Citation
The impacts of increased female representation in the U.S. state legislatures

Material Information

Title:
The impacts of increased female representation in the U.S. state legislatures
Creator:
Williams, Elizabeth Grace
Publication Date:
Language:
English
Physical Description:
xxv, 210 leaves : ill. ; 29 cm.

Subjects

Subjects / Keywords:
Caucuses ( jstor )
Employment discrimination ( jstor )
Gender roles ( jstor )
Legislators ( jstor )
Political representation ( jstor )
Political science ( jstor )
Public policy ( jstor )
State legislators ( jstor )
Women ( jstor )
Womens studies ( jstor )
Dissertations, Academic -- Political Science -- UF ( lcsh )
Political Science thesis, Ph. D ( lcsh )
Genre:
bibliography ( marcgt )
non-fiction ( marcgt )

Notes

Thesis:
Thesis (Ph. D.)--University of Florida, 1997.
Bibliography:
Includes bibliographical references (leaves 201-209).
General Note:
Typescript.
General Note:
Vita.
Statement of Responsibility:
by Elizabeth Grace Williams.

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:
028077868 ( ALEPH )
37881208 ( OCLC )

Downloads

This item has the following downloads:


Full Text











THE IMPACTS OF INCREASED FEMALE REPRESENTATION
IN U.S. STATE LEGISLATURES



















By

ELIZABETH GRACE WILLIAMS


















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

UNIVERSITY OF FLORIDA

1997




THE IMPACTS OF INCREASED FEMALE REPRESENTATION
IN O.S. STATE LEGISLATURES
By
ELIZABETH GRACE WILLIAMS
A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL
OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY
UNIVERSITY OF FLORIDA
1997


Copyright 1997
by
Elizabeth Grace Williams


This dissertation is jointly dedicated to John Robert
Bloom, my partner in marriage and life, and to my father
Nelson Garrett Williams. I am grateful that from earliest
childhood my father encouraged and taught his eldest daughter
to be resourceful and self-confident, and that with enough
hard work a woman could successfully pursue any profession of
her choice. The unwavering encouragement, patience, hard
work, emotional support, frequent sacrifice and love of my
partner have been essential in making it possible to transform
my personal and professional goals and dreams into reality.
Without his efforts this doctorate--and the masters degree
before it--could not have been completed.


ACKNOWLEDGMENTS
In March 1995 when the prospectus for this doctoral
research was approved, I could have never imagined the
enormity or complexity of work involved or the many people
whose assistance would be needed to complete this research
over the past two years.
As I look back at my original completion "time-table,"
I am amazed at my naive and unrealistic expectations for my
completion. As hoped for graduation deadlines passed, my
Dad confided in me that he "hadn't expected me to do the
impossible immediately." It took literally months of survey
revisions, pre-testing, typing envelopes, numbering and
folding nearly 8,000 survey instruments. I remember my
exuberation and delight, like that of a child opening
Christmas gifts, when I received over two hundred completed
survey responses during the second week of July 1995. But
coding 238 input variables for more than 1100 cases and the
subsequent data analysis seemed like endless tasks. This
process has given me a deep respect and appreciation for the
art of doing and surviving quality academic research.
I am the grateful beneficiary of patient mentoring, and
more intellectual and financial assistance than I could have
hoped for. I owe intellectual and financial debts of
iv


appreciation to many people, academic departments, and
legislative organizations across the nation that have
assisted me along the way. In recognition and in
appreciation of these many gifts, it is more accurate to say
that "we" are eventually about to do the extremely
difficult.
My doctoral committee deserves special recognition and
sincerest appreciation for their sustained hard work and
mentoring. I am grateful for the many professional,
research, teaching, and publishing opportunities their
combined efforts have made available for me. They have been
strong advocates and collectively have written many letters
of support as together we have successfully competed for
various research funds. I am especially fortunate that my
committee members have treated my ideas, research interests,
and me with the respect normally shown to junior faculty
colleagues. I have benefited from, although sometimes
struggled under, the very high expectations of my committee,
the challenges they set out and held me accountable for in
scholarship, publishing, and professional conduct.
Dr. James W. Button, chair of my doctoral committee,
has become a long time friend and patient, thoughtful
listener. His early encouragement academically and
personally, since I was one of his undergraduates, rekindled
my academic curiosities and helped to develop my interests
in pursuing graduate education. We share similar political
v


research interests and have published together. I have
sought to model the best of his teaching, research, and
student interaction behavior styles. I have blended them
with my philosophy of learning into my own personal style of
teaching, academic counseling, and student performance
feedback.
Dr. M. Margaret (Peggy) Conway has been the essential
"catalyst" of much of my doctoral work. From presenting
challenging seminars, to chairing my major qualifying exams,
to implementing this research, she has continuously demanded
my very best efforts. She has been a valued confidant on
numerous occasions, and has mentored me in successfully
handling sensitive student academic honesty and professional
ethical matters in the face of difficult obstacles.
Although constantly overburdened with department
administration and professional responsibilities, she has
always graciously and generously shared her precious scarce
time, her experience, and professional contacts with me.
Her intercession on behalf of this research with Dr. Marian
Palley (University of Delaware) resulted in a sustained
working relationship with Senator Myrna Bair, Ph.D. (DE-R),
president of the Women's Network of the National Conference
of State Legislatures.
It was in Dr. Wayne Francis' legislative research,
methodology, and statistics seminars I first began to
clearly focus on my interests in how gender interacts with
vx


State legislative and policy research. This dissertation
topic evolved from an earlier ten-state research project for
one of his seminars. I began to question continually how
and whether legislative research findings applied to the
increasing numbers and diversity of U. S. women in elective
public office. I am especially grateful to Professor
Francis for his proactive role in mentoring me through the
research design and writing phases of this process. His
unshakable confidence in my abilities, and calming patience
with my methodological weaknesses, have reassured me. He
has kept me on track when I felt I was "drowning in data and
statistics." I am very pleased he made it possible for us
to have an opportunity to publish together.
I am grateful to Dr. David Hedge and Dr. Michael
Scicchitano for their active, prolonged encouragement for me
to return to graduate school and pursue doctoral studies in
political science. Dave has been a friend and a member of
my qualifying exam committee and has actively helped me
develop my teaching abilities as my first teaching
supervisor in "our" three hundred student section of State
and Local Politics.
Dr. Madelyn M. Lockhart, Professor Emrita in Economics
at the University of Florida, has been a strong advocate on
behalf of my dissertation research and me personally. While
she was Dean of the Graduate School I was her (student)
administrative assistant, and subsequently assisted her in
vii


the Economics department. As Dean, she directly oversaw my
work and provided a strong leadership role model of
appropriate professional behavior with students, faculty,
and administrative committees in academia. Through her I
first learned of the Graduate Certificate in Gender Studies
which she had helped design and approved. I am pleased to
have been the first University of Florida doctoral student
to earn the certificate. Dean Lockhart encouraged and
recommended me for research fellowships, subsequently making
it possible for me to receive my first dissertation funding.
Both Dr. Conway and Dr. Lockhart have been powerful,
positive gender role models of very intelligent, extremely
hardworking and accomplished, strong, dedicated and
compassionate academic women. Through their experiences I
have had opportunities to view close up the rewards,
challenges, and sacrifices required for an academic career
built on excellence.
Three other political science faculty, not on my
doctoral committee, deserve special appreciation for their
encouragement, friendship, and especially for their patience
throughout my masters and doctorate work.
Dr. Ken Wald, former chair of the department,
originally admitted me to the UF Public Administration
masters degree program. We have known one another for more
than a decade. He has always been candid, honest, very
helpful, supportive, and an excellent advisor on
viii


professional, academic, and ethical concerns. Dr. Wald has
earned not only my respect, but also my admiration for his
personal integrity and professional abilities.
Two members of my master's degree committee. Dr.
William A. Kelso and Dr. Bert E. Swanson, deserve special
recognition. They inspired me in my early graduate work,
and each has continued to provide strong personal
encouragement. They repeatedly urged that I "consider" a
Ph.D. and pursue an academic career--more than five years
before I could visualize it myself. Unknown to me at the
time, through their sponsorship and with the support of
other political science faculty, I was "pre-admitted" on
request to the doctoral program as a "hold-over" based on
the quality of my masters' degree work. I only learned this
many years later when I made my official application for
admission to doctoral studies, and was told I had already
been retroactively accepted!
For his academic and financial support of this research
I am grateful to Dr. Steven E. Sanderson, chair of the
University of Florida Political Science Department. I
sincerely appreciate efforts of the following University of
Florida political science faculty who have also helped me in
this research: Dr. Cynthia Burack, Dr. Steven Craig, Dr.
Alfonso J. Damico, Dr. Larry C. Dodd, Dr. Lynn Leverty, Dr.
Albert Matheny, Dr. Walter ("Tony") Rosenbaum, and Dr.
Richard Scher. Other University of Florida faculty whose
IX


input and encouragement have been valuable include Dr. M. J.
Hardman, Professor of Linguistics and Anthropology; Dr.
Helga Kraft, Professor of German and Slavic Languages and
former Director of the Women's Study Center; Dr. Ofelia M.
Schutte, Professor of Philosophy; and Dr. Patricia L.
Schmidt, Professor of English. Sincerest appreciation to
Dr. Marian Palley, Professor of Political Science, and to
Dr. Myrna Bair, Director of Women's Leadership Programs
(both at the University of Delaware in Newark). For sharing
their survey instruments and contact sources, and for their
encouragement, thanks are given to Dr. Lynn Ford, Professor
of Political Science (College of Charleston); Dr. Kathlene
Dolan, Professor of Political Science (University of
Wisconsin Oshkosh); Dr. Rodney Hero, Professor of Political
Science (University of Colorado Boulder); and Dr. Beth
Reingold, Professor of Political Science (Emory University).
Special appreciation for their continuing encouragement is
also given to Dr. Goldie Bear and to Ms. Robbie Blake,
former program assistant for the University of Florida's
Center for Women's Studies and Gender Research.
Without the efficient, very accurate work and cheerful
help of Ms. Marty Swilley and Ms. Debbie Wallen, senior
secretaries in political science; Ms. Hazel Pridgen,
political science office manager; and our office assistants
Ms. Lynn Coles and Ms. Romney Girdner, this work could not
have been completed. Marty, Debbie, and Hazel established
x


special accounts for the on-campus printing of surveys and
handled a myriad of other related administrative tasks.
Their support and friendship has made this enormous task
possible. Appreciation is also given to the following for
their many efforts on behalf of this work: Mr. Fred Batie,
Supervisor UF Campus Mailroom; Mr. A. G. Black, editor
California Journal; Ms. Laurie Buffington and Ms. Karen
Cain, Manager(s) University Copy Center; Ms. Marie Clark,
Senior Accountant; Ms. Romney Girdner, typist; Ms. Colleen
Kay, Manager Renaissance Printing; Ms. Judy A. Lockerman,
Manager UF Printing and Graphics; and Mr. Lee Neil,
University of Florida Office of Instructional Resources.
Appreciation is extended to the efficient, patient, and
friendly staff at the University Station Post Office for
their cheerful assistance and personal encouragement.
Special recognition goes to Mr. Harry Fehrman, to Station
Manager Stephen Kirkland, to Mr. J. "Brent" Tyner, and to
Ms. Connye Varner. They repeatedly "calibrated" many
different "weights" and pre-weighed different combinations
of sample mail-out packets. Of the nearly 8000 outgoing
packets and letters...NONE came back postage due or shipped
out overweight! On a continuing basis they special ordered
14 cases of pre-stamped envelopes and post cards for this
research. Each morning for weeks they processed many boxes
and trays of literally hundreds of outgoing survey packets.
Special appreciation is given to my fellow graduate and
xi


doctoral student colleagues, many of whom are already, or
are soon to be, Ph.D.s. I thank them for their advice,
friendship, cheerful encouragement, empathy, and many survey
folding, envelope typing, and statistical skills. I
especially thank Mr. Jon Anderson, Dr. Russell Benjamin, Ms.
Tina (Mendez) Brady, Ms. Angela Halfacre, Dr. Shaun Herness,
Dr. Randolph Horn, Dr. Pe-Tie Lein, Dr. Ken Mease, Mr. Scott
Richards, Ms. Barbara Roth, and Dr. Joseph Smaha. For the
encouragement of Dr. Linda Lewis, facilitator of the
"Tuesday night ABD" group, support from Paul, and friendship
of Dr. Hui-Chaun Pai, I am grateful.
In recognition of their continuing personal and
academic encouragement, emotional support, and especially
their longtime friendships, I thank Ms. Karen Bogart, Mr. M.
Keith Evans, Mr. Mark Ira Grumet, Mr. Wayne A. Haltiwanger,
Mr. Todd Hester, Mr. (Mrs.) Rich (Richard) A. Kelley, Jr.,
Ms. Cathy (Laurenzi) McCuller, Ms. Fran (Cruse) McDonnell,
and Ms. Susan (Barfield) Wright. Sincere appreciation is
extended to Mr. Roy Book and his wife Donna in memory of
their loving son, and my dear friend, Kevin Michael Book.
A research project of this size requires many sources
of funding. My committee and I have consistently worked
very hard and frequently been successful (and occasionally
lucky) in competing for financial support. Special
appreciation for funding and in-kind support go to Dean
Lockhart at the Graduate School for a $5,000 pre-doctoral
xii


research fellowship (1993) and to Dean (now Assistant
Provost) David Colburn for a $5,000 College of Liberal Arts
Dissertation Fellowship (1995). For 1995 travel and
research grants, many thanks to Dean Elizabeth Langland,
College of Liberal Arts; to Dr. Karen Holbrook, Vice
President of the Office of Research and Graduate Education
for a matching research grant; and to Dr. Steven E.
Sanderson, Chair of Political Science, for additional
department matching funds. Appreciation is extended to Dr.
Debbie Walsh, Acting Director of the Center for the American
Woman and Politics at Rutgers University, and to Ms. Tobi
Walker, Director of the Young Women in Leadership Initiative
for their generous internship. It permitted me to attend
and conduct legislator interviews at the November 1995
quadrennial conference of Women State Legislators in San
Diego, California. Appreciation is extended to Dr. M. J.
Hardman, Professor of Linguistics and administrator of the
Tybel Spivack Scholarship, and to Dr. Sue Rosser of the
Center for Women's Study and Gender Research for a special
recognition Tybel Spivack scholarship received August 1996
in support of this research. I also appreciate the many
efforts of various political science graduate coordinators
and committee members who recommended me for teaching,
research, programming, and administrative assistantship
positions in Political Science, at the UF Graduate School,
in Economics, and with the Department of English.
xiii


Even adequate funding could not assure the success of
this research. The many efforts (including co-signing the
women's survey cover letter) and active participation of
Senator Myrna Bair (DE-R) in her capacity as vice president,
then president, of the Women's Network of the National
Conference of State Legislatures (NCSL) were essential.
Staff support from Senator Bair's secretary Stephanie and
from Ms. Annette Durlam, staff liaison of the NCSL's Women's
Network, and the help of former state senator Nancy Brown
(KS-R) as Network News editor and coordinator of the
regional Women's Legislative Leadership Development
Conferences was very valuable. Sincere thanks are given to
Senator George Kirkpatrick (FL-D) for signing numerous cover
letters for surveys administered to male legislators.
Appreciation is especially given to Mr. Mike Murtha, Senator
Kirkpatrick's very efficient and helpful legislative
assistant, for coordinating the Senator's participation, and
for their assistance in the Florida pilot pre-testing. The
efforts of legislative aide Mr. Peter Dyga in Representative
Bob Casey's (FL-R) office also deserve special thanks.
The participation of a representative sample of ten
Florida legislators in the pre-testing and personal
debriefing interviews and their subsequent recommendations
for revising the survey were very helpful. Their combined
efforts significantly improved the quality of the instrument
and hopefully the findings of this work. The Florida
xiv


legislators who participated in the pre-test are not
individually named here because of the confidentiality
guarantee given to all survey respondents.
I am particularly indebted to the 1,111 participating
legislators nation-wide who together contributed more than
600 total hours of their time. They shared their
legislative experience, policy attitudes, and opinions
through their survey responses, phone calls, interviews, and
many attached personal letters. Without their efforts there
would have been no research data. Many legislators sent
policy brochures and information on their "proudest" policy
achievements and on programs implemented through legislation
they had successfully sponsored.
To my extended family I give my grateful appreciation
for their encouragement and many efforts on my behalf. I
especially want to recognize Mrs. Patricia Bloom, Ms. Alice
Clawson, my Aunt Ginny and Uncle Paul (Mr. and Mrs. Paul
Williams), and my father Mr. Nelson Garrett Williams--to
whom this dissertation is jointly dedicated. I am grateful
that from my earliest childhood my father's active parenting
and example encouraged and taught me to be resourceful and
self-confident, and that with enough hard work I could
successfully pursue any profession or career change.
To Jack (John) Robert Bloom, my partner in life and
marriage, I owe my greatest debt of appreciation and
unconditionally give my lasting love. His unwavering
xv


encouragement, hard work, patience, emotional and financial
support, frequent sacrifices in family time together, and
his love have been essential. I am also grateful for the
continuing encouragement and understanding of our own large
family, especially Goldie, Jackie, Peter, and Toby. Jack
has repeatedly helped make it possible for us, together, to
transform my personal and professional dreams into reality.
Without his efforts this doctorate--and the masters degree
before it--would not have been attempted, and could not have
been completed.
My gratitude and apology to others whose encouragement
and assistance helped me complete this work, but whose names
I may have unintentionally omitted. To all of the above, I
express my deepest thanks.
xv 1


TABLE OF CONTENTS
page
ACKNOWLEDGMENTS iv
LIST OF TABLES xxii
LIST OF FIGURES xxiii
ABSTRACT xxiv
CHAPTERS
1 INTRODUCTION 1
Theoretical Foundations 2
Female Legislators 2
Research Problem 3
Hypotheses 4
Research Design 5
Potential Contributions of this Research .... 5
2 REVIEW OF STATE LEGISLATIVE RESEARCH
LITERATURE 7
The Increased Importance of State
Legislatures as Policy-Making Institutions ... 7
Court-Ordered Reapportionment Make State
Legislatures More Representative of its
Citizens 8
The Institutionalization of State
Legislatures 10
The Potential Destabilizing Consequences
of "Term-Limits" 14
The Professionalization of State
Legislators 17
Recent Incentives to Policy Activism in
State Legislatures 20
"Welfare reform" is devolved
to the states 22
Other policy priorities
in state legislatures 24
Increased state roles in
local inter-government relations
xvii
25


page
Trends in Female Representation in State
Legislatures 26
Colorado Elects the First Female State
Legislators 26
Female Legislators of the 1950s and
1960s 28
Female State Legislators Since 1970 .... 30
Recent Research on the Impact of Female State
Legislators 34
Gender Differences in Legislative Policy
Priorities 35
Female Legislators Affecting the Legislative
Process 36
"Feminist" Policy Priorities Among Female
Legislators 37
A Distinctive "Women's" and Feminist Policy
Agenda 38
3 THEORETICAL FRAMEWORK AND HYPOTHESES 41
Theories of Political Representation 41
Instructed Delegate vs. Trustee
Representation 41
Descriptive, Symbolic, and Substantive
Representation 42
Descriptive representation 43
Symbolic representation 43
Substantive representation 44
Collective vs. Dyadic Representation .... 45
Normative Representation and Ideological
Proximity 47
Legislative Theory 48
Legislative Roles 48
Members Legislative Goals 49
Components of State Legislative
Representation 49
The Impact of Gender on State Legislators'
Activities and Legislative Priorities ... 51
Minority Political Participation Theory 54
"Skewed" Groups and "Tokens" 54
"Tilted" Group Dynamics 55
African-American Women in State
Legislatures 56
Feminist Political Theory 59
Carol Gilligan's "Different Voice" .... 61
Iris Young's Response: "Representation
of Social Group Difference" . .
xviii
61


page
Joan Tronto: Moving Beyond "Women's
Morality" to a Non-Gendered
"Ethic of Care" 62
Concepts and Models Used in this Research ... 63
Traditional Women's Policy Index 66
Feminist Policy Index 66
Representing "Women's Culture" 68
4 METHODOLOGY, HYPOTHESES, AND MEASURES 71
Statement of Research Problem 71
Hypotheses 72
Sample and Participants in this Research .... 74
How Sample was Obtained 75
Necessary Sample Size for Statistical
Procedures 77
Response Rates 77
Representativeness of the Sample 78
Appropriateness of Survey Instrument 80
Legislator's Personal Policy Priorities . 82
"Women's Culture": Linkages to Women's
Legislative Caucuses 83
"Women's Culture": Linkages to Formal
Women's Organizations 85
Traditional "Women's" Policy Index 86
Feminist Policy Index 88
Variables in this Research 91
Dependent Variables 91
Independent Variables 93
Intervening and Contextual Variables .... 94
5 DATA ANALYSIS RESULTS AND FINDINGS 96
Description of Legislator Sample 96
Gender and Partisanship 96
Ethnicity 97
"Women of Color" 97
Education 98
Legislator as an Occupation 99
Occupations Outside the Legislature .... 101
Legislator's Age 101
Marital Status 102
Legislators' Children 102
Children's Ages 103
Hypotheses Testing 104
Increased Percentage of Female Legislators and
the Substantive Representation of Women's
Traditional Policy 106
xix


page
Does the "Perception" of Support for Women's
Policy Result in Bills Supporting
Women's Policy? Ill
Is there a Significant Gender Difference in
Forming Supportive Policy Coalitions? 116
Are Female Legislators More Successful
Sponsors of Women's Policy Bills? . 120
Gender Differences in Effective Sponsorship of
Legislation in "Gender-Neutral" Policy
Areas 122
The Perceived Effectiveness of Women's
Legislative Caucuses and Support for the
"Feminist" Policy Agenda 125
Participation in Women's Legislative
Caucuses 135
Participation in African-American
Caucuses 137
Participation in Conservative
Caucuses 139
Participation in Hispanic
Caucuses 141
6 CONCLUSIONS AND IMPLICATIONS 143
Representing the "Women's Policy Agenda" . 143
Revisioning Minority Status Participation
Theory 14 6
Expanding "Women's Culture" Theory to Include
Supportive Male Legislators 149
Representation in "Gender-Neutral" Policy Areas 150
Future Research Agenda 153
APPENDICES
A WOMEN STATE LEGISLATORS,
STATISTICS, 1895 1995 156
B WOMEN IN STATE LEGISLATURES 1995 159
C SURVEY INSTRUMENTS AND COVER LETTERS 162
D CREATED VARIABLE INDICES AND SCALES 177
E RESEARCH PROCEDURES 184
F LEGISLATOR SAMPLE IN THIS RESEARCH
BY STATE AND GENDER 192
xx


page
G PRE-SURVEY BROCHURE 195
H UNIVERSITY OF FLORIDA INSTITUTIONAL
REVIEW BOARD APPROVALS 198
REFERENCE LIST 201
BIOGRAPHICAL SKETCH 210
xxi


