the critical incident report

technique. This method involved asking employees to recount

an experience when they felt exceptionally good and another

when they felt exceptionally bad about their jobs. The

initial studies among 200 engineers and accountants in

Pittsburgh revealed that there were commonalities among the

satisfaction experiences and that these were quite different

from the commonalities of the dissatisfaction experiences.

The commonalities were then classified and these gave rise

to the notion that motivators were satisfiers and hygienes

were dissatisfiers. This theory has generated much

research, but often with results that provide conflicting

support for the theory (Carroll, 1973). This may be due to

the fact that studies which employ methods other than the

critical incident report technique have failed to support

Herzberg's theory (Locke, 1969).

Although Herzberg and Hoppock disagreed about the

relationship between job satisfaction and dissatisfaction,

both theorists have demonstrated that people's

reactions to their jobs are influenced by job and/or job

related factors. However, this view is considered

inadequate by some theorists, who believe that job

satisfaction is also influenced by personal characteristics

of the workers.








Person-Environment Congruency Model

According to Klein and Wiener (1977), there is a third

approach to the study of job satisfaction. This approach

considers not only the impact of job and job related factors

on employees' job satisfaction, but also considers

personality variables and so is called the person-

environment congruency model. Theorists using this model

believe that one or more of three elements influence job

satisfaction. These three elements are (a) people's needs

and the capacity of the work environment to meet those

needs, (b) people's vocational interests and job activities,

and (c) people's abilities and the skills demanded by the

job.

Two leading proponents of the first element are Locke

and Vroom, who, like Herzberg, believed that people have a

pleasure seeking-pain avoidance nature. Vroom (1964)

explained this behavior in terms of valences, in that if

individuals believe that a situation will result in a

pleasurable outcome, they will enter the situation and so

that situation is said to have a positive valence. On the

other hand, if a situation does not have an anticipated

appealing outcome, the situation will be avoided and so is

said to have a negative valence. Applying this to the work

situation, Vroom argued that if a job is satisfying, it has

a positive valence and if dissatisfying, it has a negative

valence.

In a similar vein, Locke (1969) stated that "job

satisfaction and dissatisfaction are a function of the










perceived relationship between what one wants from one's job

and what one perceives it as offering or entailing" (p. 316).

As such, job satisfaction is a pleasurable emotional state

which occurs when individuals' needs/wants are met and job

dissatisfaction occurs when the opposite occurs. Although

Vroom, Locke, and Herzberg ascribed to the notion of the

dualistic nature of people, Vroom and Locke did not believe

that two distinct conditions contribute to job satisfaction

and dissatisfaction, as did Herzberg. Instead, like the

traditional theorists, Vroom and Locke believed that any

work situation has the potential to be satisfying or

dissatisfying and added that satisfaction and

dissatisfaction are influenced by individuals' needs and

expectations, which develop from prior learning experiences.

Addressing the issue of the relationship between

vocational interests and job satisfaction, Hansen (1984),

indicated that the "correlations between interests scores and

rating of job satisfaction are low" (p. 122) and cited

studies with correlations ranging from .38 to .45. Hansen's

observation is not surprising as job satisfaction is

considered to be a function of a multiplicity of factors and

perhaps is better explained by a combination of two or three

elements of the person-environment congruency model, rather

than any one element. One theory which considers a

combination of elements--needs and abilities--is the theory

of work adjustment (Dawis & Lofquist, 1984).







Theoryof Work Adjustment

The theory of work adjustment can be classified as a

person-environment congruency model as it purports that work

adjustment is the result of a good match between the worker

and the job. This theory, as posited by Dawis and Lofquist

(1984), is based on the assumption that individuals seek to

maintain correspondence (a harmonious relationship) with

their environments (and work is a major environment with

which people must relate). Correspondence is achieved when

the individual fulfills the requirements of the work

environment satisfactorinesss) and the work environment

fulfills the requirements of the individual (satisfaction).

"The continuous and dynamic process by which the individual

seeks to achieve and maintain correspondence with the work

environment is called work adjustment" (Dawis & Lofquist,

1984, p. 55).

For satisfactoriness to occur, the work environment

requires that the worker perform certain tasks and follow

certain rules and norms of appropriate behaviors. These are

considered the ability requirements of the job. On the

other hand, for satisfaction to occur, the work environment

must provide reinforcers for (i.e., meet the needs of) the

employee. According to the theory of work adjustment, there

are 20 needs and these are ability utilization, achievement,

advancement, authority, company policies and practices,

compensation, co-workers, creativity, independence, moral

values, recognition, responsibility, security, social

service, social status, supervision-human relations,









supervision-technical, variety, working conditions, and

activity.

Whenever these needs are not met, the worker becomes

dissatisfied and may choose to leave the job or seek to

improve correspondence. The worker regains correspondence

either by changing the work environment (activeness) or

modifying his/her abilities, needs, and/or values

(reactiveness). Activeness and reactiveness are considered

to be adjustment modes, flexibility (the ability to

tolerate discorrespondence before taking steps to alleviate

the condition) determines when the modes are used, and

perseverance (the length of time an individual can tolerate

discorrespondence before leaving the job) determines how

long the worker will use the modes before quitting. Like

the employee, the supervisors in the work environment will

take action when the correspondence balance is threatened.

Here, the unsatisfactory worker may either be fired or

changes made in the work environment and/or the employee.

The developers of the theory of work adjustment

describe a homeostatic condition between individuals and

their work environments and Dawis and Lofquist (1984)

indicated that the theory can be used effectively in

counseling, especially career counseling. Lofquist and

Dawis (1984) also suggested that as a result of the career

counselors' concern for the individual client and the social

responsibility of the counselor to the client, career and

job satisfaction should be a primary goal and desired







outcome of career counseling. For this reason, much

attention has been paid to the satisfaction aspect of the

theory. However, prior to effecting career counseling

interventions, Dawis and Lofquist (1984) emphasized that

there is a need for assessment of the client's situation.

One such assessment tool is the Minnesota Satisfaction

Questionnaire (MSQ) which was developed to measure job

satisfaction. The MSQ was developed by Weiss, Dawis,

England, and Lofquist (1967) and provides an indication of

individuals' overall/general satisfaction with the job as

well as with 20 aspects or facets of the job. These facets

represent the 20 needs isted previously and are also called

scales.

The MSQ is a self-report questionnaire and is printed

in a long form (which has 100 items) and a short form (which

has 20 items). Respondents are asked to respond to each

item using a Likert scale ranging from very dissatisfied (1)

to very satisfied (5). Scores for each of the 20 scales on

the long form are derived by adding the scores from each of

five items pertaining to that scale and total scores can

range from 5 (very dissatisfied) to 25 (very satisfied).

The general satisfaction score (also considered the twenty-

first scale) is computed from 20 items (one from each of the

first 20 scales) and can range from 20 (very

dissatisfied) to 100 (very satisfied). The short form,

although based on sample items from the long form, yields

three scores--general, intrinsic, and extrinsic

satisfaction. However, the authors, Weiss, Dawis, England,








and Lofquist (1967), strongly recommended the use of the

long form over the short form as the long form provides more

information.

The Manual for the Minnesota Satisfaction Questionnaire

(Weiss, Dawis, England, & Lofquist, 1967) provides normative

data for 25 occupational groups including accountants,

elementary school teachers, and laborers as well as 355

employed disabled persons and 380 employed nondisabled

workers. Although the MSQ was not normed on public school

student personnel workers, Anderson, Hohenshil, and Brown

(1984) have used it to measure job satisfaction among

school psychologists.

Anderson, Hohenshil, and Brown (1984) modified the 1967

version of the MSQ to reduce the number of sexist and

industrial relevant terms. The reliability of the modified

items and their responses were determined using Cronbach's

alpha and these yielded reliability coefficients of .738

to .937 for the items and .973 for the responses.

Additionally, chi square analysis was used to determine the

concurrent validity of the modified MSQ by comparing

respondents' general satisfaction scores on the MSQ with

their responses on a data form. This analysis yielded a chi

square of 7.85 which was significant at the .001 level.

Weiss et al. (1967) also calculated Hoyt reliability

coefficients for each of the 20 scales and found values

ranging from .97 for ability utilization to .59 for the

variety scale. Variations were observed between







occupational groups and so the authors suggested that

internal reliability coefficients be computed for each group

that is surveyed with the MSQ.

Test-retest correlation coefficients were also

calculated for the MSQ using 75 night school students over a

1-week period and 115 employed persons over a 1-year

period. For the 1-week interval, stability correlations

ranged from .66 for the coworkers scale to .91 for the

working conditions scale. Stability correlations for the

1-year interval ranged from .35 for the independence scale

to .71 for the ability utilization scale. Canonical

correlation analyses of the data from the two test-retest

periods yielded coefficients of .97 for the 1-week test

interval and .89 for the 1-year test interval.

As Albright (1972) noted, Weiss et al. (1967) do not

spell out the validity data of the MSQ as they do the

reliability data. Instead, the reader of the

Manual for the Minnesota Satisfaction Questionnaire is

advised to consult other publications which contain

information about the construct and concurrent validity of

the instrument. Additionally, the construct validity of the

MSQ is indirectly derived from the studies of another

instrument, the Minnesota Importance Questionnaire (MIQ),

which is also based on the theory of work adjustment.

However, Dawis and Lofquist (1984) claimed that the research

on the MSQ has yielded ". validity data indicating that

the instrument is appropriate for use in both research and

practice (p. 73).









Other evidence to support the validity of the MSQ is

presented by Dunham, Smith, and Blackburn (1977) who found

tha- the MSQ had the highest average convergent validities

when compared to three other job satisfaction measures and

the second highest discriminant validity scores of the

instruments compared. The study by Dunham et al. (1977) was

designed to compare the convergent and discriminant

validities of four widely used job satisfaction measures:

the MSQ, the Job Descriptive Index (JDI), the Faces Scale

(Faces), and the Index of Organizational Reactions (IOR).

Convergent validity was indicated by the extent to which the

scales on each measure yielded similar scores among

respondents. Discriminant validity was based on the extent

to which each respondent's scale pattern on each instrument

was similar but different from those of other individuals.

Although all of the instruments yielded significant

convergent and discriminant validity scores that were

significant at the .01 level, the MSQ had the highest

convergent validity scores which ranged from .71 to .61.

The JDI had the lowest scores which ranged from .51 to .39.

Kendall's coefficient of concordance was computed as a means

of determining discriminant validity and the MSQ yielded the

highest value of .71 while the JDI yielded the lowest score

of .41. However, when a more stringent test of discriminant

validity was applied to each instrument, the MSQ yielded a

value of .70 compared to .77 for the IOR and .55 for the

Faces and JDI.








Further analyses by Dunham et al. (1977) also

demonstrated that the MSQ was least affected by differences

in the respondents' sex and type of job. This is important

to note as validity differences due to sex and job could

produce misleading results. It was also noted that in

comparing the reliability of the JDI, IOR, and MSQ, the JDI

had the highest reliability coefficients of .79-.63.

Based on the findings of Weiss et al. (1967) and Dunham

et al. (1977), it was concluded that the MSQ has moderately

high validity and reliability measures that compare very

favorably with other job satisfaction measures of good

repute. This was also the conclusion of Guion (1978), who

in reviewing the MSQ noted that "the MSQ is well developed,

it holds up well in comparison with a major alternate

instrument and it can give detailed diagnostics or

parsimonious summary statements (p. 1680).

To date, most of the support for the theory of work

adjustment has come from the validation of instruments like

the MSQ. For example, to test the concept of satisfaction,

the MSQ was developed and from research on the MSQ, it was

inferred that the concept of satisfaction was a valid one.

Another instrument that has its roots in the theory of work

adjustment is the Minnesota Satisfactoriness Scales (MSS),

which was developed to measure the concept of

satisfactoriness (Dawis & Lofquist, 1984). Since

satisfaction and satisfactoriness are two independent

factors of work adjustment, it was important to demonstrate

this and so the MSS and MSQ were administered to persons in









several occupational groups. Canonical correlation analysis

was applied to the scores and coefficients of .11 to .24

were obtained, thus indicating that the MSS and MSQ did

measure two independent concepts of satisfactoriness and

satisfaction.

Some support for this theory has also been inferred

from related research. For example, in discussing the

research support for the relationship between satisfaction

and tenure, Dawis and Lofquist (1984) referred the reader to

studies, conducted by other researchers, which demonstrate

that there is a negative relationship between turnover and

job satisfaction.



Job Satisfaction Research

The literature on the sources of job satisfaction can

be classified into three areas. These are studies of

(a) the relationship between job satisfaction and the job

itself, (b) the relationship between job satisfaction and

job context factors, and (c) the relationship between job

satisfaction and individual differences. These categories

will be used to organize the information presented in this

section.



Job Satisfaction and the Job Itself

In reviewing the literature on job satisfaction,

Gruneberg (1979) identified several factors that contributed

to job satisfaction. These factors include achievement of








success and recognition as well as the application of

skills.

Success. This factor refers to the satisfaction the

employee feels after completing a job and is similar to the

need for achievement as described in the theory of work

adjustment (Dawis & Lofquist, 1984). In Hoppock's (1935)

landmark study (that was discussed earlier) he reported that

"what did discriminate clearly and repeatedly" among the

satisfied and dissatisfied teachers "were questions

regarding the individual's feeling of success and progress,

his sense of accomplishment, as measured by his own

standards ." (p. 33). For example, when teachers were

asked if they could see the results of their work, 93% of

the satisfied group replied in the affirmative while 68% of

the dissatisfied group said no. 'Similarly, when asked if

they felt that they were making success in their jobs, 93%

of the satisfied group said yes, while 41% of the

dissatisfied group said no. Again, when asked if they were

doing well in their jobs as expected, only 49% of the

dissatisfied group said yes compared to 82% of the satisfied

group of teachers. Herzberg (1966) also reported that in

his original studies, achievement emerged as a strong

determiner of job satisfaction.

The need for success or achievement was also called

task identity by Hackman and Lawler (1971), who demonstrated

that there was a significant positive relationship of .20

(p < .05) between task identity and job satisfaction. Task


i








identity was listed, by Hackman and Lawler, as one of the

four core conditions that are necessary for job satisfaction.

Recognition. Recognition concerns the external

validation that a worker receives for his/her

accomplishments. This can be formally accomplished through

promotion, award, higher pay, and the like or informally

through praise and feedback from supervisors and coworkers.

The need for recognition was one of the need factors listed

in the theory of work adjustment (Dawis & Lofquist, 1984).

Herzberg (1966) reported that recognition is also a

strong motivator and Hoppock (1935) noted that among the

teachers in this study, 82% of the satisfied teachers felt

that people showed appreciation for their work while only

37% of the dissatisfied group felt this way. Recognition of

employees was considered as one of Hackman and Lawler's

(1971) four core conditions that were necessary for building

or maintaining job satisfaction. Hackman and Lawler

referred to this factor as feedback and indicated that for

feedback to be effective, it must be given in a believable

manner or the employee will be frustrated. Additionally,

Srivasta, Salipante, Cummings, Notz, Bigelow, and Waters

(1977), after reviewing several field experiments on job

satisfaction, concluded that timely feedback was necessary

in order to promote job satisfaction.

Application of skills. Vroom (1964) noted that

individuals derive satisfaction from their jobs when they

are allowed to use their skills and abilities. This, too,

was recognized as a need in the theory of work adjustment









(Dawis & Lofquist, 1984). Vroom (1964) verified that use of

skills and abilities was related to job satisfaction. In a

study of hourly-paid, blue-collar workers in a Canadian oil

refinery, Vroom found a correlation of .59 between ability

utilization and job satisfaction. The fact that

underutilization of skills can be a problem was noted by

Staines and Quinn (1979) who found that 35.6% of the

respondents in their 1977 quality of employment survey

reported that they were dissatisfied with the lack of

opportunities to use their skills on their jobs. Rumberger

(1981) referred to this problem as overeducation and

suggested that this could lead to job dissatisfaction.

It has also been found that employees not only want to

use their skills and abilities, but also to do so in a

variety of ways (Gruneberg, 1979). Variety of tasks is also

listed as a need in the theory of work adjustment (Dawis &

Lofquist, 1984). In a study conducted by Hackman and Lawler

(1971), it was observed that variety and job satisfaction

were significantly related. This study had a sample of

various categories of workers from an eastern telephone

company. Participants completed a 23-item questionnaire,

which was designed to measure the employees' reactions to

their jobs. Correlations were calculated based on the items

dealing with general satisfaction and variety in the job and

a relationship of .38 (P < .05) was found. Srivasta et al.

(1977) noted similar results in a review of several field

studies designed to investigate job satisfaction.







Another of Hackman and Lawler's (1971) core

contributors to job satisfaction was autonomy. Autonomy

can be described as the extent to which employees have input

into how or when they apply their skills and abilities to

complete a task. In their study, Hackman and Lawler

obtained a .39 (p < .05) correlation coefficient for the

relationship between autonomy and job satisfaction.

Srivasta et al. (1977) and Katzell and Yankelovich (1975)

noted similar observations in their review of correlational

and field studies on job satisfaction. Other researchers,

like Herzberg (1966), used the term responsibility to

describe this concept of autonomy. Responsibility is one of

the needs in the theory of work adjustment (Dawis &

Lofquist, 1984).



Job Satisfaction and Job Context Factors

This category of factors includes such factors as pay,

security, supervision, organizational climate, and

coworkers. According to Herzberg (1966), these factors do

not contribute to job satisfaction, but rather to job

dissatisfaction. However, researchers have found positive

(although often weak) relationships between job context

factors and job satisfaction.

Pay. After reviewing nine studies on the relationship

between job satisfaction and salary, Srivasta et al. (1977)

concluded that there was a positive relationship between pay

and job satisfaction. This was found to be true by Hackman

and Lawler (1971) who found a significant correlation of .44









(p < .05) between job satisfaction and pay. Hoppock (1935)

also found similar results as 47% of the satisfied teachers

expressed discontent with their pay while 71% of the

dissatisfied teachers expressed the same. It is studies

like these that led the developers of the theory of work

adjustment (Dawis & Lofquist, 1984) to include compensation

as a need requirement.

There is also some indication that the importance of

pay varies with job levels. This was reported by Voydanoff

(1978) who conducted a national study of approximately 1,200

persons at five occupational levels: professional,

managerial, clerical, crafts, and laborer. Respondents were

asked to express their satisfaction with seven aspects of

the job. These were financial rewards-promotions,

requirement of hard work on the job, role strain (not

knowing what is expected on the job), supervision, working

conditions, enriching job demands, and self-expression. A

multiple regression analysis of the results revealed that

self-expression, role strain, and financial rewards-

promotions were related to job satisfaction for all

occupational levels. While financial rewards were not

considered to be the most important factor in determining

job satisfaction by any of the occupational levels,

managers gave the highest rating to the importance of this

factor.

However, Katzell and Yankelovich (1979) maintained that

high pay does not necessarily contribute to job satisfaction;








rather, it is whether or not the employee believes that the

pay is commensurate with performance and responsibility that

will make the difference. Vroom (1964) also suggested that

satisfaction with pay is moderated by another variable--

social equity. He believed that people whose wages are

commensurate with those at their occupational level tend to

be more satisfied than those who believe that their

counterparts receive higher wages.

Security. In the theory of work adjustment (Dawis &

Lofquist, 1984) security is listed as a need requirement of

workers. This view was corroborated by Hackman and Lawler

(1971) who found a correlation of .47 (p < .05) between job

satisfaction and security. Not much attention is given to

this factor in the literature on job satisfaction and

perhaps this is so as the importance of job security is

relevant to socioeconomic conditions. Hoppock (1935) and

Gruneberg (1979) have suggested that job security becomes a

factor in job satisfaction only when there is a threat of

unemployment due to political and/or financial crises. For

example, in 1977, when economic conditions were better,

Staines and Quinn (1979) reported that only 9.4% of their

national sample of workers were troubled by the possibility

of unemployment. However, today, with rising inflation and

reductions in government-funded projects, it may be

reasonable to expect that security would be a grave concern

among many employed people.

Supervision. In the Voydanoff (1978) study (described

earlier) the effect of supervision on job satisfaction was









considered. It was found that supervision did not affect

:he job satisfaction of employees at any of the occupational

levels. This seems to support Herzberg's (1966) view that

supervision is a hygiene factor and not a motivator.

However, Srivasta et al. (1977) and Katzell and Yankelovich

(1975) maintain that there is a positive relationship

between job satisfaction and participative supervision.

That is, people feel better about their jobs when they are

allowed to have input into the decision-making process of

-he organization. This was the conclusion of Jackson

(1983) who conducted an experiment among the nursing and

clerical staff at a hospital's outpatient facility. Jackson

utilized a Solomon four-group design and randomly assigned

the staff to one of the four groups. For the intervention

groups, unit supervisors were instructed to hold meetings at

least twice each month while the supervisors of the control

group conducted meetings no more than twice a month.

Additionally, the intervention group members were

allowed to have input on matters affecting the unit while

the control group had none. After three and six months, all

four groups completed the short form of the MSQ. The data

were subjected to an analysis of variance which indicated

that the intervention did have a significant increase on

employees' job satisfaction.

Results similar to Jackson's (1983) were also obtained

by Schneider (1984) who surveyed 276 middle/junior high

school teachers in Wisconsin. Responses from the 260








teachers indicated that job satisfaction increased as

participation in the schools' decision making process

increased. However, Schneider also found that participation

in the decision making process was not equally important to

all persons. This finding was clarified by Vroom (1964),

who concluded from prior research that the effects of

participative decision making were related to personality

variables like authoritarianism and the need for

independence.

Employees not only like to participate in the decision

making process, but expect warmth and support from their

supervisors. Hackman and Lawler (1971) found this to be so

in their research, in that a significant correlation of .33

(p < .05) was found for the relationship between job

satisfaction and fair treatment from the boss. This factor

has also been recognized as a need in the theory of work

adjustment (Dawis & Lofquist, 1984).

Another supervisory behavior that employees value is

supervisory competence or resourcefulness (Katzell &

Yankelovich, 1975). Employees expect their supervisors to

have the knowledge to make competent work-related decisions.

This is also listed as a need factor in the theory of work

adjustment (Dawis & Lofquist, 1984).

Organizational climate. Closely related to supervisory

behavior is the organizational climate of the work

environment. Gruneberg (1979), Katzell and Yankelovich

(1975), and Srivasta et al. (1977) all noted that employees

tend to be more satisfied when there are open lines of









communication between the employees and top level officials

as well as when there is less of a hierarchical structure in

the organization. Consistent with these results, the theory

of work adjustment (Dawis & Lofquist, 1984) included

organizational climate as an employee need.

In addition to providing a supportive climate for their

employees, organizations are expected to provide safe

working conditions. This was found to be a growing concern

by Staines and Quinn (1979) in their quality of employment

surveys. In 1969, 38% of all workers polled expressed

concern about being exposed to one or more safety and health

hazards. Four years later the number expressing concern

with this problem grew to 42% and by 1977, 78% of the

respondents expressed concern about the safety conditions at

work. Staines and Quinn attributed part of the dramatic

increase in expressed concern to improvement in measuring

techniques. However, increase in the knowledge of the

employees could also account for some of the increased

concern as the Environmental Protection Agency and several

interest groups were making the population more aware of

potential hazards in the workplace.

In the study conducted by Voydanoff (1978), working

conditions contributed to the satisfaction of managers

and laborers, but not to professionals, clerks, or

craftsmen. However, in Hoppock's (1935) study the

teachers did give consideration to their work environment

and 86% of the satisfied teachers indicated that they liked








their work environment while only 52% of the dissatisfied

teachers expressed a liking for the same.

According to the theory of work adjustment (Dawis &

Lofquist, 1984), people expect advancement or promotional

opportunities to be provided by the employing organization.

This is considered as a motivator in Herzberg's (1966)

theory and Hackman and Lawler (1971) also found a small but

significant relationship of .33 (p < .05) between promotion

and job satisfaction. Staines and Quinn (1979) also noted

that, nationally, there had been a significant decline in

satisfaction with promotional opportunities between 1973 and

1977 and, coincidentally, there was also a significant

decline in general job satisfaction during those years.

While no causal relationship can be inferred from the

results, it is plausible that there is a correlation between

the decline in job satisfaction and promotional

opportunities.

The theory of work adjustment (Dawis & Lofquist, 1984)

stated that just as individuals have requirements of their

employing organizations, the organization has requirements

of the employee. However, the organization does not always

clarify its expectations to the employee and this produces

role conflict which leads to lowered job satisfaction.

Gruneberg (1979) and Kahn (1974) also supported this view.

In Voydanoff's (1978) study, this condition was described as

role strain and was determined to be the major source to

affect the job satisfaction of professional, managers, and

laborers and the second major source for clerks and crafts






47

workers. The conditions of role overload (too much work)

and role ambiguity (insufficient information to enable the

employee to perform an adequate job) are often manifested

with role conflict (Kahn, 1974).

Co-workers. Recognizing that people are social

animals, researchers have examined the contribution

of co-worker relationships to employees' job satisfaction.

Hackman and Lawler (1971) reported a very weak (.19) but

significant (p < .05) correlation between job satisfaction

and employees' ability to develop close relationships on the

job. Gruneberg (1979) also reported that on the whole,

people preferred co-workers who were supportive. In fact,

Dawis and Lofquist (1984) included co-worker relationships

as an employee need in the theory of work adjustment.



Job Satisfaction and Individual Differences

It has been shown that several individual differences

influence job satisfaction and included in this category are

age, education, sex, race, occupational status, and job

level.

Age. Weaver (1980) examined seven national surveys

that were conducted between 1972 and 1978 and discovered

that job satisfaction increased with age. This is

consistent with Hoppock's (1935) findings that the mean age

of the satisfied group of teachers was higher than that of

the dissatisfied group.







Education. The relationship between job satisfaction

and educational level was also examined by Weaver (1980),

who reported that satisfaction is positively related to

educational level. Quinn and Mandilovitch (1980) also

examined 11 national surveys that were conducted between

1962 and 1977 and found a significant positive relationship

between level of education and job satisfaction.

Sex. Hoppock (1935) observed that there were no sexual

differences between satisfied and dissatisfied teachers and

this is similar to Weaver's (1980) report that there were no

consistent differences between male and female satisfaction

recorded in national surveys conducted between 1972 and 1978.

However, Martin and Hanson (1985) and Varca, Shaffer, and

McCauley (1983) contended that sex differences do exist.

Using the 1972-73 quality of employment survey data, Martin

and Hanson compared the satisfaction levels of male

breadwinners with female breadwinners and nonbreadwinners.

The females in the study reported slightly higher levels of

job satisfaction, but the female nonbreadwinners reported

the highest level of job satisfaction. It was suggested

that the female nonbreadwinners do not feel as compelled to

take jobs as do the breadwinners and so can be more

selective about their choice of jobs. It should be noted

that the results of the Martin and Hanson (1985) study may

be spurious since they reviewed only one of seven studies

conducted between 1972 and 1978 and so the findings may not

be part of a consistent pattern.








In a five-year follow-up study of 392 college

graduates, Varca, Shaffer, and McCauley (1983) compared the

satisfaction of the sexes with nine job factors. These

factors were salary, advancement and discretion

opportunities, company reputation, supervisory and co-worker

relationships, nature of the work itself, and working

conditions. The response rate was 66% and respondents were

classified into high and low level occupational groups,

based on the type of jobs they had. Data collected from the

questionnaires were analyzed using a 2 (occupational

level) X 2 (sex) MANOVA. Significant main effects were

reported for satisfaction with pay, discretion

opportunities, working conditions, and the nature of the

work.

For pay satisfaction, the group in the high

occupational level reported higher job satisfaction than did

the low occupational level group. There was also an

interaction between sex and occupational level in that males

at the high occupational levels tended to be more satisfied

than males at the low levels and the reverse was true for

females. Similar results were obtained for promotion

satisfaction. For the other factors, males reported more

satisfaction with discretion opportunities and working

conditions while the high occupational group tended to be

more satisfied with the nature of the work. No significant

interactions were found for the last three factors.

Occupational level. As a result of their research,

Varca, Shaffer, and McCauley (1983) concluded that people at









different occupational levels react differently to their

jobs. In his research, Voydanoff (1978) also demonstrated

this point as people in five occupational groups (professional,

managerial, clerical, craftsworkers, and laborers) reported

differences in the factors that affect their job

satisfaction. For example, clerical and craftsworkers were

more concerned about self-expression in their jobs than were

professionals, managers, or laborers.

Vroom (1984) noted that researchers consistently found a

positive relationship between occupational level/status and

job satisfaction. Specifically, professionals tend to be

the most satisfied group and unskilled workers the least

satisfied. Weaver (1980) agreed with the observation that

employees in high status level jobs tend to be more satisfied

than those in low status jobs; however, unlike Vroom, Weaver

found that managers and not professionals were the most

satisfied personnel. The fact that people feel better about

their jobs, if it provides social status for them, was

recognized as a need in the theory of work adjustment

(Dawis & Lofquist, 1984).

Race. In a comparison of national job

satisfaction surveys, Weaver (1980) presented evidence to

show that blacks were generally less satisfied than whites.

Data for other minorities were not presented. Vecchio

(1980), who compared the results of the National Opinion

Research Center's General Social Surveys that were conducted

between 1972 and 1977, reached a similar conclusion. It








has been speculated that, as is the case with women, the

lowered job satisfaction scores among blacks probably

reflect differential treatment in the workplace.



Job Satisfaction and Its Correlates

Several researchers have suggested that there are

relationships between job satisfaction and factors like

productivity, absenteeism, turnover, occupational stress,

burnout, mental health, and life satisfaction. This section

is a survey of some of the literature concerning these

relationships.



Job Productivity

After evaluating research on the relationship between

productivity (job performance) and job satisfaction, Vroom

(1964) concluded that the correlations were small and

inconsistent; thus, no firm conclusions could be made about

this relationship. However, Srivasta et al. (1977)

maintained that the factors that contribute to job

satisfaction (e.g., variety of tasks) also lead to increased

productivity. This implies that there is a positive

relationship between job performance and satisfaction.

Contrary to Srivasta et al. (1977), Katzell and

Yankelovich (1975) were more cautious in describing the

relationship between the two since there are times when job

satisfaction seems to be enhanced by productivity and vice-

versa. As an explanation for this complex situation, Lawler

and Porter (1975) proposed that the missing link between the







two was the rewards the employee receives. They believed

that on completion of a job an individual receives

intrinsic rewards (e.g., sense of accomplishment) and

extrinsic rewards (e.g., pay). If the employee perceives

that the rewards are consistent with the job performance,

this will lead to increased performance. Lawler and Porter

then tested their idea using 148 middle and lower level

managers.

Each manager was given a survey consisting of 13 items

which had two parts with one part that was used to determine

actual satisfaction with rewards and a second part used to

determine the level of reward expected by the employee.

Each item had a response category of 1 (minimum) to 7

(maximum) and the response to the first part was subtracted

from the response to the second part. These difference

scores were added to obtain a job satisfaction score.

Supervisors and peers were asked to rate the performance of

the managers and small but significant positive

relationships were obtained for job satisfaction and the

performance ratings of supervisors (r = .30, p < .01) and

those of the peers (r = .30, p < .01). These findings do

give credence to the notions of Lawler and Porter, but

should be considered tentative until more research is

conducted in this area.



Absenteeism

As with the studies on job satisfaction and

productivity, which produce conflicting results, so do









studies on the relationship between job satisfaction and

absenteeism. It is often believed that there is a negative

relationship between job satisfaction and absenteeism. For

example, Hackman and Lawler (1971) reported a small negative

relationship (-.10) between absenteeism and job

satisfaction. However, this correlation was not

significant. Gruneberg (1979) suggested that the

relationship between job satisfaction and absenteeism is

quite complex as some people may be dissatisfied with their

jobs, but feel moral constraints to attend every day. It

would also seem likely that employees, out of fear of being

fired, would not demonstrate too much absenteeism behavior.



Turnover

In the theory of work adjustment, Dawis & Lofquist

(1984) proposed that satisfied employees are less prone to

leave their jobs. Thus, there is a high rate of tenure

(i.e., low turnover rate) among this group. Vroom (1964)

and Gruneberg (1979) indicated that studies consistently

demonstrated a negative relationship between job

satisfaction and the turnover rate.

One such study was conducted by Hulin (1968) who

reported increases in satisfaction and decreases in turnover

behavior after the implementation of a program to promote

job satisfaction in a manufacturing company. During 1961-

1963, it was determined that this company had a 30% turnover

rate among its clerical staff. In 1964, the employees were








asked to complete a measure of job satisfaction, the Job

Descriptive Index (JDI), and analyses of their responses

indicated that the employees were dissatisfied with the

administration of salary across wage levels and the lack of

promotional opportunities. The company then instituted

programs to make salaries more equitable and to allow for

frequent wage reviews. Other changes included the

facilitation of promotional opportunities and the provision

of opportunities for the clerks to expand their

responsibilities in their jobs. In 1966, the JDI was

readministered and 298 of the 350 staff members, who were

present at administration returned their surveys.

While there was not significant appreciation of overall

job satisfaction scores, Hulin (1968), using t-tests, showed

that there were significant increases in the employees'

satisfaction with pay, promotions, co-workers, and

supervisors. Hulin also checked the turnover rate at the

end of the intervention period and discovered that there was

a decrease from 30% to 12%. A Pearson correlation

coefficient was calculated for the relationship between the

satisfaction and turnover variables and this was found to be

-.27 (p < .01). Although these results do support the

belief that turnover and job satisfaction are negatively

correlated, it should be noted that Hulin did not conduct a

true experimental study and a number of uncontrolled

variables (e.g., maturity and history) could account for

some of the change.








Occupational Stress

Occupational or job stress is defined as the "condition

in which some factor, or combination of factors, at work

interacts with the worker to disrupt his psychological or

physiological homeostasis" (Margolis & Kroes, 1974, p. 15).

Margolis and Kroes also suggested that job stress was the

result of a person-environment mismatch and is manifested as

anxiety, tension, anger, fear, chronic depression and

fatigue, or impaired physical health and work performance.

McLean (1974) suggested that occupational stress is related

to job satisfaction and this was demonstrated in a study by

Kyriacou and Sutcliffe (1979).

Participants in the Kyriacou and Sutcliffe (1979) study

were 218 teachers from 16 British schools. The teachers

were asked to respond to a survey, developed by Kyriacou and

Sutcliffe, and when the responses from these surveys were

analyzed, it was found that a significant negative

correlation (r = -.27, p < .01) existed between job

satisfaction and job stress.



Burnout

The development of the concept of burnout was

attributed to Freudenberger (Edelwich & Brodsky, 1980), who

revealed, in 1974, that he had recovered from burnout and that

his condition had resulted from his efforts to maintain too

many professional, social, and personal commitments. Maslach

(1982) has done extensive research on burnout and reported

that it is the employee's response to chronic job stress.









Many authors (e.g., Perlman and Hartman, 1980) have

suggested that there is a negative link between job

satisfaction and burnout. This link seems plausible

based on the premise that burnout is a chronic form of

occupational stress--a negative correlate of job satisfaction.



Mental Health

Gruneberg (1979) submitted that although small, there

was a relationship between job satisfaction and mental

health. Furnham and Schaeffer (1984) investigated this

relationship and concluded that there is a positive

correlation between job satisfaction and mental health.

Hoppock's Job Satisfaction Blank (Hoppock, 1935) was used to

measure job satisfaction while the Langner--22 Index of

Mental Health (Langner, 1962)--an instrument which screens

for 22 psychological problems as well as depression and

withdrawal--was used to determine the employees' level of

mental health. These instruments, in addition to the Self-

Directed Search, were administered to 82 British adults, who

were fulltime employees. A comparison of the mean scores on

the instruments was conducted, using Pearson's correlation,

and this revealed that there was a significant negative

relationship (r = -.47, p < .001) between job satisfaction

and poor mental health. Congruence or person-environment

fit was calculated from the similarities between

individuals' codes on the Self-Directed Search and the

Holland codes for their occupations. The relationship








between congruence and job satisfaction was found to be .37

(p < .001) while the calculated relationship between

congruence and poor mental health was -.24 (p < .01).

