Citation
An investigation of the roles of community college chief executive officers

Material Information

Title:
An investigation of the roles of community college chief executive officers a comparison of selected multi-campus and multi-institution public community college districts
Creator:
Buckner, Richard Gale, 1944-
Publication Date:
Language:
English
Physical Description:
xi, 197 leaves : ; 28 cm.

Subjects

Subjects / Keywords:
Boards of trustees ( jstor )
Business executives ( jstor )
Chancellors ( jstor )
Chief executive officers ( jstor )
College administration ( jstor )
College presidents ( jstor )
Colleges ( jstor )
Community colleges ( jstor )
Junior colleges ( jstor )
Questionnaires ( jstor )
College administrators -- Florida ( lcsh )
Community colleges -- Administration -- Florida ( lcsh )
Genre:
bibliography ( marcgt )
theses ( marcgt )
non-fiction ( marcgt )

Notes

Thesis:
Thesis--University of Florida.
Bibliography:
Includes bibliographical references (leaves 193-196).
General Note:
Typescript.
General Note:
Vita.
Statement of Responsibility:
by Richard G. Buckner, Jr.

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:
000163514 ( ALEPH )
AAS9871 ( NOTIS )
02752651 ( OCLC )

Downloads

This item has the following downloads:


Full Text
AN INVESTIGATION OF THE ROLES OF COMMUNITY COLLEGE CHIEF EXECUTIVE OFFICERS: A COMPARISON OF SELECTED MULTI-CAMPUS AND MULTI-INSTITUTION PUBLIC COMMUNITY COLLEGE DISTRICTS
By
RICHARD G. BUCKNER, JR.
A DISSERTATION PRESENTED TO THE GRADUATE COUNCIL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY
UNIVERSITY OF FLORIDA 1975


ACKNOWLEDGEMENTS
The writer wishes to express gratitude to the many persons whose assistance and support have made this study possible. To the Chairman of the Supervisory Committee, Dr. James L, Wattenbarger, sincere appreciation is expressed for his guidance and encouragement throughout the development and completion of this study. Appreciation is also extended to the other members of the committee, Dr. Ralph B. Kimbrough and Dr. Victor A. Thompson.
To the many people who participated in the study at Mi ami-Dade Community College and at the Dallas County Community College District, the writer wishes to express his gratitude.
The writer wishes to express his deepest appreciation to his wife, Susan, for all her unselfish years of encouragement, assistance, and devoted love, without which this study would not have been possible.
To his children Stephanie, Stephen, and Jason, thank you for waiting and trying to understand when Daddy had to work instead of play.
Finally, the writer wishes to thank his parents, Mr. and Mrs. Richard G. Buckner, Sr., for their continued guidance and love during his formative years.


TABLE OF CONTENTS
Page
ACKNOWLEDGEMENTS......................... ii
LIST OF TABLES.......................... vi i
LIST OF FIGURES......................... 111
ABSTRACT............................. ix
CHAPTER
I INTRODUCTION ...................... 1
The Problem...................... 4
Statement of the Problem .............. 4
Delimitations.................... 5
Limitations..................... 6
Justification for the Study............. 7
Definition of Terms.................. 9
Procedures...................... 10
Sample Selection .................. 10
Development of the Instrument............ 11
Collection of Data................. 16
Data Treatment................... 17
Organization of the Remainder of the Research Report 18
II REVIEW OF RELATED LITERATURE .............. 20
Review of Pertinent Theories of Organization and
Administration ................... 20
Review of Research Studies and Pertinent Literature
on Multi-Unit Community College Districts...... 27
Review of Research Studies and Pertinent Literature
on Community College Chief Executive Officers. ... 37
III MIAMI-DADE: THE ROLE OF THE CHIEF EXECUTIVE OFFICER
AT A MULTI-CAMPUS INSTITUTION............. 50
i i i


CHAPTER Page
Environmental Setting............... 50
Legal Structure of Governance........... 55
Findings of the Questionnaire and Structured
Interviews................... 56
Planning..................... 63
Finance..................... 64
Legitimization .................. 65
External Relations ................ 65
Educational Leadership .............. 66
Evaluation.................... 67
Planning..................... 71
Finance..................... 75
Legitimization .................. 75
External Relations ................ 76
Educational Leadership .............. 76
Evaluation.................... 77
Summation and General Observations on Functions
of the Executive................. 94
IV DALLAS: THE ROLE OF THE CHIEF EXECUTIVE OFFICER AT A
MULTI-INSTITUTION COMMUNITY COLLEGE DISTRICT ..... 97
Environmental Setting............... 97
History and Development of the District...... 98
Legal Structure of Governance........... 102
Findings of the Questionnaire and Structured
Interviews................... 104
Planning..................... Ill
Finance..................... 112
Legitimization .................. 112
External Relations ................ 113
Educational Leadership .............. 114
Evaluation.................... 115
Planning..................... 120
Finance..................... 120
Legitimization................... 124
External Relations................ 125
Educational Leadership .............. 125
Evaluation.................... 126
Summation and General Observations on the Functions
of the Chancellor................. 142
V COMMONALITIES AND DIFFERENCES IN THE ROLES AND FUNCTIONS OF THE CHIEF EXECUTIVE OFFICERS OF THE SELECTED
DISTRICTS....................... 145
iv


CHAPTER Page Actual and Perceived Role of the President
of Miami-Dade Community College...........146
Perceived Importance of Administrative Categories. 146
Perceived Direct and Delegated Functions ..... 147
Perceived Overall Role of the President......148
Actual and Perceived Role of the Chancellor of the
Dallas County Community College District ...... 149
Perceived Importance of Administrative Categories. 149
Perceived Direct and Delegated Functions ..... 151
Perceived Overall Role of the Chancellor.....151
Comparison of the Perceived Roles of the Chief Executive Officers in the Districts Studied.....152
Perceived Importance of Administrative Categories. 152
Perceived Direct and Delegated Functions ..... 153
Perceived Overall Role of the Chief Executive. 154
Accuracy of Perceptions.............. 154
Summation and General Observations .......... 155
VI GENERAL SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
FOR FURTHER STUDY....................156
General Summary....................156
Miami-Dade Community College ............ 157
Dallas County Community College District ...... 158
Commonalities and Differences of the Districts
Studied...................... 159
Perceived Importance of Administrative Categories. 160
Perceived Direct and Delegated Functions ...... 160
Perceived Overall Role of the Chief Executive. ... 161
Accuracy of Perceptions............... 162
Response to Major Questions Posed by the Study .162
Conclusions......................164
Recommendations for Further Study...........167
APPENDICES............................. 169
APPENDIX
A STRUCTURED INTERVIEW GUIDE ................ 170
B QUESTIONNAIRE....................... 175
v


APPENDIX
C COMMUNITY COLLEGE PRESIDENT................184
D COLLEGE ORGANIZATION CHART ................ 186
E CHART II-A THE DISTRICT OFFICE..............188
F CHANCELLOR ..... ................... 190
BIBLIOGRAPHY............................193
BIOGRAPHICAL SKETCH ........................ 197
vi


LIST OF TABLES
TABLE Page
1 RANKING OF ADMINISTRATIVE CATEGORIES AT MIAMI-DADE
COMMUNITY COLLEGE.................... 58
2 FUNCTIONS RANKED WITHIN CATEGORIES AT MIAMI-DADE
COMMUNITY COLLEGE.................... 59
3 PERCENT OF CHIEF EXECUTIVE'S TIME SPENT IN EACH
CATEGORY AT MIAMI-DADE COMMUNITY COLLEGE ........ 70
4 PERCENT OF CHIEF EXECUTIVE'S TIME SPENT ON FUNCTIONS
WITHIN CATEGORIES AT MIAMI-DADE COMMUNITY COLLEGE. ... 72
5 DEGREE OF EXECUTIVE INVOLVEMENT IN SELECTED FUNCTIONS AT
MIAMI-DADE COMMUNITY COLLEGE .............. 79
6 STRUCTURED INTERVIEW: FIVE MOST FREQUENT RESPONSES AT
MIAMI-DADE COMMUNITY COLLEGE .............. 86
7 RANKING OF ADMINISTRATIVE CATEGORIES AT DALLAS COUNTY
COMMUNITY COLLEGE DISTRICT ............... 106
8 FUNCTIONS RANKED WITHIN CATEGORIES AT DALLAS COUNTY
COMMUNITY COLLEGE DISTRICT ............... 107
9 PERCENT OF CHANCELLOR'S TIME SPENT IN EACH CATEGORY AT
DALLAS COUNTY COMMUNITY COLLEGE DISTRICT ........ 117
10 PERCENT OF CHIEF EXECUTIVE'S TIME SPENT ON FUNCTIONS
WITHIN CATEGORIES AT DALLAS COUNTY COMMUNITY COLLEGE
DISTRICT........................ 121
11 DEGREE OF EXECUTIVE INVOLVEMENT IN SELECTED FUNCTIONS AT
DALLAS COUNTY COMMUNITY COLLEGE DISTRICT ........ 128
12 STRUCTURED INTERVIEW: FIVE MOST FREQUENT RESPONSES AT
DALLAS COUNTY COMMUNITY COLLEGE DISTRICT ........ 134
VI 1


LIST OF FIGURES
FIGURES Page
1 Percent of Responses Per Category within Enlarged
Intervals....................... 69
2 Total Frequencies of the Top Five Components...... 93
3 Percent of Responses Per Category within Enlarged
Intervals....................... 119
4 Total Frequencies of the Top Five Components...... 141
5 Rank Order of Administrative Categories by Median Rank
of Participant Perceptions .............. 146
6 Rank Order of Administrative Categories by Median Rank
of Participant Perceptions .............. 149
7 A Comparative Rank Ordering of Administrative Categories
by Median Rank.................... 153
vi i i


Abstract of Dissertation Presented to the Graduate Council of the University of Florida in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy
AN INVESTIGATION OF THE ROLES OF COMMUNITY COLLEGE CHIEF EXECUTIVE OFFICERS: A COMPARISON OF SELECTED MULTI-CAMPUS AND .-.JLTI-INSTITUTION PUBLIC COMMUNITY COLLEGE DISTRICTS
By
Richard G. Buckner, Jr.
August, 1975
Chairman: James L. Wattenbarger
Major Department: Educational Administration
The purpose of this study was to investigate the roles of chief executive officers in selected multi-campus, as compared to multi-institution community college districts. Specifically, the study was designed to answer the following questions:
1. What is the assigned and perceived role of the district chief executive officer in the selected multi-campus district as compared to the assigned and perceived role of the district chief executive officer in the selected multi-institution district?
2. What is the functional relationship of the chief executive officer of individual campuses of a multi-campus district to the chief executive officer of the college?
3. What is the functional relationship of the chief executive officer of individual colleges of a multi-institution district to the chief executive officer of the district?
ix


The two districts were selected on the basis of their particular organizational pattern and history of multi-unit operation, size, and willingness to participate. The individual participants at each district were selected at random from position categories within the institutional environment. The following techniques of data gathering were used at each district: a questionnaire, a structured interview guide, a review of district documents, and general observations. The data were collected through on-site visitations and personal interviews
The results of the analysis of each district, plus a comparison of the commonalities and differences, were presented in separate chapters. From these analyses the following conclusions were formulated:
1. Differences exist in the perceived meanings attributed to the concept of "executive leadership," between the chief executive officer of the multi-unit district and the various other components of the community college environment.
2. Large urban multi-unit community college districts tend to become similar in style and method of operation due to the similarity of their environments, not necessarily because of their formal organizational patterns.
3. Since no universally successful and acceptable organizational patterns seem to exist, multi-unit organizational schemes must be tailor-made to fit the circumstances of each particular situation.
4. Urban multi-unit community college districts tend to require increasingly more central coordination, not increasingly more individua unit autonomy.


5. The degree of centralization of multi-unit districts is influenced by many factors, not solely by the organizational pattern of the district.
6. The chief executive officer in urban multi-unit community college districts tends to be involved more with matters external to the actual operation of the college or district than to matters concerned with the day-to-day operation of the district. Areas of specific executive involvement include relations with the Board of Trustees, interaction with community influentials, and overall planning for the total district.
7. The accuracy of participants' perceptions regarding specifi executive roles tends to decrease as the participants' contact and familiarity with the chief executive position decreases.
xi


CHAPTER I INTRODUCTION
The American two-year college is one of the fastest growing and most dynamic segments of all American education. The growth of two-year colleges, especially public community and junior colleges, has been phenomenal since the turn of the century.
In 1968 there were 739 public community colleges in America with a total enrollment of 1.8 million students. The 1975 Community, Junior, and Technical College Directory (American Association of Community Junior Colleges) reported that there are now 981 public two-year institutions, enrolling over 3.3 million students. The Carnegie Commission on Higher Education estimated that by 1980, 3.6 to 4.3 million students will be enrolled in public community colleges (Medsker & Tillery, 1971, p. 13). Some more recent data indicated that the community colleges in the United States should be serving a minimum of 4.7 million students by 1980 if they attain the level of service of some exemplary colleges (Wattenbarger & Cage, 1974, p. 8). According to the data gathered by Wattenbarger and Cage, (1974, p. 8), the total number of students served could reach as high as 12 million people by 1980.
The rapid growth of public community colleges may be due in great part, to their usual convenience of location, program
1


diversification, relatively low tuition, and the attributed quality of instruction. These factors, coupled with the basic philosophy of increasing post-secondary educational opportunity to more people, has led logically to major expansion of community colleges in the urban centers of America. The urban oriented community college has seen great surges in enrollments over the past five years. The overall size, multiplicity of educational needs within an area, employment and general economic conditions, and the geographic expansiveness of many metropolitan areas have dictated that the community college grow and expand to more than one campus or institution in order to meet increasing demands for educational services. This situation is illustrated by the growth in the number of multi-campus community college districts. Kintzer, Jensen, and Hansen (1969, p. 2) reported that only ten multi-junior college districts were in existence in 1964, but by 1968 the number had already grown to forty. The evolution and actualization of the philosophy of public community colleges, centered around increasing educational opportunities and overall accessibility, will likely mean the urban centers of our country will continue to see the greatest increases in two-year public community college enrollments and program diversification. As urban community college districts become larger, more diversified, and more geographically dispersed, the need for effective coordination and planning will become more and more crucial.
The urban community college district generally takes the organizational form of either a multi-college or a multi-campus


3
network. The multi-college configuration usually contains two or more separate colleges that ban together under some type of district structure. The multi-campus district, on the other hand, is composed of one institution which operates two or more campuses or branches of the one community college.
The increasing complexity of providing post-secondary educational services to large metropolitan areas presents many new and rather unique problems in decision-making for public community college administrators. The coordination of decision-making and responsibility for the areas of instruction, personnel, development, budgeting, etc., must be carefully and clearly planned. The role of the executive administrative officials at both the institution and district levels must be clarified.
The governance of urban community college districts has tended to reflect several organizational configurations, most of which are of a unique and untested nature. The role of central administration, institutional administration, and the general decision-making process are all in need of more empirical study. Several studies have been undertaken to extract empirically useable data from these urban districts. McCluskey (1972), in his doctoral dissertation, made a study of the formal decision-making procedure for student personnel services in the multi-campus community college. Holcombe (1974) did a doctoral study on the formal decision-making for curriculum and instruction in multi-campus community colleges. Bielen (1974), in his doctoral dissertation, reported the findings of his study of budget administration in multi-campus community colleges.


The study presented here adds further to the empirical data already accumulated on multi-campus districts. However, the focus of this study is the assigned and perceived roles of chief executive administrative officers. Empirical data were obtained to identify or clarify the roles these administrators fulfill in multi-campus districts as compared to multi-institution districts.
The Problem
Statement of the Problem
The problem in this study was two-fold. First, to identify the assigned and perceived roles of the chief executive administrative officers in selected multi-campus and multi-institution community college districts. Secondly, to compare the roles of chief executive officers in multi-campus districts with the roles of chief executive officers in multi-institution districts. Answers to the following questions were sought:
1. What is the assigned and perceived role of the district chief executive officer in the selected multi-campus district as compared to the assigned and perceived role of the district chief executive officer in the selected multi-institution district?
2. What is the functional relationship of the chief executive officer of individual campuses of a multi-campus district to the chief executive officer of the college?
3. What is the functional relationship of the chief executive officer of individual colleges of a multi-institution district to the chief executive officer of the district?


Del imitations
The following delimitations were observed in conducting this study:
1. The investigation of executive roles was limited to one multi-campus community college district and one multi-institution community college district.
2. The data collection was limited to an examination of district and institution documents, general observations, responses to a priority ranking of functions instrument, and responses to the structured personal interview.
3. Only the following classifications of individuals were asked to complete a priority ranking of functions and participate in a structured personal interview:
a. Chancellor/President of the community college district.
b. President/chief executive administrator of each campus or institution within the selected district.
c. The chairperson and one other randomly selected member of the Board of Trustees of each selected community college district.
d. Two randomly selected members of the district office staff from each selected community college district.
e. Two randomly selected members of the administrative staff from each campus of the selected community college districts.


f. At least two members of the teaching faculty from each campus of the selected community college districts.
g. Two classified or career service employees from each of the campuses of the selected community college districts.
h. Two full-time students from each campus of the selected community college districts.
4. The interviews were limited to ascertaining the perceptions and interpretations of those interviewed and are not official or necessarily accurate as defined by policy or practice.
5. The list of executive functions for priority ranking by the interviewee was drawn from the literature.
6. The selected districts must have had a minimum of five continuous years of operation as a multi-campus or multi-institution community college district.
Limitations
The following factors posed limitations to this study:
1. All generalizations drawn applied only to the two districts studied, and any inferences drawn to other multi-campus or multi-institution community college districts are speculative.
2. The list of executive functions and the interview guide used in this study were of no tested validity.
3. Only the acknowledged perceptions of those interviewed were recorded, the general social milieu of possible external environmental influences was not studied.


As the demand for expanded access to post-secondary education
has increased, as evidenced by steadily rising enrollments at
community colleges, the challenge to the community college to
provide necessary programs and facilities has become greater.
In response to these increasing demands, community colleges have
grown in size, number of program offerings, and number of campuses.
As decisions are made in response to demands, community college
administrators must base them on realisite and accurate information
The need for empirical data pertaining to community colleges is
illustrated in the following statement:
I would tend to feel from personal observation that current practice represents a hodgepodge of ideas garnered from business, secondary schools, and four-year universities without the benefit of much analysis as to how well their ideas relate to the kinds of problems currently being encountered by the administrative organizations of two-year colleges (Richardson, 1970, p. 18).
One frequent specific response to increasing demand for
educational services has been the formation of large mult-campus
and multi-institution community college districts. The growth
in the number of large community college districts has been
expecially significant over the past two years. From 1972 to
1973, the number of community colleges enrolling over 10,000
students grew from 56 to 66, and those with over 15,000 grew from
21 to 29 (AACJC Directory, 1974, p. 90). Throughout the United
States, particularly in large urban areas, community colleges have


grown into large multi-institution or multi-campus districts. In
1964, there were only ten multi-unit community college districts
in the United States; in 1967, thirty-one were operating; and by
1968, there were forty (Kintzer, et al, 1969, p.2).
This study is an attempt to provide information on current
chief executive roles in multi-campus and multi-institution
community college districts. The need for empirical research
pertaining to the administration of multi-unit community college
districts is acknowledged in the following statement:
While answers are seldom if ever absolute, many decisions related to leadership and authority must be made if the educational enterprise is to operate in the best interests of students decisions clarifying the relationships between the district office and the colleges (Kintzer,et al 1969, p. 2).
The need for research concerning multi-unit community college districts is further evidenced by the following statement by Kintzer:
If the junior college movement is to retain in the years ahead the vigor for which it has been noted in the past, important decisions will have to be made about the future organization and administration of two or more campuses (1969, p. 2).
The trend toward urbanization seems to be quite strong and the trend of community colleges expanding' physical facilities throughout the urban area also seems to be firmly established. This study adds to the empirical research concerning the urban community college district, specifically the role of the chief executive officer in the multi-campus as compared to the multi-institution district governance structures.


This study is the fourth in a planned series of research projects at the University of Florida concerning the administration of multi-unit community college districts. It was preceded by McCluskey's (1972) study of student personnel services, Holcombe's (1974) study of curriculum and instruction, and Bielen's (1974) research on budget administration. There is a need for further empirical research dealing with urban community college districts and their patterns of governance so that a data base can be established to assist community college officials in the effective administration of multi-unit community college systems.
Definition of Terms
Community college. A public post-secondary educational institution providing a definable community or geographic area with programs and courses of instruction in areas such as two-year credit programs for transfer, non-credit community service or continuing education, and occupational education.
Multi-campus district. A public community college organizational pattern which consists of one legal institution operating more than one branch or campus in a legally specified and defined district or jurisdiction.
Multi-institution district. A public community college organizational pattern that consists of more than one separately designated and created institution in one geographically definable area or community college district. The terms multi-college and multi-institution are used synonymously in this study.


10
Multi-unit community college district. A term used broadly to describe a district operating two or more community college sites. It is used to encompass both multi-campus and multi-institution districts.
Chief executive officer. A term used to designate the legally designated chief administrator for a particular community college district. For the purpose of this study ther term chief executive officer isused synonymously with the terms chancellor and district president. For clarity, this study refers to the chief executive officer of an individual campus or institution within a community college district as the institution executive officer.
Procedures
The procedures used in this study are divided into four parts. The first part deals with the method of sample selection. The second part focuses on the development of the instruments used in the study. In part three the methods of data collection are explained. The final part deals with the treatment and analysis of the data after collection. Sample Selection
This study utilized information obtained through personal interviews in two urban community college districts. The selection of one multi-campus district and one multi-institution district observed the following criteria:
1. The district had been multi-campus or multi-institutional for a minimum of five calendar years.


11
2. Each selected district had a minimum student enrollment of 10,000 (head count).
3. Willingness of district officers and institutional officers to participate in the study.
Within each district selected, the following officials or positions were selected as participants:
1. The chief executive officer for the district (chancellor/ president).
2. The chief executive officer for each campus or institution in the district.
3. Chairperson and one other member of the district Board of Trustees.
4. Two members of each district office staff.
5. Two administrative staff members from each campus of each district.
6. A minimum of two members of the teaching faculty from each campus of each district.
7. Two classified or career service employees from each campus of each district.
8. Two full-time students from each campus of each district. Development of the Instrument
The collection of data for this study required the construction of two instruments by the author. The first instrument was a questionnaire used to record the participants' perceived functions of the district chancellor or president. This questionnaire consisted of two main parts.


Part I. Requested the participants to rank order six categories of administrative activities and to also rank order the list of five to six specific activities listed within each category.
Part II. Requested the participants to estimate the percent of time they believed the chancellor or president spent with each of the six designated general administrative categories. They were also asked to estimate the percent of time they believed the district chief executive spend on each of the specific executive activities listed within each administrative category.
The second instrument constructed for use in this study was a "structured interview guide." The interview guide consisted of two parts.
Part I. Each participant was asked twenty-four questions concerning the degree of direct executive involvement in various executive activities. They were asked to respond to each statement or question by using one or more of the following three response categories:
1. The activity is personally performed by the district chancellor or president.
2. The activity is personally delegated by the chancellor or president of the district.
3. The activity is not a direct responsibility of the district chancellor or president.
Part II. Each participant was asked to respond to six open-ended type questions aimed at allowing the respondents to discuss


the perceptions they held concerning the roles and functions of the district chief executive officer.
The review of research and literature provided much valuable input to the development of the instruments used in this study. The studies conducted by Millett (1974), LaVire (1961), and VanTrease (1972) contributed substantially to the conceptualization, as well as the specific content of these instruments.
Millett's (1974) categorization of "techniques of direction" for organizations was used as the basic conceptual framework for the development of the instrument for priority ranking executive functions used in this study. According to Millett, the college enterprise, like all enterprises, requires various input resources and techniques of direction if the stated purposes are to be accomplished and if the designated programs are to be operated. The input resources identified by Millett include the generally recognized inputs of people, physical plant, supplies and equipment, and services. Millett's "techniques of direction" are similar to principles of administration put forth by Fayol (1930) and Gulick (1937).
Millett defined his ten techniques of direction as follows:
1. PIanning--formulation of general purposes (policy planning), and the development of programs to accomplish the purpose (program planning).
2. Organizingthe allocation of roles and the differentiation of activity among individuals and groups of persons in accordance with purposes and program outputs.


3. Programmingthe determination of activity units needed to achieve desired purposes, the calculation of desired outputs of program units, the determination of the required production technology, and the calculation of the needed inputs in terms of staffing, plant, supplies and equipment, services, and time.
4. Budgetingthe allocation of income resources to approved programs and their constituent organizational units.
5. Staffingjob specification, recruitment, appointment, compensation, work evaluation, promotion, consideration of grievances, and separation of personnel required to perform the primary and support programs.
6. Communicatingefforts to achieve a shared understanding of the shared purpose of all persons comprising the enterprise.
7. Coordinatingthe process of motivating people to work together in those areas where activities are interrelated or comprise only a part of a program objective.
8. Cultivating external supportthe process of
seeking out those interested in and concerned with the enterprise, and especially those with influence or power to provide support for the enterprise.
9. Reportingthe distribution of information on a factual and timely basis to all who are interested in the policies, programs, and performance of the enterprise.
10. Evaluatingthe determination of the effectiveness and the efficiency of the enterprise.(Millett, 1974, pp. 10-11)
The study by LaVire (1961) also provided valuable input to the
development of the questionnaire used in this study. LaVire
identified the following eight administrative task areas for


junior college administrators that his study found to be of critical importance.
1. Instruction and curriculum development
2. Student personnel
3. Community-Junior college leadership
4. Staff personnel
5. Physical plant
6. Junior college organization and structure
7. Junior college finance and business
management
8. Human relations,(LaVire, 1961, p. 117)
The findings of the LaVire study contributed greatly to the formation of the six categories of administrative functions used in this study.
The VanTrease (1972) study helped to provide a structure for the
individual administrative categories used in this study. In the
VanTrease study multi-campus community college administrators were
asked to indicate their perception of district participation in
nine selected functions. The general accord in perception of all
the participants regarding the authority relationships in the
district were as follows:
I. Responsibilities Shared between District and Campus
1. Physical facilities planning
2. Responsibility relative to educational planning
3. Publicity
4. Budget development and administration
5. Maintenance of building and grounds


16
II. Responsibilities of the District
1. Administrative data processing
2. Purchasing
3. Accounting
4. Warehousing and supplies (VanTrease, 1972, p. 53). From VanTrease's (1972) data on administrative perceptions of
decision making responsibility, several specific functional areas were identified that were useful in constructing the ranking instrument used in this study.
Graham's (1965) study of the perceived performance of community college presidents in five selected areas of administration provided this study with valuable input regarding category specifications on the questionnaire, as well as the specific twenty-four items used in the structured interview guide. The interview guide used in the present study incorporated the listing of twenty-four items that Graham found to be the functions most performed and delegated by the 182 junior college presidents in his study. Although the present study altered the response categories for each item to accommodate the nature of the study, the intent of the items was not changed. Collection of Data
The collection of the data used in this study was accomplished through on-site visits to the two multi-unit districts selected. During these visitations the author visited every campus or college of each district and carried out two main data gathering tasks.
1. Conducting scheduled personal interviews with each of the participants selected for the study.


2. Examining district and college documents relevant to executive role identification in that district.
Each of the personal interviews lasted between thirty and seventy-five minutes with the administration of the questionnaire taking approximately the first fifteen minutes. All participants were provided the opportunity to ask for clarification of any item and to add any items they believed should be included that were not present. Data Treatment
Examination of the data accumulated during the visits to the two selected community college districts enabled the author to identify the functions of the chief executive officer of each district as perceived by the participants from that district. This information is presented in the chapters on each of the districts.
The two data gathering instruments developed for use in this study yielded a large quantity of valuable raw data. In order to be able to accurately interpret and analyze the raw data the following calculations were made on the data.
1. Frequency tabulations were calculated on all items in both parts of the questionnaire and on all items and categories of responses in the personal interview guide.
2. A percentage of the total universe of responses per item were calculated for all items in both parts of the questionnaire and on all items and categories of responses of the personal interview guide.


3. The statistical mean, median, and mode were calculated for each of the items in Part I of the questionnaire (i.e., those items dealing with the ranking of administrative categories and the specific activities within those categories).
The calculated data were arranged and presented in the form of a series of tables. These tables made interpretation and comparison possible for not only the items within a particular category, but also between the community college districts. The results of the calculations in each of the tables is discussed in the remaining chapters by individual item and in collective or group form.
The final analysis of the data is a determination of the degree of concurrence between the executive roles perceived at the two selected districts, as well as a comparison of these perceptions with the stated functions of the chief executive officer.
Organization of the Remainder of the Research Report
The review of related literature consists of three sections and is presented in Chapter II. The two multi-unit community college districts studied are each presented separately in Chapters III and IV. Each district is described relative to its individual environmental setting, history and development, and legal governance structure. Analysis and discussion of the executive roles and functions identified through the use of official documents, questionnaire responses, interviews, and general observations follow. A brief summary is provided at the end of each of these chapters.


19
Chapter V provides a comparative analysis of the perceived and legal roles and functions of the chief executive officers of the two districts studied. The similarities and differences are discussed and a composit executive role is developed.
The final chapter provides a general summary of the study, a summary of the results of the study, and some conclusions and implications based on the results of the study. Recommendations for further related research are offered in concluding the chapter.


CHAPTER II REVIEW OF RELATED LITERATURE The review of related literature for this study is presented in three sections. The first section is a review of pertinent theories of organization and administration. The second section is a review of the research studies and pertinent literature on multi-unit community college districts. The third section consists of research studies and pertinent literature on community college executive officers.
Review of Pertinent Theories of Organization and Administration
As the complexities of formal organizations increase, so also
do the requirements for more effective methods and techniques of
administration. The executive function has become exceedingly
difficult, as well as more crucial to the successful operation of
the organization. Writing in 1938, Barnard perceptively pinpointed
one of the major difficulties that persists today in attempting to
study and clarify executive functions. He observed that,
...the difficulties of appraising the executive functions or the relative merits of executives lies in the fact that there is little direct opportunity to observe the essential operations of decision. It is a perplexing fact that most executive decisions produce no direct evidence of themselves and that knowledge of them can
20


only be derived from the cumulation of indirect evidence. They must largely be inferred from general results in which they are merely one factor, and from symptomatic indications of roundabout character (Barnard, 1938, pp. 192-193).
Whereas many administrative theorists sought to describe executive functions and the principles governing the administrative process, Barnard concluded that executive functions can only be understood or analyzed as part of the totality of an organization or system. He stated that,
...(executive functions) have no separate concrete existence. They are parts or aspects of a process of organization as a whole.... The means utilized are to a considerable extent concrete acts logically determined; but the essential aspect of the process is the sensing of the organization as a whole and the total situation relevant to it. It transcends the capacity of merely intellectual methods, and the techniques of discriminating the factors of the situation. The terms pertinent to it are "feeling," "judgment," "sense," "proportion," "balance," "appropriateness." It is a matter of art rather than science, and is aesthetic rather than logical. For this reason it is recognized rather than described and is known by its effects rather than by analysis. All that I can hope to do is to state why this is so rather than to specify of what the executive process consists (Barnard, 1938, p. 235).
In clarifying his view of executive functions, Barnard noted
that,
...the function of executives is to serve as channels of communication so far as communications must pass through central positions. But since the object of the communication system is coordination of all aspects of organization, it follows that the functions of executives relate to all the work essential to the vitality and endurance of an organization, so far, at least, as it must be accomplished through formal coordination (Barnard, 1938, p. 215).


More specifically Barnard identified the basic essential executive functions as,
1. Providing the organization with a system of communication, with centers of communication.
2. Promoting and securing of the essential efforts necessary to effective and efficient organizational operation.
3. Formulating and defining organizational purposes (Barnard, 1938, p. 217).
In 1945 Herbert A. Simon published Administrative Behavior, which not only expanded on the work of Barnard, but also elaborated the need for more study of the decision-making process in organizations. Simon (1945, p. 1) noted that, "A general theory of administration must include principles of organization that will insure correct decision-making, just as it must include principles that will insure effective action." Simon's major concern was for the clarification and efficiency of the patterns of action within the organization. He examined the nature of decision-making and set forth his belief that rationality is the key to effective and efficient executive or administrative decision-making. Illustrating rational patterns of specialized decision-making, Simon clarified the role of the chief executive noting that,
A properly managed organization can carry on the routine of its day-to-day activity without the constant involvement of its chief executive. His main responsibility to the organization is not for its routine operation, but for its modification to meet changing demands and opportunities in its
environment____ The chief executive's task is more
than this (adaption and growth)--it is to provide for genuine innovative change in the organization's programs (in Marlick and Van Ness, 1962, p. 66).


23
Getzels and Guba (1958) developed a model for explaining social
behavior that has been the stimulus for much writing and analysis
by administrative theorists. The model is built upon the assumption
that the process of administration deals basically with social
behavior in a hierarchical setting (Morphet, Johns, & Reller, 1967,
p. 67). Getzels states,
...we may conceive of administration structurally as the hierarchy of subordinate-superordinate relationships within a social system. Functionally, this hierarchy of relationships is the locus for allocating and integrating roles and facilities in order to achieve the goals of the social system (Getzels, 1958, p. 151).
Getzels (1958) conceived of organizations as having tv/o independent yet interactive dimensions both of which must be recognized and dealt with appropriately if the organization is to operate effectively. He contended that,
...social behavior may be understood as a function of these major elements: institution, role, and expectation, which together constitute what we shall call the nomothetic or normative dimension of activity in a social system, and individual, personality, and need-disposition, which together constitute the ideographic or personal dimension of activity in a social system (Getzels, 1958, p. 152).
The model and theory developed by Getzels and Guba has helped to focus the attention of executives toward the necessity for dealing with not only the organization and its environment, but the internal individual or personal dimension of the organization environment as well.
Etzioni formulated a theory of organization based on the assumption that the exercise of power involved individual compliance


24
and that all organizations could be classified according to their compliance structures. He defined compliance as "a relation in which an actor behaves in accordance with a directive supported by another actor's power, and the orientation of the subordinated actor to the power applied" (Etzioni, 1961, p. 3). Etzioni assumed that power is exercised in organizations to secure individual rewards and deprivations and different types of power may be necessary depending upon a person's perception of the legitimacy of the exercise of power by his superordinate and the need disposition of his subordinate (Morphet, Reller, & Johns, 1967, p. 70). He identified three sources of organizational control available to the administrator: coercion, economic assets, and normative values (Etzioni, 1961, p. 12). The type power exercised by an executive, according to this theory, then becomes important to the organization insofar as it becomes a factor in determining the individuals degree of positive or negative involvement in the organization.
Presthus (1962) developed a theory of organization based on the individual's reaction or accommodation to the organization within which he operates. Presthus (1962) theorized that the psychological and sociological consequences of the organizational structure on the individual are very substantial. He further theorized that organizations tend to pursue only the organizational or manifest goals and to neglect the individual or latent goals (Presthus, 1962, p. 6). The result, according to Presthus, is individual behavior adaptation or accommodation to the organizational


milieu. Some of these adaptations may be dysfunctional to the accomplishment of the organizational goals. Presthus' concern for the motivations and goals of the individual within the organization is similar to the Getzels and Guba model with two dimensions of organizational activity.
Argyris developed (1962) a theory of organization that is similar to the Presthus and Getzels and Guba models in that he too stressed the human factor. According to Argyris (1962), conflicts arise between the healthy human personality, with its goal of self-fulfillment and independence, and the organizational bureaucratic structure with its formal rules and subordination of the individual. Argyris concluded that a reduction in the degree of dependence and subordination of the individual to rigid organizational structures would have a positive effect on the organizations total effectiveness (Hack, 1965, p. 182).
The chief executive officer of an organization is generally expected to exert some type of leadership within that organization. The leadership style utilized and its relative effectiveness are the result of the interplay of many variables. Thompson (1961) related the complexity of the leadership concept theorizing that although an executive may be placed at the top of a bureaucratic organization chart he may not be the true leader of the organization. He contended that headship and leadership are incompatible and that they are rarely held by the same person at the same time. Thompson (1965, p. 6) illustrated the leadership dilemma noting the growing


26
gap he perceived between decision makers and specialists within organizations. He further contended that, "this situation produces tensions and strains the willingness to cooperate" (Thompson, 1965, p. 6). Thompson issued a warning to executives against becoming bureaupathic, relating that, "The growing imbalance (between the right to decide and the power to do) generates tensions and insecurities in the system of authority.... Attempts to reduce such insecurity often take the form of behavior patterns which are dysfunctional (bureaupathic) from the point of view of the organization, although functional enough from that of the insecure official" (Thompson, 1965, pp. 23-24).
Research studies concerning organizational and community power structures have yielded much data that is of great value to executive officers in large organizations. Perhaps the most relevant realization arising from such studies has been findings supporting the theory that within any social system there exists both formal and informal centers of power (Hunter, 1953). It has further been found that the power structures of social systems differ from one another and that they are a critical element in the operation and effectiveness of a given organization (Nunnery & Kimbroughj 1971, p. 11). Kimbrough (1964) has researched the influence of the informal power structure on decision-making at most all levels of educational organization. The general conclusion reached by Kimbrough and Nunnery (1971, p. 8), that influence is unequally distributed within


social organizations or settings, has major implications for the
chief executive that is charged with the responsibility of
administering an organization.
Review of Research Studies and Pertinent Literature on Multi-Unit Community College Districts
The research studies and literature presented in this section are arranged chronologically.
A study by Erickson (1964) summarizes the experience of the Chicago City Junior College as a case history in the development and operation of a big-city, multi-campus, public junior college. In his discussion Erickson examined the factors he believes have promoted the trend toward urban and multi-campus community junior colleges.
Several factors lie behind the recent development of junior colleges in big cities and the almost simultaneous trend toward multi-campus operations.
First, the rural-to-urban shift of population, resulting from the mechanization of rural farming and the growth of urban industry, is producing rapid concentration of population in urban centers. In Illinois, for example, it is estimated that by 1980, ninety-one percent of college age youth will reside in eight metropolitan areas.
Second, selective population migrations are increasing the need for public educational services in big cities. Families of greater economic competence and fewer children leave the city for the suburbs, while rural and foreign-born families with lower economic status, more children, and lower educational attainment enter the city.
Third, the high birthrate of the postwar years is producing a rapid increase in the college age population.


28
Fourth, rapid changes in technology and consequent changes in the employment market in big cities are placing a premium on functional education for young people and continuing education for adults.
Fifth, administrators and boards of senior colleges and universities are coming to understand more and more the role of the "open-door" junior college in the world of higher education. They recognize the importance of the junior college as a means of conserving and developing the human resources of the big city and of enabling the senior colleges and universities to devote more attention to upper division and graduate programs (Erickson, 1964, pp. 17-18).
Noting that these demands have given impetus not only to the
general growth of urban junior colleges, Erickson stated that they
have also led to the particular development of multi-campus colleges.
The multi-campus, public junior college, with an effective "open-door" admission policy, is uniquely able to provide educational services that are physically accessible to all the city's residents and that meet the varied needs of the many elements of the complex, big-city community (Erickson, 1964, p. 18).
Although optimistic regarding the tremendous potential of a multi-campus community college for providing effectively accessible educational opportunities to all segments of an urban area, Erickson (1964) clearly pinpoints certain problems inherent in such operations. The problems of administrative organization, faculty organization, and the development of varied educational programs are all cited as critical. But the overriding challenge facing multi-campus organizations is expressed by Erickson in regard to administrative structure. "The goal of the administrative organization...is to foster the


creativity and flexibility of each campus, establishing unity in the multi-campus college without rigid conformity" (Erickson, 1964, p. 19).
Jensen (1965) conducted a study to examine the role of both the central office and individual campuses of multi-campus community college districts. The study involved a survey of ten urban multi-campus community college districts in six different states and sought specifically to identify the reasons for multi-campus districts, the type of organization used in such districts, and the major administrative policies and practices followed in six selected areas of administration (Jensen, 1965, p. 8). The principl reasons Jensen identified for the emergence and growth of multi-campus community college organization were:
1. To compensate for district geographical size which prohibited one campus from servicing the district adequately.
2. To equalize educational opportunities through effective accessibility of the college to the residents of the district.
3. To meet the differing educational needs of the various communities within the district.
4. To accommodate applicants after the district's only campus had reached its maximum capacity.
5. To keep each campus to a reasonable and functional size.(Jensen, 1965, p. 8)
As a source for data collection in his case studies, Jensen
(1965) utilized interviews with district and campus staff members,
members of college boards of trustees, and local citizens from each
district. He also surveyed official documents and reports, as well


30
as historical information on each district in the study. Of the ten districts surveyed, Jensen classified two of them as multi-college districts, five as multi-campus districts and three as multi-program districts. The definitions derived by Jensen for use in categorizing multi-unit community college districts are,
1. Multi-college district a district operating two or more individual comprehensive colleges.
2. Multi-branch (multi-campus) district a district operating a single legal institution with two or more comprehensive campuses.
3. Multi-program district a district similar in organization to multi-branch districts except that each branch (or campus) offers a different educational program; for example, a technical and vocational program on one campus, and arts and sciences on another (Jensen, 1965, p. 9).
The findings of the Jensen study have broad applicability to
multi-unit community college districts and have provided impetus
for many other research studies. The major findings Jensen reports
regarding multi-unit districts are,
1. The ten districts in the study can be grouped as either multicollege, multibranch, or
multiprogram.
2. There is a definite trend toward the multi-college organizational pattern in the districts in the study.
3. Administrators, faculty members, and students on individual campuses favor the trend toward the multicollege scheme with its increase in local autonomy.
4. No district has fixed internal geographical boundaries for any of its individual units or campuses.


5. Five districts in the study have central office positions in business and/or instruction which rank higher than the chief campus administrators.
6. Chief campus administrators in seven of the ten districts in the study are titled "dean" or "director," whereas all chief campus administrators in the multicollege district are titled "president."
7. Central offices are located on one of the individual campuses in seven of the eight multibranch and multiprogram districts, which often gives rise to dissension, jealousies, divergent loyalties within the district.(Jensen, 1965, p. 9)
In regard to the centralized-decentralized issue in the organization and administration of multi-unit community college districts, Jensen concludes his study with the following perceptive forecast,
Multicampus junior college districts are here to stay; and even though there are problems, the numbers of such districts will increase. As they progress through their developmental cycle the campuses will tend to become more independent and the majority of multicampus districts will eventually become multicollege districts (Jensen, 1965, p. 13).
Masiko (1966) wrote an article that illustrates how to develop
a multi-campus organization for a metropolitan community college.
Using Miami-Dade Community College as the example, Masiko outlined
the legal structure within which the college must operate and
warned against any universally acceptable scheme of organization.
...While it may be possible to describe an ideal organizational pattern, this must be tempered by the realities of the legal and historical situations in which particular metropolitan community junior


00 _/ (_
colleges find themselves.... Different organizational patterns may be needed at the various stages of growth and development of the multi-campus complex (Masiko, 1966, p. 23).
Bogart (1968) conducted a research study of Tarrant County Junior College District. The study had the two-fold purpose of providing a documented account of the initial development of a multi-campus junior college district, and formulating a set of multi-campus development guidelines. Using interviews, news articles, published materials, letters and various district documents as sources of data, Bogart concluded that only minor differences existed between guidelines used in developing single and multi-campus junior colleges.
Jones (1968) conducted a study of multi-unit community college districts with the purpose of identifying trends in organizational structure and general administration. From his survey of trends toward the multi-unit organizational pattern, Jones identified a continuum that can be used to illustrate the development from centralized to decentralized authority. The major finding in the Jones study concerns the concept of centralized or decentralized authority relationships within community college districts. Specifically, Jones noted that institutions tend to develop longitudinally toward more autonomous operations. In illustration he notes that as a college moves from being small and less complex into the stage of large multi-unit operation, less centralized control is desired in favor of a more autonomous component


33
relationship. Jones further clarified his position stating that,
...The central office provides leadership and much service at the beginning. As the units can meet their own service requirements locally, fewer services should be located centrally. Multi-campus organization should be constantly evolving from strong central control when units are small and weak to much autonomy as the unit demonstrates their ability (Jones, 1968, p. 35).
In 1969, Kintzer, Jensen, and Hansen conducted an entensive study of forty-five multi-unit junior college districts (Kintzer, Jensen, & Hansen, 1969). The districts studied represented seventeen states and included a wide diversity of economic and demographic characteristics. Although Kintzer and his associates concluded that there was no universally "best" organizational scheme for multi-unit districts, they did suggest a categorization of administrative functions that were termed district guidelines. Guidelines suggested for assigning central office functions were,
That a chancellor represent the board of trustees and be responsible for general administration of the entire district.
That the central office have at least three administrative positions besides the chief administrator (chancellor), specifically in the areas of business affairs, instructional programs, and semi-professional education.
That the central office be located completely away from all campuses, preferably at a location central to the entire district.
That no one at the central office, other than the chief administrative officer of the district, be at a level higher than that of the chief campus administrators.(Kintzer, Jensen, & Hansen, 1969, pp. 51-52)
2.
3.


Guidelines suggested for assigning administrative functions to individual colleges were,
1. That each campus have as much autonomy as possible.
2. That experimentation on the campus level be encouraged and supported.
3. That each campus be allowed to hire its own personnel.
4. That the people hired for the positions of chief administrators on the campuses agree with the philosophy of the organization as decided by the board of trustees.
5. That the right type of chairman be chosen for a department within the college.
6. That teachers and administrators have mutual respect for each other's responsibilities and competencies.
7. That leadership is a crucial factor in the success or failure of a district system. (Kintzer, Jensen, & Hansen, 1969, p. 53)
The study by Kintzer, Jensen, and Hansen (1969) identified
many characteristics of multi-unit organizational structures.
Although the authors of the study conclude that multi-campus
junior college districts are here to stay and will continue to
increase in number and size, they also identified some of the major
criticisms and possible disadvantages of this type organization.
Some of these are,
1. Insensitive to particular service areas within the district.
2. Size and complexity of the institution make it not well suited to change and innovation.


3. Community identification with the institution is more difficult to achieve.
4. Central office personnel tend to become too directive.
5. Operating costs are greater especially during the first few years.
6. Dysfunctional competition among the campuses in the district.
7. One campus may become oriented toward vocational or "blue collar" programs and another campus toward only college transfer programs, thereby promoting possible social stigmas.(Kintzer, Jensen, & Hansen, 1969, p. 30).
Block wrote an article in 1970 in which he explored the issue of centralization and decentralization of administrative functions in multi-unit community college districts (Block, 1970). In the article, Block concluded that patterns of multi-unit organization in community college districts are quite varied, thereby making it extremely difficult to identify a set formula which would fit each district's peculiarities. The choice between a centralized multi-campus system and a decentralized multi-college system is a difficult one and usually rests with the board of control of the district. In order to clarify the decision alternatives available, Block identified a list of thirteen questions that must be answered in arriving at an appropriate organizational scheme. In conclusion, Block noted that despite the desired autonomy of local units in a multi-unit district, there are still important areas that require a high degree of uniformity among the colleges in the district.