LIST OF TABLES
Table page
4.1 Female Legislators in Sample 79
4.2 Male Legislators in Sample 80
5.1 Legislator Sample Demographics 105
5.2 Support for Women's Policies in Legislation . 109
5.3 Perceived Support for Women's Policy Agenda . 113
5.4 Frequency of Coalition Building 118
5.5 Success in Passing "Gender-Neutral" Bills
Through the Legislature 123
5.6 The Perceived Effectiveness of Women's Legislative
Political Caucuses 128
5.7 Most Frequent Policy Issues Proposed by Women's
Legislative Caucuses During 1995 130
5.8 Personal Perceived Support for Feminist
Policies 132
5.9 Sponsoring Feminist Legislation 134
xxii


LIST OF FIGURES
Figure page
4.1 Research Hypotheses 74
4.2 Research Variables and Design 92
xxiii


Abstract of Dissertation Presented to the Graduate School
of the University of Florida in Partial Fulfillment of the
Requirements for the Degree of Doctor of Philosophy
THE IMPACTS OF INCREASED FEMALE REPRESENTATION
IN U.S. STATE LEGISLATURES
By
Elizabeth Grace Williams
August 1997
Chairperson: Dr. James W. Button
Major Department: Political Science
Since the mid 1960s state legislatures, which were
historically weak institutions lacking independent policy
making ability, increasingly have become "modernized."
Responding to the continued devolving of many former federal
programs, most state legislatures today have become more
independent and innovative policy developing institutions.
The number of women elected to state legislatures has
quintupled from four percent in 1970 to 20.8 percent in
1995. Female legislators currently serve in all 99 state
legislative chambers.
This research used multiple regression to analyze
legislative behavior and opinion response data from an
original 1995 nation-wide mailj survey of 1,111 (494 female
and 617 male) state legislators. Unlike most previous
research on legislative women, this sample is much more
xxiv


bipartisan and highly representative of the female
legislator population since 1994 and provides a new
opportunity to more clearly view the interactions of
partisanship, ideology, and gender on policy representation.
This research examines whether increased numbers of
female legislators provide substantive policy representation
that differs from their male counterparts on distinctively
"gendered" traditional women's policy issues and in gender-
neutral policy areas. It examines the effectiveness of
women's legislative caucuses, and membership in African-
American, conservative and Hispanic caucuses. It also
examines policy coalition building in order to pass their
priority legislative by members of these caucuses.
Results indicate female legislators provide more
effective substantive policy representation in women's
policy issues and equally effective representation in
gender-neutral policy areas. Female legislators, regardless
of party affiliation, are significantly more likely to
personally support women's policies and to successfully
sponsor and pass more "women's" bills. No significant
gender difference was found in legislators' ability to get
their "gender-neutral" priority bills passed. Linkages with
women's organizations, participation in a women's caucus,
support for increased spending in women's policy areas, and
a legislator's ideology better explain support for women's
policy than does the percentage of female legislators.
xxv


CHAPTER 1
INTRODUCTION
This study examines whether the increased percentage of
female U.S. state legislators in 1995 provided substantive
policy representation, different from their male colleagues,
in policy areas traditionally identified with female
domestic responsibilities or in gender-neutral policy areas.
It focuses on gender differences in legislative
priorities not only on "women's culture" issues but across
the spectrum of policy priorities listed by state
legislators serving in 1995. It examines gender differences
in the strength of linkages between legislators and 22
different organizations with their levels of support in the
legislator's most recent electoral campaign.
Finally this work examines the significant positive
roles of women's legislative caucuses, linkages to women's
formal groups outside the legislature and support for
spending on women's policy issues that help explain support
among legislators for women's policies, regardless of their
gender or political party. Of recent legislative gender
studies reviewed in chapter two, those most closely related
to this current research are Carroll (1992), Kathlene
1


(1991), Mezey (1978b), Reingold (1992a), and Thomas (1991
1994).
2
Theoretical Foundations
The theoretical foundations of this research are built
on substantive representation theory (Pitkin, 1967),
collective policy representation (Weissberg, 1978), and
minority group theory (Kanter, 1977) blended with third-
generation feminist political theory of social group
difference (Young, 1990) and the "ethic of care" (Tronto,
1993) These theories are examined in detail in chapter
three. Substantive collective representation involves
deliberately "acting for" or on behalf of the political and
policy interests of others, exercising independent judgement
and making policy decisions that reflect collective opinions
that extends beyond a legislator's electoral constituents.
Female Legislators
Since 1970 the percentage of women elected to state
legislatures has quintupled from four percent to 20.8
percent in 1995. Female legislators currently serve in all
99 U.S. state legislative chambers. Research in the 1970s
on the impact of female legislators found they provided
primarily passive descriptive representation. They "stood
for" other women because they were female and resembled
other women, but they provided little substantive policy


3
representation for women's collective interests. By the
late 1980s the mostly liberal Democratic female legislator
population began to provide substantive representation on
issues of traditional concern to women such as children,
youth, families, education, and health care that were based
on their domestic roles. Recent research on female state
legislators or gender difference in legislative policy
priorities closely related to this current research include
Carroll (1992), Dolan and Ford (1994), Reingold (1992a) and
Thomas (1991, 1994).
Research Problem
The purpose of this research is to examine whether
increased descriptive female representation, that is the
percentage of female legislators in a state, in U.S. state
legislatures has resulted in substantive representation for
women, that differs from that provided by their male
counterparts, on distinctively "gendered-policy" issues or
in the wide spectrum of "gender-neutral" policy areas. Many
"gendered" issues are classified as being either components
of a "women's policy agenda" or a "feminist policy agenda."
Women's policy agenda issues primary concern children,
family, public education, and elder care.1 Issues are
Specific policy areas include child abuse, children and
youth, child support, cultural affairs, public kindergarten
through high school education, services for the elderly and
aging, human services, juvenile crime and juvenile crime
prevention, and pro-life issues.


4
considered feminist if they seek to increase the economic,
education, health, legal, safety, or social status of
females.
This research also examines whether there are
significant gender differences in legislators' policy
priorities, and in building supportive coalitions to pass
their priority legislation. Factors hypothesized to be
significant in the emergence of a distinctive gender-related
"women's policy" and "feminist policy" agenda include the
presence of and strength of an organized women's legislative
political caucus, increased linkages between legislators and
formal women's political groups outside the legislature and
the frequency of forming supportive policy coalitions with
other women, supportive male colleagues, ethnic minorities,
and bipartisan female policy coalitions to pass "gendered"
policy legislation.
Hypotheses
The six research hypotheses are listed below.
As the percentage of female state legislators in a
state increase, women provide increasingly
substantive "gender-related" representation for
women's traditional policy concerns that differs
from representation by male state legislators.
H2 There is a positive relationship between the
perception of a distinctive "women's policy
agenda" and actual legislative behavior of female
legislators on behalf of women's policy concerns
through the sponsorship of bills in these policy
areas.


5
H3 Female legislators are significantly more likely
than their male counterparts to work in policy
coalitions with other groups in order to get their
priority bills passed.
H4 Female legislators are significantly more
effective sponsors of women's traditional policy
bills than their male colleagues.
Hs Female legislators will be as effective as their
male counterparts in successfully sponsoring their
priority bills in "gender-neutral" policy areas.
H6 Being a member of an effective women's legislative
caucus is positively related to members' personal
support for feminist public policy issues.
Research Design
This research used a cross-sectional self administered
"Dillman-style" non-experimental mail survey research
design. Primary data were obtained from a 1995 original
nation-wide policy attitude and legislative behavior survey
of U.S. state legislators in the fifty states. The survey
instrument was pre-tested in Florida. Following legislator
debriefings and survey revisions, the survey was mailed to
3,700 state legislators nation-wide from July through
November 1995. Multivariate analyses were conducted using
SAS.
Potential Contributions of this Research
Unlike most previous research on legislative women, the
national sample in this study is much more bipartisan and
highly representative of the female legislator population


e
following the 1994 elections. The increased numbers of
female Republican legislators in this sample provide new
research opportunities to view more clearly the interactions
of partisanship, ideology, and gender on substantive
legislative representation and policy activism at the state
level. Increased ethnic, ideological, and gender diversity
among legislators in both major political parties provide
challenges to reexamine and expand legislative and policy
gender representation research beyond "gendered" issues to
include the broader spectrum of gender-neutral policy areas
that directly affect citizens' daily lives.


CHAPTER 2
REVIEW OF STATE LEGISLATIVE RESEARCH LITERATURE
The Increased Importance of State Legislatures
as Policy-Making Institutions
Until the mid 1950s most U.S. states had "amateur" or
"citizen" legislatures composed of wealthy Caucasian males,
part-time legislators who had other occupations as their
primary source of income. Most legislators served only a
single term in office. In 1900 the mean turnover each
legislative election cycle was 90 percent in state houses
(every two years) and 80 percent in state senates (Niemi and
Winsky, 1987). Not until mid-century did state legislatures
have a majority of incumbents or experienced legislators
return for second terms in office. As late as the 1940s all
but four state legislatures met in brief biannual
legislative sessions.1 By 1960 only 17 state legislatures
met annually.
Legislatures were generally weak and institutionally
dominated by the stronger political influence of governors,
^ntil 1940 only four state legislatures (New York, New
Jersey, Rhode Island, and South Carolina) met annually.
William Pound, Chapter one, "State Legislative Careers:
Twenty-Five Years of Reform", in Changing Patterns in State
Legislative Careers (Moncrief and Thompson (eds) 1992, 10).
7


8
restricted by state constitutions, and very malapportioned.
These "moribund institutions" (Moncrief and Thompson 1992)
had destabilizing high membership turnover rates, low member
pay, inadequate facilities, no staff or member offices, and
lacked any stable political opportunity structure (Squire,
1988) or independent institutional policy-making ability.
Since 1962 four major factors have combined to
transform the majority of U.S. state legislatures of the
1990s into more autonomous, more equitably representative,
more active in and innovative policy-making organizations.
These factors include: (1) U.S. Supreme Court ordered
reapportionment of state legislatures; (2) the
institutionalization of state legislatures; (3) the
increased professionalization of state legislators; and (4)
the devolution to state legislatures of a wide scope of
formerly federal policy making and policy implementation
responsibilities.
Court-Ordered Reapportionment Make State Legislatures More
Representative of its Citizens
In part, increased opportunities for women as well as
racial, ethnic and partisan minorities to be elected to and
represented in state legislatures have their roots in U.S.
Supreme court ordered reapportionment rulings (Baker v. Carr
19622; Reynolds v. Sims 19643) and subsequent state
2Baker v. Carr, 369 U.S. 186, 82 S. Court 691 (1962).


9
constitutional revisions during the 1970s. Most state
legislatures have been reformed and modernized as they have
been legally required to become more representative of all
their citizens.
In the 1960s, prior to Baker v. Carr, many state
legislatures were grossly malapportioned so that a very
small percentage of voters (usually rural, agricultural
economic interests) were able to elect the majority of state
legislators. Fewer than one-third of the voters could elect
a majority of state representatives in six states (AL, CT,
FL, MD, MS, NY) and a majority of state senators in nine
states (AL, CA, CT, FL, IL, MD, NJ, PA and TX),4 As a
result, the social, political, and economic interests of the
majority of citizens, especially urban citizens, were
unrepresented in their own state capitols. In a landmark 7-
2 reapportionment case the Supreme Court ruled in Baker v.
Carr that a citizen's constitutional right of equal
protection under the Fourteenth Amendment applied to the
malapportionment of state legislatures, and that the federal
courts (not the malapportioned state legislatures
themselves) were the appropriate institution for deciding
such representation issues.
3Reynolds v. Sims, 377 U.S. 533 (1964) .
See Table 1.1 page 23, and Table 1.2 page 26 in Voting
Rights and Democracy (Scher, Mills, Hotaling, 1997).


10
Upon retiring, former Chief Justice Earl Warren cited
Reynolds v. Sims as the most important case of his career.5
It embodied the principle of equal representation in its
"one man (person), one vote" criterion. Its stated goal was
achieving fair and effective representation. "Whatever the
means of accomplishment, the overriding objective must be
substantial equality of population among the various
districts, so that the vote of any citizen is approximately
equal in weight to that of any other citizen in the
State...." (Reynolds, pp. 57S-579)6 This case has opened
the door for litigation on minority voting issues, racial
(and partisan) gerrymandering, and the constitutionality of
minority influence and minority access districts which
continue to cause controversy among voters, political
scientists and on the Supreme Court.
The Institutionalization of State Legislatures
In Polsby's (1968) landmark longitudinal case study of
legislative institutionalization in the U.S. House of
Representatives, he proposes three major indicators of
highly specialized or institutionalized legislative bodies.
The first measure is the establishment of clear, well
differentiated boundaries between the organization's members
5See "The Unfinished Reapportionment Revolution" (Gordon
E. Baker) Chapter Two, page 13 in Political Gerrymandering
and the Courts (Grofman, 1990).
6Ibid., page 15.


11
and the general public. Increased internal structural
complexity, but not bureaucratic hierarchy, is the second
indicator. Legislative institutionalization is
characterized by a clearly defined division of labor
including specialized functional tasks, and increased
personnel and budget resources. The third measure includes
the establishment of formal standard operating procedures
and the implementation of automatic non-discretionary
decision making rules. Polsby concludes the U.S. House is
"one of very few extant examples of a highly specialized
(successful) political institution." Evidence of this
includes the House's member and leadership career
opportunity structure, the development of a complex standing
committee (and now also subcommittee) structure and its
automatic decision making and committee appointment systems
based primarily on member seniority.
In a case study application of Polsby's theory to the
California state Assembly (state house), Squire (1992b)
challenges and critiques the seniority criterion. Following
legislative reforms in 1966, the 80 member California
Assembly was one of the most institutionalized (similar to
the U.S. House) state legislatures from the 1970s to the
1990s until the implementation of its three-term term limit
law.
Unlike the U.S. House, 97 of the 99 state legislative
chambers do not use a seniority system to determine


12
committee appointments. Decision-making and appointments
are instead most strongly influenced by partisan loyalties.
To make institutionalization theory applicable to state
legislatures. Squire convincingly argues the seniority
indicator should be replaced with a measure of decentralized
decision making.
Institutionalization of state legislatures has
resulted in annual and often longer legislative sessions; 43
of the fifty states now convene a regular (non-special)
session each year.1 But there remains a wide diversity
among the ninety-nine state legislative chambers in the
degree of institutionalization. Structural and
constitutional changes have strengthened legislative policy
making authority (compared to the executive branch) and
given 29 legislatures the ability to call themselves into
special session without gubernatorial action. William
Pound, Executive Director of the National Conference of
State Legislatures, argues "reforms have made state
legislatures more independent, analytical, and capable of
policy development." (Moncrief and Thompson, 1992, 20)
Legislator salaries have increased, but pay varies
widely among states. Rhode Island legislators are paid five
dollars per day, in Alabama legislators are paid ten dollars
per day during the session and members of New Hampshire's
7A11 states but Kentucky met during 1995, six other
states (Arkansas, Montana, Nevada, North Dakota, Oregon, and
Texas had no regular scheduled session in 1996.


13
400 member General Court (state house) make $200 per
biennium. Six full-time near year-round legislative
chambers pay professional salaries ranging from $42,000 to
nearly $60,000 (Illinois, Massachusetts, Michigan, New York,
Ohio and Pennsylvania). California pays $72,000 and the
District of Columbia pays its legislators $80,000.8 Other
characteristics of state legislative institutionalization
include longer sessions, better office and district office
resources, increased personal staff, and, most recently,
computer technology.
Legislative chambers are often classified based on
their level of institutionalization as being professional,
hybrid, or citizen legislatures. Professional legislatures
have the highest level of institutionalization and lowest
turnover. Prior to the implementation of term-limit laws,
many members made entire careers of state legislative
service in these chambers. One-fifth of U.S. states have
"professional" legislatures.9
Citizen legislatures are the least institutionalized
and most similar to state legislatures of the early 1900s.
One-third of the states continue to have citizen
8Figures are from Table 3.9 page 80 Legislative
Compensation: Regular Sessions (as of March 1995) in the
1996-97 Edition (volume 31) of The Book of States.
9The following states have professional legislatures
based on their high level of institutionalization: California,
Illinois, Massachusetts, Michigan, New York, Ohio,
Pennsylvania, and Wisconsin. (See Moncrief, Thompson,
Haddon and Hoyer, 1992).


14
legislatures.10 The remaining half have hybrid
legislatures having some characteristics of each with a
middle level of institutionalization.
The Potential Destabilizing Consequences of "Term-Limits"
It is unclear how the full implementation of term limit
laws in twenty-one states may affect institutional stability
and member professionalism in their legislatures.11 As of
May 1997 only Maine and California have met their maximum
term limit permitted by law. But 35 percent (or 2,615) of
the 7,424 state legislators nation-wide currently serve
under term limits.12 Already state courts in Nebraska have
ruled their term limit law unconstitutional, Maine ruled
theirs legal, and Federal District courts have become
involved in term-limit ballot issues in nine other states.
10Based on its membership turnover, the following 17 state
legislatures were considered to be citizen-legislatures as
of 1992: Arkansas, Idaho, Louisiana, Maine, Mississippi,
Missouri, Nevada, New Hampshire, New Mexico, North Carolina,
North Dakota, Rhode Island, South Dakota, Utah, Vermont, West
Virginia and Wyoming. (Moncrief, Thompson, Haddon, and Hoyer,
1992) .
^Between 1990 and 1996 the following twenty-one states
enacted term limit laws for their state legislators: Arizona
(1994), Arkansas (1992), California (1990), Colorado (1990),
Florida (1992), Idaho (1994), Louisiana (1995), Maine (1993),
Massachusetts (1994), Michigan (1992), Missouri (1992),
Montana (1992), Nebraska (1994), Nevada (1994), Ohio (1992),
Oklahoma (1990), Oregon (1992), South Dakota (1992), Utah
(1994), Washington (1992) and Wyoming (1992). Source: The
State of the States 3rd ed. Alan Rosenthal, Table 6.2, p 128.
12"Ticking Term Limits Part I." State Legislatures. June
1997, 12-19.


15
Rosenthal replicated Squire's earlier case study of the
California State Assembly (House) and found term-limits had
a "deinstitutionalizing" impact. (1995) He reports
increased legislator turnover rates, decreased legislator
expertise and inexperienced, often weaker, legislative
chamber leadership. He found a decrease in the norms of
apprenticeship, collegiality and institutional loyalty among
legislators.
Further complicating California's situation is the
April 1997 Federal District Court decision that California's
term limits law, Proposition 140, is unconstitutional.
Judge Claudia Wilken ruled California's life-time ban of six
to eight years total legislative service violated citizen's
first and fourteenth amendment rights. In her decision she
wrote "California's extreme version of term limits imposes a
severe burden on the right of its citizens to vote for
candidates of their choice, because it is not narrowly
tailored to advance compelling state interests."13 Judge
Wilken then suspended implementation of the ruling, pending
appeal, until after the 1998 California legislative
elections.
Term-limits are likely to most severely impact the more
professional state legislatures. Much current legislative
and policy expertise may shift away from elected officials
"California Term Limits Declared Unconstitutional."
State Legislatures, June 1997, p 17.


16
to unelected staff, agency managers and lobbyists.
Rosenthal is pessimistic about the long-term impact of term
limit laws. He predicts legislatures will become less
deliberative bodies and "in all likelihood the fabric of the
legislative institution will continue to unravel." (1995,
139)
Francis and Kenny (1997) are far less pessimistic.
They propose a dynamic model which estimates legislative
turnover will result in an increased, but stable, membership
equilibrium approaching 36 percent in professional
legislatures. They predict the impact of term limits in
state senates will provide increased political opportunity
for state house members with progressive ambition. Their
model hypothesizes that members of professional legislatures
will voluntarily exit their chamber in the election prior to
their legally imposed final term. They project those
legislators who exit earlier than the law requires, will
often run for higher office in the now more frequently
available open-seat state senate races.
Citizen and hybrid legislature members often
voluntarily leave office prior to the six or eight year
maximum in most term limit laws. In these states legal term
limits may have no significant destabilizing effect or
impact legislator turnover. Statistics compiled by the
National Conference of State Legislatures (NCSL) indicate
natural (that is, not legally required) turnover in state


17
legislatures averages 20 percent per two-year house term.
Its study found 72 percent of state senate seats, 84 percent
of state house seats, and 86 percent of state legislative
leadership positions turned over between 1987 and 1997, the
decade immediately prior to enforcement of legally mandated
term-limits.14
The Professionalization of State Legislators
Squire differs with Polsby in drawing a sharp
distinction between the institutionalization of a
legislative chamber and the professionalization of its
members. In a cross sectional study of 25 state houses, he
concluded the two most important career incentives necessary
to reduce turnover: the development of members' legislative
expertise or professionalism and the building of
institutional stability through "member pay and advancement
prospects." (Squire, 1988) Drawing from Schlesinger's
(1966) individual political ambition theory, Squire
classifies the professionalism of legislative chambers by
their political opportunity structure. He measures it by
membership stability and turnover rates compared with the
availability of potential legislative seats in higher
elective office. He classifies chambers as "dead-end"
legislatures, "spring-board" legislatures, or "career"
legislatures.
14 Ibid. p 16 .