Therefore, it can be assumed that people whose interests

match their occupations will most likely enjoy job

satisfaction and good mental health.



Life Satisfaction

Staines and Quinn (1979) noted that accompanying a

decrease in national job satisfaction, between 1973 and

1977, was a decrease in life satisfaction. Life

satisfaction was determined from two questions in which

respondents were asked about their perceptions of their

current level of satisfaction with life and the way their

lives were being spent. Chacko (1983) did a cross lagged

analysis of the results from the 1977 survey and concluded

that job satisfaction tended to influence life satisfaction

rather than vice versa. Chacko's observation should only be

treated tentatively as causality is best inferred from

experimental studies. However, there does seem to be some

link between job and life satisfaction for as Hoppock (1935)

noted, a higher percentage of the satisfied teachers (77%)

expressed contentment with life than did the dissatisfied

teachers (51%).



Summary

School counselors play an important part in the

educational and emotional development of students in the









nation's elementary, middle/junior, and senior high schools.

In this position, they serve as role models for students.

However, their reactions to their jobs could influence the

manner in which the school counselors discharge their duties

and much has been written about school counselors' negative

reactions to their jobs. It is the belief of many authors

that factors like role ambiguity, conflict, and overload are

contributors to the school counselors' reactions. These

reactions have often been described as burnout, job/

occupational stress, and, less frequently, job

dissatisfaction. However, after reviewing the limited

literature on job stress and burnout among school

counselors, it was concluded that the descriptions of school

counselors as stressed may not be accurate as there is no

data to indicate that extraordinarily high stress levels

exist among school counselors.

On the other hand, there is some support for the view

that persons whose needs are met by their employing

organizations will be satisfied and that this satisfaction

has positive correlates like good mental health, lack of

occupational stress, and satisfaction with life. It therefore

seemed appropriate that in order to help career counselors

match clients with a school counseling career and to help

them get a realistic picture of the positive and negative

aspects of school counseling, a comprehensive study of

the causes of job satisfaction among school counselors

should be conducted.








The measurement of job satisfaction has varied with

investigations as some researchers have used instruments

with one question while others have used 238 questions.

Additionally, some instruments were designed to measure

general/overall job satisfaction while others were designed

to measure facets or components of job satisfaction. This

situation has often led to conflicting results and

inconclusive data. It was this situation that prompted

Staines and Quinn (1979) to assert that instruments with a

singular question can only generate limited data and so they

recommended the use of instruments with several questions,

aimed both at identifying the sources of job satisfaction

and the overall level of job satisfaction.

One instrument which meets this requirement is the

Minnesota Satisfaction Questionnaire (MSQ), which is based

on the theory of work adjustment (Dawis & Lofquist, 1984).

Dawis and Lofquist proposed that job satisfaction is the

result of a complementary fit between employees' needs and

the rewards of the employing organization and this this

leads to tenure. Twenty needs have been identified and

these needs or sources of satisfaction have been

corroborated by several studies. It has also been

demonstrated that the MSQ is a reliable and valid measure of

job satisfaction and so it was selected for use in this

study.













CHAPTER III
METHODOLOGY

This descriptive study was designed to provide an index

of the current level of job satisfaction among school

counselors in the American School Counselor Association,

describe the sources of job satisfaction among this

occupational group, and determine if job satisfaction could

be predicted from selected personal and employment

variables. To achieve this, school counselors were

surveyed using a job satisfaction survey that consisted of

two sections--a personal and employment data section (PEDS)

and the Minnesota Satisfaction Questionnaire (MSQ)

(Weiss, Dawis, England, & Lofquist, 1967). Counselors at the

elementary, junior/middle, and senior high schools were then

compared with respect to levels and sources of satisfaction;

in addition, the contribution of selected variables to job

satisfaction was determined.



Population and Sample

The sample in this study was solicited from the current

membership of the American School Counselor Association

(ASCA). This association is a division of the American

Association for Counseling and Development and was formed in

1952 in recognition of the fact that school counselors were

performing a unique role (Minkoff & Terres, 1985). The









1985 membership was 9,000 and included school counselors,

school counseling and guidance directors, counselor

educators, administrators, and so forth from the United

States and several foreign countries. Of the 9,000 members,

60% were female and 50% worked in elementary, secondary, and

postsecondary institutions (Minkoff & Terres, 1985).

Coded surveys were sent to a random sample of 1450

school counselors, on the ASCA's 1985 membership roll. A

total of 779 school counselors returned the surveys for a

response rate of 54%. Upon return, responses were screened

and only those respondents who met the following criteria

were included in the final sample: (a) They were employed

in elementary, middle/junior, or senior high schools; (b)

had the main duties of counseling, consultation, and

guidance; (c) were practicing on the mainland of the United

States of America; and (d) had completed both the MSQ and

the PEDS of the job satisfaction survey. Of the 779

responses, 93 were not deemed usable as 8 persons did not

complete a section of the survey; 1 person had moved and

left no forwarding address; 7 school counselors were

stationed overseas with various branches of the armed

forces; and 77 people were no longer school counselors. On

completion of data collection, to ensure anonymity, the list

of names associated with each code was destroyed.

The final sample consisted of 686 school counselors and

they represented the 48 mainland states and the District of

Columbia. There were 661 full-time school counselors and 25








part-time, whose mean age was 44 years. As shown in Table

1, the school counselors had an average monthly salary of

$2,265, had worked for 11 years as school counselors, and

spent 8 years in their present positions.

Other pertinent demographic data, including sex and

degree level, are presented in Table 2. It was noted that

the majority of school counselor respondents were female

(66%), had a masters degree (79%), were employed in senior

high schools (43%), and worked in public schools (92%).



Table 1
Description of Sample


Characteristic Mean SD Range


Age (n = 681) 44 9.1 21-70

Salary (n = 661) 2265 808.6 0-5600

Job Tenure (n = 683) 8 6.6 1-36

Occupational Tenure (n = 683) 11 7.3 1-39




Instrumentation

Each member in the sample received the job satisfaction

survey which consisted of a personal and employment data

section and the Minnesota Satisfaction Questionnaire

(Weiss, Dawis, England, & Lofquist, 1967). The personal and

employment data section (PEDS), developed by the

investigator, was comprised of 23 items that included

multiple-choice and open-ended questions.









Table 2
Sample Characteristics


Characteristic Frequency Percentage
(N = 686) of Sample


Sex
Female 452 66.00
Male 233 34.00
Missing cases 1 0.00

Employment
Full-time 661 96.00
Part-time 25 4.00
Missing cases 0 0.00

Degree Level
Bachelors 6 1.00
Masters 540 79.00
Specialist 109 16.00
Doctorate 30 4.00
Missing cases 1 0.00

School Level
Elementary 188 27.00
Middle/junior high 128 19.00
Senior high 296 43.00
Elementary-middle/junior high 23 3.40
Middle-senior high 18 2.60
All 3 levels 28 4.00
Missing cases 5 1.00

School Setting
Urban 538 78.00
Rural 141 21.00
Missing cases 7 1.00

Control of School
Public 628 92.00
Private 55 8.00
Missing cases 3 0.40




The second section of the job satisfaction survey was

the Minnesota Satisfaction Questionnaire (MSQ). The MSQ,

developed by Weiss, Dawis, England, and Lofquist, was









published in 1967. In 1977, it was revised to remove sexist

language. The long form, used in this study, consists of

100 items that were designed to measure overall/general

satisfaction as well as satisfaction with 20 aspects or

reinforcers of the job (e.g., ability utilization and

compensation). Permission was obtained from the publisher

to reword several items to render them more applicable to

school counselors. These revisions were necessary as the

MSQ was developed for use in industrial settings and terms

such as "boss" and "company" were replaced with "principal"

and "school."

In reviewing the MSQ, Guion (1978) recommended it as a

reliable and valid instrument that compared well with

other measures that have been used extensively for many

years. According to the Manual for the

Minnesota Satisfaction Questionnaire (Weiss, Dawis, England,

& Lofquist, 1967), the internal reliability of the 20 scales

and the general satisfaction scale is moderate to high,

ranging from .50 to .97. This is also true for test-retest

reliability. Weiss et al. (1967) also maintained that the MSQ

demonstrates concurrent, content, and construct validities.

Dunham, Smith, and Blackburn (1977) also demonstrated that

the MSQ has high discriminant and convergent validities (see

further discussion in Chapter II). In this study,

Cronbach's coefficient alpha was used to determine the

reliability of the General Satisfaction Scale and it was

found to be .87.











Data Collection

In March 1986, school counselors were mailed a packet

consisting of (a) a job satisfaction survey, (b) a business

reply envelope, and (c) a cover letter which included a

brief description of the purpose of the study. In the

letter, the school counselors were instructed to indicate

their responses on the job satisfaction survey and to return

the entire job satisfaction survey in the business reply

(postage paid) envelope. Data collection lasted 15 weeks.



Pilot Study

Satisfaction surveys were mailed to 50 school

counselors in a Florida school district in May 1985.

Twenty-seven (54%) surveys were returned and after screening

for incomplete surveys, 22 (44%) surveys were deemed usable.

Respondents indicated that they completed the entire survey

in an average of 25 minutes.

The final sample consisted of 7 males and 15 females

with 8 school counselors working in elementary schools, 6 in

middle/junior high schools, and 8 in senior high schools.

Overall, the group had a mean satisfaction score of 73 on a

scale ranging from 20, very dissatisfied, to 100, very

satisfied. This indicated a moderate level of job

satisfaction. The females reported a higher level of job

satisfaction (M = 75) than did the males (M = 69). When

school counselors at the three school levels were compared,









middle/junior high school counselors reported the highest

level of satisfaction (M = 78) and high school counselors

reported the lowest level of satisfaction (M = 69).

Elementary school counselors had the second highest level of

satisfaction (M = 74).

Based on the school counselors' responses to the

personal and employment data section, several changes were

made on the instrument. For example, on item 20 many of the

school counselors indicated that they were involved in

individual and group guidance as well as special education

referrals and so sub-items (c), (f), and (1) were added to

item 20. Additionally, item 21 was originally an open-ended

question and after the pilot study, responses to this item

were used to develop the list of reasons (for which school

counselors chose school counseling) for the final version of

the instrument.

Other changes made after the pilot study were based on

Best's (1977) suggestions for designing good questionnaires.

Some detail was added to several questions (to render them

unambiguous) and then the entire personal and employment

data section was reorganized. Examples of items that were

clarified were items 1 and 5, where numerical definitions

were added to each alternative and items 12 and 13 which

specified which salary and age information were desired.

These changes were made to ensure that comparable data were

received from all respondents.









The reorganization involved arranging the items so that

similar items were grouped together and items requiring

factual information (1-15) were placed at the beginning of

the instrument. Those items requiring more thought (16-23)

were placed afterwards. Best (1977) also suggested that

respondents prefer that the last item of a survey elicit

good feelings and so the item asking respondents to list the

five most satisfying aspects of their jobs (item 23) became

the final item of the personal and employment data section.

It should also be noted that items 14 and 15 were

constructed after the pilot study.



Research Questions

This study addressed seven specific research questions.

These questions were based on the general questions listed

in Chapter I and are presented below.

1. What is the overall level of job satisfaction

among school counselors who are members of the American

School Counselor Association, as indicated on the MSQ?

2. What are the sources of job satisfaction among

school counselors who are members of the American School

Counselor Association?

3. Are there differences in the sources of job

satisfaction, reported on the MSQ, among school counselors

in the elementary, middle/junior, and senior high schools?









4. Is there a relationship between school counselors'

ages and Their overall level of job satisfaction as reported

on the MSQ?

5. Is there a relationship between the school

counselors' overall level of job satisfaction and their

monthly salaries?

6. Can the overall job satisfaction of school

counselors be predicted from the level of school in which

they are employed, sex, degree level, setting of counselors'

school, control of counselors' school, level of involvement

in the ASCA at the national level, level of involvement in

the ASCA at the state/regional level, and the number of

professional memberships held by each school counselor?

7. Can the overall job satisfaction of school

counselors be predicted from occupational tenure, job

tenure, the counselor-student ratio in the school,

the weekly percentage of time spent on each of their regular

duties, degree of job challenge reported by the school

counselors, their perception of the adequacy of their

training, and the degree to which the profession meets their

expectations?













CHAPTER IV
RESULTS

In exploring job satisfaction among school counselors

in the American School Counselor Association, seven research

questions were raised. The results, based on a job

satisfaction survey conducted among the members of the

American School Counselor Association, are presented in this

chapter with each question discussed in a separate section.



Research Question 1

The first research question was as follows: What is the

overall level of job satisfaction among school counselors

who are members of the American School Counselor Association,

as indicated on the MSQ?

The answer to this question was generated from the

composite mean score attained by the respondents on the

general satisfaction scale of the MSQ. The possible range

of scores was 20 (very dissatisfied) to 100 (very satisfied)

and the mean score for the school counselors in this study

was 76 (SD = 9.6, N = 659), indicating that the school

counselors, as a whole, were moderately satisfied. This

finding is consistent with that of the pilot study conducted

by the writer.








Research Question 2

The second research question was as follows: What are

the sources of job satisfaction among school counselors who

are members of the American School Counselor Association?

The answer to this question was based on two sources:

the MSQ scales and item 23 of the personal and employment

data section (PEDS) of the job satisfaction survey. The 20

scales of the MSQ were examined first and those with

composite mean scores above 15 (the midpoint of the scales)

were used as sources of job satisfaction. The mean scores

on these scales had a possible range of 5 (very

dissatisfied) to 25 (very satisfied) and on only one scale,

advancement, was the score below 15 (M = 14.63, SD = 4.45)

and so could not be considered as a source of job

satisfaction for the school counselors. The list of MSQ

scales with means above 15 are located in Table 3. Social

service, activity, creativity, moral values, and variety

were the five greatest sources of satisfaction reported by

the school counselors on the MSQ. On the other hand

recognition, social status, supervision--technical, school

policies and practices, and compensation were the five

areas in which counselors derived the least amount of job

satisfaction.

Secondly, a list of the most satisfying aspects of

school counseling, as reported by the school counselors, was

compiled from item 23 of the PEDS. The 10 satisfying job

aspects, that were reported most frequently by the

school counselors, are listed in Table 4. According to









Table 4, the majority of school counselors (75%) included

relationship with students among the five most satisfying

aspects of their jobs. Achievement, ability utilization,

and relationships with parents and teachers were also among

the five most frequently listed satisfying aspects of school

counseling. A comparison of Tables 3 and 4 revealed that

achievement, ability utilization, variety, social service,

and autonomy were among the 10 areas of greatest

satisfaction reported by the school counselors on the PEDS

and the MSQ.



Table 3
Sources of Job Satisfaction Reported on the MSQ


Source Mean SD
n = 686

Social service (chance to help others) 22.24 2.52
Activity (chance to keep busy) 21.16 2.80
Creativity 21.15 3.49
Moral values (not violating them) 20.91 2.79
Variety (of duties) 20.89 2.70
Ability utilization 20.88 3.64
Achievement 20.80 2.83
Responsibility 20.35 2.78
Independence 19.44 3.33
Co-workers 19.24 3.62
Supervision--human relations 19.08 4.93
Security (job) 18.73 4.03
Authority 17.88 2.86
Working conditions 17.78 2.86
Recognition 17.66 4.47
Social status 17.33 3.33
Supervision--technical 17.31 4.73
School policies and practices 16.96 4.26
Compensation 15.32 4.96








Table 4
The 10 Most Satisfying Aspects of School Counseling Listed
by the Counselors


Satisfying n % of
aspect Sample


Relationship with students 506 75.00
Achievement 480 71.10
Ability utilization 331 49.00
Relationship with parents 215 31.90
Relationship with teachers 207 30.70
Variety 187 27.70
Service to others 185 27.40
Autonomy 133 19.70
Relationship with prin./administrs. 107 15.90
Working hours 106 15.70




Research Question 3

The third research question was as follows: Are there

differences in the sources of job satisfaction, reported on

the MSQ, among school counselors in the elementary, middle/

junior, and senior high schools?

For each scale on the MSQ, a one-way ANOVA was computed

to determine if there were any differences in the scale

means for the school counselors at the three levels. The

following F values were obtained for each scale:

1. Ability utilization (F = 1.98, p < .140)
2. Achievement (F = 2.00, p < .136)
3. Activity (F = 1.62, p < .200)
4. Advancement (F = 1.60, p < .210)
5. Authority (F = 2.92, p < .055)
6. School policies and practices (F = 9.51, p < .001)
7. Compensation (F = 1.51, p < .221)
8. Co-workers (F = 6.73, p < .001)
9. Creativity (F = 12.91, p < .001)
10. Independence (F = 2.05, p < .130)
11. Moral values (F = 1.30, p < .276)
12. Recognition (F = 4.46, p < .05)
13. Responsibility (F = 7.42, p < .001)
14. Security (F = 1.71, p < .181)







15. Social service (F = 0.33, p < .722)
16. Social staus (F = 2.71, p < .067)
17. Supervision--human relations (F = 17.03, p < .001)
18. Supervision--technical (F = 6.6, p < .01)
19. Variety (F = 3.00, p <.052)
20. Working conditions (F = 0.41, p < .662)

The means of seven of these scales were significantly

different at the .05 level or above and source data for

the analyses of these means are presented as Table 5. The

seven scales that had significant means were school policies

and practices, co-workers, creativity, recognition,

responsibility, supervision--human relations and technical.

It was concluded that there were differences in the sources

of job satisfaction for the school counselors at the

elementary, middle/junior and senior high school. Post hoc

analyses were then conducted to learn more about the

differences.

Duncan's Multiple Range test was used to determine how

the group means of the seven significant scales differed.

A review of the data in Table 6 indicated that on all but

one scale, co-worker, the means for the high school

counselors were significantly lower (p < .05) than those of

the school counselors at the other two levels. On the co-

worker scale, the mean for the high school counselors was

significantly lower (p < .05) than that of the elementary

school counselors but not significantly different from that

of the middle/junior high school counselors.








Table 5
Source Tables for Analyses of School Level Differences on
Seven MSQ Scales


Source DF SS MS F


School policies and practices

Between groups 2 342.76 171.38 9.51***
Within groups 603 10866.65 18.02


Co-workers

Between groups 2 172.49 86.24 6.73***
Within groups 604 7743.34 12.82


Creativity

Between groups 2 316.34 158.17 12.91***
Within groups 602 7376.84 12.25


Recognition

Between groups 2 177.61 88.81 4.46*
Within groups 603 12002.08 19.90


Responsibility

Between groups 2 116.11 58.05 7.42***
Within groups 595 4654.11 7.82


Supervision--human relations

Between groups 2 790.46 395.23 17.03***
Within groups 606 14068.28 23.22


Supervision--technical

Between groups 2 290.09 145.05 6.60**
Within groups 599 13164.78 21.98

*p < .05 **p < .01 ***p < .001







Table 6
Means of the Seven Significant MSQ Scales with Respect to
School Levels


Level of School

Scale Elem. Jr. high Snr. high


School policies 17.74 17.57 16.17

Co-workers 19.94 19.39 18.72


Creativity 22.03 21.32 20.39

Recognition 18.19 17.96 17.02

Responsibility 20.86 20.50 19.87

Supervsn--hum. rel. 20.43 19.70 17.91

Supervsn--technical 18.07 17.90 16.61


Note. Means not underlined are
at p < .05.


significantly different


It was therefore concluded that when compared with high

school counselors, elementary and middle/junior high school

counselors experienced higher levels of job satisfaction in

the areas of school policies, creativity, recognition,

responsibility, and supervision--human relations and

technical. Additionally, both the middle/junior and senior

high school counselors were less satisfied with their

teacher co-workers than the elementary school counselors.

As a counterpoint to the third research question, a

frequency distribution of the school counselors' responses

to the most dissatisfying aspects of their job, was

constructed. The data in Table 7 are a comparison of the 10








dissatisfying factors that were most frequently reported by

the school counselors at the three levels. It was surmised

that counselors, especially in the higher levels, were

dissatisfied with the volume of paperwork and

nonprofessional duties (e.g., hall duty, discipline, and bus

duty) that they were expected to perform as 73.2% of the

middle/junior high school counselors and 69.9% of the high

school counselors reported dissatisfaction in this area

while 45.4% of the elementary school counselors did the

same. Other concerns among the school counselors included

(a) role overload due to the heavy workload and high

counselor-student ratios, especially in the elementary

schools; (b) role ambiguity due to unclear expectations,

especially at the high school level; and (c) uncooperative/

insensitive principals/administrators, especially at the

high school level.

Although the school counselors reported moderate levels

of job satisfaction, it was determined that school

counselors at the elementary, middle/junior and senior high

schools experienced different levels of satisfaction. In

the areas of school policies, creativity, recognition,

responsibility, and supervision--human relations and

technical senior high school counselors were less satisfied

than school counselors at the elementary and middle/junior

high schools. Additionally, middle/junior and senior high

school counselors were less satisfied with their teachers as

co-workers than were the elementary school counselors.








Table 7


A Comparison of the 10 Most Dissatisfying Aspects of School
Counseling As Reported by Counselors at Each School Level


Percentage of Sample


Dissatisfying Elem. Middle High Total
aspect n = 183 n = 123 n = 286 n = 592


Paperwork 45.4 73.2 69.9 63.0
Nonprof. work 30.1 57.7 49.0 44.9
Heavy wrkload. 49.7 30.9 36.0 39.2
Uncooperative
principal 25.7 26.8 29.4 27.7
Unclear expect. 17.5 21.1 24.5 21.6
Personal failure 18.0 18.7 14.3 16.4
Uncooperative
parents 15.3 13.0 16.8 15.5
Testing 13.1 17.1 16.1 15.4
Wking. Cond. 30.1 8.9 5.9 14.0
Couns-stud ratio 18.0 11.4 11.5 13.5




Research Question 4

The fourth research question was as follows: Is there

a relationship between school counselors' ages and their

overall level of job satisfaction as reported on the MSQ?

Hoppock (1935) found that there was a positive

relationship between age and job satisfaction. To determine

if this held true for the respondents in this study, a

Pearson correlation was calculated. The relationship was

significant (p < .05) but very small with r = .09. This

finding is consistent with Hoppock's; however, it should be

regarded tentatively since the relationship is so small.


Table 7








Research Question 5

The fifth research question was as follows: Is there a

relationship between the school counselors' overall level of

job satisfaction and their monthly salaries?

A Pearson correlation was calculated and no significant

relationship (p = .47) between job satisfaction and salary

was found. This observation contradicts that of Hackman and

Lawler (1971) who found a significant correlation between

job satisfaction and pay. However, it was mentioned earlier

that the school counselors in this study tended to be

satisfied by more intrinsic factors than extrinsic factors.

Salary is an extrinsic factor and so it is plausible that

salary is not a big factor in school counselors' job

satisfaction.



Research Question 6

The sixth research question was as follows: Can the

overall job satisfaction of school counselors be predicted

from the level of school in which the counselor is employed,

sex, degree level, setting of counselor's school, control of

counselor's school, level of involvement in the ASCA at the

national level, level of involvement in the ASCA at the

state/regional level, and the number of professional

memberships held by each school counselor?

To answer to this question, the data were analyzed with

a stepwise multiple regression technique. Of the eight

possible steps, only the first seven were significant. The

summary of the regression analysis is presented in









Table 8. These seven factors were sex, involvement in the

ASCA at the national level, number of professional member-

ships, control of school, involvement in the ASCA at the

state/regional level, school level, and degree level;

however, these factors were not good predictors of job

satisfaction as together, they only accounted for 2%
2
(r = .022) of the variance in job satisfaction. Overall,

only two of the seven factors were significant (p < .05)

predictors of job satisfaction. These were sex (which

accounted for 1% of the variance) and the number of

professional memberships held by the school counselor (which

accounted for 0.8% of the variance).



Table 8
Multiple Regression Summary of Job Satisfaction Variables


Source DF SS MS F

Regression 7 1296.48 185.21 2.01*
Residual 618 56976.36 92.19



Predictor R Beta Wt. 2 Std. F
r Error
Sex .102 .091 .010 .84 4.91**
Involvement in ASCA
at nat. level .120 .055 .014 2.45 1.66
No. of prof.
memberships .130 .071 .018 .194 2.95**
Control of sch. .144 .052 .021 1.45 1.62
Involvement in ASCA
at state/reg. level .147 .030 .022 1.11 .46
School level .148 -.025 .022 .33 .33
Degree level .149 -.014 .022 .74 .13

*p < .05 **p < .01






80
Although sex and the number of professional memberships

held by each school counselors were significant predictors

of job satisfaction, they were not strong predictors and so

do not contribute much the the understanding of job

satisfaction among school counselors.



Research Question 7

The seventh research question was as follows: Can the

overall job satisfaction of school counselors be predicted

from occupational tenure, job tenure, the counselor-student

ratio in the school, the weekly percentage of time spent on

each of their regular duties, degree of job challenge

reported by the school counselors, their perception of the

adequacy of their training, and the degree to which the

profession meets their expectations?

In answering this question, a stepwise multiple

regression analysis was also used and all factors except

percentage of time spent on group counseling, consultation

with teachers and administrators, and test administration

and interpretation contributed significantly (p < .05) to

the analysis. Located in Table 9 is the summary for the

analysis of factors that contributed significantly to the

multiple regression analysis.

Examination of the data presented in Table 9 revealed

that the combined factors were fairly good predictors of job
2
satisfaction as they accounted for 23% (r = .227) of the

variance in job satisfaction. Of the 16 factors that loaded

into the regression analysis, the following proved to be









significant (p < .05) predictors of job satisfaction: (a) job

expectations, which accounted for 14.6% of the variance; (b)

job challenge, which accounted for 4.2% of the variance;

(c) percentage of time helping students with schedules,

which accounted for 0.7% of the variance; (d) adequacy of

training, which accounted for 0.5% of the variance;

(e) percentage of time maintaining cumulative records,

which accounted for 0.4% of the variance; (f) percentage of

time spent on special education referrals and placement,

which accounted for 0.4% of the variance; (g) percentage of

time spent in individual guidance, which accounted for 0.4%

of the variance; (h) percentage of time spent on individual

personal counseling, which accounted for 0.4% of the

variance; (i) counselor-student ratios, which

accounted for 0.2% of the variance; (j) percentage of time

consulting with parents, which accounted for 0.4% of the

variance; and (k) percentage of time spent in individual

career counseling, which accounted for 0.1% of the variance.

The strongest predictors of job satisfaction among the

school counselors were the degree to which the job met their

expectations and the amount of challenge their jobs offered

as together, these factors accounted for 18% of the 23% of

variance in the school counselors' job satisfaction.



Summary

After reviewing the data in this study, it was

concluded that the school counselors in the nation were








Table 9
Multiple Regression Summary of Role Related Variables


Source DF SS MS F

Regression 16 11080.55 692.53 9.77*
Residual 532 37714.00 70.90



Predictor R B WT. 2 STD. F
r ERROR
Job expectation .381 -.298 .146 .429 52.98*
Job challenge .434 -.180 .188 .656 10.21*
% of time helping
studs. with sched. .442 -.076 .195 .039 2.99*
Adequacy of trng. .447 -.070 .200 .392 3.01*
% of time maint.
cum records .451 -.093 .204 .062 4.85*
% of time on spec.
ed. ref. & plcmt. .456 .061 .208 .045 2.18*
% of time on
indiv. guid. .461 .074 .212 .034 3.40*
% of time on indiv.
pers. counslg. .464 .057 .216 .024 1.96**
Counslr.-stud. ratio .467 -.058 .218 .001 2.04*
% of time consult.
with parents .471 .056 .222 .067 1.97**
% of time in career
grp. counslg. .472 .057 .223 .064 1.86**
% of time in ind.
career counslg. .474 -.044 .224 .043 1.00
% of time in
grp. guid. .475 .020 .225 .022 0.49
Job tenure .475 .062 .225 .087 1.04
Occupational tenure .476 -.062 .227 .078 1.02
% of time on other
duties .477 .016 .227 .031 0.1

*p < .05 **p < .01



moderately satisfied and that the sources of this

satisfaction were mostly intrinsic factors like serving/

working with others and achievement. It was also found that

school counselors at the elementary, middle/junior, and

senior high schools were, for the most part satisfied by the

same sources but in areas like school policies and









practices, recognition, and supervision--human relations,

high school counselors were less satisfied than school

counselors at the other two levels.

Data analyses also revealed that there was a small

positive relationship (r = .09) between the school

counselors' ages and their job satisfaction but

none existed between their monthly salaries and job

satisfaction. Additionally, it was observed that role

related factors like school counselors' job expectations and

job challenge can be significant predictors of job

satisfaction. Some of these findings support previous

research but some contradict others and these similarities

and contrasts are discussed in Chapter V.













CHAPTER V
SUMMARY AND CONCLUSIONS

In a recent report of the College Board, school

counselors were deemed as essential to the educational

system and very influential in young peoples' lives

(Keegan, 1986). However, authors, like Wells and

Ritter (1979), have indicated that school counselors are

dissatisfied with their jobs and are resultantly

ineffective. Since there has not been much empirical

evidence to support the claim, this study was undertaken to

not only learn about the level of satisfaction among school

counselors but also explore the contributing factors to this

satisfaction.

To learn more about job satisfaction among school

counselors, a job satisfaction survey consisting of a

personal and employment data section (PEDS) and the

Minnesota Satisfaction Questionnaire (MSQ), was mailed to

1500 members of the American School Counselor Association.

The findings discussed here are based on a final sample of

686 school counselors. Seven research questions were raised

pertaining to (a) the overall level of job satisfaction;

(b) the sources of job satisfaction and variations across

school levels; (c) relationships between age and salary and

job satisfaction; and (d) predictions of job satisfaction

based on personal, demographic, and job related factors.







It was found that

1. Overall, the school counselors were moderately

satisfied with their jobs.

2. Factors that contributed to this satisfaction

included good relationships with students, a sense of

achievement, helping others, being able to keep busy,

ability utilization, and creativity.

3. For the most part, counselors in the elementary,

middle/junior, and senior high schools were satisfied by the

same sources. However, elementary and middle/junior high

school counselors were more satisfied than high school

counselors with their school policies, opportunities for

creativity, recognition, responsibility, and supervision--

human relations and technical. Additionally, the school

counselors did have some concerns that related to role

conflict, ambiguity, and overload.

4. There was a very weak but significant positive

relationship between school counselors' ages and job

satisfaction.

5. There was no significant relationship between

monthly salary and job satisfaction.

6. The number of professional memberships, job

expectations, school counselors' perception of the adequacy

of their training, and time spent on various duties were

predictors of job satisfaction.

The findings of this study both supported some earlier

studies and differed from some others. These similarities

and differences are discussed in the next section in regard








to the school counselors, theory of work adjustment, and job

satisfaction research. Following this is a discussion of

the limitations and implications of the study as well as

some conclusions drawn from the study.


Discussion of Results

School Counselors

Although the school counselors reported a moderate

level of job satisfaction on the general scale of the MSQ,

it was determined that several factors were threatening

their satisfaction. The factors discussed here concern

(a) the lack of full professional status, (b) inadequacy of

school counselor training, and (c) the effect of unmet

expectations.

Professional status. Proponents of the view that

school counselors are dissatisfied often argue that one

reason for this is the fact that school counselors are

occupied with a preponderance of nonprofessional duties,

which Aubrey (1982) argued could be accomplished by

computers and lesser paid personnel. The school counselors

in this survey did indicate that noncounseling duties were a

source of irritation, as they listed paperwork and

nonprofessional duties among the most dissatisfying aspects

of the job. Additionally, it was determined that the

percentage of time helping students with schedules and

maintaining cumulative records was negatively related to job

satisfaction.








However, after further examination of the data it was

hypothesized that not only is overload of paperwork and

nonprofessional duties a problem but role conflicts and

ambiguity are also the main contributors to lower levels of

job satisfaction among the school counselors. These

problems, according to Caplow (1966), are typical of

occupational groups that have not fully attained the final

stage of professionalization for it is at this stage that

the group forges and delineates its role through political

and public activism thus eliminating opportunities for role

conflicts and ambiguity. The medium for such activism is

the professional organization, which for school counselors

is the American School Counselor Association. Therefore, it

seems that as school counselors try to solve their

preprofessionalization problems, they will need to work more

closely with the American School Counselor Association. With

more school counselors supporting the association, this will

ensure that the association has the vitality it needs to

clarify the role and mission of school counselors to the

public.

Inadequacy of school counselor training. Another reason

for school counselors' attitudes to their jobs was

suggested by Day and Sparacio (1980), who believed that

inadequate and unrealistic training of school counselors

resulted in high levels of job dissatisfaction. In this

study, it was found that there was a positive relationship

between school counselors' perception of the adequacy of

their training and their job satisfaction and this seems to








give credence to Day and Sparacio's belief. To clarify

their position, many school counselors volunteered the

information that they felt versed in theory but not in the

applications of the theory. Therefore, they felt the need

for in-service training to develop skills to correct this

deficiency and/or to learn ways of handling emerging

problems like physical and drug abuse.

Effect of unmet expectations. In addition to

inadequate training, Boy and Pine (1980) implied that

unrealistic expectations could be affecting the school

counselors' attitudes to their jobs. This suggestion seems

to be supported by this survey as job expectations, when met

or surpassed, were very strong predictors of job

satisfaction. It appears that the more closely the job

approximated the school counselors' expectations, the greater

was their satisfaction. Therefore, prior to selecting this

vocation, prospective school counselors need to develop a

realistic picture of the roles entailed in the profession

and set their expectations accordingly.



Theory of Work Adjustment

Job satisfaction, according to the theory of work

adjustment (Dawis & Lofquist, 1984), is the result of the

work environment meeting the needs of its workers. A

manifestation of this satisfaction is tenure--both job and

occupational. In this study, it was determined that there

was no direct relationship between job satisfaction and








occupational tenure in that, although the school counselors

indicated a moderate satisfaction with their jobs, 58% of a

total of 686 school counselors stated that they intended to

remain in school counseling until retirement. This suggests

a potentially high turnover rate or lack of occupational

tenure among the school counselors. In addition, job and

occupational tenure were not found to be significant

predictors of job satisfaction in this study. Perhaps the

incongruency between the school counselors' job satisfaction

and tenure is rooted in the fact that the source of the most

dissatisfaction for school counselors--nonprofessional

duties--was listed on the school counselors' self

report but not measured by the MSQ. It seems plausible to

conclude that if the MSQ had been designed to measure

specific occupational concerns, the satisfaction scores may

have been lower and hence there might have been more

consistency between low satisfaction and low tenure.

Perhaps another reason for the determination of a lack

of congruence between job satisfaction and tenure is the

limited focus of the theory of work adjustment. The theory

is limited in scope in that Dawis and Lofquist (1984) only

address the issue of employees' needs. It would seem that a

more comprehensive theory would better explain job

satisfaction and tenure than the narrowly focused theory of

work adjustment.








Job Satisfaction Research

Researchers have identified several factors that affect

job satisfaction and most of these factors have been

incorporated into the needs list of the theory of work

adjustment (Dawis & Lofquist, 1984). Since support for

the theory of job satisfaction was previously addressed,

these factors are not discussed in this section. The

factors that are discussed here are educational level

and sex. Additionally, the applicability of the M-H

theory and person-environment congruency model is considered.

Educational level. The impact of educational level was

investigated by Weaver (1980) as well as Quinn and

Mandilovitch (1980), who reported a positive relationship

between job satisfaction and educational level. This

observation is contradicted by the results of this study as

educational level was not a significant predictor of

job satisfaction. Perhaps the difference in observations

can be attributed to the fact that the other studies were

conducted with several different occupational groups while

the present study only dealt with one group with a

limited range of educational differences.