36
In Governance for the Two-Year College, Richardson, Blocker, and Bender present a comprehensive analysis of the governance structures of two-year colleges. In their description of administrative organizations they present some important concepts regarding multi-institution districts. Noting the trend for urban districts to develop multiple campuses, the authors comment on the degree of centralization stating,
Regardless of the degree of decentralization, there are significant differences between free standing institutions and one that is a part of a system. There is little possibility that the degree of autonomy afforded can ever approach the level that is desired by the constituents of a campus. Even in districts that have sought to provide maximum autonomy to campus units by calling them colleges and by providing the chief executive with the title of president, there is still a constant tension accompanied by the ever-present realization that the needs and priorities of the system take priority over the aspirations of the individual units (Richardson, Blocker, & Bender, 1972, p. 125).
Favoring the participational mode of administration, Richardson,
Blocker, and Bender note that,
...all of the problems that can be attributed to the bureaucratic structure as an organizational form for the individual college are raised to the nth power in a multi-institutional district with n representing the number of campuses. If the multi-institutional district is to remain responsive to the needs of each locality it serves, the concepts of the participative model assume increased importance (Richardson, Blocker, & Bender, 1972, p. 126).
According to these authors, as urban multi-institution districts
increase in size and complexity they also increase the probability
of becoming remote from the needs of their constituencies and


impervious to organizational change (Richardson, Blocker, & Bender, 1972, p. 126). As an alternative to this fate they suggest the use of the participative model concluding that the need for such a model of governance may be greater for multi-institution districts than for a single unit system.
There are many specific areas of multi-unit community college organization and governance that are in need of empirical study. Some studies have been undertaken in several areas to identify empirically useable data from these urban districts. McCluskey (1972) made a study of the formal decision-making procedure for student personnel services in multi-campus community colleges. Holcombe (1974) did a research study on the formal decisionmaking for curriculum and instruction in multi-campus districts. And Bielen (1974), in his doctoral dissertation, reported the findings of his study of budget administration in multi-campus community colleges.
Review of Research Studies and Pertinent Literature on Community College Chief Executive Officers
There has been a great deal of research conducted concerning the role and function of executive officers in various organizational settings. Much of the research pertinent to this study is concerned with business organization, and to some lesser extent, with college chief executives in general. The specific role of the community college chief executive officer has been explored in a much more limited number of research studies. The role of chief


executive officers in multi-unit districts is severely neglected in the research and literature.
The most frequent observation made in studies of community college chief executives is that their role has changed significantly over the past two decades. The following comment well illustrates the situation as it currently exists.
The responsibilities of two-year college presidents have increased and become more complex as the two-year college has assumed a larger and larger share of post-high school education during the past twenty years. These changes are the results of increasing size and complexity which will continue to expand the functions and problems of the college president in the future (Blocker, Plummer, & Richardson, 1965, p. 185).
In 1961, LaVire conducted a research study of the critical task areas for public junior college administrators. LaVire (1961) gathered data for his study from three groups: (1) a panel composed of seven public junior college chief administrators in a selected state; (2) a sample consisting of eighty-two public junior college chief administrators in the nation; and (3) a jury of seven public junior college chief administrators. In his study, LaVire identified five operational areas, or critical task areas of public junior college administration. Within these five areas, he identified forty-nine more specific critical tasks. LaVire (1961, pp. 18-50) lists the critical task areas and critical tasks as follows,
A. Instruction and Curriculum Development
1. Providing for the formulation of curriculum objective.
2. Providing for the determination of curriculum content and organization.


39
3. Relating the desired curriculum to available time, physical facilities, and personnel.
4. Providing for materials, resources, and equipment for the instructional program.
5. Providing for the supervision of instruction.
6. Providing for in-service education of instructional personnel.
B. Student Personnel
1. Providing for initiating and maintaining a system of student accounting and attendance.
2. Providing measures for the orientation of students.
3. Providing counseling services.
4. Providing student health services.
5. Providing for individual student inventory service.
6. Providing for occupational and educational service.
7. Providing for placement and follow-up services for students.
8. Arranging for continual assessment and interpretation of student growth.
9. Providing for means of dealing with student irregularities 10. Providing student activity programs.
C. Physical Plant
1. Determining the physical plant needs of the community and the resources available to meet those needs.
2. Providing leadership in developing a comprehensive plan for the orderly growth and improvement of plant facilities.


3. Initiating and implementing plans for the orderly growth and improvement of plant facilities.
4. Developing an efficient program of operation and maintenance of the physical plant.
Staff Personnel
1. Providing for the formulation of staff personnel policies.
2. Providing for the recruitment of staff personnel.
3. Selecting and assigning staff personnel.
4. Promote the general welfare of the staff.
5. Developing a system of staff personnel records.
6. Stimulating and providing opportunities for professional growth of staff personnel.
Junior College Finance and Business Management
1. Providing for recruiting and organizing the business staff.
2. Obtaining college revenues.
3. Working with the governing board in formulating a salary schedule.
4. Preparing the college budget.
5. Administering capital outlay expenditures and debt service.
6. Administering college purchasing.
7. Accounting for college monies.
8. Accounting for college property.


41
9. Providing for a college insurance program. 10. Providing for a system of internal accounting.
Although the LaVire study did not deal directly with the role of the junior college president, it did provide much empirical data concerning general administrative tasks in public community junior colleges. LaVire's study contributed greatly to the development of the questionnaire used in this study.
In 1962, Shannon investigated the role of public community junior college presidents (Shannon, 1962). In his study Shannon undertook the purpose of analyzing the role of community college presidents as it was perceived by presidents themselves. He placed emphasis on comparisons of actual and preferred frequencies of personal involvement by the president in twelve broad areas of administration. General biographical data was also gathered concerning the community college president, such as; sources, previous experience, and educational backgrounds of these administrators. The major source of data for the Shannon study was a questionnaire mailed to 312 community college presidents. From the results of the study, Shannon (1962, pp. 104-113) reached the following general conclusions concerning the role of the public community college president,
1. Community college administration is sufficiently different from other areas of administration to warrant special professional study and attention.
2. Presidents believe that community colleges should be autonomous and under the jurisdiction of independent boards of control.


3. Most presidents are now drawn from the fields of higher education rather than from secondary education as was the case a decade ago.
4. Fifty-five percent of the presidents hold master's degrees while forty-three percent hold doctorates, indicating no change in percentages since the 1950's.
5. Presidents spend most time on matters relating to (1) staff, (2) public relations, (3) finances, and (4) students. They would prefer to spend their time in the areas of (1) staff, (2) curriculum development, (3) public relations, and (4) students, in that order.
6. Presidents list these areas as most neglected or unattended, in rank order, (1) alumni, (2) legislation, (3) students, and (4) professional activities.
7. Presidents believe their role is that of educational leader both in the community and on the campus. Accordingly, they feel a responsibility to involve themselves in community affairs and to help formulate policy and remain close to the areas of curriculum development, staff and faculty supervision, student personnel work and instruction.
In conclusion, Shannon (1962, pp. 104-113) identified several major implications that are drawn from his findings.
1. Administrators in the field of community college administration must be prepared to handle the multiple responsibilities of autonomous institutions, to understand the special mission of the community college and to interpret this mission broadly to lay and professional persons.


2. Programs of administrator preparation should stress the social setting of the community college and should broaden the administrator's understanding of educational theory, sociology, and modern technology.
3. The personal orientation of the community college president should be rooted in a desire to further the democratization of higher education.
Graham (1965) conducted a study to determine how three variables -school size, geographic location, and reporting authority affected the perceived performance by the presidents of certain acts divided into five areas of administration, and how each president perceived these acts to be. The responses to a questionnaire were also analyzed by the following five administrative processes: planning, organizing, leading, controlling, and assessing. The Graham (1965, pp. 93-100) study produced three findings pertinent to this review,
1. Size class of the school showed an inverse relationship between the size class and the importance attached to the various items concerning administrative activity of presidents.
2. Except in the Mountain West, the farther west the location the higher the indicated mean response concerning the importance of an activity.
3. All class sizes of colleges and all geographic locations indicated assessing as the most important administrative process undertaken by the community college presidents.


DeLoache (1966) used the questionnaire method in his study to test whether or not faculty members and presidents attach importance to the same aspects of the functions of junior college presidents. The findings of his study revealed the following,
1. The difference between the faculty members and the presidents were in the degree of importance each attributed the statements to the office of president.
2. The results of the Chi-square test of significance indicated that there were significant statistical differences between rural and urban colleges on only four of thirty-four statements applicable to the use of the Chi-square test.
3. The presidents indicated greater expectations of the office of president than did the faculty members on forty-two of fifty-seven statements of the questionnaire.
4. Rural institutions had a greater expectation of the office of president on forty-eight of fifty-seven statements of the questionnaire.
Simon wrote an article in 1967 in which he described the job of a college president (Simon, 1967). The major functions of the chief executive officer according to Simon are,
1. Raising money.
2. Balancing the budget.
3. Participating in the establishment of institutional goals.
4. Working with faculty to create an environment that encourages learning.


5. Recruiting and maintaining a high quality of faculty.(Simon, 1967, pp. 68-78)
In the article Simon (1967) draws a parallel between the responsibilities of the college president and those of top executives in other types of organizations. Although the functions he enumerates are not intended specifically for the community college president, they do provide accurate representation of generally applicable functions discussed in much of the literature.
Morrissey, in a 1967 article, presented his view that multi-unit community college districts should be decentralized in administrative structure.
I recommend that in complex community college systems each college established be called a college, with the privilege of naming the school reserved for the college professionals and interested citizens of the region to be served. The word "campus" calls forth the mumified ghost of higher educational mistakes; the word "college" describes what the institution is in fact (Morrissey, 1967, p. 40).
In regard to the chief administrative officer of the district,
Morrissey offered the following statement as to his role in a multi-
unit district,
Most existing systems do not pretend in their own retreats that the nominal head of a multi-unit college system actually makes the controlling decisions affecting the operations of the specific schools (Morrissey, 1967, p. 39).
Morrissey believes that the community college chief executive
officer is too far removed from his counterparts at the individual
campuses or institutions to actually make any controlling decisions.
Instead, Morrissey contended, the district or college president


must foster local autonomy so that the local campuses can provide the leadership needed at that particular location.
In summary, Morrissey presented a list of daily responsibilities for which the multi-unit college president should be held accountable,
1. Supervision of physical growth.
2. Long-range planning.
3. Relationship with the board of trustees.
4. Acquisition of financial resources.
5. Interpretation of board goals and policies.
6. Strengthen the recruiting process (Morrissey, 1967, p. 39).
Upton (1969) conducted a research study of the role expectations of faculty and trustee groups for the community junior college president. From the findings of his study, Upton (1969, pp. 184-187) presented the following conclusions that are pertinent to this review,
1. In specifying the behavior expected of the president, faculty members differed significantly with board members.
2. Differences between board and faculty groups in their expectations reflected consistent differences in position regarding certain types of behavior.
3. Greatest differences between board and faculty groups centered around how primary responsibility for decision-making should be divided within the college.
Osborne (1969) conducted a study of the community college presidency with the major purpose of determining the behavioral


47
characteristics deemed critical to the president's effectiveness. In the study, Osborne (1969, pp. 129-132) also sought to compare various groups of respondents in order to determine if they perceived these critical requirements in the same manner. The study was carried out using the critical incident technique and a questionnaire derived from the critical incidence results. Based on the results of the study, the following major conclusions were presented,
1. While the critical requirements of the junior college presidency are few in number, they touch primarily the area of human relations.
2. Because the critical requirements of the presidency are viewed essentially the same way by all groups in the college community, they represent a sound foundation for the development of highly efficient administrative procedure.
3. The overall behavior of the junior college president is effective, but his relationship to his faculty and administrative staff needs strengthening.
4. Although the development of an atmosphere of academic freedom is a critical requirement of the presidency it is not a profound issue on the junior college campus today.
5. The trustees are apparently more passive in their view of the presidency than any other group within the junior college community.


A monograph by Cohen and Roueche, published in 1969, examined educational leadership from the standpoint of the junior college presidency. Specifically, their investigation sought to determine whether the junior college president is assigned responsibility for educational leadership by his board of trustees, and whether the president actually addresses himself to such matters. In examining board policy manuals, presidential job descriptions, and presidential reports, the authors concluded that, "In general, the junior college president is neither assigned responsibility nor held accountable for educational leadership" (Cohen & Roueche, 1969, p. 18). The responsibilities found to be typically assigned to the president were; campus development, implementation of board policy, control of fiscal affairs, supervision of administrative and teaching staff, and campus law and order.
VanTrease (1972) conducted a study of authority relationships between chief district administrators and chief campus administrators in multi-campus junior college districts. The major purpose of the study was to determine whether there was a difference in the perceptions of authority relationships existing in their schools between the two groups of administrators used in the study. Using the semantic differential as the measuring device, VanTrease sent questionnaires to forty-three chief district administrators and one hundred sixteen chief campus administrators. Administrators were asked to indicate their perception of current district participation


in the following functions,
1. Textbook selection.
2. Recruitment of new staff members.
3. In-service training.
4. Physical facility planning.
5. Budget preparation.
6. Public information services.
7. Student personnel services.
8. Curriculum development.
9. Community service development,(VanTrease, 1972, pp. 167-172)
VanTrease found that of the nine functional areas used in his study, general accord in perception between the two groups of administrators was found only on central office participation in textbook selection and recruitment of new staff members. In view of the findings, VanTrease recommended that communications between the central office and the campuses be improved, and that policies and responsibilities be more clearly defined.
The review of the literature and research related to community college chief executive officers provided the author of this study with valuable insights into college executive functions and added greatly to the structural development of this study.


CHAPTER III
MIAMI-DADE: THE ROLE OF THE CHIEF EXECUTIVE OFFICER AT A MULTI-CAMPUS INSTITUTION
Mi ami-Dade Community College served as the multi-campus community college district sample in this study. This chapter is a discussion of the functions and role, legal and perceived, of the chief executive officer (President) of Mi ami-Dade Community College.
The first section describes the environmental setting of the college within the district. Section two is a description of the history and development of the college with emphasis on the present conditions that exist. In section three the basic legal structure of governance is outlined and the role of the chief executive officer (President) is discussed. Section four presents the findings of the questionnaire and structured interviews held at the college. The chapter is concluded with a brief summation and discussion of some general observations about the functions of the President of the Col lege.
Environmental Setting
Mi ami-Dade Community College is located in Metropolitan Dade County, an area of the southeastern coast of Florida that comprises approximately 2,015 square miles of land area (Institutional Self
50


51
Study, 1974, p. 1). The county contains twenty-six separate municipalities; the city of Miami being the largest with a population of over 350,000 people (The World Almanac, 1975, p. 628). All of the county's municipalities are part of a metropolitan form of government. The county experienced a 36 percent growth rate in population between 1960 and 1970, from 322,745 to 1,392,300 people (Institutional Self Study, 1974, p. 1). Overall, Dade ranks twenty-fourth in size among the nation's metropolitan areas (The World Almanac, 1975, p. 628). The following is a listing of some of the significant characteristics of the citizenry of Dade County (Institutional Self Study, 1974, pp. 1-2).
1. The age group over 65 years old represents 13.6 percent of the total population.
2. Dade County is twelfth nationally in the age group of 18 years old and under.
3. The County maintains the sixth largest public school system in the country.
4. The median educational attainment level of the residents 25 years and older is 12.1 years.
5. In 1972, 23.6 percent of the 1.3 million people in the County were Spanish-speaking, which represents the largest ethnic minority group in the country. The County was declared an official bilingual County in 1973.
6. Approximately 15 percent of the population are members of the Black race.


7. The median family annual income is $9,245.
8. Approximately 11 percent of the population are considered to be living below the defined poverty level.
The economy of the county is built primarily around trade and service industries geared to tourism and the provision of goods and services to an expanding population. The largest employer in the county is the Dade County public school system (Institutional Self Study, 1974, p. 2). It is generally acknowledged that further diversification is desirable in the county to aid in stabilizing the economy and to provide increased employment opportunities. History and Development of the College
Mi ami-Dade Community College began operation in temporary facilities on September 6, 1960, under the name of the Dade County Junior College (Institutional Self Study, 1974, p. 3). It was established as part of the Florida system of junior colleges and was jointly supported by state and local funds.
By the end of the second year of operation the college had doubled its original enrollment of 1,428 and was serving 3,544 students at the two initial centers (Institutional Self Study, 1974, p. 3). The growth was continued and rapid, so that by May 4, 1969, the college had awarded over ten thousand associate in arts degrees (Institutional Self Study, 1974, p. 4).
In the fall of 1962 the college moved to its first permanent campus, now designated the North Campus, with a first year


enrollment of 6,138 students (Institutional Self Study, 1974, p. 4). It was during the first year at the North Campus, in the Spring of 1963, that the name of the college was officially changed to Miami-Dade Junior College.
The South Campus began operations in temporary facilities in the fall of 1965 with an enrollment of 1,942 of the total college enrollment of 16,981 (Institutional Self Study, 1974, p. 5). In early 1967 the South Campus began operations at the current permanent site.
The rapid growth of the college is well illustrated by the following facts,
1. Mi ami-Dade Community College enrolls more full-time equivalent students than any other community college in the nation,
2. By the fall of 1967, Mi ami-Dade Junior College had the largest enrollment of any institution of higher education in Florida with a student population of 23,341.
3. The 100,000th student was registered on August 25, 1969.
4. By 1971 there were seven off-campus centers operating as extensions of the three major campuses (Institutional Self Study, 1974, pp. 1-7).
The Downtown Campus became the college's third campus when it opened in the fall of 1970 in temporary facilities. By the fall of 1973 when the permanent campus was opened, the Downtown Campus enrollment had climbed from 1,021 to 5,407 students (Institutional Self Study, 1974, p. 7).


54
The Medical Center Campus was originally operated as an off-campus site, but in the fall of 1974 it began operations in temporary facilities at the Mount Sinai Hospital complex. This campus primarily houses the Allied Health Studies programs with a total enrollment of approximately 2,000 students. Permanent facilities are expected to be completed by the fall of 1976.
With the continued expansion of educational services at multiple centers and campuses, Mi ami-Dade has moved steadily toward the realization of a truly community college. With this development in mind, on July 1, 1973, the District Board of Trustees formally changed the name of the college to Miami-Dade Community College (Institutional Self Study, 1974, p. 8).
The enrollment figures for Mi ami-Dade as of the fall term
of 1974 serve well to illustrate the envoivement of the college
in attempting to meet the educational needs of the district.
Total College Enrollment (1974-75)
"(Office of Informational Services, 1974-75)
Credit students = 31,663 Non-credit students = 10,659
Total 42,322
Campus Enrollment (1974-75)
(Office of Informational Services, 1974-75)
North Campus = 20,433
South Campus = 15,550
Downtown Campus = 6,339
Medical Center Campus unofficial estimate by college
officials of 2,000.


Legal Structure of Governance
At Miami-Dade Community College a multi-campus administrative system is set up where the central college administrator assumes the role of providing support of instruction and the provision of services such as admission, registration, budgeting, purchasing, personnel, institutional research, library acquisitions, instructional resources, facilities, planning, and the overall college planning and program coordination (Institutional Self Study, 1974, p. 6). The officer legally responsible for the operation of the college is the President, who is appointed by the Board of Trustees. His responsibilities are specified in both the Department of Education Regulations arid the college Manual of Policy. The position description of the college President provides a summary of the President's basic responsibilities (see Appendix C: Community College President).
The chief administrative officer for each campus is designated as a college vice-president and is appointed by the President (see Appendix D: College Organization Chart). Although the President is responsible by law for the administration of the total college, at Miami-Dade he delegates considerable authority to the campus vice-presidents for the day-to-day internal operation of each campus (Institutional Self Study, 1974, p. 6).
The first President of the college was Dr. Kenneth R. Williams, who served from 1960 to July 1, 1962. Upon this date, Dr. Peter Masiko, Jr. became the second President of Miami-Dade and currently serves in that capacity.


On July 1, 1968, upon action by the Florida Legislature, each college in the Florida system of junior and community colleges became a separate legal entity (Institutional Self Study, 1974, p. 6). From this date, Miami-Dade Community College, as well as all the other colleges in the state system, have been governed by a local District Board of Trustees (consisting of five members) appointed by the Governor of the State. The Board of Trustees is granted legal authority to operate the college within the broad framework of state regulations promulgated by the Florida Board of Education.
Findings of the Questionnaire and Structured Interviews
The two instruments used to gather data for this study provided the researcher with a great amount of information concerning the perceptions of the selected participants at Miami-Dade Community College (see Appendix B). All of the information was obtained during scheduled personal interviews with each of the participants. The first fifteen minutes were usually used for the participant to complete the questionnaire. If any questions were raised by the participant about the questionnaire they were answered immediately by the researcher. Upon completion of the questionnaire the structured interview guide was used to carry out'the remainder of the interview, which usually lasted another fifteen to thirty minutes. All participants were very cooperative and were very willing to discuss their perceptions with the researcher.


The findings of the questionnaire and the structured interview were calculated and arranged into table form and are presented in Tables 1-6. The data contained in each of the six tables are discussed in the following pages.
In Part I of the questionnaire the respondent was instructed to rank order a list of six administrative categories according to the importance they attributed to each of them as an executive function (see Table 1). They were then instructed to rank order the specific activities listed within each of the categories (see Table 2). Space was also designated for any activities the respondents wanted to add to the questionnaire.
Planning was seen as the most important administrative category by 34.2 percent of the participants, thereby ranking it number one among the six categories. The importance attributed to planning as an executive function was more clearly demonstrated by the fact that 59.9 percent of the participants ranked it as number one or two, and 85.6 percent ranked it within the top three categories. The category also received the highest mean (2.34) and median (1.77) rankings.
The administrative category of finance was ranked second with 40 percent of the participants selecting it as one of the top two categories. Although this category was ranked highly compared to the other four categories, its mean response of 2.88 and median ranking of 2.33 are significantly lower than the number one ranked category of planning. It is also important to recognize that 51.3


TABLE 1
RANKING OF ADMINISTRATIVE CATEGORIES AT MIAMI-DADE COMMUNITY COLLEGE
Administrative Category Rank Positions Mean Response Median Mode
1 2 3 4 5 6
f % f % f % f % f % f %
PI anning 12 34 2 9 25. 7 9 25.7 2 5.7 1 2.8 2 5.7 2.34 1.77 1
Finance 7 20 0 7 20. 0 8 22.8 10 28.5 2 5.7 1 2.8 2.88 2.33 4
Legitimization 1 2 8 10 28. 5 6 17.1 10 28.5 5 14.2 3 8.5 3.48 4.04 2, 4
External Relations 7 20 0 3 8. 5 3 8.5 5 14.2 5 14.2 12 34.2 3.97 3.80 6
Educational Leadership 7 20 0 2 5. 7 7 20.0 1 2.8 11 31.4 7 20.0 3.80 4.04 5
Evaluation 1 2 8 4 11 4 2 5.7 7 20.0 10 28.5 11 31 .4 4.85 4.35 6
Note.f = frequency.


V
TABLE 2
FUNCTIONS RANKED WITHIN CATEGORIES AT MIAMI-DADE COMMUNITY COLLEGE
Administrative Category Rank Positions 1 2 3 4 5 Mean Response Median Mode
f % f % f % f % f %
Planning Specific Functions: (a) (b) (c) (d) (e) 12 34.2 5 14.2 2 5.7 16 45.7 0 8 22.8 11 31.4 9 25.7 7 20.0 0 5 14.2 14 40.0 11 31.4 5 14.2 0 10 28.5 5 14.2 13 37.1 7 20.0 0 0 0 0 0 0 0 0 0 0 2.37 2.54 3.00 2.08 2.70 3.14 3.65 2.16 1 3 4 1
Finance Specific Functions: (a) (b) (c) (d) (e) 10 28.5 3 8.5 2 5.7 20 57.1 0 0 8 22.8 5 14.2 13 37.1 8 22.8 1 100.0 14 40.0 2 5.7 15 42.8 4 11.4 0 3 8.5 24 68.5 5 14.2 3 8.5 0 0 0 1 2.8 0 0 0 0 0 2.28 3.42 2.66 1.71 2 2.90 3.39 3.19 1 2 3 4 3 1 2

en


TABLE 2
- CONTINUED
Legitimization
Specific Functions:
(a) 6 16.6 13 36. 1 8 22.2 9 25.0 0 0 2.51 2.95 L
(b) 11 30.5 9 25. 0 11 30.5 5 13.8 0 0 2.28 2.80 1,3
(c) 7 19.4 6 16. 6 12 33.3 11 30.5 0 0 2.75 3.45
(d) 12 34.2 7 20. 0 5 14.2 10 28.5 1 2. 8 2.46 2.77 1
(e) 0 0 1 100. 0 2 2 2
External Relations
Specific Functions:
(a) 6 16.6 9 25 0 2 5.5 8 22.2 11 30. 5 3.25 4.13 5
(b) 13 36.1 10 27. 7 8 22.2 2 5.5 3 8. 3 2.22 2.50 1
(c) 10 27.7 6 16 6 10 27.7 9 25.0 1 2. 7 2.58 3.20 1,3
(d) 4 11.1 8 22. 2 7 20.0 14 38.8 3 8. 3 3.11 3.85 4
(e) 3 9.3 3 9. 3 10 31.2 3 9.3 13 40. 6 3.63 4.00 5
en o


TABLE 2 CONTINUED
Educational Leadership
Specific Functions:
(a) 16 45.7 5 14 2 5 14.2 9 25 7 0 2.22 2 30 1
(b) 9 25.7 13 37 1 10 28.5 3 8 5 0 2.22 2 66 2
(c) 9 25.7 11 31 4 12 34.2 3 8 5 0 2.26 2 76 3
(d) 1 2.8 5 14 2 7 20.0 21 60 0 1 2.8 3.46 4 22 4
(e) 0 0 1 100 0 0 0 0 2 2 2
Evaluation
Specific Functions:
(a) 6 17.6 9 26 4 7 20.5 6 17 6 6 17.6 2.91 3 15 2
(b) 4 11.7 8 23 5 11 32.3 9 26 4 2 5.8 2.91 3 48 3
(c) 4 11.7 2 5 8 4 11.7 8 23 4 16 47.0 3.88 4 89 5
(d) 8 23.5 11 32 3 9 26.4 3 8 8 3 8.8 2.47 2 82 0 L.
(e) 12 36.3 4 12 1 2 6.0 8 24 2 7 21.1 2.82 3 25 1
(f) 0 0 0 0 0
Note.--See Appendix B for Specific Functions.


percent of the participants ranked finance as either third or fourth, within the middle-range, in importance.
Legitimization of the institutions' policies and decisions was ranked third among the categories with 74.1 percent of the respondents placing it within the second, third, or fourth positions. Although this category received significantly less number one rankings than the fourth and fifth ranked categories, 2.8 compared to 20 percent, the number two ranking by 28.5 percent of the respondents was the highest in that position. The middle-range ranking is more clearly illustrated by its mean response of 3.48 and median ranking of 4.04. This category also produced the only bi-modal distribution with 28.5 percent of the respondents ranking it second and 28.5 percent ranking it fourth.
The fourth ranked category of educational leadership and the fifth ranked category of external relations were ranked very closely with mean responses of 3.80 and 3.97, respectively. This closeness is also illustrated by the fact that 45.7 of the participants ranked educational leadership within the top three in importance, as compared to 37 percent for the fourth ranked category of external relations. Most significant in the ranking of these two categories was the finding that 51.4 percent of the participants ranked educational leadership as either fifth or sixth in importance. The category of external relations fared somewhat better with a 48.4 percent ranking in these two positions. The most frequent ranking for the category


of educational leadership was fifth (31.4 percent), while the external relations category suffered the greatest percentage of sixth place rankings with 34.2 percent.
Evaluation was ranked last in importance among the six categories with 59.9 percent of the respondents placing it within the fifth or sixth position. Only 19.9 percent of the respondents ranked it within the top three categories, as the categories mean response of 4.85 would seem to reflect. Its lack of perceived importance is further illustrated by the fact that it has the lowest median ranking of the six categories with 4.35, and is second in having the greatest percentage of last place rankings with 31.4 percent.
The results of the rank ordering of the specific activities listed within each administrative category are presented in Table 2. The following discussion of these results is presented under the activities corresponding category heading. Planning
Activity "d" (setting operational priorities) and "a" (future or long-range planning) were ranked a close first and second with mean responses of 2.08 and 2.37, respectively. Activity "d" was ranked first by 45.7 percent of the respondents, compared to 34.2 percent for "a."
Activity "b" (program expansion) was ranked as either second or third in importance by 71.4 percent of the respondents and had a


mean response of 2.54. The median response for "b" was 3.14, which more accurately exemplifies the mode response of three.
Activity "c" (planning of physical facilities) was ranked the lowest of the four activities with 68.5 percent of the respondents placing it as either third or fourth. The median response for "c" was 3.65 which indicates its relative low ranking. Finance
Activity "d" (priority ranking of resource allocation levels) was by far the highest ranked activity in the category with 79.9 percent of the respondents placing it as number one or two in importance. The mean response of 1.71 is reflective of the 57.1 percent number one ranking.
The activity ranked second was "a" (budget preparation) with 51.3 percent of the respondents ranking it as either number one or two in importance. However, the largest single ranking of the activity was 40 percent in the third position. This large third place ranking contributed greatly toward bringing the mean response down to 2.28 and the median ranking to 2.90.
Activity "c" (district budget administration) was ranked third with 79.9 percent of the respondents placing it as either second or third in importance. The most frequent ranking was third (42.8 percent), although the mean response was a little higher at 2.66.
By far the lowest ranked activity was "b" (fund raising) with 68.5 percent of the respondents placing it an number four. The mean response (3.42 reflects the large fourth place ranking.


Legitimization
Activities "b" (constituent participation in governance) and "d" (improvement of institutional communication network) were ranked closely at first and second with mean responses of 2.28 and 2.46, respectively. Although activity "d" led in first place rankings, 34.2 to 30.5 percent, activity "b" maintained the overall edge in percentage of ranking in the top two places by 55.5 to 54.2 percent.
Activity "a" (openness in the decision-making process) ranked third among the four activities with 52.7 percent of the respondents giving it a ranking of first or second. However, the activity was ranked third or fourth by 47.2 percent of the participants, thereby raising the mean response to 2.51 and the median ranking to 2.95.
The last place ranking in this category was activity "c" (improving human relations and district morale) with 63.8 percent. Although the most frequent ranking was third (33.3 percent), the median ranking of 3.45 is reflective of the 30.5 percent last place ranking.
External Relations
Activity "b" (involvement with state agencies and leaders) was clearly ranked the highest with 63.8 percent of the respondents placing it in first or second in importance. The 2.22 mean response and 2.50 median ranking of activity "b" also place it far above the other four activities in its perceived importance to the respondents
Activity "c11 (involvement with community groups) was ranked second with 44.3 percent of the respondents placing it in either


66
first or second place. It is significant to note, however, that 44.3 percent also ranked it as either second or third in importance. This phenomena is due to the bi-modal distribution of the rankings. The mean response of 2.58 and median ranking of 3.20 make this activity a solid second in its importance as perceived by the respondents.
Activities "d" (involvement with federal agencies and leaders) and "a" (involvement with accrediting agencies) were ranked closely at third and fourth with mean responses of 3.11 and 3.25 percent, respectively. Although "a" led in combined first and second place rankings, 41.6 to 33.3 percent, "d" maintained a small edge in median ranking, 3.85 to 4.13. This result is due chiefly to the large (30.5 percent) fifth place ranking received by activity "a."
Activity "e" (involvement with professional associations) was by far the least important activity in this category in the perception of the respondents. Although the median response was 3.63, 40.6 percent of the respondents ranked the activity in last place. The median ranking (4.00) is the most accurate in the description of the ranking of this activity. Educational Leadership
Activities "a" (presenting policy recommendations to the board), "b" (initiation of educational policy), and "c" (providing motivational leadership to faculty and staff) are all close in the top three rankings with mean responses of 2.22, 2.22, and 2.26, respectively. Although activity "a" had the largest number of


first place rankings with 45.7 percent, activity "b" had a greater percentage of combined first and second place rankings with 62.8. The median rankings of these three categories is reflective of the closeness of their attributed importance. It is significant to note that activity "a" also had the second greatest percentage of last place rankings with 25.7.
Activity "d" (activities with students) was ranked last by 60 percent of the respondents with a median ranking of 4.22 percent. The 3.46 mean response also illustrates the negatively skewed distribution of this activity as perceived by the respondents. Evaluation
Activity "d" (assessment of problems) received the highest overall ranking in this category with 55.8 percent of the respondents placing it either first or second. Although "e" (making judgments concerning external forces) received a greater number of first place rankings with 36.3 percent, the combined first and second place ranking was only 48.4. The fourth and fifth place rankings of activity "e" were also high with a combined percentage of 45.4. The greater dispersion of rankings in activity "e" as compared to "d" are reflected in their mean responses of 2.47 (in "d") and 2.82 (in "e"), as well as their median rankings of 2.82 and 3.25, respectively.
Activities "a" (evaluative judgments regarding institutional progress) and "b" (judgments on institutional efficiency) were


ranked a very close first and second with identical mean responses of 2.91 and median rankings of 3.15 and 3.48, respectively. The close rankings of these activities is further illustrated by the combined first, second, and third rankings in which activity "b" holds a slight edge with 67.5 to 64.5 percent.
Activity "c" (judgments on personnel matters) was ranked last by 47 percent of the respondents with this increasing to 70.4 percent when combined with the fourth place ranking.
In Part II of the questionnaire the respondents were instructed to estimate the percent of time they believed the President spends dealing with matters within each of the six administrative categories (see Table 3). The participants were further instructed to estimate what percent of the President's time is spent dealing with each of the specific functions listed within each category (see Table 4). For clarification, the respondents were told that the total amount of time spent in all of the activities within any category was equal to 100 percent of the executive's time spent in that category. In order to make interpretation of the time estimates more comparable, they are recorded in Tables 3 and 4 within intervals of ten percent each.
The respondents' estimates of the amount of time spend by the President in matters relating to each of the six categories can clearly be understood by placing them in enlarged time intervals (see Figure 1).


1-30%
Category Percent
Finance 100
Legitimization 100
Planning 96.9
Evaluation 90.2
External Relations 87.7
Educational
Leadership 85.6
11-30%
Category Percent
Planning 76.4
Finance 71.8
Legitimization 60.5
External Relations 51.4
Educational
Leadership 42.8
Evaluation 25.5
1-20%
Category Percent
Evaluation 87.0
Legitimization 84.7
Finance 84.3
Educational
Leadership 79.9
Planning 79.3
External Relations 63.5
Figure 1. Percent of Responses Per Category within Enlarged Intervals.


TABLE 3
PERCENT OF CHIEF EXECUTIVE'S TIME SPENT IN EACH CATEGORY AT MIAMI-DADE COMMUNITY COLLEGE
Administrative Category
Percent of Time Intervals
0 1 -10 11 -20 21 -30 31 -40 41-50 51-60 61-70 71-80 81-90 91-100
f % f % f % f % f % f % f % f % f % f % f %
Planning 1 20.5 20 58.8 6 17.6 1 2.9
Finance 9 28.1 18 56.2 5 15.6
Legitimization 13 39.3 15 45.4 5 15.1
External Relations 12 36.3 9 27.2 8 24.2 2 6.0 1 3.0 1 3.0
Educational Leadership 15 42.8 13 37.1 2 5.7 3 8.5 2 5.7
Eva!uation 2 6.4 20 64.5 7 22.5 1 3.2 1 3.2


Figure 1 clearly shows that 85.6-100 percent of all responses in each of the six categories are within the 1-30 percent estimation interval. It also shows that a great majority (63.5-87 percent) of all responses were within the 1-20 percent interval. Only three majority estimates were achieved among all the intervals of all the categories. These were: planning, with 58.8 percent within the 11-20 percent interval; finance, with 56.2 percent within the 11-20 percent interval; and evaluation, with 64.5 percent within the 1-10 percent interval. Based on the enlarged interval of 21 percent and over, the following perceived category time rankings emerge from Table 3 (in descending order of estimated time),
1. External Relations 36.2%
2. Planning 20.5%
3. Educational Leadership 19.9%
4. Finance 15.6%
5. Legitimization 15.1%
6. Evaluation 6.4%
In order to clearly understand the findings presented in Table 4, each administrative category is discussed separately. In the discussion of each category each specific activity will be ranked according to the two or more consecutive intervals that must be grouped to obtain a majority of estimates for that particular activity.
Planning (See Table 4)
Activity "d" (setting operational priorities) was ranked highest with 55.8 percent of the estimates falling within the 21-40 percent


TABLE 4
PERCENT OF CHIEF EXECUTIVE'S TIME SPENT ON FUNCTIONS WITHIN CATEGORIES AT MIAMI-DADE COMMUNITY COLLEGE
Administrative Category Percent of Time Intervals
0 i-lO 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100
f % f % f % f % f % f % f % f % f % f % f %
Planning Functions : (a) (b) (c) (d) (e) 6 17.6 4 11.7 14 41.1 3 8.8 2 50.0 11 32.3 16 47.0 13 38.2 5 14.7 2 50.0 8 23.5 11 32.3 3 8.8 13 38.2 6 17.6 2 5.8 4 11.7 6 17.6 2 5.8 1 2.9 5 14.7 1 2.9 1 2.9 1 2.9
Finance Functions: (a) (b) (c) (d) (e) 3 8.5 9 25.7 16 45.7 5 14.2 2 5.7 4 57.1 5 14.2 10 28.5 13 37.1 7 20.0 2 28.5 13 37.1 3 8.5 12 34.2 9 25.7 5 14.2 2 5.7 3 8.5 9 25.7 1 14.2 2 5.7 1 2.8 2 5.7 6 17.1 1 2.8 2 5.7
si
INJ


Legitimization Functions: (a) (b) (c) (d) (e) 1 2.8 1 2.8 11 31.4 4 11.4 5 14.2 3 8.5 3 75.0 7 20.0 10 28.5 18 51.4 12 34.2 TABLE 12 34.2 10 28.5 10 28.5 11 31.4 4 CONTIT 3 8.5 5 14.2 2 5.7 5 14.2 HJED 1 2.8 4 11 .4 2 5.7 1 2.8 1 2.8 1 25.0 1 2.8
External Relations Functions: (a) (b) (c) (d) (e) (f) 2 5.7 1 2.8 22 62.8 4 11 .4 7 20.0 14 40.0 14 40.0 2 100.0 8 22.8 13 37.1 12 34.2 10 28.5 9 25.7 2 5.7 9 25.7 13 37.1 8 22.8 5 14.2 2 5.7 4 11 .4 2 5.7 1 2.8 4 11.4 1 2.8 2 5.7 2 5.7 2 5.7 1 2.8 1 2.8


TABLE 4 CONTINUED
Educational Leadership Functions : (a) (b) (c) (d) (e)
2.8 2.8
3 8.5 2 5 7 13 37.1 7 20.0
4 11.4 7 20 0 20 57.1 3 8.5
6 17.1 15 42 8 8 22.8 3 8.5
24 68.5 9 25 7 1 2.8
3 50.0 1 16 6 1 16.6
7 20.0 15 42 8 9 25.7 3 8.5
8 22.8 16 45 7 8 22.8 3 8.5
20 57.1 12 34 2 3 8.5
9 25.7 15 42 8 8 22.8 3 8.5
8 22.8 10 28 5 9 25.7 5 14.2
1 100.0
7 20.0 1 2.8 1 2.8
2 5.7 1 2.8
1 2.8
1 16.6
Eva!uation Functions : (a)
1 2.8
1 2.8
5.7
Note.--See Appendix B for Specific Functions.
\


75
interval. Activities "b" (program expansion) and "a" (future or long-range planning) both fell within the 11-30 percent interval and were ranked a close second and third with 79.3 and 55.8 percent, respectively. Activity "c" (planning of physical facilities) was ranked last with 79.3 percent of the estimates lying within the 1-20 percent interval. Finance (See Table 4)
Activities "d" (priority ranking of resource allocation ranking) and "a" (budget preparation) were ranked a very close first and second. Both activities had the majority of their responses fall within the 21-40 percent interval with "d" receiving 51.4 and "a" receiving 51.3 percent. However, activity "d" had 22.8 percent of its estimates fall within the 41-60 percent interval to only 8.5 percent for activity "a." Activity "c" (district budget administration) was third with 71.3 percent of its estimates within the 11-30 percent interval. Activity "b" (fund raising) was ranked last with 74.2 percent of its estimates falling within the 1-20 percent interval. Legitimization (See Table 4)
Activities "b" (constituent participation in governance) and "d" (improvement of institutional communication network) were ranked close at first and second, both having a majority (57 to 65.6 percent) of their estimates fall within the 11-30 percent interval. Activity "b" holds a slightly higher ranking than "d" in the 31-100 percent interval (28.4 to 25.5). Activities "a" (openness in the decision-


76
making process) and "c" (improving human relations and district morale) are also closely ranked with both having majorities (54.2 to 51.4) in the 11-30 percent interval. Activity "a" is ranked third, ahead of activity "c," due to its higher ranking (11.3 to 5.7) in the 31-50 percent interval. External Relations (See Table 4)
Activities "b" (involvement with state agencies and leaders) and "c" (involvement with community groups) are ranked very close in the number one and two positions, both having majorities in the 11-30 percent interval with 62.8 and 71.3 percent, respectively. Activity "b" has a slight advantage in the intervals over 31 percent with 26.5 percent, compared to 8.5 for activity "c." Activity "d" (involvement with federal agencies and leaders) is solidly in third place with 51.3 percent of its responses falling within the 11-30 percent interval. This activity also had a high ranking (40 percent) 1n the 1-10 percent interval. Activity "e" (involvement with professional associations) was fourth, followed closely by "a" (involvement with accrediting agencies). Both activities had large majorities in the 1-10 percent interval with "a" having 85.6 percent and activity "e" recording 65.7 percent. Educational Leadership (See Table 4)
Activity "a" (presenting policy recommendations to the board) was given the highest ranking by the respondents with 57.1 percent of the responses with the 21-40 percent interval. Also significant


is the fact that 28.5 of the respondents ranked :'a" within the 41-70 percent interval. Activity "b" (initiation of educational policy) was ranked second with 57.1 percent of the responses falling within the 21-30 percent interval and 11.3 percent within the 31-50 percent interval. Activity "c" (providing motivational leadership to faculty and staff) was in third place in the ranking with 65.6 percent of its responses within the 11-30 percent interval. The most frequently chosen interval for activity "c" was the 11-20 percent interval with a 42.8 percent response rate. Activity "d" (activities with students) was placed last in the category with 68.5 percent of the responses falling within the 1-10 percent interval. Evaluation (See Table 4)
Activities "a" (evaluative judgments regarding institutional progress) and "b" (judgments on institutional efficiency) ranked a close first and second, both receiving 68.5 percent of their responses in the 11-30 percent interval. However, activity "a" was ranked slightly higher with a 9.3 to 8.5 percent edge over "b" in the 31 percent and over intervals. Activities "e" (making judgments concerning external forces) and "d" (assessment of problems) were likewise ranked very closely with both majority responses falling within the 11-30 percent interval, although activity "d" led in percentage of responses with 65.6 to 54.2 for activity "e." However, activity "e" was given the third place ranking and "d" the fourth based on its higher percentage (19.9


to 18.5) of responses above the 31 percent interval. Activity "c" (judgments on personnel matters) produced a solid last place ranking with 57.1 percent of its response falling within the 1-10 percent interval.
In Part II of the "Structured Interview Guide" each participant was read a list of twenty-four items, each item representing one functional role that is frequently sited as applicable to community college chief executive officers (see Appendix A). In regard to their perceptions of the role of the President at Miami-Dade Community College, each participant was asked to respond to each item by indicating one or more of the following,
Personal involvement by the President
2. Directly delegated by the President
3. Not a direct responsibility of the President
4. Not applicable.
In order to present the findings of Table 5 as clearly as possibl each of the twenty-four items are discussed separately. The findings are presented in terms of whether they show the item as being perceived as a direct function of the President or one that is delegated.
Item 1: Determine the library needs within the district.
This function was clearly perceived as delegated, as evidenced by the 68.5 percent frequency of response for choice number 3. No participants perceived this item as a function of the President.
Item 2: Attend state and national educational organization meetings and conferences.
This item did not present a clear majority of responses for any


79
TABLE 5
DEGREE OF EXECUTIVE INVOLVEMENT IN SELECTED FUNCTIONS AT MIAMI-DADE COMMUNITY COLLEGE
Response Categories
1 1 and 2 2 2 and 3 3 All 3
Question
Number f % f % f % f % f % f %
1 0 0 9 25.7 2 5.7 24 68.5 0
2 13 37.1 10 28.5 10 28.5 0 2 5.7 0
3 21 60.0 8 22.8 5 14.2 0 0 1 2.8
4 5 14.2 8 22.8 21 60.0 1 2.8 0 0
5 0 0 6 17.1 3 8.5 26 74.2 0
6 1 2.8 1 2.8 26 74.2 1 2.8 5 14.2 1 2.8
7 4 11.4 3 8.5 14 40.0 3 8.5 11 31 .4 0
8 13 38.2 9 26.4 9 26.4 2 5.8 1 2.9 0
9 12 34.2 5 14.2 14 40.0 0 4 11.4 0
10 1 2.8 2 5.7 23 65.7 4 11.4 5 14.2 0
11 4 11.4 6 17.1 21 60.0 1 2.8 3 8.5 0
12 2 5.7 1 2.8 16 45.7 2 5.7 14 40.0 0
13 3 8.5 4 11.4 23 65.7 0 5 14.2 0
14 0 1 2.8 16 45.7 3 8.5 15 42.8 0
15 12 34.2 9 25.7 9 25.7 1 2.8 3 8.5 1 2.8
16 0 0 11 31.4 1 2.8 23 65.7 0
17 18 51.4 10 28.5 4 11.4 0 2 5.7 1 2.8
18 0 1 2.8 16 45.7 2 5.7 16 47.5 0
19 0 1 2.8 18 51.4 3 8.5 13 37.1 0
20 18 51.4 11 31.4 3 8.5 0 2 5.7 1 2.8
21 7 20.0 3 8.5 16 45.7 1 2.8 8 22.8 0
22 8 22.8 1 2.8 18 51.4 4 11.4 4 11.4 0
23 2 5.8 1 2.9 21 61.7 1 2.9 9 26.4 0
24 6 17.6 1 2.9 21 61.7 1 2.9 5 14.7 0
Note.-- See Appendix A for Questions.


of the three choices. Instead, 37.1 percent of the respondents perceived this item as a function of the President while 28.5 percent believed it was a delegated responsibility. However, 28.5 percent also believed that it was both the President's responsibility yet it was also delegated by him.
Item 3: Have individual meetings with persons in the community who are considered influential in helping the district secure its objectives. A clear majority, 60 percent, of the respondents perceived this item as a direct Presidential function, while 22.8 percent recognized it as both a direct and a delegated function of the President.
Item 4: Determine what educational services the district should render to the community.
A majority of 60 percent perceived this item as delegated. However, 14.2 percent did claim the function was directly Presidential. An even larger percent (22.8) perceived the item as both direct and delegated.
Item 5: Provide materials and equipment for the instructional programs of the district.
None of the respondents perceived this as a direct Presidential function. The great majority (74.2 percent) of the responses to this item indicated that it was not associated with direct Presidential functions.


Item 6: Prepare accreditation materials.
This item was clearly perceived as a delegated function with 74.2 percent of the respondents choosing the number two response. The second greatest frequency of choice was number 3 with only 14.2 percent.
Item 7: Provide opportunities for staff members to
participate in various community activities. This item was perceived as a direct Presidential function by only 11.4 percent of the respondents. The majority of the responses were within the combined choices of directly delegated (40 percent) and number 3 (31.4 percent).
Item 8: Explain the board policy to college and district staff.
Although no absolute majority was achieved in any of the choice categories, the direct responsibility choice was the highest with 38.2 percent. Another 26.4 percent believed the item was both a direct and delegated function. The percent of respondents tending to view the item as a Presidential function is off-set somewhat by the aggregate percent (35.1) of those not seeing it as a function.
Item 9_ : De fend faculty members to the board when appropriate or necessary.
The responses to this item were rather dispersed with 34.2 percent of the respondents ranking it as a direct function, 40 percent as a delegated function, and 14.2 percent as both.


Item 10: Develop and supervise a program which fosters and ensures a desirable climate for working relations within the district. This was clearly ranked as a delegated function with 65.7 percent of the responses. Only 8.5 percent of the respondents viewed this as any direct concern to the president.
Item 11: Develop a program of coordination with four-year colleges.
A majority (60 percent) of the responses placed this as a directly delegated function with 28.4 percent of the respondents perceiving it as a direct or shared Presidential function.
Item 12: Provide supervision of instruction within the district.
Item 13: Make cost analysis of curricula.
Item 14: Develop purchasing plans for the district.
These three items were all ranked similarly with a great majority of the respondents perceiving the function as not of direct concern to the President. The combined delegated/not responsible choices are 91.4, 79.9, and 97 percent, respectively.
Item 15: Give speeches to local civic organizations.
The responses to this item were skewed toward the direct President function choice, although only 34.2 percent of the respondents ranked the function as directly Presidential. The responses indicating the function as a delegated one totaled 25.7 percent, and another 25.7 percent for combined direct and delegated.


83
Item 16: Compile requests for supplies and equipment for budgetary consideration.
This function was not perceived as a direct Presidential responsibility by any of the participants. Although almost a third (31.4 percent) of them ranked the function as delegated, the majority of 65.7 percent placed it far removed from the President's functions.
Item 17: Formulate community college policy for the district.
This function produced one of three distributions within which the function was designated as Presidential by a majority (51.4 percent) of the participants. This perception is strengthened by the 28.5 percent that designated the function as both direct and delegated.
Item 18: Design a program of counseling and guidance for the district.
Item 19: Develop publicity materials for the district.
These items were similar in that neither produced any responses in the category of direct Presidential responsibility. Instead, both functions were ranked as either directly delegated (45.7 and 51.4 percent, respectively) or of little concern to the President.
Item 20: Determine what community pressures affect the educational program of the district.
This was clearly perceived to be a Presidential function with 51.4 percent choosing it as a direct function and another 31.4 percent as both direct and delegated.