18
Dead-end legislatures are most similar to the citizen
or amateur state legislatures of the past. Most members
have discrete political ambition and serve part-time. They
do not seek political advancement or a career in the
legislature. Turnover is high among citizen-legislators.
In Squire's sample 80 percent of representatives and 74
percent of senators in these chambers served only a single
term of office. Members receive low pay and have no staff
or a few shared staff, limited legislative resources, and
few prospects for elective advancement.
Members of such legislatures interviewed in this
research expressed a civic, almost patriotic, pride in being
citizen-legislators. They stressed their continued very
close ties with their communities and the ability of
citizens to access them directly, unfiltered by staff. They
saw virtue in serving without being unduly influenced or
beholden to high legislative salaries or reelection
pressures. They felt freer from the influence of economic
business interests and lobbyists, which several negatively
associated with more professional state legislatures and the
U.S. Congress.
In contrast, springboard legislatures attract members
who primarily have progressive political ambition to run for
and hold higher elective office. Usually these members have
short tenure and high turnover, but excellent opportunities
for advancement. Professional legislative experience in


19
this type of chamber is often used as a career "springboard1'
from a manifest or penultimate office to higher office such
as state senate or U.S. House (Francis, 1993). These
legislatures offer adequate to good pay, support and
personal staff, legislative resources including capitol and
district offices, and hold longer, sometimes near year-
round, annual sessions. About one-fifth of U.S.
legislatures may be springboard chambers, although leading
scholars differ on exact numbers. A few springboard
legislatures are among the most professional in the U.S.
(such as California) but many (such as Alaska, Kansas, New
Jersey, South Carolina, and Washington) are not. It is the
potential opportunity for political advancement of members
to higher office, not the level of professional
institutionalization, which characterizes a springboard
chamber. This is the basis of Squire's challenge to
Polsby.15
Squire classifies the remaining legislatures as career
legislatures, since they offer little political opportunity
for advancement beyond the legislature but the potential for
a rewarding career within the chamber. These chambers have
15For a comparison ranking of professionalization of the
fifty state legislatures see Table 1 in "Legislative
Professionalization and Membership Diversity in State
Legislatures" Perverill Squire (Legislative Studies Quarterly,
XVII, 1 February 1992:69-78. Also see Squires' February 1988
"Career Opportunities and Membership Stability in
Legislatures" Legislative Studies Quarterly, XIII, 1 February
1988:65-82.


20
had the highest levels of institutional stability and
members have had the longest tenures prior to the
implementation of term limits. Members most frequently have
static political ambition, seek reelection to their current
office and have limited advancement through committee or
party leadership positions within their chamber.
Recent Incentives to Policy Activism in State Legislatures
The roots of increased policy activism and innovation
seen in state legislatures today began with changes in
intergovernmental finance between the federal and state
governments with the passage of the State and Local Fiscal
Assistance Act of 1972 under President Richard Nixon's "New
Federalism." The percentage of federal aid dollars to
states has fallen by one-third from its peak in 1978 and
today accounts for only 18 percent of state revenue.
Significant among Nixon's efforts to decentralize the
federal government and return authority back to the states
was General Revenue Sharing (1972-198S). It replaced many
highly restrictive federally administered categorical
grants-in-aid, gave states federal block grant funds and
increased state authority and discretion in domestic program
spending.
Reagan's severe budget cuts in 1981 coupled with the
Gramm-Rudman-Hollings 1985 Balanced Budget and Emergency
Deficit Control Act resulted in devolving federal program


21
and policy responsibilities to states often through unfunded
federal mandates. Under the Omnibus Reconciliation Act of
1981 the Reagan administration eliminated 60 federal
categorical grants, combined the remaining 58 into nine
broad policy area block grants, and then cut federal funding
for the remaining programs by 25 percent from the previous
budget year, from $12.8 billion to $9.7 billion.16 Late in
his second term Reagan issued Presidential Executive Order
12612, which his vice president, George Bush, continued to
support throughout his subsequent presidency. This order
shifted most domestic program, policy, and financial
responsibilities back to the states and restricted the
federal government and its agencies from involving itself,
financially or legally, in any state policies unless there
was a demonstrated vital national interest at stake.
"Between fiscal 1980 and 1985, for example, federal grants
in aid to states and localities decreased in absolute terms
by S10 billion, and as a percentage of state and local
expenditures, they decreased from 26.3 to 21.0 percent."
(Kymlicka and Matthews, 1988, 197-98)
As a result of the Reagan/Bush administrations' dual
legacy (under-funded federal devolution of domestic programs
to states and an increasing federal budget deficit), state
legislative policy activism and innovation became a
16Conlan, Timothy J. "Federalism and Competing Values in
the Reagan Administration". Publius: The Journal of
Federalism v. 16, no. 1 (Winter 1986) 29-47.


22
necessity. In recent recessions demands for state provided
services, goods and programs have increased while former
federal dollars to support the programs declined or
disappeared.
Increasingly, state legislatures have assumed
responsibilities for a wide scope of domestic policies
abdicated by federal institutions. Perhaps the most recent
and dramatic example of this devolution was Clinton's reform
of Aid to Families with Dependent Children (AFDC) in a
welfare reform bill signed August 22, 1996. AFDC, a pillar
of Franklin Roosevelt's New Deal, was established as part of
the Social Security Act of 1935 following the Great
Depression. In 1996 AFDC provided cash benefits to 12.8
million poor Americans, including eight million children.
"Welfare reform" is devolved to the states
Similar to earlier policy devolution to states, welfare
reform gives reduced block grants to states to develop and
administer their own programs and to establish their own
eligibility requirements and benefit levels. More than $55
billion over six years have been cut, including $24 billion
in food stamps, from these block grants compared to what the
federal government was currently spending. States must meet
newly established strict federal guidelines to have one
fourth of their welfare recipients employed within a year or
face loosing an additional five percent of their already


23
reduced federal grant dollars. Furthermore, dollar amounts
of these block grant funds are frozen for six years and will
not be adjusted for inflation or population growth, meaning
the per-dollar purchase value will decrease over the next
six years while populations in need increase.
Many state legislatures have been proactive in
anticipating and preparing for a reduced federal role in
"welfare reform." Early successful pilot programs from
Michigan and Wisconsin were used as models for the national
legislation. Forty-five states had previously received
"waivers" from the federal government to develop innovative
welfare programs of their own. Half of all U.S. state
legislatures had taken actions to "reform" their state
welfare system by establishing conditional benefit time
limits and work-triggered limits. Seventeen states had
adopted the now federal 24 month continuous benefit limit,
while others adopted graduated limits of 30 to 36 months
based on a recipient's education level or number of parents
present in the family. South Dakota adopted the longest
benefit period of up to five years for recipients assigned
to specific educational programs. Twenty states increased
and expanded access to and funding for transitional child
care for working poor parents. Most of them doubled the
previous federal standard of twelve months under the 1988
Family Support Act. In 1995 twenty-two states considered


24
"welfare reforms" that would increase enforcement for
collecting delinquent child support payments.
Other policy priorities in state legislatures
Policy areas of importance in state legislatures are as
universal as children, youth and family concerns, health
care reforms, environmental concerns, natural resources,
labor issues and high technology telecommunications. Other
policy areas are regional and as diverse as Native American
gaming and nuclear waste storage regulation. In a November
1994 nationwide survey of state legislative leaders and
committee chairs, the National Conference of State
Legislatures found the five top legislative priorities were
(1) crime, particularly juvenile crime and criminal justice
reform, (2) budget and tax reform (property tax cuts), (3)
education funding and school safety issues, (4) economic
development, and (5) health, human services, and welfare
reform.17 Legislative leaders in 17 states responded that
criminal justice system issues, juvenile justice, and the
death penalty were their state's highest priority.
Balancing apparently contradictory citizen demands for
increased education funding with decreased property tax
levels were the top legislative priority issues in another
15 states. Economic development, including business tax
17State Legislative Priorities 1995 An Opinion Survey of
Leading Lawmakers, National Conference of State Legislatures,
Denver, CO, January 1995)


25
incentives and workforce training, topped the legislative
agenda in 14 of the remaining states.
Increased state roles in local inter-government relations
State legislatures have also become more active in
inter-governmental relations with local governments. Local
units of government are the creations of states through
municipal charters granted by state legislatures. With the
combination of decreasing federal revenues and increasing
numbers of unfunded or severely under-funded federal
mandates to cities, local governments have had to look to
their state capitol for funding to maintain even basic
services.
A current high profile example is the city of Miami,
Florida, which was on the verge of bankruptcy in 1996 with
an annual $68 million deficit, $48 million of which was
reoccurring on an annual basis. A Federal Bureau of
Investigation probe resulted in Miami's former city manager
being arrested for graft and theft, a city commissioner
plead guilty and was sentenced for extortion on city
contracts and the former finance director was charged with
extorting kickbacks and bribes on city business.
Citizens were so angered by the situation they
successfully obtained the required 100,000 voter signatures
to put a "disincorporation" referendum to public vote March
1997. Had the measure been successful, the city of Miami


26
would have been dissolved. Former municipal services would
have been provided by the metropolitan Dade county
government. The ballot issue failed, Miami remains
incorporated as the nation's fourth poorest city.
The city's $423 million in bonds were devalued to "junk
status" adversely impacting the state's economic outlook and
finances. In response, the state was required to intervene.
For the first time in Florida's 145 year history its
Governor, Lawton Chiles, appointed a five-person financial
emergencies oversight board chaired by the Lieutenant
Governor (McKay) to oversee, monitor and restore Miami's
fiscal solvency.
Trends in Female Representation in State Legislatures
Colorado Elects the First Female State Legislators
On November 6, 1894, Colorado elected the first three
female state legislators in the United States,
Representatives Carrie C. Holly, Clara Cressingham, and
Frances S. Klock, all Republicans. The women were elected,
in large part, through efforts of the East Capitol Hill
Women's Republican League. The League helped mobilize a 78
percent voter turnout among Colorado's newly enfranchised
female voters who had been granted state suffrage by
referendum in 1893. Sixty-nine women served as state
legislators in a dozen states prior to the 1920 ratification


27
of the Nineteenth Amendment to the U.S. Constitution which
guarantees women the vote nationwide.18
Policy concerns related to gender issues were evident
in the priorities and proposals of these earliest female
legislative pioneers. Representative Holly successfully
sponsored a bill into law to raise the "age of (sexual)
consent" for girls from 16 to 18 against strong opposition
from both the liquor lobby and prostitution industry,
creating a nationwide sensation over public morals. Her
bill to grant mothers equivalent custody rights to their
children as fathers was also passed into law. She even
proposed an early, albeit tabled, Colorado Equal Rights
Amendment and a bill to abolish capital punishment.
Representative Klock became a powerful committee chair on
Military and Indian Affairs. Although not active in the
suffrage movement, she emphasized bills on social welfare
including establishing a home for "friendless and
incorrigible girls." Representative Cresingham, who became
secretary of Colorado's Republican legislative caucus, "held
that one half of the legislators should be women, but that
lsFor brief political biographical sketches of the first
female state (or territorial) legislators nationwide and a
complete listing of female legislators and their terms in
office see Women State and Territorial Legislators: 1895-1995
Elizabeth M. Cox (1996) .


28
women ought not to introduce radical measures or take
radical positions on reform questions."19
Within five years after ratifying the 19th Amendment
146 women, mostly Republicans, were serving as state
legislators. Following both World War II and the Korean War
the numbers of women legislators increased substantially
(228 in 1945, and 308 in 1955). In her descriptive survey
research on female legislators who served from 1921 to 1963,
Werner (1968) found most were middle aged, married, college
educated professional women with grown children. They were
primarily teachers, lawyers, and social scientists. Most of
them were motivated to enter politics by "a sense of moral
commitment and social conscience" and "their legislative
interests center(ed) on social welfare, education, and
family life" (1968, 47,50).
Female Legislators of the 1950s and 1960s
In the 1950s female legislators were predominantly
Republican and concentrated in the New England states of
Vermont, Connecticut, and New Hampshire. They comprised
almost half of the four percent of female state legislators
(n=349) .20 These legislators represented non-urban
Quoted from "Women state and territorial legislators,
1895-1995: A state-by-state analysis with rosters of 6,000
women. (Cox, 1996,20).
20Nechemias, Carol. "Changes in the Election of Women to
U.S. State Legislative Seats." Legislative Studies Quarterly,
vol XII,1. February 1987. Data from Table 1, page 130.


29
northeastern states with low population growth and
"oversized" legislative chambers. In 1963 Vermont had 276
state legislators, Connecticut had 330, and the New
Hampshire legislature had, and still has, 424 members.
Members were elected from numerically small town or village
sized districts in which campaign costs were minimal,
trends which continued in 1995. By 1963 half of all
legislative women were concentrated in these three states;
46 were in Vermont, 45 in Connecticut, and 59 in New
Hampshire while 37 other legislative chambers had fewer than
five female members each (Nechemias, 1987). "The ease of
accessibility to grass roots (support) and the voters no
doubt contributes to the larger number of women
participating in the oversized New England legislatures
which function very much like statewide town meetings."
(Werner, 1968)
This trend continues today. In 1995 nearly ninety
percent of male and female legislators from New Hampshire
(89 percent) and Vermont (87 percent) who participated in
this dissertation research accepted no cash donations from
groups; often they spent less than one hundred dollars to be
elected. Several wrote personal notes explaining they had
spent no money in their most recent election campaign.
The percentage of women in state legislatures declined
beginning in the mid 1960s to a 1969 low of 301 seats.


30
There were 48 fewer female legislators in 1969 than a decade
earlier.
Female State Legislators Since 1970
The number of women legislators began a sharp climb
after 1969. The number of women elected to state
legislatures increased 100 percent in the decade between
1974 and 1984, continuing thereafter to a record high of
1,584 following the 1996 election. By 1997 women held 21.3
percent of state legislative seats. "Geographic
concentration (in the Northeast) and Republican party ties
of women legislators underwent a transformation in the
1970s." (Nechemias, 1987,131)
In her analysis of 80 socioeconomic and political
contexual variables, Rule (1990) found six "new wave" states
(CA, FL, HI, KS, MD and RI) that had increases of 300
percent in the number of legislative women. She credits
this increase to "the positive effect of the women's
movement as evidenced by...women's political recruitment
(for office), the proportion of elected women in the state,
large proportions of working and professional women, and
more chapters per population of the National Organization
for Women." (1986, 445).
The number of women serving in state legislatures at
the time of this research (1,535 in June 1995) has


31
quintupled from 4 percent to 20.8 percent since 1970.21 In
November 1992, referred to by the media as "The Year of the
Woman," one hundred twenty-eight women nation-wide were
elected as first-term state legislators with a then record
high of 1,547 female state legislators serving in 1992. In
the November 1994 Republican electoral "sweep," more than
one hundred Democratic female legislators lost elections and
were replaced by 88 Republican women. Ninety-seven percent
of incumbent Republican female legislators were reelected in
1994 and an additional 133 won open-seat races. Twelve
fewer women served as state legislators after the November
1994 election.
Nine additional female legislators were elected in 1995
races in Louisiana, New Jersey, and Virginia, bringing the
total of female state legislators to 1,541. In November
1996 elections 43 more women were elected, resulting in a
new record high total of 1,584 female state legislators in
office (357 Senators and 1,227 Representatives).22 For a
21Figures not cited from other sources have been provided
by the Center for American Women and Politics (CAWP) National
information bank on Women in Public Office, Eagleton Institute
of Politics, Rutgers University.
22These figures were obtained from the Center for the
American Woman and Politics, prior to the publication of the
1997 Fact sheet on Women Legislators. The 357 Senators
include 208 Democrats, 135 Republicans, one Independent, and
13 female senators elected in non-partisan elections to the
Nebraska Unicamerial. The 1,227 Representatives include 720
Democrats, 504 Republicans, and three Independents. Figures
may be subject to slight increases as a few vacant seats
remain to be "appointed".


32
one-hundred-year table of female legislators by state,
chamber and partisanship, see Appendix A.
Women are currently elected and serve in all 99 U.S.
state legislative chambers, although five state senates have
only one female member--AL, AR, NJ, UT, and WY. Alabama,
ranked last (fiftieth) in female representation at 4.3
percent in 1995, which decreased to 3.6 percent in 1996, had
six female Democratic legislators--one senator and five
representatives.23 Republican women continue to be elected
at higher rates than Democratic women. In 1995 Republican
women outnumbered their Democratic female colleagues 190 to
136 in state senates, and in lower house chambers they
outnumbered Democratic women 659 to 543. These figures
remained nearly constant in 1996 senates, 193 Republicans,
136 Democrats and houses, 657 Republicans, 538 Democrats.
For a rank ordered state-by-state listing of the number and
percentage of 1995 female state legislators by chamber and
partisanship, see Appendix B.24
Since the mid-1980s women have been increasingly
elected to state legislature leadership positions in their
chamber and party caucuses and have been appointed to
important committee chair positions. In 1993 a high of 28
23,lWomen in State Legislatures 1995 Fact sheet. Center
for the American Woman and Politics (CAWP) 12/16/94.
24"Women in State Legislatures 1995 Fact sheet (12/16/94)
and 1996 Fact sheet (2/96) Center for the American Woman and
Politics (CAWP).


33
women held elected leadership positions in their legislative
chambers, including both Senate President and House Speaker
in Alaska. In 1995 twenty-two female legislative leaders
served; a majority of them participated in this research to
be detailed later.25 In 1996 twenty-one women were elected
to chamber leadership positions in 17 states.26
State legislatures have become important penultimate
offices in the career paths of the few women elected to the
United States Congress. Most women have progressed
primarily from local government and school boards through
the state house to the state senate (or less frequently
state-wide elected office) to the U.S. House. Four women,
Margaret Chase Smith, R-ME; Olympia Snowe, R-ME; Barbara
Mikulski,D-MD; and Barbara Boxer, D-CA, have risen from
state legislatures, through the U.S. House to become U.S.
Senators, the highest national office to which an American
woman has been elected.
25Legislative leaders were identified from the Directory
of Legislative Leaders 1995, published by the National
Conference of State Legislatures.
26These formal leadership positions include Senate
President (AK), President Pro Tern (CT, WA), Senate
Majority (or Minority) Leaders in six states (DE, HI, NV,
NC, VT, and WV) Speaker of the House in three states (£K,CH,
OR, and Puerto Rico), and House Majority or Minority Leaders
in six states (CO, MO, NH, SC, UT, and WY).


34
Recent Research on the Impact of Female State Legislators
A substantial body of knowledge based on women's
electoral experience (Rule, 1990; Darcy, Welch, & Clark,
1994), candidacy (Carroll, 1985) and on the policy agendas
of female elites (Jones & Jonasdottir, 1985) at the local
and state legislative levels has been developed since the
1970s.
Early research on the impact of female state
legislators in the 1970s found they provided symbolic,
descriptive representation for women but did not differ from
male legislators in their legislative priorities or policy
agenda. In a 1974-1978 case study of 66 Hawaiian
legislators, the 22 female legislators interviewed provided
symbolic or descriptive, but not substantive, gender-related
representation different from their male colleagues (Mezey,
1978) .
A 1983-84 California (State Assembly) case study
analysis of voting behavior on 15 "women's issues" found
male assembly members were more "liberal" than their female
counterparts (Thomas, 1989). Thomas acknowledges "these
findings are quite surprising" and "contrary to our
expectations". She proposes an explanatory, but untested,
alternate "hypothesis that the (male) Democrats (in the
Assembly) are already so supportive of women's rights
legislation, little residual (gender) effect is possible"
(1989,49). Consistent with more recent findings (Dodson and


35
Carroll, 1991) Thomas found female legislators were more
supportive of women's issues than male legislators in their
political party. Female Republican legislators were less
supportive of these issues than female Democrats.
Gender Differences in Legislative Policy Priorities
As the number of women in state legislatures continued
increasing during through the 1980s, research suggested a
growing gender-based difference between the legislative
policy priorities of men and women legislators. Michelle
Saint-Germain conducted a pioneering, 17-year (1969-1986)
longitudinal policy case study of both chambers of the
Arizona legislature. During her research the percentage of
female legislators serving in Arizona increased from 12.2
percent to 20 percent. She found as the proportion of
Arizona female legislators increased, they provided more
effective substantive policy representation for traditional
women's issues and feminist issues than their male
colleagues (Saint-Germain, 1989). Furthermore, she reports
that the female legislators in her study were more
successful than their male counterparts in getting their
priority legislation on these issues enacted. Her findings
form part of the theoretical basis of this research and are
discussed in greater detail in chapter three.


36
Female Legislators Affecting the Legislative Process
In a sociolinguistic analysis of taped interviews with
ten members of the 1985 Colorado House, significant
differences were found between legislators' decision-making
processes. These were attributed to gender-related
attitudinal constructs and experiences (Kathlene, 1989).
Differences in natural language patterns appeared to reflect
gender-based values and influence how male and female
legislators "framed political" issues differently across a
wide spectrum of public policies.
In a subsequent 1989 case study of interviews with 47
Colorado legislators on their opinions on crime issues, male
legislators were found to have a more instrumental and
individual responsibility and less contextual or structural
approach to crime legislation. These perceptions positively
correlated with significant gender differences in the 30
actual proposed crime bills. Female legislators sought more
and varied policy input from a wider range of information
sources, including constituents and women's political
organizations, prior to decision-making (Kathlene, 1991).
A 1991 non-random, semi-structured interview study with
female state legislative leaders from 22 states examined
gender differences in chamber leadership styles (Jewell and
Whicker, 1993). A typology of nine legislative leadership
styles was proposed based on personal leadership style and
the legislator's primary legislative goal (power, policy, or


37
process). Female leaders were found most frequently to
facilitate chamber decisions through consensus building,
cooperation and negotiation than by command authority and
zero-sum conflictual methods. This research suggests female
legislators may be altering the policy agendas and decision
making process in their chambers.
"Feminist" Policy Priorities Amona Female Legislators
In a 1992 nationwide survey of female legislators, the
presence and strength of a self-reported "feminist identity"
among female legislators was found to be positively
correlated with their level of support for women's policy
issues. Legislators who identified themselves as strong
feminists ranked women's issues highest among their
legislative priorities significantly more often than either
weak or non-feminist legislators (Dolan and Ford, 1995).
Regional differences among female legislators were also
significant. Women representing "Southern," that is
formerly Confederate states were least likely to identify
themselves as "feminist" or "act with a distinctively
woman's identity." (Dolan and Ford, 1994) But other
scholars have found even women who reject the label of
feminist and do not think of themselves as pursuing women's
rights, introduce and successfully steer more legislation
affecting women's economic, employment, health, and family


38
concerns through state legislatures than their male
colleagues (Reingold, 1992a; Thomas, 1991).
A Distinctive "Women's" and Feminist Policy Agenda
Some scholars have identified a distinctive "women's"
or "feminist" legislative policy agenda. (Sapiro, 1981;
Jones, 1985; Mueller, 1988; Miller, 1991) A twelve-state
study of state representatives found as the number of female
legislators increased above 15 percent in a state, more
legislation was sponsored and enacted by both men and women
which dealt with child welfare, family and women's health
and social issues. (Thomas and Welch, 1990) Although this
research found an "infinitesimally small" policy impact of
increased proportions of women in state legislatures, it did
find that "gender differences are clearly apparent in
legislative priorities held by state legislators." (1990,
453)
In a 1990 two-state (Arizona and California)
attitudinal survey and interview study, a majority of female
(71 percent) and male (65 percent) legislators "believe(d)
there is an identifiable women's political issue agenda"
(Reingold, 1992b). This agenda includes issues such as
women and children's concerns, abortion issues, day care,
domestic violence, education, health care, and sex
discrimination. Women legislators in both states "cited
women, and women's groups as the most supportive


39
constituency group for female officials." (Reingold 1992b,
522) Over three-fourths (79 percent) of the female
legislators interviewed by Reingold "believed they fulfilled
a unique role vis-a-vis women's issues (only 30 percent of
the male officials agreed)." (Reingold 1992b, 530) Thomas'
earlier findings from a 1988 twelve state legislative survey
concur that female legislators do make a policy difference
and "their capacity to do so is related to the level of
support from colleagues." (1991, 958) This may be
accomplished by either having a high percentage of female
legislators or through the presence of a formal women's
legislative caucus.
A 1988 nationwide telephone survey of state legislators
by the Center for the American Woman and Politics (CAWP)
found strong linkages between legislative women and
organized women's legislative caucuses. Women's (feminist)
organizations outside their chamber were highly correlated
with how actively supportive female legislators were of
women's political interests--or "women's culture" (Carroll,
1992). A majority of legislative women "had close (and
active) ties to women's organizations, 67 percent of
senators (188) and 60.2 percent of representatives (394)
gave money to these organizations, and roughly equal numbers
report(ed) receiving monetary campaign contributions from
women's organizations." (1992, 32)


40
Methodologically rigorous research conducted in the
past few years, primarily by female political scientists,
increasingly suggests that electing more women to
legislatures and increasing or strengthening the sustaining
linkages between legislative women and women's formal
organizations may increase substantive, gender-related
policy representation of issues of special concern to women.
These findings suggest women are altering the content of
public policy in state legislatures. Further empirical
study of policy impacts of increasing numbers of female
representatives on the substantive representation of the
majority female American population could make a significant
contribution to the discipline.
Chapter three will build a theoretical foundation from
representation, legislative and feminist political theory
and more closely examine theoretical concepts in recent work
by Carroll, Mezey, Reingold, and Thomas.