Sex There is some controversy as to whether or not

the sex of the employees is a moderating factor in job

satisfaction. For example, Weaver (1980) reported that

there was no relationship between sex and job satisfaction

but this has been countered by Varca, Shaffer, and McCauley

(1983) who added that this effect was more evident among

people in the higher educational levels. In this study, it








was found that the female school counselors tended to be

more satisfied than the male school counselors thus

supporting the hypothesis of Varca, Shaffer, and McCauley.

There is a myriad of possible explanations for this

observation, one of which is the possibility that the men

felt somewhat uncomfortable in a traditionally female-

dominated occupation. Further research is necessary to

elucidate this relationship.

Job satisfaction theories. Several researchers have

developed theories in attempts to account for the sources of

job satisfaction. Among these was Herzberg, who developed

the M-H theory of job satisfaction. According to Herzberg

(1966), different factors account for job satisfaction and

dissatisfaction. However, this was not found to be the case

in the present study for in several cases, the same factors

were listed as sources of satisfaction and dissatisfaction.

For example, relationships with supervisors/principals and

co-workers/teachers were listed not only as sources of

satisfaction but also as sources of dissatisfaction.

Based on these observations it was surmised that job

satisfaction and dissatisfaction are not on two separate

continue, as suggested by Herzberg, but on one continuum as

suggested by Hoppock (1935).

Although job satisfaction/dissatisfaction may be on

a continuum, both conditions are mediated by many variables

that interact. Any theorist that seeks to predict

and explain job satisfaction, must allow for this







interaction and be encompassing. One such potential model

is the person-environment congruency model described

by Klein and Wiener (1977). In this model, the

interaction between personality variables (e.g., needs,

expectations, abilities, and interests) and job variables

(e.g., supervisors, co-workers, and challenge) is considered

and so seems to be more useful than any one theory in the

study job satisfaction.



Limitations

Although this study was designed to present a

comprehensive national index of job satisfaction among

school counselorsin the American School Counselor

Association, several factors could affect the

generalizability of the results. These factors include the

sample chosen, research method, survey instrument, time

of survey, and determination of school level.

For practical reasons, it was decided to survey

a sample of the ASCA's members. The constitution of the

sample may have biased the results as non-ASCA members may

differ in attitudes from the ASCA members. Additionally, it

is not known what proportion of the school counselor

population is enrolled in the ASCA and so, the results may

not be representative of the entire school counselor

population. Therefore, caution should be exercised in

interpreting the results described here.

As is the case with most survey research conducted

by mail, some questionnaires were not returned, despite




Full Text

PAGE 1

7+( 1$785( $1' 6285&(6 2) -2% 6$7,6)$&7,21 $021* 6&+22/ &2816(/256 ,1 7+( $0(5,&$1 6&+22/ &2816(/25 $662&,$7,21 %\ *(25*,(1( %( 025*$1 $ ',66(57$7,21 35(6(17(' 72 7+( *5$'8$7( 6&+22/ 2) 7+( 81,9(56,7< 2) )/25,'$ ,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 ,W LV LPSRVVLEOH WR DFNQRZOHGJH DOO WKH IULHQGV DQG IDPLO\ PHPEHUV ZKR SURYLGHG VXSSRUW DQG HQFRXUDJHPHQW GXULQJ WKH SURFHVV RI FRPSOHWLQJ WKLV VWXG\ +RZHYHU VHYHUDO SHRSOH ZHQW EH\RQG WKH FDOO RI GXW\IULHQGVKLS DQG GHVHUYH VSHFLDO PHQWLRQ 3URIRXQGHVW JUDWLWXGH LV H[WHQGHG WR 'U 0DUJDUHW )RQJ %H\HWWH FKDLUSHUVRQ RI P\ GRFWRUDO FRPPLWWHH ZKR ZDV PRVW LQVSLULWLQJ FRPSDVVLRQDWH DQG FKDOOHQJLQJ 2QH RI WKH PRVW EHQHILFLDO H[SHULHQFHV RI P\ HGXFDWLRQDO FDUHHU ZDV WR REVHUYH WKH SURIHVVLRQDO DQG SHUVRQDEOH PDQQHU LQ ZKLFK VKH JXLGHG WKLV VWXG\ $GGLWLRQDOO\ DSSUHFLDWLRQ LV H[WHQGHG WR 'UV 5REHUW -HVWHU 0D[ 3DUNHU DQG $ 6PLWK ZKRVH WLPHO\ IHHGEDFN DQG H[SHUW FRQWULEXWLRQV KHOSHG WR VKDSH WKH GHYHORSPHQW DQG FRPSOHWLRQ RI WKLV SURMHFW 6SHFLDO PHQWLRQ PXVW DOVR EH PDGH RI 'U ( / 7ROEHUW ZKR FRQWULEXWHG PDQ\ SUDFWLFDO VXJJHVWLRQV DW WKH LQFHSWLRQ RI WKH VWXG\ 9HU\ VSHFLDO FRPPHQGDWLRQ LV GXH P\ KXVEDQG &HFLO DQG GDXJKWHU -RODQGH 7KH\ ZHUH FRQVWDQW VRXUFHV RI LQVSLUDWLRQ DQG PDGH PDQ\ VDFULILFHV WR EULQJ WKLV SURMHFW WR IUXLWLRQ 2WKHU SHUVRQV ZKR FRQWULEXWHG VLJQLILFDQW PRUDO VXSSRUW LQFOXGHG P\ DXQW 9HUQD 1RUPDQ P\ PHQWRU 'U &KXFN 3DUN DQG IULHQGV 'UV 5RG 0F'DYLV DQG 3DWULFLD &DPSEHOO OL

PAGE 3

)LQDOO\ KHDUWIHOW WKDQNV DUH H[SUHVVHG WR WKH KXQGUHGV RI VFKRRO FRXQVHORUV ZKR PDGH WKLV VWXG\ SRVVLEOH E\ UHVSRQGLQJ WR WKH VXUYH\V $OWKRXJK WKH\ ZHUH YHU\ EXV\ WKH\ WRRN WKH WLPH WR KHOS 0DQ\ VFKRRO FRXQVHORUV DOVR RIIHUHG ZRUGV RI HQFRXUDJHPHQW DQG WKRVH ZHUH JUHDWO\ DSSUHFLDWHG $JDLQ WKDQN DOO WKH SHRSOH ZKR KHOSHG WR PDNH WKLV GUHDP D UHDOLW\ LLL

PAGE 4

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

PAGE 5

9 6800$5< $1' &21&/86,216 'LVFXVVLRQ RI 5HVXOWV /LPLWDWLRQV ,PSOLFDWLRQV &RQFOXVLRQV 5()(5(1&(6 %,2*5$3+,&$/ 6.(7&+ Y

PAGE 6

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

PAGE 7

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f 7KH 064 PHDVXUHG VRXUFHV RI MRE VDWLVIDFWLRQ DV ZHOO DV JHQHUDO MRE VDWLVIDFWLRQ 6HYHUDO VWDWLVWLFDO SURFHGXUHV ZHUH XVHG WR DQDO\]H WKH GDWD LQFOXGLQJ IUHTXHQF\ GLVWULEXWLRQV 3HDUVRQnV YLL

PAGE 8

FRUUHODWLRQ WHFKQLTXH DQDO\VHV RI YDULDQFH DQG PXOWLSOH UHJUHVVLRQ DQDO\VHV ,W ZDV GHWHUPLQHG WKDW Df WKH VFKRRO FRXQVHORUV ZHUH PRGHUDWHO\ VDWLVILHG ZLWK WKHLU MREV Ef WKH VFKRRO FRXQVHORUV ZHUH VDWLVILHG E\ LQWULQVLF IDFWRUV VXFK DV DFKLHYHPHQW Ff KLJK VFKRRO OHYHO FRXQVHORUV H[SHULHQFHG OHVV VDWLVIDFWLRQ WKDQ WKRVH DW WKH HOHPHQWDU\ RU PLGGOHMXQLRU KLJK VFKRRO OHYHOV Gf WKHUH ZDV D ZHDN EXW VWDWLVWLFDOO\ VLJQLILFDQW S B f SRVLWLYH UHODWLRQVKLS EHWZHHQ DJH DQG MRE VDWLVIDFWLRQ EXW QRW EHWZHHQ VDODU\ DQG MRE VDWLVIDFWLRQ DQG Hf MRE H[SHFWDWLRQV MRE FKDOOHQJH DQG FRXQVHORUVn SHUFHSWLRQ RI WKH DGHTXDF\ RI WKHLU WUDLQLQJ ZHUH SUHGLFWRUV RI MRE VDWLVIDFWLRQ ,W ZDV REVHUYHG WKDW WKH VFKRRO FRXQVHORUV KDG FRQFHUQV RI UROH RYHUORDG DPELJXLW\ DQG FRQIOLFW ,W ZDV VXJJHVWHG WKDW WKH $6&$ FRXOG KHOS WR SURPRWH VDWLVIDFWLRQ DPRQJ VFKRRO FRXQVHORUV E\ LQWHQVLI\LQJ LWV HIIRUWV RI FODULI\LQJ WKH VFKRRO FRXQVHORUVn UROH WR WKH SXEOLF ,W ZDV DOVR VXJJHVWHG WKDW FRXQVHORU HGXFDWRUV E\ GHYHORSLQJ UHDOLVWLF WUDLQLQJ DQG FRQWLQXLQJ HGXFDWLRQ SURJUDPV FRXOG KHOS WR IRVWHU MRE VDWLVIDFWLRQ DPRQJ VFKRRO FRXQVHORUV YLLL

PAGE 9

&+$37(5 ,1752'8&7,21 $OWKRXJK *HLVW f QRWHG WKDW YHU\ IHZ SURIHVVLRQDOV ZHUH GLVVDWLVILHG ZLWK RU ZDQWHG WR FKDQJH WKHLU MREV WRGD\ DIWHU SHUXVLQJ PDQ\ HGXFDWLRQDO MRXUQDOV RQH LV DSW WR FRQFOXGH WKDW WKLV LV QRW WKH FDVH ZLWK VFKRRO FRXQVHORUV )RU H[DPSOH :HOOV DQG 5LWWHU f QRWHG WKDW VFKRRO FRXQVHORUV ZHUH VXIIHULQJ D ORVV RI SHUVRQDO DQG SURIHVVLRQDO VDWLVIDFWLRQ GXH WR WKHLU LQDELOLW\ WR PHHW WKH QHHGV RI WKHLU VWXGHQWV DQG VFKRRO V\VWHPV %LUDVKN DQG .D]FNRZVNL f REVHUYHG WKDW VFKRRO FRXQVHOLQJ ZDV IRU PDQ\ D PHUH VWHSSLQJ VWRQH WR ELJJHU DQG EHWWHU HPSOR\PHQW SURVSHFWV :KHQ RQH FRQVLGHUV WKHVH REVHUYDWLRQV WKH UHVXOW LV D IHHOLQJ RI IRUHERGLQJ IRU WKH VFKRRO FRXQVHOLQJ SURIHVVLRQ 6FKRRO FRXQVHOLQJ LV DQ $PHULFDQ SKHQRPHQRQ :UHQQ f WKDW EHJDQ LQ WKH HDUO\ SDUW RI WKH WZHQWLHWK FHQWXU\ $V WKH SURIHVVLRQ JUHZ WKH $PHULFDQ 6FKRRO &RXQVHORU $VVRFLDWLRQ $6&$f ZDV IRUPHG +HUU f DQG WKLV RUJDQL]DWLRQ LV QRZ UHJDUGHG DV WKH RIILFLDO YRLFH RI WKH SURIHVVLRQ ,Q LWV UROH VWDWHPHQW 7KH 3UDFWLFH RI *XLGDQFH f WKH $6&$ H[SODLQHG WKDW WKH UROH RI WKH VFKRRO FRXQVHORU LV WR FUHDWH D OHDUQLQJ HQYLURQPHQW ZKHUH WKH SV\FKRORJLFDO ZHOOEHLQJ RI HDFK VWXGHQW LV GHYHORSHG DQG SURPRWHG 7R DFFRPSOLVK WKLV FRXQVHORUV SHUIRUP WKH IXQFWLRQV RI LQGLYLGXDO DQG JURXS JXLGDQFH LQGLYLGXDO

PAGE 10

DQG JURXS FRXQVHOLQJ DQG FRQVXOWDWLRQ ZLWK SDUHQWV DQG WHDFKHUV +RZHYHU VLQFH WKH SV\FKRORJLFDO QHHGV RI VWXGHQWV DUH UHODWHG WR WKHLU GHYHORSPHQWDO VWDJHV VFKRRO FRXQVHORUV DW HDFK HGXFDWLRQDO OHYHO LH HOHPHQWDU\ PLGGOHMXQLRU KLJK DQG VHQLRU KLJK VFKRROf SHUIRUP LQWHUYHQWLRQV WKDW DUH DSSURSULDWH IRU HDFK VWXGHQWnV GHYHORSPHQWDO VWDJH $OWKRXJK WKH $6&$ KDV PDGH DQ DWWHPSW WR GHILQH WKH VFKRRO FRXQVHORUVn UROH PDQ\ DUJXH WKDW WKH\ DUH QRW SHUIRUPLQJ WKH GXWLHV IRU ZKLFK WKH\ ZHUH WUDLQHG 7KLV VHHPV WR EH HQGHPLF WR WKH FRXQVHOLQJ SURIHVVLRQ IRU DV %R\ DQG 3LQH f QRWHG WKH SURIHVVLRQDO UROH HQYLVLRQHG DQG LQWHUQDOL]HG GXULQJ FRXQVHORU SUHSDUDWLRQ VHHPV LQRSHUDEOH LQ WKH UHDO ZRUOG DQG PDQ\ FRXQVHORUV KDYH EHFRPH SHUVRQDOO\ DQG SURIHVVLRQDOO\ GLVFRXUDJHG S f $GGUHVVLQJ WKH SUREOHPV RI VFKRRO FRXQVHORUV 'D\ DQG 6SDUDFLR f K\SRWKHVL]HG WKDW VHYHUDO IDFWRUV ZHUH SUHYHQWLQJ WKHP IURP SHUIRUPLQJ GXWLHV FRQVLVWHQW ZLWK WKHLU WUDLQLQJ 7KHVH LPSHGLPHQWV LQFOXGH Df WKH DEVHQFH RI OHJDO GHILQLWLRQV RI VFKRRO FRXQVHOLQJ RU D UHJXODWRU\ ERG\ IRU WKH SUDFWLFH RI VFKRRO FRXQVHOLQJ Ef WKH ODFN RI XQGHUVWDQGLQJ RQ WKH SDUW RI SDUHQWV VWXGHQWV DQG RWKHU VFKRRO SHUVRQQHO RI WKH FRPSHWHQFLHV RI WKH VFKRRO FRXQVHORUV Ff LQDGHTXDWH DQGRU XQUHDOLVWLF VFKRRO FRXQVHORU WUDLQLQJ DQG Gf WKH IDLOXUH RI VFKRRO FRXQVHORUV WR GHILQH WKHLU UROHV FOHDUO\ $V D UHVXOW RI WKHVH EDUULHUV WR HIIHFWLYH VFKRRO FRXQVHORU SHUIRUPDQFH 'D\ DQG

PAGE 11

6SDUDFLR EHOLHYHG WKDW VFKRRO FRXQVHORUV ZHUH H[SHULHQFLQJ GLVVDWLVIDFWLRQ ZLWK WKHLU MREV 6WDWHPHQW RI WKH 3UREOHP 7KHUH LV D FRPPRQ EHOLHI WKDW WKHUH LV D KLJK OHYHO RI MRE GLVVDWLVIDFWLRQ DPRQJ VFKRRO FRXQVHORUV DQG WKDW WKLV LV DIIHFWLQJ WKHLU HIIHFWLYHQHVV LQ WKH VFKRROV :HOOV t 5LWWHU f +RZHYHU WKLV YLHZ VHHPV WR EH SHUSHWXDWHG E\ PDQ\ SHUVRQV ZKR DUH QRW FXUUHQWO\ LQYROYHG LQ WKH SUDFWLFH RI VFKRRO FRXQVHOLQJ DQG OLWWOH KDV EHHQ GRQH WR GHWHUPLQH VFKRRO FRXQVHORUVn YLHZV 7KHUHIRUH WKHUH H[LVWV D QHHG WR GHWHUPLQH VFKRRO FRXQVHORUVn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

PAGE 12

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f HDFK ZHHN DQG VFKRRO FRXQVHORUVn SHUFHSWLRQV RI WKH GHJUHH RI MRE FKDOOHQJH DGHTXDF\ RI HGXFDWLRQDO WUDLQLQJ DQG MRE H[SHFWDWLRQV" 1HHG IRU WKH 6WXG\ :KDW DUH VFKRRO FRXQVHORUVn SHUFHSWLRQV RI WKHLU MREV" $UH VFKRRO FRXQVHORUV VDWLVILHG RU GLVVDWLVILHG ZLWK WKHLU SURIHVVLRQ" $ OLPLWHG DPRXQW RI HPSLULFDO GDWD LV DYDLODEOH

PAGE 13

WR DQVZHU WKHVH TXHVWLRQV 7KH VWXGLHV RI VFKRRO FRXQVHORUVn UHDFWLRQV WR WKHLU MREV FDQ EH VHSDUDWHG LQWR WKUHH FDWHJRULHV VWXGLHV RI RFFXSDWLRQDO EXUQRXW RFFXSDWLRQDO VWUHVV DQG MRE VDWLVIDFWLRQ $GGUHVVLQJ WKH SKHQRPHQRQ RI RFFXSDWLRQDO EXUQRXW VHYHUDO DXWKRUV KDYH SUHVHQWHG DQ DODUPLQJ SLFWXUH RI EXUQRXW DPRQJ FRXQVHORUV %R\ t 3LQH 6DYLFNL t &RROH\ :DUQDWK t 6KHOWRQ :DWNLQV :HOFK 0HGHLURV t 7DWH f $OWKRXJK QRQH RI WKHVH ZULWHUV SUHVHQW GDWD WR VXSSRUW WKHLU REVHUYDWLRQV WKH\ KDYH FRQWULEXWHG WR WKH SUHYDLOLQJ QRWLRQ WKDW D KLJK OHYHO RI EXUQRXW LV UDPSDQW DPRQJ WKLV SURIHVVLRQDO JURXS $GGLWLRQDOO\ DOWKRXJK ZULWHUV GR QRW VSHFLILFDOO\ DGGUHVV VFKRRO FRXQVHORUV LW KDV RIWHQ EHHQ FRQFOXGHG WKDW KLJK OHYHOV RI EXUQRXW H[LVW DPRQJ VFKRRO FRXQVHORUV VLQFH WKH\ DUH LQ D KHOSLQJ SURIHVVLRQ +RZHYHU DIWHU UHYLHZLQJ FXUUHQW UHVHDUFK LW ZDV FRQFOXGHG WKDW WKLV YLHZ PD\ EH RYHUVWDWHG &XPPLQJV t 1DOO /\QFK 3LHUVRQ t $UFKDPEDXOW f ,Q D QDWLRQDO VXUYH\ RI WKH $6&$nV PHPEHUV FRQGXFWHG E\ /\QFK f b RI WKH UHVSRQGHQWV LQGLFDWHG WKDW WKH\ ZHUH QRW YHU\ DQ[LRXV 7KLV VWXG\ ZDV FRQGXFWHG WR GHWHUPLQH Df VRXUFHV RI MRE VWUHVV Ef DFWLYLWLHV XVHG E\ VFKRRO FRXQVHORUV WR UHGXFH VWUHVV DQG Ff SK\VLFDO DQG PHQWDO KHDOWK SUREOHPV UHODWHG WR VWUHVV ,Q WKH VWXG\ VWUHVV ZDV XVHG V\QRQ\PRXVO\ ZLWK EXUQRXW DQG ZDV DVFHUWDLQHG E\ D TXHVWLRQQDLUH GHYHORSHG E\ /\QFK /\QFK

PAGE 14

DWWULEXWHG WKH ILQGLQJ RI ORZ OHYHOV RI VFKRRO FRXQVHORU EXUQRXW WR WKH IDFWV WKDW VFKRRO FRXQVHORUV DUH QRW DOZD\V LQ DV VWUHVVIXO VLWXDWLRQV DV WHDFKHUV DQG WKH VFKRRO FRXQVHORUVn WUDLQLQJ ZKLFK SUHSDUHG WKHP IRU GHDOLQJ ZLWK VWUHVV $OWKRXJK WKH UHVXOWV RI WKH VWXG\ VXJJHVWHG WKDW VFKRRO FRXQVHORUV GR QRW H[SHULHQFH KLJK OHYHOV RI EXUQRXW LW ZDV QRW ZHOO GRFXPHQWHG DQG VR LWV UHVXOWV PXVW EH FRQVLGHUHG WHQWDWLYHO\ 7KH ILQGLQJV RI 3LHUVRQ DQG $UFKDPEDXOW f ZHUH FRQVLVWHQW ZLWK WKRVH RI /\QFK f 3LHUVRQ DQG $UFKDPEDXOW REVHUYHG WKDW VFKRRO FRXQVHORUV OLNH WHDFKHUV DQG RWKHU VWXGHQW SHUVRQQHO ZRUNHUV LQ &RQQHFWLFXWnV SXEOLF VFKRROV H[SHULHQFHG RQO\ PRGHUDWH OHYHOV RI EXUQRXW DQG UROH VWUHVV 7R PHDVXUH EXUQRXW WKH 0DVODFK %XUQRXW ,QYHQWRU\ ZDV XVHG ZKLOH WKH 5ROH 4XHVWLRQQDLUH ZDV XVHG WR GHWHUPLQH UROH VWUHVV 2I DOO WKH JURXSV VFKRRO FRXQVHORUV LQGLFDWHG WKH KLJKHVW OHYHOV RI UROH DPELJXLW\ RQ WKH 5ROH 4XHVWLRQQDLUH 7KLV ILQGLQJ LV DOVR VLPLODU WR WKDW RI 'D\ DQG 6SDUDFLR f ZKR LQGLFDWHG WKDW WKH UROHV RI VFKRRO FRXQVHORUV ZHUH QRW FOHDUFXW ,W VKRXOG EH QRWHG KRZHYHU WKDW WKH 3LHUVRQ DQG $UFKDPEDXOW VWXG\ ZDV UHJLRQDO DQG VR LW PD\ EH OLPLWHG LQ JHQHUDOL]DELOLW\ ,Q DQRWKHU VWXG\ RI EXUQRXW &XPPLQJV DQG 1DOO f VRXJKW WR GHWHUPLQH LI VFKRRO FRXQVHORU EXUQRXW ZDV LQIOXHQFHG E\ VFKRRO DGPLQLVWUDWRUVn OHDGHUVKLS VW\OHV $IWHU VXUYH\LQJ UDQGRPO\ VHOHFWHG VFKRRO FRXQVHORUV LQ HDVWHUQ ,RZD WKH\ IRXQG WKDW WKRVH ZLWK DGPLQLVWUDWRUV ZKR XVHG DXWKRULWDULDQ OHDGHUVKLS VW\OHV WHQGHG WR UHSRUW KLJKHU

PAGE 15

OHYHOV RI EXUQRXW WKDQ GLG VFKRRO FRXQVHORUV ZKRVH DGPLQLVWUDWRUV XVHG D SDUWLFLSDWLYH VW\OH RI OHDGHUVKLS $OWKRXJK WKLV VWXG\ PD\ EH KHOSIXO WR DGPLQLVWUDWRUV ZKR ZDQ WR KHOS VFKRRO FRXQVHORUV DYRLG EXUQRXW WKH YDOLGLW\ RI WKHVH UHVXOWV LV OLPLWHG DV EXUQRXW ZDV GHWHUPLQHG E\ D VLQJOH TXHVWLRQ RQ WKH VXUYH\ ,W KDV EHHQ QRWHG WKDW VRPH LQYHVWLJDWLRQV RI VFKRRO FRXQVHORUVn UHDFWLRQV WR WKHLU MREV DUH VWXGLHV RI RFFXSDWLRQDO VWUHVV 2QH VXFK VWXG\ ZDV FRQGXFWHG E\ %XWFNH 0RUDFFR DQG 0F(ZHQ f ZKR VXUYH\HG PHPEHUV RI WKH $6&$ XVLQJ WKH &RXQVHORU 2FFXSDWLRQDO 6WUHVV ,QYHQWRU\ 7KH DLP RI WKLV ZHOOGHVLJQHG VWXG\ ZDV WR GHWHUPLQH WKH IDFWRUV WKDW FRQWULEXWHG WR VFKRRO FRXQVHORUVn MRE VWUHVV 6L[ VRXUFHV RI VWUHVV ZHUH LGHQWLILHG IURP UHSRUWV RI UHVSRQGHQWV 7KHVH ZHUH Df ODFN RI GHFLVLRQPDNLQJ DXWKRULW\ Ef ILQDQFLDO VHFXULW\ Ff QRQSURIHVVLRQDO GXWLHV Gf SURIHVVLRQDO MRE RYHUORDG Hf VFKRRO FRXQVHORU WHDFKHU UHODWLRQVKLSV DQG If VFKRRO FRXQVHORUSULQFLSDO UHODWLRQVKLSV :KLOH WKLV VWXG\ GLG SURYLGH LQIRUPDWLRQ DERXW VRXUFHV RI VFKRRO FRXQVHORU VWUHVV LW DOVR JDYH FUHGHQFH WR WKH SRSXODU YLHZ WKDW FRXQVHOLQJ LV D YHU\ VWUHVVIXO RFFXSDWLRQ EHFDXVH WKH DXWKRUV GLG QRW UHSRUW ZKDW SHUFHQWDJH RI WKHLU VDPSOH ZDV H[SHULHQFLQJ VWUHVV 7KHUHIRUH LW FRXOG EH FRQVWUXHG WKDW DOO VFKRRO FRXQVHORUV LQ WKLV VWXG\ ZHUH VXIIHULQJ IURP VWUHVV ,Q H[WUDSRODWLQJ IURP WKLV LW FRXOG EH SHUFHLYHG WKDW DOO VFKRRO FRXQVHORUV DUH VWUHVVHG

PAGE 16

,Q DGGLWLRQ WR H[DPLQLQJ RFFXSDWLRQDO EXUQRXW DQG VWUHVV DPRQJ VFKRRO FRXQVHORUV VRPH UHVHDUFKHUV KDYH FRQGXFWHG MRE VDWLVIDFWLRQ VWXGLHV WR LQYHVWLJDWH VFKRRO FRXQVHORUV UHDFWLRQV WR WKHLU MREV )RU H[DPSOH :LJJLQV f IRXQG D VLJQLILFDQW UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG FRQJUXHQFH EHWZHHQ VFKRRO FRXQVHORUVn SHUVRQDOLW\ FRGHV RQ +ROODQGnV 9RFDWLRQDO 3UHIHUHQFH ,QYHQWRU\ DQG WKH VFKRRO FRXQVHORUVn RFFXSDWLRQDO FRGH 6,$f LQ WKH 2FFXSDWLRQV )LQGHU -RE VDWLVIDFWLRQ ZDV PHDVXUHG E\ WKH 7DVN+\JLHQH -RE 6DWLVIDFWLRQ %ODQN GHVLJQHG E\ :LJJLQVf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n UHDFWLRQV WR WKHLU MREV $GGLWLRQDOO\ WKH IHZ H[LVWLQJ VWXGLHV RI VFKRRO FRXQVHORU VDWLVIDFWLRQ KDYH XVHG YDU\LQJ PHDVXUHV RI MRE VDWLVIDFWLRQ DQG UHJLRQDO VDPSOHV LQ DGGUHVVLQJ WKH WRSLF +HQFH WKH UHVXOWV IURP WKHVH VWXGLHV DUH RIWHQ FRQWUDGLFWRU\ DQG RI TXHVWLRQDEOH JHQHUDOL]DELOLW\ ,W VKRXOG DOVR EH QRWHG WKDW H[LVWLQJ VWXGLHV WHQG WR WUHDW VFKRRO FRXQVHORUV DV D KRPRJHQRXV JURXS GLVUHJDUGLQJ

PAGE 17

GLIIHUHQFHV WKDW PD\ RFFXU DV D UHVXOW RI VHUYLQJ VWXGHQW SRSXODWLRQV RI GLIIHULQJ DJH JURXSV 7KXV WKHUH LV D QHHG IRU FRPSUHKHQVLYH VWXGLHV RI MRE VDWLVIDFWLRQ DPRQJ VFKRRO FRXQVHORUV 2QH DSSURDFK WR D FRPSUHKHQVLYH VWXG\ RI MRE VDWLVIDFWLRQ LV WR XVH D FRQFHSWXDO EDVH XSRQ ZKLFK WR EXLOG WKH UHVHDUFK TXHVWLRQV 7KHUHIRUH WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f ZDV XVHG WR SURYLGH D IUDPHZRUN IRU WKLV VWXG\ RI VFKRRO FRXQVHORU MRE VDWLVIDFWLRQ 'DZLV DQG /RITXLVW f SUHVHQW WKH LGHD WKDW MRE VDWLVIDFWLRQ LV WKH UHVXOW RI WKH LQWHUDFWLRQ EHWZHHQ WKH UHTXLUHPHQWV RI ERWK LQGLYLGXDOV DQG WKHLU ZRUN HQYLURQPHQWV ,QGLYLGXDOV KDYH FHUWDLQ QHHGV RU UHLQIRUFHU UHTXLUHPHQWV WKDW PXVW EH PHW E\ WKH ZRUN HQYLURQPHQW :KHQ WKLV RFFXUV MRE VDWLVIDFWLRQ UHVXOWV DQG LV LQGLFDWHG E\ DQ LQGLYLGXDOnV WHQXUH LH FKRLFH WR UHPDLQ LQ WKH ZRUN HQYLURQPHQWf ,Q VXPPDU\ WKH SUREDELOLW\ WKDW DQ LQGLYLGXDO ZLOO YROXQWDULO\ OHDYH WKH ZRUN HQYLURQPHQW LV LQYHUVHO\ UHODWHG WR WKH LQGLYLGXDOnV VDWLVIDFWLRQ 'DZLV t /RITXLVW S f $Q RXWJURZWK RI WKH WKHRU\ RI ZRUN DGMXVWPHQW ZDV WKH GHYHORSPHQW RI WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH 064f GHYHORSHG E\ :HLVV 'DZLV (QJODQG DQG /RITXLVW LQ DQG UHYLVHG LQ 7KLV LQVWUXPHQW PHDVXUHV LQGLYLGXDOVn VDWLVIDFWLRQ ZLWK DVSHFWVIDFHWV RI WKHLU MREV DV ZHOO DV RYHUDOO MRE VDWLVIDFWLRQ

PAGE 18

5DWLRQDOH IRU 6WXG\ $IWHU UHYLHZLQJ WKH OLWHUDWXUH RQ VFKRRO FRXQVHORUVn UHDFWLRQV WR WKHLU MREV LW ZDV FRQFOXGHG WKDW PDQ\ ZHUH H[SHULHQFLQJ QHJDWLYH UHDFWLRQV WR WKHLU MREV HJ 6DYLFNL t &RROH\ :DUQDWK t 6KHOWRQ f ,I VR VFKRRO FRXQVHORUV FRXOG EH QHJDWLYH LQIOXHQFHV LQ WKH OLYHV RI VWXGHQWV DQG WKXV FRXOG LPSDFW QHJDWLYHO\ RQ VWXGHQWVn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

PAGE 19

PDWFKLQJ WKHLU SHUVRQDO FKDUDFWHULVWLFV ZLWK WKRVH RI YDULRXV MREV LQ RUGHU WR GHWHUPLQH D FRPSOHPHQWDU\ FRPELQDWLRQ %\ LGHQWLI\LQJ WKH VDWLVI\LQJ HOHPHQWV RI WKH VFKRRO FRXQVHORUnV MRE WKLV VWXG\ SURYLGHV LQIRUPDWLRQ WKDW ZLOO KHOS SRWHQWLDO VFKRRO FRXQVHORUV WR PDNH PRUH UHDOLVWLF GHFLVLRQV DERXW ZKHWKHU RU QRW WR EHFRPH VFKRRO FRXQVHORUV )RU DGPLVVLRQ WR WKHLU SURJUDPV VFKRRO FRXQVHORU HGXFDWRUV VHOHFW DQG UHFUXLW VWXGHQWV ZKRP WKH\ EHOLHYH ZLOO EH DEOH WR EH VDWLVILHG DQG VXFFHVVIXO LQ VFKRRO FRXQVHOLQJ 7KHUHIRUH WKH PRUH VFKRRO FRXQVHORU HGXFDWRUV NQRZ DERXW WKH FRQWULEXWRUV WR VFKRRO FRXQVHORUVn VDWLVIDFWLRQ WKH EHWWHU ZLOO EH WKHLU VHOHFWLRQV 7KLV VWXG\ SURYLGHV VFKRRO FRXQVHORU HGXFDWRUV DQG VWXGHQWV ZLWK LQIRUPDWLRQ WR IDFLOLWDWH WKHLU VHOHFWLRQ SURFHVVHV $GGLWLRQDOO\ WKLV LQIRUPDWLRQ FDQ EH LQFRUSRUDWHG LQWR SURIHVVLRQDO GHYHORSPHQW FXUULFXOD WR HQVXUH WKDW VWXGHQWV DUH SUHVHQWHG ZLWK D UHDOLVWLF SLFWXUH RI VFKRRO FRXQVHOLQJ DQG WKHUHIRUH EH IRUHDUPHG ZLWK VWUDWHJLHV WR PHHW WKH GHPDQGV RI WKH SURIHVVLRQ 6LQFH D IXQFWLRQ RI SURIHVVLRQDO RUJDQL]DWLRQV HJ WKH $6&$f LV WKH SURPRWLRQ RI WKH ZHOIDUH RI LWV PHPEHUV LQIRUPDWLRQ IURP WKLV VWXG\ FDQ EH XVHG E\ VXFK RUJDQL]DWLRQV WR GHYHORS SURJUDPV WKDW SURPRWH MRE VDWLVIDFWLRQ DPRQJ WKHLU PHPEHUV

PAGE 20

'HILQLWLRQ RI 7HUPV &RQWURO RI VFKRRO UHIHUV WR WKH VRXUFH IURP ZKLFK WKH RSHUDWLQJ IXQGV IRU WKH VFKRRO DUH GHULYHG 6RXUFH RI FRQWURO FDQ EH SXEOLF LH VXSSRUWHG E\ ORFDO FRXQW\ VWDWH RU IHGHUDO JRYHUQPHQWf RU SULYDWH LH VXSSRUWHG E\ D QRQJRYHUQPHQWDO DJHQF\ LQFOXGLQJ UHOLJLRXV RUJDQL]DWLRQVf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nV DSSUDLVDO RI WKH H[WHQW WR ZKLFK WKH ZRUN HQYLURQPHQW IXOILOOV WKH LQGLYLGXDOnV QHHGV 'DZLV t /RITXLVW S f ,Q WKLV VWXG\ MRE VDWLVIDFWLRQ ZDV PHDVXUHG E\ WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH

PAGE 21

-RE WHQXUH LV WKH WLPH VSHQW LQ D SDUWLFXODU SRVLWLRQ 'DZLV t /RITXLVW S f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t /RITXLVW Sf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

PAGE 22

6HWWLQJ RI VFKRRO GHVFULEHV WKH VL]H RI WKH SRSXODFH RI WKH FLW\ LQ ZKLFK WKH VFKRRO LV ORFDWHG ,Q WKLV VWXG\ VHWWLQJ LV UHIHUUHG WR DV XUEDQ LH D FLW\ ZLWK SRSXODWLRQ RI RU PRUHf RU UXUDO LH D FLW\ ZLWK SRSXODWLRQ RI RU OHVVf 86 'HSDUWPHQW RI &RPPHUFH f 6RXUFHV RI MRE VDWLVIDFWLRQ UHIHU WR VFKRRO FRXQVHORUVn QHHGV UHTXLUHPHQWV DV LQGLFDWHG RQ WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH

PAGE 23

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f 0RUH UHFHQWO\ WKLV VHQWLPHQW ZDV HFKRHG E\ +HUU f ZKR DUJXHG WKDW LQ RUGHU IRU $PHULFDQ VWXGHQWV WR DFKLHYH H[FHOOHQFH LQ VFKRRO DQG WKH ZRUNSODFH DWWHQWLRQ PXVW EH IRFXVHG RQ WKH HPRWLRQDO YDOXHV DQG GHFLVLRQPDNLQJ FRPSRQHQWV WKDW VFKRRO FRXQVHORUV DQG JXLGDQFH SURFHVVHV FRQWULEXWH WR WKH RYHUDOO HGXFDWLRQDO PLVVLRQ S f 7KH IDFW WKDW VFKRRO FRXQVHORUV DUH FRQVLGHUHG LPSRUWDQW VFKRRO SHUVRQQHO ZDV UHIOHFWHG LQ WKH *DOOXS 3ROO (ODP f ZKHUH b RI DOO SHUVRQV LQ WKH QDWLRQDO VXUYH\ LQGLFDWHG WKDW WKH\ EHOLHYHG WKDW VFKRRO FRXQVHORUV ZHUH ZRUWK WKH DGGHG FRVWV

PAGE 24

:K\ DUH VFKRRO FRXQVHORUV FRQVLGHUHG WR EH VXFK DQ LQWHJUDO SDUW RI WKH HGXFDWLRQDO V\VWHP" 7KLV FDQ EH DWWULEXWHG WR WKH UROH WKH\ SOD\ LQ WKH QDWLRQnV HOHPHQWDU\ PLGGOHMXQLRU DQG VHQLRU KLJK VFKRROV +HUH WKH DLP RI HDFK VFKRRO FRXQVHORU LV WR VHUYH WKH QHHGV RI WKH VWXGHQWV DQG WKHUHE\ HQKDQFH HDFK VWXGHQWnV HGXFDWLRQDO YRFDWLRQDO DQG SV\FKRn VRFLDO GHYHORSPHQW 3UDFWLFH RI *XLGDQFH f 7R DFKLHYH WKLV DLP VFKRRO FRXQVHORUV SHUIRUP VHYHUDO UROHV DQG IXQFWLRQV ,Q WKH HOHPHQWDU\ VFKRRO WKH VFKRRO FRXQVHORU ZRUNV ZLWK SDUHQWV DQG WHDFKHUV WR HQVXUH WKDW WKH VWXGHQWV GHYHORS SRVLWLYH DWWLWXGHV WRZDUG VFKRRO VHOIHVWHHP JRRG VRFLDO VNLOOV DQG WKH OLNH &RXQVHORUV DOVR ZRUN ZLWK RWKHU VWXGHQW SHUVRQQHO VWDII WR LGHQWLI\ DQG UHPHGLDWH VWXGHQWV ZLWK GHYHORSPHQWDO GHILFLHQFLHV DQG KDQGLFDSV 3UDFWLFH RI‘ *XLGDQFH f ,Q WKH XSSHU HOHPHQWDU\ JUDGHV VWXGHQWV DUH LQWURGXFHG WR WKH UHODWLRQVKLS EHWZHHQ HGXFDWLRQDO FKRLFHV DQG FDUHHU SODQQLQJ DQG WKLV FRQFHSW LV IXUWKHU GHYHORSHG LQ PLGGOH RU MXQLRU KLJK VFKRRO &RXQVHORUV DOVR KHOS VWXGHQWV WR PDNH WKH WUDQVLWLRQ IURP HOHPHQWDU\ WR PLGGOH VFKRRO WKURXJK JXLGDQFH DFWLYLWLHV ,Q FRQVXOWDWLRQV ZLWK WHDFKHUV VFKRRO FRXQVHORUV KHOS WR GHVLJQ FXUULFXOD WKDW ZLOO KHOS WKH VWXGHQWV JDLQ JUHDWHU VHOINQRZOHGJH DQG XQGHUVWDQGLQJ 3UDFWLFH RI *XLGDQFH f ,Q KLJK VFKRRO FDUHHU JXLGDQFH DQG FRXQVHOLQJ DUH RI SDUDPRXQW LPSRUWDQFH DV VWXGHQWV PXVW PDNH FDUHHU GHFLVLRQV LQ SUHSDUDWLRQ IRU OLIH EH\RQG KLJK VFKRRO $V VXFK VFKRRO

PAGE 25

FRXQVHORUV DVVLVW VWXGHQWV LQ DVVHVVLQJ WKHLU LQWHUHVWV DELOLWLHV DQG VR IRUWK DQG LQ XVLQJ WKLV LQIRUPDWLRQ WR PDNH HGXFDWLRQDO DQG YRFDWLRQDO SODQV &RXQVHORUV DOVR ZRUN ZLWK WHDFKHUV DQG SDUHQWV LQ WKH SURFHVV RI KHOSLQJ VWXGHQWV RYHU WKH DGROHVFHQW KXUGOHV DQG WR SURYLGH UHPHGLDWLRQ IRU VWXGHQWV ZLWK HPRWLRQDO DQG YRFDWLRQDO SUREOHPV DORQJ ZLWK VFKRRO SV\FKRORJLVWV DQG RWKHU PHPEHUV RI WKH VWXGHQW SHUVRQQHO WHDP 3UDFWLFH RI *XLGDQFH f $OWKRXJK +HUU f DQG WKH $PHULFDQ 6FKRRO &RXQVHORU $VVRFLDWLRQ $6&$f LQ LWV UROH VWDWHPHQW 3UDFWLFH RI *XLGDQFH f DVVHUWHG WKDW VFKRRO FRXQVHORUV E\ YLUWXH RI WKH UROH WKH\ SHUIRUP DUH DVVHWV WR WKH HGXFDWLRQDO V\VWHP VRPH FULWLFV FKDOOHQJH WKLV YLHZ )RU H[DPSOH $XEUH\ f FRQWHQGHG WKDW WKH ZRUN RI VFKRRO FRXQVHORUV HQWDLOV LQRUGLQDWH DPRXQWV RI WLPH LQ FOHULFDO DQG DGPLQLVWUDWLYH WDVNV WKDW FRXOG MXVW DV HDVLO\ EH DFFRPSOLVKHG E\ FRPSXWHUV RU SDUDSURIHVVLRQDOV DW D ORZHU FRVW S f +RZHYHU :KLWKDP f KDV VXJJHVWHG WKDW RQH UHDVRQ IRU WKH VFKRRO FRXQVHORUVn UHTXLUHG ORDG RI QRQSURIHVVLRQDO GXWLHV LV WKH IDFW WKDW WKH VFKRRO FRXQVHORU UROH ZDV QHYHU ZHOO GHILQHG DQG QHLWKHU ZDV WKH VFKRRO FRXQVHORUnV SRVLWLRQ LQ UHODWLRQVKLS WR RWKHU SRVLWLRQV LQ WKH VFKRRO V\VWHP 5HVSRQGLQJ WR WKH WKH QHHG IRU FODULI\LQJ WKH VFKRRO FRXQVHORUnV UROH WKH $6&$ GHYHORSHG DQG UHILQHG SRVLWLRQ VWDWHPHQWV FRQFHUQLQJ WKH UROH DQG IXQFWLRQ RI VFKRRO FRXQVHORUV LQ HOHPHQWDU\ WKURXJK SRVWVHFRQGDU\ LQVWLWXWLRQV GXULQJ WKH V ,Q WKH $6&$ SXEOLVKHG D UROH VWDWHPHQW

PAGE 26

WKDW LQFRUSRUDWHG DOO SUHYLRXV VWDWHPHQWV 3UDFWLFH RI *XLGDQFH f 3UHVHQWO\ WKH $6&$ ZRUNV ZLWK SULQFLSDOV DW WKH ORFDO DQG QDWLRQDO OHYHOV WR SURPRWH XQGHUVWDQGLQJ RI DQG DSSUHFLDWLRQ IRU WKH UROH RI VFKRRO FRXQVHORUV ,W LV DOVR WKH $6&$nV JRDO WR HVWDEOLVK UHODWLRQVKLSV ZLWK WKH 1DWLRQDO 3DUHQW 7HDFKHUV $VVRFLDWLRQ &RXQFLO WKH $PHULFDQ )HGHUDWLRQ RI 7HDFKHUV DQG WKH 1DWLRQDO (GXFDWLRQDO $VVRFLDWLRQ WR KHOS WKHVH JURXSV WR XQGHUVWDQG WKH XQLTXH SRVLWLRQ RI VFKRRO FRXQVHORUV 0LQNRII t 7HUUHV f $QRWKHU UHDVRQ IRU VFKRRO FRXQVHORUV SUHSRQGHUDQFH ZLWK QRQFRXQVHOLQJ DFWLYLWLHV ZDV VXJJHVWHG E\ 7KRPDV DQG 0\ULFN f ZKR QRWHG WKDW VFKRRO FRXQVHORUV RIWHQ UHSRUW WKDW WKH\ IHHO SRZHUOHVV LQ PDNLQJ GHFLVLRQV DERXW WKHLU UROHV DQG IXQFWLRQV S f 2Q WKH RWKHU KDQG :HOOV DQG 5LWWHU f FRXQWHUHG WKDW VFKRRO FRXQVHORUV QHHG WR GHWHUPLQH WKHLU RZQ MRE UROHV DQG IXQFWLRQV 3HUKDSV WKLV LV PRUH HDVLO\ VDLG WKDQ GRQH IRU DV 0RRUH f DQG 6FRWW f H[SODLQHG ZKHQHYHU SURIHVVLRQDOV EHFRPH HPSOR\HG UDWKHU WKDQ EHLQJ VHOIHPSOR\HGf WKHLU SURIHVVLRQDO DXWRQRP\ LV RIWHQ HURGHG $QRWKHU SUREOHP WKDW HPSOR\HHSURIHVVLRQDOV IDFH LV UROH FRQIOLFW 0RRUH f 7KLV RFFXUV ZKHQ WKHUH DUH GLIIHUHQFHV LQ WKH GHPDQGV RI WKH HPSOR\HU DQG WKH HPSOR\HHnV SURIHVVLRQDO QRUPV ,Q VFKRRO FRXQVHOLQJ WKH FRQIOLFW VWHPV IURP WKH DGPLQLVWUDWRUVn UHTXLUHPHQWV RI QRQSURIHVVLRQDO DFWLYLWLHV HJ VFKHGXOLQJ DQG PDLQWDLQLQJ DWWHQGDQFH UHFRUGVf 'D\ t 6SDUDFLR f DQG WKH VFKRRO

PAGE 27

FRXQVHORUVn OR\DOWLHV WR WKH SUDFWLFH RI FRXQVHOLQJ FRQVXOWLQJ DQG JXLGDQFH ,Q FDVHV ZKHUH HPSOR\HHV H[SHULHQFH FRQIOLFWV EHWZHHQ WKHLU HPSOR\HUV DQG SURIHVVLRQDO EHOLHIV HPSOR\HHV RIWHQ UHEHO DJDLQVW WKH HPSOR\HUV VLQFH WKH\ EHOLHYH WKDW SURIHVVLRQDO DOOHJLDQFH LV PRUH LPSRUWDQW WKDQ OR\DOW\ WR WKH HPSOR\HUV 6FRWW f $V D ZKROH VFKRRO FRXQVHORUV KDYH QRW UHEHOOHG DJDLQVW GRLQJ QRQSURIHVVLRQDO GXWLHV DQG WKLV LV SUREDEO\ GXH WR WKH IDFW WKDW VFKRRO FRXQVHOLQJ LV VWLOO LQ WKH SURFHVV RI SURIHVVLRQDOL]DWLRQ DQG VR VFKRRO FRXQVHORUV DUH QRW IXOO\ XQLWHG $FFRUGLQJ WR &DSORZ f WKH SURFHVV RI SURIHVVLRQDOL]DWLRQ LQYROYHV IRXU VWHSV 7KHVH DUH Df HVWDEOLVKPHQW RI D SURIHVVLRQDO RUJDQL]DWLRQ Ef QDPH FKDQJH Ff GHYHORSPHQW RI D SURIHVVLRQDO FRGH RI HWKLFV DQG Gf SROLWLFDO DJLWDWLRQ 'XULQJ WKH ILUVW VWHS WKH JURXS HVWDEOLVKHV D SURIHVVLRQDO RUJDQL]DWLRQ ZKLFK KDV PHPEHUVKLS FULWHULD WKDW H[FOXGH XQTXDOLILHG SHUVRQQHO $Q H[DPSOH RI WKLV LV WKH $PHULFDQ 0HGLFDO $VVRFLDWLRQ ZKLFK LV UHVWULFWHG WR SK\VLFLDQV $PHULFDQ 0HGLFDO $VVRFLDWLRQ f 7KLV LV LQ FRQWUDVW WR WKH $6&$ ZKLFK LQFOXGHV LQ LWV PHPEHUVKLS DQ\ SHUVRQ HQJDJHG LQ DFWLYLWLHV KDYLQJ DQ LPSDFW RQ D VWXGHQWnV VXFFHVV DQG ZHOO EHLQJ DW VFKRRO ZRUN DQG KRPH 0LQNRII t 7HUUHV S f 7KLV RSHQHQGHG PHPEHUVKLS SROLF\ FRXOG XQGHUPLQH WKH SURIHVVLRQDO VWDWXV RI WKH VFKRRO FRXQVHORU JURXS 7KH VHFRQG VWHS LQ WKH SURIHVVLRQDOL]DWLRQ SURFHVV LV D FKDQJH RI QDPH 7KLV VWHS VHUYHV WR UHGXFH WKH

PAGE 28

LGHQWLILFDWLRQ ZLWK WKH SUHYLRXV RFFXSDWLRQDO VWDWXV 7KH FKDQJH SURFHVV LV H[HPSOLILHG E\ WKH PHGLFDO WHFKQRORJLVWV ZKR SULRU WR ZHUH FDOOHG ODERUDWRU\ WHFKQLFLDQV +RZHYHU DV WKH\ RUJDQL]HG LQWR D SURIHVVLRQDO JURXS WKH\ UHDOL]HG WKDW WKHLU IRUPHU QDPH YDJXHO\ GHVFULEHG WKHLU SURIHVVLRQ DQG VR WKH\ GHYHORSHG D QHZ DQG GHVFULSWLYH QDPH IRU WKHLU SURIHVVLRQ 0HGLFDO 7HFKQRORJ\ f 6FKRRO FRXQVHORUV DUH RIWHQ UHIHUUHG WR DV VFKRRO JXLGDQFH FRXQVHORUV HJ 0LOOHU f EXW $XEUH\ f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f VFKRRO FRXQVHORUV ZHUH H[KRUWHG WR EH JXLGHG E\ WKH VRXQG HWKLFDO SUDFWLFHV IRU SURIHVVLRQDO FRXQVHORUV DV HPERGLHG LQ WKH (WKLFDO 6WDQGDUGV RI WKH $PHULFDQ 3HUVRQQHO DQG *XLGDQFH $VVRFLDWLRQ$PHULFDQ 6FKRRO &RXQVHORU $VVRFLDWLRQ S f 7KH ILQDO VWDJH RI SURIHVVLRQDOL]DWLRQ LV LQYROYHPHQW LQ SROLWLFDO DJLWDWLRQ 'XULQJ WKLV VWDJH WKH JURXSnV

PAGE 29

REMHFWLYH LV WR JDLQ SXEOLF DFFHSWDQFH DQG WR FRQYLQFH WKH SXEOLF RI WKH QHHG IRU UHFRJQL]LQJ WKLV H[FOXVLYH JURXS RI SURIHVVLRQDOV 7R DFFRPSOLVK WKLV WKH SURIHVVLRQDO JURXS XVXDOO\ VHWV DGPLVVLRQ DQG JUDGXDWLRQ VWDQGDUGV IRU WKRVH HQWHULQJ DQG JUDGXDWLQJ IURP WKHLU SURIHVVLRQDO WUDLQLQJ VFKRROV DQG HVWDEOLVKHV LQYLRODEOH FRQILGHQWLDOLW\ SULYLOHJHV 7KLV VWHS KDV QRW EHHQ IXOO\ PDVWHUHG E\ VFKRRO FRXQVHORUV IRU DOWKRXJK 0LQNRII DQG 7nHUUHV f LQGLFDWHG WKDW WKH $6&$ KDV EHHQ DQG FRQWLQXHV WR EH SROLWLFDOO\ DFWLYH 7KRPDV DQG 0YULFN f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

PAGE 30

RYHU PHGLFDO DIIDLUV $PHULFDQ 0HGLFDO $VVRFLDWLRQ S f KDV EHHQ LQ H[LVWHQFH IRU RYHU D FHQWXU\ ZKLOH WKH $6&$ LV RQO\ \HDUVROG ,W KDV EHHQ VXJJHVWHG KHUH WKDW VFKRRO FRXQVHORUV KDYH QRW UHEHOOHG DJDLQVW WKHLU UHTXLUHG QRQSURIHVVLRQDO GXWLHV EHFDXVH WKH\ DUH QRW XQLWHG E\ WKH ERQGV RI D IXOO SURIHVVLRQDO VWDWXV +RZHYHU LW FRXOG DOVR EH K\SRWKHVL]HG WKDW WKH VFKRRO FRXQVHORUVn LQHUWLD LV GXH WR WKHLU VDWLVIDFWLRQ ZLWK WKHLU MREV DV VDWLVILHG SHRSOH KDYH QR QHHG WR FKDQJH WKH FRQGLWLRQV RI WKHLU MREV -RE 6DWLVIDFWLRQ 7KHRULHV /RFNH f DGYLVHG UHVHDUFKHUV WKDW WR H[SODLQ MRE VDWLVIDFWLRQ WKH ILUVW TXHVWLRQ D VFLHQWLILF LQYHVWLJDWRU PXVW DVN LV QRW n+RZ FDQ PHDVXUH LW"n EXW UDWKHU n:KDW LV LW"n S f )ROORZLQJ /RFNHnV DGPRQLWLRQ WKLV VHFWLRQ LV GHVLJQHG WR SURYLGH DQ RYHUYLHZ RI WKH VWXG\ RI MRE VDWLVIDFWLRQ DQG D UHYLHZ RI WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f 7UDGLWLRQDO 7KHRU\ 7KH HDUOLHVW V\VWHPDWLF VWXG\ RI MRE VDWLVIDFWLRQ KDV EHHQ DWWULEXWHG WR 5REHUW +RSSRFN %XUU *UXQHEHUJ f ZKR EHOLHYHG WKDW SHRSOHnV DWWLWXGHV WR WKHLU MREV IHOO DORQJ D VDWLVIDFWLRQGLVVDWLVIDFWLRQ FRQWLQXXP +RSSRFN f EHOLHYHG WKDW VDWLVIDFWLRQ RFFXUUHG ZKHQ WKHUH ZDV WKH SUHVHQFH RI DQ\ FRPELQDWLRQ RI SV\FKRORJLFDO

PAGE 31

SK\VLRORJLFDO DQG HQYLURQPHQWDO FLUFXPVWDQFHV WKDW FDXVH D SHUVRQ WUXWKIXOO\ WR VD\ n, DP VDWLVILHG ZLWK P\ MREn S f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f 7KH SXUSRVH RI KLV LQYHVWLJDWLRQ ZDV WR GHWHUPLQH LI WKHUH ZHUH DQ\ GLIIHUHQFHV EHWZHHQ VDWLVILHG DQG GLVVDWLVILHG ZRUNHUV DQG VLQFH KH EHOLHYHG WKDW WKHUH ZDV QR DFFHSWDEOH PHDQV RI PHDVXULQJ MRE VDWLVIDFWLRQ KH GHYHORSHG KLV RZQ LQVWUXPHQW 7KH -RE 6DWLVIDFWLRQ %ODQN 1R KDG LWHPV ,WHPV DVNHG IRU UHVSRQGHQWVf UHDFWLRQV WR WKHLU MREV LQ JHQHUDO ZKLOH LWHPV VRXJKW WR GHWHUPLQH UHVSRQGHQWVn UHDFWLRQV WR YDULRXV DVSHFWV RI WKHLU MREV HJ VXSHUYLVRUV VDODU\ DQG ZRUNLQJ FRQGLWLRQVf 5HVSRQVHV WR LWHPV ZHUH XVHG WR FRPSXWH D MRE VDWLVIDFWLRQ LQGH[ DQG +RSSRFN f UHSRUWHG D VSOLWKDOI UHOLDELOLW\ FRHIILFLHQW 6SHDUPDQ %URZQ IRUPXODf IRU WKH LQGH[ $ VSOLWKDOI UHOLDELOLW\ FRHIILFLHQW ZDV DOVR FDOFXODWHG IRU LWHPV DQG WKLV ZDV GHWHUPLQHG WR EH +RZHYHU ZKHQ WKH VDWLVIDFWLRQ

PAGE 32

LQGH[ DQG WKH LWHP VFRUH VFRUH GHULYHG IURP LWHPV f ZHUH FRPSDUHG RQO\ D PRGHUDWH FRUUHODWLRQ RI ZDV IRXQG 7KLV LV QRW VXUSULVLQJ DV WKH LQVWUXPHQW LV ORQJ DQG WHGLRXV DQG UHVSRQGHQWV PD\ KDYH JURZQ WLUHG DQG SUREDEO\ UHVSRQGHG OHVV FDUHIXOO\ WR WKH LWHPV ,Q KLV UHVHDUFK +RSSRFN f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f FRQWLQXHG WR XVH DWWLWXGH VXUYH\V LQ KLV UHVHDUFK KH EHPRDQHG WKH IDFW WKDW WKHUH ZDV QR YDOLG REMHFWLYH PHDVXUH RI MRE VDWLVIDFWLRQ ZKLFK ZLOO EH LQGHSHQGHQW RI VXEMHFWnV ZLOOLQJQHVV WR WHOO WKH WUXWK S f 7KLV LV GHILQLWHO\ D GLVDGYDQWDJH LQ XVLQJ DWWLWXGH VXUYH\V +RZHYHU WKLV GLVDGYDQWDJH LV RXWZHLJKHG E\ WKH DGYDQWDJH IRU DV +RSSRFN f QRWHG HDFK HPSOR\HH OLYHV ZLWK KLPVHOI DOO GD\ DQG HYHU\ GD\ KH H[SHULHQFHV KLV RZQ HPRWLRQV LI WKH\ DUH SOHDVDQW KH NQRZV LW LI WKH\ DUH XQSOHDVDQW QR RQH QHHGV WR WHOO KLP VR S f $OWKRXJK +RSSRFN PDGH LQURDGV LQWR WKH VWXG\ RI MRE VDWLVIDFWLRQ KLV ZRUN KDV QRW EHHQ XQFKDOOHQJHG

PAGE 33

+HU]EHUTnV 7KHRU\ 7KH PRVW VLJQLILFDQW FKDOOHQJH WR WKH WUDGLWLRQDO WKHRU\ FDPH IURP +HU]EHUJ ZKR DORQJ ZLWK KLV FROOHDJXHV GHYHORSHG WKH +HU]EHUJnV WZRIDFWRU RU PRWLYDWLRQK\JLHQH 0+f WKHRU\ RI MRE DWWLWXGHV &DUUROO f 7KLV WKHRU\ ZDV ILUVW SXEOLVKHG LQ E\ +HU]EHUJ 0DXVQHU DQG 6Q\GHUPDQ +HU]EHUJ f ZKR FODLPHG WKDW SHRSOH KDG GXDO QDWXUHV 2Q RQH KDQG WKH\ VHHN WR DYRLG SDLQ DQG RQ WKH RWKHU WKH\ VHHN WR JURZ SV\FKRORJLFDOO\ DQG WKHVH QDWXUHV DIIHFW WKHLU DWWLWXGHV WRZDUG WKHLU MREV %DVHG RQ UHVHDUFK WR WHVW WKLV FODLP WKH\ FRQFOXGHG WKDW SHRSOH KDG WZR GLVWLQFW UHDFWLRQV WR WKHLU MREVMRE VDWLVIDFWLRQ DQG MRE GLVVDWLVIDFWLRQ -RE VDWLVIDFWLRQ SURPRWHG SV\FKRORJLFDO JURZWK DQG ZDV GHWHUPLQHG E\ DFKLHYHPHQW UHFRJQLWLRQ ZRUN LWVHOI UHVSRQVLELOLW\ DQG DGYDQFHPHQW 7KHVH VDWLVILHUV ZHUH FDOOHG PRWLYDWRUV DV WKH\ VWLPXODWH SHRSOH WR SHUIRUP EHWWHU RQ WKH MRE 7KHUH DUH DOVR ILYH GLVVDWLVILHUV RU SDLQ SURGXFHUV DQG WKHVH ZHUH FROOHFWLYHO\ UHIHUUHG WR DV K\JLHQHV 7KH K\JLHQHV DUH FRPSDQ\ SROLF\ DGPLQLVWUDWLRQ VXSHUYLVLRQ VDODU\ LQWHUSHUVRQDO UHODWLRQV DQG ZRUNLQJ FRQGLWLRQV 7KH ELJJHVW FRQWHQWLRQ EHWZHHQ WKH WUDGLWLRQDO DQG 0+ WKHRULHV LV WKDW WKH 0+ WKHRU\ DVVHUWV WKDW MRE VDWLVIDFWLRQ DQG GLVVDWLVIDFWLRQ DUH QRW RQ D FRQWLQXXP EXW UDWKHU WZR VHSDUDWH FRQWLQXD +HU]EHUJ f DUJXHG WKDW WKH RSSRVLWH RI MRE VDWLVIDFWLRQ ZRXOG QRW EH MRE GLVVDWLVIDFWLRQ EXW UDWKHU QR MRE VDWLVIDFWLRQ VLPLODUO\

PAGE 34

WKH RSSRVLWH RI MRE GLVVDWLVIDFWLRQ LV QR MRE GLVVDWLVIDFWLRQ QRW VDWLVIDFWLRQ ZLWK RQHnV MRE S f +HU]EHUJ f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f 7KLV PD\ EH GXH WR WKH IDFW WKDW VWXGLHV ZKLFK HPSOR\ PHWKRGV RWKHU WKDQ WKH FULWLFDO LQFLGHQW UHSRUW WHFKQLTXH KDYH IDLOHG WR VXSSRUW +HU]EHUJnV WKHRU\ /RFNH f $OWKRXJK +HU]EHUJ DQG +RSSRFN GLVDJUHHG DERXW WKH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG GLVVDWLVIDFWLRQ ERWK WKHRULVWV KDYH GHPRQVWUDWHG WKDW SHRSOHnV UHDFWLRQV WR WKHLU MREV DUH LQIOXHQFHG E\ MRE DQGRU MRE UHODWHG IDFWRUV +RZHYHU WKLV YLHZ LV FRQVLGHUHG LQDGHTXDWH E\ VRPH WKHRULVWV ZKR EHOLHYH WKDW MRE VDWLVIDFWLRQ LV DOVR LQIOXHQFHG E\ SHUVRQDO FKDUDFWHULVWLFV RI WKH ZRUNHUV

PAGE 35

3HUVRQ(QYLURQPHQW &RQJUXHQF\ 0RGHO $FFRUGLQJ WR .OHLQ DQG :LHQHU f WKHUH LV D WKLUG DSSURDFK WR WKH VWXG\ RI MRE VDWLVIDFWLRQ 7KLV DSSURDFK FRQVLGHUV QRW RQO\ WKH LPSDFW RI MRE DQG MRE UHODWHG IDFWRU RQ HPSOR\HHVn MRE VDWLVIDFWLRQ EXW DOVR FRQVLGHUV SHUVRQDOLW\ YDULDEOHV DQG VR LV FDOOHG WKH SHUVRQ HQYLURQPHQW FRQJUXHQF\ PRGHO 7KHRULVWV XVLQJ WKLV PRGHO EHOLHYH WKDW RQH RU PRUH RI WKUHH HOHPHQWV LQIOXHQFH MRE VDWLVIDFWLRQ 7KHVH WKUHH HOHPHQWV DUH Df SHRSOHnV QHHGV DQG WKH FDSDFLW\ RI WKH ZRUN HQYLURQPHQW WR PHHW WKRVH QHHGV Ef SHRSOHnV YRFDWLRQDO LQWHUHVWV DQG MRE DFWLYLWLHV DQG Ff SHRSOHnV DELOLWLHV DQG WKH VNLOOV GHPDQGHG E\ WKH MRE 7ZR OHDGLQJ SURSRQHQWV RI WKH ILUVW HOHPHQW DUH /RFNH DQG 9URRP ZKR OLNH +HU]EHUJ EHOLHYHG WKDW SHRSOH KDYH D SOHDVXUH VHHNLQJSDLQ DYRLGDQFH QDWXUH 9URRP f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f VWDWHG WKDW MRE VDWLVIDFWLRQ DQG GLVVDWLVIDFWLRQ DUH D IXQFWLRQ RI WKH

PAGE 36

SHUFHLYHG UHODWLRQVKLS EHWZHHQ ZKDW RQH ZDQWV IURP RQHnV MRE DQG ZKDW RQH SHUFHLYHV LW DV RIIHULQJ RU HQWDLOLQJ S f $V VXFK MRE VDWLVIDFWLRQ LV D SOHDVXUDEOH HPRWLRQDO VWDWH ZKLFK RFFXUV ZKHQ LQGLYLGXDOVn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n QHHGV DQG H[SHFWDWLRQV ZKLFK GHYHORS IURP SULRU OHDUQLQJ H[SHULHQFHV $GGUHVVLQJ WKH LVVXH RI WKH UHODWLRQVKLS EHWZHHQ YRFDWLRQDO LQWHUHVWV DQG MRE VDWLVIDFWLRQ +DQVHQ f LQGLFDWHG WKDW WKH FRUUHODWLRQV EHWZHHQ LQWHUHVWV VFRUHV DQG UDWLQJ RI MRE VDWLVIDFWLRQ DUH ORZ S f DQG FLWHG VWXGLHV ZLWK FRUUHODWLRQV UDQJLQJ IURP WR +DQVHQnV REVHUYDWLRQ LV QRW VXUSULVLQJ DV MRE VDWLVIDFWLRQ LV FRQVLGHUHG WR EH D IXQFWLRQ RI D PXOWLSOLFLW\ RI IDFWRUV DQG SHUKDSV LV EHWWHU H[SODLQHG E\ D FRPELQDWLRQ RI WZR RU WKUHH HOHPHQWV RI WKH SHUVRQHQYLURQPHQW FRQJUXHQF\ PRGHO UDWKHU WKDQ DQ\ RQH HOHPHQW 2QH WKHRU\ ZKLFK FRQVLGHUV D FRPELQDWLRQ RI HOHPHQWVf§QHHGV DQG DELOLWLHVLV WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f

PAGE 37

7KHRU\RI :RUN $GMXVWPHQW 7KH WKHRU\ RI ZRUN DGMXVWPHQW FDQ EH FODVVLILHG DV D SHUVRQHQYLURQPHQW FRQJUXHQF\ PRGHO DV LW SXUSRUWV WKDW ZRUN DGMXVWPHQW LV WKH UHVXOW RI D JRRG PDWFK EHWZHHQ WKH ZRUNHU DQG WKH MRE 7KLV WKHRU\ DV SRVLWHG E\ 'DZLV DQG /RITXLVW f LV EDVHG RQ WKH DVVXPSWLRQ WKDW LQGLYLGXDOV VHHN WR PDLQWDLQ FRUUHVSRQGHQFH D KDUPRQLRXV UHODWLRQVKLSf ZLWK WKHLU HQYLURQPHQWV DQG ZRUN LV D PDMRU HQYLURQPHQW ZLWK ZKLFK SHRSOH PXVW UHODWHf &RUUHVSRQGHQFH LV DFKLHYHG ZKHQ WKH LQGLYLGXDO IXOILOOV WKH UHTXLUHPHQWV RI WKH ZRUN HQYLURQPHQW VDWLVIDFWRULQHVVf DQG WKH ZRUN HQYLURQPHQW IXOILOOV WKH UHTXLUHPHQWV RI WKH LQGLYLGXDO VDWLVIDFWLRQf 7KH FRQWLQXRXV DQG G\QDPLF SURFHVV E\ ZKLFK WKH LQGLYLGXDO VHHNV WR DFKLHYH DQG PDLQWDLQ FRUUHVSRQGHQFH ZLWK WKH ZRUN HQYLURQPHQW LV FDOOHG ZRUN DGMXVWPHQW 'DZLV t /RITXLVW S f )RU VDWLVIDFWRULQHVV WR RFFXU WKH ZRUN HQYLURQPHQW UHTXLUHV WKDW WKH ZRUNHU SHUIRUP FHUWDLQ WDVNV DQG IROORZ FHUWDLQ UXOHV DQG QRUPV RI DSSURSULDWH EHKDYLRUV 7KHVH DUH FRQVLGHUHG WKH DELOLW\ UHTXLUHPHQWV RI WKH MRE 2Q WKH RWKHU KDQG IRU VDWLVIDFWLRQ WR RFFXU WKH ZRUN HQYLURQPHQW PXVW SURYLGH UHLQIRUFHUV IRU LH PHHW WKH QHHGV RIf WKH HPSOR\HH $FFRUGLQJ WR WKH WKHRU\ RI ZRUN DGMXVWPHQW WKHUH DUH QHHGV DQG WKHVH DUH DELOLW\ XWLOL]DWLRQ DFKLHYHPHQW DGYDQFHPHQW DXWKRULW\ FRPSDQ\ SROLFLHV DQG SUDFWLFHV FRPSHQVDWLRQ FRZRUNHUV FUHDWLYLW\ LQGHSHQGHQFH PRUDO YDOXHV UHFRJQLWLRQ UHVSRQVLELOLW\ VHFXULW\ VRFLDO VHUYLFH VRFLDO VWDWXV VXSHUYLVLRQKXPDQ UHODWLRQV

PAGE 38

VXSHUYLVLRQWHFKQLFDO YDULHW\ ZRUNLQJ FRQGLWLRQV DQG DFWLYLW\ :KHQHYHU WKHVH QHHGV DUH QRW PHW WKH ZRUNHU EHFRPHV GLVVDWLVILHG DQG PD\ FKRRVH WR OHDYH WKH MRE RU VHHN WR LPSURYH FRUUHVSRQGHQFH 7KH ZRUNHU UHJDLQV FRUUHVSRQGHQFH HLWKHU E\ FKDQJLQJ WKH ZRUN HQYLURQPHQW DFWLYHQHVVf RU PRGLI\LQJ KLVKHU DELOLWLHV QHHGV DQGRU YDOXHV UHDFWLYHQHVVf $FWLYHQHVV DQG UHDFWLYHQHVV DUH FRQVLGHUHG WR EH DGMXVWPHQW PRGHV IOH[LELOLW\ WKH DELOLW\ WR PROHUDWH GLVFRUUHVSRQGHQFH EHIRUH WDNLQJ VWHSV WR DOOHYLDWH WKH FRQGLWLRQf GHWHUPLQHV ZKHQ WKH PRGHV DUH XVHG DQG SHUVHYHUDQFH WKH OHQJWK RI WLPH DQ LQGLYLGXDO FDQ WROHUDWH GLVFRUUHVSRQGHQFH EHIRUH OHDYLQJ WKH MREf GHWHUPLQHV KRZ ORQJ WKH ZRUNHU ZLOO XVH WKH PRGHV EHIRUH TXLWWLQJ /LNH WKH HPSOR\HH WKH VXSHUYLVRUV LQ WKH ZRUN HQYLURQPHQW ZLOO WDNH DFWLRQ ZKHQ WKH FRUUHVSRQGHQFH EDODQFH LV WKUHDWHQHG +HUH WKH XQVDWLVIDFWRU\ ZRUNHU PD\ HLWKHU EH ILUHG RU FKDQJHV PDGH LQ WKH ZRUN HQYLURQPHQW DQGRU WKH HPSOR\HH 7KH GHYHORSHUV RI WKH WKHRU\ RI ZRUN DGMXVWPHQW GHVFULEH D KRPHRVWDWLF FRQGLWLRQ EHWZHHQ LQGLYLGXDOV DQG WKHLU ZRUN HQYLURQPHQWV DQG 'DZLV DQG /RITXLVW f LQGLFDWHG WKDW WKH WKHRU\ FDQ EH XVHG HIIHFWLYHO\ LQ FRXQVHOLQJ HVSHFLDOO\ FDUHHU FRXQVHOLQJ /RITXLVW DQG 'DZLV f DOVR VXJJHVWHG WKDW DV D UHVXOW RI WKH FDUHHU FRXQVHORUVn FRQFHUQ IRU WKH LQGLYLGXDO FOLHQW DQG WKH VRFLDO UHVSRQVLELOLW\ RI WKH FRXQVHORU WR WKH FOLHQW FDUHHU DQG MRE VDWLVIDFWLRQ VKRXOG EH D SULPDU\ JRDO DQG GHVLUHG