84
Item 21 : Encourage col 1ege/district staff to participate
in community councils and projects. Only 28.5 percent of the participants view the President as being involved with this function. In contrast, 45.7 percent see the function as delegated, and 22.8 percent perceive it as far removed from his basic responsibilities.
Item 22: Develop a program for faculty participation in
college and district decision-making. Item 23: Develop a system of internal accounting for the district.
Item 24: Administer debt service programs.
The majority of the respondents in all three of these items ranked this function as directly delegated, with 51.4, 61.7, and 61.7 percent, respectively. However, in Item 22 there were 25.6 percent of the participants that saw the President as either directly involved in the function or both direct and delegated involvement.
In Part III of the "Structured Interview Guide" each participant was asked seven discussion type questions concerning their perceptions of the roles and functions of the President at Miami-Dade Community College. The participants were encouraged to speak openly about their perceptions and to ask for clarification or explanation if necessary. The researcher received complete cooperation from all of the participants.


The results of the seven discussion questions are presented in Table 6. Under each question the responses are arranged according to their frequency, with the five most frequent answers being tabulated by percent of frequency. The following discussion of the results of Table 6 are presented question by question.
Question 1. In a brief phrase, how would you best describe the overall role of the President of this district? This question did not produce a majority response for any single answer, although 88.3 percent of the responses could be grouped into one of three answers (see Table 6). The greatest frequency answers were,
1. Chief executive/Administrator: facilitate the efficient and effective operation of the college by managing its activities (44.2 percent).
2. Politician: a manipulator to gain needed support and resources for the college (23 percent).
3. Educational leader: provides motivation and institutional direction by being aware of needs and problem solutions (21.1 percent).
One important response area pertained to the President's functioning with the Board of Trustees. Although fourth in frequency, only 7.6 percent of the respondents perceived this relationship as descriptive of the Presidents' overall role.
Question 2. What, in your opinion, is the most important function the President now performs? This question failed to achieve a majority response on any of the answers, although 59.9


TABLE 6
STRUCTURED INTERVIEW: FIVE MOST FREQUENT RESPONSES AT MIAMI-DADE COMMUNITY COLLEGE
Questions
In a brief phrase, how would you best describe the overall role of the President of this district?
4. 5.
Response
Five Most Frequent Responses
Frequency
Chief Executive/Administrator: facilitate the efficient and effective operation of the college by managing its activities.
Politician: a manipulator to gain needed support and resources for the college.
Educational Leader: provides motivation and institutional direction by being aware of needs and problem solutions.
Liason between the college and the board of trustees.
Chief public relations man to the community.
23
12
11
Percent of Universs 44.2
23.0
21 .1
7.6 3.8


TABLE 6 CONTINUED
2. What, in your opinion, is the most important function the President now performs? 1. Chief Executive/Administrator: oversee operation of the institution and implement board policy. 13 37. 1
2. Educational Leader of the institution: provide direction and set the climate for the governance of the college. 8 22. 8
3. Liason/communication link between the board and college and the community at large. 6 17. 1
4. Politician: Gather support and resources for the college. 5 14. 2
5. Planning: setting priorities for achieving present and future institutional goals, as well as the acquisition of resources to carry out college objectives. 3 8. 5
3. In your opinion, upon what basis does the President exercise his various functions and responsibilities? 1. 2. Board of Trustees. State Goverment: State regulations, statutes and legislature. 28 21 57. 42. 1 9


TABLE 6 CONTINUED
4. In your opinion, are the functions 1. and responsibilities of the President specifically and clearly enumerated, or are they broad and general in 2. nature?
Broad and general with a high degree 19 of executive discretion.
Specifically stated, but in terms of 16 broad areas of responsibility.
54.2
45.8
5. Are there some elements cr components of the community college experience in this district (i.e. Board, President, Administration, faculty, community, etc.) that you believe contribute more than other components toward the successful accomplishments of the district? If yes, then could you rank them?
Totals of Top 5
1. President
2. Faculty
3. Board of Trustees
4. General Administration
5. Community
1st Most Important
President 8
Faculty 6
Community Leaders 5
Board 2
General Administration 1
2nd Most Important
Board of Trustees 7
President 5
General Administration 5
Faculty 4
21 23.3
18 20.0
15 16.6
14 15.5
7 7.7


TABLE 6 CONTINUED
3rd Most Important
President 6
General Administration 6
Faculty 3
Board 3
Community 1
4th Most Important
Faculty 5
Board 3
General Administration 2
President 2
Community 1
All and components are interdependent inseparable. 15 16 6
6. In your opinion, is the 1. Both: centralized decision making 11 61 1
governance structure of the on college policy, and decentralized
district centralized or administration for implementation of
decentralized? Please policy.
clarify your definition
and use of the terms 2. Decentralized: allows individual 5 27 7
centralized and dcen- campus flexibility.
trai ized.
3. Centralized: control of policy and 2 11 1
implementation rests in the
President's office.


Full Text
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 EVY3AIODN_CLCL40 INGEST_TIME 2011-09-09T22:49:57Z PACKAGE AA00003931_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
FILES



PAGE 1

$1 ,19(67,*$7,21 2) 7+( 52/(6 2) &20081,7< &2//(*( &+,() (;(&87,9( 2)),&(56 $ &203$5,621 2) 6(/(&7(' 08/7,&$0386 $1' 08/7,,167,787,21 38%/,& &20081,7< &2//(*( ',675,&76 %\ 5,&+$5' %8&.1(5 -5 $ ',66(57$7,21 35(6(17(' 72 7+( *5$'8$7( &281&,/ 2) 7+( 81,9(56,7< 2) )/25,'$ ,1 3$57,$/ )8/),//0(17 2) 7+( 5(48,5(0(176 )25 7+( '(*5(( 2) '2&725 2) 3+,/2623+< 81,9(56,7< 2) )/25,'$

PAGE 2

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

PAGE 3

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

PAGE 4

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n 79

PAGE 5

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

PAGE 6

$33(1',; & &20081,7< &2//(*( 35(6,'(17 &2//(*( 25*$1,=$7,21 &+$57 ( &+$57 $ 7+( ',675,&7 2)),&( ) &+$1&(//25 %,%/,2*5$3+< %,2*5$3+,&$/ 6.(7&+ YL

PAGE 7

/,67 2) 7$%/(6 7$%/( 3DJH 5$1.,1* 2) $'0,1,675$7,9( &$7(*25,(6 $7 0,$0,'$'( &20081,7< &2//(*( )81&7,216 5$1.(' :,7+,1 &$7(*25,(6 $7 0,$0,'$'( &20081,7< &2//(*( 3(5&(17 2) &+,() (;(&87,9(n6 7,0( 63(17 ,1 ($&+ &$7(*25< $7 0,$0,'$'( &20081,7< &2//(*( 3(5&(17 2) &+,() (;(&87,9(n6 7,0( 63(17 21 )81&7,216 :,7+,1 &$7(*25,(6 $7 0,$0,'$'( &20081,7< &2//(*( '(*5(( 2) (;(&87,9( ,192/9(0(17 ,1 6(/(&7(' )81&7,216 $7 0,$0,'$'( &20081,7< &2//(*( 6758&785(' ,17(59,(: ),9( 0267 )5(48(17 5(63216(6 $7 0,$0,'$'( &20081,7< &2//(*( 5$1.,1* 2) $'0,1,675$7,9( &$7(*25,(6 $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 )81&7,216 5$1.(' :,7+,1 &$7(*25,(6 $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 3(5&(17 2) &+$1&(//25n6 7,0( 63(17 ,1 ($&+ &$7(*25< $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 3(5&(17 2) &+,() (;(&87,9(n6 7,0( 63(17 21 )81&7,216 :,7+,1 &$7(*25,(6 $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 '(*5(( 2) (;(&87,9( ,192/9(0(17 ,1 6(/(&7(' )81&7,216 $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 6758&785(' ,17(59,(: ),9( 0267 )5(48(17 5(63216(6 $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 YL L

PAGE 8

/,67 2) ),*85(6 ),*85(6 3DJH 3HUFHQW RI 5HVSRQVHV 3HU &DWHJRU\ ZLWKLQ (QODUJHG ,QWHUYDOV 7RWDO )UHTXHQFLHV RI WKH 7RS )LYH &RPSRQHQWV 3HUFHQW RI 5HVSRQVHV 3HU &DWHJRU\ ZLWKLQ (QODUJHG ,QWHUYDOV 7RWDO )UHTXHQFLHV RI WKH 7RS )LYH &RPSRQHQWV 5DQN 2UGHU RI $GPLQLVWUDWLYH &DWHJRULHV E\ 0HGLDQ 5DQN RI 3DUWLFLSDQW 3HUFHSWLRQV 5DQN 2UGHU RI $GPLQLVWUDWLYH &DWHJRULHV E\ 0HGLDQ 5DQN RI 3DUWLFLSDQW 3HUFHSWLRQV $ &RPSDUDWLYH 5DQN 2UGHULQJ RI $GPLQLVWUDWLYH &DWHJRULHV E\ 0HGLDQ 5DQN Y L L L

PAGE 9

$EVWUDFW RI 'LVVHUWDWLRQ 3UHVHQWHG WR WKH *UDGXDWH &RXQFLO RI WKH 8QLYHUVLW\ RI )ORULGD LQ 3DUWLDO )XOILOOPHQW RI WKH 5HTXLUHPHQWV IRU WKH 'HJUHH RI 'RFWRU RI 3KLORVRSK\ $1 ,19(67,*$7,21 2) 7+( 52/(6 2) &20081,7< &2//(*( &+,() (;(&87,9( 2)),&(56 $ &203$5,621 2) 6(/(&7(' 08/7,&$0386 $1' 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

PAGE 10

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

PAGE 11

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n SHUFHSWLRQV UHJDUGLQJ VSHFLILF H[HFXWLYH UROHV WHQGV WR GHFUHDVH DV WKH SDUWLFLSDQWVn FRQWDFW DQG IDPLOLDULW\ ZLWK WKH FKLHI H[HFXWLYH SRVLWLRQ GHFUHDVHV [L

PAGE 12

&+$37(5 ,1752'8&7,21 7KH $PHULFDQ WZR\HDU FROOHJH LV RQH RI WKH IDVWHVW JURZLQJ DQG PRVW G\QDPLF VHJPHQWV RI DOO $PHULFDQ HGXFDWLRQ 7KH JURZWK RI WZR\HDU FROOHJHV HVSHFLDOO\ SXEOLF FRPPXQLW\ DQG MXQLRU FROOHJHV KDV EHHQ SKHQRPHQDO VLQFH WKH WXUQ RI WKH FHQWXU\ ,Q WKHUH ZHUH SXEOLF FRPPXQLW\ FROOHJHV LQ $PHULFD ZLWK D WRWDO HQUROOPHQW RI PLOOLRQ VWXGHQWV 7KH &RPPXQLW\ -XQLRU DQG 7HFKQLFDO &ROOHJH 'LUHFWRU\ $PHULFDQ $VVRFLDWLRQ RI &RPPXQLW\ -XQLRU &ROOHJHVf UHSRUWHG WKDW WKHUH DUH QRZ SXEOLF WZR\HDU LQVWLWXWLRQV HQUROOLQJ RYHU PLOOLRQ VWXGHQWV 7KH &DUQHJLH &RPPLVVLRQ RQ +LJKHU (GXFDWLRQ HVWLPDWHG WKDW E\ WR PLOOLRQ VWXGHQWV ZLOO EH HQUROOHG LQ SXEOLF FRPPXQLW\ FROOHJHV 0HGVNHU t 7LOOHU\ S f 6RPH PRUH UHFHQW GDWD LQGLFDWHG WKDW WKH FRPPXQLW\ FROOHJHV LQ WKH 8QLWHG 6WDWHV VKRXOG EH VHUYLQJ D PLQLPXP RI PLOOLRQ VWXGHQWV E\ LI WKH\ DWWDLQ WKH OHYHO RI VHUYLFH RI VRPH H[HPSODU\ FROOHJHV :DWWHQEDUJHU t &DJH S f $FFRUGLQJ WR WKH GDWD JDWKHUHG E\ :DWWHQEDUJHU DQG &DJH S f WKH WRWDO QXPEHU RI VWXGHQWV VHUYHG FRXOG UHDFK DV KLJK DV PLOOLRQ SHRSOH E\ 7KH UDSLG JURZWK RI SXEOLF FRPPXQLW\ FROOHJHV PD\ EH GXH LQ JUHDW SDUW WR WKHLU XVXDO FRQYHQLHQFH RI ORFDWLRQ SURJUDP

PAGE 13

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f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

PAGE 14

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f LQ KLV GRFWRUDO GLVVHUWDWLRQ PDGH D VWXG\ RI WKH IRUPDO GHFLVLRQPDNLQJ SURFHGXUH IRU VWXGHQW SHUVRQQHO VHUYLFHV LQ WKH PXOWLFDPSXV FRPPXQLW\ FROOHJH +ROFRPEH f GLG D GRFWRUDO VWXG\ RQ WKH IRUPDO GHFLVLRQPDNLQJ IRU FXUULFXOXP DQG LQVWUXFWLRQ LQ PXOWLFDPSXV FRPPXQLW\ FROOHJHV %LHOHQ f LQ KLV GRFWRUDO GLVVHUWDWLRQ UHSRUWHG WKH ILQGLQJV RI KLV VWXG\ RI EXGJHW DGPLQLVWUDWLRQ LQ PXOWLFDPSXV FRPPXQLW\ FROOHJHV

PAGE 15

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n WUDWLYH RIILFHUV LQ VHOHFWHG PXOWLFDPSXV DQG PXOWLLQVWLWXWLRQ FRPPXQLW\ FROOHJH GLVWULFWV 6HFRQGO\ WR FRPSDUH WKH UROHV RI FKLHI H[HFXWLYH RIILFHUV LQ PXOWLFDPSXV GLVWULFWV ZLWK WKH UROHV RI FKLHI H[HFXWLYH RIILFHUV LQ PXOWLLQVWLWXWLRQ GLVWULFWV $QVZHUV WR WKH IROORZLQJ TXHVWLRQV ZHUH VRXJKW :KDW LV WKH DVVLJQHG DQG SHUFHLYHG UROH RI WKH GLVWULFW FKLHI H[HFXWLYH RIILFHU LQ WKH VHOHFWHG PXOWLFDPSXV GLVWULFW DV FRPSDUHG WR WKH DVVLJQHG DQG SHUFHLYHG UROH RI WKH GLVWULFW FKLHI H[HFXWLYH RIILFHU LQ WKH VHOHFWHG PXOWLLQVWLWXWLRQ GLVWULFW" :KDW LV WKH IXQFWLRQDO UHODWLRQVKLS RI WKH FKLHI H[HFXWLYH RIILFHU RI LQGLYLGXDO FDPSXVHV RI D PXOWLFDPSXV GLVWULFW WR WKH FKLHI H[HFXWLYH RIILFHU RI WKH FROOHJH" :KDW LV WKH IXQFWLRQDO UHODWLRQVKLS RI WKH FKLHI H[HFXWLYH RIILFHU RI LQGLYLGXDO FROOHJHV RI D PXOWLLQVWLWXWLRQ GLVWULFW WR WKH FKLHI H[HFXWLYH RIILFHU RI WKH GLVWULFW"

PAGE 16

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

PAGE 17

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n LQVWLWXWLRQ FRPPXQLW\ FROOHJH GLVWULFWV DUH VSHFXODWLYH 7KH OLVW RI H[HFXWLYH IXQFWLRQV DQG WKH LQWHUYLHZ JXLGH XVHG LQ WKLV VWXG\ ZHUH RI QR WHVWHG YDOLGLW\ 2QO\ WKH DFNQRZOHGJHG SHUFHSWLRQV RI WKRVH LQWHUYLHZHG ZHUH UHFRUGHG WKH JHQHUDO VRFLDO PLOLHX RI SRVVLEOH H[WHUQDO HQYLURQn PHQWDO LQIOXHQFHV ZDV QRW VWXGLHG

PAGE 18

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f 2QH IUHTXHQW VSHFLILF UHVSRQVH WR LQFUHDVLQJ GHPDQG IRU HGXFDWLRQDO VHUYLFHV KDV EHHQ WKH IRUPDWLRQ RI ODUJH PXOWFDPSXV DQG PXOWLLQVWLWXWLRQ FRPPXQLW\ FROOHJH GLVWULFWV 7KH JURZWK LQ WKH QXPEHU RI ODUJH FRPPXQLW\ FROOHJH GLVWULFWV KDV EHHQ H[SHFLDOnO\ VLJQLILFDQW RYHU WKH SDVW WZR \HDUV )URP WR WKH QXPEHU RI FRPPXQLW\ FROOHJHV HQUROOLQJ RYHU VWXGHQWV JUHZ IURP WR DQG WKRVH ZLWK RYHU JUHZ IURP WR $$&-& 'LUHFWRU\ S f 7KURXJKRXW WKH 8QLWHG 6WDWHV SDUWLFXODUO\ LQ ODUJH XUEDQ DUHDV FRPPXQLW\ FROOHJHV KDYH

PAGE 19

JURZQ LQWR ODUJH PXOWLLQVWLWXWLRQ RU PXWLFDPSXV GLVWULFWV ,Q WKHUH ZHUH RQO\ WHQ PXOWLXQLW FRPPXQLW\ FROOHJH GLVWULFWV LQ WKH 8QLWHG 6WDWHV LQ WKLUW\RQH ZHUH RSHUDWLQJ DQG E\ WKHUH ZHUH IRUW\ .LQW]HU HW DO Sf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f 7KH QHHG IRU UHVHDUFK FRQFHUQLQJ PXOWLXQLW FRPPXQLW\ FROOHJH GLVWULFWV LV IXUWKHU HYLGHQFHG E\ WKH IROORZLQJ VWDWHPHQW E\ .LQW]HU ,I WKH MXQLRU FROOHJH PRYHPHQW LV WR UHWDLQ LQ WKH \HDUV DKHDG WKH YLJRU IRU ZKLFK LW KDV EHHQ QRWHG LQ WKH SDVW LPSRUWDQW GHFLVLRQV ZLOO KDYH WR EH PDGH DERXW WKH IXWXUH RUJDQL]DWLRQ DQG DGPLQLVWUDWLRQ RI WZR RU PRUH FDPSXVHV S f 7KH WUHQG WRZDUG XUEDQL]DWLRQ VHHPV WR EH TXLWH VWURQJ DQG WKH WUHQG RI FRPPXQLW\ FROOHJHV H[SDQGLQJnSK\VLFDO IDFLOLWLHV WKURXJKn RXW WKH XUEDQ DUHD DOVR VHHPV WR EH ILUPO\ HVWDEOLVKHG 7KLV VWXG\ DGGV WR WKH HPSLULFDO UHVHDUFK FRQFHUQLQJ WKH XUEDQ FRPPXQLW\ FROOHJH GLVWULFW VSHFLILFDOO\ WKH UROH RI WKH FKLHI H[HFXWLYH RIILFHU LQ WKH PXOWLFDPSXV DV FRPSDUHG WR WKH PXOWLLQVWLWXWLRQ GLVWULFW JRYHUQDQFH VWUXFWXUHV

PAGE 20

7KLV VWXG\ LV WKH IRXUWK LQ D SODQQHG VHULHV RI UHVHDUFK SURMHFWV DW WKH 8QLYHUVLW\ RI )ORULGD FRQFHUQLQJ WKH DGPLQLVWUDWLRQ RI PXOWLXQLW FRPPXQLW\ FROOHJH GLVWULFWV ,W ZDV SUHFHGHG E\ 0F&OXVNH\nV f VWXG\ RI VWXGHQW SHUVRQQHO VHUYLFHV +ROFRPEHnV f VWXG\ RI FXUULFXOXP DQG LQVWUXFWLRQ DQG %LHOHQnV f UHVHDUFK RQ EXGJHW DGPLQLVWUDWLRQ 7KHUH LV D QHHG IRU IXUWKHU HPSLULFDO UHVHDUFK GHDOLQJ ZLWK XUEDQ FRPPXQLW\ FROOHJH GLVWULFWV DQG WKHLU SDWWHUQV RI JRYHUQDQFH VR WKDW D GDWD EDVH FDQ EH HVWDEOLVKHG WR DVVLVW FRPPXQLW\ FROOHJH RIILFLDOV LQ WKH HIIHFWLYH DGPLQLVWUDWLRQ RI PXOWLXQLW FRPPXQLW\ FROOHJH V\VWHPV 'HILQLWLRQ RI 7HUPV &RPPXQLW\ FROOHJH $ SXEOLF SRVWVHFRQGDU\ HGXFDWLRQDO LQVWLWXWLRQ SURYLGLQJ D GHILQDEOH FRPPXQLW\ RU JHRJUDSKLF DUHD ZLWK SURJUDPV DQG FRXUVHV RI LQVWUXFWLRQ LQ DUHDV VXFK DV WZR \HDU FUHGLW SURJUDPV IRU WUDQVIHU QRQFUHGLW FRPPXQLW\ VHUYLFH RU FRQWLQXLQJ HGXFDWLRQ DQG RFFXSDWLRQDO HGXFDWLRQ 0XOWLFDPSXV GLVWULFW $ SXEOLF FRPPXQLW\ FROOHJH RUJDQLn ]DWLRQDO SDWWHUQ ZKLFK FRQVLVWV RI RQH OHJDO LQVWLWXWLRQ RSHUDWLQJ PRUH WKDQ RQH EUDQFK RU FDPSXV LQ D OHJDOO\ VSHFLILHG DQG GHILQHG GLVWULFW RU MXULVGLFWLRQ 0XOWLLQVWLWXWLRQ GLVWULFW $ SXEOLF FRPPXQLW\ FROOHJH RUJDQL]DWLRQDO SDWWHUQ WKDW FRQVLVWV RI PRUH WKDQ RQH VHSDUDWHO\ GHVLJQDWHG DQG FUHDWHG LQVWLWXWLRQ LQ RQH JHRJUDSKLFDOO\ GHILQDEOH DUHD RU FRPPXQLW\ FROOHJH GLVWULFW 7KH WHUPV PXOWLFROOHJH DQG PXOWLLQVWLWXWLRQ DUH XVHG V\QRQ\PRXVO\ LQ WKLV VWXG\

PAGE 21

0XOWLXQLW FRPPXQLW\ FROOHJH GLVWULFW $ WHUP XVHG EURDGO\ WR GHVFULEH D GLVWULFW RSHUDWLQJ WZR RU PRUH FRPPXQLW\ FROOHJH VLWHV ,W LV XVHG WR HQFRPSDVV ERWK PXOWLFDPSXV DQG PXOWLn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

PAGE 22

(DFK VHOHFWHG GLVWULFW KDG D PLQLPXP VWXGHQW HQUROOPHQW RI KHDG FRXQWf :LOOLQJQHVV RI GLVWULFW RIILFHUV DQG LQVWLWXWLRQDO RIILFHUV WR SDUWLFLSDWH LQ WKH VWXG\ :LWKLQ HDFK GLVWULFW VHOHFWHG WKH IROORZLQJ RIILFLDOV RU SRVLWLRQV ZHUH VHOHFWHG DV SDUWLFLSDQWV 7KH FKLHI H[HFXWLYH RIILFHU IRU WKH GLVWULFW FKDQFHOORU SUHVLGHQWf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n SHUFHLYHG IXQFWLRQV RI WKH GLVWULFW FKDQFHOORU RU SUHVLGHQW 7KLV TXHVWLRQQDLUH FRQn VLVWHG RI WZR PDLQ SDUWV

PAGE 23

3DUW 5HTXHVWHG WKH SDUWLFLSDQWV WR UDQN RUGHU VL[ FDWHJRULHV RI DGPLQLVWUDWLYH DFWLYLWLHV DQG WR DOVR UDQN RUGHU WKH OLVW RI ILYH WR VL[ VSHFLILF DFWLYLWLHV OLVWHG ZLWKLQ HDFK FDWHJRU\ 3DUW ,, 5HTXHVWHG WKH SDUWLFLSDQWV WR HVWLPDWH WKH SHUFHQW RI WLPH WKH\ EHOLHYHG WKH FKDQFHOORU RU SUHVLGHQW VSHQW ZLWK HDFK RI WKH VL[ GHVLJQDWHG JHQHUDO DGPLQLVWUDWLYH FDWHJRULHV 7KH\ ZHUH DOVR DVNHG WR HVWLPDWH WKH SHUFHQW RI WLPH WKH\ EHOLHYHG WKH GLVWULFW FKLHI H[HFXWLYH VSHQG RQ HDFK RI WKH VSHFLILF H[HFXWLYH DFWLYLWLHV OLVWHG ZLWKLQ HDFK DGPLQLVWUDWLYH FDWHJRU\ 7KH VHFRQG LQVWUXPHQW FRQVWUXFWHG IRU XVH LQ WKLV VWXG\ ZDV D VWUXFWXUHG LQWHUYLHZ JXLGH 7KH LQWHUYLHZ JXLGH FRQVLVWHG RI WZR SDUWV 3DUW (DFK SDUWLFLSDQW ZDV DVNHG WZHQW\IRXU TXHVWLRQV FRQFHUQLQJ WKH GHJUHH RI GLUHFW H[HFXWLYH LQYROYHPHQW LQ YDULRXV H[HFXWLYH DFWLYLWLHV 7KH\ ZHUH DVNHG WR UHVSRQG WR HDFK VWDWHPHQW RU TXHVWLRQ E\ XVLQJ RQH RU PRUH RI WKH IROORZLQJ WKUHH UHVSRQVH FDWHJRULHV 7KH DFWLYLW\ LV SHUVRQDOO\ SHUIRUPHG E\ WKH GLVWULFW FKDQFHOORU RU SUHVLGHQW 7KH DFWLYLW\ LV SHUVRQDOO\ GHOHJDWHG E\ WKH FKDQFHOORU RU SUHVLGHQW RI WKH GLVWULFW 7KH DFWLYLW\ LV QRW D GLUHFW UHVSRQVLELOLW\ RI WKH GLVWULFW FKDQFHOORU RU SUHVLGHQW 3DUW ,, (DFK SDUWLFLSDQW ZDV DVNHG WR UHVSRQG WR VL[ RSHQ HQGHG W\SH TXHVWLRQV DLPHG DW DOORZLQJ WKH UHVSRQGHQWV WR GLVFXVV

PAGE 24

WKH SHUFHSWLRQV WKH\ KHOG FRQFHUQLQJ WKH UROHV DQG IXQFWLRQV RI WKH GLVWULFW FKLHI H[HFXWLYH RIILFHU 7KH UHYLHZ RI UHVHDUFK DQG OLWHUDWXUH SURYLGHG PXFK YDOXDEOH LQSXW WR WKH GHYHORSPHQW RI WKH LQVWUXPHQWV XVHG LQ WKLV VWXG\ 7KH VWXGLHV FRQGXFWHG E\ 0LOOHWW f /D9LUH f DQG 9DQ7UHDVH f FRQWULEXWHG VXEVWDQWLDOO\ WR WKH FRQFHSWXDOL]DWLRQ DV ZHOO DV WKH VSHFLILF FRQWHQW RI WKHVH LQVWUXPHQWV 0LOOHWWnV f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nV WHFKQLTXHV RI GLUHFWLRQ DUH VLPLODU WR SULQFLSOHV RI DGPLQLVWUDWLRQ SXW IRUWK E\ )D\RO f DQG *XOLFN f 0LOOHWW GHILQHG KLV WHQ WHFKQLTXHV RI GLUHFWLRQ DV IROORZV 3,DQQLQJIRUPXODWLRQ RI JHQHUDO SXUSRVHV SROLF\ SODQQLQJf DQG WKH GHYHORSPHQW RI SURJUDPV WR DFFRPSOLVK WKH SXUSRVH SURJUDP SODQQLQJf 2UJDQL]LQJWKH DOORFDWLRQ RI UROHV DQG WKH GLIIHUHQWLDWLRQ RI DFWLYLW\ DPRQJ LQGLYLGXDOV DQG JURXSV RI SHUVRQV LQ DFFRUGDQFH ZLWK SXUSRVHV DQG SURJUDP RXWSXWV

PAGE 25

3URJUDPPLQJWKH GHWHUPLQDWLRQ RI DFWLYLW\ XQLWV QHHGHG WR DFKLHYH GHVLUHG SXUSRVHV WKH FDOn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n HVWHG LQ WKH SROLFLHV SURJUDPV DQG SHUIRUPDQFH RI WKH HQWHUSULVH (YDOXDWLQJWKH GHWHUPLQDWLRQ RI WKH HIIHFWLYHQHVV DQG WKH HIILFLHQF\ RI WKH HQWHUSULVH0LOOHWW SS f 7KH VWXG\ E\ /D9LUH f DOVR SURYLGHG YDOXDEOH LQSXW WR WKH GHYHORSPHQW RI WKH TXHVWLRQQDLUH XVHG LQ WKLV VWXG\ /D9LUH LGHQWLILHG WKH IROORZLQJ HLJKW DGPLQLVWUDWLYH WDVN DUHDV IRU

PAGE 26

MXQLRU FROOHJH DGPLQLVWUDWRUV WKDW KLV VWXG\ IRXQG WR EH RI FULWLFDO LPSRUWDQFH ,QVWUXFWLRQ DQG FXUULFXOXP GHYHORSPHQW 6WXGHQW SHUVRQQHO &RPPXQLW\-XQLRU FROOHJH OHDGHUVKLS 6WDII SHUVRQQHO 3K\VLFDO SODQW -XQLRU FROOHJH RUJDQL]DWLRQ DQG VWUXFWXUH -XQLRU FROOHJH ILQDQFH DQG EXVLQHVV PDQDJHPHQW +XPDQ UHODWLRQV/D9LUH S f 7KH ILQGLQJV RI WKH /D9LUH VWXG\ FRQWULEXWHG JUHDWO\ WR WKH IRUPDWLRQ RI WKH VL[ FDWHJRULHV RI DGPLQLVWUDWLYH IXQFWLRQV XVHG LQ WKLV VWXG\ 7KH 9DQ7UHDVH f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

PAGE 27

,, 5HVSRQVLELOLWLHV RI WKH 'LVWULFW $GPLQLVWUDWLYH GDWD SURFHVVLQJ 3XUFKDVLQJ $FFRXQWLQJ :DUHKRXVLQJ DQG VXSSOLHV 9DQ7UHDVH S f )URP 9DQ7UHDVHnV f GDWD RQ DGPLQLVWUDWLYH SHUFHSWLRQV RI GHFLVLRQ PDNLQJ UHVSRQVLELOLW\ VHYHUDO VSHFLILF IXQFWLRQDO DUHDV ZHUH LGHQWLILHG WKDW ZHUH XVHIXO LQ FRQVWUXFWLQJ WKH UDQNLQJ LQVWUXPHQW XVHG LQ WKLV VWXG\ *UDKDPnV f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

PAGE 28

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n YLHZ JXLGH

PAGE 29

7KH VWDWLVWLFDO PHDQ PHGLDQ DQG PRGH ZHUH FDOFXODWHG IRU HDFK RI WKH LWHPV LQ 3DUW RI WKH TXHVWLRQQDLUH LH WKRVH LWHPV GHDOLQJ ZLWK WKH UDQNLQJ RI DGPLQLVWUDWLYH FDWHJRULHV DQG WKH VSHFLILF DFWLYLWLHV ZLWKLQ WKRVH FDWHJRULHVf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n PHQWDO VHWWLQJ KLVWRU\ DQG GHYHORSPHQW DQG OHJDO JRYHUQDQFH VWUXFWXUH $QDO\VLV DQG GLVFXVVLRQ RI WKH H[HFXWLYH UROHV DQG IXQFWLRQV LGHQWLILHG WKURXJK WKH XVH RI RIILFLDO GRFXPHQWV TXHVWLRQQDLUH UHVSRQVHV LQWHUYLHZV DQG JHQHUDO REVHUYDWLRQV IROORZ $ EULHI VXPPDU\ LV SURYLGHG DW WKH HQG RI HDFK RI WKHVH FKDSWHUV

PAGE 30

&KDSWHU 9 SURYLGHV D FRPSDUDWLYH DQDO\VLV RI WKH SHUFHLYHG DQG OHJDO UROHV DQG IXQFWLRQV RI WKH FKLHI H[HFXWLYH RIILFHUV RI WKH WZR GLVWULFWV VWXGLHG 7KH VLPLODULWLHV DQG GLIIHUHQFHV DUH GLVn FXVVHG DQG D FRPSRVLW H[HFXWLYH UROH LV GHYHORSHG 7KH ILQDO FKDSWHU SURYLGHV D JHQHUDO VXPPDU\ RI WKH VWXG\ D VXPPDU\ RI WKH UHVXOWV RI WKH VWXG\ DQG VRPH FRQFOXVLRQV DQG LPSOLFDWLRQV EDVHG RQ WKH UHVXOWV RI WKH VWXG\ 5HFRPPHQGDWLRQV IRU IXUWKHU UHODWHG UHVHDUFK DUH RIIHUHG LQ FRQFOXGLQJ WKH FKDSWHU

PAGE 31

&+$37(5 ,, 5(9,(: 2) 5(/$7(' /,7(5$785( 7KH UHYLHZ RI UHODWHG OLWHUDWXUH IRU WKLV VWXG\ LV SUHVHQWHG LQ WKUHH VHFWLRQV 7KH ILUVW VHFWLRQ LV D UHYLHZ RI SHUWLQHQW WKHRULHV RI RUJDQL]DWLRQ DQG DGPLQLVWUDWLRQ 7KH VHFRQG VHFWLRQ LV D UHYLHZ RI WKH UHVHDUFK VWXGLHV DQG SHUWLQHQW OLWHUDWXUH RQ PXOWLXQLW FRPPXQLW\ FROOHJH GLVWULFWV 7KH WKLUG VHFWLRQ FRQn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

PAGE 32

RQO\ EH GHULYHG IURP WKH FXPXODWLRQ RI LQGLUHFW HYLGHQFH 7KH\ PXVW ODUJHO\ EH LQIHUUHG IURP JHQHUDO UHVXOWV LQ ZKLFK WKH\ DUH PHUHO\ RQH IDFWRU DQG IURP V\PSWRPDWLF LQGLFDWLRQV RI URXQGDERXW FKDUDFWHU %DUQDUG SS f :KHUHDV PDQ\ DGPLQLVWUDWLYH WKHRULVWV VRXJKW WR GHVFULEH H[HFXWLYH IXQFWLRQV DQG WKH SULQFLSOHV JRYHUQLQJ WKH DGPLQLVn WUDWLYH SURFHVV %DUQDUG FRQFOXGHG WKDW H[HFXWLYH IXQFWLRQV FDQ RQO\ EH XQGHUVWRRG RU DQDO\]HG DV SDUW RI WKH WRWDOLW\ RI DQ RUJDQL]DWLRQ RU V\VWHP +H VWDWHG WKDW H[HFXWLYH IXQFWLRQVf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f ,Q FODULI\LQJ KLV YLHZ RI H[HFXWLYH IXQFWLRQV %DUQDUG QRWHG WKDW WKH IXQFWLRQ RI H[HFXWLYHV LV WR VHUYH DV FKDQQHOV RI FRPPXQLFDWLRQ VR IDU DV FRPPXQLn FDWLRQV PXVW SDVV WKURXJK FHQWUDO SRVLWLRQV %XW VLQFH WKH REMHFW RI WKH FRPPXQLFDWLRQ V\VWHP LV FRRUGLQDWLRQ RI DOO DVSHFWV RI RUJDQL]DWLRQ LW IROORZV WKDW WKH IXQFWLRQV RI H[HFXWLYHV UHODWH WR DOO WKH ZRUN HVVHQWLDO WR WKH YLWDOLW\ DQG HQGXUDQFH RI DQ RUJDQL]DWLRQ VR IDU DW OHDVW DV LW PXVW EH DFFRPSOLVKHG WKURXJK IRUPDO FRRUGLQDWLRQ %DUQDUG S f

PAGE 33

0RUH VSHFLILFDOO\ %DUQDUG LGHQWLILHG WKH EDVLF HVVHQWLDO H[HFXWLYH IXQFWLRQV DV 3URYLGLQJ WKH RUJDQL]DWLRQ ZLWK D V\VWHP RI FRPPXQLFDWLRQ ZLWK FHQWHUV RI FRPPXQLFDWLRQ 3URPRWLQJ DQG VHFXULQJ RI WKH HVVHQWLDO HIIRUWV QHFHVVDU\ WR HIIHFWLYH DQG HIILFLHQW RUJDQL]DWLRQDO RSHUDWLRQ )RUPXODWLQJ DQG GHILQLQJ RUJDQL]DWLRQDO SXUSRVHV %DUQDUG S f ,Q +HUEHUW $ 6LPRQ SXEOLVKHG $GPLQLVWUDWLYH %HKDYLRU ZKLFK QRW RQO\ H[SDQGHG RQ WKH ZRUN RI %DUQDUG EXW DOVR HODERUDWHG WKH QHHG IRU PRUH VWXG\ RI WKH GHFLVLRQPDNLQJ SURFHVV LQ RUJDQLn ]DWLRQV 6LPRQ S f QRWHG WKDW $ JHQHUDO WKHRU\ RI DGPLQLVWUDWLRQ PXVW LQFOXGH SULQFLSOHV RI RUJDQL]DWLRQ WKDW ZLOO LQVXUH FRUUHFW GHFLVLRQPDNLQJ MXVW DV LW PXVW LQFOXGH SULQFLSOHV WKDW ZLOO LQVXUH HIIHFWLYH DFWLRQ 6LPRQn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nV WDVN LV PRUH f WKDQ WKLV DGDSWLRQ DQG JURZWKfLW LV WR SURYLGH IRU JHQXLQH LQQRYDWLYH FKDQJH LQ WKH RUJDQL]DWLRQnV SURJUDPV LQ 0DUOLFN DQG 9DQ 1HVV S f

PAGE 34

*HW]HOV DQG *XED f GHYHORSHG D PRGHO IRU H[SODLQLQJ VRFLDO EHKDYLRU WKDW KDV EHHQ WKH VWLPXOXV IRU PXFK ZULWLQJ DQG DQDO\VLV E\ DGPLQLVWUDWLYH WKHRULVWV 7KH PRGHO LV EXLOW XSRQ WKH DVVXPSWLRQ WKDW WKH SURFHVV RI DGPLQLVWUDWLRQ GHDOV EDVLFDOO\ ZLWK VRFLDO EHKDYLRU LQ D KLHUDUFKLFDO VHWWLQJ 0RUSKHW -RKQV t 5HOOHU S f *HW]HOV VWDWHV ZH PD\ FRQFHLYH RI DGPLQLVWUDWLRQ VWUXFWXUDOO\ DV WKH KLHUDUFK\ RI VXERUGLQDWHVXSHURUGLQDWH UHODWLRQn VKLSV ZLWKLQ D VRFLDO V\VWHP )XQFWLRQDOO\ WKLV KLHUDUFK\ RI UHODWLRQVKLSV LV WKH ORFXV IRU DOORFDWLQJ DQG LQWHJUDWLQJ UROHV DQG IDFLOLWLHV LQ RUGHU WR DFKLHYH WKH JRDOV RI WKH VRFLDO V\VWHP *HW]HOV S f *HW]HOV f FRQFHLYHG RI RUJDQL]DWLRQV DV KDYLQJ WYR LQGHn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f 7KH PRGHO DQG WKHRU\ GHYHORSHG E\ *HW]HOV DQG *XED KDV KHOSHG WR IRFXV WKH DWWHQWLRQ RI H[HFXWLYHV WRZDUG WKH QHFHVVLW\ IRU GHDOLQJ ZLWK QRW RQO\ WKH RUJDQL]DWLRQ DQG LWV HQYLURQPHQW EXW WKH LQWHUQDO LQGLYLGXDO RU SHUVRQDO GLPHQVLRQ RI WKH RUJDQL]DWLRQ HQYLURQPHQW DV ZHOO (W]LRQL IRUPXODWHG D WKHRU\ RI RUJDQL]DWLRQ EDVHG RQ WKH DVVXPSWLRQ WKDW WKH H[HUFLVH RI SRZHU LQYROYHG LQGLYLGXDO FRPSOLDQFH

PAGE 35

DQG WKDW DOO RUJDQL]DWLRQV FRXOG EH FODVVLILHG DFFRUGLQJ WR WKHLU FRPSOLDQFH VWUXFWXUHV +H GHILQHG FRPSOLDQFH DV D UHODWLRQ LQ ZKLFK DQ DFWRU EHKDYHV LQ DFFRUGDQFH ZLWK D GLUHFWLYH VXSSRUWHG E\ DQRWKHU DFWRUnV SRZHU DQG WKH RULHQWDWLRQ RI WKH VXERUGLQDWHG DFWRU WR WKH SRZHU DSSOLHG (W]LRQL S f (W]LRQL DVVXPHG WKDW SRZHU LV H[HUFLVHG LQ RUJDQL]DWLRQV WR VHFXUH LQGLYLGXDO UHZDUGV DQG GHSULYDWLRQV DQG GLIIHUHQW W\SHV RI SRZHU PD\ EH QHFHVVDU\ GHSHQGLQJ XSRQ D SHUVRQnV SHUFHSWLRQ RI WKH OHJLWLPDF\ RI WKH H[HUFLVH RI SRZHU E\ KLV VXSHURUGLQDWH DQG WKH QHHG GLVSRVLWLRQ RI KLV VXERUGLQDWH 0RUSKHW 5HOOHU t -RKQV S f +H LGHQWLILHG WKUHH VRXUFHV RI RUJDQL]DWLRQDO FRQWURO DYDLODEOH WR WKH DGPLQLVWUDWRU FRHUFLRQ HFRQRPLF DVVHWV DQG QRUPDWLYH YDOXHV (W]LRQL S f 7KH W\SH SRZHU H[HUFLVHG E\ DQ H[HFXWLYH DFFRUGLQJ WR WKLV WKHRU\ WKHQ EHFRPHV LPSRUWDQW WR WKH RUJDQL]DWLRQ LQVRIDU DV LW EHFRPHV D IDFWRU LQ GHWHUPLQLQJ WKH LQGLYLGXDOV GHJUHH RI SRVLWLYH RU QHJDWLYH LQYROYHPHQW LQ WKH RUJDQL]DWLRQ 3UHVWKXV f GHYHORSHG D WKHRU\ RI RUJDQL]DWLRQ EDVHG RQ WKH LQGLYLGXDOnV UHDFWLRQ RU DFFRPPRGDWLRQ WR WKH RUJDQL]DWLRQ ZLWKLQ ZKLFK KH RSHUDWHV 3UHVWKXV f WKHRUL]HG WKDW WKH SV\FKRORJLFDO DQG VRFLRORJLFDO FRQVHTXHQFHV RI WKH RUJDQL]DWLRQDO VWUXFWXUH RQ WKH LQGLYLGXDO DUH YHU\ VXEVWDQWLDO +H IXUWKHU WKHRUL]HG WKDW RUJDQL]DWLRQV WHQG WR SXUVXH RQO\ WKH RUJDQL]DWLRQDO RU PDQLIHVW JRDOV DQG WR QHJOHFW WKH LQGLYLGXDO RU ODWHQW JRDOV 3UHVWKXV S f 7KH UHVXOW DFFRUGLQJ WR 3UHVWKXV LV LQGLYLGXDO EHKDYLRU DGDSWDWLRQ RU DFFRPPRGDWLRQ WR WKH RUJDQL]DWLRQDO

PAGE 36

PLOLHX 6RPH RI WKHVH DGDSWDWLRQV PD\ EH G\VIXQFWLRQDO WR WKH DFFRPSOLVKPHQW RI WKH RUJDQL]DWLRQDO JRDOV 3UHVWKXVn FRQFHUQ IRU WKH PRWLYDWLRQV DQG JRDOV RI WKH LQGLYLGXDO ZLWKLQ WKH RUJDQL]DWLRQ LV VLPLODU WR WKH *HW]HOV DQG *XED PRGHO ZLWK WZR GLPHQVLRQV RI RUJDQL]DWLRQDO DFWLYLW\ $UJ\ULV GHYHORSHG f D WKHRU\ RI RUJDQL]DWLRQ WKDW LV VLPLODU WR WKH 3UHVWKXV DQG *HW]HOV DQG *XED PRGHOV LQ WKDW KH WRR VWUHVVHG WKH KXPDQ IDFWRU $FFRUGLQJ WR $UJ\ULV f FRQIOLFWV DULVH EHWZHHQ WKH KHDOWK\ KXPDQ SHUVRQDOLW\ ZLWK LWV JRDO RI VHOIIXOILOOPHQW DQG LQGHSHQGHQFH DQG WKH RUJDQL]DWLRQDO EXUHDXFUDWLF VWUXFWXUH ZLWK LWV IRUPDO UXOHV DQG VXERUGLQDWLRQ RI WKH LQGLYLGXDO $UJ\ULV FRQFOXGHG WKDW D UHGXFWLRQ LQ WKH GHJUHH RI GHSHQGHQFH DQG VXERUGLQDWLRQ RI WKH LQGLYLGXDO WR ULJLG RUJDQLn ]DWLRQDO VWUXFWXUHV ZRXOG KDYH D SRVLWLYH HIIHFW RQ WKH RUJDQL]DWLRQV WRWDO HIIHFWLYHQHVV +DFN S f 7KH FKLHI H[HFXWLYH RIILFHU RI DQ RUJDQL]DWLRQ LV JHQHUDOO\ H[SHFWHG WR H[HUW VRPH W\SH RI OHDGHUVKLS ZLWKLQ WKDW RUJDQL]DWLRQ 7KH OHDGHUVKLS VW\OH XWLOL]HG DQG LWV UHODWLYH HIIHFWLYHQHVV DUH WKH UHVXOW RI WKH LQWHUSOD\ RI PDQ\ YDULDEOHV 7KRPSVRQ f UHODWHG WKH FRPSOH[LW\ RI WKH OHDGHUVKLS FRQFHSW WKHRUL]LQJ WKDW DOWKRXJK DQ H[HFXWLYH PD\ EH SODFHG DW WKH WRS RI D EXUHDXFUDWLF RUJDQL]DWLRQ FKDUW KH PD\ QRW EH WKH WUXH OHDGHU RI WKH RUJDQL]DWLRQ +H FRQWHQGHG WKDW KHDGVKLS DQG OHDGHUVKLS DUH LQFRPSDWLEOH DQG WKDW WKH\ DUH UDUHO\ KHOG E\ WKH VDPH SHUVRQ DW WKH VDPH WLPH 7KRPSVRQ S f LOOXVWUDWHG WKH OHDGHUVKLS GLOHPPD QRWLQJ WKH JURZLQJ

PAGE 37

JDS KH SHUFHLYHG EHWZHHQ GHFLVLRQ PDNHUV DQG VSHFLDOLVWV ZLWKLQ RUJDQL]DWLRQV +H IXUWKHU FRQWHQGHG WKDW WKLV VLWXDWLRQ SURGXFHV WHQVLRQV DQG VWUDLQV WKH ZLOOLQJQHVV WR FRRSHUDWH 7KRPSVRQ S f 7KRPSVRQ LVVXHG D ZDUQLQJ WR H[HFXWLYHV DJDLQVW EHFRPLQJ EXUHDXSDWKLF UHODWLQJ WKDW 7KH JURZLQJ LPEDODQFH EHWZHHQ WKH ULJKW WR GHFLGH DQG WKH SRZHU WR GRf JHQHUDWHV WHQVLRQV DQG LQn VHFXULWLHV LQ WKH V\VWHP RI DXWKRULW\ $WWHPSWV WR UHGXFH VXFK LQVHFXULW\ RIWHQ WDNH WKH IRUP RI EHKDYLRU SDWWHUQV ZKLFK DUH G\VIXQFWLRQDO EXUHDXSDWKLFf IURP WKH SRLQW RI YLHZ RI WKH RUJDQLn ]DWLRQ DOWKRXJK IXQFWLRQDO HQRXJK IURP WKDW RI WKH LQVHFXUH RIILFLDO 7KRPSVRQ SS f 5HVHDUFK VWXGLHV FRQFHUQLQJ RUJDQL]DWLRQDO DQG FRPPXQLW\ SRZHU VWUXFWXUHV KDYH \LHOGHG PXFK GDWD WKDW LV RI JUHDW YDOXH WR H[HFXWLYH RIILFHUV LQ ODUJH RUJDQL]DWLRQV 3HUKDSV WKH PRVW UHOHYDQW UHDOLn ]DWLRQ DULVLQJ IURP VXFK VWXGLHV KDV EHHQ ILQGLQJV VXSSRUWLQJ WKH WKHRU\ WKDW ZLWKLQ DQ\ VRFLDO V\VWHP WKHUH H[LVWV ERWK IRUPDO DQG LQIRUPDO FHQWHUV RI SRZHU +XQWHU f ,W KDV IXUWKHU EHHQ IRXQG WKDW WKH SRZHU VWUXFWXUHV RI VRFLDO V\VWHPV GLIIHU IURP RQH DQRWKHU DQG WKDW WKH\ DUH D FULWLFDO HOHPHQW LQ WKH RSHUDWLRQ DQG HIIHFWLYHn QHVV RI D JLYHQ RUJDQL]DWLRQ 1XQQHU\ t .LPEURXJKV S f .LPEURXJK f KDV UHVHDUFKHG WKH LQIOXHQFH RI WKH LQIRUPDO SRZHU VWUXFWXUH RQ GHFLVLRQPDNLQJ DW PRVW DOO OHYHOV RI HGXFDWLRQDO RUJDQL]DWLRQ 7KH JHQHUDO FRQFOXVLRQ UHDFKHG E\ .LPEURXJK DQG 1XQQHU\ S f WKDW LQIOXHQFH LV XQHTXDOO\ GLVWULEXWHG ZLWKLQ