CHAPTER 3
THEORETICAL FRAMEWORK AND HYPOTHESES
Theories of Political Representation
This chapter focuses on the interaction of key concepts
in political representation, legislative, minority
participation and feminist political theory to build a
framework for this research. Of particular importance to
this research is the concept of representing "women's
culture" and theories of descriptive, substantive, minority
group and collective legislative representation. This
chapter concludes with a statement of the research problem.
Instructed Delegate vs. Trustee Representation
A 1957 role-theory model study of state legislative
behavior identified three major roles or representation
styles of decision-making (Wahlke, Eulau, Buchanan, Ferguson
1962). These roles are (1) instructed delegate, (2) trustee
or guardian and (3) "politico." How legislators perceive
their role may help explain differences in legislators'
decision-making, representation style and responsiveness to
their constituents' public opinion.
41


42
As an instructed delegate, a legislator is expected to
do what constituents want and "follow instructions even if
they are counter to the representative's own personal
beliefs and judgement." (1962, 276) This model assumes a
majority of constituents are informed on each issue and have
opinions on them. Unlike the delegate, trustee legislators
are expected to use their best judgement and follow the
"moralistic dictates" of their consciences. They behave as
free agents and safeguard the best interests of constituents
by doing what is just and right--even when it conflicts with
public opinion.
The third representational role of "politico" is a
hybrid which reconciles conflicts between the trustee and
delegate model differently depending on the context and
issues involved. Many issues facing state legislators today
have become more complex than previous input-demand
representation models suggest. Legislative scholars have
begun to reject the concepts of trustee and delegate
legislators as over simplifications of the multiple complex
roles state legislators perform (Jewell, 1982) .
Descriptive. Symbolic, and Substantive Representation
In a conceptual analysis, Pitkin (1967) uses
sociolinguistic and philosophical methods to define three
different types of representation; descriptive, symbolic,
and substantive. She argues both descriptive and symbolic


43
forms of representation consist of "standing for" something,
not "acting for" or on the behalf of the interests of those
being represented. Pitkin defines political representation
as substantive representation. "Within a state,
representation most commonly is ascribed to the legislature.
Political representation is, in fact, representation,
particularly in the sense of 'acting for'." (1967,224)
Descriptive representation
Descriptive representation consists of simply having a
resemblance to something, being a mirror or an accurate
reflection. It is passive and does not involve activity.
Therefore, it can be done by inanimate objects (such as
works of art). Descriptive representation "does not allow
for the activity of representing or acting for or on behalf
of, others; which means in the political realm it has no
room for the creative activities of a representative
legislature, the forming of consensus, the formulating of
policy, or the activity we roughly designate by
'governing'." (1967,90)
Symbolic representation
Symbolic representation is also passive and often can
be done by inanimate objects that substitute for or "stand
for" something else. "Symbols are not proxy for their
objects, but are vehicles for the conception of what they


44
symbolize." (1967,97) Examples include the American Flag or
a map of North America. Both objects can stand for the
United States but neither accurately resembles or mirrors
the country in appearance. Neither symbol can "act for" or
on the behalf of the states. A person can provide symbolic
representation only if those who are to be represented
accept and believe in the legitimacy of the person as a
symbol of something else.
Substantive representation
Substantive representation involves deliberate "acting
for" in the interests of others and being held personally
(rather than institutionally) accountable for this action
and behavior. Political representation is "acting in the
interest of the represented, in a manner responsive to them;
the representative must act independently; his (or her)
action must involve discretion, and judgement." (1967, 209)
When the representatives use independent judgement and
occasionally act contrary to their constituents' opinions,
the official is held accountable to explain and at times
justify his or her independence in order to minimize
potential representation conflicts.
This definition of active substantive political
representation with independent judgement and accountability
appears to be more consistent with the trustee model of
representation than with the instructed delegate model.


45
Applying Pitkin's concepts of representation to this
research, three important conclusions can be drawn. First,
only a female legislator can provide accurate descriptive
representation for other women. Second, either gender has
the potential to provide substantive political
representation by "acting for" women's interests, since it
is the official's behavior on behalf of women not the
legislator's gender which is most crucial. Third, not all
female legislators, solely because of their gender, provide
substantive representation for traditional female policy
concerns or feminist issues. Susan Mezey says it
succinctly: "simply counting female noses in political
decision-making institutions does not provide a barometer of
support for women's policy issues." (1978, 384)
Collective vs. Dyadic Representation
Dyadic representation views substantive representation
through the "electoral context" of one legislator linked to
the specific constituents that can elect the official. In
this model citizens are (or are not) accurately represented
only by the one elected official they can vote for (or
against). The paired legislator-district model has
dominated most empirical representation research in
political science.
Pitkin argued "political representation is primarily a
public, institutionalized arrangement involving many people


46
and groups, and operating in the complex ways of large-scale
social arrangements." (1967,221) Weissberg (1978) agrees,
advocating a model of collective representation from an
institutional viewpoint. He argues collective
representation can provide more accurate and diverse
representation for non-geographically based constituents'
interests.
Collective representation "focuses on the
representation of an opinion (or policy agreement) within an
(political) institution independent of an electoral
relationship between opinion holders and the legislator."
(1978,538) An example of collective representation is a
legislator becoming an advocate and spokesperson for a
particular policy or non-geographic group of people who
share the legislator's position but have no electoral
connection to him or her.
Former U.S. Representative Patricia Schroeder (D-CO)
was an advocate for the military and for liberal feminists
throughout her Congressional career. For members of these
groups she provided collective representation, although most
of her "ideological constituents" lived outside her Colorado
congressional district and could not vote to reelect her.
Hurley (1982) argues Weissberg's concept of collective
representation should be extended beyond having a policy
opinion expressed. Hurley "redefined (it) as the extent to
which...policy output (decision) reflects the collective


47
distribution of public opinion." (1982, 121) A 1975-76
comparative case study of four western citizen state
legislatures linked collective institutional representation
with policy responsiveness (Ingram, Laney, McCain 1980). It
focused on legislators' motivations to translate public
opinion of various constituent groups into actions. Their
study expands the concept of policy representation to
include policy outputs of symbolic statements and
constituency service (in that policy area) as well as actual
policy choices and decision-making.
Unlike many racial and ethnic minorities, the majority
of American women are Caucasian and not geographically
concentrated by housing patterns into few legislative
districts. Therefore, collective representation may provide
improved or more accurate representation for women's policy
interests.
Normative Representation and Ideological Proximity
Achen (1978) defines representativeness "as a normative
property of the relationship between a legislator's opinions
and those of his constituency as a whole." (1978,477) He
develops three measures of representation: (1) ideological
proximity, (2) centrism and (3) responsiveness to
constituents. Proximity is how closely "legislators
resemble their constituents ideologically" or the
"ideological distance" between a legislator and constituents


48
on policy outcomes. Achen focused on the ideological
representation of a legislator's entire constituency--not
specific groups within it. If female legislators have
distinctive gender related policy agenda priorities,
different from their male colleagues that are strengthened
by close linkages with organized "women's groups," then both
Achen's proximity and responsiveness indicators may become
important theoretical concepts in this research.
Legislative Theory
Legislative Roles
A role-theory study of legislative behavior in four
western states combined the traditional institutional
(structural) study of state legislatures with an innovative
behavioral approach to legislator's decision-making
processes (Wahlke, Eulau, Buchanan, Ferguson, 1962) It
identified four major roles that help shape legislators'
behavior and perceptions, and influence their legislative
priorities and policy decision-making.
These roles include members' (1) core representation
roles (trustee, delegate, or politico) and (2) clientele
sector roles (how legislators respond to lobbyists and
legislative colleagues). Other important legislative roles
include specialized subroles such as holding party or
leadership positions within the chamber. Decision-making is
also affected by a legislator's personal factors, family


49
relationships, friendships and non-political social roles
such as group memberships. These competing, at times
conflicting, roles interact to help create the varied
values, priorities and differing legislative goals that
members may pursue.
Members Legislative Goals
In Fenno's (1973) Congressional study, he found
members' individual legislative goals can be summarized into
three major areas: (1) getting reelected (which is
necessary to achieving any other goal), (2) building
personal influence through taking credit for accomplishments
and "advertising their name" and (3) making good public
policy. This research will examine the relative importance
state legislators assign to specific aspects of their
clientele, personal and representational role(s). It also
examines political influences (and campaign support) from
social, professional, nonpartisan political and occupational
group memberships on legislators.
Components of State Legislative Representation
In his 1978-79 comparative case study of nine state
legislatures1, Jewell (1982) examines the complex process
Malcom Jewell conducted semi-structured open-ended
interviews over nine months (September 1978 to June 1979)
with 221 state representatives from CA, CO, KY, IN, OH, MA,
NC, TN, and Texas.


50
of collective institutional representation from the
legislator's (not the voters') perspective. He accepts
Pitkin's concept of substantive ("acting for")
representation and Weissberg's argument that "citizens are
probably better represented by legislative bodies in a
collective sense than they are by their (individual) elected
legislator." (1982,15)
Jewell identifies four components of state legislative
representation: (1) communications with constituents, (2)
policy responsiveness, (3) allocation of goods, services,
and resources for the legislator's district and (4) casework
or providing services to individual and groups of
constituents. He examines the impact of individual
legislator's characteristics, backgrounds, goals and
attitudes, legislative district characteristics and state
level differences in legislative systems, such as session
length, staffing, and so on. Jewell concludes state
legislators have considerable freedom, power and
independence to choose their legislative roles and
priorities. Many legislators deliberately increase their
constituency service roles because they yield a variety of
low-risk political benefits to the legislator while
increasing both the individual's political power and
independence. "Political advantages (of constituency
service) include... claim(ing) credit for benefits
gained...individual constituents remember assistance and


51
these activities rarely inspire any opposition. Effective
constituency service can have another important political
advantage for the legislator: it enables him (or her) to
take greater risks on issues...and to become involved in
controversial questions." (1982, 161)
The Impact of Gender on State Legislators' Activities and
Legislative Priorities
In 1963 women held only 344 or 4.4 percent of all state
legislative seats. Survey data indicate 85 percent of these
women focused their major legislative efforts on "social
welfare, family life, government process, and education
issues." (Werner, 1968,46) Few women chaired committees,
and those who did most often chaired education committees.
The women reported spending more time on their jobs,
thoroughly researching issues and learning about legislation
than their male colleagues. Women also stressed their
abilities to sustain cooperative, bipartisan friendships and
legislative working relationships through listening and
compromising with colleagues to solve problems.
Socialized gender role differences in legislative
policy expertise continued into the 1970s. A 1971 regional
New England survey indicated women continued to focus
primarily on education (18 percent), health (26 percent),
and welfare (25 percent) issues, while male legislators
focused primarily on fiscal affairs (Diamond, 1977). Male
legislators were more assertive, spoke more often on the


52
chamber floor and introduced more legislation. But female
legislators were more successful in getting their priority
legislation enacted. Female legislators were "more adverse
to bargaining, vote swapping, trading votes, and influence
by lobbyist." (1977, 47) The women were slightly more
liberal on policy views and were more likely to behave as
trustees when representing their constituents.
Legislative research data from the late 1980s and early
1990s indicate many of the gender role legislative behavior,
but not legislative priority, differences have disappeared.
Subnational survey data indicate male and female legislators
are now very similar in mean levels of time spent speaking
on the floor, in committee meetings, meeting with lobbyists
and in bargaining. But women continue to view bargaining
negatively (Thomas and Welch, 1991; Kathlene, 1992). There
was no significant gender difference in time spent on
casework (assisting constituents).
In committee assignments some changes have occurred.
Female legislators are still more likely to chair health and
welfare committees, but are no longer more likely than males
to chair education committees. Although women have become
as likely as their male colleagues to be members of budget
committees, few women chair such powerful committees.
Female legislators do spend significantly more time on
legislative activities. A 1985 study of Colorado
representatives found female legislators sought out more


53
diverse sources of information on legislative issues
(Kathlene, 1989). Crime legislation proposed by these women
was more comprehensive and from a contextual viewpoint;
while crime legislation proposed by males had a more
instrumental approach and incremental content (Kathlene,
1995) Women continue to sponsor slightly more legislation
dealing with children and families. Significant gender
differences continue in legislative priorities. "Women
(legislators) as evidenced by their self-assessed priority
legislation, committee assignments, and their proudest
accomplishment gave more priority to issues relating to
women, children, and families. Male legislators were more
likely to focus on issues of business and commerce." (1991,
453)
A majority of female (71 percent) and male legislators
(65 percent) in a 1990 two-state study believe there is an
identifiable women's political issue agenda, including
issues affecting children, the environment, education,
domestic violence and gender discrimination (Reingold,
1992) .
Regional differences, as a proxy for social tradition
and political culture, have significant impacts on the
legislative priorities of female legislators. Nearly 70
percent of southern legislative women, as opposed to 55
percent of non-southern female legislators, reported their


54
legislative priorities were women, children, and family
issues (Dolan and Ford, 1994).
Minority Political Participation Theory
The transition of female legislators from descriptive
and symbolic representation to "acting for" in substantive
representation roles has progressed as the number of women
and more importantly the ratio of women in legislative
chambers has increased. This is consistent with minority
group theory research on gender proportions in face to face
group interactions (Kanter, 1977) Four group types based
on the proportion of diversity are identified. These
include (1) uniform groups, (2) skewed groups, (3) tilted
groups and (4) balanced groups. Uniform groups are
homogeneous, all members belong to the same salient status
(single gender, ethnicity).
"Skewed" Groups and "Tokens"
Skewed groups have ratios of 85 percent and up dominant
trait members with no more than 15 percent of the members
being different and belonging to the "non-dominant" or
"token" group. Token members are often "treated as
representatives of their category, as symbols rather than
individuals" based on their collective ascribed
characteristics (1977,966). At the that of this research
(1977), female legislators held fewer than 10 percent of the


55
legislative seats; not until 1987 did women exceed the 15
percent ratio nationally. "Token" status affects
interpersonal behavior by increasing individual visibility,
polarizing or exaggerating salient differences, or by
assimilation involving stereotyping the person's social,
racial or gender type.
"Tilted" Group Dynamics
As the ratio of "minority" members increases beyond
token status, from 15 to 40 percent, groups become "tilted".
In these groups minority members are often able to make non
token substantive impacts and be viewed as individuals by
the dominate group.
Women legislators are just beginning to break into this
non-token "tilted" group status in most non-southern citizen
and hybrid legislatures as their numbers approach 21 percent
nationally. Minority members in these "tilted" groups have
enough collective representation to form effective
coalitions with potential dominate group member allies and
to influence the culture, group dynamics, and outputs of
their organization. The six state legislatures with the
highest proportion of female members in 1995 had 30 percent
to 40 percent female membership and would be considered
"tilted groups."2 In the future as the ratio of female
2The ten states with the highest percentage of female
legislators in 1995 were (in decreasing order): Washington
(39.5%), Nevada (34.9%), Colorado (31%), Arizona and Vermont


56
legislators increases to more than 40 percent in a few
states, gender groups will become "balanced. Sociological
research indicates in balanced organizations both the
minority and majority groups each become internally more
diverse with individuals having different roles and
abilities (Kanter, 1977).
African-American Women in State Legislatures
The ratio of African-American females compared to
African-American men in state legislatures is greater than
the ratio of Caucasian female legislators to Caucasian men.
Scholars have hypothesized this is due to "the
politicization of black women in the civil rights movement."
(Darcy and Hadley, 1988) It may also be due to the creation
of racial minority access (majority black) legislative
districts under the 1965 Voting Rights Act (Moncrief,
Thompson, and Schuhmann, 1991). Especially in the south,
the tie between redistricting and increases in black
representation in state legislatures is very strong. In the
past 28 years "there has never been a single decline in the
number of African-American state house members in six of the
southern states." (Bullock, 1992, 42)
(30% each), New Hampshire (29.7%), Oregon (28.9%), Maryland
(28.7%), Kansas (27.9%), and Idaho (27.6%). Figures are from
the Center for the America Woman and Politics (CAWP) "Women In
State Legislatures 1995" Fact Sheet.


57
In 1995 there were 221 "women of color" in state
legislatures, 54 senators and ¡L67 representatives. This
includes 167 African-American women, 11 Asian
American/Pacific Islander women, 35 Latinas and eight Native
American women.3 Most of these legislators are Democrats
(210 Democrats, 9 Republicans, and 2 Independents).
A 1987 analysis of 25 African-American female
legislators from eleven states found that a much higher
proportion of black women held "high prestige" jobs (56.3
percent) than did their Caucasian female counterparts (39.7
percent). More African-American female legislators held
advanced graduate degrees (54.2 percent) than any other
racial or gender group of legislators (Moncrief, Thompson,
and Schuhmann, 1991, 483).
In January 1992 African-American women held 106 state
legislative seats. Survey results indicate the legislative
priorities of African-American women have a unique "hybrid"
of gender and racial/economic concerns. Black women
legislators (who are almost exclusively Democrats) are
"strong supporters of pro-women policy issues, like their
Caucasian female Democratic colleagues, and solid
3African-American females serve in 35 states, Asian
American/Pacific Islander women in three states (HI, OR, and
WA). Latinas serve in 12 states (AZ, CA, CO, CT, IN, MN, NH,
NM, NY, TX, UT, and WA) and Native American women serve in
five states (AK, GA, MT, NM, and WY) Detailed Information
from the "Women of Color" in Elective Office 1995 Fact Sheet.
Published by the Center for the American Woman and Politics
National Information Bank on Women in Public Office, Eagleton
Institute of Politics, Rutgers University.


58
support(ers) of minority-targeted policies." (Barrett, 1995,
223) Overall, African-American female legislators' policy
priorities are more similar to those of their male racial
counterparts than to those of Caucasian females. African-
American women's legislative priorities are education,
health care reform, economic development and increased
employment opportunities.
One vehicle African-American legislators have
successfully used to "maximize their policy influence" and
translate their small numeric minority into substantive
legislative policy has been Black Legislative Caucuses.
"Nine of eleven southern states, and 25 of the 42 states
with elected black legislators have such caucuses, most
dating back to the 1970s." (Miller, 1993, 111) Substantive
legislative priorities of these caucuses primarily
beneficial to blacks include (1) minority economic
development, (2) increasing black appointed and elected
officials, (3) enhancing historically black colleges, (4)
criminal justice reforms and (5) increased human services
(1993, 115).
Ranter's (1977) theory of "tilted" group behavior
suggests gender interactions and group behavior will be
characterized by more intra-group diversity. Racial and
ethnic differences between women suggest differing
legislative priorities and goals. This research anticipates
finding increased diversity and heterogeneity among female


59
legislators based on ethnic, racial, ideological and
partisan differences.
Feminist Political Theory
Scholarly works on gender issues in political science
have been strongly influenced by three major factors. The
first influence is the second wave of .S. liberal feminism
during the 1960s and 1970s Women's Movement. Second is the
expansion of academic interdisciplinary research linked to
the development of women's studies curricula and programs.
Many of these programs had roots in the political
mobilization of U.S. women. Finally, gender issues in
political science have been brought into the mainstream by
the large increase in the numbers of elected women who have
focused attention on such issues since the 1970s.
Empirically-oriented feminist political scientists have
three fundamental criticisms of the discipline. First, they
challenge historical assumptions in much political theory
that views women only in stereotypical apolitical roles.
The political behavior and contributions of women are often
ignored, resulting in women becoming marginalized and
"invisible" as political actors. Feminist political
scientists seek to "make women visible not only as
individuals, but also as an organized, collective political
force." (Carroll and Zerilli, 1993)


60
A second critique challenges many of the traditional
quantitative methods and assumptions of political analysis
which focus mostly on outcomes and less on process. One
fundamental assumption under siege is the supposed gender
based dichotomy between the female private (domestic) sphere
and the male public or political sphere. As policy analysis
increasingly examines "the interrelationship among economy,
family and state, and political policies organizing family
life and sexuality" the personal has become political as the
two merge. (Ackelsberg and Diamond, 1987,511) Although sex
has been one among many control variables in political
research, feminist scholars argue that gender should become
a category of analysis that "puts the perspective of women
and women's experiences at the center of their analysis."
(Carroll and Zerilli, 1993)
The third major feminist critique of political science
is its failure to reconcile the inclusion of women into
traditional methods, concepts and frameworks. Feminist
theorists "argue it is necessary to transform both
institutions and speech and to incorporate into our models
new ways of relating thought and emotion, reason and
experience." (Ackelsberg and Diamond, 1987) A
sociololinguistic method advocated is natural language
discourse analysis and qualitative methods which permit
women to speak of their experiences in their own voice and
context.