PAGE 39

RXWFRPH RI FDUHHU FRXQVHOLQJ )RU WKLV UHDVRQ PXFK DWWHQWLRQ KDV EHHQ SDLG WR WKH VDWLVIDFWLRQ DVSHFW RI WKH WKHRU\ +RZHYHU SULRU WR HIIHFWLQJ FDUHHU FRXQVHOLQJ LQWHUYHQWLRQV 'DZLV DQG /RITXLVW f HPSKDVL]HG WKDW WKHUH LV D QHHG IRU DVVHVVPHQW RI WKH FOLHQWnV VLWXDWLRQ 2QH VXFK DVVHVVPHQW WRRO LV WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH 064f ZKLFK ZDV GHYHORSHG WR PHDVXUH MRE VDWLVIDFWLRQ 7KH 064 ZDV GHYHORSHG E\ :HLVV 'DZLV (QJODQG DQG /RITXLVW f DQG SURYLGHV DQ LQGLFDWLRQ RI LQGLYLGXDOVn RYHUDOOJHQHUDO VDWLVIDFWLRQ ZLWK WKH MRE DV ZHOO DV ZLWK DVSHFWV RU IDFHWV RI WKH MRE 7KHVH IDFHWV UHSUHVHQW WKH QHHGV LVWHG SUHYLRXVO\ DQG DUH DOVR FDOOHG VFDOHV 7KH 064 LV D VHOIUHSRUW TXHVWLRQQDLUH DQG LV SULQWHG LQ D ORQJ IRUP ZKLFK KDV LWHPVf DQG D VKRUW IRUP ZKLFK KDV LWHPVf 5HVSRQGHQWV DUH DVNHG WR UHVSRQG WR HDFK LWHP XVLQJ D /LNHUW VFDOH UDQJLQJ IURP YHU\ GLVVDWLVILHG f WR YHU\ VDWLVILHG f 6FRUHV IRU HDFK RI WKH VFDOHV RQ WKH ORQJ IRUP DUH GHULYHG E\ DGGLQJ WKH VFRUHV IURP HDFK RI ILYH LWHPV SHUWDLQLQJ WR WKDW VFDOH DQG WRWDO VFRUHV FDQ UDQJH IURP YHU\ GLVVDWLVILHGf WR YHU\ VDWLVILHGf 7KH JHQHUDO VDWLVIDFWLRQ VFRUH DOVR FRQVLGHUHG WKH WZHQW\ ILUVW VFDOHf LV FRPSXWHG IURP LWHPV RQH IURP HDFK RI WKH ILUVW VFDOHVf DQG FDQ UDQJH IURP YHU\ GLVVDWLVILHGf WR YHU\ VDWLVILHGf 7KH VKRUW IRUP DOWKRXJK EDVHG RQ VDPSOH LWHPV IURP WKH ORQJ IRUP \LHOGV WKUHH VFRUHVf§JHQHUDO LQWULQVLF DQG H[WULQVLF VDWLVIDFWLRQ +RZHYHU WKH DXWKRUV :HLVV 'DZLV (QJODQG

PAGE 40

DQG /RITXLVW f VWURQJO\ UHFRPPHQGHG WKH XVH RI WKH ORQJ IRUP RYHU WKH VKRUW IRUP DV WKH ORQJ IRUP SURYLGHV PRUH LQIRUPDWLRQ 7KH 0DQXDO IRU WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH :HLVV 'DZLV (QJODQG t /RITXLVW f SURYLGHV QRUPDWLYH GDWD IRU RFFXSDWLRQDO JURXSV LQFOXGLQJ DFFRXQWDQWV HOHPHQWDU\ VFKRRO WHDFKHUV DQG ODERUHUV DV ZHOO DV HPSOR\HG GLVDEOHG SHUVRQV DQG HPSOR\HG QRQGLVDEOHG ZRUNHUV $OWKRXJK WKH 064 ZDV QRW QRUPHG RQ SXEOLF VFKRRO VWXGHQW SHUVRQQHO ZRUNHUV $QGHUVRQ +RKHQVKLO DQG %URZQ f KDYH XVHG LW WR PHDVXUH MRE VDWLVIDFWLRQ DPRQJ VFKRRO SV\FKRORJLVWV $QGHUVRQ +RKHQVKLO DQG %URZQ f PRGLILHG WKH YHUVLRQ RI WKH 064 WR UHGXFH WKH QXPEHU RI VH[LVW DQG LQGXVWULDO UHOHYDQW WHUPV 7KH UHOLDELOLW\ RI WKH PRGLILHG LWHPV DQG WKHLU UHVSRQVHV ZHUH GHWHUPLQHG XVLQJ &URQEDFKnV DOSKD DQG WKHVH \LHOGHG UHOLDELOLW\ FRHIILFLHQWV RI WR IRU WKH LWHPV DQG IRU WKH UHVSRQVHV $GGLWLRQDOO\ FKL VTXDUH DQDO\VLV ZDV XVHG WR GHWHUPLQH WKH FRQFXUUHQW YDOLGLW\ RI WKH PRGLILHG 064 E\ FRPSDULQJ UHVSRQGHQWVn JHQHUDO VDWLVIDFWLRQ VFRUHV RQ WKH 064 ZLWK WKHLU UHVSRQVHV RQ D GDWD IRUP 7KLV DQDO\VLV \LHOGHG D FKL VTXDUH RI ZKLFK ZDV VLJQLILFDQW DW WKH OHYHO :HLVV HW DO f DOVR FDOFXODWHG +R\W UHOLDELOLW\ FRHIILFLHQWV IRU HDFK RI WKH VFDOHV DQG IRXQG YDOXHV UDQJLQJ IURP IRU DELOLW\ XWLOL]DWLRQ WR IRU WKH YDULHW\ VFDOH 9DULDWLRQV ZHUH REVHUYHG EHWZHHQ

PAGE 41

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f QRWHG :HLVV HW DO f GR QRW VSHOO RXW WKH YDOLGLW\ GDWD RI WKH 064 DV WKH\ GR WKH UHOLDELOLW\ GDWD ,QVWHDG WKH UHDGHU RI WKH 0DQXDO IRU WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH LV DGYLVHG WR FRQVXOW RWKHU SXEOLFDWLRQV ZKLFK FRQWDLQ LQIRUPDWLRQ DERXW WKH FRQVWUXFW DQG FRQFXUUHQW YDOLGLW\ RI WKH LQVWUXPHQW $GGLWLRQDOO\ WKH FRQVWUXFW YDOLGLW\ RI WKH 064 LV LQGLUHFWO\ GHULYHG IURP WKH VWXGLHV RI DQRWKHU LQVWUXPHQW WKH 0LQQHVRWD ,PSRUWDQFH 4XHVWLRQQDLUH 0,4f ZKLFK LV DOVR EDVHG RQ WKH WKHRU\ RI ZRUN DGMXVWPHQW +RZHYHU 'DZLV DQG /RITXLVW f FODLPHG WKDW WKH UHVHDUFK RQ WKH 064 KDV \LHOGHG YDOLGLW\ GDWD LQGLFDWLQJ WKDW WKH LQVWUXPHQW LV DSSURSULDWH IRU XVH LQ ERWK UHVHDUFK DQG SUDFWLFH S f

PAGE 42

2WKHU HYLGHQFH WR VXSSRUW WKH YDOLGLW\ RI WKH 064 LV SUHVHQWHG E\ 'XQKDP 6PLWK DQG %ODFNEXUQ f ZKR IRXQG WKDQ WKH 064 KDG WKH KLJKHVW DYHUDJH FRQYHUJHQW YDOLGLWLHV ZKHQ FRPSDUHG WR WKUHH RWKHU MRE VDWLVIDFWLRQ PHDVXUHV DQG WKH VHFRQG KLJKHVW GLVFULPLQDQW YDOLGLW\ VFRUHV RI WKH LQVWUXPHQWV FRPSDUHG 7KH VWXG\ E\ 'XQKDP HW DO f ZDV GHVLJQHG WR FRPSDUH WKH FRQYHUJHQW DQG GLVFULPLQDQW YDOLGLWLHV RI IRXU ZLGHO\ XVHG MRE VDWLVIDFWLRQ PHDVXUHV WKH 064 WKH -RE 'HVFULSWLYH ,QGH[ -',f WKH )DFHV 6FDOH )DFHVf DQG WKH ,QGH[ RI 2UJDQL]DWLRQDO 5HDFWLRQV ,25f &RQYHUJHQW YDOLGLW\ ZDV LQGLFDWHG E\ WKH H[WHQW WR ZKLFK WKH VFDOHV RQ HDFK PHDVXUH \LHOGHG VLPLODU VFRUHV DPRQJ UHVSRQGHQWV 'LVFULPLQDQW YDOLGLW\ ZDV EDVHG RQ WKH H[WHQW WR ZKLFK HDFK UHVSRQGHQWnV VFDOH SDWWHUQ RQ HDFK LQVWUXPHQW ZDV VLPLODU EXW GLIIHUHQW IURP WKRVH RI RWKHU LQGLYLGXDOV $OWKRXJK DOO RI WKH LQVWUXPHQWV \LHOGHG VLJQLILFDQW FRQYHUJHQW DQG GLVFULPLQDQW YDOLGLW\ VFRUHV WKDW ZHUH VLJQLILFDQW DW WKH OHYHO WKH 064 KDG WKH KLJKHVW FRQYHUJHQW YDOLGLW\ VFRUHV ZKLFK UDQJHG IURP WR 7KH -', KDG WKH ORZHVW VFRUHV ZKLFK UDQJHG IURP WR .HQGDOOnV FRHIILFLHQW RI FRQFRUGDQFH ZDV FRPSXWHG DV D PHDQV RI GHWHUPLQLQJ GLVFULPLQDQW YDOLGLW\ DQG WKH 064 \LHOGHG WKH KLJKHVW YDOXH RI ZKLOH WKH -', \LHOGHG WKH ORZHVW VFRUH RI +RZHYHU ZKHQ D PRUH VWULQJHQW WHVW RI GLVFULPLQDQW YDOLGLW\ ZDV DSSOLHG WR HDFK LQVWUXPHQW WKH 064 \LHOGHG D YDOXH RI FRPSDUHG WR IRU WKH ,25 DQG IRU WKH )DFHV DQG -',

PAGE 43

)XUWKHU DQDO\VHV E\ 'XQKDP HW DO f DOVR GHPRQVWUDWHG WKDW WKH 064 ZDV OHDVW DIIHFWHG E\ GLIIHUHQFHV LQ WKH UHVSRQGHQWVf VH[ DQG W\SH RI MRE 7KLV LV LPSRUWDQW WR QRWH DV YDOLGLW\ GLIIHUHQFHV GXH WR VH[ DQG MRE FRXOG SURGXFH PLVOHDGLQJ UHVXOWV ,W ZDV DOVR QRWHG WKDW LQ FRPSDULQJ WKH UHOLDELOLW\ RI WKH -', ,25 DQG 064 WKH -', KDG WKH KLJKHVW UHOLDELOLW\ FRHIILFLHQWV RI %DVHG RQ WKH ILQGLQJV RI :HLVV HW DO f DQG 'XQKDP HW DO f LW ZDV FRQFOXGHG WKDW WKH 064 KDV PRGHUDWHO\ KLJK YDOLGLW\ DQG UHOLDELOLW\ PHDVXUHV WKDW FRPSDUH YHU\ IDYRUDEO\ ZLWK RWKHU MRE VDWLVIDFWLRQ PHDVXUHV RI JRRG UHSXWH 7KLV ZDV DOVR WKH FRQFOXVLRQ RI *XLQ f ZKR LQ UHYLHZLQJ WKH 064 QRWHG WKDW WKH 064 LV ZHOO GHYHORSHG LW KROGV XS ZHOO LQ FRPSDULVRQ ZLWK D PDMRU DOWHUQDWH LQVWUXPHQW DQG LW FDQ JLYH GHWDLOHG GLDJQRVWLFV RU SDUVLPRQLRXV VXPPDU\ VWDWHPHQWV S f 7R GDWH PRVW RI WKH VXSSRUW IRU WKH WKHRU\ RI ZRUN DGMXVWPHQW KDV FRPH IURP WKH YDOLGDWLRQ RI LQVWUXPHQWV OLNH WKH 064 )RU H[DPSOH WR WHVW WKH FRQFHSW RI VDWLVIDFWLRQ WKH 064 ZDV GHYHORSHG DQG IURP UHVHDUFK RQ WKH 064 LW ZDV LQIHUUHG WKDW WKH FRQFHSW RI VDWLVIDFWLRQ ZDV D YDOLG RQH $QRWKHU LQVWUXPHQW WKDW KDV LWV URRWV LQ WKH WKHRU\ RI ZRUN DGMXVWPHQW LV WKH 0LQQHVRWD 6DWLVIDFWRULQHVV 6FDOHV 066f ZKLFK ZDV GHYHORSHG WR PHDVXUH WKH FRQFHSW RI VDWLVIDFWRULQHVV 'DZLV t /RITXLVW f 6LQFH VDWLVIDFWLRQ DQG VDWLVIDFWRULQHVV DUH WZR LQGHSHQGHQW IDFWRUV RI ZRUN DGMXVWPHQW LW ZDV LPSRUWDQW WR GHPRQVWUDWH WKLV DQG VR WKH 066 DQG 064 ZHUH DGPLQLVWHUHG WR SHUVRQV LQ

PAGE 44

VHYHUDO RFFXSDWLRQDO JURXSV &DQRQLFDO FRUUHODWLRQ DQDO\VLV ZDV DSSOLHG WR WKH VFRUHV DQG FRHIILFLHQWV RI WR ZHUH REWDLQHG WKXV LQGLFDWLQJ WKDW WKH 066 DQG 064 GLG PHDVXUH WZR LQGHSHQGHQW FRQFHSWV RI VDWLVIDFWRULQHVV DQG VDWLVIDFWLRQ 6RPH VXSSRUW IRU WKLV WKHRU\ KDV DOVR EHHQ LQIHUUHG IURP UHODWHG UHVHDUFK )RU H[DPSOH LQ GLVFXVVLQJ WKH UHVHDUFK VXSSRUW IRU WKH UHODWLRQVKLS EHWZHHQ VDWLVIDFWLRQ DQG WHQXUH 'DZLV DQG /RITXLVW f UHIHUUHG WKH UHDGHU WR VWXGLHV FRQGXFWHG E\ RWKHU UHVHDUFKHUV ZKLFK GHPRQVWUDWH WKDW WKHUH LV D QHJDWLYH UHODWLRQVKLS EHWZHHQ WXUQRYHU DQG MRE VDWLVIDFWLRQ -RE 6DWLVIDFWLRQ 5HVHDUFK 7KH OLWHUDWXUH RQ WKH VRXUFHV RI MRE VDWLVIDFWLRQ FDQ EH FODVVLILHG LQWR WKUHH DUHDV 7KHVH DUH VWXGLHV RI Df WKH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG WKH MRE LWVHOI Ef WKH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG MRE FRQWH[W IDFWRUV DQG Ff WKH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG LQGLYLGXDO GLIIHUHQFHV 7KHVH FDWHJRULHV ZLOO EH XVHG WR RUJDQL]H WKH LQIRUPDWLRQ SUHVHQWHG LQ WKLV VHFWLRQ -RE 6DWLVIDFWLRQ DQG WKH -RE ,WVHOI ,Q UHYLHZLQJ WKH OLWHUDWXUH RQ MRE VDWLVIDFWLRQ *UXQHEHUJ f LGHQWLILHG VHYHUDO IDFWRUV WKDW FRQWULEXWHG WR MRE VDWLVIDFWLRQ 7KHVH IDFWRUV LQFOXGH DFKLHYHPHQW RI

PAGE 45

VXFFHVV DQG UHFRJQLWLRQ DV ZHOO DV WKH DSSOLFDWLRQ RI VNLOOV 6XFFHVV 7KLV IDFWRU UHIHUV WR WKH VDWLVIDFWLRQ WKH HPSOR\HH IHHOV DIWHU FRPSOHWLQJ D MRE DQG LV VLPLODU WR WKH QHHG IRU DFKLHYHPHQW DV GHVFULEHG LQ WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f ,Q +RSSRFNnV f ODQGPDUN VWXG\ WKDW ZDV GLVFXVVHG HDUOLHUf KH UHSRUWHG WKDW ZKDW GLG GLVFULPLQDWH FOHDUO\ DQG UHSHDWHGO\ DPRQJ WKH VDWLVILHG DQG GLVVDWLVILHG WHDFKHUV ZHUH TXHVWLRQV UHJDUGLQJ WKH LQGLYLGXDOnV IHHOLQJ RI VXFFHVV DQG SURJUHVV KLV VHQVH RI DFFRPSOLVKPHQW DV PHDVXUHG E\ KLV RZQ VWDQGDUGV S f )RU H[DPSOH ZKHQ WHDFKHUV ZHUH DVNHG LI WKH\ FRXOG VHH WKH UHVXOWV RI WKHLU ZRUN b RI WKH VDWLVILHG JURXS UHSOLHG LQ WKH DIILUPDWLYH ZKLOH b RI WKH GLVVDWLVILHG JURXS VDLG QR f6LPLODUO\ ZKHQ DVNHG LI WKH\ IHOW WKDW WKH\ ZHUH PDNLQJ VXFFHVV LQ WKHLU MREV b RI WKH VDWLVILHG JURXS VDLG \HV ZKLOH b RI WKH GLVVDWLVILHG JURXS VDLG QR $JDLQ ZKHQ DVNHG LI WKH\ ZHUH GRLQJ ZHOO LQ WKHLU MREV DV H[SHFWHG RQO\ b RI WKH GLVVDWLVILHG JURXS VDLG \HV FRPSDUHG WR b RI WKH VDWLVILHG JURXS RI WHDFKHUV +HU]EHUJ f DOVR UHSRUWHG WKDW LQ KLV RULJLQDO VWXGLHV DFKLHYHPHQW HPHUJHG DV D VWURQJ GHWHUPLQHU RI MRE VDWLVIDFWLRQ 7KH QHHG IRU VXFFHVV RU DFKLHYHPHQW ZDV DOVR FDOOHG WDVN LGHQWLW\ E\ +DFNPDQ DQG /DZOHU f ZKR GHPRQVWUDWHG WKDW WKHUH ZDV D VLJQLILFDQW SRVLWLYH UHODWLRQVKLS RI S B f EHWZHHQ WDVN LGHQWLW\ DQG MRE VDWLVIDFWLRQ 7DVN

PAGE 46

LGHQWLW\ ZDV OLVWHG E\ +DFNPDQ DQG /DZOHU DV RQH RI WKH IRXU FRUH FRQGLWLRQV WKDW DUH QHFHVVDU\ IRU MRE VDWLVIDFWLRQ 5HFRJQLWLRQ 5HFRJQLWLRQ FRQFHUQV WKH H[WHUQDO YDOLGDWLRQ WKDW D ZRUNHU UHFHLYHV IRU KLVKHU DFFRPSOLVKHPHQWV 7KLV FDQ EH IRUPDOO\ DFFRPSOLVKHG WKURXJK SURPRWLRQ DZDUG KLJKHU SD\ DQG WKH OLNH RU LQIRUPDOO\ WKURXJK SUDLVH DQG IHHGEDFN IURP VXSHUYLVRUV DQG FRZRUNHUV 7KH QHHG IRU UHFRJQLWLRQ ZDV RQH RI WKH QHHG IDFWRUV OLVWHG LQ WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f +HU]EHUJ f UHSRUWHG WKDW UHFRJQLWLRQ LV DOVR D VWURQJ PRWLYDWRU DQG +RSSRFN f QRWHG WKDW DPRQJ WKH WHDFKHUV LQ WKLV VWXG\ b RI WKH VDWLVILHG WHDFKHUV IHOW WKDW SHRSOH VKRZHG DSSUHFLDWLRQ IRU WKHLU ZRUN ZKLOH RQO\ b RI WKH GLVVDWLVILHG JURXS IHOW WKLV ZD\ 5HFRJQLWLRQ RI HPSOR\HHV ZDV FRQVLGHUHG DV RQH RI +DFNPDQ DQG /DZOHUnV f IRXU FRUH FRQGLWLRQV WKDW ZHUH QHFHVVDU\ IRU EXLOGLQJ RU PDLQWDLQLQJ MRE VDWLVIDFWLRQ +DFNPDQ DQG /DZOHU UHIHUUHG WR WKLV IDFWRU DV IHHGEDFN DQG LQGLFDWHG WKDW IRU IHHGEDFN WR EH HIIHFWLYH LW PXVW EH JLYHQ LQ D EHOLHYDEOH PDQQHU RU WKH HPSOR\HH ZLOO EH IUXVWUDWHG $GGLWLRQDOO\ 6ULYDVWD 6DOLSDQWH &XPPLQJV 1RW] %LJHORZ DQG :DWHUV f DIWHU UHYLHZLQJ VHYHUDO ILHOG H[SHULPHQWV RQ MRE VDWLVIDFWLRQ FRQFOXGHG WKDW WLPHO\ IHHGEDFN ZDV QHFHVVDU\ LQ RUGHU WR SURPRWH MRE VDWLVIDFWLRQ $SSOLFDWLRQ RI VNLOOV 9URRP f QRWHG WKDW LQGLYLGXDOV GHULYH VDWLVIDFWLRQ IURP WKHLU MREV ZKHQ WKH\ DUH DOORZHG WR XVH WKHLU VNLOOV DQG DELOLWLHV 7KLV WRR ZDV UHFRJQL]HG DV D QHHG LQ WKH WKHRU\ RI ZRUN DGMXVWPHQW

PAGE 47

'DZLV t /RITXLVW f 9URRP f YHULILHG WKDW XVH RI VNLOOV DQG DELOLWLHV ZDV UHODWHG WR MRE VDWLVIDFWLRQ ,Q D VWXG\ RI KRXUO\SDLG EOXHFROODU ZRUNHUV LQ D &DQDGLDQ RLO UHILQHU\ 9URRP IRXQG D FRUUHODWLRQ RI EHWZHHQ DELOLW\ XWLOL]DWLRQ DQG MRE VDWLVIDFWLRQ 7KH IDFW WKDW XQGHUXWLOL]DWLRQ RI VNLOOV FDQ EH D SUREOHP ZDV QRWHG E\ 6WDLQHV DQG 4XLQQ f ZKR IRXQG WKDW b RI WKH UHVSRQGHQWV LQ WKHLU TXDOLW\ RI HPSOR\PHQW VXUYH\ UHSRUWHG WKDW WKH\ ZHUH GLVVDWLVILHG ZLWK WKH ODFN RI RSSRUWXQLWLHV WR XVH WKHLU VNLOOV RQ WKHLU MREV 5XPEHUJHU f UHIHUUHG WR WKLV SUREOHP DV RYHUHGXFDWLRQ DQG VXJJHVWHG WKDW WKLV FRXOG OHDG WR MRE GLVVDWLVIDFWLRQ ,W KDV DOVR EHHQ IRXQG WKDW HPSOR\HHV QRW RQO\ ZDQW WR XVH WKHLU VNLOOV DQG DELOLWLHV EXW DOVR WR GR VR LQ D YDULHW\ RI ZD\V *UXQHEHUJ f 9DULHW\ RI WDVNV LV DOVR OLVWHG DV D QHHG LQ WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f ,Q D VWXG\ FRQGXFWHG E\ +DFNPDQ DQG /DZOHU f LW ZDV REVHUYHG WKDW YDULHW\ DQG MRE VDWLVIDFWLRQ ZHUH VLJQLILFDQWO\ UHODWHG 7KLV VWXG\ KDG D VDPSOH RI YDULRXV FDWHJRULHV RI ZRUNHUV IURP DQ HDVWHUQ WHOHSKRQH FRPSDQ\ 3DUWLFLSDQWV FRPSOHWHG D LWHP TXHVWLRQQDLUH ZKLFK ZDV GHVLJQHG WR PHDVXUH WKH HPSOR\HHVn UHDFWLRQV WR WKHLU MREV &RUUHODWLRQV ZHUH FDOFXODWHG EDVHG RQ WKH LWHPV GHDOLQJ ZLWK JHQHUDO VDWLVIDFWLRQ DQG YDULHW\ LQ WKH MRE DQG D UHODWLRQVKLS RI e f ZDV IRXQG 6ULYDVWD HW DO f QRWHG VLPLODU UHVXOWV LQ D UHYLHZ RI VHYHUDO ILHOG VWXGLHV GHVLJQHG WR LQYHVWLJDWH MRE VDWLVIDFWLRQ

PAGE 48

$QRWKHU RI +DFNPDQ DQG /DZOHUnV f FRUH FRQWULEXWRUV WR MRE VDWLVIDFWLRQ ZDV DXWRQRP\ $XWRQRP\ FDQ EH GHVFULEHG DV WKH H[WHQW WR ZKLFK HPSOR\HHV KDYH LQSXW LQWR KRZ RU ZKHQ WKH\ DSSO\ WKHLU VNLOOV DQG DELOLWLHV WR FRPSOHWH D WDVN ,Q WKHLU VWXG\ +DFNPDQ DQG /DZOHU REWDLQHG D S f FRUUHODWLRQ FRHIILFLHQW IRU WKH UHODWLRQVKLS EHWZHHQ DXWRQRP\ DQG MRE VDWLVIDFWLRQ 6ULYDVWD HW DO f DQG .DW]HOO DQG
PAGE 49

S f EHWZHHQ MRE VDWLVIDFWLRQ DQG SD\ +RSSRFN f DOVR IRXQG VLPLODU UHVXOWV DV b RI WKH VDWLVILHG WHDFKHUV H[SUHVVHG GLVFRQWHQW ZLWK WKHLU SD\ ZKLOH b RI WKH GLVVDWLVILHG WHDFKHUV H[SUHVVHG WKH VDPH ,W LV VWXGLHV OLNH WKHVH WKDW OHG WKH GHYHORSHUV RI WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f WR LQFOXGH FRPSHQVDWLRQ DV D QHHG UHTXLUHPHQW 7KHUH LV DOVR VRPH LQGLFDWLRQ WKDW WKH LPSRUWDQFH RI SD\ YDULHV ZLWK MRE OHYHOV 7KLV ZDV UHSRUWHG E\ 9R\GDQRII f ZKR FRQGXFWHG D QDWLRQDO VWXG\ RI DSSUR[LPDWHO\ SHUVRQV DW ILYH RFFXSDWLRQDO OHYHOV SURIHVVLRQDO PDQDJHULDO FOHULFDO FUDIWV DQG ODERUHU 5HVSRQGHQWV ZHUH DVNHG WR H[SUHVV WKHLU VDWLVIDFWLRQ ZLWK VHYHQ DVSHFWV RI WKH MRE 7KHVH ZHUH ILQDQFLDO UHZDUGVSURPRWLRQV UHTXLUHPHQW RI KDUG ZRUN RQ WKH MRE UROH VWUDLQ QRW NQRZLQJ ZKDW LV H[SHFWHG RQ WKH MREf VXSHUYLVLRQ ZRUNLQJ FRQGLWLRQV HQULFKLQJ MRE GHPDQGV DQG VHOIH[SUHVVLRQ $ PXOWLSOH UHJUHVVLRQ DQDO\VLV RI WKH UHVXOWV UHYHDOHG WKDW VHOIH[SUHVVLRQ UROH VWUDLQ DQG ILQDQFLDO UHZDUGV SURPRWLRQV ZHUH UHODWHG WR MRE VDWLVIDFWLRQ IRU DOO RFFXSDWLRQDO OHYHOV :KLOH ILQDQFLDO UHZDUGV ZHUH QRW FRQVLGHUHG WR EH WKH PRVW LPSRUWDQW IDFWRU LQ GHWHUPLQLQJ MRE VDWLVIDFWLRQ E\ DQ\ RI WKH RFFXSDWLRQDO OHYHOV PDQDJHUV JDYH WKH KLJKHVW UDWLQJ WR WKH LPSRUWDQFH RI WKLV IDFWRU +RZHYHU .DW]HOO DQG
PAGE 50

UDWKHU LW LV ZKHWKHU RU QRW WKH HPSOR\HH EHOLHYHV WKDW WKH SD\ LV FRPPHQVXUDWH ZLWK SHUIRUPDQFH DQG UHVSRQVLELOLW\ WKDW ZLOO PDNH WKH GLIIHUHQFH 9URRP f DOVR VXJJHVWHG WKDW VDWLVIDFWLRQ ZLWK SD\ LV PRGHUDWHG E\ DQRWKHU YDULDEOHf§ VRFLDO HTXLW\ +H EHOLHYHG WKDW SHRSOH ZKRVH ZDJHV DUH FRPPHQVXUDWH ZLWK WKRVH DW WKHLU RFFXSDWLRQDO OHYHO WHQG WR EH PRUH VDWLVILHG WKDQ WKRVH ZKR EHOLHYH WKDW WKHLU FRXQWHUSDUWV UHFHLYH KLJKHU ZDJHV 6HFXULW\ ,Q WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f VHFXULW\ LV OLVWHG DV D QHHG UHTXLUHPHQW RI ZRUNHUV 7KLV YLHZ ZDV FRUURERUDWHG E\ +DFNPDQ DQG /DZOHU f ZKR IRXQG D FRUUHODWLRQ RI S f EHWZHHQ MRE VDWLVIDFWLRQ DQG VHFXULW\ 1RW PXFK DWWHQWLRQ LV JLYHQ WR WKLV IDFWRU LQ WKH OLWHUDWXUH RQ MRE VDWLVIDFWLRQ DQG SHUKDSV WKLV LV VR DV WKH LPSRUWDQFH RI MRE VHFXULW\ LV UHOHYDQW WR VRFLRHFRQRPLF FRQGLWLRQV +RSSRFN f DQG *UXQHEHUJ f KDYH VXJJHVWHG WKDW MRE VHFXULW\ EHFRPHV D IDFWRU LQ MRE VDWLVIDFWLRQ RQO\ ZKHQ WKHUH LV D WKUHDW RI XQHPSOR\PHQW GXH WR SROLWLFDO DQGRU ILQDQFLDO FULVHV )RU H[DPSOH LQ ZKHQ HFRQRPLF FRQGLWLRQV ZHUH EHWWHU 6WDLQHV DQG 4XLQQ f UHSRUWHG WKDW RQO\ b RI WKHLU QDWLRQDO VDPSOH RI ZRUNHUV ZHUH WURXEOHG E\ WKH SRVVLELOLW\ RI XQHPSOR\PHQW +RZHYHU WRGD\ ZLWK ULVLQJ LQIODWLRQ DQG UHGXFWLRQV LQ JRYHUQPHQWIXQGHG SURMHFWV LW PD\ EH UHDVRQDEOH WR H[SHFW WKDW VHFXULW\ ZRXOG EH D JUDYH FRQFHUQ DPRQJ PDQ\ HPSOR\HG SHRSOH 6XSHUYLVLRQ ,Q WKH 9R\GDQRII f VWXG\ GHVFULEHG HDUOLHUf WKH HIIHFW RI VXSHUYLVLRQ RQ MRE VDWLVIDFWLRQ ZDV

PAGE 51

FRQVLGHUHG ,W ZDV IRXQG WKDW VXSHUYLVLRQ GLG QRW DIIHFW FKH MRE VDWLVIDFWLRQ RI HPSOR\HHV DW DQ\ RI WKH RFFXSDWLRQDO OHYHOV 7KLV VHHPV WR VXSSRUW +HU]EHUJnV f YLHZ WKDW VXSHUYLVLRQ LV D K\JLHQH IDFWRU DQG QRW D PRWLYDWRU +RZHYHU 6ULYDVWD HW DO f DQG .DW]HOO DQG
PAGE 52

WHDFKHUV LQGLFDWHG WKDW MRE VDWLVIDFWLRQ LQFUHDVHG DV SDUWLFLSDWLRQ LQ WKH VFKRROVn GHFLVLRQ PDNLQJ SURFHVV LQFUHDVHG +RZHYHU 6FKQHLGHU DOVR IRXQG WKDW SDUWLFLSDWLRQ LQ WKH GHFLVLRQ PDNLQJ SURFHVV ZDV QRW HTXDOO\ LPSRUWDQW WR DOO SHUVRQV 7KLV ILQGLQJ ZDV FODULILHG E\ 9URRP f ZKR FRQFOXGHG IURP SULRU UHVHDUFK WKDW WKH HIIHFWV RI SDUWLFLSDWLYH GHFLVLRQ PDNLQJ ZHUH UHODWHG WR SHUVRQDOLW\ YDULDEOHV OLNH DXWKRULWDULDQLVP DQG WKH QHHG IRU LQGHSHQGHQFH (PSOR\HHV QRW RQO\ OLNH WR SDUWLFLSDWH LQ WKH GHFLVLRQ PDNLQJ SURFHVV EXW H[SHFW ZDUPWK DQG VXSSRUW IURP WKHLU VXSHUYLVRUV +DFNPDQ DQG /DZOHU f IRXQG WKLV WR EH VR LQ WKHLU UHVHDUFK LQ WKDW D VLJQLILFDQW FRUUHODWLRQ RI S f ZDV IRXQG IRU WKH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG IDLU WUHDWPHQW IURP WKH ERVV 7KLV IDFWRU KDV DOVR EHHQ UHFRJQL]HG DV D QHHG LQ WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f $QRWKHU VXSHUYLVRU\ EHKDYLRU WKDW HPSOR\HHV YDOXH LV VXSHUYLVRU\ FRPSHWHQFH RU UHVRXUFHIXOQHVV .DW]HOO t
PAGE 53