PAGE 38

VRFLDO RUJDQL]DWLRQV RU VHWWLQJV KDV PDMRU LPSOLFDWLRQV IRU WKH FKLHI H[HFXWLYH WKDW LV FKDUJHG ZLWK WKH UHVSRQVLELOLW\ RI DGPLQLVWHULQJ DQ RUJDQL]DWLRQ 5HYLHZ RI 5HVHDUFK 6WXGLHV DQG 3HUWLQHQW /LWHUDWXUH RQ 0XOWL8QLW &RPPXQLW\ &ROOHJH 'LVWULFWV 7KH UHVHDUFK VWXGLHV DQG OLWHUDWXUH SUHVHQWHG LQ WKLV VHFWLRQ DUH DUUDQJHG FKURQRORJLFDOO\ $ VWXG\ E\ (ULFNVRQ f VXPPDUL]HV WKH H[SHULHQFH RI WKH &KLFDJR &LW\ -XQLRU &ROOHJH DV D FDVH KLVWRU\ LQ WKH GHYHORSPHQW DQG RSHUDWLRQ RI D ELJFLW\ PXOWLFDPSXV SXEOLF MXQLRU FROOHJH ,Q KLV GLVFXVVLRQ (ULFNVRQ H[DPLQHG WKH IDFWRUV KH EHOLHYHV KDYH SURPRWHG WKH WUHQG WRZDUG XUEDQ DQG PXOWLFDPSXV FRPPXQLW\ MXQLRU FROOHJHV 6HYHUDO IDFWRUV OLH EHKLQG WKH UHFHQW GHYHORSPHQW RI MXQLRU FROOHJHV LQ ELJ FLWLHV DQG WKH DOPRVW VLPXOn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

PAGE 39

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f 1RWLQJ WKDW WKHVH GHPDQGV KDYH JLYHQ LPSHWXV QRW RQO\ WR WKH JHQHUDO JURZWK RI XUEDQ MXQLRU FROOHJHV (ULFNVRQ VWDWHG WKDW WKH\ KDYH DOVR OHG WR WKH SDUWLFXODU GHYHORSPHQW RI PXOWLFDPSXV FROOHJHV 7KH PXOWLFDPSXV SXEOLF MXQLRU FROOHJH ZLWK DQ HIIHFWLYH RSHQGRRU DGPLVVLRQ SROLF\ LV XQLTXHO\ DEOH WR SURYLGH HGXFDWLRQDO VHUYLFHV WKDW DUH SK\VLFDOO\ DFFHVVLEOH WR DOO WKH FLW\nV UHVLGHQWV DQG WKDW PHHW WKH YDULHG QHHGV RI WKH PDQ\ HOHPHQWV RI WKH FRPSOH[ ELJFLW\ FRPPXQLW\ (ULFNVRQ S f $OWKRXJK RSWLPLVWLF UHJDUGLQJ WKH WUHPHQGRXV SRWHQWLDO RI D PXOWLFDPSXV FRPPXQLW\ FROOHJH IRU SURYLGLQJ HIIHFWLYHO\ DFFHVVLEOH HGXFDWLRQDO RSSRUWXQLWLHV WR DOO VHJPHQWV RI DQ XUEDQ DUHD (ULFNVRQ f FOHDUO\ SLQSRLQWV FHUWDLQ SUREOHPV LQKHUHQW LQ VXFK RSHUDWLRQV 7KH SUREOHPV RI DGPLQLVWUDWLYH RUJDQL]DWLRQ IDFXOW\ RUJDQL]DWLRQ DQG WKH GHYHORSPHQW RI YDULHG HGXFDWLRQDO SURJUDPV DUH DOO FLWHG DV FULWLFDO %XW WKH RYHUULGLQJ FKDOOHQJH IDFLQJ PXOWLFDPSXV RUJDQLn ]DWLRQV LV H[SUHVVHG E\ (ULFNVRQ LQ UHJDUG WR DGPLQLVWUDWLYH VWUXFWXUH 7KH JRDO RI WKH DGPLQLVWUDWLYH RUJDQL]DWLRQLV WR IRVWHU WKH

PAGE 40

FUHDWLYLW\ DQG IOH[LELOLW\ RI HDFK FDPSXV HVWDEOLVKLQJ XQLW\ LQ WKH PXOWLFDPSXV FROOHJH ZLWKRXW ULJLG FRQIRUPLW\ (ULFNVRQ S f -HQVHQ f FRQGXFWHG D VWXG\ WR H[DPLQH WKH UROH RI ERWK WKH FHQWUDO RIILFH DQG LQGLYLGXDO FDPSXVHV RI PXOWLFDPSXV FRPPXQLW\ FROOHJH GLVWULFWV 7KH VWXG\ LQYROYHG D VXUYH\ RI WHQ XUEDQ PXOWLFDPSXV FRPPXQLW\ FROOHJH GLVWULFWV LQ VL[ GLIIHUHQW VWDWHV DQG VRXJKW VSHFLILFDOO\ WR LGHQWLI\ WKH UHDVRQV IRU PXOWLn FDPSXV GLVWULFWV WKH W\SH RI RUJDQL]DWLRQ XVHG LQ VXFK GLVWULFWV DQG WKH PDMRU DGPLQLVWUDWLYH SROLFLHV DQG SUDFWLFHV IROORZHG LQ VL[ VHOHFWHG DUHDV RI DGPLQLVWUDWLRQ -HQVHQ S f 7KH SULQFLSO UHDVRQV -HQVHQ LGHQWLILHG IRU WKH HPHUJHQFH DQG JURZWK RI PXOWL FDPSXV FRPPXQLW\ FROOHJH RUJDQL]DWLRQ ZHUH 7R FRPSHQVDWH IRU GLVWULFW JHRJUDSKLFDO VL]H ZKLFK SURKLELWHG RQH FDPSXV IURP VHUYLFLQJ WKH GLVWULFW DGHTXDWHO\ 7R HTXDOL]H HGXFDWLRQDO RSSRUWXQLWLHV WKURXJK HIIHFWLYH DFFHVVLELOLW\ RI WKH FROOHJH WR WKH UHVLGHQWV RI WKH GLVWULFW 7R PHHW WKH GLIIHULQJ HGXFDWLRQDO QHHGV RI WKH YDULRXV FRPPXQLWLHV ZLWKLQ WKH GLVWULFW 7R DFFRPPRGDWH DSSOLFDQWV DIWHU WKH GLVWULFWnV RQO\ FDPSXV KDG UHDFKHG LWV PD[LPXP FDSDFLW\ 7R NHHS HDFK FDPSXV WR D UHDVRQDEOH DQG IXQFWLRQDO VL]H-HQVHQ S f $V D VRXUFH IRU GDWD FROOHFWLRQ LQ KLV FDVH VWXGLHV -HQVHQ f XWLOL]HG LQWHUYLHZV ZLWK GLVWULFW DQG FDPSXV VWDII PHPEHUV PHPEHUV RI FROOHJH ERDUGV RI WUXVWHHV DQG ORFDO FLWL]HQV IURP HDFK GLVWULFW +H DOVR VXUYH\HG RIILFLDO GRFXPHQWV DQG UHSRUWV DV ZHOO

PAGE 41

DV KLVWRULFDO LQIRUPDWLRQ RQ HDFK GLVWULFW LQ WKH VWXG\ 2I WKH WHQ GLVWULFWV VXUYH\HG -HQVHQ FODVVLILHG WZR RI WKHP DV PXOWLFRO OHJH GLVWULFWV ILYH DV PXOWLFDPSXV GLVWULFWV DQG WKUHH DV PXOWLSURJUDP GLVWULFWV 7KH GHILQLWLRQV GHULYHG E\ -HQVHQ IRU XVH LQ FDWHJRUL]LQJ PXOWLXQLW FRPPXQLW\ FROOHJH GLVWULFWV DUH 0XOWLFROOHJH GLVWULFW D GLVWULFW RSHUDWLQJ WZR RU PRUH LQGLYLGXDO FRPSUHKHQVLYH FROOHJHV 0XOWLEUDQFK PXOWLFDPSXVf GLVWULFW D GLVWULFW RSHUDWLQJ D VLQJOH OHJDO LQVWLWXWLRQ ZLWK WZR RU PRUH FRPSUHKHQVLYH FDPSXVHV 0XOWLSURJUDP GLVWULFW D GLVWULFW VLPLODU LQ RUJDQL]DWLRQ WR PXOWLEUDQFK GLVWULFWV H[FHSW WKDW HDFK EUDQFK RU FDPSXVf RIIHUV D GLIIHUHQW HGXFDWLRQDO SURJUDP IRU H[DPSOH D WHFKQLFDO DQG YRFDWLRQDO SURJUDP RQ RQH FDPSXV DQG DUWV DQG VFLHQFHV RQ DQRWKHU -HQVHQ S f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

PAGE 42

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f ,Q UHJDUG WR WKH FHQWUDOL]HGGHFHQWUDOL]HG LVVXH LQ WKH RUJDQLn ]DWLRQ DQG DGPLQLVWUDWLRQ RI PXOWLXQLW FRPPXQLW\ FROOHJH GLVWULFWV -HQVHQ FRQFOXGHV KLV VWXG\ ZLWK WKH IROORZLQJ SHUFHSWLYH IRUHFDVW 0XOWLFDPSXV MXQLRU FROOHJH GLVWULFWV DUH KHUH WR VWD\ DQG HYHQ WKRXJK WKHUH DUH SUREOHPV WKH QXPEHUV RI VXFK GLVWULFWV ZLOO LQFUHDVH $V WKH\ SURJUHVV WKURXJK WKHLU GHYHORSPHQWDO F\FOH WKH FDPSXVHV ZLOO WHQG WR EHFRPH PRUH LQGHSHQGHQW DQG WKH PDMRULW\ RI PXOWLFDPSXV GLVWULFWV ZLOO HYHQWXDOO\ EHFRPH PXOWLFROOHJH GLVWULFWV -HQVHQ S f 0DVLNR f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

PAGE 43

FROOHJHV ILQG WKHPVHOYHV 'LIIHUHQW RUJDQLn ]DWLRQDO SDWWHUQV PD\ EH QHHGHG DW WKH YDULRXV VWDJHV RI JURZWK DQG GHYHORSPHQW RI WKH PXOWLn FDPSXV FRPSOH[ 0DVLNR S f %RJDUW f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f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

PAGE 44

UHODWLRQVKLS -RQHV IXUWKHU FODULILHG KLV SRVLWLRQ VWDWLQJ WKDW 7KH FHQWUDO RIILFH SURYLGHV OHDGHUVKLS DQG PXFK VHUYLFH DW WKH EHJLQQLQJ $V WKH XQLWV FDQ PHHW WKHLU RZQ VHUYLFH UHTXLUHPHQWV ORFDOO\ IHZHU VHUYLFHV VKRXOG EH ORFDWHG FHQWUDOO\ 0XOWLFDPSXV RUJDQLn ]DWLRQ VKRXOG EH FRQVWDQWO\ HYROYLQJ IURP VWURQJ FHQWUDO FRQWURO ZKHQ XQLWV DUH VPDOO DQG ZHDN WR PXFK DXWRQRP\ DV WKH XQLW GHPRQVWUDWHV WKHLU DELOLW\ -RQHV S f ,Q .LQW]HU -HQVHQ DQG +DQVHQ FRQGXFWHG DQ HQWHQVLYH VWXG\ RI IRUW\ILYH PXOWLXQLW MXQLRU FROOHJH GLVWULFWV .LQW]HU -HQVHQ t +DQVHQ f 7KH GLVWULFWV VWXGLHG UHSUHVHQWHG VHYHQWHHQ VWDWHV DQG LQFOXGHG D ZLGH GLYHUVLW\ RI HFRQRPLF DQG GHPRJUDSKLF FKDUDFWHUn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f VSHFLILFDOO\ LQ WKH DUHDV RI EXVLQHVV DIIDLUV LQVWUXFWLRQDO SURJUDPV DQG VHPLSURIHVVLRQDO HGXFDWLRQ 7KDW WKH FHQWUDO RIILFH EH ORFDWHG FRPSOHWHO\ DZD\ IURP DOO FDPSXVHV SUHIHUDEO\ DW D ORFDWLRQ FHQWUDO WR WKH HQWLUH GLVWULFW 7KDW QR RQH DW WKH FHQWUDO RIILFH RWKHU WKDQ WKH FKLHI DGPLQLVWUDWLYH RIILFHU RI WKH GLVWULFW EH DW D OHYHO KLJKHU WKDQ WKDW RI WKH FKLHI FDPSXV DGPLQLVWUDWRUV.LQW]HU -HQVHQ t +DQVHQ SS f

PAGE 45

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nV UHVSRQVLELOLWLHV DQG FRPSHWHQFLHV 7KDW OHDGHUVKLS LV D FUXFLDO IDFWRU LQ WKH VXFFHVV RU IDLOXUH RI D GLVWULFW V\VWHP .LQW]HU -HQVHQ t +DQVHQ S f 7KH VWXG\ E\ .LQW]HU -HQVHQ DQG +DQVHQ f LGHQWLILHG PDQ\ FKDUDFWHULVWLFV RI PXOWLXQLW RUJDQL]DWLRQDO VWUXFWXUHV $OWKRXJK WKH DXWKRUV RI WKH VWXG\ FRQFOXGH WKDW PXOWLFDPSXV MXQLRU FROOHJH GLVWULFWV DUH KHUH WR VWD\ DQG ZLOO FRQWLQXH WR LQFUHDVH LQ QXPEHU DQG VL]H WKH\ DOVR LGHQWLILHG VRPH RI WKH PDMRU FULWLFLVPV DQG SRVVLEOH GLVDGYDQWDJHV RI WKLV W\SH RUJDQL]DWLRQ 6RPH RI WKHVH DUH ,QVHQVLWLYH WR SDUWLFXODU VHUYLFH DUHDV ZLWKLQ WKH GLVWULFW 6L]H DQG FRPSOH[LW\ RI WKH LQVWLWXWLRQ PDNH LW QRW ZHOO VXLWHG WR FKDQJH DQG LQQRYDWLRQ

PAGE 46

&RPPXQLW\ LGHQWLILFDWLRQ ZLWK WKH LQVWLWXWLRQ LV PRUH GLIILFXOW WR DFKLHYH &HQWUDO RIILFH SHUVRQQHO WHQG WR EHFRPH WRR GLUHFWLYH 2SHUDWLQJ FRVWV DUH JUHDWHU HVSHFLDOO\ GXULQJ WKH ILUVW IHZ \HDUV '\VIXQFWLRQDO FRPSHWLWLRQ DPRQJ WKH FDPSXVHV LQ WKH GLVWULFW 2QH FDPSXV PD\ EHFRPH RULHQWHG WRZDUG YRFDWLRQDO RU EOXH FROODU SURJUDPV DQG DQRWKHU FDPSXV WRZDUG RQO\ FROOHJH WUDQVIHU SURJUDPV WKHUHE\ SURPRWLQJ SRVVLEOH VRFLDO VWLJPDV.LQW]HU -HQVHQ t +DQVHQ S f %ORFN ZURWH DQ DUWLFOH LQ LQ ZKLFK KH H[SORUHG WKH LVVXH RI FHQWUDOL]DWLRQ DQG GHFHQWUDOL]DWLRQ RI DGPLQLVWUDWLYH IXQFWLRQV LQ PXOWLXQLW FRPPXQLW\ FROOHJH GLVWULFWV %ORFN f ,Q WKH DUWLFOH %ORFN FRQFOXGHG WKDW SDWWHUQV RI PXOWLXQLW RUJDQL]DWLRQ LQ FRPPXQLW\ FROOHJH GLVWULFWV DUH TXLWH YDULHG WKHUHE\ PDNLQJ LW H[WUHPHO\ GLIILFXOW WR LGHQWLI\ D VHW IRUPXOD ZKLFK ZRXOG ILW HDFK GLVWULFWnV SHFXOLDULWLHV 7KH FKRLFH EHWZHHQ D FHQWUDOL]HG PXOWLn FDPSXV V\VWHP DQG D GHFHQWUDOL]HG PXOWLFROOHJH V\VWHP LV D GLIILFXOW RQH DQG XVXDOO\ UHVWV ZLWK WKH ERDUG RI FRQWURO RI WKH GLVWULFW ,Q RUGHU WR FODULI\ WKH GHFLVLRQ DOWHUQDWLYHV DYDLODEOH %ORFN LGHQWLILHG D OLVW RI WKLUWHHQ TXHVWLRQV WKDW PXVW EH DQVZHUHG LQ DUULYLQJ DW DQ DSSURSULDWH RUJDQL]DWLRQDO VFKHPH ,Q FRQFOXVLRQ %ORFN QRWHG WKDW GHVSLWH WKH GHVLUHG DXWRQRP\ RI ORFDO XQLWV LQ D PXOWLXQLW GLVWULFW WKHUH DUH VWLOO LPSRUWDQW DUHDV WKDW UHTXLUH D KLJK GHJUHH RI XQLn IRUPLW\ DPRQJ WKH FROOHJHV LQ WKH GLVWULFW

PAGE 47

,Q *RYHUQDQFH IRU WKH 7ZR
PAGE 48

LPSHUYLRXV WR RUJDQL]DWLRQDO FKDQJH 5LFKDUGVRQ %ORFNHU t %HQGHU S f $V DQ DOWHUQDWLYH WR WKLV IDWH WKH\ VXJJHVW WKH XVH RI WKH SDUWLFLSDWLYH PRGHO FRQFOXGLQJ WKDW WKH QHHG IRU VXFK D PRGHO RI JRYHUQDQFH PD\ EH JUHDWHU IRU PXOWLLQVWLWXWLRQ GLVWULFWV WKDQ IRU D VLQJOH XQLW V\VWHP 7KHUH DUH PDQ\ VSHFLILF DUHDV RI PXOWLXQLW FRPPXQLW\ FROOHJH RUJDQL]DWLRQ DQG JRYHUQDQFH WKDW DUH LQ QHHG RI HPSLULFDO VWXG\ 6RPH VWXGLHV KDYH EHHQ XQGHUWDNHQ LQ VHYHUDO DUHDV WR LGHQWLI\ HPSLULFDOO\ XVHDEOH GDWD IURP WKHVH XUEDQ GLVWULFWV 0F&OXVNH\ f PDGH D VWXG\ RI WKH IRUPDO GHFLVLRQPDNLQJ SURFHGXUH IRU VWXGHQW SHUVRQQHO VHUYLFHV LQ PXOWLFDPSXV FRPPXQLW\ FROOHJHV +ROFRPEH f GLG D UHVHDUFK VWXG\ RQ WKH IRUPDO GHFLVLRQn PDNLQJ IRU FXUULFXOXP DQG LQVWUXFWLRQ LQ PXOWLFDPSXV GLVWULFWV $QG %LHOHQ f LQ KLV GRFWRUDO GLVVHUWDWLRQ UHSRUWHG WKH ILQGLQJV RI KLV VWXG\ RI EXGJHW DGPLQLVWUDWLRQ LQ PXOWLFDPSXV FRPPXQLW\ FROOHJHV 5HYLHZ RI 5HVHDUFK 6WXGLHV DQG 3HUWLQHQW /LWHUDWXUH RQ &RPPXQLW\ &ROOHJH &KLHI ([HFXWLYH 2IILFHUV 7KHUH KDV EHHQ D JUHDW GHDO RI UHVHDUFK FRQGXFWHG FRQFHUQLQJ WKH UROH DQG IXQFWLRQ RI H[HFXWLYH RIILFHUV LQ YDULRXV RUJDQLn ]DWLRQDO VHWWLQJV 0XFK RI WKH UHVHDUFK SHUWLQHQW WR WKLV VWXG\ LV FRQFHUQHG ZLWK EXVLQHVV RUJDQL]DWLRQ DQG WR VRPH OHVVHU H[WHQW ZLWK FROOHJH FKLHI H[HFXWLYHV LQ JHQHUDO 7KH VSHFLILF UROH RI WKH FRPPXQLW\ FROOHJH FKLHI H[HFXWLYH RIILFHU KDV EHHQ H[SORUHG LQ D PXFK PRUH OLPLWHG QXPEHU RI UHVHDUFK VWXGLHV 7KH UROH RI FKLHI

PAGE 49

H[HFXWLYH RIILFHUV LQ PXOWLXQLW GLVWULFWV LV VHYHUHO\ QHJOHFWHG LQ WKH UHVHDUFK DQG OLWHUDWXUH 7KH PRVW IUHTXHQW REVHUYDWLRQ PDGH LQ VWXGLHV RI FRPPXQLW\ FROOHJH FKLHI H[HFXWLYHV LV WKDW WKHLU UROH KDV FKDQJHG VLJQLILn FDQWO\ RYHU WKH SDVW WZR GHFDGHV 7KH IROORZLQJ FRPPHQW ZHOO LOOXVWUDWHV WKH VLWXDWLRQ DV LW FXUUHQWO\ H[LVWV 7KH UHVSRQVLELOLWLHV RI WZR\HDU FROOHJH SUHVLGHQWV KDYH LQFUHDVHG DQG EHFRPH PRUH FRPSOH[ DV WKH WZR \HDU FROOHJH KDV DVVXPHG D ODUJHU DQG ODUJHU VKDUH RI SRVWKLJK VFKRRO HGXFDWLRQ GXULQJ WKH SDVW WZHQW\ \HDUV 7KHVH FKDQJHV DUH WKH UHVXOWV RI LQFUHDVLQJ VL]H DQG FRPSOH[LW\ ZKLFK ZLOO FRQWLQXH WR H[SDQG WKH IXQFWLRQV DQG SUREOHPV RI WKH FROOHJH SUHVLGHQW LQ WKH IXWXUH %ORFNHU 3OXPPHU t 5LFKDUGVRQ S f ,Q /D9LUH FRQGXFWHG D UHVHDUFK VWXG\ RI WKH FULWLFDO WDVN DUHDV IRU SXEOLF MXQLRU FROOHJH DGPLQLVWUDWRUV /D9LUH f JDWKHUHG GDWD IRU KLV VWXG\ IURP WKUHH JURXSV f D SDQHO FRPSRVHG RI VHYHQ SXEOLF MXQLRU FROOHJH FKLHI DGPLQLVWUDWRUV LQ D VHOHFWHG VWDWH f D VDPSOH FRQVLVWLQJ RI HLJKW\WZR SXEOLF MXQLRU FROOHJH FKLHI DGPLQLVWUDWRUV LQ WKH QDWLRQ DQG f D MXU\ RI VHYHQ SXEOLF MXQLRU FROOHJH FKLHI DGPLQLVWUDWRUV ,Q KLV VWXG\ /D9LUH LGHQWLn ILHG ILYH RSHUDWLRQDO DUHDV RU FULWLFDO WDVN DUHDV RI SXEOLF MXQLRU FROOHJH DGPLQLVWUDWLRQ :LWKLQ WKHVH ILYH DUHDV KH LGHQWLILHG IRUW\QLQH PRUH VSHFLILF FULWLFDO WDVNV /D9LUH SS f OLVWV WKH FULWLFDO WDVN DUHDV DQG FULWLFDO WDVNV DV IROORZV $ ,QVWUXFWLRQ DQG &XUULFXOXP 'HYHORSPHQW 3URYLGLQJ IRU WKH IRUPXODWLRQ RI FXUULFXOXP REMHFWLYH 3URYLGLQJ IRU WKH GHWHUPLQDWLRQ RI FXUULFXOXP FRQWHQW DQG RUJDQL]DWLRQ

PAGE 50

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

PAGE 51

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

PAGE 52

3URYLGLQJ IRU D FROOHJH LQVXUDQFH SURJUDP 3URYLGLQJ IRU D V\VWHP RI LQWHUQDO DFFRXQWLQJ $OWKRXJK WKH /D9LUH VWXG\ GLG QRW GHDO GLUHFWO\ ZLWK WKH UROH RI WKH MXQLRU FROOHJH SUHVLGHQW LW GLG SURYLGH PXFK HPSLULFDO GDWD FRQFHUQLQJ JHQHUDO DGPLQLVWUDWLYH WDVNV LQ SXEOLF FRPPXQLW\ MXQLRU FROOHJHV /D9LUHnV VWXG\ FRQWULEXWHG JUHDWO\ WR WKH GHYHORSPHQW RI WKH TXHVWLRQQDLUH XVHG LQ WKLV VWXG\ ,Q 6KDQQRQ LQYHVWLJDWHG WKH UROH RI SXEOLF FRPPXQLW\ MXQLRU FROOHJH SUHVLGHQWV 6KDQQRQ f ,Q KLV VWXG\ 6KDQQRQ XQGHUWRRN WKH SXUSRVH RI DQDO\]LQJ WKH UROH RI FRPPXQLW\ FROOHJH SUHVLGHQWV DV LW ZDV SHUFHLYHG E\ SUHVLGHQWV WKHPVHOYHV +H SODFHG HPSKDVLV RQ FRPSDULVRQV RI DFWXDO DQG SUHIHUUHG IUHTXHQFLHV RI SHUVRQDO LQYROYHn PHQW E\ WKH SUHVLGHQW LQ WZHOYH EURDG DUHDV RI DGPLQLVWUDWLRQ *HQHUDO ELRJUDSKLFDO GDWD ZDV DOVR JDWKHUHG FRQFHUQLQJ WKH FRPPXQLW\ FROOHJH SUHVLGHQW VXFK DV VRXUFHV SUHYLRXV H[SHULHQFH DQG HGXFDWLRQDO EDFNJURXQGV RI WKHVH DGPLQLVWUDWRUV 7KH PDMRU VRXUFH RI GDWD IRU WKH 6KDQQRQ VWXG\ ZDV D TXHVWLRQQDLUH PDLOHG WR FRPPXQLW\ FROOHJH SUHVLGHQWV )URP WKH UHVXOWV RI WKH VWXG\ 6KDQQRQ SS f UHDFKHG WKH IROORZLQJ JHQHUDO FRQn FOXVLRQV FRQFHUQLQJ WKH UROH RI WKH SXEOLF FRPPXQLW\ FROOHJH SUHVLGHQW &RPPXQLW\ FROOHJH DGPLQLVWUDWLRQ LV VXIILFLHQWO\ GLIIHUHQW IURP RWKHU DUHDV RI DGPLQLVWUDWLRQ WR ZDUUDQW VSHFLDO SURIHVVLRQDO VWXG\ DQG DWWHQWLRQ 3UHVLGHQWV EHOLHYH WKDW FRPPXQLW\ FROOHJHV VKRXOG EH DXWRQRPRXV DQG XQGHU WKH MXULVGLFWLRQ RI LQGHSHQGHQW ERDUGV RI FRQWURO

PAGE 53

0RVW SUHVLGHQWV DUH QRZ GUDZQ IURP WKH ILHOGV RI KLJKHU HGXFDWLRQ UDWKHU WKDQ IURP VHFRQGDU\ HGXFDWLRQ DV ZDV WKH FDVH D GHFDGH DJR )LIW\ILYH SHUFHQW RI WKH SUHVLGHQWV KROG PDVWHUfV GHJUHHV ZKLOH IRUW\WKUHH SHUFHQW KROG GRFWRUDWHV LQGLFDWLQJ QR FKDQJH LQ SHUFHQWDJHV VLQFH WKH nV 3UHVLGHQWV VSHQG PRVW WLPH RQ PDWWHUV UHODWLQJ WR f VWDII f SXEOLF UHODWLRQV f ILQDQFHV DQG f VWXGHQWV 7KH\ ZRXOG SUHIHU WR VSHQG WKHLU WLPH LQ WKH DUHDV RI f VWDII f FXUULFXOXP GHYHORSPHQW f SXEOLF UHODWLRQV DQG f VWXGHQWV LQ WKDW RUGHU 3UHVLGHQWV OLVW WKHVH DUHDV DV PRVW QHJOHFWHG RU XQDWWHQGHG LQ UDQN RUGHU f DOXPQL f OHJLVODWLRQ f VWXGHQWV DQG f SURIHVVLRQDO DFWLYLWLHV 3UHVLGHQWV EHOLHYH WKHLU UROH LV WKDW RI HGXFDWLRQDO OHDGHU ERWK LQ WKH FRPPXQLW\ DQG RQ WKH FDPSXV $FFRUGLQJO\ WKH\ IHHO D UHVSRQVLELOLW\ WR LQYROYH WKHPVHOYHV LQ FRPPXQLW\ DIIDLUV DQG WR KHOS IRUPXODWH SROLF\ DQG UHPDLQ FORVH WR WKH DUHDV RI FXUULFXOXP GHYHORSPHQW VWDII DQG IDFXOW\ VXSHUYLVLRQ VWXGHQW SHUVRQQHO ZRUN DQG LQVWUXFWLRQ ,Q FRQFOXVLRQ 6KDQQRQ SS f LGHQWLILHG VHYHUDO PDMRU LPSOLFDWLRQV WKDW DUH GUDZQ IURP KLV ILQGLQJV $GPLQLVWUDWRUV LQ WKH ILHOG RI FRPPXQLW\ FROOHJH DGPLQLVn WUDWLRQ PXVW EH SUHSDUHG WR KDQGOH WKH PXOWLSOH UHVSRQVLELOLWLHV RI DXWRQRPRXV LQVWLWXWLRQV WR XQGHUVWDQG WKH VSHFLDO PLVVLRQ RI WKH FRPPXQLW\ FROOHJH DQG WR LQWHUSUHW WKLV PLVVLRQ EURDGO\ WR OD\ DQG SURIHVVLRQDO SHUVRQV

PAGE 54

3URJUDPV RI DGPLQLVWUDWRU SUHSDUDWLRQ VKRXOG VWUHVV WKH VRFLDO VHWWLQJ RI WKH FRPPXQLW\ FROOHJH DQG VKRXOG EURDGHQ WKH DGPLQLVWUDWRUnV XQGHUVWDQGLQJ RI HGXFDWLRQDO WKHRU\ VRFLRORJ\ DQG PRGHUQ WHFKQRORJ\ 7KH SHUVRQDO RULHQWDWLRQ RI WKH FRPPXQLW\ FROOHJH SUHVLGHQW VKRXOG EH URRWHG LQ D GHVLUH WR IXUWKHU WKH GHPRFUDWL]DWLRQ RI KLJKHU HGXFDWLRQ *UDKDP f FRQGXFWHG D VWXG\ WR GHWHUPLQH KRZ WKUHH YDULDEOHV VFKRRO VL]H JHRJUDSKLF ORFDWLRQ DQG UHSRUWLQJ DXWKRULW\ DIIHFWHG WKH SHUFHLYHG SHUIRUPDQFH E\ WKH SUHVLGHQWV RI FHUWDLQ DFWV GLYLGHG LQWR ILYH DUHDV RI DGPLQLVWUDWLRQ DQG KRZ HDFK SUHVLGHQW SHUFHLYHG WKHVH DFWV WR EH 7KH UHVSRQVHV WR D TXHVWLRQQDLUH ZHUH DOVR DQDO\]HG E\ WKH IROORZLQJ ILYH DGPLQLVWUDWLYH SURFHVVHV SODQQLQJ RUJDQL]LQJ OHDGLQJ FRQWUROOLQJ DQG DVVHVVLQJ 7KH *UDKDP SS f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

PAGE 55

'H/RDFKH f XVHG WKH TXHVWLRQQDLUH PHWKRG LQ KLV VWXG\ WR WHVW ZKHWKHU RU QRW IDFXOW\ PHPEHUV DQG SUHVLGHQWV DWWDFK LPSRUWDQFH WR WKH VDPH DVSHFWV RI WKH IXQFWLRQV RI MXQLRU FROOHJH SUHVLGHQWV 7KH ILQGLQJV RI KLV VWXG\ UHYHDOHG WKH IROORZLQJ 7KH GLIIHUHQFH EHWZHHQ WKH IDFXOW\ PHPEHUV DQG WKH SUHVLGHQWV ZHUH LQ WKH GHJUHH RI LPSRUWDQFH HDFK DWWULEXWHG WKH VWDWHPHQWV WR WKH RIILFH RI SUHVLGHQW 7KH UHVXOWV RI WKH &KLVTXDUH WHVW RI VLJQLILFDQFH LQGLn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f 7KH PDMRU IXQFWLRQV RI WKH FKLHI H[HFXWLYH RIILFHU DFFRUGLQJ WR 6LPRQ DUH 5DLVLQJ PRQH\ %DODQFLQJ WKH EXGJHW 3DUWLFLSDWLQJ LQ WKH HVWDEOLVKPHQW RI LQVWLWXWLRQDO JRDOV :RUNLQJ ZLWK IDFXOW\ WR FUHDWH DQ HQYLURQPHQW WKDW HQFRXUDJHV OHDUQLQJ

PAGE 56

5HFUXLWLQJ DQG PDLQWDLQLQJ D KLJK TXDOLW\ RI IDFXOW\6LPRQ SS f ,Q WKH DUWLFOH 6LPRQ f GUDZV D SDUDOOHO EHWZHHQ WKH UHVSRQVLELOLWLHV RI WKH FROOHJH SUHVLGHQW DQG WKRVH RI WRS H[HFXWLYHV LQ RWKHU W\SHV RI RUJDQL]DWLRQV $OWKRXJK WKH IXQFWLRQV KH HQXPHUDWHV DUH QRW LQWHQGHG VSHFLILFDOO\ IRU WKH FRPPXQLW\ FROOHJH SUHVLGHQW WKH\ GR SURYLGH DFFXUDWH UHSUHVHQWDWLRQ RI JHQHUDOO\ DSSOLFDEOH IXQFWLRQV GLVFXVVHG LQ PXFK RI WKH OLWHUDWXUH 0RUULVVH\ LQ D DUWLFOH SUHVHQWHG KLV YLHZ WKDW PXOWLn XQLW FRPPXQLW\ FROOHJH GLVWULFWV VKRXOG EH GHFHQWUDOL]HG LQ DGPLQLVWUDWLYH VWUXFWXUH UHFRPPHQG WKDW LQ FRPSOH[ FRPPXQLW\ FROOHJH V\VWHPV HDFK FROOHJH HVWDEOLVKHG EH FDOOHG D FROOHJH ZLWK WKH SULYLOHJH RI QDPLQJ WKH VFKRRO UHVHUYHG IRU WKH FROOHJH SURIHVVLRQDOV DQG LQWHUHVWHG FLWL]HQV RI WKH UHJLRQ WR EH VHUYHG 7KH ZRUG FDPSXV FDOOV IRUWK WKH PXPLILHG JKRVW RI KLJKHU HGXFDWLRQDO PLVWDNHV WKH ZRUG FROOHJH GHVFULEHV ZKDW WKH LQVWLWXWLRQ LV LQ IDFW 0RUULVVH\ S f ,Q UHJDUG WR WKH FKLHI DGPLQLVWUDWLYH RIILFHU RI WKH GLVWULFW 0RUULVVH\ RIIHUHG WKH IROORZLQJ VWDWHPHQW DV WR KLV UROH LQ D PXOWL XQLW GLVWULFW 0RVW H[LVWLQJ V\VWHPV GR QRW SUHWHQG LQ WKHLU RZQ UHWUHDWV WKDW WKH QRPLQDO KHDG RI D PXOWLXQLW FROOHJH V\VWHP DFWXDOO\ PDNHV WKH FRQWUROOLQJ GHFLVLRQV DIIHFWLQJ WKH RSHUDWLRQV RI WKH VSHFLILF VFKRROV 0RUULVVH\ S f 0RUULVVH\ EHOLHYHV WKDW WKH FRPPXQLW\ FROOHJH FKLHI H[HFXWLYH RIILFHU LV WRR IDU UHPRYHG IURP KLV FRXQWHUSDUWV DW WKH LQGLYLGXDO FDPSXVHV RU LQVWLWXWLRQV WR DFWXDOO\ PDNH DQ\ FRQWUROOLQJ GHFLVLRQV ,QVWHDG 0RUULVVH\ FRQWHQGHG WKH GLVWULFW RU FROOHJH SUHVLGHQW

PAGE 57

PXVW IRVWHU ORFDO DXWRQRP\ VR WKDW WKH ORFDO FDPSXVHV FDQ SURYLGH WKH OHDGHUVKLS QHHGHG DW WKDW SDUWLFXODU ORFDWLRQ ,Q VXPPDU\ 0RUULVVH\ SUHVHQWHG D OLVW RI GDLO\ UHVSRQVLELOLWLHV IRU ZKLFK WKH PXOWLXQLW FROOHJH SUHVLGHQW VKRXOG EH KHOG DFFRXQWDEOH 6XSHUYLVLRQ RI SK\VLFDO JURZWK /RQJUDQJH SODQQLQJ 5HODWLRQVKLS ZLWK WKH ERDUG RI WUXVWHHV $FTXLVLWLRQ RI ILQDQFLDO UHVRXUFHV ,QWHUSUHWDWLRQ RI ERDUG JRDOV DQG SROLFLHV 6WUHQJWKHQ WKH UHFUXLWLQJ SURFHVV 0RUULVVH\ S f 8SWRQ f FRQGXFWHG D UHVHDUFK VWXG\ RI WKH UROH H[SHFWDWLRQV RI IDFXOW\ DQG WUXVWHH JURXSV IRU WKH FRPPXQLW\ MXQLRU FROOHJH SUHVLGHQW )URP WKH ILQGLQJV RI KLV VWXG\ 8SWRQ SS f SUHVHQWHG WKH IROORZLQJ FRQFOXVLRQV WKDW DUH SHUWLQHQW WR WKLV UHYLHZ ,Q VSHFLI\LQJ WKH EHKDYLRU H[SHFWHG RI WKH SUHVLGHQW IDFXOW\ PHPEHUV GLIIHUHG VLJQLILFDQWO\ ZLWK ERDUG PHPEHUV 'LIIHUHQFHV EHWZHHQ ERDUG DQG IDFXOW\ JURXSV LQ WKHLU H[SHFWDWLRQV UHIOHFWHG FRQVLVWHQW GLIIHUHQFHV LQ SRVLWLRQ UHJDUGLQJ FHUWDLQ W\SHV RI EHKDYLRU *UHDWHVW GLIIHUHQFHV EHWZHHQ ERDUG DQG IDFXOW\ JURXSV FHQWHUHG DURXQG KRZ SULPDU\ UHVSRQVLELOLW\ IRU GHFLVLRQPDNLQJ VKRXOG EH GLYLGHG ZLWKLQ WKH FROOHJH 2VERUQH f FRQGXFWHG D VWXG\ RI WKH FRPPXQLW\ FROOHJH SUHVLGHQF\ ZLWK WKH PDMRU SXUSRVH RI GHWHUPLQLQJ WKH EHKDYLRUDO

PAGE 58

FKDUDFWHULVWLFV GHHPHG FULWLFDO WR WKH SUHVLGHQWnV HIIHFWLYHQHVV ,Q WKH VWXG\ 2VERUQH SS f DOVR VRXJKW WR FRPSDUH YDULRXV JURXSV RI UHVSRQGHQWV LQ RUGHU WR GHWHUPLQH LI WKH\ SHUn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

PAGE 59

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t 5RXHFKH S f 7KH UHVn SRQVLELOLWLHV IRXQG WR EH W\SLFDOO\ DVVLJQHG WR WKH SUHVLGHQW ZHUH FDPSXV GHYHORSPHQW LPSOHPHQWDWLRQ RI ERDUG SROLF\ FRQWURO RI ILVFDO DIIDLUV VXSHUYLVLRQ RI DGPLQLVWUDWLYH DQG WHDFKLQJ VWDII DQG FDPSXV ODZ DQG RUGHU 9DQ7UHDVH f FRQGXFWHG D VWXG\ RI DXWKRULW\ UHODWLRQVKLSV EHWZHHQ FKLHI GLVWULFW DGPLQLVWUDWRUV DQG FKLHI FDPSXV DGPLQLVWUDWRUV LQ PXOWLFDPSXV MXQLRU FROOHJH GLVWULFWV 7KH PDMRU SXUSRVH RI WKH VWXG\ ZDV WR GHWHUPLQH ZKHWKHU WKHUH ZDV D GLIIHUHQFH LQ WKH SHUn FHSWLRQV RI DXWKRULW\ UHODWLRQVKLSV H[LVWLQJ LQ WKHLU VFKRROV EHWZHHQ WKH WZR JURXSV RI DGPLQLVWUDWRUV XVHG LQ WKH VWXG\ 8VLQJ WKH VHPDQWLF GLIIHUHQWLDO DV WKH PHDVXULQJ GHYLFH 9DQ7UHDVH VHQW TXHVWLRQQDLUHV WR IRUW\WKUHH FKLHI GLVWULFW DGPLQLVWUDWRUV DQG RQH KXQGUHG VL[WHHQ FKLHI FDPSXV DGPLQLVWUDWRUV $GPLQLVWUDWRUV ZHUH DVNHG WR LQGLFDWH WKHLU SHUFHSWLRQ RI FXUUHQW GLVWULFW SDUWLFLSDWLRQ

PAGE 60

LQ WKH IROORZLQJ IXQFWLRQV 7H[WERRN VHOHFWLRQ 5HFUXLWPHQW RI QHZ VWDII PHPEHUV ,QVHUYLFH WUDLQLQJ 3K\VLFDO IDFLOLW\ SODQQLQJ %XGJHW SUHSDUDWLRQ 3XEOLF LQIRUPDWLRQ VHUYLFHV 6WXGHQW SHUVRQQHO VHUYLFHV &XUULFXOXP GHYHORSPHQW &RPPXQLW\ VHUYLFH GHYHORSPHQW}9DQ7UHDVH SS f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

PAGE 61

&+$37(5 ,,, 0,$0,'$'( 7+( 52/( 2) 7+( &+,() (;(&87,9( 2)),&(5 $7 $ 08/7,&$0386 ,167,787,21 0L DPL'DGH &RPPXQLW\ &ROOHJH VHUYHG DV WKH PXOWLFDPSXV FRPPXQLW\ FROOHJH GLVWULFW VDPSOH LQ WKLV VWXG\ 7KLV FKDSWHU LV D GLVFXVVLRQ RI WKH IXQFWLRQV DQG UROH OHJDO DQG SHUFHLYHG RI WKH FKLHI H[HFXWLYH RIILFHU 3UHVLGHQWf RI 0LDPL'DGH &RPPXQLW\ &ROOHJH 7KH ILUVW VHFWLRQ GHVFULEHV WKH HQYLURQPHQWDO VHWWLQJ RI WKH FROOHJH ZLWKLQ WKH GLVWULFW 6HFWLRQ WZR LV D GHVFULSWLRQ RI WKH KLVWRU\ DQG GHYHORSPHQW RI WKH FROOHJH ZLWK HPSKDVLV RQ WKH SUHVHQW FRQGLWLRQV WKDW H[LVW ,Q VHFWLRQ WKUHH WKH EDVLF OHJDO VWUXFWXUH RI JRYHUQDQFH LV RXWOLQHG DQG WKH UROH RI WKH FKLHI H[HFXWLYH RIILFHU 3UHVLGHQWf LV GLVFXVVHG 6HFWLRQ IRXU SUHVHQWV WKH ILQGLQJV RI WKH TXHVWLRQQDLUH DQG VWUXFWXUHG LQWHUYLHZV KHOG DW WKH FROOHJH 7KH FKDSWHU LV FRQFOXGHG ZLWK D EULHI VXPPDWLRQ DQG GLVFXVVLRQ RI VRPH JHQHUDO REVHUYDWLRQV DERXW WKH IXQFWLRQV RI WKH 3UHVLGHQW RI WKH &ROOHJH (QYLURQPHQWDO 6HWWLQJ 0LDPL'DGH &RPPXQLW\ &ROOHJH LV ORFDWHG LQ 0HWURSROLWDQ 'DGH &RXQW\ DQ DUHD RI WKH VRXWKHDVWHUQ FRDVW RI )ORULGD WKDW FRPSULVHV DSSUR[LPDWHO\ VTXDUH PLOHV RI ODQG DUHD ,QVWLWXWLRQDO 6HOI

PAGE 62

6WXG\ S f 7KH FRXQW\ FRQWDLQV WZHQW\VL[ VHSDUDWH PXQLFLSDOLWLHV WKH FLW\ RI 0LDPL EHLQJ WKH ODUJHVW ZLWK D SRSXODn WLRQ RI RYHU SHRSOH 7KH :RUOG $OPDQDF S f $OO RI WKH FRXQW\nV PXQLFLSDOLWLHV DUH SDUW RI D PHWURSROLWDQ IRUP RI JRYHUQPHQW 7KH FRXQW\ H[SHULHQFHG D SHUFHQW JURZWK UDWH LQ SRSXODWLRQ EHWZHHQ DQG IURP WR SHRSOH ,QVWLWXWLRQDO 6HOI 6WXG\ S f 2YHUDOO 'DGH UDQNV WZHQW\ IRXUWK LQ VL]H DPRQJ WKH QDWLRQnV PHWURSROLWDQ DUHDV 7KH :RUOG $OPDQDF S f 7KH IROORZLQJ LV D OLVWLQJ RI VRPH RI WKH VLJQLILFDQW FKDUDFWHULVWLFV RI WKH FLWL]HQU\ RI 'DGH &RXQW\ ,QVWLWXWLRQDO 6HOI 6WXG\ SS f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

PAGE 63

7KH PHGLDQ IDPLO\ DQQXDO LQFRPH LV $SSUR[LPDWHO\ SHUFHQW RI WKH SRSXODWLRQ DUH FRQVLGHUHG WR EH OLYLQJ EHORZ WKH GHILQHG SRYHUW\ OHYHO 7KH HFRQRP\ RI WKH FRXQW\ LV EXLOW SULPDULO\ DURXQG WUDGH DQG VHUYLFH LQGXVWULHV JHDUHG WR WRXULVP DQG WKH SURYLVLRQ RI JRRGV DQG VHUYLFHV WR DQ H[SDQGLQJ SRSXODWLRQ 7KH ODUJHVW HPSOR\HU LQ WKH FRXQW\ LV WKH 'DGH &RXQW\ SXEOLF VFKRRO V\VWHP ,QVWLWXWLRQDO 6HOI 6WXG\ S f ,W LV JHQHUDOO\ DFNQRZOHGJHG WKDW IXUWKHU GLYHUVLILFDWLRQ LV GHVLUDEOH LQ WKH FRXQW\ WR DLG LQ VWDELOL]LQJ WKH HFRQRP\ DQG WR SURYLGH LQFUHDVHG HPSOR\PHQW RSSRUWXQLWLHV +LVWRU\ DQG 'HYHORSPHQW RI WKH &ROOHJH 0L DPL'DGH &RPPXQLW\ &ROOHJH EHJDQ RSHUDWLRQ LQ WHPSRUDU\ IDFLOLWLHV RQ 6HSWHPEHU XQGHU WKH QDPH RI WKH 'DGH &RXQW\ -XQLRU &ROOHJH ,QVWLWXWLRQDO 6HOI 6WXG\ S f ,W ZDV HVWDEOLVKHG DV SDUW RI WKH )ORULGD V\VWHP RI MXQLRU FROOHJHV DQG ZDV MRLQWO\ VXSSRUWHG E\ VWDWH DQG ORFDO IXQGV %\ WKH HQG RI WKH VHFRQG \HDU RI RSHUDWLRQ WKH FROOHJH KDG GRXEOHG LWV RULJLQDO HQUROOPHQW RI DQG ZDV VHUYLQJ VWXGHQWV DW WKH WZR LQLWLDO FHQWHUV ,QVWLWXWLRQDO 6HOI 6WXG\ S f 7KH JURZWK ZDV FRQWLQXHG DQG UDSLG VR WKDW E\ 0D\ WKH FROOHJH KDG DZDUGHG RYHU WHQ WKRXVDQG DVVRFLDWH LQ DUWV GHJUHHV ,QVWLWXWLRQDO 6HOI 6WXG\ S f ,Q WKH IDOO RI WKH FROOHJH PRYHG WR LWV ILUVW SHUPDQHQW FDPSXV QRZ GHVLJQDWHG WKH 1RUWK &DPSXV ZLWK D ILUVW \HDU