61
Carol Gilligan's "Different Voice"
Several concepts developed by Carol Gilligan (1993), in
critique of Lawrence Kohlberg's hierarchical "male" model of
human moral development, form a foundation for much third-
generation feminist political theory. But Gilligan's
methodology has been highly criticized by feminist theorists
for its exclusively Caucasian upper-middle class bias and
for replicating much of Kohlberg's logic. Gilligan found
"women's morality" based on an ethic of care, nurturance and
sustaining relationships develops from women's subjective
experiences of daily living. She argued this differed from
men's more objective moral development which is based
primarily on the values of justice and rights.
Iris Young's Response: "Representation of Social Group
Difference"
Theorists such as Iris Young argue Gilligan focused her
findings too narrowly on gender issues and overlooked
important group dynamics of difference and power
relationships (1990a). Young argues that the relative
political and economic powerlessness of females, not their
gender, is at the core of many of Gilligan's early gender
difference findings. Young extends Gilligan's concept of "a
different gendered voice," to include a more diverse
postmodern philosophy of social group difference. She
defines current American politics and justice as


62
institutional domination and group oppression based on
social group difference. She calls for a theory of justice
and politics that respects and recognizes group difference.
Young argues "for principles and practices that establish
procedures for ensuring that each group's voice is heard in
the public through institutions of group representation."
(1990a, 12) She concludes, as did Weissberg and Hurley who
were discussed earlier, that "group representation is the
best means to promote just outcomes to democratic decision
making process." (1990b, 130)
Joan Tronto: Moving Beyond "Women's Morality" to a
Non-Gendered "Ethic of Care"
Gilligan argues "the moral imperative... for women is an
injunction to care, a responsibility to discern and
alleviate the 'real and recognizable trouble' of this world.
For men, the moral imperative ...is to respect the right of
others and thus to protect from interference the rights to
life and self-fulfillment." (1993,100) In contrast, Joan
Tronto argues it is necessary to move away from the sex-role
dichotomy of "women's morality."
Like Young, Tronto argues that the strong perception of
morality and care as "feminine" traits help "preserve the
distribution of power and privilege along not only gender
lines, but lines of class, race, ethnicity, education, and
other lines as well." (1993b, 91) She expands Gilligan's
"ethic of care" beyond women to include both genders, so


63
care and morality can supplement our current political focus
on justice and rights. Tronto argues, and I agree, that "in
order for all people, men and women alike, to be fully
human, it is necessary that all possess both the
orientations of justice and Gilligan's ethic of care."
(1993b, 86) She believes the concept of care, in the sense
of taking care of someone or something in both private and
public life, can be the "basis for rethinking moral
boundaries... and the terrain of current moral and political
life." (1993b, 101)
In this research the ethic of care or caring about is
embodied in the "women's" policy agenda in policy areas as
diverse and child care, domestic violence, environmental
protection and government ethics reform. Tronto concludes
"care is a central concern of human life. It is time we
began to change our political and social institutions to
reflect this truth." (1993b, 180)
Concepts and Models Used in this Research
To study the relationship between feminism, support for
women's issues and policy priorities, Dolan and Ford (1995)
asked female legislators to identify and rank themselves as
non-feminists, weak feminists or strong feminists. This
measure may have several validity problems. There are many


64
feminisms with diverse political ideologies and interests.4
Even if we assume each female legislator responding
interpreted the question to measure liberal feminism
(characteristic of the second wave of U.S. feminism), this
alone does not indicate what level of political actions she
may take as a result of her self-identification. A 1988
nationwide survey of state legislators suggests "one reason
women, regardless of whether they identify themselves as
feminist, may be more supportive of feminist policies than
men is that women more commonly experience gender-based
discrimination." (Dodson, 1991,21) This hypothesis is
consistent with interview findings among Colorado and
Arizona legislators that female legislators "were much more
likely to mention representing women, whether intentionally
or unintentionally, explicitly or implicitly." (Reingold,
1992, 515)
In this research both "attitudinal" and "behavioral"
feminism are measured; the distinction between them is
important. Legislators may not publicly acknowledge nor
privately recognize and label their support for women's
issues as feminist. This may be particularly true for
legislators unaffiliated with feminist organizations or who
Major world feminisms include, but are not limited to,
liberal feminism (the most dominant feminism in the United
States), classical Marxist feminism, socialist feminism (both
built on class consciousness and inter-class struggle), post
modern liberal feminism, radical feminism, and lesbian
separatism.


65
may disagree with one or more major policy positions of
national women's groups. Others may include many Republican
female legislators whose personal views on some women's
issues, including reproductive issues, conflict with their
national political party platform.
Very descriptively this unacknowledged advocacy for the
interests of women's increased equality has been named "the
closet feminist syndrome." (Carroll, 1984) This term is
unfortunate; instead of being inclusive of those who support
policies beneficial for women, it divides and isolates them.
It invokes the very images (and homophobia) which may have
originally distanced or alienated otherwise supportive
allies on many women's policy issues from the "feminist"
label.
"Even women (state legislators) who reject the feminist
label are more likely to support feminist policies than men
who do not consider themselves feminist." (Dodson 1991, 21)
It is gender differences in the "acting for" or the
"behavioral" component of representation on women's and
other issues this dissertation seeks to measure and explain.
Two closely related, but conceptually different, indices, a
women's policy index and a feminist policy index, are
important independent variables in this research.


66
Traditional Women's Policy Index
The women's policy index focuses on areas which have
been of traditional concern to women based largely on
domestic or "home policy" (Werner, 1968,41)
responsibilities. It deals with public policies "that
impinge primarily on the private sphere of social life ...
values associated with children and nurturance" (Sapiro,
1981, 703) or occupational "roles consistent with women's
social role" such as nurse, teacher or social worker
(Werner, 1968,41). These policy areas include, but are not
limited to, children's issues, education, family health
care, public health and social welfare.
Feminist Policy Index
A feminist policy index is "defined by the goal or
direction of public policy: promoting equality for or
improving the (social, political, economic, educational)
status of women." (Saint-Germain, 1989, 957) The feminist
policy index developed in this research has its conceptual
roots in Mezey's feminism index used in a study of local
government representatives in Connecticut (1978a, 489) and
her indices of feminist support for women's issues in a 1974
case study of Hawaiian state legislators (1978b, 377).
Mezey's Hawaii findings were mixed and failed to support her
hypothesis twenty years ago. She did find female
legislators were stronger "advocates" of feminist positions,


67
but women did not differ in policy positions (substantive
representation) from their male colleagues. These findings
were consistent with other 1970s studies when women held 444
or only 5.9 percent of all state legislative seats.
A 1988 nationwide telephone survey of state legislators
used a feminist policy index of three issues; (1) support
for the Equal Rights Amendment, (2) opposition to "parental
consent" for juveniles seeking an abortion and (3)
opposition to prohibiting abortion (Dodson, 1991). This
study found both gender and partisanship strongly influenced
support for feminist issues. "Self labeled feminists among
both women and men were more likely, than non-feminist
women, to score high on the feminist policy index."
(1991,20) Democratic women were most supportive of
"feminist" issues as defined in this index, with three
legislators in five ranking "high" (more feminist). Another
significant finding in that research was the equal, but
lower, levels of support among Republican women and
Democratic men for feminist issues. One third of each group
ranked "high" on the index. But Republican males were far
less supportive with fewer than ten percent indicating high
levels of support for feminist issues.
There are several problems with using this policy index
today. The two "abortion" related policy issues may measure
a single policy opinion--one arguably strongly influenced by


68
specific religious beliefs held by various denominations (a
variable not measured in this study).
The other limitation of this index is the datedness of
the Equal Rights Amendment question which no longer appears
to be a salient issue, especially among younger Americans.
(I was strongly reminded of this when only two students,
both adult learners, out of 300 enrolled in my undergraduate
political science course could correctly identify the ERA--
not as a laundry detergent or a national real estate
corporation, but the Equal Rights Amendment.)
Representing Women's "Culture"
Analysis of 1988 state legislators found that female
legislators who are involved with and active in women's
organizations are most active in representing "women's
culture" in their legislative priorities (Carroll, 1992).
Women's organizations within the legislature such as
informal networks, organized womens' legislative caucuses
and national organizations for female legislators also
appear to provide important linkages between elected women
and representing issues of particular social and economic
concern to women. In a 1990 survey female legislators in
California and Arizona "cited women, and women's groups as
the most supportive constituency group for female
officials." (Reingold, 1992,522)


69
The concept of "women's culture" has joint roots in
nineteenth century historical studies and radical/cultural
feminist theory. "Women's culture is (defined as) the
commonality of women's shared interests, values,
perspectives, and patterns of interaction women share as a
result of the socially constructed sexual division of labor
in society." (Carroll, 1992, 238) Many specific policy
areas of concern are included such as children's issues,
protection, child support, day care, family issues, caring
for economically and disadvantaged groups, reproductive
issues, teen pregnancy, poverty and welfare issues, women's
rights, gender discrimination in employment, education,
housing and enhancing business opportunities for women and
minorities.
Nearly two-thirds of the female legislators studied (67
percent of senators and 60.2 percent of representatives) had
close and active ties to women's organizations outside the
legislature; and three quarters reported regularly attending
and participating in women's caucus or network meetings
within their legislature (Carroll, 1992). In 1989 only ten
states reported having formal women's legislative caucuses;
as of 1995 this had increased to twenty-six states.
This research focuses on gender differences in
legislative priorities not only on "women's culture" issues
but across the spectrum of policy priorities listed by state
legislators serving in 1995. It examines gender differences


70
in the strength of linkages between legislators and 22
different organizations with their levels of support in the
legislator's most recent electoral campaign. Of the studies
reviewed here, those that are most significant and closely
related to this current research are Carroll (1992),
Kathlene (1991), Mezey (1978b), Pitkin (1967), Reingold
(1992), and Thomas (1991, 1994).
Chapter four will specify the hypotheses of this
research, define the variables used in this research, how
and why independent variable indices were created and the
detailed procedures used in conducting and analyzing data
from this seven-month mail survey sent to 3,700 state
legislators in the 50 states.


CHAPTER 4
METHODOLOGY, HYPOTHESES AND MEASURES
This research used a cross-sectional self administered
"Dillman-style" mail survey non-experimental research
design.1 Primary data were obtained from a 1995 original
nation-wide policy attitude and legislative behavior survey
of U.S. state legislators in the fifty states. The survey
instrument was pre-tested in mid June 1995 with ten Florida
legislators. After personal debriefings and subsequent
survey revisions, the instrument was mailed to 3,700 state
legislators nation-wide from July through November 1995.
This chapter will discuss in detail the research
problem, hypotheses, participant population, sampling
procedure, survey instrument, measures, and data collection
procedures used in this research.
Statement of Research Problem
The purpose of this research is to examine whether
increased descriptive female representation, that is the
percentage of female legislators in a chamber in U.S. state
'For details on specifics of constructing and
implementing a "Total Design Method" mail survey see chapters
four and five in Mail and Telephone Surveys by Don A. Dillman
(1978).
71


72
legislatures has resulted in substantive representation for
women on distinctively "gendered-policy" issues. Many of
these "gendered" policy areas are classified as being either
components of a "women's policy agenda" or a "feminist
policy agenda." Impacts of linkages between legislators and
traditional women's and feminist organizations, and the
presence of (and legislator's participation in) a women's
legislative caucus on substantive policy representation are
examined.
Furthermore, this research tests for significant gender
differences in legislative priorities and legislative
effectiveness in sponsoring and passing a wide spectrum of
"gender-neutral" policies state legislators identified as
their personal legislative priorities during the 1995
sessions.
Hypotheses
There are six main hypotheses in this research. The
first hypothesis is that as the percentage of female state
legislators in a state increases, women provide increasingly
substantive "gender-related" representation for women's
traditional policy concerns that differs from representation
by male state legislators. The second hypothesizes a
positive relationship between the perception of a
distinctive "women's policy agenda" and actual legislative
behavior of female legislators on behalf of women's policy


73
concerns. The third hypothesis is that female legislators
are significantly more likely to work in policy coalitions
with other groups to get their priority bills passed. The
fourth hypothesis is that female legislators are
significantly more effective sponsors of women's traditional
policy bills than their male colleagues. Hypothesis five
states female legislators will be equally as effective as
male legislators to successfully sponsor and pass "gender-
neutral" legislation. Hypothesis six states being a member
of an effective women's legislative caucus is positively
related to members' personal support for feminist public
policies.
Factors hypothesized to be significant in the emergence
of a distinctive gender-related "women's policy" and
"feminist policy" agenda include the presence of and
strength of an organized women's legislative political
caucus, increased linkages between female legislators and
organized women's political groups, the frequency of policy
coalitions with supportive male colleagues on "gendered
issues" and other priority legislation and the presence of
women in legislative committee positions of influence in
policy areas of traditional concern to women and in
committee positions of influence over bills seeking greater
equality for women, that is feminist legislation.
A summary of major hypotheses is shown in Figure 4.1 on
the next page.


74
Hj. As the percentage of female state legislators in a
state increase, women provide increasingly
substantive "gender-related" representation for
women's traditional policy concerns that differs
from representation by male state legislators.
H2 There is a positive relationship between the
perception of a distinctive "women's policy
agenda" and actual legislative behavior of female
legislators on behalf of women's policy concerns
through the sponsorship of bills in these policy
areas.
H3 Female legislators are significantly more likely
than their male counterparts to work in policy
coalitions with other groups in order to get their
priority bills passed.
H4 Female legislators are significantly more
effective sponsors of women's traditional policy
bills than their male colleagues.
H5 Female legislators will be as effective as their
male counterparts in successfully sponsoring their
priority bills in "gender-neutral" policy areas.
H6 Being a member of an effective women's legislative
caucus is positively related to members' personal
support for feminist public policy issues.
Figure 4.1 Research Hypotheses
Sample and Participants in this Research
Preliminary state legislator contact information
including name, chamber, mailing address, gender and
partisanship was obtained from the Election Results
Directory (1995 edition) published by the National


Full Text
LD
1780
1991
.UJ7 2 2 I


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 EWMPCJ8QS_ZNPIXM INGEST_TIME 2013-03-25T14:53:15Z PACKAGE AA00013581_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
FILES



PAGE 1

7+( ,03$&76 2) ,1&5($6(' )(0$/( 5(35(6(17$7,21 ,1 26 67$7( /(*,6/$785(6 %\ (/,=$%(7+ *5$&( :,//,$06 $ ',66(57$7,21 35(6(17(' 72 7+( *5$'8$7( 6&+22/ 2) 7+( 81,9(56,7< 2) )/25,'$ ,1 3$57,$/ )8/),//0(17 2) 7+( 5(48,5(0(176 )25 7+( '(*5(( 2) '2&725 2) 3+,/2623+< 81,9(56,7< 2) )/25,'$

PAGE 2

&RS\ULJKW E\ (OL]DEHWK *UDFH :LOOLDPV

PAGE 3

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

PAGE 4

$&.12:/('*0(176 ,Q 0DUFK ZKHQ WKH SURVSHFWXV IRU WKLV GRFWRUDO UHVHDUFK ZDV DSSURYHG FRXOG KDYH QHYHU LPDJLQHG WKH HQRUPLW\ RU FRPSOH[LW\ RI ZRUN LQYROYHG RU WKH PDQ\ SHRSOH ZKRVH DVVLVWDQFH ZRXOG EH QHHGHG WR FRPSOHWH WKLV UHVHDUFK RYHU WKH SDVW WZR \HDUV $V ORRN EDFN DW P\ RULJLQDO FRPSOHWLRQ WLPHWDEOH DP DPD]HG DW P\ QDLYH DQG XQUHDOLVWLF H[SHFWDWLRQV IRU P\ FRPSOHWLRQ $V KRSHG IRU JUDGXDWLRQ GHDGOLQHV SDVVHG P\ 'DG FRQILGHG LQ PH WKDW KH KDGQn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

PAGE 5

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

PAGE 6

UHVHDUFK LQWHUHVWV DQG KDYH SXEOLVKHG WRJHWKHU KDYH VRXJKW WR PRGHO WKH EHVW RI KLV WHDFKLQJ UHVHDUFK DQG VWXGHQW LQWHUDFWLRQ EHKDYLRU VW\OHV KDYH EOHQGHG WKHP ZLWK P\ SKLORVRSK\ RI OHDUQLQJ LQWR P\ RZQ SHUVRQDO VW\OH RI WHDFKLQJ DFDGHPLF FRXQVHOLQJ DQG VWXGHQW SHUIRUPDQFH IHHGEDFN 'U 0 0DUJDUHW 3HJJ\f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f UHVXOWHG LQ D VXVWDLQHG ZRUNLQJ UHODWLRQVKLS ZLWK 6HQDWRU 0\UQD %DLU 3K' '(5f SUHVLGHQW RI WKH :RPHQnV 1HWZRUN RI WKH 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV ,W ZDV LQ 'U :D\QH )UDQFLVn OHJLVODWLYH UHVHDUFK PHWKRGRORJ\ DQG VWDWLVWLFV VHPLQDUV ILUVW EHJDQ WR FOHDUO\ IRFXV RQ P\ LQWHUHVWV LQ KRZ JHQGHU LQWHUDFWV ZLWK Y[

PAGE 7

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f DGPLQLVWUDWLYH DVVLVWDQW DQG VXEVHTXHQWO\ DVVLVWHG KHU LQ YLL

PAGE 8

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

PAGE 9

SURIHVVLRQDO DFDGHPLF DQG HWKLFDO FRQFHUQV 'U :DOG KDV HDUQHG QRW RQO\ P\ UHVSHFW EXW DOVR P\ DGPLUDWLRQ IRU KLV SHUVRQDO LQWHJULW\ DQG SURIHVVLRQDO DELOLWLHV 7ZR PHPEHUV RI P\ PDVWHUn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n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f 5RVHQEDXP DQG 'U 5LFKDUG 6FKHU 2WKHU 8QLYHUVLW\ RI )ORULGD IDFXOW\ ZKRVH ,;

PAGE 10

LQSXW DQG HQFRXUDJHPHQW KDYH EHHQ YDOXDEOH LQFOXGH 'U 0 +DUGPDQ 3URIHVVRU RI /LQJXLVWLFV DQG $QWKURSRORJ\ 'U +HOJD .UDIW 3URIHVVRU RI *HUPDQ DQG 6ODYLF /DQJXDJHV DQG IRUPHU 'LUHFWRU RI WKH :RPHQnV 6WXG\ &HQWHU 'U 2IHOLD 0 6FKXWWH 3URIHVVRU RI 3KLORVRSK\ DQG 'U 3DWULFLD / 6FKPLGW 3URIHVVRU RI (QJOLVK 6LQFHUHVW DSSUHFLDWLRQ WR 'U 0DULDQ 3DOOH\ 3URIHVVRU RI 3ROLWLFDO 6FLHQFH DQG WR 'U 0\UQD %DLU 'LUHFWRU RI :RPHQnV /HDGHUVKLS 3URJUDPV ERWK DW WKH 8QLYHUVLW\ RI 'HODZDUH LQ 1HZDUNf )RU VKDULQJ WKHLU VXUYH\ LQVWUXPHQWV DQG FRQWDFW VRXUFHV DQG IRU WKHLU HQFRXUDJHPHQW WKDQNV DUH JLYHQ WR 'U /\QQ )RUG 3URIHVVRU RI 3ROLWLFDO 6FLHQFH &ROOHJH RI &KDUOHVWRQf 'U .DWKOHQH 'RODQ 3URIHVVRU RI 3ROLWLFDO 6FLHQFH 8QLYHUVLW\ RI :LVFRQVLQ 2VKNRVKf 'U 5RGQH\ +HUR 3URIHVVRU RI 3ROLWLFDO 6FLHQFH 8QLYHUVLW\ RI &RORUDGR %RXOGHUf DQG 'U %HWK 5HLQJROG 3URIHVVRU RI 3ROLWLFDO 6FLHQFH (PRU\ 8QLYHUVLW\f 6SHFLDO DSSUHFLDWLRQ IRU WKHLU FRQWLQXLQJ HQFRXUDJHPHQW LV DOVR JLYHQ WR 'U *ROGLH %HDU DQG WR 0V 5REELH %ODNH IRUPHU SURJUDP DVVLVWDQW IRU WKH 8QLYHUVLW\ RI )ORULGDnV &HQWHU IRU :RPHQnV 6WXGLHV DQG *HQGHU 5HVHDUFK :LWKRXW WKH HIILFLHQW YHU\ DFFXUDWH ZRUN DQG FKHHUIXO KHOS RI 0V 0DUW\ 6ZLOOH\ DQG 0V 'HEELH :DOOHQ VHQLRU VHFUHWDULHV LQ SROLWLFDO VFLHQFH 0V +D]HO 3ULGJHQ SROLWLFDO VFLHQFH RIILFH PDQDJHU DQG RXU RIILFH DVVLVWDQWV 0V /\QQ &ROHV DQG 0V 5RPQH\ *LUGQHU WKLV ZRUN FRXOG QRW KDYH EHHQ FRPSOHWHG 0DUW\ 'HEELH DQG +D]HO HVWDEOLVKHG [

PAGE 11

VSHFLDO DFFRXQWV IRU WKH RQFDPSXV SULQWLQJ RI VXUYH\V DQG KDQGOHG D P\ULDG RI RWKHU UHODWHG DGPLQLVWUDWLYH WDVNV 7KHLU VXSSRUW DQG IULHQGVKLS KDV PDGH WKLV HQRUPRXV WDVN SRVVLEOH $SSUHFLDWLRQ LV DOVR JLYHQ WR WKH IROORZLQJ IRU WKHLU PDQ\ HIIRUWV RQ EHKDOI RI WKLV ZRUN 0U )UHG %DWLH 6XSHUYLVRU 8) &DPSXV 0DLOURRP 0U $ %ODFN HGLWRU &DOLIRUQLD -RXUQDO 0V /DXULH %XIILQJWRQ DQG 0V .DUHQ &DLQ 0DQDJHUVf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