FRPPXQLFDWLRQ EHWZHHQ WKH HPSOR\HHV DQG WRS OHYHO RIILFLDOV DV ZHOO DV ZKHQ WKHUH LV OHVV RI D KLHUDUFKLFDO VWUXFWXUH LQ WKH RUJDQL]DWLRQ &RQVLVWHQW ZLWK WKHVH UHVXOWV WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f LQFOXGHG RUJDQL]DWLRQDO FOLPDWH DV DQ HPSOR\HH QHHG ,Q DGGLWLRQ WR SURYLGLQJ D VXSSRUWLYH FOLPDWH IRU WKHLU HPSOR\HHV RUJDQL]DWLRQV DUH H[SHFWHG WR SURYLGH VDIH ZRUNLQJ FRQGLWLRQV 7KLV ZDV IRXQG WR EH D JURZLQJ FRQFHUQ E\ 6WDLQHV DQG 4XLQQ f LQ WKHLU TXDOLW\ RI HPSOR\PHQW VXUYH\V ,Q b RI DOO ZRUNHUV SROOHG H[SUHVVHG FRQFHUQ DERXW EHLQJ H[SRVHG WR RQH RU PRUH VDIHW\ DQG KHDOWK KD]DUGV )RXU \HDUV ODWHU WKH QXPEHU H[SUHVVLQJ FRQFHUQ ZLWK WKLV SUREOHP JUHZ WR b DQG E\ b RI WKH UHVSRQGHQWV H[SUHVVHG FRQFHUQ DERXW WKH VDIHW\ FRQGLWLRQV DW ZRUN 6WDLQHV DQG 4XLQQ DWWULEXWHG SDUW RI WKH GUDPDWLF LQFUHDVH LQ H[SUHVVHG FRQFHUQ WR LPSURYHPHQW LQ PHDVXULQJ WHFKQLTXHV +RZHYHU LQFUHDVH LQ WKH NQRZOHGJH RI WKH HPSOR\HHV FRXOG DOVR DFFRXQW IRU VRPH RI WKH LQFUHDVHG FRQFHUQ DV WKH (QYLURQPHQWDO 3URWHFWLRQ $JHQF\ DQG VHYHUDO LQWHUHVW JURXSV ZHUH PDNLQJ WKH SRSXODWLRQ PRUH DZDUH RI SRWHQWLDO KD]DUGV LQ WKH ZRUNSODFH ,Q WKH VWXG\ FRQGXFWHG E\ 9R\GDQRII f ZRUNLQJ FRQGLWLRQV FRQWULEXWHG WR WKH VDWLVIDFWLRQ RI PDQDJHUV DQG ODERUHUV EXW QRW WR SURIHVVLRQDOV FOHUNV RU FUDIWVPHQ +RZHYHU LQ +RSSRFNnV f VWXG\ WKH WHDFKHUV GLG JLYH FRQVLGHUDWLRQ WR WKHLU ZRUN HQYLURQPHQW DQG b RI WKH VDWLVILHG WHDFKHUV LQGLFDWHG WKDW WKH\ OLNHG

PAGE 54

WKHLU ZRUN HQYLURQPHQW ZKLOH RQO\ b RI WKH GLVVDWLVILHG WHDFKHUV H[SUHVVHG D OLNLQJ IRU WKH VDPH $FFRUGLQJ WR WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f SHRSOH H[SHFW DGYDQFHPHQW RU SURPRWLRQDO RSSRUWXQLWLHV WR EH SURYLGHG E\ WKH HPSOR\LQJ RUJDQL]DWLRQ 7KLV LV FRQVLGHUHG DV D PRWLYDWRU LQ +HU]EHUJnV f WKHRU\ DQG +DFNPDQ DQG /DZOHU f DOVR IRXQG D VPDOO EXW VLJQLILFDQW UHODWLRQVKLS RI S f EHWZHHQ SURPRWLRQ DQG MRE VDWLVIDFWLRQ 6WDLQHV DQG 4XLQQ f DOVR QRWHG WKDW QDWLRQDOO\ WKHUH KDG EHHQ D VLJQLILFDQW GHFOLQH LQ VDWLVIDFWLRQ ZLWK SURPRWLRQDO RSSRUWXQLWLHV EHWZHHQ DQG DQG FRLQFLGHQWDOO\ WKHUH ZDV DOVR D VLJQLILFDQW GHFOLQH LQ JHQHUDO MRE VDWLVIDFWLRQ GXULQJ WKRVH \HDUV :KLOH QR FDXVDO UHODWLRQVKLS FDQ EH LQIHUUHG IURP WKH UHVXOWV LW LV SODXVLEOH WKDW WKHUH LV D FRUUHODWLRQ EHWZHHQ WKH GHFOLQH LQ MRE VDWLVIDFWLRQ DQG SURPRWLRQDO RSSRUWXQLWLHV 7KH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f VWDWHG WKDW MXVW DV LQGLYLGXDOV KDYH UHTXLUHPHQWV RI WKHLU HPSOR\LQJ RUJDQL]DWLRQV WKH RUJDQL]DWLRQ KDV UHTXLUHPHQWV RI WKH HPSOR\HH +RZHYHU WKH RUJDQL]DWLRQ GRHV QRW DOZD\V FODULI\ LWV H[SHFWDWLRQV WR WKH HPSOR\HH DQG WKLV SURGXFHV UROH FRQIOLFW ZKLFK OHDGV WR ORZHUHG MRE VDWLVIDFWLRQ *UXQHEHUJ f DQG .DKQ f DOVR VXSSRUWHG WKLV YLHZ ,Q 9R\GDQRIInV f VWXG\ WKLV FRQGLWLRQ ZDV GHVFULEHG DV UROH VWUDLQ DQG ZDV GHWHUPLQHG WR EH WKH PDMRU VRXUFH WR DIIHFW WKH MRE VDWLVIDFWLRQ RI SURIHVVLRQDO PDQDJHUV DQG ODERUHUV DQG WKH VHFRQG PDMRU VRXUFH IRU FOHUNV DQG FUDIWV

PAGE 55

ZRUNHUV 7KH FRQGLWLRQV RI UROH RYHUORDG WRR PXFK ZRUNf DQG UROH DPELJXLW\ LQVXIILFLHQW LQIRUPDWLRQ WR HQDEOH WKH HPSOR\HH WR SHUIRUP DQ DGHTXDWH MREf DUH RIWHQ PDQLIHVWHG ZLWK UROH FRQIOLFW .DKQ f &RZRUNHUV 5HFRJQL]LQJ WKDW SHRSOH DUH VRFLDO DQLPDOV UHVHDUFKHUV KDYH H[DPLQHG WKH FRQWULEXWLRQ RI FRZRUNHU UHODWLRQVKLSV WR HPSOR\HHVn MRE VDWLVIDFWLRQ +DFNPDQ DQG /DZOHU f UHSRUWHG D YHU\ ZHDN f EXW VLJQLILFDQW S f FRUUHODWLRQ EHWZHHQ MRE VDWLVIDFWLRQ DQG HPSOR\HHVn DELOLW\ WR GHYHORS FORVH UHODWLRQVKLSV RQ WKH MRE *UXQHEHUJ f DOVR UHSRUWHG WKDW RQ WKH ZKROH SHRSOH SUHIHUUHG FRZRUNHUV ZKR ZHUH VXSSRUWLYH ,Q IDFW 'DZLV DQG /RITXLVW f LQFOXGHG FRZRUNHU UHODWLRQVKLSV DV DQ HPSOR\HH QHHG LQ WKH WKHRU\ RI ZRUN DGMXVWPHQW -RE 6DWLVIDFWLRQ DQG ,QGLYLGXDO 'LIIHUHQFHV ,W KDV EHHQ VKRZQ WKDW VHYHUDO LQGLYLGXDO GLIIHUHQFHV LQIOXHQFH MRE VDWLVIDFWLRQ DQG LQFOXGHG LQ WKLV FDWHJRU\ DUH DJH HGXFDWLRQ VH[ UDFH RFFXSDWLRQDO VWDWXV DQG MRE OHYHO $JH :HDYHU f H[DPLQHG VHYHQ QDWLRQDO VXUYH\V WKDW ZHUH FRQGXFWHG EHWZHHQ DQG DQG GLVFRYHUHG WKDW MRE VDWLVIDFWLRQ LQFUHDVHG ZLWK DJH 7KLV LV FRQVLVWHQW ZLWK +RSSRFNnV f ILQGLQJV WKDW WKH PHDQ DJH RI WKH VDWLVILHG JURXS RI WHDFKHUV ZDV KLJKHU WKDQ WKDW RI WKH GLVVDWLVILHG JURXS

PAGE 56

(GXFDWLRQ 7KH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG HGXFDWLRQDO OHYHO ZDV DOVR H[DPLQHG E\ :HDYHU f ZKR UHSRUWHG WKDW VDWLVIDFWLRQ LV SRVLWLYHO\ UHODWHG WR HGXFDFLRQDO OHYHO 4XLQQ DQG 0DQGLORYLWFK f DOVR H[DPLQHG QDWLRQDO VXUYH\V WKDW ZHUH FRQGXFWHG EHWZHHQ DQG DQG IRXQG D VLJQLILFDQW SRVLWLYH UHODWLRQVKLS EHWZHHQ OHYHO RI HGXFDWLRQ DQG MRE VDWLVIDFWLRQ 6H[ +RSSRFN f REVHUYHG WKDW WKHUH ZHUH QR VH[XDO GLIIHUHQFHV EHWZHHQ VDWLVILHG DQG GLVVDWLVILHG WHDFKHUV DQG WKLV LV VLPLODU WR :HDYHUnV f UHSRUW WKDW WKHUH ZHUH QR FRQVLVWHQW GLIIHUHQFHV EHWZHHQ PDOH DQG IHPDOH VDWLVIDFWLRQ UHFRUGHG LQ QDWLRQDO VXUYH\V FRQGXFWHG EHWZHHQ DQG +RZHYHU 0DUWLQ DQG +DQVRQ f DQG 9DUHD 6KDIIHU DQG 0F&DXOH\ f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f VWXG\ PD\ EH VSXULRXV VLQFH WKH\ UHYLHZHG RQO\ RQH RI VHYHQ VWXGLHV FRQGXFWHG EHWZHHQ DQG DQG VR WKH ILQGLQJV PD\ QRW EH SDUW RI D FRQVLVWHQW SDWWHUQ

PAGE 57

,Q D ILYH\HDU IROORZXS VWXG\ RI FROOHJH JUDGXDWHV 9DUHD 6KDIIHU DQG 0F&DXOH\ f FRPSDUHG WKH VDWLVIDFWLRQ RI WKH VH[HV ZLWK QLQH MRE IDFWRUV 7KHVH IDFWRUV ZHUH VDODU\ DGYDQFHPHQW DQG GLVFUHWLRQ RSSRUWXQLWLHV FRPSDQ\ UHSXWDWLRQ VXSHUYLVRU\ DQG FRZRUNHU UHODWLRQVKLSV QDWXUH RI WKH ZRUN LWVHOI DQG ZRUNLQJ FRQGLWLRQV 7KH UHVSRQVH UDWH ZDV b DQG UHVSRQGHQWV ZHUH FODVVLILHG LQWR KLJK DQG ORZ OHYHO RFFXSDWLRQDO JURXSV EDVHG RQ WKH W\SH RI MREV WKH\ KDG 'DWD FROOHFWHG IURP WKH TXHVWLRQQDLUHV ZHUH DQDO\]HG XVLQJ D RFFXSDWLRQDO OHYHOf ; VH[f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f FRQFOXGHG WKDW SHRSOH DW

PAGE 58

GLIIHUHQW RFFXSDWLRQDO OHYHOV UHDFW GLIIHUHQWO\ WR WKHLU MREV ,Q KLV UHVHDUFK 9R\GDQRII f DOVR GHPRQVWUDWHG WKLV SRLQW DV SHRSOH LQ ILYH RFFXSDWLRQDO JURXSV SURIHVVLRQDO PDQDJHULDO FOHULFDO FUDIWVZRUNHUV DQG ODERUHUVf UHSRUWHG GLIIHUHQFHV LQ WKH IDFWRUV WKDW DIIHFW WKHLU MRE VDWLVIDFWLRQ )RU H[DPSOH FOHULFDO DQG FUDIWVZRUNHUV ZHUH PRUH FRQFHUQHG DERXW VHOIH[SUHVVLRQ LQ WKHLU MREV WKDQ ZHUH SURIHVVLRQDOV PDQDJHUV RU ODERUHUV 9URRP f QRWHG WKDW UHVHDUFKHUV FRQVLVWHQWO\ IRXQG D SRVLWLYH UHODWLRQVKLS EHWZHHQ RFFXSDWLRQDO OHYHOVWDWXV DQG MRE VDWLVIDFWLRQ 6SHFLILFDOO\ SURIHVVLRQDOV WHQG WR EH WKH PRVW VDWLVILHG JURXS DQG XQVNLOOHG ZRUNHUV WKH OHDVW VDWLVILHG :HDYHU f DJUHHG ZLWK WKH REVHUYDWLRQ WKDW HPSOR\HHV LQ KLJK VWDWXV OHYHO MREV WHQG WR EH PRUH VDWLVILHG WKDQ WKRVH LQ ORZ VWDWXV MREV KRZHYHU XQOLNH 9URRP :HDYHU IRXQG WKDW PDQDJHUV DQG QRW SURIHVVLRQDOV ZHUH WKH PRVW VDWLVILHG SHUVRQQHO 7KH IDFW WKDW SHRSOH IHHO EHWWHU DERXW WKHLU MREV LI LW SURYLGHV VRFLDO VWDWXV IRU WKHP ZDV UHFRJQL]HG DV D QHHG LQ WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f 5DFH ,Q D FRPSDULVRQ RI QDWLRQDO MRE VDWLVIDFWLRQ VXUYH\V :HDYHU f SUHVHQWHG HYLGHQFH WR VKRZ WKDW EODFNV ZHUH JHQHUDOO\ OHVV VDWLVILHG WKDQ ZKLWHV 'DWD IRU RWKHU PLQRULWLHV ZHUH QRW SUHVHQWHG 9HFFKLR f ZKR FRPSDUHG WKH UHVXOWV RI WKH 1DWLRQDO 2SLQLRQ 5HVHDUFK &HQWHUnV *HQHUDO 6RFLDO 6XUYH\V WKDW ZHUH FRQGXFWHG EHWZHHQ DQG UHDFKHG D VLPLODU FRQFOXVLRQ ,W

PAGE 59

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f DQG MRE VDWLVIDFWLRQ 9URRP f FRQFOXGHG WKDW WKH FRUUHODWLRQV ZHUH VPDOO DQG LQFRQVLVWHQW WKXV QR ILUP FRQFOXVLRQV FRXOG EH PDGH DERXW WKLV UHODWLRQVKLS +RZHYHU 6ULYDVWD HW DO f PDLQWDLQHG WKDW WKH IDFWRUV WKDW FRQWULEXWH WR MRE VDWLVIDFWLRQ HJ YDULHW\ RI WDVNVf DOVR OHDG WR LQFUHDVHG SURGXFWLYLW\ 7KLV LPSOLHV WKDW WKHUH LV D SRVLWLYH UHODWLRQVKLS EHWZHHQ MRE SHUIRUPDQFH DQG VDWLVIDFWLRQ &RQWUDU\ WR 6ULYDVWD HW DO f .DW]HOO DQG
PAGE 60

WZR ZDV WKH UHZDUGV WKH HPSOR\HH UHFHLYHV 7KH\ EHOLHYHG WKDW RQ FRPSOHWLRQ RI D MRE DQ LQGLYLGXDO UHFHLYHV LQWULQVLF UHZDUGV HJ VHQVH RI DFFRPSOLVKPHQWf DQG H[WULQVLF UHZDUGV HJ SD\f ,I WKH HPSOR\HH SHUFHLYHV WKDW WKH UHZDUGV DUH FRQVLVWHQW ZLWK WKH MRE SHUIRUPDQFH WKLV ZLOO OHDG WR LQFUHDVHG SHUIRUPDQFH /DZOHU DQG 3RUWHU WKHQ WHVWHG WKHLU LGHD XVLQJ PLGGOH DQG ORZHU OHYHO PDQDJHUV (DFK PDQDJHU ZDV JLYHQ D VXUYH\ FRQVLVWLQJ RI LWHPV ZKLFK KDG WZR SDUWV ZLWK RQH SDUW WKDW ZDV XVHG WR GHWHUPLQH DFWXDO VDWLVIDFWLRQ ZLWK UHZDUGV DQG D VHFRQG SDUW XVHG WR GHWHUPLQH WKH OHYHO RI UHZDUG H[SHFWHG E\ WKH HPSOR\HH (DFK LWHP KDG D UHVSRQVH FDWHJRU\ RI PLQLPXPf WR PD[LPXPf DQG WKH UHVSRQVH WR WKH ILUVW SDUW ZDV VXEWUDFWHG IURP WKH UHVSRQVH WR WKH VHFRQG SDUW 7KHVH GLIIHUHQFH VFRUHV ZHUH DGGHG WR REWDLQ D MRE VDWLVIDFWLRQ VFRUH 6XSHUYLVRUV DQG SHHUV ZHUH DVNHG WR UDWH WKH SHUIRUPDQFH RI WKH PDQDJHUV DQG VPDOO EXW VLJQLILFDQW SRVLWLYH UHODWLRQVKLSV ZHUH REWDLQHG IRU MRE VDWLVIDFWLRQ DQG WKH SHUIRUPDQFH UDWLQJV RI VXSHUYLVRUV U e f DQG WKRVH RI WKH SHHUV U e f 7KHVH ILQGLQJV GR JLYH FUHGHQFH WR WKH QRWLRQV RI /DZOHU DQG 3RUWHU EXW VKRXOG EH FRQVLGHUHG WHQWDWLYH XQWLO PRUH UHVHDUFK LV FRQGXFWHG LQ WKLV DUHD $EVHQWHHLVP $V ZLWK WKH VWXGLHV RQ MRE VDWLVIDFWLRQ DQG SURGXFWLYLW\ ZKLFK SURGXFH FRQIOLFWLQJ UHVXOWV VR GR

PAGE 61

VWXGLHV RQ WKH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG DEVHQWHHLVP ,W LV RIWHQ EHOLHYHG WKDW WKHUH LV D QHJDWLYH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG DEVHQWHHLVP )RU H[DPSOH +DFNPDQ DQG /DZOHU f UHSRUWHG D VPDOO QHJDWLYH UHODWLRQVKLS f EHWZHHQ DEVHQWHHLVP DQG MRE VDWLVIDFWLRQ +RZHYHU WKLV FRUUHODWLRQ ZDV QRW VLJQLILFDQW *UXQHEHUJ f VXJJHVWHG WKDW WKH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG DEVHQWHHLVP LV TXLWH FRPSOH[ DV VRPH SHRSOH PD\ EH GLVVDWLVILHG ZLWK WKHLU MREV EXW IHHO PRUDO FRQVWUDLQWV WR DWWHQG HYHU\ GD\ ,W ZRXOG DOVR VHHP OLNHO\ WKDW HPSOR\HHV RXW RI IHDU RI EHLQJ ILUHG ZRXOG QRW GHPRQVWUDWH WRR PXFK DEVHQWHHLVP EHKDYLRU 7XUQRYHU ,Q WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f SURSRVHG WKDW VDWLVILHG HPSOR\HHV DUH OHVV SURQH WR OHDYH WKHLU MREV 7KXV WKHUH LV D KLJK UDWH RI WHQXUH LH ORZ WXUQRYHU UDWHf DPRQJ WKLV JURXS 9URRP f DQG *UXQHEHUJ f LQGLFDWHG WKDW VWXGLHV FRQVLVWHQWO\ GHPRQVWUDWHG D QHJDWLYH UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG WKH WXUQRYHU UDWH 2QH VXFK VWXG\ ZDV FRQGXFWHG E\ +XOLQ f ZKR UHSRUWHG LQFUHDVHV LQ VDWLVIDFWLRQ DQG GHFUHDVHV LQ WXUQRYHU EHKDYLRU DIWHU WKH LPSOHPHQWDWLRQ RI D SURJUDP WR SURPRWH MRE VDWLVIDFWLRQ LQ D PDQXIDFWXULQJ FRPSDQ\ 'XULQJ LW ZDV GHWHUPLQHG WKDW WKLV FRPSDQ\ KDG D b WXUQRYHU UDWH DPRQJ LWV FOHULFDO VWDII ,Q WKH HPSOR\HHV ZHUH

PAGE 62

DVNHG WR FRPSOHWH D PHDVXUH RI MRE VDWLVIDFWLRQ WKH -RE 'HVFULSWLYH ,QGH[ -',f DQG DQDO\VHV RI WKHLU UHVSRQVHV LQGLFDWHG WKDW WKH HPSOR\HHV ZHUH GLVVDWLVILHG ZLWK WKH DGPLQLVWUDWLRQ RI VDODU\ DFURVV ZDJH OHYHOV DQG WKH ODFN RI SURPRWLRQDO RSSRUWXQLWLHV 7KH FRPSDQ\ WKHQ LQVWLWXWHG SURJUDPV WR PDNH VDODULHV PRUH HTXLWDEOH DQG WR DOORZ IRU IUHTXHQW ZDJH UHYLHZV 2WKHU FKDQJHV LQFOXGHG WKH IDFLOLWDWLRQ RI SURPRWLRQDO RSSRUWXQLWLHV DQG WKH SURYLVLRQ RI RSSRUWXQLWLHV IRU WKH FOHUNV WR H[SDQG WKHLU UHVSRQVLELOLWLHV LQ WKHLU MREV ,Q WKH -', ZDV UHDGPLQLVWHUHG DQG RI WKH VWDII PHPEHUV ZKR ZHUH SUHVHQW DW DGPLQLVWUDWLRQ UHWXUQHG WKHLU VXUYH\V :KLOH WKHUH ZDV QRW VLJQLILFDQW DSSUHFLDWLRQ RI RYHUDOO MRE VDWLVIDFWLRQ VFRUHV +XOLQ f XVLQJ WWHVWV VKRZHG WKDW WKHUH ZHUH VLJQLILFDQW LQFUHDVHV LQ WKH HPSOR\HHVn VDWLVIDFWLRQ ZLWK SD\ SURPRWLRQV FRZRUNHUV DQG VXSHUYLVRUV +XOLQ DOVR FKHFNHG WKH WXUQRYHU UDWH DW WKH HQG RI WKH LQWHUYHQWLRQ SHULRG DQG GLVFRYHUHG WKDW WKHUH ZDV D GHFUHDVH IURP b WR b $ 3HDUVRQ FRUUHODWLRQ FRHIILFLHQW ZDV FDOFXODWHG IRU WKH UHODWLRQVKLS EHWZHHQ WKH VDWLVIDFWLRQ DQG WXUQRYHU YDULDEOHV DQG WKLV ZDV IRXQG WR EH S f $OWKRXJK WKHVH UHVXOWV GR VXSSRUW WKH EHOLHI WKDW WXUQRYHU DQG MRE VDWLVIDFWLRQ DUH QHJDWLYHO\ FRUUHODWHG LW VKRXOG EH QRWHG WKDW +XOLQ GLG QRW FRQGXFW D WUXH H[SHULPHQWDO VWXG\ DQG D QXPEHU RI XQFRQWUROOHG YDULDEOHV HJ PDWXULW\ DQG KLVWRU\f FRXOG DFFRXQW IRU VRPH RI WKH FKDQJH

PAGE 63

2FFXSDWLRQDO 6WUHVV 2FFXSDWLRQDO RU MRE VWUHVV LV GHILQHG DV WKH FRQGLWLRQ LQ ZKLFK VRPH IDFWRU RU FRPELQDWLRQ RI IDFWRUV DW ZRUN LQWHUDFWV ZLWK WKH ZRUNHU WR GLVUXSW KLV SV\FKRORJLFDO RU SK\VLRORJLFDO KRPHRVWDVLV 0DUJROLV t .URHV S f 0DUJROLV DQG .URHV DOVR VXJJHVWHG WKDW MRE VWUHVV ZDV WKH UHVXOW RI D SHUVRQHQYLURQPHQW PLVPDWFK DQG LV PDQLIHVWHG DV DQ[LHW\ WHQVLRQ DQJHU IHDU FKURQLF GHSUHVVLRQ DQG IDWLJXH RU LPSDLUHG SK\VLFDO KHDOWK DQG ZRUN SHUIRUPDQFH 0F/HDQ f VXJJHVWHG WKDW RFFXSDWLRQDO VWUHVV LV UHODWHG WR MRE VDWLVIDFWLRQ DQG WKLV ZDV GHPRQVWUDWHG LQ D VWXG\ E\ .\ULDFRX DQG 6XWFOLIIH f 3DUWLFLSDQWV LQ WKH .\ULDFRX DQG 6XWFOLIIH f VWXG\ ZHUH WHDFKHUV IURP %ULWLVK VFKRROV 7KH WHDFKHUV ZHUH DVNHG WR UHVSRQG WR D VXUYH\ GHYHORSHG E\ .\ULDFRX DQG 6XWFOLIIH DQG ZKHQ WKH UHVSRQVHV IURP WKHVH VXUYH\V ZHUH DQDO\]HG LW ZDV IRXQG WKDW D VLJQLILFDQW QHJDWLYH FRUUHODWLRQ U S f H[LVWHG EHWZHHQ MRE VDWLVIDFWLRQ DQG MRE VWUHVV %XUQRXW 7KH GHYHORSPHQW RI WKH FRQFHSW RI EXUQRXW ZDV DWWULEXWHG WR )UHXGHQEHUJHU (GHOZLFK t %URGVN\ f ZKR UHYHDOHG LQ WKDW KH KDG UHFRYHUHG IURP EXUQRXW DQG WKDW KLV FRQGLWLRQ KDG UHVXOWHG IURP KLV HIIRUWV WR PDLQWDLQ WRR PDQ\ SURIHVVLRQDO VRFLDO DQG SHUVRQDO FRPPLWPHQWV 0DVODFK f KDV GRQH H[WHQVLYH UHVHDUFK RQ EXUQRXW DQG UHSRUWHG WKDW LW LV WKH HPSOR\HHfV UHVSRQVH WR FKURQLF MRE VWUHVV

PAGE 64

0DQ\ DXWKRUV HJ 3HUOPDQ DQG +DUWPDQ f KDYH VXJJHVWHG WKDW WKHUH LV D QHJDWLYH OLQN EHWZHHQ MRE VDWLVIDFWLRQ DQG EXUQRXW 7KLV OLQN VHHPV SODXVLEOH EDVHG RQ WKH SUHPLVH WKDW EXUQRXW LV D FKURQLF IRUP RI RFFXSDWLRQDO VWUHVVD QHJDWLYH FRUUHODWH RI MRE VDWLVIDFWLRQ 0HQWDO +HDOWK *UXQHEHUJ f VXEPLWWHG WKDW DOWKRXJK VPDOO WKHUH ZDV D UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG PHQWDO KHDOWK )XUQKDP DQG 6FKDHIIHU f LQYHVWLJDWHG WKLV UHODWLRQVKLS DQG FRQFOXGHG WKDW WKHUH LV D SRVLWLYH FRUUHODWLRQ EHWZHHQ MRE VDWLVIDFWLRQ DQG PHQWDO KHDOWK +RSSRFNnV -RE 6DWLVIDFWLRQ %ODQN +RSSRFN f ZDV XVHG WR PHDVXUH MRE VDWLVIDFWLRQ ZKLOH WKH /DQJQHU ,QGH[ RI 0HQWDO +HDOWK /DQJQHU fDQ LQVWUXPHQW ZKLFK VFUHHQV IRU SV\FKRORJLFDO SUREOHPV DV ZHOO DV GHSUHVVLRQ DQG ZLWKGUDZDOZDV XVHG WR GHWHUPLQH WKH HPSOR\HHVn OHYHO RI PHQWDO KHDOWK 7KHVH LQVWUXPHQWV LQ DGGLWLRQ WR WKH 6HOI 'LUHFWHG 6HDUFK ZHUH DGPLQLVWHUHG WR %ULWLVK DGXOWV ZKR ZHUH IXOOWLPH HPSOR\HHV $ FRPSDULVRQ RI WKH PHDQ VFRUHV RQ WKH LQVWUXPHQWV ZDV FRQGXFWHG XVLQJ 3HDUVRQnV FRUUHODWLRQ DQG WKLV UHYHDOHG WKDW WKHUH ZDV D VLJQLILFDQW QHJDWLYH UHODWLRQVKLS U S f EHWZHHQ MRE VDWLVIDFWLRQ DQG SRRU PHQWDO KHDOWK &RQJUXHQFH RU SHUVRQHQYLURQPHQW ILW ZDV FDOFXODWHG IURP WKH VLPLODULWLHV EHWZHHQ LQGLYLGXDOVn FRGHV RQ WKH 6HOI'LUHFWHG 6HDUFK DQG WKH +ROODQG FRGHV IRU WKHLU RFFXSDWLRQV 7KH UHODWLRQVKLS

PAGE 65

EHWZHHQ FRQJUXHQFH DQG MRE VDWLVIDFWLRQ ZDV IRXQG WR EH S f ZKLOH WKH FDOFXODWHG UHODWLRQVKLS EHWZHHQ FRQJUXHQFH DQG SRRU PHQWDO KHDOWK ZDV S f 7KHUHIRUH LW FDQ EH DVVXPHG WKDW SHRSOH ZKRVH LQWHUHVWV PDWFK WKHLU RFFXSDWLRQV ZLOO PRVW OLNHO\ HQMR\ MRE VDWLVIDFWLRQ DQG JRRG PHQWDO KHDOWK /LIH 6DWLVIDFWLRQ 6WDLQHV DQG 4XLQQ f QRWHG WKDW DFFRPSDQ\LQJ D GHFUHDVH LQ QDWLRQDO MRE VDWLVIDFWLRQ EHWZHHQ DQG ZDV D GHFUHDVH LQ OLIH VDWLVIDFWLRQ /LIH VDWLVIDFWLRQ ZDV GHWHUPLQHG IURP WZR TXHVWLRQV LQ ZKLFK UHVSRQGHQWV ZHUH DVNHG DERXW WKHLU SHUFHSWLRQV RI WKHLU FXUUHQW OHYHO RI VDWLVIDFWLRQ ZLWK OLIH DQG WKD ZD\ WKHLU OLYHV ZHUH EHLQJ VSHQW &KDFNR f GLG D FURVV ODJJHG DQDO\VLV RI WKH UHVXOWV IURP WKH VXUYH\ DQG FRQFOXGHG WKDW MRE VDWLVIDFWLRQ WHQGHG WR LQIOXHQFH OLIH VDWLVIDFWLRQ UDWKHU WKDQ YLFH YHUVD &KDFNRnV REVHUYDWLRQ VKRXOG RQO\ EH WUHDWHG WHQWDWLYHO\ DV FDXVDOLW\ LV EHVW LQIHUUHG IURP H[SHULPHQWDO VWXGLHV +RZHYHU WKHUH GRHV VHHP WR EH VRPH OLQN EHWZHHQ MRE DQG OLIH VDWLVIDFWLRQ IRU DV +RSSRFN f QRWHG D KLJKHU SHUFHQWDJH RI WKH VDWLVILHG WHDFKHUV bf H[SUHVVHG FRQWHQWPHQW ZLWK OLIH WKDQ GLG WKH GLVVDWLVILHG WHDFKHUV b f 6XPPDU\ 6FKRRO FRXQVHORUV SOD\ DQ LPSRUWDQW SDUW LQ WKH HGXFDWLRQDO DQG HPRWLRQDO GHYHORSPHQW RI VWXGHQWV LQ WKH

PAGE 66

QDWLRQnV HOHPHQWDU\ PLGGOHMXQLRU DQG VHQLRU KLJK VFKRROV ,Q WKLV SRVLWLRQ WKH\ VHUYH DV UROH PRGHOV IRU VWXGHQWV +RZHYHU WKHLU UHDFWLRQV WR WKHLU MREV FRXOG LQIOXHQFH WKH PDQQHU LQ ZKLFK WKH VFKRRO FRXQVHORUV GLVFKDUJH WKHLU GXWLHV DQG PXFK KDV EHHQ ZULWWHQ DERXW VFKRRO FRXQVHORUV QHJDWLYH UHDFWLRQV WR WKHLU MREV ,W LV WKH EHOLHI RI PDQ\ DXWKRUV WKDW IDFWRUV OLNH UROH DPELJXLW\ FRQIOLFW DQG RYHUORDG DUH FRQWULEXWRUV WR WKH VFKRRO FRXQVHORUVn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

PAGE 67

7KH PHDVXUHPHQW RI MRE VDWLVIDFWLRQ KDV YDULHG ZLWK LQYHVWLJDWLRQV DV VRPH UHVHDUFKHUV KDYH XVHG LQVWUXPHQWV ZLWK RQH TXHVWLRQ ZKLOH RWKHUV KDYH XVHG TXHVWLRQV $GGLWLRQDOO\ VRPH LQVWUXPHQWV ZHUH GHVLJQHG WR PHDVXUH JHQHUDORYHUDOO MRE VDWLVIDFWLRQ ZKLOH RWKHUV ZHUH GHVLJQHG WR PHDVXUH IDFHWV RU FRPSRQHQWV RI MRE VDWLVIDFWLRQ 7KLV VLWXDWLRQ KDV RIWHQ OHG WR FRQIOLFWLQJ UHVXOWV DQG LQFRQFOXVLYH GDWD ,W ZDV WKLV VLWXDWLRQ WKDW SURPSWHG 6WDLQHV DQG 4XLQQ f WR DVVHUW WKDW LQVWUXPHQWV ZLWK D VLQJXODU TXHVWLRQ FDQ RQO\ JHQHUDWH OLPLWHG GDWD DQG VR WKH\ UHFRPPHQGHG WKH XVH RI LQVWUXPHQWV ZLWK VHYHUDO TXHVWLRQV DLPHG ERWK DW LGHQWLI\LQJ WKH VRXUFHV RI MRE VDWLVIDFWLRQ DQG WKH RYHUDOO OHYHO RI MRE VDWLVIDFWLRQ 2QH LQVWUXPHQW ZKLFK PHHWV WKLV UHTXLUHPHQW LV WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH 064f ZKLFK LV EDVHG RQ WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f 'DZLV DQG /RITXLVW SURSRVHG WKDW MRE VDWLVIDFWLRQ LV WKH UHVXOW RI D FRPSOHPHQWDU\ ILW EHWZHHQ HPSOR\HHVn QHHGV DQG WKH UHZDUGV RI WKH HPSOR\LQJ RUJDQL]DWLRQ DQG WKLV WKLV OHDGV WR WHQXUH 7ZHQW\ QHHGV KDYH EHHQ LGHQWLILHG DQG WKHVH QHHGV RU VRXUFHV RI VDWLVIDFWLRQ KDYH EHHQ FRUURERUDWHG E\ VHYHUDO VWXGLHV ,W KDV DOVR EHHQ GHPRQVWUDWHG WKDW WKH 064 LV D UHOLDEOH DQG YDOLG PHDVXUH RI MRE VDWLVIDFWLRQ DQG VR LW ZDV VHOHFWHG IRU XVH LQ WKLV VWXG\

PAGE 68

&+$37(5 ,,, 0(7+2'2/2*< 7KLV GHVFULSWLYH VWXG\ ZDV GHVLJQHG WR SURYLGH DQ LQGH[ RI WKH FXUUHQW OHYHO RI MRE VDWLVIDFWLRQ DPRQJ VFKRRO FRXQVHORUV LQ WKH $PHULFDQ 6FKRRO &RXQVHORU $VVRFLDWLRQ GHVFULEH WKH VRXUFHV RI MRE VDWLVIDFWLRQ DPRQJ WKLV RFFXSDWLRQDO JURXS DQG GHWHUPLQH LI MRE VDWLVIDFWLRQ FRXOG EH SUHGLFWHG IURP VHOHFWHG SHUVRQDO DQG HPSOR\PHQW YDULDEOHV 7R DFKLHYH WKLV VFKRRO FRXQVHORUV ZHUH VXUYH\HG XVLQJ D MRE VDWLVIDFWLRQ VXUYH\ WKDW FRQVLVWHG RI WZR VHFWLRQVD SHUVRQDO DQG HPSOR\PHQW GDWD VHFWLRQ 3('6f DQG WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH 064f :HLVV 'DZLV (QJODQG t /RITXLVW f &RXQVHORUV DW WKH HOHPHQWDU\ MXQLRUPLGGOH DQG VHQLRU KLJK VFKRROV ZHUH WKHQ FRPSDUHG ZLWK UHVSHFW WR OHYHOV DQG VRXUFHV RI VDWLVIDFWLRQ LQ DGGLWLRQ WKH FRQWULEXWLRQ RI VHOHFWHG YDULDEOHV WR MRE VDWLVIDFWLRQ ZDV GHWHUPLQHG 3RSXODWLRQ DQG 6DPSOH 7KH VDPSOH LQ WKLV VWXG\ ZDV VROLFLWHG IURP WKH FXUUHQW PHPEHUVKLS RI WKH $PHULFDQ 6FKRRO &RXQVHORU $VVRFLDWLRQ $6&$f 7KLV DVVRFLDWLRQ LV D GLYLVLRQ RI WKH $PHULFDQ $VVRFLDWLRQ IRU &RXQVHOLQJ DQG 'HYHORSPHQW DQG ZDV IRUPHG LQ LQ UHFRJQLWLRQ RI WKH IDFW WKDW VFKRRO FRXQVHORUV ZHUH SHUIRUPLQJ D XQLTXH UROH 0LQNRII t 7HUUHV f 7KH