PAGE 64

HQUROOPHQW RI VWXGHQWV ,QVWLWXWLRQDO 6HOI 6WXG\ S f ,W ZDV GXULQJ WKH ILUVW \HDU DW WKH 1RUWK &DPSXV LQ WKH 6SULQJ RI WKDW WKH QDPH RI WKH FROOHJH ZDV RIILFLDOO\ FKDQJHG WR 0LDPL'DGH -XQLRU &ROOHJH 7KH 6RXWK &DPSXV EHJDQ RSHUDWLRQV LQ WHPSRUDU\ IDFLOLWLHV LQ WKH IDOO RI ZLWK DQ HQUROOPHQW RI RI WKH WRWDO FROOHJH HQUROOPHQW RI ,QVWLWXWLRQDO 6HOI 6WXG\ S f ,Q HDUO\ WKH 6RXWK &DPSXV EHJDQ RSHUDWLRQV DW WKH FXUUHQW SHUPDQHQW VLWH 7KH UDSLG JURZWK RI WKH FROOHJH LV ZHOO LOOXVWUDWHG E\ WKH IROORZLQJ IDFWV 0L DPL'DGH &RPPXQLW\ &ROOHJH HQUROOV PRUH IXOOWLPH HTXLn YDOHQW VWXGHQWV WKDQ DQ\ RWKHU FRPPXQLW\ FROOHJH LQ WKH QDWLRQ %\ WKH IDOO RI 0L DPL'DGH -XQLRU &ROOHJH KDG WKH ODUJHVW HQUROOPHQW RI DQ\ LQVWLWXWLRQ RI KLJKHU HGXFDWLRQ LQ )ORULGD ZLWK D VWXGHQW SRSXODWLRQ RI 7KH WK VWXGHQW ZDV UHJLVWHUHG RQ $XJXVW %\ WKHUH ZHUH VHYHQ RIIFDPSXV FHQWHUV RSHUDWLQJ DV H[WHQVLRQV RI WKH WKUHH PDMRU FDPSXVHV ,QVWLWXWLRQDO 6HOI 6WXG\ SS f 7KH 'RZQWRZQ &DPSXV EHFDPH WKH FROOHJHnV WKLUG FDPSXV ZKHQ LW RSHQHG LQ WKH IDOO RI LQ WHPSRUDU\ IDFLOLWLHV %\ WKH IDOO RI ZKHQ WKH SHUPDQHQW FDPSXV ZDV RSHQHG WKH 'RZQWRZQ &DPSXV HQUROOPHQW KDG FOLPEHG IURP WR VWXGHQWV ,QVWLWXWLRQDO 6HOI 6WXG\ S f

PAGE 65

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f 7KH HQUROOPHQW ILJXUHV IRU 0LDPL'DGH DV RI WKH IDOO WHUP RI VHUYH ZHOO WR LOOXVWUDWH WKH HQYROYHPHQW RI WKH FROOHJH LQ DWWHPSWLQJ WR PHHW WKH HGXFDWLRQDO QHHGV RI WKH GLVWULFW 7RWDO &ROOHJH (QUROOPHQW f 72IILFH RI ,QIRUPDWLRQDOn 6HUYLFHV f &UHGLW VWXGHQWV 1RQFUHGLW VWXGHQWV 7RWDO &DPSXV (QUROOPHQW f 2IILFH RI ,QIRUPDWLRQDO 6HUYLFHV f 1RUWK &DPSXV 6RXWK &DPSXV 'RZQWRZQ &DPSXV 0HGLFDO &HQWHU &DPSXV XQRIILFLDO HVWLPDWH E\ FROOHJH RIILFLDOV RI

PAGE 66

/HJDO 6WUXFWXUH RI *RYHUQDQFH $W 0L DPL'DGH &RPPXQLW\ &ROOHJH D PXOWLFDPSXV DGPLQLVWUDWLYH V\VWHP LV VHW XS ZKHUH WKH FHQWUDO FROOHJH DGPLQLVWUDWRU DVVXPHV WKH UROH RI SURYLGLQJ VXSSRUW RI LQVWUXFWLRQ DQG WKH SURYLVLRQ RI VHUYLFHV VXFK DV DGPLVVLRQ UHJLVWUDWLRQ EXGJHWLQJ SXUFKDVLQJ SHUVRQQHO LQVWLWXWLRQDO UHVHDUFK OLEUDU\ DFTXLVLWLRQV LQVWUXFWLRQDO UHVRXUFHV IDFLOLWLHV SODQQLQJ DQG WKH RYHUDOO FROOHJH SODQQLQJ DQG SURJUDP FRRUGLQDWLRQ ,QVWLWXWLRQDO 6HOI 6WXG\ S f 7KH RIILFHU OHJDOO\ UHVSRQVLEOH IRU WKH RSHUDWLRQ RI WKH FROOHJH LV WKH 3UHVLGHQW ZKR LV DSSRLQWHG E\ WKH %RDUG RI 7UXVWHHV +LV UHVSRQVLELOLWLHV DUH VSHFLILHG LQ ERWK WKH 'HSDUWPHQW RI (GXFDWLRQ 5HJXODWLRQV DQG WKH FROOHJH 0DQXDO RI 3ROLF\ 7KH SRVLWLRQ GHVFULSWLRQ RI WKH FROOHJH 3UHVLGHQW SURYLGHV D VXPPDU\ RI WKH 3UHVLGHQWnV EDVLF UHVSRQVLELOLWLHV VHH $SSHQGL[ & &RPPXQLW\ &ROOHJH 3UHVLGHQWf 7KH FKLHI DGPLQLVWUDWLYH RIILFHU IRU HDFK FDPSXV LV GHVLJQDWHG DV D FROOHJH YLFHSUHVLGHQW DQG LV DSSRLQWHG E\ WKH 3UHVLGHQW VHH $SSHQGL[ &ROOHJH 2UJDQL]DWLRQ &KDUWf $OWKRXJK WKH 3UHVLGHQW LV UHVSRQVLEOH E\ ODZ IRU WKH DGPLQLVWUDWLRQ RI WKH WRWDO FROOHJH DW 0LDPL'DGH KH GHOHJDWHV FRQVLGHUDEOH DXWKRULW\ WR WKH FDPSXV YLFH SUHVLGHQWV IRU WKH GD\WRGD\ LQWHUQDO RSHUDWLRQ RI HDFK FDPSXV ,QVWLWXWLRQDO 6HOI 6WXG\ S f 7KH ILUVW 3UHVLGHQW RI WKH FROOHJH ZDV 'U .HQQHWK 5 :LOOLDPV ZKR VHUYHG IURP WR -XO\ 8SRQ WKLV GDWH 'U 3HWHU 0DVLNR 2U EHFDPH WKH VHFRQG 3UHVLGHQW RI 0LDPL'DGH DQG FXUUHQWO\ VHUYHV LQ WKDW FDSDFLW\

PAGE 67

2Q -XO\ XSRQ DFWLRQ E\ WKH )ORULGD /HJLVODWXUH HDFK FROOHJH LQ WKH )ORULGD V\VWHP RI MXQLRU DQG FRPPXQLW\ FROOHJHV EHFDPH D VHSDUDWH OHJDO HQWLW\ ,QVWLWXWLRQDO 6HOI 6WXG\ S f )URP WKLV GDWH 0LDPL'DGH &RPPXQLW\ &ROOHJH DV ZHOO DV DOO WKH RWKHU FROOHJHV LQ WKH VWDWH V\VWHP KDYH EHHQ JRYHUQHG E\ D ORFDO 'LVWULFW %RDUG RI 7UXVWHHV FRQVLVWLQJ RI ILYH PHPEHUVf DSSRLQWHG E\ WKH *RYHUQRU RI WKH 6WDWH 7KH %RDUG RI 7UXVWHHV LV JUDQWHG OHJDO DXWKRULW\ WR RSHUDWH WKH FROOHJH ZLWKLQ WKH EURDG IUDPHZRUN RI VWDWH UHJXODWLRQV SURPXOJDWHG E\ WKH )ORULGD %RDUG RI (GXFDWLRQ )LQGLQJV RI WKH 4XHVWLRQQDLUH DQG 6WUXFWXUHG ,QWHUYLHZV 7KH WZR LQVWUXPHQWV XVHG WR JDWKHU GDWD IRU WKLV VWXG\ SURYLGHG WKH UHVHDUFKHU ZLWK D JUHDW DPRXQW RI LQIRUPDWLRQ FRQFHUQLQJ WKH SHUFHSWLRQV RI WKH VHOHFWHG SDUWLFLSDQWV DW 0LDPL'DGH &RPPXQLW\ &ROOHJH VHH $SSHQGL[ %f $OO RI WKH LQIRUPDWLRQ ZDV REWDLQHG GXULQJ VFKHGXOHG SHUVRQDO LQWHUYLHZV ZLWK HDFK RI WKH SDUWLFLSDQWV 7KH ILUVW ILIWHHQ PLQXWHV ZHUH XVXDOO\ XVHG IRU WKH SDUWLFLSDQW WR FRPSOHWH WKH TXHVWLRQQDLUH ,I DQ\ TXHVWLRQV ZHUH UDLVHG E\ WKH SDUWLFLSDQW DERXW WKH TXHVWLRQQDLUH WKH\ ZHUH DQVZHUHG LPPHGLDWHO\ E\ WKH UHVHDUFKHU 8SRQ FRPSOHWLRQ RI WKH TXHVWLRQQDLUH WKH VWUXFWXUHG LQWHUYLHZ JXLGH ZDV XVHG WR FDUU\ RXWnWKH UHPDLQGHU RI WKH LQWHUYLHZ ZKLFK XVXDOO\ ODVWHG DQRWKHU ILIWHHQ WR WKLUW\ PLQXWHV $OO SDUWLFLn SDQWV ZHUH YHU\ FRRSHUDWLYH DQG ZHUH YHU\ ZLOOLQJ WR GLVFXVV WKHLU SHUFHSWLRQV ZLWK WKH UHVHDUFKHU

PAGE 68

7KH ILQGLQJV RI WKH TXHVWLRQQDLUH DQG WKH VWUXFWXUHG LQWHUYLHZ ZHUH FDOFXODWHG DQG DUUDQJHG LQWR WDEOH IRUP DQG DUH SUHVHQWHG LQ 7DEOHV 7KH GDWD FRQWDLQHG LQ HDFK RI WKH VL[ WDEOHV DUH GLVFXVVHG LQ WKH IROORZLQJ SDJHV ,Q 3DUW RI WKH TXHVWLRQQDLUH WKH UHVSRQGHQW ZDV LQVWUXFWHG WR UDQN RUGHU D OLVW RI VL[ DGPLQLVWUDWLYH FDWHJRULHV DFFRUGLQJ WR WKH LPSRUWDQFH WKH\ DWWULEXWHG WR HDFK RI WKHP DV DQ H[HFXWLYH IXQFWLRQ VHH 7DEOH f 7KH\ ZHUH WKHQ LQVWUXFWHG WR UDQN RUGHU WKH VSHFLILF DFWLYLWLHV OLVWHG ZLWKLQ HDFK RI WKH FDWHJRULHV VHH 7DEOH f 6SDFH ZDV DOVR GHVLJQDWHG IRU DQ\ DFWLYLWLHV WKH UHVn SRQGHQWV ZDQWHG WR DGG WR WKH TXHVWLRQQDLUH 3ODQQLQJ ZDV VHHQ DV WKH PRVW LPSRUWDQW DGPLQLVWUDWLYH FDWHJRU\ E\ SHUFHQW RI WKH SDUWLFLSDQWV WKHUHE\ UDQNLQJ LW QXPEHU RQH DPRQJ WKH VL[ FDWHJRULHV 7KH LPSRUWDQFH DWWULEXWHG WR SODQQLQJ DV DQ H[HFXWLYH IXQFWLRQ ZDV PRUH FOHDUO\ GHPRQVWUDWHG E\ WKH IDFW WKDW SHUFHQW RI WKH SDUWLFLSDQWV UDQNHG LW DV QXPEHU RQH RU WZR DQG SHUFHQW UDQNHG LW ZLWKLQ WKH WRS WKUHH FDWHJRULHV 7KH FDWHJRU\ DOVR UHFHLYHG WKH KLJKHVW PHDQ f DQG PHGLDQ f UDQNLQJV 7KH DGPLQLVWUDWLYH FDWHJRU\ RI ILQDQFH ZDV UDQNHG VHFRQG ZLWK SHUFHQW RI WKH SDUWLFLSDQWV VHOHFWLQJ LW DV RQH RI WKH WRS WZR FDWHJRULHV $OWKRXJK WKLV FDWHJRU\ ZDV UDQNHG KLJKO\ FRPSDUHG WR WKH RWKHU IRXU FDWHJRULHV LWV PHDQ UHVSRQVH RI DQG PHGLDQ UDQNLQJ RI DUH VLJQLILFDQWO\ ORZHU WKDQ WKH QXPEHU RQH UDQNHG FDWHJRU\ RI SODQQLQJ ,W LV DOVR LPSRUWDQW WR UHFRJQL]H WKDW

PAGE 69

7$%/( 5$1.,1* 2) $'0,1,675$7,9( &$7(*25,(6 $7 0,$0,'$'( &20081,7< &2//(*( $GPLQLVWUDWLYH &DWHJRU\ 5DQN 3RVLWLRQV 0HDQ 5HVSRQVH 0HGLDQ 0RGH I b I b I b I b I b I b 3ODQQLQJ )LQDQFH /HJLWLPL]DWLRQ ([WHUQDO 5HODWLRQV (GXFDWLRQDO /HDGHUVKLS (YDOXDWLRQ 1RWHI IUHTXHQF\ FQ &2

PAGE 70

r 7$%/( )81&7,216 5$1.(' :,7+,1 &$7(*25,(6 $7 0,$0,'$'( &20081,7< &2//(*( $GPLQLVWUDWLYH 5DQN 3RVLWLRQV 0HDQ 0HGLDQ 0RGH &DWHJRU\ 5HVSRQVH I b I b I b I b I b 3ODQQLQJ 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf )LQDQFH 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf FQ

PAGE 71

7$%/( /HJLWLPL]DWLRQ 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf ([WHUQDO 5HODWLRQV 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf &217,18(' 2 Z 2n} R

PAGE 72

7$%/( &217,18(' (GXFDWLRQDO /HDGHUVKLS 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf (YDOXDWLRQ 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf If 1RWH6HH $SSHQGL[ % IRU 6SHFLILF )XQFWLRQV URFQZUR r! A X UR

PAGE 73

SHUFHQW RI WKH SDUWLFLSDQWV UDQNHG ILQDQFH DV HLWKHU WKLUG RU IRXUWK ZLWKLQ WKH PLGGOHUDQJH LQ LPSRUWDQFH /HJLWLPL]DWLRQ RI WKH LQVWLWXWLRQVn SROLFLHV DQG GHFLVLRQV ZDV UDQNHG WKLUG DPRQJ WKH FDWHJRULHV ZLWK SHUFHQW RI WKH UHVn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

PAGE 74

RI HGXFDWLRQDO OHDGHUVKLS ZDV ILIWK SHUFHQWf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f DQG D IXWXUH RU ORQJUDQJH SODQQLQJf ZHUH UDQNHG D FORVH ILUVW DQG VHFRQG ZLWK PHDQ UHVSRQVHV RI DQG UHVSHFWLYHO\ $FWLYLW\ G ZDV UDQNHG ILUVW E\ SHUFHQW RI WKH UHVSRQGHQWV FRPSDUHG WR SHUFHQW IRU D $FWLYLW\ E SURJUDP H[SDQVLRQf ZDV UDQNHG DV HLWKHU VHFRQG WKLUG LQ LPSRUWDQFH E\ SHUFHQW RI WKH UHVSRQGHQWV DQG KDG D

PAGE 75

PHDQ UHVSRQVH RI 7KH PHGLDQ UHVSRQVH IRU E ZDV ZKLFK PRUH DFFXUDWHO\ H[HPSOLILHV WKH PRGH UHVSRQVH RI WKUHH $FWLYLW\ F SODQQLQJ RI SK\VLFDO IDFLOLWLHVf ZDV UDQNHG WKH ORZHVW RI WKH IRXU DFWLYLWLHV ZLWK SHUFHQW RI WKH UHVSRQGHQWV SODFLQJ LW DV HLWKHU WKLUG RU IRXUWK 7KH PHGLDQ UHVSRQVH IRU F ZDV ZKLFK LQGLFDWHV LWV UHODWLYH ORZ UDQNLQJ )LQDQFH $FWLYLW\ G SULRULW\ UDQNLQJ RI UHVRXUFH DOORFDWLRQ OHYHOVf ZDV E\ IDU WKH KLJKHVW UDQNHG DFWLYLW\ LQ WKH FDWHJRU\ ZLWK SHUFHQW RI WKH UHVSRQGHQWV SODFLQJ LW DV QXPEHU RQH RU WZR LQ LPSRUWDQFH 7KH PHDQ UHVSRQVH RI LV UHIOHFWLYH RI WKH SHUFHQW QXPEHU RQH UDQNLQJ 7KH DFWLYLW\ UDQNHG VHFRQG ZDV D EXGJHW SUHSDUDWLRQf ZLWK SHUFHQW RI WKH UHVSRQGHQWV UDQNLQJ LW DV HLWKHU QXPEHU RQH RU WZR LQ LPSRUWDQFH +RZHYHU WKH ODUJHVW VLQJOH UDQNLQJ RI WKH DFWLYLW\ ZDV SHUFHQW LQ WKH WKLUG SRVLWLRQ 7KLV ODUJH WKLUG SODFH UDQNLQJ FRQWULEXWHG JUHDWO\ WRZDUG EULQJLQJ WKH PHDQ UHVSRQVH GRZQ WR DQG WKH PHGLDQ UDQNLQJ WR $FWLYLW\ F GLVWULFW EXGJHW DGPLQLVWUDWLRQf ZDV UDQNHG WKLUG ZLWK SHUFHQW RI WKH UHVSRQGHQWV SODFLQJ LW DV HLWKHU VHFRQG RU WKLUG LQ LPSRUWDQFH 7KH PRVW IUHTXHQW UDQNLQJ ZDV WKLUG SHUFHQWf DOWKRXJK WKH PHDQ UHVSRQVH ZDV D OLWWOH KLJKHU DW %\ IDU WKH ORZHVW UDQNHG DFWLYLW\ ZDV E IXQG UDLVLQJf ZLWK SHUFHQW RI WKH UHVSRQGHQWV SODFLQJ LW DQ QXPEHU IRXU 7KH PHDQ UHVSRQVH UHIOHFWV WKH ODUJH IRXUWK SODFH UDQNLQJ

PAGE 76

/HJLWLPL]DWLRQ $FWLYLWLHV E FRQVWLWXHQW SDUWLFLSDWLRQ LQ JRYHUQDQFHf DQG G LPSURYHPHQW RI LQVWLWXWLRQDO FRPPXQLFDWLRQ QHWZRUNf ZHUH UDQNHG FORVHO\ DW ILUVW DQG VHFRQG ZLWK PHDQ UHVSRQVHV RI DQG UHVSHFWLYHO\ $OWKRXJK DFWLYLW\ G OHG LQ ILUVW SODFH UDQNLQJV WR SHUFHQW DFWLYLW\ E PDLQWDLQHG WKH RYHUDOO HGJH LQ SHUFHQWDJH RI UDQNLQJ LQ WKH WRS WZR SODFHV E\ WR SHUFHQW $FWLYLW\ D RSHQQHVV LQ WKH GHFLVLRQPDNLQJ SURFHVVf UDQNHG WKLUG DPRQJ WKH IRXU DFWLYLWLHV ZLWK SHUFHQW RI WKH UHVSRQGHQWV JLYLQJ LW D UDQNLQJ RI ILUVW RU VHFRQG +RZHYHU WKH DFWLYLW\ ZDV UDQNHG WKLUG RU IRXUWK E\ SHUFHQW RI WKH SDUWLFLSDQWV WKHUHE\ UDLVLQJ WKH PHDQ UHVSRQVH WR DQG WKH PHGLDQ UDQNLQJ WR 7KH ODVW SODFH UDQNLQJ LQ WKLV FDWHJRU\ ZDV DFWLYLW\ F LPSURYLQJ KXPDQ UHODWLRQV DQG GLVWULFW PRUDOHf ZLWK SHUFHQW $OWKRXJK WKH PRVW IUHTXHQW UDQNLQJ ZDV WKLUG SHUFHQWf WKH PHGLDQ UDQNLQJ RI LV UHIOHFWLYH RI WKH SHUFHQW ODVW SODFH UDQNLQJ ([WHUQDO 5HODWLRQV $FWLYLW\ E LQYROYHPHQW ZLWK VWDWH DJHQFLHV DQG OHDGHUVf ZDV FOHDUO\ UDQNHG WKH KLJKHVW ZLWK SHUFHQW RI WKH UHVSRQGHQWV SODFLQJ LW LQ ILUVW RU VHFRQG LQ LPSRUWDQFH 7KH PHDQ UHVSRQVH DQG PHGLDQ UDQNLQJ RI DFWLYLW\ E DOVR SODFH LW IDU DERYH WKH RWKHU IRXU DFWLYLWLHV LQ LWV SHUFHLYHG LPSRUWDQFH WR WKH UHVSRQGHQWV $FWLYLW\ F LQYROYHPHQW ZLWK FRPPXQLW\ JURXSVf ZDV UDQNHG VHFRQG ZLWK SHUFHQW RI WKH UHVSRQGHQWV SODFLQJ LW LQ HLWKHU

PAGE 77

ILUVW RU VHFRQG SODFH ,W LV VLJQLILFDQW WR QRWH KRZHYHU WKDW SHUFHQW DOVR UDQNHG LW DV HLWKHU VHFRQG RU WKLUG LQ LPSRUWDQFH 7KLV SKHQRPHQD LV GXH WR WKH ELPRGDO GLVWULEXWLRQ RI WKH UDQNLQJV 7KH PHDQ UHVSRQVH RI DQG PHGLDQ UDQNLQJ RI PDNH WKLV DFWLYLW\ D VROLG VHFRQG LQ LWV LPSRUWDQFH DV SHUFHLYHG E\ WKH UHVSRQGHQWV $FWLYLWLHV G LQYROYHPHQW ZLWK IHGHUDO DJHQFLHV DQG OHDGHUVf DQG D LQYROYHPHQW ZLWK DFFUHGLWLQJ DJHQFLHVf ZHUH UDQNHG FORVHO\ DW WKLUG DQG IRXUWK ZLWK PHDQ UHVSRQVHV RI DQG SHUFHQW UHVSHFWLYHO\ $OWKRXJK D OHG LQ FRPELQHG ILUVW DQG VHFRQG SODFH UDQNLQJV WR SHUFHQW G PDLQWDLQHG D VPDOO HGJH LQ PHGLDQ UDQNLQJ WR 7KLV UHVXOW LV GXH FKLHIO\ WR WKH ODUJH SHUFHQWf ILIWK SODFH UDQNLQJ UHFHLYHG E\ DFWLYLW\ D $FWLYLW\ H LQYROYHPHQW ZLWK SURIHVVLRQDO DVVRFLDWLRQVf ZDV E\ IDU WKH OHDVW LPSRUWDQW DFWLYLW\ LQ WKLV FDWHJRU\ LQ WKH SHUn FHSWLRQ RI WKH UHVSRQGHQWV $OWKRXJK WKH PHGLDQ UHVSRQVH ZDV SHUFHQW RI WKH UHVSRQGHQWV UDQNHG WKH DFWLYLW\ LQ ODVW SODFH 7KH PHGLDQ UDQNLQJ f LV WKH PRVW DFFXUDWH LQ WKH GHVFULSWLRQ RI WKH UDQNLQJ RI WKLV DFWLYLW\ (GXFDWLRQDO /HDGHUVKLS $FWLYLWLHV D SUHVHQWLQJ SROLF\ UHFRPPHQGDWLRQV WR WKH ERDUGf E LQLWLDWLRQ RI HGXFDWLRQDO SROLF\f DQG F SURYLGLQJ PRWLYDn WLRQDO OHDGHUVKLS WR IDFXOW\ DQG VWDIIf DUH DOO FORVH LQ WKH WRS WKUHH UDQNLQJV ZLWK PHDQ UHVSRQVHV RI DQG UHVSHFWLYHO\ $OWKRXJK DFWLYLW\ D KDG WKH ODUJHVW QXPEHU RI

PAGE 78

ILUVW SODFH UDQNLQJV ZLWK SHUFHQW DFWLYLW\ E KDG D JUHDWHU SHUFHQWDJH RI FRPELQHG ILUVW DQG VHFRQG SODFH UDQNLQJV ZLWK 7KH PHGLDQ UDQNLQJV RI WKHVH WKUHH FDWHJRULHV LV UHIOHFWLYH RI WKH FORVHQHVV RI WKHLU DWWULEXWHG LPSRUWDQFH ,W LV VLJQLILFDQW WR QRWH WKDW DFWLYLW\ D DOVR KDG WKH VHFRQG JUHDWHVW SHUFHQWDJH RI ODVW SODFH UDQNLQJV ZLWK $FWLYLW\ G DFWLYLWLHV ZLWK VWXGHQWVf ZDV UDQNHG ODVW E\ SHUFHQW RI WKH UHVSRQGHQWV ZLWK D PHGLDQ UDQNLQJ RI SHUFHQW 7KH PHDQ UHVSRQVH DOVR LOOXVWUDWHV WKH QHJDWLYHO\ VNHZHG GLVWULEXWLRQ RI WKLV DFWLYLW\ DV SHUFHLYHG E\ WKH UHVSRQGHQWV (YDOXDWLRQ $FWLYLW\ G DVVHVVPHQW RI SUREOHPVf UHFHLYHG WKH KLJKHVW RYHUDOO UDQNLQJ LQ WKLV FDWHJRU\ ZLWK SHUFHQW RI WKH UHVn SRQGHQWV SODFLQJ LW HLWKHU ILUVW RU VHFRQG $OWKRXJK H PDNLQJ MXGJPHQWV FRQFHUQLQJ H[WHUQDO IRUFHVf UHFHLYHG D JUHDWHU QXPEHU RI ILUVW SODFH UDQNLQJV ZLWK SHUFHQW WKH FRPELQHG ILUVW DQG VHFRQG SODFH UDQNLQJ ZDV RQO\ 7KH IRXUWK DQG ILIWK SODFH UDQNLQJV RI DFWLYLW\ H ZHUH DOVR KLJK ZLWK D FRPELQHG SHUFHQWDJH RI 7KH JUHDWHU GLVSHUVLRQ RI UDQNLQJV LQ DFWLYLW\ H DV FRPSDUHG WR G DUH UHIOHFWHG LQ WKHLU PHDQ UHVSRQVHV RI LQ Gf DQG LQ Hf DV ZHOO DV WKHLU PHGLDQ UDQNLQJV RI DQG UHVSHFWLYHO\ $FWLYLWLHV D HYDOXDWLYH MXGJPHQWV UHJDUGLQJ LQVWLWXWLRQDO SURJUHVVf DQG E MXGJPHQWV RQ LQVWLWXWLRQDO HIILFLHQF\f ZHUH

PAGE 79

UDQNHG D YHU\ FORVH ILUVW DQG VHFRQG ZLWK LGHQWLFDO PHDQ UHVSRQVHV RI DQG PHGLDQ UDQNLQJV RI DQG UHVSHFWLYHO\ 7KH FORVH UDQNLQJV RI WKHVH DFWLYLWLHV LV IXUWKHU LOOXVWUDWHG E\ WKH FRPELQHG ILUVW VHFRQG DQG WKLUG UDQNLQJV LQ ZKLFK DFWLYLW\ E KROGV D VOLJKW HGJH ZLWK WR SHUFHQW $FWLYLW\ F MXGJPHQWV RQ SHUVRQQHO PDWWHUVf ZDV UDQNHG ODVW E\ SHUFHQW RI WKH UHVSRQGHQWV ZLWK WKLV LQFUHDVLQJ WR SHUFHQW ZKHQ FRPELQHG ZLWK WKH IRXUWK SODFH UDQNLQJ ,Q 3DUW ,, RI WKH TXHVWLRQQDLUH WKH UHVSRQGHQWV ZHUH LQVWUXFWHG WR HVWLPDWH WKH SHUFHQW RI WLPH WKH\ EHOLHYHG WKH 3UHVLGHQW VSHQGV GHDOLQJ ZLWK PDWWHUV ZLWKLQ HDFK RI WKH VL[ DGPLQLVWUDWLYH FDWHn JRULHV VHH 7DEOH f 7KH SDUWLFLSDQWV ZHUH IXUWKHU LQVWUXFWHG WR HVWLPDWH ZKDW SHUFHQW RI WKH 3UHVLGHQWnV WLPH LV VSHQW GHDOLQJ ZLWK HDFK RI WKH VSHFLILF IXQFWLRQV OLVWHG ZLWKLQ HDFK FDWHJRU\ VHH 7DEOH f )RU FODULILFDWLRQ WKH UHVSRQGHQWV ZHUH WROG WKDW WKH WRWDO DPRXQW RI WLPH VSHQW LQ DOO RI WKH DFWLYLWLHV ZLWKLQ DQ\ FDWHJRU\ ZDV HTXDO WR SHUFHQW RI WKH H[HFXWLYHnV WLPH VSHQW LQ WKDW FDWHJRU\ ,Q RUGHU WR PDNH LQWHUSUHWDWLRQ RI WKH WLPH HVWLPDWHV PRUH FRPSDUDEOH WKH\ DUH UHFRUGHG LQ 7DEOHV DQG ZLWKLQ LQWHUYDOV RI WHQ SHUFHQW HDFK 7KH UHVSRQGHQWVn HVWLPDWHV RI WKH DPRXQW RI WLPH VSHQG E\ WKH 3UHVLGHQW LQ PDWWHUV UHODWLQJ WR HDFK RI WKH VL[ FDWHJRULHV FDQ FOHDUO\ EH XQGHUVWRRG E\ SODFLQJ WKHP LQ HQODUJHG WLPH LQWHUYDOV VHH )LJXUH f

PAGE 80

b b b &DWHJRU\ 3HUFHQW &DWHJRU\ 3HUFHQW &DWHJRU\ 3HUFHQW )LQDQFH 3ODQQLQJ (YDOXDWLRQ /HJLWLPL]DWLRQ )LQDQFH /HJLWLPL]DWLRQ 3ODQQLQJ /HJLWLPL]DWLRQ )LQDQFH (YDOXDWLRQ ([WHUQDO 5HODWLRQV (GXFDWLRQDO ([WHUQDO 5HODWLRQV (GXFDWLRQDO /HDGHUVKLS (GXFDWLRQDO /HDGHUVKLS 3ODQQLQJ /HDGHUVKLS (YDOXDWLRQ ([WHUQDO 5HODWLRQV )LJXUH 3HUFHQW RI 5HVSRQVHV 3HU &DWHJRU\ ZLWKLQ (QODUJHG ,QWHUYDOV &'

PAGE 81

7$%/( 3(5&(17 2) &+,() (;(&87,9(n6 7,0( 63(17 ,1 ($&+ &$7(*25< $7 0,$0,'$'( &20081,7< &2//(*( $GPLQLVWUDWLYH &DWHJRU\ 3HUFHQW RI 7LPH ,QWHUYDOV I O I b I b I b I b I b I b I b I b I b I b 3ODQQLQJ )LQDQFH /HJLWLPL]DWLRQ ([WHUQDO 5HODWLRQV (GXFDWLRQDO /HDGHUVKLS (YDXDWLRQ

PAGE 82

)LJXUH FOHDUO\ VKRZV WKDW SHUFHQW RI DOO UHVSRQVHV LQ HDFK RI WKH VL[ FDWHJRULHV DUH ZLWKLQ WKH SHUFHQW HVWLPDWLRQ LQWHUYDO ,W DOVR VKRZV WKDW D JUHDW PDMRULW\ SHUFHQWf RI DOO UHVSRQVHV ZHUH ZLWKLQ WKH SHUFHQW LQWHUYDO 2QO\ WKUHH PDMRULW\ HVWLPDWHV ZHUH DFKLHYHG DPRQJ DOO WKH LQWHUYDOV RI DOO WKH FDWHJRULHV 7KHVH ZHUH SODQQLQJ ZLWK SHUFHQW ZLWKLQ WKH SHUFHQW LQWHUYDO ILQDQFH ZLWK SHUFHQW ZLWKLQ WKH SHUFHQW LQWHUYDO DQG HYDOXDWLRQ ZLWK SHUFHQW ZLWKLQ WKH SHUFHQW LQWHUYDO %DVHG RQ WKH HQODUJHG LQWHUYDO RI SHUFHQW DQG RYHU WKH IROORZLQJ SHUFHLYHG FDWHJRU\ WLPH UDQNLQJV HPHUJH IURP 7DEOH LQ GHVFHQGLQJ RUGHU RI HVWLPDWHG WLPHf ([WHUQDO 5HODWLRQV b 3ODQQLQJ b (GXFDWLRQDO /HDGHUVKLS b )LQDQFH b /HJLWLPL]DWLRQ b (YDOXDWLRQ b ,Q RUGHU WR FOHDUO\ XQGHUVWDQG WKH ILQGLQJV SUHVHQWHG LQ 7DEOH HDFK DGPLQLVWUDWLYH FDWHJRU\ LV GLVFXVVHG VHSDUDWHO\ ,Q WKH GLVFXVVLRQ RI HDFK FDWHJRU\ HDFK VSHFLILF DFWLYLW\ ZLOO EH UDQNHG DFFRUGLQJ WR WKH WZR RU PRUH FRQVHFXWLYH LQWHUYDOV WKDW PXVW EH JURXSHG WR REWDLQ D PDMRULW\ RI HVWLPDWHV IRU WKDW SDUWLFXODU DFWLYLW\ 3ODQQLQJ 6HH 7DEOH f $FWLYLW\ G VHWWLQJ RSHUDWLRQDO SULRULWLHVf ZDV UDQNHG KLJKHVW ZLWK SHUFHQW RI WKH HVWLPDWHV IDOOLQJ ZLWKLQ WKH SHUFHQW

PAGE 83

7$%/( 3(5&(17 2) &+,() (;(&87,9(n6 7,0( 63(17 21 )81&7,216 :,7+,1 &$7(*25,(6 $7 0,$0,'$'( &20081,7< &2//(*( $GPLQLVWUDWLYH &DWHJRU\ 3HUFHQW RI 7LPH ,QWHUYDOV I b I b I b I b I b I b I b I b I b I b I b 3ODQQLQJ )XQFWLRQV Df Ef Ff Gf Hf )LQDQFH )XQFWLRQV Df Ef Ff Gf Hf

PAGE 84

7$%/( &217,18(' /HJLWLPL]DWLRQ )XQFWLRQV Df Ef Ff Gf Hf ([WHUQDO 5HODWLRQV )XQFWLRQV Df Ef Ff Gf Hf If

PAGE 85

7$%/( &217,18(' (GXFDWLRQDO /HDGHUVKLS UXQX/ OXULE Df Ef Ff Gf Hf (YDOXDWLRQ )XQFWLRQV Df Ef Ff Gf Hf If 1RWH6HH $SSHQGL[ % IRU 6SHFLILF )XQFWLRQV

PAGE 86

LQWHUYDO $FWLYLWLHV E SURJUDP H[SDQVLRQf DQG D IXWXUH RU ORQJUDQJH SODQQLQJf ERWK IHOO ZLWKLQ WKH SHUFHQW LQWHUYDO DQG ZHUH UDQNHG D FORVH VHFRQG DQG WKLUG ZLWK DQG SHUFHQW UHVSHFWLYHO\ $FWLYLW\ F SODQQLQJ RI SK\VLFDO IDFLOLWLHVf ZDV UDQNHG ODVW ZLWK SHUFHQW RI WKH HVWLPDWHV O\LQJ ZLWKLQ WKH SHUFHQW LQWHUYDO )LQDQFH 6HH 7DEOH f $FWLYLWLHV G SULRULW\ UDQNLQJ RI UHVRXUFH DOORFDWLRQ UDQNLQJf DQG D EXGJHW SUHSDUDWLRQf ZHUH UDQNHG D YHU\ FORVH ILUVW DQG VHFRQG %RWK DFWLYLWLHV KDG WKH PDMRULW\ RI WKHLU UHVSRQVHV IDOO ZLWKLQ WKH SHUFHQW LQWHUYDO ZLWK G UHFHLYLQJ DQG D UHFHLYLQJ SHUFHQW +RZHYHU DFWLYLW\ G KDG SHUFHQW RI LWV HVWLPDWHV IDOO ZLWKLQ WKH SHUFHQW LQWHUYDO WR RQO\ SHUFHQW IRU DFWLYLW\ D $FWLYLW\ F GLVWULFW EXGJHW DGPLQLVWUDWLRQf ZDV WKLUG ZLWK SHUFHQW RI LWV HVWLPDWHV ZLWKLQ WKH SHUFHQW LQWHUYDO $FWLYLW\ E IXQG UDLVLQJf ZDV UDQNHG ODVW ZLWK SHUFHQW RI LWV HVWLPDWHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO /HJLWLPL]DWLRQ 6HH 7DEOH f $FWLYLWLHV E FRQVWLWXHQW SDUWLFLSDWLRQ LQ JRYHUQDQFHf DQG G LPSURYHPHQW RI LQVWLWXWLRQDO FRPPXQLFDWLRQ QHWZRUNf ZHUH UDQNHG FORVH DW ILUVW DQG VHFRQG ERWK KDYLQJ D PDMRULW\ WR SHUFHQWf RI WKHLU HVWLPDWHV IDOO ZLWKLQ WKH SHUFHQW LQWHUYDO $FWLYLW\ E KROGV D VOLJKWO\ KLJKHU UDQNLQJ WKDQ G LQ WKH SHUFHQW LQWHUYDO WR f $FWLYLWLHV D RSHQQHVV LQ WKH GHFLVLRQ

PAGE 87

PDNLQJ SURFHVVf DQG F LPSURYLQJ KXPDQ UHODWLRQV DQG GLVWULFW PRUDOHf DUH DOVR FORVHO\ UDQNHG ZLWK ERWK KDYLQJ PDMRULWLHV WR f LQ WKH SHUFHQW LQWHUYDO $FWLYLW\ D LV UDQNHG WKLUG DKHDG RI DFWLYLW\ F GXH WR LWV KLJKHU UDQNLQJ WR f LQ WKH SHUFHQW LQWHUYDO ([WHUQDO 5HODWLRQV 6HH 7DEOH f $FWLYLWLHV E LQYROYHPHQW ZLWK VWDWH DJHQFLHV DQG OHDGHUVf DQG F LQYROYHPHQW ZLWK FRPPXQLW\ JURXSVf DUH UDQNHG YHU\ FORVH LQ WKH QXPEHU RQH DQG WZR SRVLWLRQV ERWK KDYLQJ PDMRULWLHV LQ WKH SHUFHQW LQWHUYDO ZLWK DQG SHUFHQW UHVSHFWLYHO\ $FWLYLW\ E KDV D VOLJKW DGYDQWDJH LQ WKH LQWHUYDOV RYHU SHUFHQW ZLWK SHUFHQW FRPSDUHG WR IRU DFWLYLW\ F $FWLYLW\ G LQYROYHPHQW ZLWK IHGHUDO DJHQFLHV DQG OHDGHUVf LV VROLGO\ LQ WKLUG SODFH ZLWK SHUFHQW RI LWV UHVSRQVHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO 7KLV DFWLYLW\ DOVR KDG D KLJK UDQNLQJ SHUFHQWf LQ WKH SHUFHQW LQWHUYDO $FWLYLW\ H LQYROYHPHQW ZLWK SURIHVVLRQDO DVVRFLDWLRQVf ZDV IRXUWK IROORZHG FORVHO\ E\ D LQYROYHPHQW ZLWK DFFUHGLWLQJ DJHQFLHVf %RWK DFWLYLWLHV KDG ODUJH PDMRULWLHV LQ WKH SHUFHQW LQWHUYDO ZLWK D KDYLQJ SHUFHQW DQG DFWLYLW\ H UHFRUGLQJ SHUFHQW (GXFDWLRQDO /HDGHUVKLS 6HH 7DEOH f $FWLYLW\ D SUHVHQWLQJ SROLF\ UHFRPPHQGDWLRQV WR WKH ERDUGf ZDV JLYHQ WKH KLJKHVW UDQNLQJ E\ WKH UHVSRQGHQWV ZLWK SHUFHQW RI WKH UHVSRQVHV ZLWK WKH SHUFHQW LQWHUYDO $OVR VLJQLILFDQW

PAGE 88

LV WKH IDFW WKDW RI WKH UHVSRQGHQWV UDQNHG nD ZLWKLQ WKH SHUFHQW LQWHUYDO $FWLYLW\ E LQLWLDWLRQ RI HGXFDWLRQDO SROLF\f ZDV UDQNHG VHFRQG ZLWK SHUFHQW RI WKH UHVSRQVHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO DQG SHUFHQW ZLWKLQ WKH SHUFHQW LQWHUYDO $FWLYLW\ F SURYLGLQJ PRWLYDWLRQDO OHDGHUVKLS WR IDFXOW\ DQG VWDIIf ZDV LQ WKLUG SODFH LQ WKH UDQNLQJ ZLWK SHUFHQW RI LWV UHVSRQVHV ZLWKLQ WKH SHUFHQW LQWHUYDO 7KH PRVW IUHTXHQWO\ FKRVHQ LQWHUYDO IRU DFWLYLW\ F ZDV WKH SHUFHQW LQWHUYDO ZLWK D SHUFHQW UHVSRQVH UDWH $FWLYLW\ G DFWLYLWLHV ZLWK VWXGHQWVf ZDV SODFHG ODVW LQ WKH FDWHJRU\ ZLWK SHUFHQW RI WKH UHVSRQVHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO (YDOXDWLRQ 6HH 7DEOH f $FWLYLWLHV D HYDOXDWLYH MXGJPHQWV UHJDUGLQJ LQVWLWXWLRQDO SURJUHVVf DQG E MXGJPHQWV RQ LQVWLWXWLRQDO HIILFLHQF\f UDQNHG D FORVH ILUVW DQG VHFRQG ERWK UHFHLYLQJ SHUFHQW RI WKHLU UHVSRQVHV LQ WKH SHUFHQW LQWHUYDO +RZHYHU DFWLYLW\ D ZDV UDQNHG VOLJKWO\ KLJKHU ZLWK D WR SHUFHQW HGJH RYHU E LQ WKH SHUFHQW DQG RYHU LQWHUYDOV $FWLYLWLHV H PDNLQJ MXGJPHQWV FRQFHUQLQJ H[WHUQDO IRUFHVf DQG G DVVHVVPHQW RI SUREOHPVf ZHUH OLNHZLVH UDQNHG YHU\ FORVHO\ ZLWK ERWK PDMRULW\ UHVSRQVHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO DOWKRXJK DFWLYLW\ G OHG LQ SHUFHQWDJH RI UHVSRQVHV ZLWK WR IRU DFWLYLW\ H +RZHYHU DFWLYLW\ H ZDV JLYHQ WKH WKLUG SODFH UDQNLQJ DQG G WKH IRXUWK EDVHG RQ LWV KLJKHU SHUFHQWDJH

PAGE 89

WR f RI UHVSRQVHV DERYH WKH SHUFHQW LQWHUYDO $FWLYLW\ F MXGJPHQWV RQ SHUVRQQHO PDWWHUVf SURGXFHG D VROLG ODVW SODFH UDQNLQJ ZLWK SHUFHQW RI LWV UHVSRQVH IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO ,Q 3DUW ,, RI WKH 6WUXFWXUHG ,QWHUYLHZ *XLGH HDFK SDUWLFLSDQW ZDV UHDG D OLVW RI WZHQW\IRXU LWHPV HDFK LWHP UHSUHVHQWLQJ RQH IXQFWLRQDO UROH WKDW LV IUHTXHQWO\ VLWHG DV DSSOLFDEOH WR FRPPXQLW\ FROOHJH FKLHI H[HFXWLYH RIILFHUV VHH $SSHQGL[ $f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n FHLYHG DV D GLUHFW IXQFWLRQ RI WKH 3UHVLGHQW RU RQH WKDW LV GHOHJDWHG ,WHP 'HWHUPLQH WKH OLEUDU\ QHHGV ZLWKLQ WKH GLVWULFW 7KLV IXQFWLRQ ZDV FOHDUO\ SHUFHLYHG DV GHOHJDWHG DV HYLGHQFHG E\ WKH SHUFHQW IUHTXHQF\ RI UHVSRQVH IRU FKRLFH QXPEHU 1R SDUWLFLSDQWV SHUFHLYHG WKLV LWHP DV D IXQFWLRQ RI WKH 3UHVLGHQW ,WHP $WWHQG VWDWH DQG QDWLRQDO HGXFDWLRQDO RUJDQL]DWLRQ PHHWLQJV DQG FRQIHUHQFHV 7KLV LWHP GLG QRW SUHVHQW D FOHDU PDMRULW\ RI UHVSRQVHV IRU DQ\

PAGE 90

7$%/( '(*5(( 2) (;(&87,9( ,192/9(0(17 ,1 6(/(&7(' )81&7,216 $7 0,$0,'$'( &20081,7< &2//(*( 5HVSRQVH &DWHJRULHV DQG DQG $OO 4XHVWLRQ 1XPEHU I b I b I b I b I b I b 1RWH 6HH $SSHQGL[ $ IRU 4XHVWLRQV

PAGE 91

Q RI WKH WKUHH FKRLFHV ,QVWHDG SHUFHQW RI WKH UHVSRQGHQWV SHUFHLYHG WKLV LWHP DV D IXQFWLRQ RI WKH 3UHVLGHQW ZKLOH SHUFHQW EHOLHYHG LW ZDV D GHOHJDWHG UHVSRQVLELOLW\ +RZHYHU SHUFHQW DOVR EHOLHYHG WKDW LW ZDV ERWK WKH 3UHVLGHQWn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n GHQWLDO $Q HYHQ ODUJHU SHUFHQW f SHUFHLYHG WKH LWHP DV ERWK GLUHFW DQG GHOHJDWHG ,WHP 3URYLGH PDWHULDOV DQG HTXLSPHQW IRU WKH LQVWUXFWLRQDO SURJUDPV RI WKH GLVWULFW 1RQH RI WKH UHVSRQGHQWV SHUFHLYHG WKLV DV D GLUHFW 3UHVLGHQWLDO IXQFWLRQ 7KH JUHDW PDMRULW\ SHUFHQWf RI WKH UHVSRQVHV WR WKLV LWHP LQGLFDWHG WKDW LW ZDV QRW DVVRFLDWHG ZLWK GLUHFW 3UHVLn GHQWLDO IXQFWLRQV

PAGE 92

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f DQG QXPEHU SHUFHQWf ,WHP ([SODLQ WKH ERDUG SROLF\ WR FROOHJH DQG GLVWULFW VWDII $OWKRXJK QR DEVROXWH PDMRULW\ ZDV DFKLHYHG LQ DQ\ RI WKH FKRLFH FDWHJRULHV WKH GLUHFW UHVSRQVLELOLW\ FKRLFH ZDV WKH KLJKHVW ZLWK SHUFHQW $QRWKHU SHUFHQW EHOLHYHG WKH LWHP ZDV ERWK D GLUHFW DQG GHOHJDWHG IXQFWLRQ 7KH SHUFHQW RI UHVSRQGHQWV WHQGLQJ WR YLHZ WKH LWHP DV D 3UHVLGHQWLDO IXQFWLRQ LV RIIVHW VRPHZKDW E\ WKH DJJUHJDWH SHUFHQW f RI WKRVH QRW VHHLQJ LW DV D IXQFWLRQ ,WHP 'HIHQG IDFXOW\ PHPEHUV WR WKH ERDUG ZKHQ DSSURSULDWH RU QHFHVVDU\ 7KH UHVSRQVHV WR WKLV LWHP ZHUH UDWKHU GLVSHUVHG ZLWK SHUFHQW RI WKH UHVSRQGHQWV UDQNLQJ LW DV D GLUHFW IXQFWLRQ SHUFHQW DV D GHOHJDWHG IXQFWLRQ DQG SHUFHQW DV ERWK

PAGE 93

,WHP 'HYHORS DQG VXSHUYLVH D SURJUDP ZKLFK IRVWHUV DQG HQVXUHV D GHVLUDEOH FOLPDWH IRU ZRUNLQJ UHODWLRQV ZLWKLQ WKH GLVWULFW 7KLV ZDV FOHDUO\ UDQNHG DV D GHOHJDWHG IXQFWLRQ ZLWK SHUFHQW RI WKH UHVSRQVHV 2QO\ SHUFHQW RI WKH UHVSRQGHQWV YLHZHG WKLV DV DQ\ GLUHFW FRQFHUQ WR WKH SUHVLGHQW ,WHP 'HYHORS D SURJUDP RI FRRUGLQDWLRQ ZLWK IRXU\HDU FROOHJHV $ PDMRULW\ SHUFHQWf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