PAGE 12

GRFWRUDO VWXGHQW FROOHDJXHV PDQ\ RI ZKRP DUH DOUHDG\ RU DUH VRRQ WR EH 3K'V WKDQN WKHP IRU WKHLU DGYLFH IULHQGVKLS FKHHUIXO HQFRXUDJHPHQW HPSDWK\ DQG PDQ\ VXUYH\ IROGLQJ HQYHORSH W\SLQJ DQG VWDWLVWLFDO VNLOOV HVSHFLDOO\ WKDQN 0U -RQ $QGHUVRQ 'U 5XVVHOO %HQMDPLQ 0V 7LQD 0HQGH]f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f 5LFK 5LFKDUGf $ .HOOH\ -U 0V &DWK\ /DXUHQ]Lf 0F&XOOHU 0V )UDQ &UXVHf 0F'RQQHOO DQG 0V 6XVDQ %DUILHOGf :ULJKW 6LQFHUH DSSUHFLDWLRQ LV H[WHQGHG WR 0U 5R\ %RRN DQG KLV ZLIH 'RQQD LQ PHPRU\ RI WKHLU ORYLQJ VRQ DQG P\ GHDU IULHQG .HYLQ 0LFKDHO %RRN $ UHVHDUFK SURMHFW RI WKLV VL]H UHTXLUHV PDQ\ VRXUFHV RI IXQGLQJ 0\ FRPPLWWHH DQG KDYH FRQVLVWHQWO\ ZRUNHG YHU\ KDUG DQG IUHTXHQWO\ EHHQ VXFFHVVIXO DQG RFFDVLRQDOO\ OXFN\f LQ FRPSHWLQJ IRU ILQDQFLDO VXSSRUW 6SHFLDO DSSUHFLDWLRQ IRU IXQGLQJ DQG LQNLQG VXSSRUW JR WR 'HDQ /RFNKDUW DW WKH *UDGXDWH 6FKRRO IRU D SUHGRFWRUDO [LL

PAGE 13

UHVHDUFK IHOORZVKLS f DQG WR 'HDQ QRZ $VVLVWDQW 3URYRVWf 'DYLG &ROEXUQ IRU D &ROOHJH RI /LEHUDO $UWV 'LVVHUWDWLRQ )HOORZVKLS f )RU WUDYHO DQG UHVHDUFK JUDQWV PDQ\ WKDQNV WR 'HDQ (OL]DEHWK /DQJODQG &ROOHJH RI /LEHUDO $UWV WR 'U .DUHQ +ROEURRN 9LFH 3UHVLGHQW RI WKH 2IILFH RI 5HVHDUFK DQG *UDGXDWH (GXFDWLRQ IRU D PDWFKLQJ UHVHDUFK JUDQW DQG WR 'U 6WHYHQ ( 6DQGHUVRQ &KDLU RI 3ROLWLFDO 6FLHQFH IRU DGGLWLRQDO GHSDUWPHQW PDWFKLQJ IXQGV $SSUHFLDWLRQ LV H[WHQGHG WR 'U 'HEELH :DOVK $FWLQJ 'LUHFWRU RI WKH &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV DW 5XWJHUV 8QLYHUVLW\ DQG WR 0V 7REL :DONHU 'LUHFWRU RI WKH
PAGE 14

(YHQ DGHTXDWH IXQGLQJ FRXOG QRW DVVXUH WKH VXFFHVV RI WKLV UHVHDUFK 7KH PDQ\ HIIRUWV LQFOXGLQJ FRVLJQLQJ WKH ZRPHQnV VXUYH\ FRYHU OHWWHUf DQG DFWLYH SDUWLFLSDWLRQ RI 6HQDWRU 0\UQD %DLU '(5f LQ KHU FDSDFLW\ DV YLFH SUHVLGHQW WKHQ SUHVLGHQW RI WKH :RPHQnV 1HWZRUN RI WKH 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV 1&6/f ZHUH HVVHQWLDO 6WDII VXSSRUW IURP 6HQDWRU %DLUnV VHFUHWDU\ 6WHSKDQLH DQG IURP 0V $QQHWWH 'XUODP VWDII OLDLVRQ RI WKH 1&6/nV :RPHQnV 1HWZRUN DQG WKH KHOS RI IRUPHU VWDWH VHQDWRU 1DQF\ %URZQ .65f DV 1HWZRUN 1HZV HGLWRU DQG FRRUGLQDWRU RI WKH UHJLRQDO :RPHQnV /HJLVODWLYH /HDGHUVKLS 'HYHORSPHQW &RQIHUHQFHV ZDV YHU\ YDOXDEOH 6LQFHUH WKDQNV DUH JLYHQ WR 6HQDWRU *HRUJH .LUNSDWULFN )/'f IRU VLJQLQJ QXPHURXV FRYHU OHWWHUV IRU VXUYH\V DGPLQLVWHUHG WR PDOH OHJLVODWRUV $SSUHFLDWLRQ LV HVSHFLDOO\ JLYHQ WR 0U 0LNH 0XUWKD 6HQDWRU .LUNSDWULFNnV YHU\ HIILFLHQW DQG KHOSIXO OHJLVODWLYH DVVLVWDQW IRU FRRUGLQDWLQJ WKH 6HQDWRUnV SDUWLFLSDWLRQ DQG IRU WKHLU DVVLVWDQFH LQ WKH )ORULGD SLORW SUHWHVWLQJ 7KH HIIRUWV RI OHJLVODWLYH DLGH 0U 3HWHU '\JD LQ 5HSUHVHQWDWLYH %RE &DVH\nV )/5f RIILFH DOVR GHVHUYH VSHFLDO WKDQNV 7KH SDUWLFLSDWLRQ RI D UHSUHVHQWDWLYH VDPSOH RI WHQ )ORULGD OHJLVODWRUV LQ WKH SUHWHVWLQJ DQG SHUVRQDO GHEULHILQJ LQWHUYLHZV DQG WKHLU VXEVHTXHQW UHFRPPHQGDWLRQV IRU UHYLVLQJ WKH VXUYH\ ZHUH YHU\ KHOSIXO 7KHLU FRPELQHG HIIRUWV VLJQLILFDQWO\ LPSURYHG WKH TXDOLW\ RI WKH LQVWUXPHQW DQG KRSHIXOO\ WKH ILQGLQJV RI WKLV ZRUN 7KH )ORULGD [LY

PAGE 15

OHJLVODWRUV ZKR SDUWLFLSDWHG LQ WKH SUHWHVW DUH QRW LQGLYLGXDOO\ QDPHG KHUH EHFDXVH RI WKH FRQILGHQWLDOLW\ JXDUDQWHH JLYHQ WR DOO VXUYH\ UHVSRQGHQWV DP SDUWLFXODUO\ LQGHEWHG WR WKH SDUWLFLSDWLQJ OHJLVODWRUV QDWLRQZLGH ZKR WRJHWKHU FRQWULEXWHG PRUH WKDQ WRWDO KRXUV RI WKHLU WLPH 7KH\ VKDUHG WKHLU OHJLVODWLYH H[SHULHQFH SROLF\ DWWLWXGHV DQG RSLQLRQV WKURXJK WKHLU VXUYH\ UHVSRQVHV SKRQH FDOOV LQWHUYLHZV DQG PDQ\ DWWDFKHG SHUVRQDO OHWWHUV :LWKRXW WKHLU HIIRUWV WKHUH ZRXOG KDYH EHHQ QR UHVHDUFK GDWD 0DQ\ OHJLVODWRUV VHQW SROLF\ EURFKXUHV DQG LQIRUPDWLRQ RQ WKHLU SURXGHVW SROLF\ DFKLHYHPHQWV DQG RQ SURJUDPV LPSOHPHQWHG WKURXJK OHJLVODWLRQ WKH\ KDG VXFFHVVIXOO\ VSRQVRUHG 7R P\ H[WHQGHG IDPLO\ JLYH P\ JUDWHIXO DSSUHFLDWLRQ IRU WKHLU HQFRXUDJHPHQW DQG PDQ\ HIIRUWV RQ P\ EHKDOI HVSHFLDOO\ ZDQW WR UHFRJQL]H 0UV 3DWULFLD %ORRP 0V $OLFH &ODZVRQ P\ $XQW *LQQ\ DQG 8QFOH 3DXO 0U DQG 0UV 3DXO :LOOLDPVf DQG P\ IDWKHU 0U 1HOVRQ *DUUHWW :LOOLDPVWR ZKRP WKLV GLVVHUWDWLRQ LV MRLQWO\ GHGLFDWHG DP JUDWHIXO WKDW IURP P\ HDUOLHVW FKLOGKRRG P\ IDWKHUnV DFWLYH SDUHQWLQJ DQG H[DPSOH HQFRXUDJHG DQG WDXJKW PH WR EH UHVRXUFHIXO DQG VHOIFRQILGHQW DQG WKDW ZLWK HQRXJK KDUG ZRUN FRXOG VXFFHVVIXOO\ SXUVXH DQ\ SURIHVVLRQ RU FDUHHU FKDQJH 7R -DFN -RKQf 5REHUW %ORRP P\ SDUWQHU LQ OLIH DQG PDUULDJH RZH P\ JUHDWHVW GHEW RI DSSUHFLDWLRQ DQG XQFRQGLWLRQDOO\ JLYH P\ ODVWLQJ ORYH +LV XQZDYHULQJ [Y

PAGE 16

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

PAGE 17

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

PAGE 18

SDJH 7UHQGV LQ )HPDOH 5HSUHVHQWDWLRQ LQ 6WDWH /HJLVODWXUHV &RORUDGR (OHFWV WKH )LUVW )HPDOH 6WDWH /HJLVODWRUV )HPDOH /HJLVODWRUV RI WKH V DQG V )HPDOH 6WDWH /HJLVODWRUV 6LQFH 5HFHQW 5HVHDUFK RQ WKH ,PSDFW RI )HPDOH 6WDWH /HJLVODWRUV *HQGHU 'LIIHUHQFHV LQ /HJLVODWLYH 3ROLF\ 3ULRULWLHV )HPDOH /HJLVODWRUV $IIHFWLQJ WKH /HJLVODWLYH 3URFHVV )HPLQLVW 3ROLF\ 3ULRULWLHV $PRQJ )HPDOH /HJLVODWRUV $ 'LVWLQFWLYH :RPHQn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n $FWLYLWLHV DQG /HJLVODWLYH 3ULRULWLHV 0LQRULW\ 3ROLWLFDO 3DUWLFLSDWLRQ 7KHRU\ 6NHZHG *URXSV DQG 7RNHQV 7LOWHG *URXS '\QDPLFV $IULFDQ$PHULFDQ :RPHQ LQ 6WDWH /HJLVODWXUHV )HPLQLVW 3ROLWLFDO 7KHRU\ &DURO *LOOLJDQnV 'LIIHUHQW 9RLFH ,ULV
PAGE 19

SDJH -RDQ 7URQWR 0RYLQJ %H\RQG :RPHQnV 0RUDOLW\ WR D 1RQ*HQGHUHG (WKLF RI &DUH &RQFHSWV DQG 0RGHOV 8VHG LQ WKLV 5HVHDUFK 7UDGLWLRQDO :RPHQnV 3ROLF\ ,QGH[ )HPLQLVW 3ROLF\ ,QGH[ 5HSUHVHQWLQJ :RPHQnV &XOWXUH 0(7+2'2/2*< +<327+(6(6 $1' 0($685(6 6WDWHPHQW RI 5HVHDUFK 3UREOHP +\SRWKHVHV 6DPSOH DQG 3DUWLFLSDQWV LQ WKLV 5HVHDUFK +RZ 6DPSOH ZDV 2EWDLQHG 1HFHVVDU\ 6DPSOH 6L]H IRU 6WDWLVWLFDO 3URFHGXUHV 5HVSRQVH 5DWHV 5HSUHVHQWDWLYHQHVV RI WKH 6DPSOH $SSURSULDWHQHVV RI 6XUYH\ ,QVWUXPHQW /HJLVODWRUnV 3HUVRQDO 3ROLF\ 3ULRULWLHV :RPHQnV &XOWXUH /LQNDJHV WR :RPHQnV /HJLVODWLYH &DXFXVHV :RPHQnV &XOWXUH /LQNDJHV WR )RUPDO :RPHQnV 2UJDQL]DWLRQV 7UDGLWLRQDO :RPHQnV 3ROLF\ ,QGH[ )HPLQLVW 3ROLF\ ,QGH[ 9DULDEOHV LQ WKLV 5HVHDUFK 'HSHQGHQW 9DULDEOHV ,QGHSHQGHQW 9DULDEOHV ,QWHUYHQLQJ DQG &RQWH[WXDO 9DULDEOHV '$7$ $1$/<6,6 5(68/76 $1' ),1',1*6 'HVFULSWLRQ RI /HJLVODWRU 6DPSOH *HQGHU DQG 3DUWLVDQVKLS (WKQLFLW\ :RPHQ RI &RORU (GXFDWLRQ /HJLVODWRU DV DQ 2FFXSDWLRQ 2FFXSDWLRQV 2XWVLGH WKH /HJLVODWXUH /HJLVODWRUnV $JH 0DULWDO 6WDWXV /HJLVODWRUVn &KLOGUHQ &KLOGUHQnV $JHV +\SRWKHVHV 7HVWLQJ ,QFUHDVHG 3HUFHQWDJH RI )HPDOH /HJLVODWRUV DQG WKH 6XEVWDQWLYH 5HSUHVHQWDWLRQ RI :RPHQnV 7UDGLWLRQDO 3ROLF\ [L[

PAGE 20

SDJH 'RHV WKH 3HUFHSWLRQ RI 6XSSRUW IRU :RPHQnV 3ROLF\ 5HVXOW LQ %LOOV 6XSSRUWLQJ :RPHQnV 3ROLF\" ,OO ,V WKHUH D 6LJQLILFDQW *HQGHU 'LIIHUHQFH LQ )RUPLQJ 6XSSRUWLYH 3ROLF\ &RDOLWLRQV" $UH )HPDOH /HJLVODWRUV 0RUH 6XFFHVVIXO 6SRQVRUV RI :RPHQnV 3ROLF\ %LOOV" *HQGHU 'LIIHUHQFHV LQ (IIHFWLYH 6SRQVRUVKLS RI /HJLVODWLRQ LQ *HQGHU1HXWUDO 3ROLF\ $UHDV 7KH 3HUFHLYHG (IIHFWLYHQHVV RI :RPHQnV /HJLVODWLYH &DXFXVHV DQG 6XSSRUW IRU WKH )HPLQLVW 3ROLF\ $JHQGD 3DUWLFLSDWLRQ LQ :RPHQnV /HJLVODWLYH &DXFXVHV 3DUWLFLSDWLRQ LQ $IULFDQ$PHULFDQ &DXFXVHV 3DUWLFLSDWLRQ LQ &RQVHUYDWLYH &DXFXVHV 3DUWLFLSDWLRQ LQ +LVSDQLF &DXFXVHV &21&/86,216 $1' ,03/,&$7,216 5HSUHVHQWLQJ WKH :RPHQnV 3ROLF\ $JHQGD 5HYLVLRQLQJ 0LQRULW\ 6WDWXV 3DUWLFLSDWLRQ 7KHRU\ ([SDQGLQJ :RPHQnV &XOWXUH 7KHRU\ WR ,QFOXGH 6XSSRUWLYH 0DOH /HJLVODWRUV 5HSUHVHQWDWLRQ LQ *HQGHU1HXWUDO 3ROLF\ $UHDV )XWXUH 5HVHDUFK $JHQGD $33(1',&(6 $ :20(1 67$7( /(*,6/$7256 67$7,67,&6 % :20(1 ,1 67$7( /(*,6/$785(6 & 6859(< ,167580(176 $1' &29(5 /(77(56 &5($7(' 9$5,$%/( ,1',&(6 $1' 6&$/(6 ( 5(6($5&+ 352&('85(6 ) /(*,6/$725 6$03/( ,1 7+,6 5(6($5&+ %< 67$7( $1' *(1'(5 [[

PAGE 21

SDJH 35(6859(< %52&+85( + 81,9(56,7< 2) )/25,'$ ,167,787,21$/ 5(9,(: %2$5' $33529$/6 5()(5(1&( /,67 %,2*5$3+,&$/ 6.(7&+ [[L

PAGE 22

/,67 2) 7$%/(6 7DEOH SDJH )HPDOH /HJLVODWRUV LQ 6DPSOH 0DOH /HJLVODWRUV LQ 6DPSOH /HJLVODWRU 6DPSOH 'HPRJUDSKLFV 6XSSRUW IRU :RPHQnV 3ROLFLHV LQ /HJLVODWLRQ 3HUFHLYHG 6XSSRUW IRU :RPHQnV 3ROLF\ $JHQGD )UHTXHQF\ RI &RDOLWLRQ %XLOGLQJ 6XFFHVV LQ 3DVVLQJ *HQGHU1HXWUDO %LOOV 7KURXJK WKH /HJLVODWXUH 7KH 3HUFHLYHG (IIHFWLYHQHVV RI :RPHQnV /HJLVODWLYH 3ROLWLFDO &DXFXVHV 0RVW )UHTXHQW 3ROLF\ ,VVXHV 3URSRVHG E\ :RPHQnV /HJLVODWLYH &DXFXVHV 'XULQJ 3HUVRQDO 3HUFHLYHG 6XSSRUW IRU )HPLQLVW 3ROLFLHV 6SRQVRULQJ )HPLQLVW /HJLVODWLRQ [[LL

PAGE 23

/,67 2) ),*85(6 )LJXUH SDJH 5HVHDUFK +\SRWKHVHV 5HVHDUFK 9DULDEOHV DQG 'HVLJQ [[LLL

PAGE 24

$EVWUDFW RI 'LVVHUWDWLRQ 3UHVHQWHG WR WKH *UDGXDWH 6FKRRO RI WKH 8QLYHUVLW\ RI )ORULGD LQ 3DUWLDO )XOILOOPHQW RI WKH 5HTXLUHPHQWV IRU WKH 'HJUHH RI 'RFWRU RI 3KLORVRSK\ 7+( ,03$&76 2) ,1&5($6(' )(0$/( 5(35(6(17$7,21 ,1 86 67$7( /(*,6/$785(6 %\ (OL]DEHWK *UDFH :LOOLDPV $XJXVW &KDLUSHUVRQ 'U -DPHV : %XWWRQ 0DMRU 'HSDUWPHQW 3ROLWLFDO 6FLHQFH 6LQFH WKH PLG V VWDWH OHJLVODWXUHV ZKLFK ZHUH KLVWRULFDOO\ ZHDN LQVWLWXWLRQV ODFNLQJ LQGHSHQGHQW SROLF\n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f VWDWH OHJLVODWRUV 8QOLNH PRVW SUHYLRXV UHVHDUFK RQ OHJLVODWLYH ZRPHQ WKLV VDPSOH LV PXFK PRUH [[LY

PAGE 25

ELSDUWLVDQ DQG KLJKO\ UHSUHVHQWDWLYH RI WKH IHPDOH OHJLVODWRU SRSXODWLRQ VLQFH DQG SURYLGHV D QHZ RSSRUWXQLW\ WR PRUH FOHDUO\ YLHZ WKH LQWHUDFWLRQV RI SDUWLVDQVKLS LGHRORJ\ DQG JHQGHU RQ SROLF\ UHSUHVHQWDWLRQ 7KLV UHVHDUFK H[DPLQHV ZKHWKHU LQFUHDVHG QXPEHUV RI IHPDOH OHJLVODWRUV SURYLGH VXEVWDQWLYH SROLF\ UHSUHVHQWDWLRQ WKDW GLIIHUV IURP WKHLU PDOH FRXQWHUSDUWV RQ GLVWLQFWLYHO\ JHQGHUHG WUDGLWLRQDO ZRPHQnV SROLF\ LVVXHV DQG LQ JHQGHU QHXWUDO SROLF\ DUHDV ,W H[DPLQHV WKH HIIHFWLYHQHVV RI ZRPHQnV OHJLVODWLYH FDXFXVHV DQG PHPEHUVKLS LQ $IULFDQ $PHULFDQ FRQVHUYDWLYH DQG +LVSDQLF FDXFXVHV ,W DOVR H[DPLQHV SROLF\ FRDOLWLRQ EXLOGLQJ LQ RUGHU WR SDVV WKHLU SULRULW\ OHJLVODWLYH E\ PHPEHUV RI WKHVH FDXFXVHV 5HVXOWV LQGLFDWH IHPDOH OHJLVODWRUV SURYLGH PRUH HIIHFWLYH VXEVWDQWLYH SROLF\ UHSUHVHQWDWLRQ LQ ZRPHQnV SROLF\ LVVXHV DQG HTXDOO\ HIIHFWLYH UHSUHVHQWDWLRQ LQ JHQGHUQHXWUDO SROLF\ DUHDV )HPDOH OHJLVODWRUV UHJDUGOHVV RI SDUW\ DIILOLDWLRQ DUH VLJQLILFDQWO\ PRUH OLNHO\ WR SHUVRQDOO\ VXSSRUW ZRPHQnV SROLFLHV DQG WR VXFFHVVIXOO\ VSRQVRU DQG SDVV PRUH ZRPHQnV ELOOV 1R VLJQLILFDQW JHQGHU GLIIHUHQFH ZDV IRXQG LQ OHJLVODWRUVn DELOLW\ WR JHW WKHLU JHQGHUQHXWUDO SULRULW\ ELOOV SDVVHG /LQNDJHV ZLWK ZRPHQnV RUJDQL]DWLRQV SDUWLFLSDWLRQ LQ D ZRPHQnV FDXFXV VXSSRUW IRU LQFUHDVHG VSHQGLQJ LQ ZRPHQnV SROLF\ DUHDV DQG D OHJLVODWRUnV LGHRORJ\ EHWWHU H[SODLQ VXSSRUW IRU ZRPHQnV SROLF\ WKDQ GRHV WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV [[Y

PAGE 26

&+$37(5 ,1752'8&7,21 7KLV VWXG\ H[DPLQHV ZKHWKHU WKH LQFUHDVHG SHUFHQWDJH RI IHPDOH 86 VWDWH OHJLVODWRUV LQ SURYLGHG VXEVWDQWLYH SROLF\ UHSUHVHQWDWLRQ GLIIHUHQW IURP WKHLU PDOH FROOHDJXHV LQ SROLF\ DUHDV WUDGLWLRQDOO\ LGHQWLILHG ZLWK IHPDOH GRPHVWLF UHVSRQVLELOLWLHV RU LQ JHQGHUQHXWUDO SROLF\ DUHDV ,W IRFXVHV RQ JHQGHU GLIIHUHQFHV LQ OHJLVODWLYH SULRULWLHV QRW RQO\ RQ ZRPHQnV FXOWXUH LVVXHV EXW DFURVV WKH VSHFWUXP RI SROLF\ SULRULWLHV OLVWHG E\ VWDWH OHJLVODWRUV VHUYLQJ LQ ,W H[DPLQHV JHQGHU GLIIHUHQFHV LQ WKH VWUHQJWK RI OLQNDJHV EHWZHHQ OHJLVODWRUV DQG GLIIHUHQW RUJDQL]DWLRQV ZLWK WKHLU OHYHOV RI VXSSRUW LQ WKH OHJLVODWRUnV PRVW UHFHQW HOHFWRUDO FDPSDLJQ )LQDOO\ WKLV ZRUN H[DPLQHV WKH VLJQLILFDQW SRVLWLYH UROHV RI ZRPHQnV OHJLVODWLYH FDXFXVHV OLQNDJHV WR ZRPHQnV IRUPDO JURXSV RXWVLGH WKH OHJLVODWXUH DQG VXSSRUW IRU VSHQGLQJ RQ ZRPHQnV SROLF\ LVVXHV WKDW KHOS H[SODLQ VXSSRUW DPRQJ OHJLVODWRUV IRU ZRPHQnV SROLFLHV UHJDUGOHVV RI WKHLU JHQGHU RU SROLWLFDO SDUW\ 2I UHFHQW OHJLVODWLYH JHQGHU VWXGLHV UHYLHZHG LQ FKDSWHU WZR WKRVH PRVW FORVHO\ UHODWHG WR WKLV FXUUHQW UHVHDUFK DUH &DUUROO f .DWKOHQH