PAGE 69

PHPEHUVKLS ZDV DQG LQFOXGHG VFKRRO FRXQVHORUV VFKRRO FRXQVHOLQJ DQG JXLGDQFH GLUHFWRUV FRXQVHORU HGXFDWRUV DGPLQLVWUDWRUV DQG VR IRUWK IURP WKH 8QLWHG 6WDWHV DQG VHYHUDO IRUHLJQ FRXQWULHV 2I WKH PHPEHUV b ZHUH IHPDOH DQG b ZRUNHG LQ HOHPHQWDU\ VHFRQGDU\ DQG SRVWVHFRQGDU\ LQVWLWXWLRQV 0LQNRII t 7HUUHV f &RGHG VXUYH\V ZHUH VHQW WR D UDQGRP VDPSOH RI VFKRRO FRXQVHORUV RQ WKH $6&$nV PHPEHUVKLS UROO $ WRWDO RI VFKRRO FRXQVHORUV UHWXUQHG WKH VXUYH\V IRU D UHVSRQVH UDWH RI b 8SRQ UHWXUQ UHVSRQVHV ZHUH VFUHHQHG DQG RQO\ WKRVH UHVSRQGHQWV ZKR PHW WKH IROORZLQJ FULWHULD ZHUH LQFOXGHG LQ WKH ILQDO VDPSOH Df 7KH\ ZHUH HPSOR\HG LQ HOHPHQWDU\ PLGGOHMXQLRU RU VHQLRU KLJK VFKRROV Ef KDG WKH PDLQ GXWLHV RI FRXQVHOLQJ FRQVXOWDWLRQ DQG JXLGDQFH Ff ZHUH SUDFWLFLQJ RQ WKH PDLQODQG RI WKH 8QLWHG 6WDWHV RI $PHULFD DQG Gf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

PAGE 70

SDUWWLPH ZKRVH PHDQ DJH ZDV \HDUV $V VKRZQ LQ 7DEOH WKH VFKRRO FRXQVHORUV KDG DQ DYHUDJH PRQWKO\ VDODU\ RI KDG ZRUNHG IRU \HDUV DV VFKRRO FRXQVHORUV DQG VSHQW \HDUV LQ WKHLU SUHVHQW SRVLWLRQV 2WKHU SHUWLQHQW GHPRJUDSKLF GDWD LQFOXGLQJ VH[ DQG GHJUHH OHYHO DUH SUHVHQWHG LQ 7DEOH ,W ZDV QRWHG WKDW WKH PDMRULW\ RI VFKRRO FRXQVHORU UHVSRQGHQWV ZHUH IHPDOH bf KDG D PDVWHUV GHJUHH bf ZHUH HPSOR\HG LQ VHQLRU KLJK VFKRROV bf DQG ZRUNHG LQ SXEOLF VFKRROV bf 7DEOH 'HVFULSWLRQ RI 6DPSOH &KDUDFWHULVWLF 0HDQ 6' 5DQJH $JH Q f 6DODU\ Q f -RE 7HQXUH Q f 2FFXSDWLRQDO 7HQXUH Q f ,QVWUXPHQWDWLRQ (DFK PHPEHU LQ WKH VDPSOH UHFHLYHG WKH MRE VDWLVIDFWLRQ VXUYH\ ZKLFK FRQVLVWHG RI D SHUVRQDO DQG HPSOR\PHQW GDWD VHFWLRQ DQG WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH :HLVV 'DZLV (QJODQG t /RITXLVW f 7KH SHUVRQDO DQG HPSOR\PHQW GDWD VHFWLRQ 3('6f GHYHORSHG E\ WKH LQYHVWLJDWRU ZDV FRPSULVHG RI LWHPV WKDW LQFOXGHG PXOWLSOHFKRLFH DQG RSHQHQGHG TXHVWLRQV

PAGE 71

7DEOH 6DPOH &KDUDFWHULVWLFV &KDUDFWHULVWLF )UHTXHQF\ 3HUFHQWDJH 1 f RI 6DPSOH 6H[ )HPDOH 0DOH 0LVVLQJ FDVHV (PSOR\PHQW )XOOWLPH 3DUWWLPH 0LVVLQJ FDVHV 'HJUHH /HYHO %DFKHORUV 0DVWHUV 6SHFLDOLVW 'RFWRUDWH 0LVVLQJ FDVHV 6FKRRO /HYHO (OHPHQWDU\ 0LGGOHMXQLRU KLJK 6HQLRU KLJK (OHPHQWDU\PLGGOHMXQLRU KLJK 0LGGOHVHQLRU KLJK $OO OHYHOV 0LVVLQJ FDVHV 6FKRRO 6HWWLQJ 8UEDQ 5XUDO 0LVVLQJ FDVHV &RQWURO RI 6FKRRO 3XEOLF 3ULYDWH 0LVVLQJ FDVHV 7KH VHFRQG VHFWLRQ RI WKH MRE VDWLVIDFWLRQ VXUYH\ ZDV WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH 064f 7KH 064 GHYHORSHG E\ :HLVV 'DZLV (QJODQG DQG /RITXLVW ZDV

PAGE 72

SXEOLVKHG LQ ,Q LW ZDV UHYLVHG WR UHPRYH VH[LVW ODQJXDJH 7KH ORQJ IRUP XVHG LQ WKLV VWXG\ FRQVLVWV RI LWHPV WKDW ZHUH GHVLJQHG WR PHDVXUH RYHUDOOJHQHUDO VDWLVIDFWLRQ DV ZHOO DV VDWLVIDFWLRQ ZLWK DVSHFWV RU UHLQIRUFHUV RI WKH MRE HJ DELOLW\ XWLOL]DWLRQ DQG FRPSHQVDWLRQf 3HUPLVVLRQ ZDV REWDLQHG IURP WKH SXEOLVKHU WR UHZRUG VHYHUDO LWHPV WR UHQGHU WKHP PRUH DSSOLFDEOH WR VFKRRO FRXQVHORUV 7KHVH UHYLVLRQV ZHUH QHFHVVDU\ DV WKH 064 ZDV GHYHORSHG IRU XVH LQ LQGXVWULDO VHWWLQJV DQG WHUPV VXFK DV ERVV DQG FRPSDQ\ ZHUH UHSODFHG ZLWK SULQFLSDO DQG VFKRRO ,Q UHYLHZLQJ WKH 064 *XLQ f UHFRPPHQGHG LW DV D UHOLDEOH DQG YDOLG LQVWUXPHQW WKDW FRPSDUHG ZHOO ZLWK RWKHU PHDVXUHV WKDW KDYH EHHQ XVHG H[WHQVLYHO\ IRU PDQ\ \HDUV $FFRUGLQJ WR WKH 0DQXDO IRU WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH :HLVV 'DZLV (QJODQG t /RITXLVW f WKH LQWHUQDO UHOLDELOLW\ RI WKH VFDOHV DQG WKH JHQHUDO VDWLVIDFWLRQ VFDOH LV PRGHUDWH WR KLJK UDQJLQJ IURP WR 7KLV LV DOVR WUXH IRU WHVWUHWHVW UHOLDELOLW\ :HLVV HW DO f DOVR PDLQWDLQHG WKDW WKH 064 GHPRQVWUDWHV FRQFXUUHQW FRQWHQW DQG FRQVWUXFW YDOLGLWLHV 'XQKDP 6PLWK DQG %ODFNEXUQ f DOVR GHPRQVWUDWHG WKDW WKH 064 KDV KLJK GLVFULPLQDQW DQG FRQYHUJHQW YDOLGLWLHV VHH IXUWKHU GLVFXVVLRQ LQ &KDSWHU ,,f ,Q WKLV VWXG\ &URQEDFKnV FRHIILFLHQW DOSKD ZDV XVHG WR GHWHUPLQH WKH UHOLDELOLW\ RI WKH *HQHUDO 6DWLVIDFWLRQ 6FDOH DQG LW ZDV IRXQG WR EH

PAGE 73

'DWD &ROOHFWLRQ ,Q 0DUFK VFKRRO FRXQVHORUV ZHUH PDLOHG D SDFNHW FRQVLVWLQJ RI Df D MRE VDWLVIDFWLRQ VXUYH\ Ef D EXVLQHVV UHSO\ HQYHORSH DQG Ff D FRYHU OHWWHU ZKLFK LQFOXGHG D EULHI GHVFULSWLRQ RI WKH SXUSRVH RI WKH VWXG\ ,Q WKH OHWWHU WKH VFKRRO FRXQVHORUV ZHUH LQVWUXFWHG WR LQGLFDWH WKHLU UHVSRQVHV RQ WKH MRE VDWLVIDFWLRQ VXUYH\ DQG WR UHWXUQ WKH HQWLUH MRE VDWLVIDFWLRQ VXUYH\ LQ WKH EXVLQHVV UHSO\ SRVWDJH SDLGf HQYHORSH 'DWD FROOHFWLRQ ODVWHG ZHHNV 3LORW 6WXG\ 6DWLVIDFWLRQ VXUYH\V ZHUH PDLOHG WR VFKRRO FRXQVHORUV LQ D )ORULGD VFKRRO GLVWULFW LQ 0D\ 7ZHQW\VHYHQ bf VXUYH\V ZHUH UHWXUQHG DQG DIWHU VFUHHQLQJ IRU LQFRPSOHWH VXUYH\V bf VXUYH\V ZHUH GHHPHG XVDEOH 5HVSRQGHQWV LQGLFDWHG WKDW WKH\ FRPSOHWHG WKH HQWLUH VXUYH\ LQ DQ DYHUDJH RI PLQXWHV 7KH ILQDO VDPSOH FRQVLVWHG RI PDOHV DQG IHPDOHV ZLWK VFKRRO FRXQVHORUV ZRUNLQJ LQ HOHPHQWDU\ VFKRROV LQ PLGGOHMXQLRU KLJK VFKRROV DQG LQ VHQLRU KLJK VFKRROV 2YHUDOO WKH JURXS KDG D PHDQ VDWLVIDFWLRQ VFRUH RI RQ D VFDOH UDQJLQJ IURP YHU\ GLVVDWLVILHG WR YHU\ VDWLVILHG 7KLV LQGLFDWHG D PRGHUDWH OHYHO RI MRE VDWLVIDFWLRQ 7KH IHPDOHV UHSRUWHG D KLJKHU OHYHO RI MRE VDWLVIDFWLRQ 0 f WKDQ GLG WKH PDOHV 0 f :KHQ VFKRRO FRXQVHORUV DW WKH WKUHH VFKRRO OHYHOV ZHUH FRPSDUHG

PAGE 74

PLGGOHMXQLRU KLJK VFKRRO FRXQVHORUV UHSRUWHG WKH KLJKHVW OHYHO RI VDWLVIDFWLRQ 0 f DQG KLJK VFKRRO FRXQVHORUV UHSRUWHG WKH ORZHVW OHYHO RI VDWLVIDFWLRQ 0 f (OHPHQWDU\ VFKRRO FRXQVHORUV KDG WKH VHFRQG KLJKHVW OHYHO RI VDWLVIDFWLRQ 0 f %DVHG RQ WKH VFKRRO FRXQVHORUVn UHVSRQVHV WR WKH SHUVRQDO DQG HPSOR\PHQW GDWD VHFWLRQ VHYHUDO FKDQJHV ZHUH PDGH RQ WKH LQVWUXPHQW )RU H[DPSOH RQ LWHP PDQ\ RI WKH VFKRRO FRXQVHORUV LQGLFDWHG WKDW WKH\ ZHUH LQYROYHG LQ LQGLYLGXDO DQG JURXS JXLGDQFH DV ZHOO DV VSHFLDO HGXFDWLRQ UHIHUUDOV DQG VR VXELWHPV Ff If DQG f ZHUH DGGHG WR LWHP $GGLWLRQDOO\ LWHP ZDV RULJLQDOO\ DQ RSHQHQGHG TXHVWLRQ DQG DIWHU WKH SLORW VWXG\ UHVSRQVHV WR WKLV LWHP ZHUH XVHG WR GHYHORS WKH OLVW RI UHDVRQV IRU ZKLFK VFKRRO FRXQVHORUV FKRVH VFKRRO FRXQVHOLQJf IRU WKH ILQDO YHUVLRQ RI WKH LQVWUXPHQW 2WKHU FKDQJHV PDGH DIWHU WKH SLORW VWXG\ ZHUH EDVHG RQ %HVWnV f VXJJHVWLRQV IRU GHVLJQLQJ JRRG TXHVWLRQQDLUHV 6RPH GHWDLO ZDV DGGHG WR VHYHUDO TXHVWLRQV WR UHQGHU WKHP XQDPELJXRXVf DQG WKHQ WKH HQWLUH SHUVRQDO DQG HPSOR\PHQW GDWD VHFWLRQ ZDV UHRUJDQL]HG ([DPSOHV RI LWHPV WKDW ZHUH FODULILHG ZHUH LWHPV DQG ZKHUH QXPHULFDO GHILQLWLRQV ZHUH DGGHG WR HDFK DOWHUQDWLYH DQG LWHPV DQG ZKLFK VSHFLILHG ZKLFK VDODU\ DQG DJH LQIRUPDWLRQ ZHUH GHVLUHG 7KHVH FKDQJHV ZHUH PDGH WR HQVXUH WKDW FRPSDUDEOH GDWD ZHUH UHFHLYHG IURP DOO UHVSRQGHQWV

PAGE 75

7KH UHRUJDQL]DWLRQ LQYROYHG DUUDQJLQJ WKH LWHPV VR WKDW VLPLODU LWHPV ZHUH JURXSHG WRJHWKHU DQG LWHPV UHTXLULQJ IDFWXDO LQIRUPDWLRQ f ZHUH SODFHG DW WKH EHJLQQLQJ RI WKH LQVWUXPHQW 7KRVH LWHPV UHTXLULQJ PRUH WKRXJKW f ZHUH SODFHG DIWHUZDUGV %HVW f DOVR VXJJHVWHG WKDW UHVSRQGHQWV SUHIHU WKDW WKH ODVW LWHP RI D VXUYH\ HOLFLW JFRG IHHOLQJV DQG VR WKH LWHP DVNLQJ UHVSRQGHQWV WR OLVW WKH ILYH PRVW VDWLVI\LQJ DVSHFWV RI WKHLU MREV LWHP f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

PAGE 76

,V WKHUH D UHODWLRQVKLS EHWZHHQ VFKRRO FRXQVHORUVn DJHV DQG UKHLU RYHUDOO OHYHO RI MRE VDWLVIDFWLRQ DV UHSRUWHG RQ WKH 064" ,V WKHUH D UHODWLRQVKLS EHWZHHQ WKH VFKRRO FRXQVHORUVn RYHUDOO OHYHO RI MRE VDWLVIDFWLRQ DQG WKHLU PRQWKO\ VDODULHV" &DQ WKH RYHUDOO MRE VDWLVIDFWLRQ RI VFKRRO FRXQVHORUV EH SUHGLFWHG IURP WKH OHYHO RI VFKRRO LQ ZKLFK WKH\ DUH HPSOR\HG VH[ GHJUHH OHYHO VHWWLQJ RI FRXQVHORUVn VFKRRO FRQWURO RI FRXQVHORUVn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

PAGE 77

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f WR YHU\ VDWLVILHGf DQG WKH PHDQ VFRUH IRU WKH VFKRRO FRXQVHORUV LQ WKLV VWXG\ ZDV 6' 1 f LQGLFDWLQJ WKDW WKH VFKRRO FRXQVHORUV DV D ZKROH ZHUH PRGHUDWHO\ VDWLVILHG 7KLV ILQGLQJ LV FRQVLVWHQW ZLWK WKDW RI WKH SLORW VWXG\ FRQGXFWHG E\ WKH ZULWHU

PAGE 78

5HVHDUFK 4XHVWLRQ 7KH VHFRQG UHVHDUFK TXHVWLRQ ZDV DV IROORZV :KDW DUH WKH VRXUFHV RI MRE VDWLVIDFWLRQ DPRQJ VFKRRO FRXQVHORUV ZKR DUH PHPEHUV RI WKH $PHULFDQ 6FKRRO &RXQVHORU $VVRFLDWLRQ" 7KH DQVZHU WR WKLV TXHVWLRQ ZDV EDVHG RQ WZR VRXUFHV WKH 064 VFDOHV DQG LWHP RI WKH SHUVRQDO DQG HPSOR\PHQW GDWD VHFWLRQ 3('6f RI WKH MRE VDWLVIDFWLRQ VXUYH\ 7KH VFDOHV RI WKH 064 ZHUH H[DPLQHG ILUVW DQG WKRVH ZLWK FRPSRVLWH PHDQ VFRUHV DERYH WKH PLGSRLQW RI WKH VFDOHVf ZHUH XVHG DV VRXUFHV RI MRE VDWLVIDFWLRQ 7KH PHDQ VFRUHV RQ WKHVH VFDOHV KDG D SRVVLEOH UDQJH RI YHU\ GLVVDWLVILHGf WR YHU\ VDWLVILHGf DQG RQ RQO\ RQH VFDOH DGYDQFHPHQW ZDV WKH VFRUH EHORZ 0 6' f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

PAGE 79

7DEOH WKH PDMRULW\ RI VFKRRO FRXQVHORUV bf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f $FWLYLW\ FKDQFH WR NHHS EXV\f &UHDWLYLW\ 0RUDO YDOXHV QRW YLRODWLQJ WKHPf 9DULHW\ RI GXWLHVf $ELOLW\ XWLOL]DWLRQ $FKLHYHPHQW 5HVSRQVLELOLW\ ,QGHSHQGHQFH &RZRUNHUV 6XSHUYLVLRQKXPDQ UHODWLRQV 6HFXULW\ MREf $XWKRULW\ :RUNLQJ FRQGLWLRQV 5HFRJQLWLRQ 6RFLDO VWDWXV 6XSHUYLVLRQWHFKQLFDO 6FKRRO SROLFLHV DQG SUDFWLFHV &RPSHQVDWLRQ

PAGE 80

7DEOH 7KH 0RVW 6DWLVI\LQJ $VSHFWV RI 6FKRRO &RXQVHOLQD /LVWHG E\ WKH &RXQVHORUV 6DWLVI\LQJ Q b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e f $FKLHYHPHQW ) S f $FWLYLW\ ) S f $GYDQFHPHQW ) S B f $XWKRULW\ ) S B f 6FKRRO SROLFLHV DQG SUDFWLFHV ) S e f &RPSHQVDWLRQ ) S M f &RZRUNHUV ) S B f &UHDWLYLW\ ) S B f ,QGHSHQGHQFH ) S B f 0RUDO YDOXHV ) S B f 5HFRJQLWLRQ ) S M f 5HVSRQVLELOLW\ ) S f 6HFXULW\ ) S e f

PAGE 81

6RFLDO VHUYLFH ) S e f 6RFLDO VWDXV ) S e f 6XSHUYLVLRQKXPDQ UHODWLRQV ) S e f 6XSHUYLVLRQWHFKQLFDO ) S e f 9DULHW\ ) S ef :RUNLQJ FRQGLWLRQV ) S e f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nV 0XOWLSOH 5DQJH WHVW ZDV XVHG WR GHWHUPLQH KRZ WKH JURXS PHDQV RI WKH VHYHQ VLJQLILFDQW VFDOHV GLIIHUHG $ UHYLHZ RI WKH GDWD LQ 7DEOH LQGLFDWHG WKDW RQ DOO EXW RQH VFDOH FRZRUNHU WKH PHDQV IRU WKH KLJK VFKRRO FRXQVHORUV ZHUH VLJQLILFDQWO\ ORZHU S e f WKDQ WKRVH RI WKH VFKRRO FRXQVHORUV DW WKH RWKHU WZR OHYHOV 2Q WKH FRn ZRUNHU VFDOH WKH PHDQ IRU WKH KLJK VFKRRO FRXQVHORUV ZDV VLJQLILFDQWO\ ORZHU S e f WKDQ WKDW RI WKH HOHPHQWDU\ VFKRRO FRXQVHORUV EXW QRW VLJQLILFDQWO\ GLIIHUHQW IURP WKDW RI WKH PLGGOHMXQLRU KLJK VFKRRO FRXQVHORUV

PAGE 82

7DEOH 6RXUFH 7DEOHV IRU $QDO\VHV RI 6FKRRO /HYHO 'LIIHUHQFHV RQ 6HYHQ 064 6FDOHV 6RXUFH ') 66 06 ) 6FKRRO SROLFLHV DQG SUDFWLFHV %HWZHHQ JURXSV rrr :LWKLQ JURXSV &RZRUNHUV %HWZHHQ JURXSV rrr :LWKLQ JURXSV &UHDWLYLW\ %HWZHHQ JURXSV rrr :LWKLQ JURXSV 5HFRJQLWLRQ %HWZHHQ JURXSV r :LWKLQ JURXSV 5HVSRQVLELOLW\ %HWZHHQ JURXSV rrr :LWKLQ JURXSV 6XSHUYLVLRQKXPDQ UHODWLRQV %HWZHHQ JURXSV rrr :LWKLQ JURXSV 6XSHUYLVLRQWHFKQLFDO %HWZHHQ JURXSV rr :LWKLQ JURXSV rS B rrS rrrS B

PAGE 83

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f§KXPDQ UHODWLRQV DQG WHFKQLFDO $GGLWLRQDOO\ ERWK WKH PLGGOHMXQLRU DQG VHQLRU KLJK VFKRRO FRXQVHORUV ZHUH OHVV VDWLVILHG ZLWK WKHLU WHDFKHU FRZRUNHUV WKDQ WKH HOHPHQWDU\ VFKRRO FRXQVHORUV $V D FRXQWHUSRLQW WR WKH WKLUG UHVHDUFK TXHVWLRQ D IUHTXHQF\ GLVWULEXWLRQ RI WKH VFKRRO FRXQVHORUVn UHVSRQVHV WR WKH PRVW GLVVDWLVI\LQJ DVSHFWV RI WKHLU MRE ZDV FRQVWUXFWHG 7KH GDWD LQ 7DEOH DUH D FRPSDULVRQ RI WKH

PAGE 84

GLVVDWLVI\LQJ IDFWRUV WKDW ZHUH PRVW IUHTXHQWO\ UHSRUWHG E\ WKH VFKRRO FRXQVHORUV DW WKH WKUHH OHYHOV ,W ZDV VXUPLVHG WKDW FRXQVHORUV HVSHFLDOO\ LQ WKH KLJKHU OHYHOV ZHUH GLVVDWLVILHG ZLWK WKH YROXPH RI SDSHUZRUN DQG QRQSURIHVVLRQDO GXWLHV HJ KDOO GXW\ GLVFLSOLQH DQG EXV GXW\f WKDW WKH\ ZHUH H[SHFWHG WR SHUIRUP DV b RI WKH PLGGOHMXQLRU KLJK VFKRRO FRXQVHORUV DQG b RI WKH KLJK VFKRRO FRXQVHORUV UHSRUWHG GLVVDWLVIDFWLRQ LQ WKLV DUHD ZKLOH b RI WKH HOHPHQWDU\ VFKRRO FRXQVHORUV GLG WKH VDPH 2WKHU FRQFHUQV DPRQJ WKH VFKRRO FRXQVHORUV LQFOXGHG Df UROH RYHUORDG GXH WR WKH KHDY\ ZRUNORDG DQG KLJK FRXQVHORUVWXGHQW UDWLRV HVSHFLDOO\ LQ WKH HOHPHQWDU\ VFKRROV Ef UROH DPELJXLW\ GXH WR XQFOHDU H[SHFWDWLRQV HVSHFLDOO\ DW WKH KLJK VFKRRO OHYHO DQG Ff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

PAGE 85

7DEOH $ &RPSDULVRQ RI WKH 0RVW 'LVVDWLVI\LQJ $VSHFWV RI 6FKRRO &RXQVHOLQJ $V 5HSRUWHG E\ &RXQVHORUV DW (DFK 6FKRRO /HYHO 3HUFHQWDJH RI 6DPSOH 'LVVDWLVI\LQJ (OHP 0LGGOH +LJK 7RWDO DVSHFW Q Q Q Q 3DSHUZRUN 1RQSURI ZRUN +HDY\ ZUNORDG 8QFRRSHUDWLYH SULQFLSDO 8QFOHDU H[SHFWQ 3HUVRQDO IDLOXUH 8QFRRSHUDWLYH SDUHQWV 7HVWLQJ :NLQJ &RQG &RXQVVWXG UDWLR 5HVHDUFK 4XHVWLRQ 7KH IRXUWK UHVHDUFK TXHVWLRQ ZDV DV IROORZV ,V WKHUH D UHODWLRQVKLS EHWZHHQ VFKRRO FRXQVHORUVn DJHV DQG WKHLU RYHUDOO OHYHO RI MRE VDWLVIDFWLRQ DV UHSRUWHG RQ WKH 064" +RSSRFN f IRXQG WKDW WKHUH ZDV D SRVLWLYH UHODWLRQVKLS EHWZHHQ DJH DQG MRE VDWLVIDFWLRQ 7R GHWHUPLQH LI WKLV KHOG WUXH IRU WKH UHVSRQGHQWV LQ WKLV VWXG\ D 3HDUVRQ FRUUHODWLRQ ZDV FDOFXODWHG 7KH UHODWLRQVKLS ZDV VLJQLILFDQW S e f EXW YHU\ VPDOO ZLWK U 7KLV ILQGLQJ LV FRQVLVWHQW ZLWK +RSSRFNnV KRZHYHU LW VKRXOG EH UHJDUGHG WHQWDWLYHO\ VLQFH WKH UHODWLRQVKLS LV VR VPDOO

PAGE 86

5HVHDUFK 4XHVWLRQ 7KH ILIWK UHVHDUFK TXHVWLRQ ZDV DV IROORZV ,V WKHUH D UHODWLRQVKLS EHWZHHQ WKH VFKRRO FRXQVHORUVn RYHUDOO OHYHO RI MRE VDWLVIDFWLRQ DQG WKHLU PRQWKO\ VDODULHV" $ 3HDUVRQ FRUUHODWLRQ ZDV FDOFXODWHG DQG QR VLJQLILFDQW UHODWLRQVKLS S f EHWZHHQ MRE VDWLVIDFWLRQ DQG VDODU\ ZDV IRXQG 7KLV REVHUYDWLRQ FRQWUDGLFWV WKDW RI +DFNPDQ DQG /DZOHU f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nV VFKRRO FRQWURO RI FRXQVHORUnV VFKRRO OHYHO RI LQYROYHPHQW LQ WKH $6&$ DW WKH QDWLRQDO OHYHO OHYHO RI LQYROYHPHQW LQ WKH $6&$ DW WKH VWDWHUHJLRQDO OHYHO DQG WKH QXPEHU RI SURIHVVLRQDO PHPEHUVKLSV KHOG E\ HDFK VFKRRO FRXQVHORU" 7R DQVZHU WR WKLV TXHVWLRQ WKH GDWD ZHUH DQDO\]HG ZLWK D VWHSZLVH PXOWLSOH UHJUHVVLRQ WHFKQLTXH 2I WKH HLJKW SRVVLEOH VWHSV RQO\ WKH ILUVW VHYHQ ZHUH VLJQLILFDQW 7KH VXPPDU\ RI WKH UHJUHVVLRQ DQDO\VLV LV SUHVHQWHG LQ

PAGE 87

7DEOH 7KHVH VHYHQ IDFWRUV ZHUH VH[ LQYROYHPHQW LQ WKH $6&$ DW WKH QDWLRQDO OHYHO QXPEHU RI SURIHVVLRQDO PHPEHUn VKLSV FRQWURO RI VFKRRO LQYROYHPHQW LQ WKH $6&$ DW WKH VWDWHUHJLRQDO OHYHO VFKRRO OHYHO DQG GHJUHH OHYHO KRZHYHU WKHVH IDFWRUV ZHUH QRW JRRG SUHGLFWRUV RI MRE VDWLVIDFWLRQ DV WRJHWKHU WKH\ RQO\ DFFRXQWHG IRU b U f RI WKH YDULDQFH LQ MRE VDWLVIDFWLRQ 2YHUDOO RQO\ WZR RI WKH VHYHQ IDFWRUV ZHUH VLJQLILFDQW S M f SUHGLFWRUV RI MRE VDWLVIDFWLRQ 7KHVH ZHUH VH[ ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFHf DQG WKH QXPEHU RI SURIHVVLRQDO PHPEHUVKLSV KHOG E\ WKH VFKRRO FRXQVHORU ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFHf 7DEOH 0XOWLSOH 5HJUHVVLRQ 6XPPDU\ RI -RE 6DWLVIDFWLRQ 9DULDEOHV 6RXUFH ') 66 06 ) 5HJUHVVLRQ .f 2 5HVLGXDO 3UHGLFWRU 5 %HWD :W U 6WG (UURU ) 6H[ ,QYROYHPHQW LQ $6&$ rr DW QDW OHYHO 1R RI SURI PHPEHUVKLSV rr &RQWURO RI VFK ,QYROYHPHQW LQ $6&$ DW VWDWHUHJ OHYHO 6FKRRO OHYHO 'HJUHH OHYHO rS B rrS B

PAGE 88

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e f WR WKH DQDO\VLV /RFDWHG LQ 7DEOH LV WKH VXPPDU\ IRU WKH DQDO\VLV RI IDFWRUV WKDW FRQWULEXWHG VLJQLILFDQWO\ WR WKH PXOWLSOH UHJUHVVLRQ DQDO\VLV ([DPLQDWLRQ RI WKH GDWD SUHVHQWHG LQ 7DEOH UHYHDOHG WKDW WKH FRPELQHG IDFWRUV ZHUH IDLUO\ JRRG SUHGLFWRUV RI MRE VDWLVIDFWLRQ DV WKH\ DFFRXQWHG IRU b U f RI WKH YDULDQFH LQ MRE VDWLVIDFWLRQ 2I WKH IDFWRUV WKDW ORDGHG LQWR WKH UHJUHVVLRQ DQDO\VLV WKH IROORZLQJ SURYHG WR EH

PAGE 89

VLJQLILFDQW S B f SUHGLFWRUV RI MRE VDWLVIDFWLRQ Df MRE H[SHFWDWLRQV ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH Ef MRE FKDOOHQJH ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH Ff SHUFHQWDJH RI WLPH KHOSLQJ VWXGHQWV ZLWK VFKHGXOHV ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH Gf DGHTXDF\ RI WUDLQLQJ ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH Hf SHUFHQWDJH RI WLPH PDLQWDLQLQJ FXPXODWLYH UHFRUGV ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH If SHUFHQWDJH RI WLPH VSHQW RQ VSHFLDO HGXFDWLRQ UHIHUUDOV DQG SODFHPHQW ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH Jf SHUFHQWDJH RI WLPH VSHQW LQ LQGLYLGXDO JXLGDQFH ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH Kf SHUFHQWDJH RI WLPH VSHQW RQ LQGLYLGXDO SHUVRQDO FRXQVHOLQJ ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH Lf FRXQVHORUVWXGHQW UDWLRV ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH Mf SHUFHQWDJH RI WLPH FRQVXOWLQJ ZLWK SDUHQWV ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH DQG Nf SHUFHQWDJH RI WLPH VSHQW LQ LQGLYLGXDO FDUHHU FRXQVHOLQJ ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH 7KH VWURQJHVW SUHGLFWRUV RI MRE VDWLVIDFWLRQ DPRQJ WKH VFKRRO FRXQVHORUV ZHUH WKH GHJUHH WR ZKLFK WKH MRE PHW WKHLU H[SHFWDWLRQV DQG WKH DPRXQW RI FKDOOHQJH WKHLU MREV RIIHUHG DV WRJHWKHU WKHVH IDFWRUV DFFRXQWHG IRU b RI WKH b RI YDULDQFH LQ WKH VFKRRO FRXQVHORUVn MRE VDWLVIDFWLRQ 6XPPDU\ $IWHU UHYLHZLQJ WKH GDWD LQ WKLV VWXG\ LW ZDV FRQFOXGHG WKDW WKH VFKRRO FRXQVHORUV LQ WKH QDWLRQ ZHUH

PAGE 90

7DEOH 0XOWLSOH 5HJUHVVLRQ 6XPPDU\ RI 5ROH 5HODWHG 9DULDEOHV 6RXUFH ') 66 06 ) 5HJUHVVLRQ r 5HVLGXDO 3UHGLFWRU 5 % :7 67' ) U (5525 -RE H[SHFWDWLRQ n -RE FKDOOHQJH b RI WLPH KHOSLQJ 9 VWXGV ZLWK VFKHG $GHTXDF\ RI WUQJ b RI WLPH PDLQW 9 FXP UHFRUGV ,' b RI WLPH RQ VSHF HG UHI t SOFPW b RI WLPH RQ f LQGLY JXLG b RI WLPH RQ LQGLY n SHUV FRXQVOJ n &RXQVOUVWXG UDWLR b RI WLPH FRQVXOW n ZLWK SDUHQWV b RI WLPH LQ FDUHHU n JUS FRXQVOJ b RI WLPH LQ LQG N' &2 f§ FDUHHU FRXQVOJ b RI WLPH LQ JUS JXLG -RE WHQXUH 2FFXSDWLRQDO WHQXUH b RI WLPH RQ RWKHU GXWLHV rS rrS e PRGHUDWHO\ VDWLVILHG DQG WKDW WKH VRXUFHV RI WKLV VDWLVIDFWLRQ ZHUH PRVWO\ LQWULQVLF IDFWRUV OLNH VHUYLQJ ZRUNLQJ ZLWK RWKHUV DQG DFKLHYHPHQW ,W ZDV DOVR IRXQG WKDW VFKRRO FRXQVHORUV DW WKH HOHPHQWDU\ PLGGOHMXQLRU DQG VHQLRU KLJK VFKRROV ZHUH IRU WKH PRVW SDUW VDWLVILHG E\ WKH VDPH VRXUFHV EXW LQ DUHDV OLNH VFKRRO SROLFLHV DQG

PAGE 91

SUDFWLFHV UHFRJQLWLRQ DQG VXSHUYLVLRQf§KXPDQ UHODWLRQV KLJK VFKRRO FRXQVHORUV ZHUH OHVV VDWLVILHG WKDQ VFKRRO FRXQVHORUV DW WKH RWKHU WZR OHYHOV 'DWD DQDO\VHV DOVR UHYHDOHG WKDW WKHUH ZDV D VPDOO SRVLWLYH UHODWLRQVKLS U f EHWZHHQ WKH VFKRRO FRXQVHORUVn DJHV DQG WKHLU MRE VDWLVIDFWLRQ EXW QRQH H[LVWHG EHWZHHQ WKHLU PRQWKO\ VDODULHV DQG MRE VDWLVIDFWLRQ $GGLWLRQDOO\ LW ZDV REVHUYHG WKDW UROH UHODWHG IDFWRUV OLNH VFKRRO FRXQVHORUVn MRE H[SHFWDWLRQV MRE FKDOOHQJH FDQ EH VLJQLILFDQW SUHGLFWRUV RI MRE VDWLVIDFWLRQ 6RPH RI WKHVH ILQGLQJV VXSSRUW SUHYLRXV DQG UHVHDUFK EXW VRPH FRQWUDGLFW RWKHUV DQG WKHVH VLPLODULWLHV DQG FRQWUDVWV DUH GLVFXVVHG LQ &KDSWHU 9