PAGE 94

,WHP &RPSLOH UHTXHVWV IRU VXSSOLHV DQG HTXLSPHQW IRU EXGJHWDU\ FRQVLGHUDWLRQ 7KLV IXQFWLRQ ZDV QRW SHUFHLYHG DV D GLUHFW 3UHVLGHQWLDO UHVn SRQVLELOLW\ E\ DQ\ RI WKH SDUWLFLSDQWV $OWKRXJK DOPRVW D WKLUG SHUFHQWf RI WKHP UDQNHG WKH IXQFWLRQ DV GHOHJDWHG WKH PDMRULW\ RI SHUFHQW SODFHG LW IDU UHPRYHG IURP WKH 3UHVLGHQWnV IXQFWLRQV ,WHP )RUPXODWH FRPPXQLW\ FROOHJH SROLF\ IRU WKH GLVWULFW 7KLV IXQFWLRQ SURGXFHG RQH RI WKUHH GLVWULEXWLRQV ZLWKLQ ZKLFK WKH IXQFWLRQ ZDV GHVLJQDWHG DV 3UHVLGHQWLDO E\ D PDMRULW\ SHUFHQWf RI WKH SDUWLFLSDQWV 7KLV SHUFHSWLRQ LV VWUHQJWKHQHG E\ WKH SHUFHQW WKDW GHVLJQDWHG WKH IXQFWLRQ DV ERWK GLUHFW DQG GHOHJDWHG ,WHP 'HVLJQ D SURJUDP RI FRXQVHOLQJ DQG JXLGDQFH IRU WKH GLVWULFW ,WHP 'HYHORS SXEOLFLW\ PDWHULDOV IRU WKH GLVWULFW 7KHVH LWHPV ZHUH VLPLODU LQ WKDW QHLWKHU SURGXFHG DQ\ UHVSRQVHV LQ WKH FDWHJRU\ RI GLUHFW 3UHVLGHQWLDO UHVSRQVLELOLW\ ,QVWHDG ERWK IXQFWLRQV ZHUH UDQNHG DV HLWKHU GLUHFWO\ GHOHJDWHG DQG SHUFHQW UHVSHFWLYHO\f RU RI OLWWOH FRQFHUQ WR WKH 3UHVLGHQW ,WHP 'HWHUPLQH ZKDW FRPPXQLW\ SUHVVXUHV DIIHFW WKH HGXFDWLRQDO SURJUDP RI WKH GLVWULFW 7KLV ZDV FOHDUO\ SHUFHLYHG WR EH D 3UHVLGHQWLDO IXQFWLRQ ZLWK SHUFHQW FKRRVLQJ LW DV D GLUHFW IXQFWLRQ DQG DQRWKHU SHUFHQW DV ERWK GLUHFW DQG GHOHJDWHG

PAGE 95

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n SDQW ZDV DVNHG VHYHQ GLVFXVVLRQ W\SH TXHVWLRQV FRQFHUQLQJ WKHLU SHUFHSWLRQV RI WKH UROHV DQG IXQFWLRQV RI WKH 3UHVLGHQW DW 0LDPL 'DGH &RPPXQLW\ &ROOHJH 7KH SDUWLFLSDQWV ZHUH HQFRXUDJHG WR VSHDN RSHQO\ DERXW WKHLU SHUFHSWLRQV DQG WR DVN IRU FODULILFDWLRQ RU H[SODQDWLRQ LI QHFHVVDU\ 7KH UHVHDUFKHU UHFHLYHG FRPSOHWH FRRSHUDn WLRQ IURP DOO RI WKH SDUWLFLSDQWV

PAGE 96

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f 7KH JUHDWHVW IUHTXHQF\ DQVZHUV ZHUH &KLHI H[HFXWLYH$GPLQLVWUDWRU IDFLOLWDWH WKH HIILFLHQW DQG HIIHFWLYH RSHUDWLRQ RI WKH FROOHJH E\ PDQDJLQJ LWV DFWLYLWLHV SHUFHQWf 3ROLWLFLDQ D PDQLSXODWRU WR JDLQ QHHGHG VXSSRUW DQG UHVRXUFHV IRU WKH FROOHJH SHUFHQWf (GXFDWLRQDO OHDGHU SURYLGHV PRWLYDWLRQ DQG LQVWLWXWLRQDO GLUHFWLRQ E\ EHLQJ DZDUH RI QHHGV DQG SUREOHP VROXWLRQV SHUFHQWf 2QH LPSRUWDQW UHVSRQVH DUHD SHUWDLQHG WR WKH 3UHVLGHQWnV IXQFWLRQLQJ ZLWK WKH %RDUG RI 7UXVWHHV $OWKRXJK IRXUWK LQ IUHTXHQF\ RQO\ SHUFHQW RI WKH UHVSRQGHQWV SHUFHLYHG WKLV UHODWLRQVKLS DV GHVFULSWLYH RI WKH 3UHVLGHQWVn RYHUDOO UROH 4XHVWLRQ :KDW LQ \RXU RSLQLRQ LV WKH PRVW LPSRUWDQW IXQFWLRQ WKH 3UHVLGHQW QRZ SHUIRUPV" 7KLV TXHVWLRQ IDLOHG WR DFKLHYH D PDMRULW\ UHVSRQVH RQ DQ\ RI WKH DQVZHUV DOWKRXJK

PAGE 97

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n

PAGE 98

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fr

PAGE 99

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f &RPPXQLW\ WKDW \RX EHOLHYH FRQWULEXWH PRUH WKDQ RWKHU FRPSRQHQWV WRZDUG WKH VXFFHVVIXO DFFRPSOLVKPHQWV RI WKH GLVWULFW" ,I \HV WKHQ FRXOG \RX UDQN WKHP" VW 0RVW ,PSRUWDQW 3UHVLGHQW )DFXOW\ &RPPXQLW\ /HDGHUV %RDUG *HQHUDO $GPLQLVWUDWLRQ QG 0RVW ,PSRUWDQW %RDUG RI 7UXVWHHV 3UHVLGHQW *HQHUDO $GPLQLVWUDWLRQ )DFXOW\ &2

PAGE 100

7$%/( &217,18(' UG 0RVW ,PSRUWDQW 3UHVLGHQW *HQHUDO $GPLQLVWUDWLRQ )DFXOW\ %RDUG &RPPXQLW\ WK 0RVW ,PSRUWDQW )DFXOW\ %RDUG *HQHUDO $GPLQLVWUDWLRQ 3UHVLGHQW &RPPXQLW\ $OO FRPSRQHQWV DUH LQWHUGHSHQGHQW DQG LQVHSDUDEOH ,Q \RXU RSLQLRQ LV WKH JRYHUQDQFH VWUXFWXUH RI WKH GLVWULFW FHQWUDOL]HG RU GHFHQWUDOL]HG" 3OHDVH FODULI\ \RXU GHILQLWLRQ %RWK FHQWUDOL]HG GHFLVLRQ PDNLQJ RQ FROOHJH SROLF\ DQG GHFHQWUDOL]HG DGPLQLVWUDWLRQ IRU LPSOHPHQWDWLRQ RI SROLF\ DQG XVH RI WKH WHUPV FHQWUDOL]HG DQG GHFHQn WUDO L]HG 'HFHQWUDOL]HG DOORZV LQGLYLGXDO FDPSXV IOH[LELOLW\ &HQWUDOL]HG FRQWURO RI SROLF\ DQG LPSOHPHQWDWLRQ UHVWV LQ WKH 3UHVLGHQWnV RIILFH FR

PAGE 101

$UH WKHUH DQ\ DVSHFWV RI WKH 3UHVLGHQWnV UROHV DQG IXQFWLRQV WKDW \RX ZRXOG FDUH WR FRPPHQW RQ WKDW KDYH QRW GLVFXVVHG ZLWK \RX RU WKDW FRXOG QRW JOHDQ IURP \RXU UHVSRQVHV WR WKH TXHVWLRQQDLUH \RX FRPSOHWHG" 7$%/( &217,18(' 2QO\ WKH IROORZLQJ UHVSRQVH DUHD RFFXUUHG IUHTXHQWO\ HQRXJK WR WDEXODWH FOHDUO\ WKH 3UHVLGHQW QHHGV WR EHFRPH PRUH YLVLEOH WR FROOHJH SHUVRQQHO DQG LQFUHDVH FRQWDFW DQG FRPPXQLFDWLRQV ZLWK WKH YDULRXV FDPSXVHV

PAGE 102

SHUFHQW RI WKH UHVSRQVHV FDQ EH JURXSHG LQWR RQH RI WZR DQVZHUV 7KH GLVSHUVLRQ RI UHVSRQVHV ZHUH JUHDWHU RQ WKLV LWHP WKDQ RQ 4XHVWLRQ ZLWK WKH KLJKHVW UHVSRQVH UDWLQJ JRLQJ WR WKH DQVZHU GHVFULELQJ WKH 3UHVLGHQW DV WKH FKLHI DGPLQLVWUDWRU 7KH PRVW IUHTXHQW UHVSRQVHV ZHUH &KLHI H[HFXWLYH$GPLQLVWUDWRU RYHUVHH RSHUDWLRQ RI WKH LQVWLWXWLRQ DQG LPSOHPHQW ERDUG SROLF\ SHUFHQWf (GXFDWLRQDO OHDGHU RI WKH LQVWLWXWLRQ SURYLGH GLUHFWLRQ DQG VHW WKH FOLPDWH IRU WKH JRYHUQDQFH RI WKH FROOHJH SHUFHQWf /LDVRQ DQG FRPPXQLFDWLRQV OLQN EHWZHHQ WKH ERDUG DQG FROOHJH DQG WKH FRPPXQLW\ SHUFHQWf 3ROLWLFLDQ JDWKHU VXSSRUW DQG UHVRXUFHV IRU WKH FROOHJH SHUFHQWf 3ODQQLQJ VHWWLQJ JRDOV DQG DFTXLULQJ UHVRXUFHV UHTXLUHG WR DFKLHYH WKHP SHUFHQWf 4XHVWLRQ ,Q \RXU RSLQLRQ XSRQ ZKDW EDVLV GRHV WKH 3UHVLGHQW H[HUFLVH KLV YDULRXV IXQFWLRQV DQG UHVSRQVLELOLWLHV" 7KH DQVZHUV WR WKLV TXHVWLRQ ZHUH YHU\ HDVLO\ JURXSHG LQWR WZR UHVSRQVH FDWHJRULHV 2QH FDWHJRU\ RI UHVSRQVHV SHUFHLYHG WKH EDVLV IRU WKH 3UHVLGHQWnV DXWKRULW\ WR EH WKH %RDUG RI 7UXVWHHV SHUFHQWf ZKLOH WKH RWKHU FDWHJRU\ SLQSRLQWHG VWDWH JRYHUQPHQW YLD UHJXODWLRQV VWDWXWHV DSSURSULDWLRQV HWFf DV KLV EDVLV RI SRZHU SHUFHQWf 4XHVWLRQ ,Q \RXU RSLQLRQ DUH WKH IXQFWLRQV DQG UHVSRQVLELOLWLHV RI WKH 3UHVLGHQW VSHFLILFDOO\ HQXPHUDWHG RU DUH WKH\ EURDG DQG JHQHUDO

PAGE 103

LQ QDWXUH" 7KLV TXHVWLRQ OLNH QXPEHU UHVXOWHG LQ GLFRWRPRXV UHVSRQVH FDWHJRULHV ZLWK SHUFHQW RI WKH UHVSRQGHQWV SHUFHLYLQJ WKH 3UHVLGHQWnV SRZHUV DV EURDG DQG JHQHUDO ZKLOH SHUFHQW EHOLHYHG KLV SRZHUV ZHUH VSHFLILFDOO\ HQXPHUDWHG DOWKRXJK LQ EURDG DUHDV RI UHVSRQVLELOLW\f 4XHVWLRQ $UH WKHUH VRPH HOHPHQWV RU FRPSRQHQWV RI WKH FRPPXQLW\ FROOHJH H[SHULHQFH LQ WKLV GLVWULFW LH %RDUG 3UHVLGHQW IDFXOW\ FRPPXQLW\ OHDGHUV HWFf WKDW \RX EHOLHYH FRQn WULEXWH PRUH WKDQ RWKHU FRPSRQHQWV WRZDUG WKH VXFFHVVIXO DFFRPSOLVKn PHQWV RI WKH GLVWULFW" ,I \HV FRXOG \RX UDQN WKHP" 7KLV TXHVWLRQ SURYHG LQWHUHVWLQJ ZLWK WKH UHVSRQGHQWV VHOHFWLQJ VL[ PDMRU FRPn SRQHQWV DQG UDQNLQJ HDFK VRPHZKHUH EHWZHHQ ILUVW DQG IRXUWK VHH 7DEOH f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f RI DQVZHUV LQ WKH FDWHJRU\ RI ERWKFHQWUDOL]HG SROLF\ DQG

PAGE 104

)UHTXHQF\ 3HUFHQW RI 8QLYHUVH 3UHVLGHQW )DFXOW\ %RDUG RI 7UXVWHHV *HQHUDO $GPLQLVWUDWLRQ &RPPXQLW\ DW ODUJH )LJXUH 7RWDO )UHTXHQFLHV RI WKH 7RS &RPSRQHQWV

PAGE 105

GHFHQWUDOL]HG DGPLQLVWUDWLRQ IRU LPSOHPHQWDWLRQ 2QO\ SHUFHQW RI WKH UHVSRQGHQWV SHUFHLYHG WKH VWUXFWXUH DV GHFHQWUDOL]HG $Q HYHQ ORZHU SHUFHQW f EHOLHYHG WKH VWUXFWXUH ZDV WUXO\ FHQn WUDOL]HG 4XHVWLRQ 7KLV TXHVWLRQ DVNHG IRU DQ\ IXUWKHU FRPPHQWV WKH SDUWLFLSDQWV FDUHG WR PDNH UHJDUGLQJ WKHLU SHUFHSWLRQV RI WKH UROHV DQG IXQFWLRQV RI WKH 3UHVLGHQW 2QO\ RQH UHVSRQVH RFFXUUHG IUHn TXHQWO\ HQRXJK WR WDEXODWH FOHDUO\ 7KH 3UHVLGHQW QHHGV WR EHFRPH PRUH YLVLEOH WR FROOHJH SHUVRQQHO DQG LQFUHDVH FRQWDFW DQG FRPPXQLn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n GXDOLW\ RI WKH YDULRXV FDPSXVHV VHHPV WR EH D SURGXFW RI WKH 3UHVLGHQWnV VWURQJ OHDGHUVKLS DQG GHOHJDWLRQ RI DXWKRULW\ WR FDPSXV 9LFH3UHVLGHQWV

PAGE 106

7KH 3UHVLGHQWnV UHODWLRQVKLS ZLWK WKH %RDUG RI 7UXVWHHV VHHPV WR EH EXLOW RQ WKH %RDUGn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nV IXQFWLRQDO GXWLHV DV SHUFHLYHG E\ D PDMRULW\ RI WKH SDUWLFLSDQWV $ FOHDU GLYLVLRQ H[LVWV LQ WKH SHUFHSWLRQV RI SDUWLFLSDQWV UHJDUGLQJ WKH 3UHVLGHQWn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

PAGE 107

$V HYLGHQFHG E\ WKH UHVXOWV RI WKH OLVWLQJ RI H[HFXWLYH IXQFWLRQV WKH SHUFHSWLRQV RI WKH SDUWLFLSDQWV VHHP WR LQGLFDWH WKDW WKH 3UHVLGHQWnV PRVW GLUHFW IXQFWLRQV HYROYH DURXQG SROLF\ PDNLQJ DQG FRPPXQLFDWLRQV ZLWK FRPPXQLW\ OHDGHUV 7KH SUHYDLOLQJ SHUFHSWLRQ RI WKH UROH RI WKH 3UHVLGHQW LV WKDW RI FKLHI DGPLQLVWUDWRU DQG PDQDJHU RI WKH HQWLUH RUJDQL]DWLRQDO RSHUDWLRQ 7KH IDFXOW\ ZDV IUHTXHQWO\ SHUFHLYHG DV D PDMRU FRQWULEXWRU WR WKH VXFFHVV DQG JRRG UHSXWDWLRQ RI WKH HGXFDWLRQDO HQWHUSULVH DW 0L DPL'DGH

PAGE 108

&+$37(5 ,9 '$//$6 7+( 52/( 2) 7+( &+,() (;(&87,9( 2)),&(5 $7 $ 08/7 ,,167,787,21 &20081,7< &2//(*( ',675,&7 7KH 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW VHUYHG DV WKH PXOWLLQVWLWXWLRQ VDPSOH LQ WKLV VWXG\ 7KLV FKDSWHU LV D GLVFXVVLRQ RI WKH IXQFWLRQV DQG UROH OHJDO DQG SHUFHLYHG RI WKH FKLHI H[HFXWLYH RIILFHU &KDQFHOORUf RI WKH 'DOODV &RXQW\ 'LVWULFW 7KH ILUVW VHFWLRQ GHVFULEHV WKH HQYLURQPHQWDO VHWWLQJ RI WKH 'LVWULFW 6HFWLRQ WZR LV D GHVFULSWLRQ RI WKH KLVWRU\ DQG GHYHORSn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f

PAGE 109

'DOODV &RXQW\ ZLWK D SRSXODWLRQ RI SHRSOH FRPELQHV ZLWK 7DUUDQW &RXQW\ IRU IRUP WKH 'DOODV)RUW :RUWK PHWURSROLWDQ DUHD WHQWK ODUJHVW LQ WKH QDWLRQf ZLWK D WRWDO SRSXODWLRQ RI SHRSOH 7KH :RUOG $OPDQDF S f 7KH SULQFLSOH FLW\ LQ 'DOODV &RXQW\ LV 'DOODV WKH VWDWHnV VHFRQG ODUJHVW FLW\ DQG UDQNHG HLJKWK QDWLRQDOO\ ZLWK D SRSXODWLRQ RI 7KH :RUOG $OPDQDF S f 7KH HFRQRP\ RI WKH FRXQW\ LV FHQWHUHG DURXQG D ODUJH PDUNHWLQJ DQG WUDGH LQGXVWU\ VXSSOHPHQWHG E\ D ODUJH EDQNLQJ DQG LQVXUDQFH LQGXVWU\ SHWUROHXP SURGXFWLRQ DQG OLJKW PDQXIDFWXULQJ LQ DYLDWLRQ DQG HOHFn WURQLFV 7KH :RUOG $OPDQDF S f +LVWRU\ DQG 'HYHORSPHQW RI WKH 'LVWULFW 7KH OHJDO DXWKRUL]DWLRQ IRU WKH 'DOODV &RXQW\ -XQLRU &ROOHJH 'LVWULFW ZDV JUDQWHG E\ WKH 7H[DV 6WDWH %RDUG RI (GXFDWLRQ LQ $SULO LQ DFFRUGDQFH ZLWK WKH VWDWH VWDWXWHV ,QVWLWXWLRQDO 6HOI6WXG\ S f 7KH VWDWH VWDWXWHV SURYLGH WKH JHQHUDO JXLGHOLQHV IRU HVWDEOLVKLQJ WKH RUJDQL]DWLRQ RI WKH JRYHUQLQJ ERDUG )ROORZLQJ WKHVH JXLGHOLQHV DQ HOHFWLRQ ZDV KHOG LQ 0D\ ZLWK WKH YRWHUV RI 'DOODV &RXQW\ FUHDWLQJ WKH GLVWULFW DQG DSSURYLQJ D PLOOLRQ GROODU ERQG LVVXH WR HVWDEOLVK WKH ILUVW FROOHJH ,QVWLWXWLRQDO 6HOI 6WXG\ S f 7KH IROORZLQJ \HDU WKH 'LVWULFWnV ILUVW FROOHJH (O &HQWUR RSHQHG LWV GRRUV IRU WKH IDOO VHPHVWHU LQ GRZQn WRZQ 'DOODV ZLWK DQ HQUROOPHQW RI 'LVWULFW ,QIRUPDWLRQ 6KHHW S f %\ WKH IDOO RI (O &HQWURnV HQUROOPHQW KDG FOLPEHG WR DQG WKH VWXGHQW HQUROOPHQW IRU WKH 'LVWULFW LQFUHDVHG

PAGE 110

WR GXH WR WKH RSHQLQJ RI WKH FROOHJHV RI (DVWILHOG HQUROOPHQW DQG 0RXQWDLQ 9LHZ HQUROOPHQWf (O &HQWUR &DWDORJXH S f :LWK WKH RSHQLQJ RI WKHVH WZR FROOHJHV WKH 'DOODV 'LVWULFW ILQDOO\ EHFDPH WKH PXOWLXQLW RSHUDWLRQ RULJLQDOO\ SODQQHG $QRWKHU VWHS LQ WKH GHYHORSPHQW RI WKH 'DOODV 'LVWULFW ZDV WDNHQ LQ WKH IDOO RI ZLWK WKH RSHQLQJ RI 5LFKODQG &ROOHJH ZLWK VWXGHQWV (O &HQWUR &DWDORJXH S f :LWK WKH RSHQLQJ RI 5LFKODQG &ROOHJH LQ WKH 'LVWULFW DFKLHYHG LWV SUHVHQW IRXU FROOHJH VWUXFWXUH 7KH 'LVWULFW KDV JURZQ WR D FUHGLW HQUROOPHQW RI VSULQJ f D WHFKQLFDORFFXSDWLRQ HQUROOPHQW RI f DQG DQ HQUROOPHQW LQ FRPPXQLW\ VHUYLFH SURJUDPV RI 7KH &KDQFHOORUnV 5HSRUW S f 2QH RI WKH IDFWRUV HQDEOLQJ WKH 'LVWULFW WR JURZ DQG VHUYH ODUJHU QXPEHUV RI VWXGHQWV ZDV WKH YHU\ VWURQJ FRPPXQLW\ VXSSRUW LW UHFHLYHV VXFK DV WKH YRWHUVn DSSURYDO RI WKH VDOH RI DQ DGGLWLRQDO PLOOLRQ GROODUV LQ ERQGV LQ 6HSWHPEHU RI (O &HQWUR &DWDORJXH S f 7KLV OHYHO RI VXSSRUW KDV DOORZHG WKH 'LVWULFW WR IROORZ LWV H[SDQVLRQ SODQV DQG EHJLQ DFTXLVLWLRQ DQG FRQVWUXFWLRQ RI LWV ILQDO WKUHH FROOHJHV 7KH ILIWK FROOHJH WR EH DGGHG WR WKH 'LVWULFW LV &HGDU 9DOOH\ VFKHGXOHG WR RSHQ LQ 6HSWHPEHU 7KH &KDQFHOORUnV 5HSRUW S f 7KH 'LVWULFW VHYHQ FROOHJH SODQ ZLOO EH FRPSOHWHG ZLWK WKH RSHQLQJ RI 1RUWK /DNH &ROOHJH LQ 6HSWHPEHU DQG %URRNKDYHQ &ROOHJH LQ 6HSWHPEHU (O &HQWUR &DWDORJXH

PAGE 111

S f 7KH IROORZLQJ LV D OLVWLQJ RI VRPH RI WKH VLJQLILFDQW VWDWLVWLFV GHVFULSWLYH RI WKH 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW 7KH &KDQFHOORUnV 5HSRUW SS f (QUROOPHQW IRU VKRZHG D SHUFHQW LQFUHDVH RYHU WKH SUHYLRXV \HDU 3DUWWLPH HQUROOPHQW H[FHHGHG IXOOWLPH HQUROOPHQW DW DOO FROOHJHV ,Q WKH IDOO RI SHUFHQW RI WKH VWXGHQWV ZHUH HQUROOHG LQ WHFKQLFDORFFXSDWLRQDO FRXUVHV SHUFHQW RI WKH WRWDO VWXGHQW SRSXODWLRQ ZHUH IURP PLQRULW\ HWKQLF EDFNJURXQGV )HPDOH VWXGHQWV UHSUHVHQW SHUFHQW RI WKH WRWDO HQUROOn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

PAGE 112

ILJXUHV DUH 7KH &KDQFHOORUnV 5HSRUW S f 6WDWH DSSURSULDWLRQV SHUFHQWf /RFDO DG YDORUHP WD[e SHU KXQGUHG GROODUV DW D SHUFHQW DVVHVVPHQW UDWH SHUFHQWf 7XLWLRQ DQG IHHV SHUFHQWf )HGHUDO JUDQWV SHUFHQWf $X[LOLDU\ HQWHUSULVHV 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH )RXQGDWLRQ ,QF HWF SHUFHQWf 7KH FRPPXQLW\ FRPPLWPHQW WR WKH ILQDQFLQJ RI WKH 'LVWULFW FOHDUO\ LOOXVWUDWHG LQ WKH IROORZLQJ SDUDJUDSK 7KH GHFLVLRQ E\ WKH 7UXVWHHV WR SURFHHG ZLWK WKH FUHDWLRQ RI WKH 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW )RXQGDWLRQ ,QF DV D QRQSURILW RUJDQL]DWLRQf DURVH LQ f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nV 5HSRUW S f

PAGE 113

/HJDO 6WUXFWXUH RI *RYHUQDQFH 7KH SXEOLF FRPPXQLW\ DQG MXQLRU FROOHJHV RI 7H[DV DUH FRQn VLGHUHG SDUW RI WKH KLJKHU HGXFDWLRQ V\VWHP ZKLFK RSHUDWHV XQGHU WKH &RRUGLQDWLQJ %RDUG RI WKH 7H[DV &ROOHJH DQG 8QLYHUVLW\ 6\VWHP ,QIRUPDWLRQ 6KHHW 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW S f $OWKRXJK LW LV VXEMHFW WR WKH FRQVWLWXWLRQDO DQG VWDWXWRU\ FRQWUROV HPDQDWLQJ IURP WKH VWDWH OHYHO WKH 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW RSHUDWHV DV DQ LQGHSHQGHQW SROLWLFDO VXEGLYLVLRQ RI WKH VWDWH ,W LV FRQWUROOHG E\ D ORFDOO\HOHFWHG JRYHUQLQJ ERDUG HOHFWHG IURP WKH FRXQW\ DWODUJH FRQVLVWLQJ RI VHYHQ PHPEHUV VHUYLQJ VL[ \HDU VWDJJHUHG WHUPV ,QVWLWXWLRQDO 6HOI6WXG\ S f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

PAGE 114

UHVSRQVLELOLW\ IRU LPSOHPHQWLQJ WKH SROLFLHV DQG UHJXODWLRQV HVWDEOLVKHG E\ WKH %RDUG ,QVWLWXWLRQDO 6HOI6WXG\ S f 2QO\ WKH &KDQFHOORU RU KLV GHOHJDWH PD\ SURPXOJDWH DGPLQLVWUDWLYH SROLFLHV DQG SURFHGXUHV IRU 'LVWULFW DQG FROOHJH RSHUDWLRQV ,QVWLWXWLRQDO 6HOI6WXG\ S f 7KH VSHFLILF OHJDO IXQFWLRQV DVVLJQHG WR WKH &KDQFHOORU DUH HQXPHUDWHG LQ WKH 'LVWULFW $GPLQLVWUDWLYH 3ROLFLHV 0DQXDO DQG DUH LQFOXGHG LQ $SSHQGL[ ) 7KH FRPSOHWH RUJDQL]DWLRQDO VFKHPH IRU WKH 'LVWULFW LV VKRZQ LQ $SSHQGL[ ( (DFK RI WKH IRXU FROOHJHV LQ WKHLU UHODWLRQVKLS WR WKH 'LVWULFW 2IILFH DUH WR IXQFWLRQ DV D FRRSHUDWLQJ XQLW ZKLFK LV FRRUGLQDWHG LQWR WKH RYHUDOO 'LVWULFW DSSURDFK WR PXOWLFROOHJH RSHUDWLRQV ,QVWLWXWLRQDO 6HOI6WXG\ S f 7KHVH FROOHJHV DUH HDFK KHDGHG E\ D 3UHVLGHQW DSSRLQWHG E\ WKH 'LVWULFW 2IILFH &KDQFHOORUf $OWKRXJK HDFK FROOHJH LV DOORZHG IOH[LELOLW\ LQ LWV DGPLQLVWUDWLYH RUJDQL]DWLRQ WKH\ PXVW VWLOO VXEPLW DSSURSULDWH MRE WLWOHV MRE VSHFLILFDWLRQV DQG RUJDQL]DWLRQDO SDWWHUQV WR WKH &KDQFHOORU IRU DSSURYDO ,QVWLWXWLRQDO 6HOI6WXG\ S f (DFK RI WKHVH SURSRVDOV PXVW EH FRQVLVWHQW ZLWK GLVWULFW SROLFLHV DQG SURFHGXUHV DV ZHOO DV ZLWK WKH JRDOV DQG REMHFWLYHV RI WKH 'LVWULFW $OWKRXJK FRPSHWLWLRQ LV H[SHFWHG WR H[LVW DPRQJ WKH 'LVWULFWnV FROOHJHV WKH DGPLQLVWUDWRUV RI WKH YDULRXV FROOHJHV DUH H[SHFWHG WR EH PXWXDOO\ VXSSRUWLYH DQG WR UHFRJQL]H WKH QHHG IRU FRRSHUDWLRQ DQG FROODERUDWLRQ LQ PHHWLQJ WKH JRDOV RI WKH 'LVWULFW ,QVWLWXWLRQDO 6HOI6WXG\ S f (YHQ WKRXJK WKH 'LVWULFW HVSRXVHV FRPPLWPHQW WR WKH FRQFHSW

PAGE 115

WKDW WKH LQGLYLGXDO FROOHJHV DUH WKH IRFDO SRLQW RI WKH HGXFDWLRQDO RSHUDWLRQ LW LV VWLOO UHFRJQL]HG WKDW WKH XOWLPDWH DXWKRULW\ IRU DSSURYLQJ FROOHJH RSHUDWLRQV DQG SURJUDPV LV YHVWHG LQ WKH %RDUG RI 7UXVWHHV WKURXJK WKH 'LVWULFW 2IILFH )LQGLQJV RI WKH 4XHVWLRQQDLUH DQG 6WUXFWXUHG ,QWHUYLHZV 7KH WZR LQVWUXPHQWV XVHG WR JDWKHU GDWD DW 0LDPL'DGH &RPPXQLW\ &ROOHJH ZHUH DOVR XVHG IRU WKH VDPH SXUSRVH DW WKH 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW VHH $SSHQGL[ %f $V LQ 0LDPL WKH LQVWUXPHQWV SURYLGHG WKH UHVHDUFKHU ZLWK D JUHDW DPRXQW RI LQIRUPDWLRQ FRQFHUQLQJ WKH SHUFHSWLRQV RI WKH VHOHFWHG SDUWLFLSDQWV DW WKH 'LVWULFW $OO RI WKH LQIRUPDWLRQ ZDV REWDLQHG GXULQJ VFKHGXOHG SHUVRQDO LQWHUYLHZV ZLWK HDFK RI WKH SDUWLFLSDQWV 7KH LQWHUYLHZ SURFHGXUH ZDV LGHQWLFDO WR WKDW XVHG LQ WKH 0LDPL SRUWLRQ RI WKH VWXG\ ZLWK DSSUR[LPDWHO\ WKH ILUVW ILIWHHQ PLQXWHV XVXDOO\ XVHG IRU WKH SDUWLFLSDQW WR FRPSOHWH WKH TXHVWLRQQDLUH $OO TXHVWLRQV UHJDUGLQJ WKH TXHVWLRQQDLUH DQG LQWHUYLHZ SURFHGXUH E\ WKH SDUWLFLSDQWV ZHUH DQVZHUHG LPPHGLDWHO\ E\ WKH UHVHDUFKHU 8SRQ FRPSOHWLRQ RI WKH TXHVWLRQQDLUH WKH VWUXFWXUHG LQWHUYLHZ JXLGH ZDV XVHG WR FDUU\ RXW WKH UHPDLQGHU RI WKH LQWHUYLHZ ZKLFK XVXDOO\ ODVWHG DQRWKHU WZHQW\ WR WKLUW\ PLQXWHV $OO SDUWLFLSDQWV ZHUH YHU\ FRRSHUDWLYH DQG ZHUH YHU\ ZLOOLQJ WR GLVFXVV WKHLU SHUFHSWLRQV ZLWK WKH UHVHDUFKHU 7KH ILQGLQJV RI WKH TXHVWLRQQDLUH DQG WKH VWUXFWXUHG LQWHUYLHZ ZHUH FDOFXODWHG DQG DUUDQJHG LQWR WDEOH IRUP DQG DUH SUHVHQWHG LQ 7DEOHV 7KH GDWD FRQWDLQHG LQ HDFK RI WKH VL[ WDEOHV DUH GLVFXVVHG LQ WKH IROORZLQJ SDJHV

PAGE 116

,Q 3DUW RI WKH TXHVWLRQQDLUH WKH SDUWLFLSDQWV ZHUH LQVWUXFWHG WR UDQN RUGHU D OLVW RI VL[ DGPLQLVWUDWLYH FDWHJRULHV DFFRUGLQJ WR WKH LPSRUWDQFH WKH\ DWWULEXWHG WR HDFK RI WKHP DV DQ H[HFXWLYH IXQFWLRQ VHH 7DEOH f 7KH\ ZHUH WKHQ LQVWUXFWHG WR UDQN RUGHU WKH VSHFLILF DFWLYLWLHV OLVWHG ZLWKLQ HDFK RI WKH FDWHJRULHV VHH 7DEOH f 6SDFH ZDV DOVR SURYLGHG IRU DQ\ DFWLYLWLHV WKH UHVSRQGHQWV ZDQWHG WR DGG WR WKH TXHVWLRQQDLUH 3ODQQLQJ ZDV SHUFHLYHG DV WKH PRVW LPSRUWDQW DGPLQLVWUDWLYH FDWHJRU\ E\ SHUFHQW RI WKH SDUWLFLSDQWV DQG ZDV UDQNHG ZLWKLQ WKH WRS WZR LQ LPSRUWDQFH E\ SHUFHQW $OWKRXJK WKH FDWHJRU\ RI HGXFDWLRQDO OHDGHUVKLS ZDV UDQNHG QXPEHU RQH PRUH IUHTXHQWO\ SHUFHQWf WKDQ DQ\ RWKHU FDWHJRU\ LWV RYHUDOO LPSRUWDQFH SODFHG LW DV WKLUG PRVW LPSRUWDQW 7KH RYHUDOO WRS WKUHH UDQNHG FDWHJRULHV RI SODQQLQJ ILQDQFH DQG HGXFDWLRQDO OHDGHUVKLS FDQ PRVW FOHDUO\ EH FRPSDUHG E\ YLHZLQJ WKH IROORZLQJ FDWHJRULHV RI UHVXOWV 3HUFHQW RI ILUVW DQG VHFRQG SODFH UDQNLQJ 3ODQQLQJ )LQDQFH (GXFDWLRQDO /HDGHUVKLS 3HUFHQW RI UDQNLQJV LQ RQH RI WKH WRS WKUHH 3ODQQLQJ )LQDQFH (GXFDWLRQDO /HDGHUVKLS

PAGE 117

7$%/( 5$1.,1* 2) $'0,1,675$7,9( &$7(*25,(6 $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 $GPLQLVWUDWLYH &DWHJRU\ 5DQN 3RVLWLRQV 0HDQ 5HVSRQVH 0HGLDQ 0RGH I b I b I b I b I b I b 3ODQQLQJ )LQDQFH /HJLWLPL]DWLRQ F ([WHUQDO 5HODWLRQV (GXFDWLRQDO /HDGHUVKLS (YDOXDWLRQ 1RWHf§I IUHTXHQF\ R &7!

PAGE 118

7$%/( )81&7,216 5$1.(' :,7+,1 &$7(*25,(6 $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 $GPLQLVWUDWLYH 5DQN 3RVLWLRQV 0HDQ 0HGLDQ 0RGH &DWHJRU\ 5HVSRQVH I b I b I b I b I b 3ODQQLQJ 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf )LQDQFH 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf

PAGE 119

7$%/( &217,18(' /HJLWLPL]DWLRQ 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf ([WHUQDO 5HODWLRQV 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf If R

PAGE 120

7$%/( &217,18(' (GXFDWLRQDO /HDGHUVKLS 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf (YDO XDWLRQ 6SHFLILF )XQFWLRQV Df Ef Ff Gf Hf If 1RWH6HH $SSHQGL[ % IRU 6SHFLILF )XQFWLRQV R

PAGE 121

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n FRUUHVSRQGLQJ FDWHJRU\ KHDGLQJ

PAGE 122

,OO 3ODQQLQJ $FWLYLW\ D ORQJ UDQJ SODQQLQJf ZDV FOHDUO\ UDQNHG DV WKH PRVW LPSRUWDQW RI WKH IRXU DFWLYLWLHV ZLWK SHUFHQW UDQNLQJ LW DV ILUVW DQG DQ RYHUDOO PHDQ UHVSRQVH RI ,WV SHUFHLYHG LPSRUWDQFH LV IXUWKHU LOOXVWUDWHG E\ LWV PHGLDQ UDQNLQJ RI DQG WKH IDFW WKDW SHUFHQW RI WKH UHVSRQGHQWV SODFHG LW LQ HLWKHU ILUVW RU VHFRQG SRVLWLRQ $FWLYLWLHV E SURJUDP H[SDQVLRQf F SODQQLQJ RI SK\VLFDO IDFLOLWLHVf DQG G VHWWLQJ RSHUDWLRQDO SULRULWLHVf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

PAGE 123

)LQDQFH $FWLYLW\ G SULRULW\ UDQNLQJ RI UHVRXUFH DOORFDWLRQV OHYHOVf ZDV FOHDUO\ UDQNHG DV WKH PRVW LPSRUWDQW DFWLYLW\ LQ WKLV FDWHJRU\ ZLWK SHUFHQW RI WKH UHVSRQGHQWV UDQNLQJ LW ILUVW DULG SHUFHQW SODFLQJ LW LQ RQH RI WKH WZR WRS SRVLWLRQV 7KH PHDQ UHVSRQVH DQG PHGLDQ UDQNLQJ DUH DOVR UHIOHFWLYH RI WKH DWWULEXWHG LPSRUWDQFH RI WKLV DFWLYLW\ $FWLYLW\ F GLVWULFW EXGJHW DGPLQLVWUDWLRQf ZDV UDQNHG VHFRQG ZLWK SHUFHQW ILUVW SODFH DQG SHUFHQW VHFRQG SODFH UDQNLQJV 7KH PHDQ UHVSRQVH RI LV HYLGHQFH RI D JUHDWHU UHVSRQVH GLVSHUVLRQ WKDQ WKDW RI DFWLYLW\ G $FWLYLW\ D EXGJHW SUHSDUDWLRQf ZDV UDQNHG DV WKH WKLUG PRVW LPSRUWDQW DFWLYLW\ ZLWK SHUFHQW RI WKH UHVSRQGHQWV UDQNLQJ LW LQ RQH RI WKH WKUHH WRS SRVLWLRQV 7KH PHDQUHVSRQVH RI LV DQ DFFXUDWH LQGLFDWLRQ RI WKH UDQNLQJ RI WKLV DFWLYLW\ $FWLYLW\ E IXQG UDLVLQJf ZDV UDQNHG ODVW E\ D PDMRULW\ RI WKH UHVSRQGHQWV ZLWK SHUFHQW RI WKH UHVSRQGHQWV UDQNLQJ LW IRXUWK LQ LPSRUWDQFH 2QO\ SHUFHQW UDQNHG WKLV DFWLYLW\ ZLWKLQ SRVLWLRQV RQH RU WZR /HJLWLPL]DWLRQ $FWLYLWLHV G LPSURYHPHQW RI LQVWLWXWLRQDO FRPPXQLFDWLRQ QHWZRUNf DQG D RSHQQHVV LQ WKH GHFLVLRQPDNLQJ SURFHVVf ZHUH UDQNHG D FORVH ILUVW DQG VHFRQG ZLWK DQG SHUFHQW O UHVSHFWLYHO\ LQ SRVLWLRQ RQH $OWKRXJK D UHFHLYHG PRUH ILUVW SODFH UDQNLQJV DFWLYLW\ G UHFHLYHG D VLJQLILFDQWO\ KLJKHU FRPELQHG

PAGE 124

ILUVWVHFRQG UDQNLQJ ZLWK WR SHUFHQW 7KH RYHUDOO PHDQ UHVSRQVHV RI WKH WZR DFWLYLWLHV DQG UHVSHFWLYHO\f DOVR LQGLFDWH WKH VOLJKWO\ KLJKHU UDQNLQJ RI DFWLYLW\ G $FWLYLW\ F LPSURYLQJ KXPDQ UHODWLRQV DQG GLVWULFW PRUDOHf ZDV UDQNHG WKLUG ZLWK SHUFHQW RI WKH UHVSRQGHQWV UDQNLQJ LW ILUVW RU VHFRQG DQG DQRWKHU SHUFHQW SODFLQJ LW VTXDUHO\ LQ WKLUG SODFH +RZHYHU LW LV VLJQLILFDQW WKDW SHUFHQW RI WKH UHVSRQGHQWV UDQNHG WKLV DFWLYLW\ DV WKH OHDVW LPSRUWDQW RI WKH IRXU DFWLYLWLHV 7KH PHGLDQ UDQNLQJ RI DQG WKH PRGH UHVSRQVH RI VHHP WR UHIOHFW WKH UHVXOW WKDW SHUFHQW RI WKH UHVSRQGHQWV UDQNHG F DV HLWKHU WKLUG RU IRXUWK $FWLYLW\ E FRQVWLWXHQW SDUWLFLSDWLRQ LQ JRYHUQDQFHf ZDV UDQNHG ODVW ZLWK SHUFHQW LQ WKH QXPEHU IRXU UDQNLQJ 7KLV DFWLYLW\nV ODFN RI SHUFHLYHG LPSRUWDQFH LV DOVR UHIOHFWHG LQ WKH PHDQ UHVSRQVH RI DQG E\ WKH UHVXOW WKDW WKLV ZDV WKH RQO\ DFWLYLW\ LQ WKH FDWHJRU\ QRW UHFHLYLQJ DQ\ ILUVW SODFH UDQNLQJV ([WHUQDO 5HODWLRQV $FWLYLW\ F LQYROYHPHQW ZLWK FRPPXQLW\ JURXSVf ZDV FOHDUO\ SHUFHLYHG DV WKH PRVW LPSRUWDQW DFWLYLW\ LQ WKLV FDWHJRU\ ZLWK SHUFHQW ILUVW SODFH UDQNLQJV DQG SHUFHQW VHFRQG SODFH UDQNLQJV 7KH PHDQ UHVSRQVH RI DQG WKH PHGLDQ UDQNLQJ RI VHHP WR UHIOHFW WKH DFFXUDWH RYHUDOO SHUFHSWLRQ UHJDUGLQJ WKLV DFWLYLW\ $FWLYLW\ E LQYROYHPHQW ZLWK VWDWH DJHQFLHV DQG OHDGHUVf UDQNHG VHFRQG ZLWK SHUFHQW RI WKH UHVSRQGHQWV SODFLQJ LW DV

PAGE 125

HLWKHU ILUVW RU VHFRQG LQ LPSRUWDQFH 7KH SHUFHQW FRPELQHG UHVSRQVH LQ VHFRQG DQG WKLUG SODFH DOVR DFFXUDWHO\ UHIOHFW WKH RYHUDOO UDQNLQJ DQG WKH PHDQ UHVSRQVH RI $FWLYLW\ D LQYROYHPHQW ZLWK DFFUHGLWLQJ DJHQFLHVf ZDV UDQNHG WKLUG LQ LPSRUWDQFH ZLWK SHUFHQW RI WKH UHVSRQGHQWV UDQNLQJ LW LQ RQH RI WKH ILUVW WKUHH SRVLWLRQV 7KH GLVSHUVLRQ RI WKH UDQNLQJV LV LOOXVWUDWHG E\ WKH UHVXOW WKDW SHUFHQW RI WKH UHVSRQGHQWV DOVR UDQNHG D DV HLWKHU IRXUWK RU ILIWK LQ LPSRUWDQFH 7KH PHDQ 9 UHVSRQVH RI DQG WKH PHGLDQ UDQNLQJ RI VHHP WR DFFXUDWHO\ GHVFULEH WKH RYHUDOO SHUFHSWLRQ UHJDUGLQJ WKLV DFWLYLW\ $FWLYLWLHV H LQYROYHPHQW ZLWK SURIHVVLRQDO DVVRFLDWLRQVf DQG G LQYROYHPHQW ZLWK IHGHUDO DJHQFLHV DQG OHDGHUVf DUH UDQNHG FORVHO\ LQ SRVLWLRQV IRXU DQG ILYH ZLWK FRPELQHG IRXUWK DQG ILIWK SODFH UDQNLQJV RI DQG SHUFHQW UHVSHFWLYHO\ $FWLYLW\ H LV UDQNHG KLJKHU ZLWK D PHDQ UHVSRQVH RI FRPSDUHG WR IRU DFWLYLW\ G 7KH ODVW SODFH UDQNLQJ RI G LV DOVR VWUHQJWKHQHG E\ WKH IDFW WKDW LW LV WKH RQO\ DFWLYLW\ LQ WKH FDWHJRU\ WKDW GLG QRW UHFHLYH DQ\ ILUVW SODFH UDQNLQJV (GXFDWLRQDO /HDGHUVKLS $FWLYLWLHV D SUHVHQWLQJ SROLF\ UHFRPPHQGDWLRQV WR WKH ERDUGf DQG E LQLWLDWLRQ RI HGXFDWLRQDO SROLF\f ZHUH UDQNHG D FORVH ILUVW DQG VHFRQG ZLWK DQG SHUFHQW UHVSHFWLYHO\ LQ WKH FRPELQHG ILUVW DQG VHFRQG SRVLWLRQV 7KH RYHUDOO ILUVW SODFH UDQNLQJ LV JLYHQ WR D RQ WKH EDVLV RI D WR SHUFHQW

PAGE 126

IUHTXHQF\ DV WKH QXPEHU RQH UDQNHG DFWLYLW\ 7KH FORVHQHVV RI WKH SHUFHLYHG LPSRUWDQFH RI WKHVH WZR DFWLYLWLHV LV DOVR LOOXVWUDWHG E\ WKH PHDQ UHVSRQVHV RI DQG UHVSHFWLYHO\ $FWLYLW\ F SURYLGLQJ PRWLYDWLRQDO OHDGHUVKLS WR IDFXOW\ DQG VWDIIf ZDV UDQNHG WKLUG ZLWK SHUFHQW RI WKH UHVSRQGHQWV SODFLQJ LW VTXDUHO\ LQ WKH QXPEHU WKUHH SRVLWLRQ 7KLV DFWLYLW\ DOVR KDG WKH VHFRQG KLJKHVW ILUVW SODFH UDQNLQJ LQ WKH FDWHJRU\ ZLWK SHUFHQW +RZHYHU WKH PHDQ UHVSRQVH RI DQG WKH PHGLDQ UDQNLQJ RI VHHP WR EH WKH PRVW DFFXUDWH LOOXVWUDWLRQ RI WKH UHVSRQGHQWV RYHUDOO SHUFHSWLRQ RI WKH DFWLYLW\nV LPSRUWDQFH $FWLYLW\ G DFWLYLWLHV ZLWK VWXGHQWVf ZDV RYHUZKHOPLQJO\ UDQNHG ODVW ZLWK SHUFHQW LQ WKDW SRVLWLRQ 7KH PHDQ UHVSRQVH RI DQG WKH PHGLDQ UDQNLQJ RI VHHP WR DFFXUDWHO\ GHVFULEH WKH RYHUDOO UDQNLQJ RI WKLV DFWLYLW\ (YDOXDWLRQ $FWLYLW\ H PDNLQJ MXGJPHQWV FRQFHUQLQJ H[WHUQDO IRUFHVf UHFHLYHG WKH KLJKHVW UDQNLQJ LQ WKLV FDWHJRU\ ZLWK SHUFHQW RI WKH UHVSRQGHQWV SHUFHLYLQJ WKLV DV WKH PRVW LPSRUWDQW DFWLYLW\ $ WRWDO RI SHUFHQW UDQNHG H ZLWKLQ WKH WRS WZR SRVLWLRQV 7KH PHDQ UHVSRQVH DQG PHGLDQ UDQNLQJ ZHUH HIIHFWLYH VLJQLILFDQWO\ E\ WKH SHUFHQW UDQNLQJ LQ WKH ODVW SRVLWLRQ $FWLYLW\ D HYDOXDWLYH MXGJPHQWV UHJDUGLQJ LQVWLWXWLRQDO SURJUHVVf ZDV UDQNHG VHFRQG ZLWK SHUFHQW RI WKH UHVSRQGHQWV SODFLQJ LW DV HLWKHU ILUVW RU VHFRQG LQ LPSRUWDQFH 7KH PHDQ