PAGE 27

f 0H]H\ Ef 5HLQJROG Df DQG 7KRPDV f 7KHRUHWLFDO )RXQGDWLRQV 7KH WKHRUHWLFDO IRXQGDWLRQV RI WKLV UHVHDUFK DUH EXLOW RQ VXEVWDQWLYH UHSUHVHQWDWLRQ WKHRU\ 3LWNLQ f FROOHFWLYH SROLF\ UHSUHVHQWDWLRQ :HLVVEHUJ f DQG PLQRULW\ JURXS WKHRU\ .DQWHU f EOHQGHG ZLWK WKLUG JHQHUDWLRQ IHPLQLVW SROLWLFDO WKHRU\ RI VRFLDO JURXS GLIIHUHQFH
PAGE 28

UHSUHVHQWDWLRQ IRU ZRPHQnV FROOHFWLYH LQWHUHVWV %\ WKH ODWH V WKH PRVWO\ OLEHUDO 'HPRFUDWLF IHPDOH OHJLVODWRU SRSXODWLRQ EHJDQ WR SURYLGH VXEVWDQWLYH UHSUHVHQWDWLRQ RQ LVVXHV RI WUDGLWLRQDO FRQFHUQ WR ZRPHQ VXFK DV FKLOGUHQ \RXWK IDPLOLHV HGXFDWLRQ DQG KHDOWK FDUH WKDW ZHUH EDVHG RQ WKHLU GRPHVWLF UROHV 5HFHQW UHVHDUFK RQ IHPDOH VWDWH OHJLVODWRUV RU JHQGHU GLIIHUHQFH LQ OHJLVODWLYH SROLF\ SULRULWLHV FORVHO\ UHODWHG WR WKLV FXUUHQW UHVHDUFK LQFOXGH &DUUROO f 'RODQ DQG )RUG f 5HLQJROG Df DQG 7KRPDV f 5HVHDUFK 3UREOHP 7KH SXUSRVH RI WKLV UHVHDUFK LV WR H[DPLQH ZKHWKHU LQFUHDVHG GHVFULSWLYH IHPDOH UHSUHVHQWDWLRQ WKDW LV WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV LQ D VWDWH LQ 86 VWDWH OHJLVODWXUHV KDV UHVXOWHG LQ VXEVWDQWLYH UHSUHVHQWDWLRQ IRU ZRPHQ WKDW GLIIHUV IURP WKDW SURYLGHG E\ WKHLU PDOH FRXQWHUSDUWV RQ GLVWLQFWLYHO\ JHQGHUHGSROLF\ LVVXHV RU LQ WKH ZLGH VSHFWUXP RI JHQGHUQHXWUDO SROLF\ DUHDV 0DQ\ JHQGHUHG LVVXHV DUH FODVVLILHG DV EHLQJ HLWKHU FRPSRQHQWV RI D ZRPHQnV SROLF\ DJHQGD RU D IHPLQLVW SROLF\ DJHQGD :RPHQnV SROLF\ DJHQGD LVVXHV SULPDU\ FRQFHUQ FKLOGUHQ IDPLO\ SXEOLF HGXFDWLRQ DQG HOGHU FDUH ,VVXHV DUH 6SHFLILF SROLF\ DUHDV LQFOXGH FKLOG DEXVH FKLOGUHQ DQG \RXWK FKLOG VXSSRUW FXOWXUDO DIIDLUV SXEOLF NLQGHUJDUWHQ WKURXJK KLJK VFKRRO HGXFDWLRQ VHUYLFHV IRU WKH HOGHUO\ DQG DJLQJ KXPDQ VHUYLFHV MXYHQLOH FULPH DQG MXYHQLOH FULPH SUHYHQWLRQ DQG SUROLIH LVVXHV

PAGE 29

FRQVLGHUHG IHPLQLVW LI WKH\ VHHN WR LQFUHDVH WKH HFRQRPLF HGXFDWLRQ KHDOWK OHJDO VDIHW\ RU VRFLDO VWDWXV RI IHPDOHV 7KLV UHVHDUFK DOVR H[DPLQHV ZKHWKHU WKHUH DUH VLJQLILFDQW JHQGHU GLIIHUHQFHV LQ OHJLVODWRUVn SROLF\ SULRULWLHV DQG LQ EXLOGLQJ VXSSRUWLYH FRDOLWLRQV WR SDVV WKHLU SULRULW\ OHJLVODWLRQ )DFWRUV K\SRWKHVL]HG WR EH VLJQLILFDQW LQ WKH HPHUJHQFH RI D GLVWLQFWLYH JHQGHUUHODWHG ZRPHQnV SROLF\ DQG IHPLQLVW SROLF\ DJHQGD LQFOXGH WKH SUHVHQFH RI DQG VWUHQJWK RI DQ RUJDQL]HG ZRPHQnV OHJLVODWLYH SROLWLFDO FDXFXV LQFUHDVHG OLQNDJHV EHWZHHQ OHJLVODWRUV DQG IRUPDO ZRPHQnV SROLWLFDO JURXSV RXWVLGH WKH OHJLVODWXUH DQG WKH IUHTXHQF\ RI IRUPLQJ VXSSRUWLYH SROLF\ FRDOLWLRQV ZLWK RWKHU ZRPHQ VXSSRUWLYH PDOH FROOHDJXHV HWKQLF PLQRULWLHV DQG ELSDUWLVDQ IHPDOH SROLF\ FRDOLWLRQV WR SDVV JHQGHUHG SROLF\ OHJLVODWLRQ +\SRWKHVHV 7KH VL[ UHVHDUFK K\SRWKHVHV DUH OLVWHG EHORZ $V WKH SHUFHQWDJH RI IHPDOH VWDWH OHJLVODWRUV LQ D VWDWH LQFUHDVH ZRPHQ SURYLGH LQFUHDVLQJO\ VXEVWDQWLYH JHQGHUUHODWHG UHSUHVHQWDWLRQ IRU ZRPHQnV WUDGLWLRQDO SROLF\ FRQFHUQV WKDW GLIIHUV IURP UHSUHVHQWDWLRQ E\ PDOH VWDWH OHJLVODWRUV + 7KHUH LV D SRVLWLYH UHODWLRQVKLS EHWZHHQ WKH SHUFHSWLRQ RI D GLVWLQFWLYH ZRPHQnV SROLF\ DJHQGD DQG DFWXDO OHJLVODWLYH EHKDYLRU RI IHPDOH OHJLVODWRUV RQ EHKDOI RI ZRPHQnV SROLF\ FRQFHUQV WKURXJK WKH VSRQVRUVKLS RI ELOOV LQ WKHVH SROLF\ DUHDV

PAGE 30

+ )HPDOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ WKHLU PDOH FRXQWHUSDUWV WR ZRUN LQ SROLF\ FRDOLWLRQV ZLWK RWKHU JURXSV LQ RUGHU WR JHW WKHLU SULRULW\ ELOOV SDVVHG + )HPDOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH HIIHFWLYH VSRQVRUV RI ZRPHQnV WUDGLWLRQDO SROLF\ ELOOV WKDQ WKHLU PDOH FROOHDJXHV +V )HPDOH OHJLVODWRUV ZLOO EH DV HIIHFWLYH DV WKHLU PDOH FRXQWHUSDUWV LQ VXFFHVVIXOO\ VSRQVRULQJ WKHLU SULRULW\ ELOOV LQ JHQGHUQHXWUDO SROLF\ DUHDV + %HLQJ D PHPEHU RI DQ HIIHFWLYH ZRPHQnV OHJLVODWLYH FDXFXV LV SRVLWLYHO\ UHODWHG WR PHPEHUVn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

PAGE 31

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n GDLO\ OLYHV

PAGE 32

&+$37(5 5(9,(: 2) 67$7( /(*,6/$7,9( 5(6($5&+ /,7(5$785( 7KH ,QFUHDVHG ,PSRUWDQFH RI 6WDWH /HJLVODWXUHV DV 3ROLF\0DNLQJ ,QVWLWXWLRQV 8QWLO WKH PLG V PRVW 86 VWDWHV KDG DPDWHXU RU FLWL]HQ OHJLVODWXUHV FRPSRVHG RI ZHDOWK\ &DXFDVLDQ PDOHV SDUWWLPH OHJLVODWRUV ZKR KDG RWKHU RFFXSDWLRQV DV WKHLU SULPDU\ VRXUFH RI LQFRPH 0RVW OHJLVODWRUV VHUYHG RQO\ D VLQJOH WHUP LQ RIILFH ,Q WKH PHDQ WXUQRYHU HDFK OHJLVODWLYH HOHFWLRQ F\FOH ZDV SHUFHQW LQ VWDWH KRXVHV HYHU\ WZR \HDUVf DQG SHUFHQW LQ VWDWH VHQDWHV 1LHPL DQG :LQVN\ f 1RW XQWLO PLGFHQWXU\ GLG VWDWH OHJLVODWXUHV KDYH D PDMRULW\ RI LQFXPEHQWV RU H[SHULHQFHG OHJLVODWRUV UHWXUQ IRU VHFRQG WHUPV LQ RIILFH $V ODWH DV WKH V DOO EXW IRXU VWDWH OHJLVODWXUHV PHW LQ EULHI ELDQQXDO OHJLVODWLYH VHVVLRQV %\ RQO\ VWDWH OHJLVODWXUHV PHW DQQXDOO\ /HJLVODWXUHV ZHUH JHQHUDOO\ ZHDN DQG LQVWLWXWLRQDOO\ GRPLQDWHG E\ WKH VWURQJHU SROLWLFDO LQIOXHQFH RI JRYHUQRUV AQWLO RQO\ IRXU VWDWH OHJLVODWXUHV 1HZ
PAGE 33

UHVWULFWHG E\ VWDWH FRQVWLWXWLRQV DQG YHU\ PDODSSRUWLRQHG 7KHVH PRULEXQG LQVWLWXWLRQV 0RQFULHI DQG 7KRPSVRQ f KDG GHVWDELOL]LQJ KLJK PHPEHUVKLS WXUQRYHU UDWHV ORZ PHPEHU SD\ LQDGHTXDWH IDFLOLWLHV QR VWDII RU PHPEHU RIILFHV DQG ODFNHG DQ\ VWDEOH SROLWLFDO RSSRUWXQLW\ VWUXFWXUH 6TXLUH f RU LQGHSHQGHQW LQVWLWXWLRQDO SROLF\PDNLQJ DELOLW\ 6LQFH IRXU PDMRU IDFWRUV KDYH FRPELQHG WR WUDQVIRUP WKH PDMRULW\ RI 86 VWDWH OHJLVODWXUHV RI WKH V LQWR PRUH DXWRQRPRXV PRUH HTXLWDEO\ UHSUHVHQWDWLYH PRUH DFWLYH LQ DQG LQQRYDWLYH SROLF\PDNLQJ RUJDQL]DWLRQV 7KHVH IDFWRUV LQFOXGH f 86 6XSUHPH &RXUW RUGHUHG UHDSSRUWLRQPHQW RI VWDWH OHJLVODWXUHV f WKH LQVWLWXWLRQDOL]DWLRQ RI VWDWH OHJLVODWXUHV f WKH LQFUHDVHG SURIHVVLRQDOL]DWLRQ RI VWDWH OHJLVODWRUV DQG f WKH GHYROXWLRQ WR VWDWH OHJLVODWXUHV RI D ZLGH VFRSH RI IRUPHUO\ IHGHUDO SROLF\ PDNLQJ DQG SROLF\ LPSOHPHQWDWLRQ UHVSRQVLELOLWLHV &RXUW2UGHUHG 5HDSSRUWLRQPHQW 0DNH 6WDWH /HJLVODWXUHV 0RUH 5HSUHVHQWDWLYH RI LWV &LWL]HQV ,Q SDUW LQFUHDVHG RSSRUWXQLWLHV IRU ZRPHQ DV ZHOO DV UDFLDO HWKQLF DQG SDUWLVDQ PLQRULWLHV WR EH HOHFWHG WR DQG UHSUHVHQWHG LQ VWDWH OHJLVODWXUHV KDYH WKHLU URRWV LQ 86 6XSUHPH FRXUW RUGHUHG UHDSSRUWLRQPHQW UXOLQJV %DNHU Y &DUU 5H\QROGV Y 6LPV f DQG VXEVHTXHQW VWDWH %DNHU Y &DUU 86 6 &RXUW f

PAGE 34

FRQVWLWXWLRQDO UHYLVLRQV GXULQJ WKH V 0RVW VWDWH OHJLVODWXUHV KDYH EHHQ UHIRUPHG DQG PRGHUQL]HG DV WKH\ KDYH EHHQ OHJDOO\ UHTXLUHG WR EHFRPH PRUH UHSUHVHQWDWLYH RI DOO WKHLU FLWL]HQV ,Q WKH V SULRU WR %DNHU Y &DUU PDQ\ VWDWH OHJLVODWXUHV ZHUH JURVVO\ PDODSSRUWLRQHG VR WKDW D YHU\ VPDOO SHUFHQWDJH RI YRWHUV XVXDOO\ UXUDO DJULFXOWXUDO HFRQRPLF LQWHUHVWVf ZHUH DEOH WR HOHFW WKH PDMRULW\ RI VWDWH OHJLVODWRUV )HZHU WKDQ RQHWKLUG RI WKH YRWHUV FRXOG HOHFW D PDMRULW\ RI VWDWH UHSUHVHQWDWLYHV LQ VL[ VWDWHV $/ &7 )/ 0' 06 1
PAGE 35

8SRQ UHWLULQJ IRUPHU &KLHI -XVWLFH (DUO :DUUHQ FLWHG 5H\QROGV Y 6LPV DV WKH PRVW LPSRUWDQW FDVH RI KLV FDUHHU ,W HPERGLHG WKH SULQFLSOH RI HTXDO UHSUHVHQWDWLRQ LQ LWV RQH PDQ SHUVRQf RQH YRWH FULWHULRQ ,WV VWDWHG JRDO ZDV DFKLHYLQJ IDLU DQG HIIHFWLYH UHSUHVHQWDWLRQ :KDWHYHU WKH PHDQV RI DFFRPSOLVKPHQW WKH RYHUULGLQJ REMHFWLYH PXVW EH VXEVWDQWLDO HTXDOLW\ RI SRSXODWLRQ DPRQJ WKH YDULRXV GLVWULFWV VR WKDW WKH YRWH RI DQ\ FLWL]HQ LV DSSUR[LPDWHO\ HTXDO LQ ZHLJKW WR WKDW RI DQ\ RWKHU FLWL]HQ LQ WKH 6WDWH 5H\QROGV SS 6f 7KLV FDVH KDV RSHQHG WKH GRRU IRU OLWLJDWLRQ RQ PLQRULW\ YRWLQJ LVVXHV UDFLDO DQG SDUWLVDQf JHUU\PDQGHULQJ DQG WKH FRQVWLWXWLRQDOLW\ RI PLQRULW\ LQIOXHQFH DQG PLQRULW\ DFFHVV GLVWULFWV ZKLFK FRQWLQXH WR FDXVH FRQWURYHUV\ DPRQJ YRWHUV SROLWLFDO VFLHQWLVWV DQG RQ WKH 6XSUHPH &RXUW 7KH ,QVWLWXWLRQDOL]DWLRQ RI 6WDWH /HJLVODWXUHV ,Q 3ROVE\nV f ODQGPDUN ORQJLWXGLQDO FDVH VWXG\ RI OHJLVODWLYH LQVWLWXWLRQDOL]DWLRQ LQ WKH 86 +RXVH RI 5HSUHVHQWDWLYHV KH SURSRVHV WKUHH PDMRU LQGLFDWRUV RI KLJKO\ VSHFLDOL]HG RU LQVWLWXWLRQDOL]HG OHJLVODWLYH ERGLHV 7KH ILUVW PHDVXUH LV WKH HVWDEOLVKPHQW RI FOHDU ZHOO GLIIHUHQWLDWHG ERXQGDULHV EHWZHHQ WKH RUJDQL]DWLRQnV PHPEHUV 6HH 7KH 8QILQLVKHG 5HDSSRUWLRQPHQW 5HYROXWLRQ *RUGRQ ( %DNHUf &KDSWHU 7ZR SDJH LQ 3ROLWLFDO *HUU\PDQGHULQJ DQG WKH &RXUWV *URIPDQ f ,ELG SDJH

PAGE 36

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f SROLWLFDO LQVWLWXWLRQ (YLGHQFH RI WKLV LQFOXGHV WKH +RXVHnV PHPEHU DQG OHDGHUVKLS FDUHHU RSSRUWXQLW\ VWUXFWXUH WKH GHYHORSPHQW RI D FRPSOH[ VWDQGLQJ FRPPLWWHH DQG QRZ DOVR VXEFRPPLWWHHf VWUXFWXUH DQG LWV DXWRPDWLF GHFLVLRQ PDNLQJ DQG FRPPLWWHH DSSRLQWPHQW V\VWHPV EDVHG SULPDULO\ RQ PHPEHU VHQLRULW\ ,Q D FDVH VWXG\ DSSOLFDWLRQ RI 3ROVE\nV WKHRU\ WR WKH &DOLIRUQLD VWDWH $VVHPEO\ VWDWH KRXVHf 6TXLUH Ef FKDOOHQJHV DQG FULWLTXHV WKH VHQLRULW\ FULWHULRQ )ROORZLQJ OHJLVODWLYH UHIRUPV LQ WKH PHPEHU &DOLIRUQLD $VVHPEO\ ZDV RQH RI WKH PRVW LQVWLWXWLRQDOL]HG VLPLODU WR WKH 86 +RXVHf VWDWH OHJLVODWXUHV IURP WKH V WR WKH V XQWLO WKH LPSOHPHQWDWLRQ RI LWV WKUHHWHUP WHUP OLPLW ODZ 8QOLNH WKH 86 +RXVH RI WKH VWDWH OHJLVODWLYH FKDPEHUV GR QRW XVH D VHQLRULW\ V\VWHP WR GHWHUPLQH

PAGE 37

FRPPLWWHH DSSRLQWPHQWV 'HFLVLRQPDNLQJ DQG DSSRLQWPHQWV DUH LQVWHDG PRVW VWURQJO\ LQIOXHQFHG E\ SDUWLVDQ OR\DOWLHV 7R PDNH LQVWLWXWLRQDOL]DWLRQ WKHRU\ DSSOLFDEOH WR VWDWH OHJLVODWXUHV 6TXLUH FRQYLQFLQJO\ DUJXHV WKH VHQLRULW\ LQGLFDWRU VKRXOG EH UHSODFHG ZLWK D PHDVXUH RI GHFHQWUDOL]HG GHFLVLRQ PDNLQJ ,QVWLWXWLRQDOL]DWLRQ RI VWDWH OHJLVODWXUHV KDV UHVXOWHG LQ DQQXDO DQG RIWHQ ORQJHU OHJLVODWLYH VHVVLRQV RI WKH ILIW\ VWDWHV QRZ FRQYHQH D UHJXODU QRQVSHFLDOf VHVVLRQ HDFK \HDU %XW WKHUH UHPDLQV D ZLGH GLYHUVLW\ DPRQJ WKH QLQHW\QLQH VWDWH OHJLVODWLYH FKDPEHUV LQ WKH GHJUHH RI LQVWLWXWLRQDOL]DWLRQ 6WUXFWXUDO DQG FRQVWLWXWLRQDO FKDQJHV KDYH VWUHQJWKHQHG OHJLVODWLYH SROLF\ PDNLQJ DXWKRULW\ FRPSDUHG WR WKH H[HFXWLYH EUDQFKf DQG JLYHQ OHJLVODWXUHV WKH DELOLW\ WR FDOO WKHPVHOYHV LQWR VSHFLDO VHVVLRQ ZLWKRXW JXEHUQDWRULDO DFWLRQ :LOOLDP 3RXQG ([HFXWLYH 'LUHFWRU RI WKH 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV DUJXHV UHIRUPV KDYH PDGH VWDWH OHJLVODWXUHV PRUH LQGHSHQGHQW DQDO\WLFDO DQG FDSDEOH RI SROLF\ GHYHORSPHQW 0RQFULHI DQG 7KRPSVRQ f /HJLVODWRU VDODULHV KDYH LQFUHDVHG EXW SD\ YDULHV ZLGHO\ DPRQJ VWDWHV 5KRGH ,VODQG OHJLVODWRUV DUH SDLG ILYH GROODUV SHU GD\ LQ $ODEDPD OHJLVODWRUV DUH SDLG WHQ GROODUV SHU GD\ GXULQJ WKH VHVVLRQ DQG PHPEHUV RI 1HZ +DPSVKLUHnV $ VWDWHV EXW .HQWXFN\ PHW GXULQJ VL[ RWKHU VWDWHV $UNDQVDV 0RQWDQD 1HYDGD 1RUWK 'DNRWD 2UHJRQ DQG 7H[DV KDG QR UHJXODU VFKHGXOHG VHVVLRQ LQ

PAGE 38

PHPEHU *HQHUDO &RXUW VWDWH KRXVHf PDNH SHU ELHQQLXP 6L[ IXOOWLPH QHDU \HDUURXQG OHJLVODWLYH FKDPEHUV SD\ SURIHVVLRQDO VDODULHV UDQJLQJ IURP WR QHDUO\ ,OOLQRLV 0DVVDFKXVHWWV 0LFKLJDQ 1HZ
PAGE 39