PAGE 92

&+$37(5 9 6800$5< $1' &21&/86,216 ,Q D UHFHQW UHSRUW RI WKH &ROOHJH %RDUG VFKRRO FRXQVHORUV ZHUH GHHPHG DV HVVHQWLDO WR WKH HGXFDWLRQDO V\VWHP DQG YHU\ LQIOXHQWLDO LQ \RXQJ SHRSOHVn OLYHV .HHJDQ f +RZHYHU DXWKRUV OLNH :HOOV DQG 5LWWHU f KDYH LQGLFDWHG WKDW VFKRRO FRXQVHORUV DUH GLVVDWLVILHG ZLWK WKHLU MREV DQG DUH UHVXOWDQWO\ LQHIIHFWLYH 6LQFH WKHUH KDV QRW EHHQ PXFK HPSLULFDO HYLGHQFH WR VXSSRUW WKH FODLP WKLV VWXG\ ZDV XQGHUWDNHQ WR QRW RQO\ OHDUQ DERXW WKH OHYHO RI VDWLVIDFWLRQ DPRQJ VFKRRO FRXQVHORUV EXW DOVR H[SORUH WKH FRQWULEXWLQJ IDFWRUV WR WKLV VDWLVIDFWLRQ 7R OHDUQ PRUH DERXW MRE VDWLVIDFWLRQ DPRQJ VFKRRO FRXQVHORUV D MRE VDWLVIDFWLRQ VXUYH\ FRQVLVWLQJ RI D SHUVRQDO DQG HPSOR\PHQW GDWD VHFWLRQ 3('6f DQG WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH 064f ZDV PDLOHG WR PHPEHUV RI WKH $PHULFDQ 6FKRRO &RXQVHORU $VVRFLDWLRQ 7KH ILQGLQJV GLVFXVVHG KHUH DUH EDVHG RQ D ILQDO VDPSOH RI VFKRRO FRXQVHORUV 6HYHQ UHVHDUFK TXHVWLRQV ZHUH UDLVHG SHUWDLQLQJ WR Df WKH RYHUDOO OHYHO RI MRE VDWLVIDFWLRQ Ef WKH VRXUFHV RI MRE VDWLVIDFWLRQ DQG YDULDWLRQV DFURVV VFKRRO OHYHOV Ff UHODWLRQVKLSV EHWZHHQ DJH DQG VDODU\ DQG MRE VDWLVIDFWLRQ DQG Gf SUHGLFWLRQV RI MRE VDWLVIDFWLRQ EDVHG RQ SHUVRQDO GHPRJUDSKLF DQG MRE UHODWHG IDFWRUV

PAGE 93

A ,W ZDV IRXQG WKDW 2YHUDOO WKH VFKRRO FRXQVHORUV ZHUH PRGHUDWHO\ VDWLVILHG ZLWK WKHLU MREV )DFWRUV WKDW FRQWULEXWHG WR WKLV VDWLVIDFWLRQ LQFOXGHG JRRG UHODWLRQVKLSV ZLWK VWXGHQWV D VHQVH RI DFKLHYHPHQW KHOSLQJ RWKHUV EHLQJ DEOH WR NHHS EXV\ DELOLW\ XWLOL]DWLRQ DQG FUHDWLYLW\ )RU WKH PRVW SDUW FRXQVHORUV LQ WKH HOHPHQWDU\ PLGGOHMXQLRU DQG VHQLRU KLJK VFKRROV ZHUH VDWLVILHG E\ WKH VDPH VRXUFHV +RZHYHU HOHPHQWDU\ DQG PLGGOHMXQLRU KLJK VFKRRO FRXQVHORUV ZHUH PRUH VDWLVILHG WKDQ KLJK VFKRRO FRXQVHORUV ZLWK WKHLU VFKRRO SROLFLHV RSSRUWXQLWLHV IRU FUHDWLYLW\ UHFRJQLWLRQ UHVSRQVLELOLW\ DQG VXSHUYLVLRQ KXPDQ UHODWLRQV DQG WHFKQLFDO $GGLWLRQDOO\ WKH VFKRRO FRXQVHORUV GLG KDYH VRPH FRQFHUQV WKDW UHODWHG WR UROH FRQIOLFW DPELJXLW\ DQG RYHUORDG 7KHUH ZDV D YHU\ ZHDN EXW VLJQLILFDQW SRVLWLYH UHODWLRQVKLS EHWZHHQ VFKRRO FRXQVHORUVn DJHV DQG MRE VDWLVIDFWLRQ 7KHUH ZDV QR VLJQLILFDQW UHODWLRQVKLS EHWZHHQ PRQWKO\ VDODU\ DQG MRE VDWLVIDFWLRQ 7KH QXPEHU RI SURIHVVLRQDO PHPEHUVKLSV MRE H[SHFWDWLRQV VFKRRO FRXQVHORUVn SHUFHSWLRQ RI WKH DGHTXDF\ RI WKHLU WUDLQLQJ DQG WLPH VSHQW RQ YDULRXV GXWLHV ZHUH SUHGLFWRUV RI MRE VDWLVIDFWLRQ 7KH ILQGLQJV RI WKLV VWXG\ ERWK VXSSRUWHG VRPH HDUOLHU VWXGLHV DQG GLIIHUHG IURP VRPH RWKHUV 7KHVH VLPLODULWLHV DQG GLIIHUHQFHV DUH GLVFXVVHG LQ WKH QH[W VHFWLRQ LQ UHJDUG

PAGE 94

WR WKH VFKRRO FRXQVHORUV WKHRU\ RI ZRUN DGMXVWPHQW DQG MRE VDWLVIDFWLRQ UHVHDUFK )ROORZLQJ WKLV LV D GLVFXVVLRQ RI WKH OLPLWDWLRQV DQG LPSOLFDWLRQV RI WKH VWXG\ DV ZHOO DV VRPH FRQFOXVLRQV GUDZQ IURP WKH VWXG\ 'LVFXVVLRQ RI 5HVXOWV 6FKRRO &RXQVHORUV $OWKRXJK WKH VFKRRO FRXQVHORUV UHSRUWHG D PRGHUDWH OHYHO RI MRE VDWLVIDFWLRQ RQ WKH JHQHUDO VFDOH RI WKH 064 LW ZDV GHWHUPLQHG WKDW VHYHUDO IDFWRUV ZHUH WKUHDWHQLQJ WKHLU VDWLVIDFWLRQ 7KH IDFWRUV GLVFXVVHG KHUH FRQFHUQ Df WKH ODFN RI IXOO SURIHVVLRQDO VWDWXV Ef LQDGHTXDF\ RI VFKRRO FRXQVHORU WUDLQLQJ DQG Ff WKH HIIHFW RI XQPHW H[SHFWDWLRQV 3URIHVVLRQDO VWDWXV 3URSRQHQWV RI WKH YLHZ WKDW VFKRRO FRXQVHORUV DUH GLVVDWLVILHG RIWHQ DUJXH WKDW RQH UHDVRQ IRU WKLV LV WKH IDFW WKDW VFKRRO FRXQVHORUV DUH RFFXSLHG ZLWK D SUHSRQGHUDQFH RI QRQSURIHVVLRQDO GXWLHV ZKLFK $XEUH\ f DUJXHG FRXOG EH DFFRPSOLVKHG E\ FRPSXWHUV DQG OHVVHU SDLG SHUVRQQHO 7KH VFKRRO FRXQVHORUV LQ WKLV VXUYH\ GLG LQGLFDWH WKDW QRQFRXQVHOLQJ GXWLHV ZHUH D VRXUFH RI LUULWDWLRQ DV WKH\ OLVWHG SDSHUZRUN DQG QRQSURIHVVLRQDO GXWLHV DPRQJ WKH PRVW GLVVDWLVI\LQJ DVSHFWV RI WKH MRE $GGLWLRQDOO\ LW ZDV GHWHUPLQHG WKDW WKH SHUFHQWDJH RI WLPH KHOSLQJ VWXGHQWV ZLWK VFKHGXOHV DQG PDLQWDLQLQJ FXPXODWLYH UHFRUGV ZDV QHJDWLYHO\ UHODWHG WR MRE VDWLVIDFWLRQ

PAGE 95

+RZHYHU DIWHU IXUWKHU H[DPLQDWLRQ RI WKH GDWD LW YDV K\SRWKHVL]HG WKDW QRW RQO\ LV RYHUORDG RI SDSHUZRUN DQG QRQSURIHVVLRQDO GXWLHV D SUREOHP EXW UROH FRQIOLFWV DQG DPELJXLW\ DUH DOVR WKH PDLQ FRQWULEXWRUV WR ORZHU OHYHOV RI MRE VDWLVIDFWLRQ DPRQJ WKH VFKRRO FRXQVHORUV 7KHVH SUREOHPV DFFRUGLQJ WR &DSORZ f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n DWWLWXGHV WR WKHLU MREV ZDV VXJJHVWHG E\ 'D\ DQG 6SDUDFLR f ZKR EHOLHYHG WKDW LQDGHTXDWH DQG XQUHDOLVWLF WUDLQLQJ RI VFKRRO FRXQVHORUV UHVXOWHG LQ KLJK OHYHOV RI MRE GLVVDWLVIDFWLRQ ,Q WKLV VWXG\ LW ZDV IRXQG WKDW WKHUH ZDV D SRVLWLYH UHODWLRQVKLS EHWZHHQ VFKRRO FRXQVHORUVn SHUFHSWLRQ RI WKH DGHTXDF\ RI WKHLU WUDLQLQJ DQG WKHLU MRE VDWLVIDFWLRQ DQG WKLV VHHPV WR

PAGE 96

JLYH FUHGHQFH WR 'D\ DQG 6SDUDFLRnV EHOLHI 7R FODULI\ WKHLU SRVLWLRQ PDQ\ VFKRRO FRXQVHORUV YROXQWHHUHG WKH LQIRUPDWLRQ WKDW WKH\ IHOW YHUVHG LQ WKHRU\ EXW QRW LQ WKH DSSOLFDWLRQV RI WKH WKHRU\ 7KHUHIRUH WKH\ IHOW WKH QHHG IRU LQVHUYLFH WUDLQLQJ WR GHYHORS VNLOOV WR FRUUHFW WKLV GHILFLHQF\ DQGRU WR OHDUQ ZD\V RI KDQGOLQJ HPHUJLQJ SUREOHPV OLNH SK\VLFDO DQG GUXJ DEXVH (IIHFW RI XQPHW H[SHFWDWLRQV ,Q DGGLWLRQ WR LQDGHTXDWH WUDLQLQJ %R\ DQG 3LQH f LPSOLHG WKDW XQUHDOLVWLF H[SHFWDWLRQV FRXOG EH DIIHFWLQJ WKH VFKRRO FRXQVHORUVn DWWLWXGHV WR WKHLU MREV 7KLV VXJJHVWLRQ VHHPV WR EH VXSSRUWHG E\ WKLV VXUYH\ DV MRE H[SHFWDWLRQV ZKHQ PHW RU VXUSDVVHG ZHUH YHU\ VWURQJ SUHGLFWRUV RI MRE VDWLVIDFWLRQ ,W DSSHDUV WKDW WKH PRUH FORVHO\ WKH MRE DSSUR[LPDWHG WKH VFKRRO FRXQVHORUVn H[SHFWDWLRQV WKH JUHDWHU ZDV WKHLU VDWLVIDFWLRQ 7KHUHIRUH SULRU WR VHOHFWLQJ WKLV YRFDWLRQ SURVSHFWLYH VFKRRO FRXQVHORUV QHHG WR GHYHORS D UHDOLVWLF SLFWXUH RI WKH UROHV HQWDLOHG LQ WKH SURIHVVLRQ DQG VHW WKHLU H[SHFWDWLRQV DFFRUGLQJO\ 7KHRU\ RI :RUN $GMXVWPHQW -RE VDWLVIDFWLRQ DFFRUGLQJ WR WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f LV WKH UHVXOW RI WKH ZRUN HQYLURQPHQW PHHWLQJ WKH QHHGV RI LWV ZRUNHUV $ PDQLIHVWDWLRQ RI WKLV VDWLVIDFWLRQ LV WHQXUHERWK MRE DQG RFFXSDWLRQDO ,Q WKLV VWXG\ LW ZDV GHWHUPLQHG WKDW WKHUH ZDV QR GLUHFW UHODWLRQVKLS EHWZHHQ MRE VDWLVIDFWLRQ DQG

PAGE 97

RFFXSDWLRQDO WHQXUH LQ WKDW DOWKRXJK WKH VFKRRO FRXQVHORUV LQGLFDWHG D PRGHUDWH VDWLVIDFWLRQ ZLWK WKHLU MREV b RI D WRWDO RI VFKRRO FRXQVHORUV VWDWHG WKDW WKH\ LQWHQGHG WR UHPDLQ LQ VFKRRO FRXQVHOLQJ XQWLO UHWLUHPHQW 7KLV VXJJHVWV D SRWHQWLDOO\ KLJK WXUQRYHU UDWH RU ODFN RI RFFXSDWLRQDO WHQXUH DPRQJ WKH VFKRRO FRXQVHORUV ,Q DGGLWLRQ MRE DQG RFFXSDWLRQDO WHQXUH ZHUH QRW IRXQG WR EH VLJQLILFDQW SUHGLFWRUV RI MRE VDWLVIDFWLRQ LQ WKLV VWXG\ 3HUKDSV WKH LQFRQJUXHQF\ EHWZHHQ WKH VFKRRO FRXQVHORUV MRE VDWLVIDFWLRQ DQG WHQXUH LV URRWHG LQ WKH IDFW WKDW WKH VRXUFH RI WKH PRVW GLVVDWLVIDFWLRQ IRU VFKRRO FRXQVHORUVf§QRQSURIHVVLRQDO GXWLHVZDV OLVWHG RQ WKH VFKRRO FRXQVHORUVn VHOI UHSRUW EXW QRW PHDVXUHG E\ WKH 064 ,W VHHPV SODXVLEOH WR FRQFOXGH WKDW LI WKH 064 KDG EHHQ GHVLJQHG WR PHDVXUH VSHFLILF RFFXSDWLRQDO FRQFHUQV WKH VDWLVIDFWLRQ VFRUHV PD\ KDYH EHHQ ORZHU DQG KHQFH WKHUH PLJKW KDYH EHHQ PRUH FRQVLVWHQF\ EHWZHHQ ORZ VDWLVIDFWLRQ DQG ORZ WHQXUH 3HUKDSV DQRWKHU UHDVRQ IRU WKH GHWHUPLQDWLRQ RI D ODFN RI FRQJUXHQFH EHWZHHQ MRE VDWLVIDFWLRQ DQG WHQXUH LV WKH OLPLWHG IRFXV RI WKH WKHRU\ RI ZRUN DGMXVWPHQW 7KH WKHRU\ LV OLPLWHG LQ VFRSH LQ WKDW 'DZLV DQG /RITXLVW f RQO\ DGGUHVV WKH LVVXH RI HPSOR\HHVn QHHGV ,W ZRXOG VHHP WKDW D PRUH FRPSUHKHQVLYH WKHRU\ ZRXOG EHWWHU H[SODLQ MRE VDWLVIDFWLRQ DQG WHQXUH WKDQ WKH QDUURZO\ IRFXVHG WKHRU\ RI ZRUN DGMXVWPHQW

PAGE 98

-RE 6DWLVIDFWLRQ 5HVHDUFK 5HVHDUFKHUV KDYH LGHQWLILHG VHYHUDO IDFWRUV WKDW DIIHFW MRE VDWLVIDFWLRQ DQG PRVW RI WKHVH IDFWRUV KDYH EHHQ LQFRUSRUDWHG LQWR WKH QHHGV OLVW RI WKH WKHRU\ RI ZRUN DGMXVWPHQW 'DZLV t /RITXLVW f 6LQFH VXSSRUW IRU WKH WKHRU\ RI MRE VDWLVIDFWLRQ ZDV SUHYLRXVO\ DGGUHVVHG WKHVH IDFWRUV DUH QRW GLVFXVVHG LQ WKLV VHFWLRQ 7KH IDFWRUV WKDW DUH GLVFXVVHG KHUH DUH HGXFDWLRQDO OHYHO DQG VH[ DGGLWLRQDOO\ WKH DSSOLFDELOLW\ RI WKH 0+ WKHRU\ DQG SHUVRQHQYLURQPHQW FRQJUXHQF\ PRGHO LV FRQVLGHUHG (GXFDWLRQDO OHYHO 7KH LPSDFW RI HGXFDWLRQDO OHYHO ZDV LQYHVWLJDWHG E\ :HDYHU f DV ZHOO DV 4XLQQ DQG 0DQGLORYLWFK f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f UHSRUWHG WKDW WKHUH ZDV QR UHODWLRQVKLS EHWZHHQ VH[ DQG MRE VDWLVIDFWLRQ EXW WKLV KDV EHHQ FRXQWHUHG E\ 9DUHD 6KDIIHU DQG 0F&DXOH\ f ZKR DGGHG WKDW WKLV HIIHFW ZDV PRUH HYLGHQW DPRQJ SHRSOH LQ WKH KLJKHU HGXFDWLRQDO OHYHOV ,Q WKLV VWXG\ LW

PAGE 99

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f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f $OWKRXJK MRE VDWLVIDFWLRQGLVVDWLVIDFWLRQ PD\ EH RQ D FRQWLQXXP ERWK FRQGLWLRQV DUH PHGLDWHG E\ PDQ\ YDULDEOHV WKDW LQWHUDFW $Q\ WKHRULVW WKDW VHHNV WR SUHGLFW DQG H[SODLQ MRE VDWLVIDFWLRQ PXVW DOORZ IRU WKLV

PAGE 100

LQWHUDFWLRQ DQG EH HQFRPSDVVLQJ 2QH VXFK SRWHQWLDO PRGHO LV WKH SHUVRQHQYLURQPHQW FRQJUXHQF\ PRGHO GHVFULEHG E\ .OHLQ DQG :LHQHU f ,Q WKLV PRGHO WKH LQWHUDFWLRQ EHWZHHQ SHUVRQDOLW\ YDULDEOHV HJ QHHGV H[SHFWDWLRQV DELOLWLHV DQG LQWHUHVWVf DQG MRE YDULDEOHV HJ VXSHUYLVRUV FRZRUNHUV DQG FKDOOHQJHf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n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

PAGE 101

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n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

PAGE 102

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f DJDLQVW WKRVH RI WKH VFKRRO FRXQVHORUV LQ WKLV VWXG\ ,I WKHUH LV QR FRPSOHPHQWDU\ PDWFK WKH FOLHQW RXJKW WR EH FDXWLRQHG DERXW HQWHULQJ WKH SURIHVVLRQ DV WKH FOLHQW PD\ QRW GHULYH VDWLVIDFWLRQ IURP WKH MRE ZHUH KHVKH WR HQWHU VFKRRO FRXQVHOLQJ ,W LV DOVR LPSRUWDQW IRU WKH

PAGE 103

FOLHQW WR FRQVLGHU WKH OHYHO VFKRRO LQ ZKLFK KHVKH VKRXOG SUDFWLFH VLQFH VFKRRO FRXQVHORUV DW WKH HOHPHQWDU\ PLGGOHMXQLRU DQG VHQLRU KLJK VFKRROV GR H[SHULHQFH GLIIHUHQW OHYHOV RI MRE VDWLVIDFWLRQ 6FKRRO &RXQVHORU 7UDLQLQJ ,Q WKLV VWXG\ LW ZDV IRXQG WKDW WKH VFKRRO FRXQVHORUVn SHUFHSWLRQ RI WKH DGHTXDF\ RI WKHLU WUDLQLQJ FDQ PRGHUDWH WKHLU MRE VDWLVIDFWLRQ 7KLV REVHUYDWLRQ LV LPSRUWDQW WR FRXQVHORU HGXFDWRUV DV WKH\ QHHG WR GHVLJQ FXUULFXOD WKDW ZLOO UHDOLVWLFDOO\ SUHSDUH JUDGXDWHV IRU WKHLU MREV ,W LV WUXH WKDW FRXQVHORU HGXFDWLRQ GHSDUWPHQWV KDYH UHVSRQGHG WR WKH FDOO IRU EHWWHU WUDLQLQJ E\ RIIHULQJ D ZLGHU VHOHFWLRQ RI FRXUVHV DQG SURJUDPV :DQW] 6KFKHUPDQ t +ROOLV f DV ZHOO DV DGRSWLQJ FRPSHWHQF\EDVHG FXUULFXOD ,EUDKLP t 7KRPSVRQ f +RZHYHU LW LV ZLVH WR KHHG WKH ZRUGV RI 3LSHV DQG %XFNKDOW f ZKR KDYH FDXWLRQHG WKDW DGGLQJ FRXUVHV ZLWKRXW UHVHDUFK LQWR VFKRRO FRXQVHORUVn UHDO QHHGV FDQ EH VHOIGHIHDWLQJ 7KHUHIRUH LW LV VXJJHVWHG WKDW EHIRUH DGGLQJ FRXUVHV FRXQVHORU HGXFDWRUV VKRXOG JHW LQSXW IURP SUDFWLFLQJ VFKRRO FRXQVHORUV WKURXJK QHHGV DVVHVVPHQW VXUYH\V DQG RWKHU VLPLODU WRROV +RZHYHU FRXQVHORU HGXFDWRUV VKRXOG QRW OLPLW WKHLU ZRUN WR WUDLQHHV EXW VKRXOG H[WHQG WKHLU VHUYLFHV WR SUDFWLFLQJ VFKRRO FRXQVHORUV 7R HQKDQFH WKH MRE VDWLVIDFWLRQ RI VFKRRO FRXQVHORUV HGXFDWRUV FRXOG LPSOHPHQW FRQWLQXLQJ HGXFDWLRQ FRXUVHV DV PDQ\ VFKRRO FRXQVHORUV GR

PAGE 104

IHHO WKH QHHG SURIHVVLRQDO PXWXDO EHQHIL LQ WKDW VFKRR WKHLU VNLOOV FRXQVHORU HGX FRQFHUQV RI V SUHSDUH WUDLQ VRPH UHVHDUFK IRU LQVHUYLFH WUDLQLQJ WR GHYHORS SHUVRQDO DQG VNLOOV 7KLV LQVHUYLFH WUDLQLQJ FRXOG EH RI W WR VFKRRO FRXQVHORUV DQG FRXQVHORU HGXFDWRUV FRXQVHORUV ZRXOG IHHO UHQHZHG IURP KDYLQJ DQG NQRZOHGJH XSGDWHG DQG XSJUDGHG ,Q WXUQ FDWRUV ZRXOG JDLQ PRUH LQVLJKWV LQWR WKH FKRRO FRXQVHORUV DQG WKLV ZRXOG KHOS WKHP WR HHV PRUH UHDOLVWLFDOO\ DQG SHUKDSV VWLPXODWH LGHDV $PHULFDQ 6FKRRO &RXQVHORU $VVRFLDWLRQ ,Q DGGLWLRQ WR WKHLU QHHG IRU FRQWLQXLQJ HGXFDWLRQ SUDFWLFLQJ VFKRRO FRXQVHORUV DOVR IHHO WKH QHHG IRU UROH FODULILFDWLRQ ,W LV WUXH WKDW WKH $6&$ KDV SXEOLVKHG UROH VWDWHPHQWV EXW WKHUH GRHV VHHP WR EH D GLVFUHSDQF\ EHWZHHQ WKH DFWXDO SUDFWLFH RI VFKRRO FRXQVHORUV DQG WKH UROH VWDWHPHQWV 3HUKDSV WKLV GLVFUHSDQF\ FRXOG KHOS DFFRXQW IRU WKH SRWHQWLDOO\ KLJK WXUQRYHU UDWH DPRQJ VFKRRO FRXQVHORUV 7KHUHIRUH PXFK HIIRUW QHHGV WR EH H[SHQGHG E\ WKH $6&$ WR SUHYHQW D KLJK WXUQRYHU UDWH DPRQJ WKH VFKRRO FRXQVHORUV 2QH VWHS WKDW WKH $6&$ FDQ WDNH LV WR UHFUXLW PRUH VFKRRO FRXQVHORUV LQWR LWV PHPEHUVKLS 7KH ROG DGDJH XQLWHG ZH VWDQG GLYLGHG ZH IDOO VHHPV WR DSSO\ KHUH VLQFH WKH $6&$ ZLOO QRW EH H[WUHPHO\ HIIHFWLYH DW WKH ORFDO UHJLRQDO DQGRU QDWLRQDO OHYHOV XQOHVV LW KDV WKH IRUFH RI D ODUJH XQLWHG ERG\ RI VFKRRO FRXQVHORUV $QRWKHU VWHS WKDW WKH $6&$ FDQ WDNH LV WR ZRUN PRUH FORVHO\ ZLWK WKH SULQFLSDOV VFKRRO ERDUGV DQG HGXFDWLRQ

PAGE 105

GHSDUWPHQWV RI WKH YDULRXV VWDWHV WR HQVXUH WKDW WKH VFKRRO FRXQVHORUVn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f &$&5(3 LV DQ LQGHSHQGHQW FRXQFLO WKDW ZDV GHYHORSHG E\ 7KH $PHULFDQ $VVRFLDWLRQ IRU &RXQVHOLQJ DQG 'HYHORSPHQW WR LPSOHPHQW WKH VWDQGDUGV RI WKH FRXQVHOLQJ SURIHVVLRQ LQ SUHSDUDWLRQ SURJUDPV $UFKLYDO )HDWXUH f ,W LV LPSRUWDQW WKDW WKH TXDOLW\ RI VFKRRO FRXQVHORU WUDLQLQJ EH PRQLWRUHG EXW LW LV PRUH LPSRUWDQW WKDW WKLV WUDLQLQJ EH JURXQGHG LQ UHDOLVP

PAGE 106

5HVHDUFK 0XFK KDV EHHQ ZULWWHQ DERXW WKH KLJK OHYHO RI MRE GLVVDWLVIDFWLRQ DPRQJ VFKRRO FRXQVHORUV EXW RIWHQ ZLWKRXW HPSLULFDO HYLGHQFH :KLOH WKH UHVXOWV RI WKLV VWXG\ VHHP WR LQGLFDWH WKDW RYHUDOO VFKRRO FRXQVHORUV DUH VDWLVILHG ZLWK WKHLU MREV WKHUH LV DOVR HYLGHQFH WKDW WKHUH LV D ORZ OHYHO RI RFFXSDWLRQDO WHQXUH DPRQJ WKLV JURXS 7KLV GLIIHUV IURP WKH QRWLRQV RI 'DZLV DQG /RITXLVW f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

PAGE 107

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

PAGE 108

RWKHUV UDWKHU WKDQ H[WULQVLF IDFWRUV OLNH SD\ ,Q DQ DJH RI PDWHULDOLVP LW LV FRPPHQGDEOH WR ILQG SHRSOH ZKR VLQFHUHO\ FDUH DERXW RWKHUVn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

PAGE 109

r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

PAGE 110

5()(5(1&(6 $OEULJKW / ( f >5HYLHZ RI WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH@ ,Q %XURV (Gf 7KH VHYHQWK PHQWDO PHDVXUHPHQWV \HDUERRN 9RO SSf +LJKODQG 3DUN 1*U\SKRQ $PHULFDQ 0HGLFDO $VVRFLDWLRQ 3RZHU SXUSRVH DQG SROLWLFV LQ RUJDQL]HG PHGLFLQH f ,Q +0 9ROOPHU t / 0LOOV (GVf 3URIHVVLRQDOL]DWLRQ SS f (QJOHZRRG &OLIIV 13UHQWLFH+DOO 5HSULQWHG IURP WKH
PAGE 111

&DUUROO % f -RE VDWLVIDFWLRQ .H\ ,VVXHV 6HULHV 1R UHY HGf ,WKDFD 1< &RUQHOO 8QLYHUVLW\ 1HZ 5HYLHZ RI WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH@ ,Q 2. %XURV (Gf 7KH HLJKWK PHQWDO

PAGE 112

PHDVXUHPHQWV \HDUERRN 9RO SS f +LJKODQG 3DUN 1*U\SKRQ +DFNPDQ 5 t /DZOHU ( ( f (PSOR\HH UHDFWLRQV WR MRE FKDUDFWHULVWLFV -RXUQDO RI $SSOLHG 3V\FKRORJ\ +DQVHQ & f 7KH PHDVXUHPHQW RI YRFDWLRQDO LQWHUHVWV ,VVXHV DQG IXWXUH GLUHFWLRQV ,Q 6 %URZQ t 5 : /HQW (GVf +DQGERRN RI FRXQVHOLQJ SV\FKRORJ\ SS f 1HZ
PAGE 113

.\ULDFRX & t 6XWFOLIIH 6f 7HDFKHU VWUHVV DQG VDWLVIDFWLRQ (GXFDWLRQDO 5HVHDUFK /DQJQHU 7 f $ LWHP VFUHHQLQJ VFDOH RI SV\FKLDWULF V\PSWRPV LQGLFDWLQJ LPSDLUPHQW -RXUQDO RI +HDOWK DQG 6RFLDO %HKDYLRXU /DZOHU ( ( t 3RUWHU / : f 7KH HIIHFW RI SHUIRUPDQFH RQ MRE VDWLVIDFWLRQ ,Q 1 :H[OH\ t $
PAGE 114

0RRUH : ( 1HZ
PAGE 115

7KRPDV t 0\ULFN % 0DUFKf $&(6$6&$ &RPPLWWHH RQ VFKRRO FRXQVHOLQJ SUHOLPLQDU\ UHSRUW 5HSRUW SUHVHQWHG DW WKH PHHWLQJ RI WKH $&(6$6&$ &RPPLWWHH RQ 6FKRRO &RXQVHOLQJ +RXVWRQ 7; 86 'HSDUWPHQW RI &RPPHUFH f FHQVXV RI SRSXODWLRQ DQG KRXVLQJ XVHUVn JXLGH 3DUW % *ORVVDU\ 3+&5%f :DVKLQJWRQ '& *RYHUQPHQW 3ULQWLQJ 2IILFH 9DUHD 3 ( 6KDIIHU 6 t 0F&DXOH\ & f 6H[ GLIIHUHQFHV LQ MRE VDWLVIDFWLRQ UHYLVLWHG $FDGHP\ RI 0DQDJHPHQW -RXUQDO 9HFFKLR 5 3 f :RUNHU DOLHQDWLRQ DV D PRGHUDWRU RI WKH MRE TXDOLW\MRE VDWLVIDFWLRQ UHODWLRQVKLS 7KH FDVH RI UDFLDO GLIIHUHQFHV $FDGHP\ RI 0DQDJHPHQW -RXUQDO 9R\GDQRII 3 f 7KH UHODWLRQVKLS EHWZHHQ SHUFHLYHG MRE FKDUDFWHULVWLFV DQG MRE VDWLVIDFWLRQ DPRQJ RFFXSDWLRQDO VWDWXV JURXSV 6RFLRORJ\ RI :RUN DQG 2FFXSDWLRQV M 9URRP 9 + f :RUN DQG PRWLYDWLRQ UHY HGf 0DODEDU )/ .ULHJHU :DQW] 5 $ 6FKHUPDQ $ t +ROOLV : f 7UHQGV LQ FRXQVHORU SUHSDUDWLRQ &RXUVHV SURJUDP HPSKDVLV SKLORVRSKLFDO RULHQWDWLRQ DQG H[SHULHQWLDO FRPSRQHQWV &RXQVHORU (GXFDWLRQ DQG 6XSHUYLVLRQ -B :DUQDWK & ) t 6KHOWRQ / f 7KH XOWLPDWH GLVVDSRLQWPHQW 7KH EXUQHGRXW FRXQVHORU 3HUVRQQHO DQG *XLGDQFH -RXUQDO :DWNLQV & ( f %XUQRXW LQ FRXQVHOLQJ SUDFWLFH 6RPH SRWHQWLDO DQG SHUVRQDO KD]DUGV RI EHFRPLQJ D FRXQVHORU 3HUVRQQHO DQG *XLGDQFH -RXUQDO :HDYHU & 1 f -RE VDWLVIDFWLRQ LQ WKH 8QLWHG 6WDWHV LQ WKH V -RXUQDO RI $SSOLHG 3V\FKRORJ\ :HLVV 'DZLV 5 9 (QJODQG : t /RITXLVW / + f 0DQXDO IRU WKH 0LQQHVRWD 6DWLVIDFWLRQ 4XHVWLRQQDLUH 0LQQHVRWD 6WXGLHV LQ 9RFDWLRQDO 5HKDELODWLRQ [[LLf 0LQQHDSROLV 8QLYHUVLW\ RI 0LQQHVRWD ,QGXVWULDO 5HODWLRQV &HQWHU :HOFK 0HGHLURV '& t 7DWH *$ f %H\RQG EXUQRXW (QJOHZRRG &OLIIV 13UHQWLFH+DOO

PAGE 116

:HOOV & ( t 5LWWHU < f 3DSHUZRHN SUHVVXUH DQG GLVFRXUDJHPHQW 6WXGHQW DWWLWXGHV WRZDUG JXLGDQFH VHUYLFHV DQG LPSOLFDWLRQV IRU WKH SURIHVVLRQ 3HUVRQQHO DQG *XLGDQFH -RXUQDO :KLWKDP 5 / f 7KH SXEOLF VFKRRO V\VWHPD YRLFH WR UHYLWDOL]H $XURUD &2 1DWLRQDO :ULWHUV :LJJLQV f 3HUVRQDOLW\HQYLURQPHQWDO IDFWRUV UHODWHG WR MRE VDWLVIDFWLRQ RI VFKRRO FRXQVHORUV 9RFDWLRQDO *XLGDQFH 4XDUWHUO\ :UHQQ & f 7KH FRXQVHORU LQ D FKDQJLQJ ZRUOG :DVKLQJWRQ '& $PHULFDQ 3HUVRQQHO DQG *XLGDQFH $VVRFLDWLRQ

PAGE 117

%,2*5$3+,&$/ 6.(7&+ *HRUJLHQH %( 0RUJDQ GDXJKWHU RI 6W (OPR 5HLG DQG WKH ODWH $OFLQGD 5HLG ZDV ERUQ LQ 6W &DWKHULQH -DPDLFD RQ $SULO 6KH KDV RQH VLVWHU
PAGE 118

, FHUWLI\ WKDW KDYH UHDG WKLV VWXG\ DQG WKDW LQ P\ RSLQLRQ LW FRQIRUPV WR DFFHSWDEOH VWDQGDUGV RI VFKRODUO\ SUHVHQWDWLRQ DQG LV IXOO\ DGHTXDWH LQ VFRSH DQG TXDOLW\ DV D GLVVHUWDWLRQ IRU WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ 0DUJDUHW PJ%H\IFWH A•KDLU )RQJ%H\eWWH &KDLUSHUVRQ $VVRFLDWH 3URIHVVRU RI &RXQVHORU (GXFDWLRQ FHUWLI\ WKDW KDYH UHDG WKLV VWXG\ DQG WKDW LQ P\ RSLQLRQ LW FRQIRUPV WR DFFHSWDEOH VWDQGDUGV RI VFKRODUO\ SUHVHQWDWLRQ DQG LV IXOO\ DGHTXDWH LQ VFRSH DQG TXDOLW\ DV D GLVVHUWDWLRQ IRU WKHf§GHArHHAe!I 'AWRU RI 3KLORVRSK\ 5R $VVRFLDWH 3 (GXFDWL IHVVRU RI )RXQGDWLRQV RI FHUWLI\ WKDW KDYH UHDG WKLV VWXG\ DQG WKDW LQ P\ RSLQLRQ LW FRQIRUPV WR DFFHSWDEOH VWDQGDUGV RI VFKRODUO\ SUHVHQWDWLRQ DQG LV IXOO\ DGHTXDWH LQ VFRSH DQG TXDOLW\ DV D GLVVHUWDWLRQ IRU WMQH£HJUHH RI 'RFW-"Anf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f 'HDQ &ROOHJH RI (GXFDWLRQnf§A 'HDQ *UDGXDWH 6FKRRO

PAGE 119

81,9(56,7< 2) )/25,'$

PAGE 120

81,9(56,7< 2) )/25,'$


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 EG7JAAGUR_OZO6W1 INGEST_TIME 2012-02-07T15:42:22Z PACKAGE AA00003794_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
FILES