PAGE 127

UHVSRQVH DQG WKH PHGLDQ UDQNLQJ LV YHU\ LOOXVWUDWLYH RI WKH SHUFHQW UDQNLQJ ZLWKLQ WKH FRPELQHG VHFRQG DQG WKLUG SODFH SRVLWLRQV L $FWLYLW\ G DVVHVVPHQW RI SUREOHPVf DQG E MXGJPHQWV RQ LQVWLWXWLRQDO HIILFLHQF\f DUH UDQNHG D FORVH WKLUG DQG IRXUWK ZLWK PHDQ UHVSRQVHV RI DQG UHVSHFWLYHO\ 7KH FRPELQHG VHFRQG DQG WKLUG SODFH UDQNLQJV RI DQG SHUFHQW UHVn SHFWLYHO\ DOVR LOOXVWUDWHV WKHLU FORVHQHVV LQ SHUFHLYHG LPSRUWDQFH $FWLYLW\ F MXGJPHQWV RQ SHUVRQQHO PDWWHUVf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f 7KH SDUWLFLSDQWV ZHUH IXUWKHU LQVWUXFWHG WR HVWLPDWH ZKDW SHUFHQW RI WKH &KDQFHOORUnV WLPH ZDV VSHQW GHDOLQJ ZLWK HDFK RI WKH VSHFLILF IXQFWLRQV OLVWHG ZLWKLQ HDFK FDWHJRU\ VHH 7DEOH f )RU FODULILFDWLRQ WKH SDUWLFLSDQWV ZHUH WROG WKDW WKH WRWDO DPRXQW RI WLPH VSHQW LQ DOO RI WKH DFWLYLWLHV ZLWKLQ DQ\ FDWHJRU\ ZDV HTXDO WR SHUFHQW RI WKH H[HFXWLYHnV WLPH VSHQW LQ WKDW FDWHJRU\ ,Q RUGHU WR PDNH LQWHUSUHWDWLRQ RI WKH WLPH HVWLPDWHV PRUH FRPSDUDEOH WKH\ DUH UHFRUGHG LQ 7DEOHV DQG ZLWKLQ LQWHUYDOV RI WHQ SHUFHQW HDFK

PAGE 128

7$%/( 3(5&(17 2) &+$1&(//25n6 7,0( 63(17 ,1 ($&+ &$7(*25< $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 $GPLQLVWUDWLYH &DWHJRU\ 3HUFHQW RI 7LPH ,QWHUYDOV I b I b I b I b I b I b I b I b I b I b I b 3, DQQLQJ )LQDQFH f /HJLWLPL]DWLRQ ([WHUQDO 5HODWLRQV (GXFDWLRQDO /HDGHUVKLS (YDOXDWLRQ

PAGE 129

7KH SDUWLFLSDQWVn HVWLPDWHV RI WKH DPRXQW RI WLPH VSHQW E\ WKH &KDQFHOORU LQ PDWWHUV UHODWLQJ WR HDFK RI VL[ FDWHJRULHV FDQ FOHDUO\ EH XQGHUVWRRG E\ SODFLQJ WKHP LQ HQODUJHG WLPH LQWHUYDOV VHH )LJXUH f )LJXUH FOHDUO\ VKRZV WKDW SHUFHQW RI DOO UHVSRQVHV LQ HDFK RI WKH VL[ FDWHJRULHV ZHUH ZLWKLQ WKH SHUFHQW HVWLn PDWLRQ LQWHUYDO ,W DOVR VKRZV WKDW D JUHDW PDMRULW\ SHUFHQWf RI DOO UHVSRQVHV ZHUH ZLWKLQ WKH SHUFHQW LQWHUYDO 2QO\ WKUHH PDMRULW\ HVWLPDWHV ZHUH DFKLHYHG DPRQJ DOO WKH LQWHUYDOV RI DOO WKH FDWHJRULHV 7KHVH ZHUH OHJLWLPL]DWLRQ SHUFHQW ZLWKLQ WKH SHUFHQW LQWHUYDOf HGXFDWLRQDO OHDGHUVKLS SHUFHQW ZLWKLQ WKH SHUFHQW LQWHUYDOf DQG HYDOXDWLRQ SHUFHQW ZLWKLQ WKH SHUHQW LQWHUYDOf %DVHG RQ WKH HQODUJHG LQWHUYDO RI SHUFHQW DQG RYHU WKH IROORZLQJ SHUFHLYHG FDWHJRU\ WLPH UDQNLQJV HPHUJH IURP 7DEOH LQ GHVFHQGLQJ RUGHU RI HVWLPDWHG WLPHf 3ODQQLQJ b )LQDQFH b /HJLWLPL]DWLRQ b ([WHUQDO 5HODWLRQV b (GXFDWLRQDO /HDGHUVKLS b (YDOXDWLRQ b ,Q RUGHU WR FOHDUO\ XQGHUVWDQG WKH ILQGLQJV SUHVHQWHG LQ 7DEOH HDFK DGPLQLVWUDWLYH FDWHJRU\ LV GLVFXVVHG VHSDUDWHO\ ,Q WKH

PAGE 130

b b b &DWHJRU\ 3HUFHQW &DWHJRU\ 3HUFHQW &DWHJRU\ 3HUFHQW (YDOXDWLRQ 3ODQQLQJ (YDOXDWLRQ (GXFDWLRQDO )LQDQFH (GXFDWLRQDO /HDGHUVKLS ([WHUQDO /HDGHUVKLS )LQDQFH 5HODWLRQV ([WHUQDO 5HODWLRQV ([WHUQDO /HJLWLPL]DWLRQ 5HODWLRQV (GXFDWLRQDO )LQDQFH 3,DQQLQJ /HDGHUVKLS /HJLWLPL]DWLRQ /HJLWLPL]DWLRQ (YDOXDWLRQ 3ODQQLQJ )LJXUH 3HUFHQW RI 5HVSRQVHV 3HU &DWHJRU\ ZLWKLQ (QODUJHG ,QWHUYDOV

PAGE 131

GLVFXVVLRQ RI HDFK FDWHJRU\ HDFK VSHFLILF DFWLYLW\ LV UDQNHG DFFRUGLQJ WR WKH WZR RU PRUH FRQVHFXWLYH LQWHUYDOV WKDW PXVW EH JURXSHG WR REWDLQ D PDMRULW\ RI HVWLPDWHV IRU WKDW SDUWLFXODU DFWLYLW\ 3ODQQLQJ 6HH 7DEOH f $FWLYLW\ D ORQJUDQJH SODQQLQJf ZDV UDQNHG KLJKHVW ZLWK SHUFHQW RI WKH HVWLPDWHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO 7KH VLQJOH PRVW VLJQLILFDQW ILQGLQJ ZLWKLQ DFWLYLW\ D ZDV WKDW SHUFHQW RI WKH UHVSRQGHQWV HVWLPDWHG WKH WLPH VSHQW E\ WKH &KDQFHOORU ZDV EHWZHHQ SHUFHQW $FWLYLW\ F SODQQLQJ RI SK\VLFDO IDFLOLWLHVf ZDV UDQNHG VHFRQG ZLWK SHUFHQW RI WKH HVWLPDWHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO 6LJQLILFDQW LQ WKH UDQNLQJ RI WKLV DFWLYLW\ LV WKH IDFW WKDW SHUFHQW RI WKH HVWLPDWHV ZHUH LQFOXGHG LQ WKH LQWHUYDOV EHWZHHQ SHUFHQW $FWLYLW\ E SURJUDP H[SDQVLRQf ZDV UDQNHG WKLUG ZLWK SHUFHQW RI WKH HVWLPDWHV ZLWKLQ WKH LQWHUYDO RI SHUFHQW $FWLYLW\ G VHWWLQJ RSHUDWLRQDO SULRULWLHVf ZDV UDQNHG ODVW ZLWK SHUFHQW RI WKH HVWLPDWHV IDOOLQJ EHWZHHQ SHUFHQW $OVR VLJQLILFDQW LQ WKH DFWLYLW\ G HVWLPDWHV ZDV WKH SHUFHQW WKDW IHOO ZLWKLQ WKH SHUFHQW LQWHUYDO )LQDQFH 6HH 7DEOH f $FWLYLWLHV G SULRULW\ UDQNLQJ RI UHVRXUFH DOORFDWLRQ OHYHOVf DQG F LQWHUQDO GLVWULFW EXGJHW DGPLQLVWUDWLRQf ZHUH UDQNHG D YHU\ FORVH ILUVW DQG VHFRQG %RWK DFWLYLWLHV KDG WKH PDMRULW\ RI WKHLU

PAGE 132

7$%/( 3(5&(17 2) &+,() (;(&87,9(n6 7,0( 63(17 21 )81&7,216 :,7+,1 &$7(*25,(6 $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 $GPLQ LVWUDWLYH &DWHJRU\ 3HUFHQW RI 7LPH ,QWHUYDOV 2 I b I b I b I b I b I b I b I b I b I b I b 3ODQQLQJ )XQFWLRQV Df Ef Ff Gf Hf )LQDQFH )XQFWLRQV Df Ef Ff Gf Hf UR

PAGE 133

7$%/( &217,18(' /HJLWLPL]DWLRQ )XQFWLRQV Df Ef Ff Gf Hf ([WHUQDO 5HODWLRQV )XQFWLRQV Df Ef Ff Gf Hf If UR UR

PAGE 134

7$%/( &217,18(' (GXFDWLRQDO /HDGHUVKLS )XQFWLRQV Df Ef Ff Gf Hf (YDOXDWLRQ )XQFWLRQV Df Ef Ff Gf Hf If QR FR

PAGE 135

UHVSRQVHV IDOO ZLWKLQ WKH SHUFHQW LQWHUYDO ZLWK G UHFHLYLQJ SHUFHQW DQG F UHJLVWHULQJ SHUFHQW $OVR VLJQLILFDQW ZDV WKH ILQGLQJ WKDW SHUFHQW RI WKH HVWLPDWHV ZHUH EHWZHHQ SHUFHQW IRU G FRPSDUHG WR RQO\ SHUFHQW IRU F 7KH SHUFHQW HVWLPDWHV IRU WKHVH DFWLYLWLHV ZHUH DQG SHUFHQW UHVSHFWLYHO\ WKHUHE\ LQGLFDWLQJ D JRRGO\ QXPEHU RI ORZHU WLPH HVWLPDWHV LQ WKHLU GLVWULEXWLRQV $FWLYLW\ D EXGJHW SUHSDUDWLRQf ZDV UDQNHG WKLUG DPRQJ WKH DFWLYLWLHV ZLWK SHUFHQW RI LWV HVWLPDWHV ZLWKLQ WKH SHUFHQW LQWHUYDO $FWLYLW\ E IXQG UDLVLQJf ZDV UDQNHG ODVW ZLWK SHUFHQW RI WKH HVWLPDWHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO /HJLWLPL]DWLRQ 6HH 7DEOH f $FWLYLW\ G LPSURYHPHQW RI LQVWLWXWLRQDO FRPPXQLFDWLRQ QHWZRUNf ZDV UDQNHG ILUVW ZLWK SHUFHQW RI LWV UHVSRQVHV RFFXUULQJ ZLWKLQ WKH SHUFHQW LQWHUYDO DV ZHOO DV SHUFHQW ZLWKLQ WKH LQWHUYDOV EHWZHHQ SHUFHQW $FWLYLWLHV F LPSURYLQJ KXPDQ UHODWLRQV DQG GLVWULFW PRUDOHf DQG DFWLYLW\ D RSHQQHVV LQ WKH GHFLVLRQPDNLQJ SURFHVVf ZHUH UDQNHG FORVH LQ VHFRQG DQG WKLUG SODFH ZLWK DQG SHUFHQW UHVSHFWLYHO\ LQ WKH LQWHUYDO SHUFHQW $OVR LPSRUWDQW LQ WKH UDQNLQJ RI F DQG D DUH WKH SHUFHQW RI UHVSRQVHV WKDW IHOO ZLWKLQ WKH SHUFHQW LQWHUYDOV IRU DFWLYLW\ D $FWLYLW\ E FRQVWLWXHQW SDUWLFLSDWLRQ LQ JRYHUQDQFHf ZDV UDQNHG ODVW ZLWK SHUFHQW RI WKH UHVSRQVHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO

PAGE 136

([WHUQDO 5HODWLRQV 6HH 7DEOH f $FWLYLWLHV F LQYROYHPHQW ZLWK FRPPXQLW\ JURXSVf DQG E LQYROYHPHQW ZLWK VWDWH DJHQFLHV DQG OHDGHUVf ZHUH UDQNHG FORVH LQ ILUVW DQG VHFRQG SODFH ZLWK ERWK DFKLHYLQJ D PDMRULW\ RI WKHLU UHVSRQVHV WR SHUFHQWf ZLWKLQ WKH SHUFHQW LQWHUYDO $FWLYLW\ F ZDV UDQNHG ILUVW ZLWK D VOLJKW HGJH WR SHUFHQWf RYHU E LQ WKH RYHU SHUFHQW UHVSRQVHV $FWLYLW\ H LQYROYHPHQW ZLWK SURIHVVLRQDO DVVRFLDWLRQVf ZDV UDQNHG WKLUG ZLWK SHUFHQW RI LWV UHVSRQVHV RFFXUULQJ ZLWKLQ WKH SHUFHQW LQWHUYDO $FWLYLW\ D LQYROYHPHQW ZLWK DFFUHGLWLQJ DJHQFLHVf ZDV UDQNHG IRXUWK ZLWK SHUFHQW RI LWV UHVSRQVHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO 7KH ODVW SODFH UDQNLQJ ZHQW WR DFWLYLW\ G LQYROYHPHQW ZLWK IHGHUDO DJHQFLHV DQG OHDGHUVf ZLWK SHUFHQW RI LWV UHVSRQVHV UDQNHG ZLWKLQ WKH SHUFHQW LQWHUYDO (GXFDWLRQDO /HDGHUVKLS 6HH 7DEOH f $FWLYLW\ D SUHVHQWLQJ SROLF\ UHFRPPHQGDWLRQV WR WKH %RDUGf ZDV FOHDUO\ UDQNHG ILUVW ZLWK SHUFHQW RI WKH UHVSRQVHV IDOOLQJ LQ LQWHUYDOV EHWZHHQ SHUFHQW $FWLYLWLHV E LQLWLDWLRQ RI HGXFDWLRQDO SROLF\f DQG F SURYLGLQJ PRWLYDWLRQDO OHDGHUVKLS WR IDFXOW\ DQG VWDIIf ZHUH FORVH LQ WKH VHFRQG DQG WKLUG SRVLWLRQ ZLWK ERWK DFWLYLWLHV KDYLQJ D PDMRULW\ DQG SHUFHQWf RI WKHLU UHVSRQVHV IDOO ZLWKLQ WKH SHUFHQW LQWHUYDO $FWLYLW\ E UHFHLYHG DQ DGYDQWDJH LQ UDQNLQJV RYHU SHUFHQW WR SHUFHQWf $FWLYLW\ G DFWLYLWLHV ZLWK VWXGHQWV f ZDV UDQNHG

PAGE 137

IRXUWK ZLWK D FOHDU PDMRULW\ SHUFHQWf RI UHVSRQVHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO (YDOXDWLRQ 6HH 7DEOH f $FWLYLWLHV H MXGJPHQWV FRQFHUQLQJ H[WHUQDO IRUFHVf E MXGJPHQWV RQ LQVWLWXWLRQDO HIILFLHQF\f DQG D HYDOXDWLYH MXGJPHQWV UHJDUGLQJ LQVWLWXWLRQDO SURJUHVVf DUH UDQNHG FORVH LQ WKH WRS WKUHH SRVLWLRQV ZLWK WKH PDMRULW\ RI WKHLU UHVSRQVHV RFFXUULQJ LQ WKH SHUFHQW LQWHUYDO $FWLYLW\ H KDG SHUFHQW LQ WKLV LQWHUYDO WR SHUFHQW IRU E DQG SHUFHQW IRU D 7KH ILUVW SODFH UDQNLQJ EHORQJV WR DFWLYLW\ H EHFDXVH RI LWV DGYDQWDJH WR WR SHUFHQW UHVSHFWLYHO\f RYHU E DQG D LQ WKH LQWHUYDOV RYHU SHUFHQW $FWLYLW\ G DVVHVVPHQW RI SUREOHPVf ZDV UDQNHG IRXUWK ZLWK SHUFHQW RI LWV UHVSRQVHV ZLWKLQ WKH RQH LQWHUYDO RI SHUFHQW $FWLYLW\ F MXGJPHQWV RI SHUVRQQHO PDWWHUVf ZDV UDQNHG ODVW LQ WKH FDWHJRU\ ZLWK SHUFHQW RI LWV UHVSRQVHV UDQJLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO ,Q 3DUW ,, RI WKH 6WUXFWXUHG ,QWHUYLHZ *XLGH HDFK SDUWLFLSDQW ZDV UHDG D OLVW RI WZHQW\IRXU LWHPV HDFK LWHP UHSUHVHQWLQJ RQH IXQFWLRQDO UROH WKDW LV IUHTXHQWO\ VLWHG DV DSSOLFDEOH WR FRPn PXQLW\ FROOHJH FKLHI H[HFXWLYH RIILFHUV VHH $SSHQGL[ $f ,Q UHJDUG WR WKHLU SHUFHSWLRQV RI WKH UROH RI WKH &KDQFHOORU DW WKH 'DOODV &RXQW\ 'LVWULFW HDFK SDUWLFLSDQW ZDV DVNHG WR UHVSRQG WR HDFK LWHP E\ LQGLFDWLQJ RQH RU PRUH RI WKH IROORZLQJ 3HUVRQDO LQYROYHPHQW E\ WKH &KDQFHOORU 3L UHFWL\ GHOHJDWHG E\ WKH &KDQFHOORU

PAGE 138

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f RI WKH UHVSRQGHQWV UDQNHG WKLV LWHP DV D GLUHFW IXQFWLRQ RI WKH &KDQFHOORU 7KLV FKRLFH ZDV VWUHQJWKHQHG E\ D SHUFHQW IUHTXHQF\ LQ WKH FKRLFH DUHD RI GLUHFW DQG GHOHJDWHG FKRLFH DQG FRPELQHGf

PAGE 139

7$%/( '(*5(( 2) (;(&87,9( ,192/9(0(17 ,1 6(/(&7(' )81&7,216 $7 '$//$6 &2817< &20081,7< &2//(*( ',675,&7 5HVSRQVH &DWHJRULHV DQG DQG $OO 4XHVWLRQ 1XPEHU I b I b I b I b I b I b 1RWHf§6HH $SSHQGL[ $ IRU 4XHVWLRQV

PAGE 140

,WHP 'HWHUPLQH ZKDW HGXFDWLRQDO VHUYLFHV WKH GLVWULFW VKRXOG UHQGHU WR WKH FRPPXQLW\ 1R FOHDU PDMRULW\ ZDV DUULYHG DW LQ DQ\ VLQJOH UHVSRQVH FDWHJRU\ IRU WKLV LWHP +RZHYHU SHUFHQW FKRVH HLWKHU RU LQGLFDWLQJ WKHLU SHUFHSWLRQ WKDW WKH &KDQFHOORU KDG GLUHFW DQG GHOHJDWHG UHVSRQVLELOLWLHV LQ UHJDUG WR WKLV IXQFWLRQ ,WHP 3URYLGH PDWHULDOV DQG HTXLSPHQW IRU WKH LQVWUXFWLRQDO SURJUDPV RI WKH GLVWULFW 1RQH RI WKH UHVSRQGHQWV UDQNHG WKLV DV D GLUHFW IXQFWLRQ RI WKH &KDQFHOORU 7+H PDMRULW\ SHUFHQW RI WKHP LQGLFDWHG WKDW LW ZDV QRW DVVRFLDWHG ZLWK GLUHFW &KDQFHOORU UHVSRQVLELOLWLHV FKRLFH f ,WHP 3UHSDUH DFFUHGLWDWLRQ PDWHULDOV 7KLV LWHP GLG QRW SURGXFH D FOHDU PDMRULW\ IRU DQ\ RQH UHVSRQVH FDWHJRU\ DOWKRXJK SHUFHQW RI WKH UHVSRQGHQWV GLG VHOHFW D GHOHJDWHG IXQFWLRQ IRU WKH &KDQFHOORU 2QO\ SHUFHQW RI WKH UHVSRQGHQWV SHUFHLYHG WKLV DV D GLUHFW IXQFWLRQ RI WKH &KDQFHOORU ,WHP 3URYLGH RSSRUWXQLWLHV IRU VWDII PHPEHUV WR SDUWLFLSDWH LQ YDULRXV FRPPXQLW\ DFWLYLWLHV $ PDMRULW\ UDQNHG WKLV LWHP DV QRW D GLUHFW UHVSRQVLELOLW\ RI WKH &KDQFHOORU 2QO\ SHUFHQW RI WKH UHVSRQGHQWV EHOLHYHG WKLV ZDV D GLUHFW IXQFWLRQ RI WKH &KDQFHOORU ,WHP ([SODLQ WKH ERDUG SROLF\ WR FROOHJH DQG GLVWULFW VWDII $OWKRXJK WKH GHOHJDWHG UHVSRQVH QXPEHU f DSSHDUHG PRVW

PAGE 141

IUHTXHQWO\ ZLWK SHUFHQW WKH SHUFHQW GLUHFW LQYROYHPHQW UHVSRQVH FRPELQHG ZLWK WKH ERWK GHOHJDWHG DQG GLUHFW LQYROYHPHQW FDWHJRU\ WR SURGXFH D VWURQJ SHUFHQW FKRLFH ,WHP 'HIHQG IDFXOW\ PHPEHUV WR WKH ERDUG ZKHQ DSSURSULDWH RU QHFHVVDU\ 7KLV LWHP SURGXFHG D YHU\ FOHDU PDMRULW\ IRU FKRLFH QXPEHU RQH LQGLFDWLQJ WKH SUHVHQFH RI D VWURQJ SHUFHSWLRQ RI GLUHFW LQYROYHPHQW E\ WKH &KDQFHOORU LQ WKLV IXQFWLRQ ,WHP 'HYHORS DQG VXSHUYLVH D SURJUDP ZKLFK IRVWHUV DQG HQVXUHV D GHVLUDEOH FOLPDWH IRU ZRUNLQJ UHODWLRQV ZLWKLQ WKH GLVWULFW 7KLV LWHP SURGXFHG D ZLGH GLVSHUVLRQ RI UHVSRQVHV ZLWK SHUFHQW LQGLFDWLQJ LW ZDV ERWK D GLUHFW IXQFWLRQ DQG D GHOHJDWHG IXQFWLRQ DQG SHUFHQW LQGLFDWLQJ LW ZDV D GHOHJDWHG IXQFWLRQ $QRWKHU SHUFHQW UHVSRQGHG WKDW LW ZDV QRW D GLUHFW UHVSRQVLELOLW\ RI WKH &KDQFHOORU ,WHP 'HYHORS D SURJUDP RI FRRUGLQDWLRQ ZLWK IRXU\HDU FRO HJHV 7KLV LWHP DOVR SURGXFHG D ZLGH GLVSHUVLRQ RI UHVSRQVHV ZLWK WKH VHOHFWLRQV IDYRULQJ GHOHJDWLRQ E\ D SHUFHQW UHVSRQVH IRU GLUHFWO\ GHOHJDWHG FKRLFH f DQG SHUFHQW IRU FKRLFH QRW D GLUHFW UHVSRQVLELOLW\f ,WHP 3URYLGH VXSHUYLVLRQ RI LQVWUXFWLRQ ZLWKLQ WKH GLVWULFW

PAGE 142

7KH IXQFWLRQ ZDV UDQNHG DV QRW D GLUHFW UHVSRQVLELOLW\ RI WKH &KDQFHOORU E\ SHUFHQW ZLWK DQRWKHU SHUFHQW LQGLn FDWLQJ LW ZDV D GHOHJDWHG IXQFWLRQ ,WHP 0DNH FRVW DQDO\VLV RI FXUULFXOD $ PDMRULW\ RI WKH UHVSRQVHV LQGLFDWHG WKLV ZDV D GHOHJDWHG IXQFWLRQ VXSSRUWHG E\ DQRWKHU SHUFHQW WKDW UDQNHG LW DV HLWKHU YHU\ GHOHJDWHG FKRLFH DQG f RU DV QRW D GLUHFW UHVn SRQVLELOLW\ RI WKH &KDQFHOORU ,WHP 'HYHORS SXUFKDVLQJ SODQV IRU WKH GLVWULFW $ FOHDU PDMRULW\ SHUFHQWf SHUFHLYHG WKLV DV D GHOHJDWHG IXQFWLRQ $QRWKHU SHUFHQW UDQNHG LW HLWKHU FKRLFH DQG RU FKRLFH LQGLFDWLQJ HYHQ OHVV H[HFXWLYH LQYROYHPHQW ,WHP *LYH VSHHFKHV WR ORFDO FLYLF RUJDQL]DWLRQV $ PDMRULW\ SHUFHQWf RI UHVSRQVHV FKRVH WKLV LWHP WR EH ERWK D GLUHFW IXQFWLRQ RI WKH &KDQFHOORU DQG D GHOHJDWHG IXQFWLRQ $QRWKHU SHUFHQW GLG KRZHYHU LQGLFDWH WKH\ SHUFHLYHG LW WR EH D GLUHFW IXQFWLRQ RI WKH &KDQFHOORU ,WHP &RPSLOH UHTXHVWV IRU VXSSOLHV DQG HTXLSPHQW IRU EXGJHWDU\ FRQVLGHUDWLRQ $ VXEVWDQWLDO PDMRULW\ SHUFHQWf UDQNHG WKLV LWHP DV QRW D GLUHFW UHVSRQVLELOLW\ RI WKH &KDQFHOORU FKRLFH f 1R UHVSRQGHQWV LQGLFDWHG WKH\ SHUFHLYHG WKLV WR EH D GLUHFW FKLHI H[HFXWLYH IXQFWLRQ ,WHP )RUPXODWH FRPPXQLW\ FROOHJH SROLF\ IRU WKH GLVWULFW $OWKRXJK QR PDMRULW\ ZDV LQGLFDWHG IRU DQ\ RQH UHVSRQVH FDWHJRU\ D YHU\ FOHDU SHUFHSWLRQ RI H[HFXWLYH LQYROYHPHQW ZDV LQGLFDWHG ZLWK

PAGE 143

WKH SHUFHQW FKRLFH RI WKH LWHP DV D GLUHFW IXQFWLRQ DQG SHUFHQW LGHQWLI\LQJ LW DV ERWK D GLUHFW DQG D GHOHJDWHG IXQFWLRQ FKRLFH DQG f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f ,WHP 'HWHUPLQH ZKDW FRPPXQLW\ SUHVVXUHV DIIHFW WKH HGXFDWLRQDO SURJUDP RI WKH GLVWULFW 1R FOHDU PDMRULW\ FKRLFH HPHUJHG DOWKRXJK VRPH SHUFHSWLRQ RI WKH &KDQFHOORUnV UROH ZDV LQGLFDWHG E\ WKH SHUFHQW UHVSRQVH FKRRVLQJ GLUHFW IXQFWLRQ DQG WKH SHUFHQW FKRRVLQJ ERWK D GLUHFW DQG GHOHJDWHG IXQFWLRQ ,WHP (QFRXUDJH FROOHJHGLVWULFW VWDII WR SDUWLFLSDWH LQ FRPPXQLW\ FRXQFLOV DQG SURMHFWV $OWKRXJK WKHUH ZDV VRPH GLVSHUVLRQ RI WKLV LWHP SHUFHQW RI WKH UHVSRQGHQWV SHUFHLYHG WKLV QRW WR EH D GLUHFW UHVSRQVLELOLW\ RI WKH &KDQFHOORU RU DW OHDVW WR EH YHU\ GHOHJDWHG FKRLFH DQG f

PAGE 144

,WHP 'HYHORS D SURJUDP IRU IDFXOW\ SDUWLFLSDWLRQ LQ FROOHJH DQG GLVWULFW GHFLVLRQ PDNLQ 7KLV LWHP JHQHUDWHG FRQVLGHUDEOH GLVSHUVLRQ LQ UHVSRQVH ZLWK WKH PDMRULW\ SHUFHLYLQJ LW DV HLWKHU GHOHJDWHG SHUFHQWf QRW D GLUHFW UHVSRQVLELOLW\ RI WKH &KDQFHOORU SHUFHQWf RU D FRPELQDWLRQ RI WKH WZR FKRLFHV SHUFHQWf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n FHSWLRQV RI WKH UROHV DQG IXQFWLRQV RI WKH &KDQFHOORU RI WKH 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW 7KH SDUWLFLSDQWV ZHUH HQFRXUDJHG WR VSHDN RSHQO\ DERXW WKHLU SHUFHSWLRQV DQG WR DVN IRU FODULILFDWLRQ LI QHFHVVDU\ 7KH UHVHDUFKHU UHFHLYHG FRPSOHWH FRRSHUDWLRQ IURP DOO RI WKH SDUWLFLSDQWV 7KH UHVXOWV RI WKH VHYHQ GLVFXVVLRQ TXHVWLRQV DUH SUHVHQWHG LQ 7DEOH 8QGHU HDFK TXHVWLRQ WKH UHVSRQVHV DUH DUUDQJHG DFFRUGLQJ

PAGE 145

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n PXQLW\ EXVLQHVV DQG SROLWLFDO OHDGHUV 3ULPDU\ SROLF\ IRUPXODWRU

PAGE 146

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f IXQFWLRQV DQG UHVSRQVLELOLWLHV" 'DOODV &RPPXQLW\ SRZHU VWUXFWXUH (OHFWRUDWH WKURXJK HOHFWLRQ RI ERDUG PHPEHUVf

PAGE 147

7$%/( &217,18(' ,Q \RXU RSLQLRQ DUH WKH IXQFWLRQV DQG UHVSRQVLELOLWLHV RI WKH &KDQFHOORU VSHFLILFDOO\ DQG FOHDUO\ HQXPHUDWHG RU DUH WKH\ EURDG DQG JHQHUDO LQ QDWXUH" $UH WKHUH VRPH HOHPHQWV RU FRPSRQHQWV RI WKH FRPPXQLW\ FROOHJH H[SHULHQFH LQ WKLV GLVWULFW LH %RDUG &KDQFHOORU 3UHVLGHQWV $GPLQLVWUDWLRQ IDFXOW\ FRPPXQLW\ HWFf WKDW \RX EHOLHYH FRQWULEXWH PRUH WKDQ RWKHU FRPSRQHQWV WRZDUG WKH VXFFHVVIXO DFFRPSOLVKPHQWV RI WKH GLVWULFW" ,I \HV WKHQ FRXOG \RX UDQN WKHP" %URDG DQG JHQHUDO ZLWK D KLJK GHJUHH RI IOH[LELOLW\ &OHDUO\ VWDWHG DQG HQXPHUDWHG EXW LQ YHU\ EURDG WHUPV 7RWDO RI 7RS &KDQFHO ORU %RDUG *HQHUDO $GPLQLVWUDWLRQ3UHVLGHQWV &RPPXQLW\ )DFXOW\ VW 0RVW ,PSRUWDQW &KDQFHOORU &RPPXQLW\ /HDGHUV %RDUG RI 7UXVWHHV &ROOHJH 3UHVLGHQWV )DFXOW\ QG 0RVW ,PSRUWDQW %RDUG RI 7UXVWHHV 3UHVLGHQWV DQG *HQHUDO $GPLQLVWUDWLRQ &KDQFHOORU )DFXOW\ &RPPXQLW\

PAGE 148

7$%/( &217,18(' UG 0RVW ,PSRUWDQW &KDQFHOORU %RDUG RI 7UXVWHHV &ROOHJH 3UHVLGHQWV 9LFH &KDQFHOORUV &RPPXQLW\ WK 0RVW ,PSRUWDQW &ROOHJH 3UHVLGHQWV )DFXOW\ &KDQFHOORU &RPPXQLW\ $OO FRPSRQHQWV DUH LQWHUGHSHQGHQW DQG LQVHSDUDEOH ,Q \RXU RSLQLRQ LV WKH JRYHUQDQFH VWUXFWXUH RI WKH GLVWULFW FHQWUDOL]HG RU GHFHQWUDOL]HG" 3OHDVH &HQWUDOL]HG FRQWURO RI ERWK SROLF\ DQG LPSOHPHQWDWLRQ DUH DW WKH GLVWULFW OHYHO FODULI\ \RXU GHILQLWLRQV DQG XVH RI WKH WHUPV FHQn WUDOL]HG DQG GHFHQWUDOL]HG %RWK FHQWUDOL]HG GLVWULFW SROLF\ ZLWK GHFHQWUDOL]HG DXWKRULW\ IRU SROLF\ LPSOHPHQWDWLRQ 'HFHQWUDOL]HG DOORZV LQGLYLGXDO FROOHJH DXWRQRP\ &2

PAGE 149

7$%/( &217,18(' $UH WKHUH DQ\ DVSHFWV RI WKH &KDQFHOORUnV UROHV DQG IXQFWLRQV WKDW \RX ZRXOG FDUH WR FRPPHQW RQ WKDW KDYH QRW GLVFXVVHG ZLWK \RX RU WKDW FRXOG QRW JOHDQ IURP \RXU UHVSRQVHV WR WKH TXHVWLRQQDLUH \RX FRPSOHWHG" 2QO\ WKH IROORZLQJ UHVSRQVH DUHDV RFFXUUHG IUHTXHQWO\ HQRXJK WR WDEXODWH FOHDUO\ WKH GLVWULFW LV EXUHDXFUDWLFDOO\ VWUXFWXUHG DQG PDMRU GHFLVLRQPDNLQJ WDNHV SODFH DW WKH GLVWULFW OHYHO DOVR WKDW WKH GHJUHH RI FHQWUDOL]DWLRQ LV LQFUHDVLQJ ZLWK WLPH &2 &2

PAGE 150

WR WKHLU IUHTXHQF\ ZLWK WKH ILYH PRVW IUHTXHQW DQVZHUV EHLQJ WDEXODWHG E\ SHUFHQW DQG IUHTXHQF\ 7KH IROORZLQJ GLVFXVVLRQ RI WKH UHVXOWV RI 7DEOH DUH SUHVHQWHG TXHVWLRQ E\ TXHVWLRQ 4XHVWLRQ ,Q D EULHI SKUDVH KRZ ZRXOG \RX EHVW GHVFULEH WKH RYHUDOO UROH RI WKH &KDQFHOORU RI WKLV GLVWULFW" 7KLV TXHVWLRQ GLG QRW SURGXFH D PDMRULW\ UHVSRQVH IRU DQ\ VLQJOH DQVZHU DOWKRXJK SHUFHQW RI WKH UHVSRQVHV FDQ EH JURXSHG LQWR RQH RI WZR DQVZHUV VHH 7DEOH f 7KH DQVZHUV ZLWK WKH JUHDWHVW IUHTXHQF\ RI RFFXUUHQFH ZHUH &KLHI H[HFXWLYHDGPLQLVWUDWRU RI WKH GLVWULFW SHUFHQWf $XWKRULWDULDQSDWHUQDOLVWLF PDQDJHU SHUFHQWf (GXFDWLRQDO OHDGHU JLYLQJ GLUHFWLRQ IRU SROLF\ GHYHORSn PHQW ILVFDO SODQQLQJ DQG JHWWLQJ WKH ULJKW SHUVRQQHO LQ WKH ULJKW SODFH WR KHOS WKH GLVWULFW SHUFHQWf 3ROLWLFLDQ JDWKHULQJ VXSSRUW IRU WKH GLVWULFW WKURXJK FRQWDFWV ZLWK FRPPXQLW\ EXVLQHVV DQG SROLWLFDO OHDGHUV SHUFHQWf 3ULPDU\ SROLF\ IRUPXODWRU SHUFHQWf 7KHVH UHVSRQVHV FDQ DOVR EH JURXSHG WR VKRZ WKDW SHUFHQW UHVSRQVHV DQG f SHUFHLYHG WKH &KDQFHOORUnV UROH DV PDQDJHULDO LQ QDWXUH $QRWKHU VXFK JURXSLQJ FDQ EH PDGH ZLWK DQVZHUV DQG WR IRUP D SHUFHQW UHVSRQVH IUHTXHQF\ IRU SHUFHLYLQJ KLV UROH DV OHDGHU DQG SROLF\ IRUPXODWRU 4XHVWLRQ :KDW LQ \RXU RSLQLRQ LV WKH PRVW LPSRUWDQW IXQFWLRQ WKH &KDQFHOORU QRZ SHUIRUPV" $OWKRXJK QR FOHDU PDMRULW\

PAGE 151

UHVSRQVH ZDV LGHQWLILHG IRU WKLV TXHVWLRQ WKH IROORZLQJ WZR UHVSRQVHV ZHUH SUHGRPLQDQW VHH 7DEOH f (GXFDWLRQDO SODQQHU DQG OHDGHU VHW GLUHFWLRQ RI WKH GLVWULFW DQG NQRZ ZKDW LV QHHGHG SRVVLEOH DQG ZLWKLQ WKH UHVWUDLQWV RI WKH FRPPXQLW\ UHVRXUFHV SURYLGHV RYHUDOO GLVWULFW JXLGDQFH SHUFHQWf 5HFRPPHQG DQG LPSOHPHQW %RDUG SROLF\ UHSUHVHQW 'LVWULFW QHHGV WR WKH %RDUG DQG IRUP D JRRG ZRUNLQJ UHODWLRQVKLS ZLWK WKHP SHUFHQWf 7KHVH WZR UHVSRQVH FDWHJRULHV FRQWDLQHG SHUFHQW RI WKH UHVSRQVHV ZLWK WKH RWKHU SHUFHQW UDWKHU HTXDOO\ GLYLGHG DPRQJ WKH SHUn FHLYHG UROHV RI SROLWLFLDQ IXQG UDLVHU DQG SXEOLF UHODWLRQV RIILFHU 4XHVWLRQ ,Q \RXU RSLQLRQ XSRQ ZKDW EDVLV GRHV WKH &KDQFHOORU H[HUFLVH KLV YDULRXV IXQFWLRQV DQG UHVSRQVLELOLWLHV LH KLV VRXUFH RI DXWKRULW\f" $ FOHDU PDMRULW\ RI SHUFHQW SHUFHLYHG WKH %RDUG RI 7UXVWHHV DV WKH EDVLV IRU WKH &KDQFHOORUnV DXWKRULW\ VHH 7DEOH f 6LJQLILFDQW LQWKH UHVSRQVHV ZDV WKH SHUFHQW RI WKH UHVSRQGHQWV ZKR LGHQWLILHG WKH 'DOODV FRPPXQLW\ SRZHU VWUXFWXUH DV WKH VRXUFH RI KLV DXWKRULW\ 4XHVWLRQ ,Q \RXU RSLQLRQ DUH WKH IXQFWLRQV DQG UHVSRQVLn ELOLWLHV RI WKH &KDQFHOORU VSHFLILFDOO\ DQG FOHDUO\ HQXPHUDWHG RU DUH WKH\ EURDG DQG JHQHUDO LQ QDWXUH" 7KLV TXHVWLRQ UHVXOWHG LQ SHUFHQW RI WKH UHVSRQGHQWV SHUFHLYLQJ WKH &KDQFHOORUnV UROH DV EURDG DQG JHQHUDO ZKLOH SHUFHQW SHUFHLYHG KLV UROH DV EHLQJ FOHDUO\ VWDWHG DQG HQXPHUDWHG DOWKRXJK LQ EURDG WHUPVf VHH 7DEOH f

PAGE 152

4XHVWLRQ $UH WKHUH VRPH HOHPHQWV RU FRPSRQHQWV RI WKH FRPPXQLW\ FROOHJH H[SHULHQFH LQ WKLV GLVWULFW LH WKH %RDUG &KDQFHOORU 3UHVLGHQWV IDFXOW\ FRPPXQLW\ HWFf WKDW \RX EHOLHYH FRQWULEXWH PRUH WKDQ RWKHU FRPSRQHQWV WRZDUG WKH VXFFHVVIXO DFFRPSOLVKPHQWV RI WKH GLVWULFW" 7KLV TXHVWLRQ SURYHG LQWHUHVWLQJ ZLWK WKH UHVSRQGHQWV VHOHFWLQJ ILYH PDMRU FRPSRQHQWV DQG UDQNLQJ HDFK VRPHZKHUH EHWZHHQ ILUVW DQG IRXUWK LQ LPSRUWDQFH VHH 7DEOH f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f

PAGE 153

" 7KLV TXHVWLRQ UHVXOWHG LQ D GLVWLQFWLRQ EHLQJ PDGH E\ WKH UHVn SRQGHQWV EHWZHHQ SROLF\ DQG LPSOHPHQWDWLRQ RU DGPLQLVWUDWLRQ $OWKRXJK SHUFHQW VDZ WKH GLVWULFW DV FHQWUDOL]HG LQ ERWK SROLF\ DQG DGPLQLVWUDWLRQ DQRWKHU SHUFHQW SHUFHLYHG GLVWULFW SROLF\ DV FHQWUDOL]HG ZLWK WKH DXWKRULW\ IRU LPSOHPHQWDWLRQ EHLQJ GHFHQn WUDOL]HG 2QO\ SHUFHQW EHOLHYHG WKH GLVWULFW ZDV GHFHQWUDOL]HG DQG DOORZHG LQGLYLGXDO FROOHJH DXWRQRP\ 4XHVWLRQ 7KLV TXHVWLRQ DVNHG IRU DQ\ IXUWKHU FRPPHQWV WKH SDUWLFLSDQWV FDUHG WR PDNH UHJDUGLQJ WKHLU SHUFHSWLRQV RI WKH UROHV DQG IXQFWLRQV RI WKH &KDQFHOORU 2QO\ WKH IROORZLQJ EURDG UHVSRQVH RFFXUUHG ZLWK HQRXJK IUHTXHQF\ WR PDNH WDEXODWLRQ PHDQLQJIXO WKH GLVWULFW LV EXUHDXFUDWLFDOO\ VWUXFWXUHG DQG PDMRU GHFLVLRQPDNLQJ WDNHV SODFH DW WKH GLVWULFW OHYHO DOVR WKDW WKH GHJUHH RI FHQn WUDOL]DWLRQ LV LQFUHDVLQJ ZLWK WLPH UHVSRQGHQWV SHUFHQW RI WKH SDUWLFLSDQWVf 6XPPDWLRQ DQG *HQHUDO 2EVHUYDWLRQV RQ WKH )XQFWLRQV RI WKH &KDQFHOORU 7KH 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW DSSHDUHG WR KDYH D ZHOO GHILQHG DQG HIIHFWLYH JRYHUQDQFH VWUXFWXUH FDSDEOH RI DGPLQLVWHULQJ D JHRJUDSKLFDOO\ YHU\ GLVSHUVHG DQG HGXFDWLRQDOO\ GLYHUVLILHG FRPPXQLW\ FROOHJH GLVWULFW 7KH FRPPLWPHQW RI WKH FRPPXQLW\ WR WKH GHYHORSPHQW DQG VXFFHVVIXO RSHUDWLRQ RI WKH GLVWULFW VHHPV WR KDYH EHHQ DQG FRQWLQXHV WR EH WKH PRVW VLJQLILFDQW IDFWRU LQ WKH JRYHUQDQFH RI WKH GLVWULFW 7KLV REVHUYDWLRQ LV VXSSRUWHG E\ WKH GLVWULFW KLVWRU\ RI UDSLG DQG PDMRU H[SDQVLRQ RI FROOHJHV DQG

PAGE 154

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

PAGE 155

7KH GHFLVLRQPDNLQJ SURFHVV IRU WKH GLVWULFW VHHPHG WR EH FOHDUO\ SHUFHLYHG ZLWK YHU\ OLWWOH SHUFHLYHG LQYROYHPHQW RI WKH &KDQFHOORU LQ OHJLWLPL]LQJ RI WKH SROLFLHV DQG GHFLVLRQV RI WKH GLVWULFW 7KH SHUFHSWLRQV RI KRZ WKH &KDQFHOORU GLYLGHV KLV WLPH DPRQJ YDULRXV DGPLQLVWUDWLYH DFWLYLWLHV UHYHDOHG WKDW QR VLQJOH FDWHJRU\ RI DFWLYLWLHV ZDV VHHQ DV PRQRSROL]LQJ KLV WLPH ZLWK PRVW HVWLPDWHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO 7KH SDUWLFLSDQWV SHUFHLYHG WKH &KDQFHOORUn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

PAGE 156

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f RI 0LDPL'DGH &RPPXQLW\ &ROOHJH ,Q WKH VHFRQG VHFWLRQ WKH DFWXDO DQG SHUFHLYHG UROH RI WKH FKLHI H[HFXWLYH RIILFHU &KDQFHOORUf RI WKH 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW LV SUHVHQWHG 6HFWLRQ WKUHH LV D FRPSDULVRQ RI WKH SHUFHLYHG UROHV RI WKH FKLHI H[HFXWLYH RIILFHUV LQ WKH WZR GLVWULFWV VWXGLHG DQG D FRPSDULVRQ RI WKH DFFXUDF\ RI WKRVH SHUFHSWLRQV 7KH FKDSWHU LV FRQFOXGHG ZLWK D VXPPDWLRQ RI WKH ILQGLQJV DQG FRPSDULVRQV RI WKH WZR GLVWULFWVn FKLHI H[HFXWLYH RIILFHUV

PAGE 157

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n SHUFHSWLRQV RI WKH DPRXQW RI WLPH WKH 3UHVLGHQW VSHQW ZRUNLQJ LQ HDFK RI WKH FDWHJRULHV VHH 7DEOH f $OWKRXJK WKH FDWHJRU\ RI H[WHUQDO UHODWLRQV LV UDQNHG VOLJKWO\ KLJKHU LQ WLPH VSHQW WKDQ

PAGE 158

SODQQLQJ WKH WZR FDWHJRULHV DUH UDQNHG KLJKHU WKDQ DOO IRXU RI WKH UHPDLQLQJ FDWHJRULHV :LWKLQ WKH FDWHJRU\ RI SODQQLQJ WKH VSHFLILF DFWLYLW\ RI VHWWLQJ RSHUDWLRQDO SULRULWLHV ZDV PRVW IUHTXHQWO\ SHUFHLYHG DV WKH PRVW LPSRUWDQW 7KH DFWLYLW\ RI ORQJUDQJH SODQQLQJ ZDV JHQHUDOO\ UHFRJQL]HG DV VHFRQG LQ LPSRUWDQFH 7KH DFWXDO UROH RI WKH 3UHVLGHQW RI 0LDPL'DGH &RPPXQLW\ &ROOHJH ZDV LQWHUSUHWHG DQG FODULILHG E\ WKH 3UHVLGHQWf DV WKDW RI DQ HGXFDWLRQDO PDQDJHU DQG DQ RUJDQL]DWLRQDO JHQHUDOLVW $FFRUGLQJ WR WKLV UROH SRUWUD\DO WKH 3UHVLGHQW PXVW SXW WRJHWKHU WKH SURSHU WHDP WR RSHUDWH WKH FROOHJH HIIHFWLYHO\ +H PXVW DOVR EH IOH[LEOH HQRXJK WR DFFRPPRGDWH DQG IXOILOO WKH UHTXLUHPHQWV RI VHYHUDO VSHFLILF UROHV $PRQJ WKHVH UROHV DUH LQLWLDWRU RI SROLF\ WR WKH %RDUG RI 7UXVWHHV HGXFDWLRQDO SODQQHU IRU WKH FROOHJH DQG OLDVRQ RIILFHU WR WKH FRPPXQLW\ ,Q UHJDUG WR WLPH GLVWULEXWLRQ DPRQJ YDULRXV H[HFXWLYH UROHV LW ZDV EHOLHYHG WKDW D UHDOLVWLF HVWLPDWH GHSHQGV RQ WKH SDUWLFXODU WLPH RI \HDU DQG WKH VWDJH RI GHYHORSPHQW RI WKH LQVWLWXWLRQ 3HUFHLYHG 'LUHFW DQG 'HOHJDWHG )XQFWLRQV $FFRUGLQJ WR WKH SHUFHSWLRQV RI WKH SDUWLFLSDQWV WKHUH ZHUH RQO\ WKUHH IXQFWLRQDO UROHV WKDW ZHUH JHQHUDOO\ FRQVLGHUHG GLUHFW IXQFWLRQV RI WKH 3UHVLGHQW 7KRVH IXQFWLRQV ZHUH WR KDYH LQGLYLGXDO PHHWLQJV ZLWK SHUVRQV LQ WKH FRPPXQLW\ ZKR DUH FRQVLGHUHG LQIOXHQWLDO LQ KHOSLQJ WKH FROOHJH VHFXUH LWV REMHFWLYH WR IRUPXODWH SROLF\ IRU

PAGE 159

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n WUDOL]HG GHOHJDWHGf IRU LPSOHPHQWDWLRQ DQG DGPLQLVWUDWLRQ 7KH

PAGE 160

UHODWLRQVKLS RI WKH 3UHVLGHQW WR WKH YDULRXV FDPSXV FKLHI H[HFXWLYH RIILFHUV YLFHSUHVLGHQWVf ZDV RQH RI VXERUGLQDWLRQ E\ WKH YLFH SUHVLGHQWV VLQFH WKH\ DUH SDUW RI WKH 3UHVLGHQWn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

PAGE 161

JHQHUDOO\ VXSSRUWHG E\ WKH SDUWLFLSDQWVn SHUFHSWLRQV RI WKH WLPH WKH &KDQFHOORU VSHQW ZRUNLQJ LQ HDFK RI WKH FDWHJRULHV 6LJQLILFDQWO\ WKH HVWLPDWHV RI WLPH VSHQW LQ YDULRXV DFWLYLWLHV LV FORVHO\ GLVn WULEXWHG DPRQJ WKH FDWHJRULHV RI ILQDQFH OHJLWLPL]DWLRQ DQG H[WHUQDO UHODWLRQV :LWKLQ WKH FDWHJRU\ RI SODQQLQJ WKH VSHFLILF DFWLYLW\ RI ORQJUDQJH SODQQLQJ ZDV FOHDUO\ SHUFHLYHG DV WKH PRVW LPSRUWDQW 7KH SHUFHSWLRQ LV VWUHQJWKHQHG E\ WKH JHQHUDO UHFRJQLWLRQ RI SODQQLQJ RI SK\VLFDO IDFLOLWLHV DV WKH VHFRQG PRVW LPSRUWDQW DFWLYLW\ ZLWKLQ WKH FDWHJRU\ RI SODQQLQJ 7KH DFWXDO UROH RI WKH &KDQFHOORU RI WKH 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW ZDV LQWHUSUHWHG DQG FODULILHG E\ WKH &KDQFHOORUf DV D FKLHI H[HFXWLYH RIILFHU RI WKH GLVWULFW RSHUDWLQJ XQGHU WKH UROH SHUFHSWLRQ RI D FHQWULVW LQ WKHRU\ DQG D SUDJPDWLVW LQ RSHUDWLRQ $FFRUGLQJ WR WKLV UROH SHUFHSWLRQ WKH &KDQFHOORU VHHNV WR EXLOG D UHODWLRQVKLS RI FRQILGHQFH EHWZHHQ WKH %RDUG RI 7XUVWHHV DQG WKH 'LVWULFW VR WKDW WKH 'LVWULFW FDQ DFKLHYH DQG PDLQWDLQ WKH VXSSRUW QHFHVVDU\ WR DFKLHYH WKH H[FHOOHQFH GHVLUHG 6SHFLILFDOO\ WKH &KDQFHOORUnV IXQFWLRQV LQFOXGH WKH VHOHFWLRQ RI JRRG DGPLQLVWUDWLYH OHDGHUVKLS IRU WKH WRS VXERUGLQDWH SRVLWLRQV LQ WKH GLVWULFW WKH PDLQWHQDQFH RI SURGXFWLYHFRQVWUXFWLYH UHODn WLRQVKLSV ZLWK WKH %RDUG DQG WR PDLQWDLQ RSHQ DQG HIIHFWLYH FRPPXQLFDWLRQ ZLWK WKH FRPPXQLW\ ,W ZDV SHUFHLYHG E\ WKH &KDQFHOORUf WKDW D PDMRULW\ RI WKH &KDQFHOORUnV WLPH ZDV VSHQW LQ DFWLYLWLHV

PAGE 162

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n SXODWRU RI YDULDEOHV LQ RUGHU WR DFKLHYH DQ HIILFLHQW HIIHFWLYH DQG

PAGE 163

RYHUDOO VXFFHVVIXO GLVWULFW RSHUDWLRQ 3HUFHLYHG DV WKH PDMRU PRWLYDWLQJ IRUFH RI WKH GLVWULFW WKH &KDQFHOORU ZDV JHQHUDOO\ YLHZHG DV EHLQJ LQ FRQWURO RI WKH RSHUDWLRQ DQG GHFLVLRQPDNLQJ RI WKH GLVWULFW 7KLV ZDV HYLGHQW IURP WKH SDUWLFLSDQWVn SHUn FHSWLRQV WKDW WKH GLVWULFWnV GHFLVLRQPDNLQJ PDFKLQHU\ ZDV FHQn WUDOL]HG UHJDUGLQJ WKH HVWDEOLVKPHQW RI SROLF\ ZLWK GHFHQWUDOL]HG FROOHJHf DXWKRULW\ IRU WKH LPSOHPHQWDWLRQ DQG DGPLQLVWUDWLRQ RI GLVWULFW SROLF\ 7KH UHODWLRQVKLS RI WKH &KDQFHOORU WR WKH YDULRXV FROOHJH 3UHVLGHQWV ZDV FKDUDFWHUL]HG E\ WKH &KDQFHOORUnV VXSHUn RUGLQDWH SRVLWLRQ DQG E\ UHODWLYHO\ FRPSOHWH VXERUGLQDWLRQ RI WKH 3UHVLGHQWV WR WKH &KDQFHOORU 7KH 3UHVLGHQWV DUH SDUW RI WKH &KDQFHOORUnV DSSRLQWHG PDQDJHPHQW WHDP DQG UHSRUW WR D GLVWULFW YLFHFKDQFHOORU 2YHUDOO WKH &KDQFHOORUnV UROH VHHPHG WR EH SHUFHLYHG DV WKDW RI DQ HGXFDWLRQDO OHDGHUSODQQHU FKLHI SROLF\ LQLWLDWRU DQG FKLHI H[HFXWLYH RI WKH GLVWULFW &RPSDULVRQ RI WKH 3HUFHLYHG 5ROHV RI WKH &KLHI ([HFXWLYH 2IILFHUV LQ WKH 'LVWULFWV 6WXGLHG 3HUFHLYHG ,PSRUWDQFH RI $GPLQLVWUDWLYH &DWHJRULHV $ FRPSDULVRQ RI WKH PHGLDQ UDQNLQJV RI WKH DGPLQLVWUDWLYH FDWHJRULHV IURP ERWK GLVWULFWV VWXGLHG UHYHDOHG VRPH VLJQLILFDQW GLIIHUHQFHV LQ WKH EDVLF SHUFHSWLRQV RI WKH SDUWLFLSDQWV VHH )LJXUH f 7KH DGPLQLVWUDWLYH FDWHJRU\ RI SODQQLQJ ZDV SHUFHLYHG DV WKH PRVW LPSRUWDQW FDWHJRU\ LQ ERWK GLVWULFWV VWXGLHG +RZHYHU WKH

PAGE 164

$GPLQLVWUDWLYH &DWHJRU\ 0HGLDQ 5DQN 0LDPLf 0HGLDQ 5DQN 'DOODVf 3ODQQLQJ )LQDQFH /HJLWLPL]DWLRQ ([WHUQDO 5HODWLRQV (GXFDWLRQDO /HDGHUVKLS (YDOXDWLRQ )LJXUH $ &RPSDUDWLYH 5DQN 2UGHULQJ RI $GPLQLVWUDWLYH &DWHJRULHV E\ 0HGLDQ 5DQN PHGLDQ UDQNLQJ UHFHLYHG LQ 0LDPL ZDV FRQVLGHUDEO\ KLJKHU WKDQ LQ 'DOODV VHH )LJXUH f 7KH KLJKHU UDQNLQJ DOVR KHOG WUXH IRU DOO ILYH RI WKH RWKHU DGPLQLVWUDWLYH FDWHJRULHV %RWK GLVWULFWV SHUFHLYHG ILQDQFH DV WKH VHFRQG PRVW LPSRUWDQW FDWHJRU\ 7KH QH[W WKUHH UDQNLQJV GLIIHU IURP RQH GLVWULFW WR WKH RWKHU DOWKRXJK ERWK GLVWULFWV UDQNHG HYDOXDWLRQ DV WKH OHDVW LPSRUWDQW FDWHJRU\ ,W ZDV DOVR VLJQLILFDQW WKDW WKH OHJLWLPL]DWLRQ ZDV UDQNHG ORZ LQ UHODWLYH LPSRUWDQFH IRXUWK DW 0LDPL DQG ILIWK DW 'DOODVf $OVR VLJQLILFDQW ZDV WKH UDQNLQJ RI HGXFDWLRQDO OHDGHUVKLS ZLWK 'DOODV UDQNLQJ WKLUG DV FRPSDUHG WR WKH ILIWK SODFH UDQNLQJ DW 0LDPL'DGH 3HUFHLYHG 'LUHFW DQG 'HOHJDWHG )XQFWLRQV 7KH SDUWLFLSDQWV RI ERWK GLVWULFWV DSSHDUHG WR LGHQWLI\ EDVLFDOO\ WKH VDPH IXQFWLRQV DV GHOHJDWHG GLUHFW RU VRPH FRPELQDWLRQ RI WKH WZR %RWK GLVWULFWV SHUFHLYHG WKUHH IXQFWLRQV DV D GLUHFW

PAGE 165

UHVSRQVLELOLW\ RI WKH FKLHI H[HFXWLYH RIILFHU RI WKH GLVWULFW DQG QLQH WKDW ZHUH GLUHFWO\ GHOHJDWHG VHH 7DEOHV DQG f 7KH PDMRU GLIIHUHQFH ZDV REVHUYHG LQ WKH SHUFHQW RI SDUWLFLSDQWV VHOHFWLQJ HDFK FDWHJRU\ 3HUFHLYHG 2YHUDOO 5ROH RI WKH &KLHI ([HFXWLYH 7KH RYHUDOO UROH RI WKH GLVWULFW FKLHI H[HFXWLYH RIILFHUV XVHG LQ WKLV VWXG\ ZHUH JHQHUDOO\ SHUFHLYHG YHU\ VLPLODUO\ ,Q ERWK GLVWULFWV WKH FKLHI H[HFXWLYH RIILFHU ZDV YLHZHG DV WKH OHJDO DQG V\PEROLF KHDG RI WKH GLVWULFW DQG DV EHLQJ WKH SULPH LQLWLDWRU RI SROLF\ IRU WKH GLVWULFW 7KH FKLHI H[HFXWLYH ZDV VHHQ DV DQ HGXFDn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f DQG VXSSRUWPDQLSXODWRU RU SODQQHU $FFXUDF\ RI 3HUFHSWLRQV 2YHUDOO ZKHQ WKH SDUWLFLSDQWV SHUFHSWLRQV ZHUH FRPSDUHG WR WKRVH RI WKH GLVWULFW FKLHI H[HFXWLYH WKHUH WHQGHG WR EH D ODUJH GHJUHH RI DFFXUDF\ $OWKRXJK YDULDQFHV RI SHUFHSWLRQ GLG RFFXU LQ PDQ\ VHFWLRQV RI WKH UHVXOWV REWDLQHG IURP WKH LQVWUXPHQWV ZKHQ

PAGE 166

YLHZHG LQ EURDG DQG JHQHUDO WHUPV WKH\ ZHUH QRW PDMRU PLVFRQFHSWLRQV 7KH SHUFHSWLRQV FRQFHUQLQJ WKH PDMRU HOHPHQWV RI OHYHO RI LQVWLWXn WLRQDO LQYROYHPHQW GHJUHH RI UHVSRQVLELOLW\ DXWKRULW\ DQG PRWLYDWLRQ DSSHDUHG WR EH LQ JHQHUDO DFFRUG 6XPPDWLRQ DQG *HQHUDO 2EVHUYDWLRQV 7KH SDUWLFLSDQWV IURP HDFK GLVWULFW ZHUH FKRVHQ DW UDQGRP E\ FRQVWLWXHQW FDWHJRULHV 7KLV VHOHFWLRQ SURFHVV DVVXUHG D EURDG VSHFWUXP RI YLHZSRLQWV DV ZHOO DV LQSXW IURP HDFK VHJPHQW RI WKH FROOHJH RU GLVWULFW H[SHULHQFH 2YHUDOO ZKHQ WKH SDUWLFLSDQWVn SHUFHSWLRQV ZHUH FRPSDUHG WR WKRVH RI WKH GLVWULFW FKLHI H[HFXWLYH WKHUH WHQGHG WR EH D KLJK GHJUHH RI DFFXUDF\ +RZHYHU XSRQ FRPSDULVRQ RI SDUWLFLSDQWVn SHUFHSWLRQV LW ZDV GLVFRYHUHG WKDW XQOHVV GHILQLWLRQV ZHUH YHU\ EURDG DQG JHQHUDO SDUWLFLSDQW GLIIHUHQWLDWLRQ EHFDPH LQFUHDVLQJO\ GLIILFXOW DV WKH SRVLWLRQ UDQN MRE FODVVLILFDWLRQf RI WKH SDUWLFLSDQW GHFUHDVHG 7KDW LV WKRVH SDUWLFLSDQWV WKDW ZHUH LQ SRVLWLRQV WR KDYH IUHTXHQW FRQWDFW ZLWK WKH FKLHI H[HFXWLYH ZHUH DEOH WR PDNH GLIIHUHQWLDWLRQV DQG LQWHUSUHWDWLRQV WKDW ZHUH QRW SRVVLEOH LQ RWKHU SRVLWLRQV RI OHVVHU FRQWDFW 7KHUHIRUH WKH GHJUHH RI SDUWLFLSDQW JXHVVLQJ LQVWHDG RI VLQFHUH DVVHVVPHQW RI D WUXH SHUFHSWLRQ EDVHG RQ H[SHULHQFH LV XQDEOH WR EH HVWLPDWHG

PAGE 167

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

PAGE 168

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nV IXQFWLRQDO GXWLHV DV SHUFHLYHG E\ D PDMRULW\ RI WKH SDUWLFLSDQWV

PAGE 169

, RR $ FOHDU GLFKRWRP\ H[LVWV LQ WKH SHUFHSWLRQV RI SDUWLFLSDQWV UHJDUGLQJ WKH 3UHVLGHQWn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n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

PAGE 170

7KH SHUFHSWLRQV RI KRZ WKH &KDQFHOORU GLYLGHV KLV WLPH DPRQJ YDULRXV DGPLQLVWUDWLYH DFWLYLWLHV UHYHDOHG WKDW QR VLQJOH FDWHJRU\ RI DFWLYLWLHV ZDV VHHQ DV PRQRSROL]LQJ KLV WLPH ZLWK PRVW HVWLPDWHV IDOOLQJ ZLWKLQ WKH SHUFHQW LQWHUYDO 7KH SDUWLFLSDQWV SHUFHLYHG WKH &KDQFHOORUnV PRVW GLUHFW IXQFWLRQV WR UHYROYH DURXQG SROLF\ LQLWLDWLRQ DQG FRQWDFW ZLWK YDULRXV VHJPHQWV RI WKH FRPPXQLW\ 7KH &KDQFHOORU DQG WKH %RDUG RI 7UXVWHHV DUH SHUFHLYHG DV WKH PDMRU GHFLVLRQ PDNHUV RI WKH 'LVWULFW DQG WKHUHIRUH DV WKH PRVW FUXFLDO HOHPHQWV FRQWULEXWLQJ WR WKH VXFFHVV DQG JRRG UHSXWDWLRQ RI WKH 'DOODV &RXQW\ 'LVWULFW 7KH GLVWULFW RUJDQL]DWLRQDO VWUXFWXUH ZDV SHUFHLYHG DV FHQn WUDOL]HG LQ SROLF\ IRUPXODWLRQ DQG PRUH GHFHQWUDOL]HG LQ WKH LPSOHn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

PAGE 171

FKDSWHU SURYLGHG D GLUHFW UHVSRQVH WR RQH RI WKH EDVLF SXUSRVHV RI WKH VWXG\ WKDW LV :KDW LV WKH DVVLJQHG DQG SHUFHLYHG UROH RI WKH GLVWULFW FKLHI H[HFXWLYH RIILFHU LQ WKH VHOHFWHG PXOWLFDPSXV GLVWULFW DV FRPSDUHG WR WKH DVVLJQHG DQG SHUFHLYHG UROH RI WKH GLVWULFW FKLHI H[HFXWLYH RIILFHU LQ WKH VHOHFWHG PXOWLLQVWLWXWLRQ GLVWULFW" $ VXPPDU\ RI WKH FRPSDULVRQ RI WKH SHUFHLYHG UROHV RI WKH FKLHI H[HFXWLYH RIILFHUV LQ WKH GLVWULFWV VWXGLHG LV SUHVHQWHG LQ WKH IROORZLQJ GLVFXVVLRQ 3HUFHLYHG ,PSRUWDQFH RI $GPLQLVWUDWLYH &DWHJRULHV 7KH DGPLQLVWUDWLYH FDWHJRU\ RI SODQQLQJ ZDV SHUFHLYHG DV WKH PRVW LPSRUWDQW FDWHJRU\ LQ WKH UROH RI WKH FKLHI H[HFXWLYH LQ ERWK GLVWULFWV VWXGLHG +RZHYHU WKH PHGLDQ UDQNLQJ UHFHLYHG DW 0LDPL ZDV KLJKHU WKDQ LQ 'DOODV WR UHVSHFWLYHO\f DV ZHOO DV WKH PHDQ UHVSRQVH RI WR UHVSHFWLYHO\ 7KH KLJKHU UDQNLQJ DOVR KHOG WUXH IRU DOO ILYH RI WKH RWKHU DGPLQLVWUDWLYH FDWHJRULHV %RWK GLVWULFWV SHUFHLYHG ILQDQFH DV WKH VHFRQG PRVW LPSRUWDQW FDWHJRU\ 7KH QH[W WKUHH UDQNLQJV GLIIHU IURP RQH GLVWULFW WR WKH RWKHU DOWKRXJK HYDOXDWLRQ ZDV UDQNHG DV WKH OHDVW LPSRUWDQW FDWHJRU\ DW HDFK GLVWULFW ,W ZDV DOVR VLJQLn ILFDQW LQ FRPSDULQJ WKH DGPLQLVWUDWLYH FDWHJRULHV RI WKH WZR GLVWULFWV WR ILQG WKDW WKH FDWHJRU\ RI OHJLWLPL]DWLRQ ZDV UDQNHG ORZ LQ UHODWLYH LPSRUWDQFH IRXUWK DW 0LDPL DQG ILIWK DW 'DOODVf $OVR VLJQLILFDQW ZDV WKH UDQNLQJ RI HGXFDWLRQDO OHDGHUVKLS ZLWK 'DOODV UDQNLQJ WKLUG DV FRPSDUHG WR WKH ILIWK SODFH UDQNLQJ DW 0LDPL'DGH 3HUFHLYHG 'LUHFW DQG 'HOHJDWHG )XQFWLRQV 7KH SDUWLFLSDQWV RI ERWK GLVWULFWV LGHQWLILHG EDVLFDOO\ WKH VDPH IXQFWLRQV DV GHOHJDWHG GLUHFW DQG FRPELQDWLRQV RI WKH WYR

PAGE 172

GHVLJQDWLRQV %RWK GLVWULFWV SHUFHLYHG WKUHH IXQFWLRQV DV D GLUHFW UHVSRQVLELOLW\ RI WKH FKLHI H[HFXWLYH RIILFHU RI WKH GLVWULFW DQG QLQH WKDW ZHUH GLUHFWO\ GHOHJDWHG VHH 7DEOHV DQG f %RWK GLVWULFW SDUWLFLSDQWV SHUFHLYHG WKH IROORZLQJ WZR IXQFWLRQV DV D GLUHFW UHVn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

PAGE 173

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f DQG VXSSRUW PDQLSXODWRU RU SODQQHU $FFXUDF\ RI 3HUFHSWLRQV 2YHUDOO ZKHQ WKH SDUWLFLSDQWVn SHUFHSWLRQV ZHUH FRPSDUHG WR WKRVH RI WKHLU UHVSHFWLYH GLVWULFW FKLHI H[HFXWLYH WKHUH WHQGHG WR EH D ODUJH GHJUHH RI FRQJUXHQFH $OWKRXJK YDULDQFHV RI SHUFHSWLRQ GLG RFFXU LQ PDQ\ VHFWLRQV RI WKH UHVXOWV REWDLQHG IURP WKH LQVWUXPHQWV ZKHQ YLHZHG LQ EURDG DQG JHQHUDO WHUPV WKH\ ZHUH QRW PDMRU PLVFRQFHSWLRQV 7KH SDUWLFLSDQWVn SHUFHSWLRQV FRQFHUQLQJ WKH PDMRU DVSHFWV RI WKH FKLHI H[HFXWLYHVn IXQFWLRQV DSSHDUHG WR EH LQ JHQHUDO DFFRUG ZLWK WKH DFWXDO SHUFHSWLRQV RI WKH FKLHI H[HFXWLYHV 7KLV ZDV WKH FDVH HVSHFLDOO\ LQ UHJDUG WR SHUFHSWLRQV FRQFHUQLQJ WKH H[HFXWLYHVn OHYHO RI LQVWLWXWLRQDO LQYROYHPHQW GHJUHH RI RYHUDOO UHVSRQVLELOLW\ DXWKRULW\ DQG JHQHUDO PRWLYDWLRQ 5HVSRQVH WR 0DMRU 4XHVWLRQV 3RVHG E\ WKH 6WXG\ 7ZR RI WKH PDMRU TXHVWLRQV SRVHG E\ WKLV UHVHDUFK VWXG\ ZHUH DQVZHUHG LQ &KDSWHUV ,,, DQG ,9 $ VXPPDU\ RI WKH EDVLF UHVSRQVHV WR WKHVH TXHVWLRQV LV SUHVHQWHG LQ WKH IROORZLQJ GLVFXVVLRQ

PAGE 174

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f $OWKRXJK HDFK 3UHVLGHQW LV DOORZHG VRPH IOH[LELOLW\ LQ WKH DGPLQLVWUDWLYH RUJDQL]DWLRQ RI KLV FROOHJH WKH\ PXVW VWLOO VXEPLW DSSURSULDWH MRE WLWOHV VSHFLILFDWLRQV DQG RUJDQL]DWLRQDO SDWWHUQV WR WKH &KDQFHOORU IRU DSSURYDO 7KH 3UHVLGHQWV RI WKH IRXU FROOHJHV UHSRUW WR WKH 'LVWULFW 9LFH&KDQFHOORU

PAGE 175

IRU $FDGHPLF $IIDLUV QRW GLUHFWO\ WR WKH &KDQFHOORU $OWKRXJK VRPH IOH[LELOLW\ LV H[WHQGHG WR WKH LQGLYLGXDO FROOHJH SUHVLGHQWV XOWLPDWH DXWKRULW\ IRU DSSURYLQJ FROOHJH RSHUDWLRQV DQG SURJUDPV LV YHVWHG LQ WKH %RDUG RI 7UXVWHHV WKURXJK WKH 'LVWULFW RIILFH &RQFOXVLRQV 7KH FRQFOXVLRQV GLVFXVVHG LQ WKLV VHFWLRQ ZHUH GUDZQ IURP DQG EDVHG RQ WKH DXWKRUn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n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

PAGE 176

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

PAGE 177

,PSOLFDWLRQ $OWKRXJK VRPH VWXGLHV KDYH FRQFOXGHG WKDW PXOWLn XQLW GLVWULFWV HYROYH WRZDUG JUHDWHU LQGLYLGXDO XQLW DXWRQRP\ -RQHV f WKLV VWXG\ GLG QRW ILQG WKDW WR EH WKH FDVH ,QVWHDG DV WKH FRPSOH[LW\ RI WKH RSHUDWLRQ LQFUHDVHV WKH QHHG IRU JUHDWHU FRRUGLn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

PAGE 178

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n SHUFHSWLRQV UHJDUGLQJ VSHFLILF H[HFXWLYH UROHV WHQGV WR GHFUHDVH DV WKH SDUWLFLSDQWV FRQWDFW DQG IDPLOLDULW\ ZLWK WKH FKLHI H[HFXWLYH SRVLWLRQ GHFUHDVHV ,PSLFDWLRQ $V WKH MRE RU SRVLWLRQ FODVVLILFDWLRQ RI WKH SDUWLn FLSDQW UHTXLUHV PRUH IUHTXHQW FRQWDFW ZLWK WKH FKLHI H[HFXWLYH DQG KLV JHQHUDO RIILFH WKH DFFXUDF\ RI WKDW SDUWLFLSDQWnV SHUFHSWLRQV RI WKH FKLHI H[HFXWLYHnV UROH WHQGV WR LQFUHDVH ,Q WKLV VWXG\ WKRVH SDUWLFLSDQWV WKDW ZHUH LQ SRVLWLRQV WKDW DOORZHG WKHP IUHTXHQW FRQWDFW ZLWK WKH FKLHI H[HFXWLYH ZHUH DEOH WR PDNH GLIIHUHQWLDWLRQV DQG LQWHUn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

PAGE 179

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

PAGE 180

$33(1',&(6

PAGE 181

$33(1',; $ 6758&785(' ,17(59,(: *8,'(

PAGE 182

6WUXFWXUHG ,QWHUYLHZ *XLGH 3DUW ,QWURGXFWLRQ $ ,QWURGXFH P\VHOI DQG H[SODLQ WKH QDWXUH RI P\ UHVHDUFK VWXG\ % ([SODLQ WKH TXHVWLRQQDLUH DQG WKH LQWHUYLHZ SURFHGXUH WR EH XVHG & $GPLQLVWHU WKH TXHVWLRQQDLUH VHH $SSHQGL[ %f 3DUW ,, 7KH 3HUVRQDO ,QWHUYLHZ 7KH IROORZLQJ OLVW RI LWHPV ZHUH FKRVHQ IURP WKH OLWHUDWXUH SHUWDLQLQJ WR H[HFXWLYH IXQFWLRQV (DFK LWHP UHSUHVHQWV RQH IXQFWLRQDO UROH WKDW LV IUHTXHQWO\ VLWHG DV DSSOLFDEOH WR FRPPXQLW\ FROOHJH FKLHI H[HFXWLYH RIILFHUV :KLFK RI WKH IROORZLQJ IXQFWLRQV GR \RX DVFULEH WR WKH 3UHVLGHQW&KDQFHOORU RI \RXU GLVWULFW HLWKHU DV D GLUHFW RU GHOHJDWHG UHVSRQVLELOLW\" 3OHDVH UHVSRQG E\ LQGLn FDWLQJ RQH RI WKH IROORZLQJ 3HUVRQDO LQYROYHPHQW E\ WKH 3UHVLGHQW&KDQFHOORU 'LUHFWO\ GHOHJDWHG E\ WKH 3UHVLGHQW&KDQFHO ORU 1RW D GLUHFW UHVSRQVLELOLW\ RI WKH 3UHVLGHQW&KDQFHOORU 1RW DSSOLFDEOH 7KH IROORZLQJ OLVW RI LWHPV ZHUH GHYHORSHG IURP WKH ILQGLQJV RI 5REHUW *HQH *UDKDP f 'HWHUPLQH WKH OLEUDU\ QHHGV ZLWKLQ WKH GLVWULFW $WWHQG VWDWH DQG QDWLRQDO HGXFDWLRQDO RUJDQL]DWLRQ PHHWLQJV DQG FRQIHUHQFHV +DYH LQGLYLGXDO PHHWLQJV ZLWK SHUVRQV LQ WKH FRPPXQLW\ ZKR DUH FRQVLGHUHG LQIOXHQWLDO LQ KHOSLQJ WKH GLVWULFW VHFXUH LWV REMHFWLYHV

PAGE 183

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

PAGE 184

(QFRXUDJH FROOHJHGLVWULFW VWDII WR SDUWLFLSDWH LQ FRPPXQLW\ FRXQFLOV DQG SURMHFWV 'HYHORS D SURJUDP IRU IDFXOW\ SDUWLFLSDWLRQ LQ FROOHJH DQG GLVWULFW GHFLVLRQ PDNLQJ 'HYHORS D V\VWHP RI LQWHUQDO DFFRXQWLQJ IRU WKH GLVWULFW $GPLQLVWHU GHEW VHUYLFH SURJUDPV 7KH DERYH LWHPV DUH LQWHQGHG WR PHDVXUH WKH UHVSRQGHQWVn SHUFHSWLRQ RI WKH GHJUHH RI LQYROYHPHQW RI WKH FKLHI H[HFXWLYH RIILFHU RI WKH GLVWULFW LQ VSHFLILF IXQFWLRQV LGHQWLILHG LQ WKH LWHUDWXUHf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f WKDW \RX EHOLHYH FRQWULEXWH PRUH WKDQ RWKHU FRPSRQHQWV WRZDUG WKH VXFFHVVIXO DFFRPSOLVKPHQWV RI WKH GLVWULFW" ,I \HV WKHQ FRXOG \RX UDQN WKHP"

PAGE 185

,Q \RXU RSLQLRQ LV WKH JRYHUQDQFH VWUXFWXUH RI WKH GLVWULFW FHQWUDOL]HG RU GHFHQWUDOL]HG" 3OHDVH FODULI\ \RXU GHILQLWLRQ DQG XVH RI WKH WHUPV FHQWUDOL]HG DQG GHFHQWUDOL]HG $UH WKHUH DQ\ DVSHFWV RI WKH 3UHVLGHQWnV&KDQFHOORUnV UROHV DQG IXQFWLRQV WKDW \RX ZRXOG FDUH WR FRPPHQW RQ WKDW KDYH QRW GLVFXVVHG ZLWK \RX RU WKDW FRXOG QRW JOHDQ IURP \RXU UHVSRQVHV WR WKH TXHVWLRQQDLUH \RX FRPSOHWHG"

PAGE 186

$33(1',; % 48(67,211$,5(

PAGE 187

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nVFKDQFHOORUnV WLPH GLVWULEXWLRQ ZLWKLQ YDULRXV DFWLYLWLHV 3HUVRQDO ,QIRUPDWLRQ
PAGE 188

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n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n PHQW WKDW PD\ DIIHFW WKH LQVWLWXWLRQ LQ VRPH ZD\ D DFWLYLWLHV FRQFHUQLQJ DFFUHGLWLQJ DJHQFLHV E DFWLYLWLHV LQYROYLQJ VWDWH DJHQFLHV OHDGHUV DQG VSHFLILF RIILFH KROGHUV F DFWLYLWLHV FRQFHUQLQJ JURXSV OHDGHUV HYHQWV ZLWKLQ WKH ORFDO FRPPXQLW\ RU GLVWULFW G DFWLYLWLHV LQYROYLQJ IHGHUDO DJHQFLHV DQG OHDGHUV H DFWLYLWLHV ZLWK YDULRXV SURIHVVLRQDO DVVRFn LDWLRQV RU RWKHU HGXFDWLRQDO OHDGHUV LQ WKH VWDWH RU QDWLRQ I RWKHU

PAGE 189

( ('8&$7,21$/ /($'(56+,3 SURYLGLQJ GLUHFWLRQ IRU WKH YDULRXV FRQVWLWXHQFLHV ZLWKLQ WKH LQVWLWXWLRQ E\ VHUYLQJ DV D IDFLOLWDWRU DQG FDWDO\VW IRU HIIHFWLYH DQG HIILFLHQW RSHUDWLRQ VHUYLQJ DQ LPSRUWDQW UROH LQ FRRUGLQDWLRQ RUJDQL]DWLRQ DQG PRWLYDWLRQ LQ WKH LQVWLWXWLRQ D SUHVHQWLQJ SROLF\ UHFRPPHQGDWLRQV DQG DOWHUn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n PHQWV FRQFHUQLQJ DWWLWXGHV DQG IRUFHV H[WHUQDO WR WKH LQVWLWXWLRQ LH WKH HFRQRP\ FXUUHQW SROLWLFDO VLWXDWLRQ DQG WKH JHQHUDO VRFLDO V\VWHPf I RWKHU 3$57 ,, 3HUFHQW RI WLPH VSHQW E\ WKH 3UHVLGHQW&KDQFHOORU LQ SDUWLFXODU H[HFXWLYH DFWLYLWLH7 ,QVWUXFWLRQV 7KH VL[ PDMRU FDWHJRULHV RI DGPLQLVWUDWLYH DFWLYLW\ GHILQHG LQ 3DUW RI WKLV TXHVWLRQQDLUH KDYH EHHQ LGHQWLILHG DV FRPSULVLQJ

PAGE 190

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b ,QVWUXFWLRQV :LWKLQ HDFK FDWHJRU\ RI DGPLQLVWUDWLYH DFWLYLW\ ZKDW SHUFHQW RI WKH 3UHVLGHQWnV&KDQFHOORUnV WLPH VSHQW LQ WKDW FDWHJRU\ GR \RX EHOLHYH KH VSHQGV LQYROYHG ZLWK HDFK VSHFLILF IXQFWLRQ" 7KH WRWDO DPRXQW RI WLPH VSHQW LQ DOO RI WKH DFWLYLWLHV ZLWKLQ DQ\ VSHFLILF FDWHJRU\ LV HTXDO WR b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rb

PAGE 191

3(5&(17 2) 7,0( 63(17 5(*$5',1* ($&+ )81&7,21 % ),1$1&( WKH DFTXLVLWLRQ DQG DOORFDWLRQ RI LQFRPH UHVRXUFHV IRU LQVWLWXWLRQDO RSHUDWLRQ DQG JRDO DWWDLQPHQW WKLV LQFOXGHV EXGJHW SUHSDUDWLRQ IXQG UDLVLQJ DQG EXGJHW DGPLQLVWUDWLRQ D DFWLYLWLHV FRQFHUQLQJ EXGJHW SUHSDUDWLRQ E IXQG UDLVLQJ DFWLYLWLHV F DFWLYLWLHV FRQFHUQLQJ LQWHUQDO GLVWULFW EXGJHW DGPLQLVWUDWLRQ G DFWLYLWLHV UHODWHG WR WKH SULRULW\ UDQNLQJ RI UHVRXUFH DOORFDWLRQ OHYHOV H RWKHU rb & /(*,7,0,=$7,21 2) ,167,787,21 32/,&,(6 $1' '(&,6,216 HIIRUWV WR FODULI\ WKH GHFLVLRQ PDNLQJ SURFHVV DQG WR REWDLQ FRQVWLWXHQW DFFHSWDQFH RI WKH SURFHVV DQG JHQHUDO SROLFLHV PDGH WKURXJK WKLV SURFHVV D DFWLYLWLHV SHUWDLQLQJ WR WKH PDLQWHQDQFH RI RSHQQHVV LQ WKH GHFLVLRQ PDNLQJ SURFHVV RI WKH GLVWULFW E DFWLYLWLHV FRQFHUQLQJ FRQVWLWXHQW SDUWLFLn SDWLRQ LQ LQVWLWXWLRQDO JRYHUQDQFH F DFWLYLWLHV FRQFHUQLQJ LPSURYLQJ WKH KXPDQ UHODWLRQV RU JHQHUDO PRUDOH ZLWKLQ WKH GLVWULFW G DFWLYLWLHV FRQFHUQHG ZLWK WKH LPSURYHPHQW RI WKH LQVWLWXWLRQDO FRPPXQLFDWLRQ QHWZRUN H RWKHU rb (;7(51$/ 5(/$7,216 LQWHUDFWLRQ ZLWK LQGLYLGXDOV DQG VHJPHQWV RI WKH VRFLHW\ WKDW DUH H[WHUQDO WR WKH LQVWLWXWLRQ EXW DUH SRWHQWLDOO\ LPSRUWDQW WR LWV RSHUDWLRQ DQG JRDO DWWDLQPHQW WKLV LQFOXGHV JRYHUQPHQW DJHQFLHV DQG OHDGHUV DW DOO OHYHOV EXVLQHVV DQG FRPPXQLW\ OHDGHUV DQG DQ\ RWKHU LPSRUWDQW HOHPHQWV RI WKH LQVWLWXWLRQDO HQYLURQPHQW WKDW PD\ DIIHFW WKH LQVWLWXWLRQ LQ VRPH ZD\

PAGE 192

3(5&(17 2) 7,0( 63(17 5(*$5',1* ($&+ )81&7,21 D DFWLYLWLHV FRQFHUQLQJ DFFUHGLWLQJ DJHQFLHV E DFWLYLWLHV LQYROYLQJ VWDWH DJHQFLHV OHDGHUV DQG VSHFLILF RIILFH KROGHUV F DFWLYLWLHV FRQFHUQLQJ JURXSV OHDGHUV HYHQWV ZLWKLQ WKH ORFDO FRPPXQLW\ RU GLVWULFW G DFWLYLWLHV LQYROYLQJ IHGHUDO DJHQFLHV DQG OHDGHUV H DFWLYLWLHV ZLWK YDULRXV SURIHVVLRQDO DVVRFn LDWLRQV RU RWKHU HGXFDWLRQDO OHDGHUV LQ WKH VWDWH RU QDWLRQ I RWKHU rb ( ('8&$7,21$/ /($'(56+,3 SURYLGLQJ GLUHFWLRQ IRU WKH YDULRXV FRQVWLWXHQFLHV ZLWKLQ WKH LQVWLWXWLRQ E\ VHUYLQJ DV D IDFLOLWDWRU DQG FDWDO\VW IRU HIIHFWLYH DQG HIILFLHQW RSHUDWLRQ VHUYLQJ DQ LPSRUWDQW UROH LQ FRRUGLQDWLRQ RUJDQL]DWLRQ DQG PRWLYDWLRQ LQ WKH LQVWLWXWLRQ D SUHVHQWLQJ SROLF\ UHFRPPHQGDWLRQV DQG DOWHUn QDWLYH VWUDWHJLHV WR WKH ERDUG RI WUXVWHHV E DFWLYLWLHV FRQFHUQLQJ WKH LQLWLDWLRQ RI HGXFDWLRQDO SROLF\ DQG LQQRYDWLRQV LQ SURJUDPV LQVWLWXWLRQDO RSHUDWLRQV DQG PDQDJHPHQW WHFKQLTXHV F DFWLYLWLHV LQYROYLQJ IDFXOW\ DQG VWDII SURYLGLQJ PRWLYDWLRQDO OHDGHUVKLS DQG VXSSRUW LQ WKHLU EHKDOI G DFWLYLWLHV ZLWK VWXGHQW JURXSV DQG LQGLYLGXDOV RI WKH VWXGHQW ERG\ H RWKHU rb ) (9$/8$7,21 WKH SURFHVV RI PDNLQJ MXGJPHQWV DQG EDVLF GHWHUPLQDWLRQV DV WR WKH HIIHFWLYHQHVV DQG HIILFLHQF\ RI LQVWLWXWLRQDO RSHUDWLRQV DV ZHOO DV LQGLYLGXDOV ZLWKLQ WKH LQVWLWXWLRQ D DFWLYLWLHV UHJDUGLQJ GHFLVLRQV RU HYDOXDWLYH MXGJPHQWV RQ WKH SURJUHVV RI WKH LQVWLWXWLRQ

PAGE 193

3(5&(17 2) 7,0( 63(17 5(*$5',1* ($&+ )81&7,21 E DFWLYLWLHV FRQFHUQLQJ HYDOXDWLYH MXGJPHQWV RI WKH HIILFLHQF\ RI LQVWLWXWLRQDO RSHUDWLRQV F DFWLYLWLHV UHODWLQJ WR MXGJPHQWV RQ SHUVRQQHO PDWWHUV G DFWLYLWLHV FRQFHUQLQJ WKH DVVHVVPHQW RI SHUn FHLYHG RU UHDO SUREOHPV ZLWKLQ WKH LQVWLWXWLRQ H DFWLYLWLHV UHODWLQJ WR WKH PDNLQJ RI MXGJPHQWV FRQFHUQLQJ DWWLWXGHV DQG IRUFHV H[WHUQDO WR WKH LQVWLWXWLRQ LH WKH HFRQRP\ FXUUHQW SROLWLFDO VLWXDWLRQ DQG WKH JHQHUDO VRFLDO V\VWHPf I RWKHU rb

PAGE 194

,17(59,(: 5(&25',1* 6+((7 6WUXFWXUHG LQWHUYLHZ JXLGHf O SHUVRQDOO\ SHUIRUPHG E\ SUHVLGHQWFKDQFHO ORU 1$0( GLUHFWO\ GHOHJDWHG E\ SUHVLGHQWFKDQFHOORU QRW D GLUHFW UHVSRQVLELOLW\ RI WKH 326,7,21 SUHVLGHQWFKDQFHO ORU 6800$5< 48(67,216 f f f f f f

PAGE 195

$33(1',; & &20081,7< &2//(*( 35(6,'(17

PAGE 196

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nV GHJUHH 7HQ \HDUV RI DSSURSULDWH H[SHULHQFH LQ KLJKHU HGXFDWLRQ

PAGE 197

$33(1',; &2//(*( 25*$1,=$7,21 &+$57

PAGE 198

7$%/( 2) 25*$1,=$7,21

PAGE 199

$33(1',; ( &+$57 $ 7+( ',675,&7 2)),&(

PAGE 200

&+$57 ,,$ 7+( ',675,&7 2)),&( RF 8'

PAGE 201

$33(1',; ) &+$1&(//25

PAGE 202

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

PAGE 203

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

PAGE 204

%,%/,2*5$3+< $PHULFDQ $VVRFLDWLRQ RI &RPPXQLW\ -XQLRU &ROOHJHV &RPPXQLW\ -XQLRU DQG 7HFKQLFDO &ROOHJH 'LUHFWRU\ :DVKLQJWRQ '& 7KH $VVRFLDWLRQ $PHULFDQ $VVRFLDWLRQ RI &RPPXQLW\ -XQLRU &ROOHJHV 'LUHFWRU\ :DVKLQJWRQ '& 7KH $VVRFLDWLRQ $UJ\ULV & ,QWHUSHUVRQDO &RPSHWHQFH DQG 2UJDQL]DWLRQDO (IIHFWLYHQHVV +RPHZRRG ,OOLQRLV 5LFKDUG ,UZLQ ,QF $UJ\ULV & 7KH ,QGLYLGXDO DQG 2UJDQL]DWLRQ 6RPH 3UREOHPV RI 0XWXDO $GMXVWPHQW ,Q : +DFN :LOOLDP *HSKDUW -DPHV % +HFN DQG -RKQ $ 5DPVH\HU (GVf (GXFDWLRQDO $GPLQLVWUDWLRQ 6HOHFWHG 5HDGLQJV %RVWRQ 0DVVDFKXVHWWV $OO\Q DQG %DFRQ ,QF %DUQDUG & 7KH )XQFWLRQV RI WKH ([HFXWLYH &DPEULGJH 0DVVDFKXn VHWWV +DUYDUG 8QLYHUVLW\ 3UHVV %LHOHQ $ 9 *XLGHOLQHV IRU %XGJHW $GPLQLVWUDWLRQ LQ 6HOHFWHG 0XOWL &DPSXV &RPPXQLW\ &ROOHJHV 'RFWRUDO 'LVVHUWDWLRQ 8QLYHUVLW\ RI )ORULGD %ORFN 0 + 08'f§$Q ,QFUHDVLQJ 'LOHPPD IRU &RPPXQLW\ -XQLRU &ROOHJHV -XQLRU &ROOHJH -RXUQDO %ORFNHU & ( 3OXPPHU 5 + t 5LFKDUGVRQ 5 & -U 7KH 7ZR \HDU &ROOHJH $ 6RFLDO 6\QWKHVLV (QJOHZRRG &OLIIV 1HZ -HUVH\ 3UHQWLFH+DOO ,QF %RJDUW 4 $ 0XOWL&DPSXV -XQLRU &ROOHJH &DVH 6WXG\ $ 6HDUFK IRU *XLGHOLQHV 'RFWRUDO 'LVVHUWDWLRQ 8QLYHUVLW\ RI 7H[DV &RKHQ $ 0 t 5RXHFKH ( ,QVWLWXWLRQDO $GPLQLVWUDWLRQ RU (GXFDWLRQDO /HDGHU" 7KH -XQLRU &ROOHJH 3UHVLGHQW :DVKLQJWRQ '& $PHULFDQ $VVRFLDWLRQ RI -XQLRU &ROOHJHV 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW 'LVWULFW $GPLQLVWUDWLYH 3ROLFLHV 0DQXDO r 'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW ,QIRUPDWLRQ 2IILFH 3L VWULFW ,QIRUPDWLRQ 6KHHW -XQH

PAGE 205

'DOODV &RXQW\ &RPPXQLW\ &ROOHJH 'LVWULFW (O &HQWUR &ROOHJH &DWDORJXH 'H/RDFKH ) $WWLWXGHV DQG 2SLQLRQV RI )DFXOW\ 0HPEHUV DQG -XQLRU &ROOHJH 3UHVLGHQWV 7RZDUG 6HOHFWHG 'HVFULSWLRQV RI WKH 2IILFH RI &ROOHJH 3UHVLGHQW 'RFWRUDO 'LVVHUWDWLRQ 8QLYHUVLW\ RI 2NODKRPD (ULFNVRQ & 0XOWL&DPSXV 2SHUDWLRQ LQ WKH %LJ &LW\ -XQLRU &ROOHJH -RXUQDO 2FWREHU (W]LRQL $ $ &RPSDUDWLYH $QDO\VLV RI &RPSOH[ 2UJDQL]DWLRQV 1HZ
PAGE 206

.LPEURXJK 5 % 3ROLWLFDO 3RZHU DQG (GXFDWLRQDO 'HFLVLRQ0DNLQJ &KLFDJR ,OOLQRLV 5DQG 0F1DOO\ DQG &RPSDQ\ .LQW]HU ) & -HQVHQ $ 0 t +DQVHQ 6 7KH 0XOWL,QVWLWXWLRQDO -XQLRU &ROOHJH 'LVWULFW :DVKLQJWRQ '& $PHULFDQ $VVRFLDWLRQ RI -XQLRU &ROOHJHV /D9LUH : $ &ULWLFDO 7DVNV IRU 3XEOLF -XQLRU &ROOHJH $GPLQLVWUDWRUV 'RFWRUDO 'LVVHUWDWLRQ 8QLYHUVLW\ RI )ORULGD 0DVLNR 3 *RLQJ 0XOWL&DPSXV -XQLRU &ROOHJH -RXUQDO 2FWREHU 0F&OXVNH\ : $Q ,QYHVWLJDWLRQ RI WKH /RFXV RI )RUPDO 'HFLVLRQ 0DNLQJ IRU 6WXGHQW 3HUVRQQHO 6HUYLFHV LQ 6HOHFWHG 0XOWL 8QLW &RPPXQLW\ &ROOHJH 'LVWULFWV 'RFWRUDO 'LVVHUWDWLRQ 8QLYHUVLW\ RI )ORULGD 0HGVNHU / / t 7LOOHU\ %UHDNLQJ WKH $FFHVV %DUULHUV $ 3URILOH RI 7ZR
PAGE 207

6KDQQRQ : 7KH &RPPXQLW\ &ROOHJH 3UHVLGHQW $ 6WXG\ RI WKH 5ROH RI 3UHVLGHQW RI WKH 3XEOLF &RPPXQLW\ -XQLRU &ROOHJH 'RFWRUDO 'LVVHUWDWLRQ &ROXPELD 8QLYHUVLW\ 6LPRQ + $ $GPLQLVWUDWLYH %HKDYLRU 1HZ
PAGE 208

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

PAGE 209

, 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\ -DPHV / :DWWHQEDUJHU &KDLUPDQ 3URIHVVRU RI (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 WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ 5DOSK % .LPEURXJK 3URIHVVRU RI (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 WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ 9LFWRU $ 7KRPSVRQ 3URIHVVRU RI 3ROLWLFDO 6FLHQFH 7KLV GLVVHUWDWLRQ ZDV VXEPLWWHG WR WKH *UDGXDWH )DFXOW\ RI WKH &ROOHJH RI (GXFDWLRQ DQG WR WKH *UDGXDWH &RXQFLO DQG ZDV DFFHSWHG DV SDUWLDO IXOILOOPHQW RI WKH UHTXLUHPHQWV IRU WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ $XJXVW 'HDQ &ROOHJH RI (GXFDWLRQ 'HDQ *UDGXDWH 6FKRRO

PAGE 210

, 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\  HV / :DWWHQEDUJHU &KDLUQ URIHVVRU RI (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 WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ IDO SK n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n 7 'HDQ &ROOHJHARI (GXFDWLRQ 'HDQ *UDGXDWH 6FKRRO

PAGE 211

WWnL