OHJLVODWXUHV 7KH UHPDLQLQJ KDOI KDYH K\EULG OHJLVODWXUHV KDYLQJ VRPH FKDUDFWHULVWLFV RI HDFK ZLWK D PLGGOH OHYHO RI LQVWLWXWLRQDOL]DWLRQ 7KH 3RWHQWLDO 'HVWDELOL]LQJ &RQVHTXHQFHV RI 7HUP/LPLWV ,W LV XQFOHDU KRZ WKH IXOO LPSOHPHQWDWLRQ RI WHUP OLPLW ODZV LQ WZHQW\RQH VWDWHV PD\ DIIHFW LQVWLWXWLRQDO VWDELOLW\ DQG PHPEHU SURIHVVLRQDOLVP LQ WKHLU OHJLVODWXUHV $V RI 0D\ RQO\ 0DLQH DQG &DOLIRUQLD KDYH PHW WKHLU PD[LPXP WHUP OLPLW SHUPLWWHG E\ ODZ %XW SHUFHQW RU f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f A%HWZHHQ DQG WKH IROORZLQJ WZHQW\RQH VWDWHV HQDFWHG WHUP OLPLW ODZV IRU WKHLU VWDWH OHJLVODWRUV $UL]RQD f $UNDQVDV f &DOLIRUQLD f &RORUDGR f )ORULGD f ,GDKR f /RXLVLDQD f 0DLQH f 0DVVDFKXVHWWV f 0LFKLJDQ f 0LVVRXUL f 0RQWDQD f 1HEUDVND f 1HYDGD f 2KLR f 2NODKRPD f 2UHJRQ f 6RXWK 'DNRWD f 8WDK f :DVKLQJWRQ f DQG :\RPLQJ f 6RXUFH 7KH 6WDWH RI WKH 6WDWHV UG HG $ODQ 5RVHQWKDO 7DEOH S 7LFNLQJ 7HUP /LPLWV 3DUW 6WDWH /HJLVODWXUHV -XQH

PAGE 40

5RVHQWKDO UHSOLFDWHG 6TXLUHnV HDUOLHU FDVH VWXG\ RI WKH &DOLIRUQLD 6WDWH $VVHPEO\ +RXVHf DQG IRXQG WHUPOLPLWV KDG D GHLQVWLWXWLRQDOL]LQJ LPSDFW f +H UHSRUWV LQFUHDVHG OHJLVODWRU WXUQRYHU UDWHV GHFUHDVHG OHJLVODWRU H[SHUWLVH DQG LQH[SHULHQFHG RIWHQ ZHDNHU OHJLVODWLYH FKDPEHU OHDGHUVKLS +H IRXQG D GHFUHDVH LQ WKH QRUPV RI DSSUHQWLFHVKLS FROOHJLDOLW\ DQG LQVWLWXWLRQDO OR\DOW\ DPRQJ OHJLVODWRUV )XUWKHU FRPSOLFDWLQJ &DOLIRUQLDnV VLWXDWLRQ LV WKH $SULO )HGHUDO 'LVWULFW &RXUW GHFLVLRQ WKDW &DOLIRUQLDnV WHUP OLPLWV ODZ 3URSRVLWLRQ LV XQFRQVWLWXWLRQDO -XGJH &ODXGLD :LONHQ UXOHG &DOLIRUQLDnV OLIHWLPH EDQ RI VL[ WR HLJKW \HDUV WRWDO OHJLVODWLYH VHUYLFH YLRODWHG FLWL]HQnV ILUVW DQG IRXUWHHQWK DPHQGPHQW ULJKWV ,Q KHU GHFLVLRQ VKH ZURWH &DOLIRUQLDnV H[WUHPH YHUVLRQ RI WHUP OLPLWV LPSRVHV D VHYHUH EXUGHQ RQ WKH ULJKW RI LWV FLWL]HQV WR YRWH IRU FDQGLGDWHV RI WKHLU FKRLFH EHFDXVH LW LV QRW QDUURZO\ WDLORUHG WR DGYDQFH FRPSHOOLQJ VWDWH LQWHUHVWV -XGJH :LONHQ WKHQ VXVSHQGHG LPSOHPHQWDWLRQ RI WKH UXOLQJ SHQGLQJ DSSHDO XQWLO DIWHU WKH &DOLIRUQLD OHJLVODWLYH HOHFWLRQV 7HUPOLPLWV DUH OLNHO\ WR PRVW VHYHUHO\ LPSDFW WKH PRUH SURIHVVLRQDO VWDWH OHJLVODWXUHV 0XFK FXUUHQW OHJLVODWLYH DQG SROLF\ H[SHUWLVH PD\ VKLIW DZD\ IURP HOHFWHG RIILFLDOV f&DOLIRUQLD 7HUP /LPLWV 'HFODUHG 8QFRQVWLWXWLRQDO 6WDWH /HJLVODWXUHV -XQH S

PAGE 41

WR XQHOHFWHG VWDII DJHQF\ PDQDJHUV DQG OREE\LVWV 5RVHQWKDO LV SHVVLPLVWLF DERXW WKH ORQJWHUP LPSDFW RI WHUP OLPLW ODZV +H SUHGLFWV OHJLVODWXUHV ZLOO EHFRPH OHVV GHOLEHUDWLYH ERGLHV DQG LQ DOO OLNHOLKRRG WKH IDEULF RI WKH OHJLVODWLYH LQVWLWXWLRQ ZLOO FRQWLQXH WR XQUDYHO f )UDQFLV DQG .HQQ\ f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f LQGLFDWH QDWXUDO WKDW LV QRW OHJDOO\ UHTXLUHGf WXUQRYHU LQ VWDWH

PAGE 42

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n OHJLVODWLYH H[SHUWLVH RU SURIHVVLRQDOLVP DQG WKH EXLOGLQJ RI LQVWLWXWLRQDO VWDELOLW\ WKURXJK PHPEHU SD\ DQG DGYDQFHPHQW SURVSHFWV 6TXLUH f 'UDZLQJ IURP 6FKOHVLQJHUnV f LQGLYLGXDO SROLWLFDO DPELWLRQ WKHRU\ 6TXLUH FODVVLILHV WKH SURIHVVLRQDOLVP RI OHJLVODWLYH FKDPEHUV E\ WKHLU SROLWLFDO RSSRUWXQLW\ VWUXFWXUH +H PHDVXUHV LW E\ PHPEHUVKLS VWDELOLW\ DQG WXUQRYHU UDWHV FRPSDUHG ZLWK WKH DYDLODELOLW\ RI SRWHQWLDO OHJLVODWLYH VHDWV LQ KLJKHU HOHFWLYH RIILFH +H FODVVLILHV FKDPEHUV DV GHDGHQG OHJLVODWXUHV VSULQJERDUG OHJLVODWXUHV RU FDUHHU OHJLVODWXUHV ,ELG S

PAGE 43

'HDGHQG OHJLVODWXUHV DUH PRVW VLPLODU WR WKH FLWL]HQ RU DPDWHXU VWDWH OHJLVODWXUHV RI WKH SDVW 0RVW PHPEHUV KDYH GLVFUHWH SROLWLFDO DPELWLRQ DQG VHUYH SDUWWLPH 7KH\ GR QRW VHHN SROLWLFDO DGYDQFHPHQW RU D FDUHHU LQ WKH OHJLVODWXUH 7XUQRYHU LV KLJK DPRQJ FLWL]HQOHJLVODWRUV ,Q 6TXLUHn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

PAGE 44

WKLV W\SH RI FKDPEHU LV RIWHQ XVHG DV D FDUHHU VSULQJERDUGn IURP D PDQLIHVW RU SHQXOWLPDWH RIILFH WR KLJKHU RIILFH VXFK DV VWDWH VHQDWH RU 86 +RXVH )UDQFLV f 7KHVH OHJLVODWXUHV RIIHU DGHTXDWH WR JRRG SD\ VXSSRUW DQG SHUVRQDO VWDII OHJLVODWLYH UHVRXUFHV LQFOXGLQJ FDSLWRO DQG GLVWULFW RIILFHV DQG KROG ORQJHU VRPHWLPHV QHDU \HDU URXQG DQQXDO VHVVLRQV $ERXW RQHILIWK RI 86 OHJLVODWXUHV PD\ EH VSULQJERDUG FKDPEHUV DOWKRXJK OHDGLQJ VFKRODUV GLIIHU RQ H[DFW QXPEHUV $ IHZ VSULQJERDUG OHJLVODWXUHV DUH DPRQJ WKH PRVW SURIHVVLRQDO LQ WKH 86 VXFK DV &DOLIRUQLDf EXW PDQ\ VXFK DV $ODVND .DQVDV 1HZ -HUVH\ 6RXWK &DUROLQD DQG :DVKLQJWRQf DUH QRW ,W LV WKH SRWHQWLDO RSSRUWXQLW\ IRU SROLWLFDO DGYDQFHPHQW RI PHPEHUV WR KLJKHU RIILFH QRW WKH OHYHO RI SURIHVVLRQDO LQVWLWXWLRQDOL]DWLRQ ZKLFK FKDUDFWHUL]HV D VSULQJERDUG FKDPEHU 7KLV LV WKH EDVLV RI 6TXLUHn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n )HEUXDU\ &DUHHU 2SSRUWXQLWLHV DQG 0HPEHUVKLS 6WDELOLW\ LQ /HJLVODWXUHV /HJLVODWLYH 6WXGLHV 4XDUWHUO\ ;,,, )HEUXDU\

PAGE 45

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nV 1HZ )HGHUDOLVP 7KH SHUFHQWDJH RI IHGHUDO DLG GROODUV WR VWDWHV KDV IDOOHQ E\ RQHWKLUG IURP LWV SHDN LQ DQG WRGD\ DFFRXQWV IRU RQO\ SHUFHQW RI VWDWH UHYHQXH 6LJQLILFDQW DPRQJ 1L[RQnV HIIRUWV WR GHFHQWUDOL]H WKH IHGHUDO JRYHUQPHQW DQG UHWXUQ DXWKRULW\ EDFN WR WKH VWDWHV ZDV *HQHUDO 5HYHQXH 6KDULQJ 6f ,W UHSODFHG PDQ\ KLJKO\ UHVWULFWLYH IHGHUDOO\ DGPLQLVWHUHG FDWHJRULFDO JUDQWVLQDLG JDYH VWDWHV IHGHUDO EORFN JUDQW IXQGV DQG LQFUHDVHG VWDWH DXWKRULW\ DQG GLVFUHWLRQ LQ GRPHVWLF SURJUDP VSHQGLQJ 5HDJDQnV VHYHUH EXGJHW FXWV LQ FRXSOHG ZLWK WKH *UDPP5XGPDQ+ROOLQJV %DODQFHG %XGJHW DQG (PHUJHQF\ 'HILFLW &RQWURO $FW UHVXOWHG LQ GHYROYLQJ IHGHUDO SURJUDP

PAGE 46

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f $V D UHVXOW RI WKH 5HDJDQ%XVK DGPLQLVWUDWLRQVn GXDO OHJDF\ XQGHUIXQGHG IHGHUDO GHYROXWLRQ RI GRPHVWLF SURJUDPV WR VWDWHV DQG DQ LQFUHDVLQJ IHGHUDO EXGJHW GHILFLWf VWDWH OHJLVODWLYH SROLF\ DFWLYLVP DQG LQQRYDWLRQ EHFDPH D &RQODQ 7LPRWK\ )HGHUDOLVP DQG &RPSHWLQJ 9DOXHV LQ WKH 5HDJDQ $GPLQLVWUDWLRQ 3XEOLXV 7KH -RXUQDO RI )HGHUDOLVP Y QR :LQWHU f

PAGE 47

QHFHVVLW\ ,Q UHFHQW UHFHVVLRQV GHPDQGV IRU VWDWH SURYLGHG VHUYLFHV JRRGV DQG SURJUDPV KDYH LQFUHDVHG ZKLOH IRUPHU IHGHUDO GROODUV WR VXSSRUW WKH SURJUDPV GHFOLQHG RU GLVDSSHDUHG ,QFUHDVLQJO\ VWDWH OHJLVODWXUHV KDYH DVVXPHG UHVSRQVLELOLWLHV IRU D ZLGH VFRSH RI GRPHVWLF SROLFLHV DEGLFDWHG E\ IHGHUDO LQVWLWXWLRQV 3HUKDSV WKH PRVW UHFHQW DQG GUDPDWLF H[DPSOH RI WKLV GHYROXWLRQ ZDV &OLQWRQnV UHIRUP RI $LG WR )DPLOLHV ZLWK 'HSHQGHQW &KLOGUHQ $)'&f LQ D ZHOIDUH UHIRUP ELOO VLJQHG $XJXVW $)'& D SLOODU RI )UDQNOLQ 5RRVHYHOWn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

PAGE 48

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nV HGXFDWLRQ OHYHO RU QXPEHU RI SDUHQWV SUHVHQW LQ WKH IDPLO\ 6RXWK 'DNRWD DGRSWHG WKH ORQJHVW EHQHILW SHULRG RI XS WR ILYH \HDUV IRU UHFLSLHQWV DVVLJQHG WR VSHFLILF HGXFDWLRQDO SURJUDPV 7ZHQW\ VWDWHV LQFUHDVHG DQG H[SDQGHG DFFHVV WR DQG IXQGLQJ IRU WUDQVLWLRQDO FKLOG FDUH IRU ZRUNLQJ SRRU SDUHQWV 0RVW RI WKHP GRXEOHG WKH SUHYLRXV IHGHUDO VWDQGDUG RI WZHOYH PRQWKV XQGHU WKH )DPLO\ 6XSSRUW $FW ,Q WZHQW\WZR VWDWHV FRQVLGHUHG

PAGE 49

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f FULPH SDUWLFXODUO\ MXYHQLOH FULPH DQG FULPLQDO MXVWLFH UHIRUP f EXGJHW DQG WD[ UHIRUP SURSHUW\ WD[ FXWVf f HGXFDWLRQ IXQGLQJ DQG VFKRRO VDIHW\ LVVXHV f HFRQRPLF GHYHORSPHQW DQG f KHDOWK KXPDQ VHUYLFHV DQG ZHOIDUH UHIRUP /HJLVODWLYH OHDGHUV LQ VWDWHV UHVSRQGHG WKDW FULPLQDO MXVWLFH V\VWHP LVVXHV MXYHQLOH MXVWLFH DQG WKH GHDWK SHQDOW\ ZHUH WKHLU VWDWHnV KLJKHVW SULRULW\ %DODQFLQJ DSSDUHQWO\ FRQWUDGLFWRU\ FLWL]HQ GHPDQGV IRU LQFUHDVHG HGXFDWLRQ IXQGLQJ ZLWK GHFUHDVHG SURSHUW\ WD[ OHYHOV ZHUH WKH WRS OHJLVODWLYH SULRULW\ LVVXHV LQ DQRWKHU VWDWHV (FRQRPLF GHYHORSPHQW LQFOXGLQJ EXVLQHVV WD[ 6WDWH /HJLVODWLYH 3ULRULWLHV $Q 2SLQLRQ 6XUYH\ RI /HDGLQJ /DZPDNHUV 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV 'HQYHU &2 -DQXDU\ f

PAGE 50

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nV IRUPHU FLW\ PDQDJHU EHLQJ DUUHVWHG IRU JUDIW DQG WKHIW D FLW\ FRPPLVVLRQHU SOHDG JXLOW\ DQG ZDV VHQWHQFHG IRU H[WRUWLRQ RQ FLW\ FRQWUDFWV DQG WKH IRUPHU ILQDQFH GLUHFWRU ZDV FKDUJHG ZLWK H[WRUWLQJ NLFNEDFNV DQG EULEHV RQ FLW\ EXVLQHVV &LWL]HQV ZHUH VR DQJHUHG E\ WKH VLWXDWLRQ WKH\ VXFFHVVIXOO\ REWDLQHG WKH UHTXLUHG YRWHU VLJQDWXUHV WR SXW D GLVLQFRUSRUDWLRQ UHIHUHQGXP WR SXEOLF YRWH 0DUFK +DG WKH PHDVXUH EHHQ VXFFHVVIXO WKH FLW\ RI 0LDPL

PAGE 51

ZRXOG KDYH EHHQ GLVVROYHG )RUPHU PXQLFLSDO VHUYLFHV ZRXOG KDYH EHHQ SURYLGHG E\ WKH PHWURSROLWDQ 'DGH FRXQW\ JRYHUQPHQW 7KH EDOORW LVVXH IDLOHG 0LDPL UHPDLQV LQFRUSRUDWHG DV WKH QDWLRQnV IRXUWK SRRUHVW FLW\ 7KH FLW\nV PLOOLRQ LQ ERQGV ZHUH GHYDOXHG WR MXQN VWDWXV DGYHUVHO\ LPSDFWLQJ WKH VWDWHnV HFRQRPLF RXWORRN DQG ILQDQFHV ,Q UHVSRQVH WKH VWDWH ZDV UHTXLUHG WR LQWHUYHQH )RU WKH ILUVW WLPH LQ )ORULGDnV \HDU KLVWRU\ LWV *RYHUQRU /DZWRQ &KLOHV DSSRLQWHG D ILYHSHUVRQ ILQDQFLDO HPHUJHQFLHV RYHUVLJKW ERDUG FKDLUHG E\ WKH /LHXWHQDQW *RYHUQRU 0F.D\f WR RYHUVHH PRQLWRU DQG UHVWRUH 0LDPLnV ILVFDO VROYHQF\ 7UHQGV LQ )HPDOH 5HSUHVHQWDWLRQ LQ 6WDWH /HJLVODWXUHV &RORUDGR (OHFWV WKH )LUVW )HPDOH 6WDWH /HJLVODWRUV 2Q 1RYHPEHU &RORUDGR HOHFWHG WKH ILUVW WKUHH IHPDOH VWDWH OHJLVODWRUV LQ WKH 8QLWHG 6WDWHV 5HSUHVHQWDWLYHV &DUULH & +ROO\ &ODUD &UHVVLQJKDP DQG )UDQFHV 6 .ORFN DOO 5HSXEOLFDQV 7KH ZRPHQ ZHUH HOHFWHG LQ ODUJH SDUW WKURXJK HIIRUWV RI WKH (DVW &DSLWRO +LOO :RPHQnV 5HSXEOLFDQ /HDJXH 7KH /HDJXH KHOSHG PRELOL]H D SHUFHQW YRWHU WXUQRXW DPRQJ &RORUDGRnV QHZO\ HQIUDQFKLVHG IHPDOH YRWHUV ZKR KDG EHHQ JUDQWHG VWDWH VXIIUDJH E\ UHIHUHQGXP LQ 6L[W\QLQH ZRPHQ VHUYHG DV VWDWH OHJLVODWRUV LQ D GR]HQ VWDWHV SULRU WR WKH UDWLILFDWLRQ

PAGE 52

RI WKH 1LQHWHHQWK $PHQGPHQW WR WKH 86 &RQVWLWXWLRQ ZKLFK JXDUDQWHHV ZRPHQ WKH YRWH QDWLRQZLGH 3ROLF\ FRQFHUQV UHODWHG WR JHQGHU LVVXHV ZHUH HYLGHQW LQ WKH SULRULWLHV DQG SURSRVDOV RI WKHVH HDUOLHVW IHPDOH OHJLVODWLYH SLRQHHUV 5HSUHVHQWDWLYH +ROO\ VXFFHVVIXOO\ VSRQVRUHG D ELOO LQWR ODZ WR UDLVH WKH DJH RI VH[XDOf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nV 5HSXEOLFDQ OHJLVODWLYH FDXFXV KHOG WKDW RQH KDOI RI WKH OHJLVODWRUV VKRXOG EH ZRPHQ EXW WKDW OV)RU EULHI SROLWLFDO ELRJUDSKLFDO VNHWFKHV RI WKH ILUVW IHPDOH VWDWH RU WHUULWRULDOf OHJLVODWRUV QDWLRQZLGH DQG D FRPSOHWH OLVWLQJ RI IHPDOH OHJLVODWRUV DQG WKHLU WHUPV LQ RIILFH VHH :RPHQ 6WDWH DQG 7HUULWRULDO /HJLVODWRUV (OL]DEHWK 0 &R[ f

PAGE 53

ZRPHQ RXJKW QRW WR LQWURGXFH UDGLFDO PHDVXUHV RU WDNH UDGLFDO SRVLWLRQV RQ UHIRUP TXHVWLRQV :LWKLQ ILYH \HDUV DIWHU UDWLI\LQJ WKH WK $PHQGPHQW ZRPHQ PRVWO\ 5HSXEOLFDQV ZHUH VHUYLQJ DV VWDWH OHJLVODWRUV )ROORZLQJ ERWK :RUOG :DU ,, DQG WKH .RUHDQ :DU WKH QXPEHUV RI ZRPHQ OHJLVODWRUV LQFUHDVHG VXEVWDQWLDOO\ LQ DQG LQ f ,Q KHU GHVFULSWLYH VXUYH\ UHVHDUFK RQ IHPDOH OHJLVODWRUV ZKR VHUYHG IURP WR :HUQHU f IRXQG PRVW ZHUH PLGGOH DJHG PDUULHG FROOHJH HGXFDWHG SURIHVVLRQDO ZRPHQ ZLWK JURZQ FKLOGUHQ 7KH\ ZHUH SULPDULO\ WHDFKHUV ODZ\HUV DQG VRFLDO VFLHQWLVWV 0RVW RI WKHP ZHUH PRWLYDWHG WR HQWHU SROLWLFV E\ D VHQVH RI PRUDO FRPPLWPHQW DQG VRFLDO FRQVFLHQFH DQG WKHLU OHJLVODWLYH LQWHUHVWV FHQWHUHGf RQ VRFLDO ZHOIDUH HGXFDWLRQ DQG IDPLO\ OLIH f )HPDOH /HJLVODWRUV RI WKH V DQG V ,Q WKH V IHPDOH OHJLVODWRUV ZHUH SUHGRPLQDQWO\ 5HSXEOLFDQ DQG FRQFHQWUDWHG LQ WKH 1HZ (QJODQG VWDWHV RI 9HUPRQW &RQQHFWLFXW DQG 1HZ +DPSVKLUH 7KH\ FRPSULVHG DOPRVW KDOI RI WKH IRXU SHUFHQW RI IHPDOH VWDWH OHJLVODWRUV Q f 7KHVH OHJLVODWRUV UHSUHVHQWHG QRQXUEDQ f4XRWHG IURP :RPHQ VWDWH DQG WHUULWRULDO OHJLVODWRUV $ VWDWHE\VWDWH DQDO\VLV ZLWK URVWHUV RI ZRPHQ &R[ f 1HFKHPLDV &DURO &KDQJHV LQ WKH (OHFWLRQ RI :RPHQ WR 86 6WDWH /HJLVODWLYH 6HDWV /HJLVODWLYH 6WXGLHV 4XDUWHUO\ YRO ;,, )HEUXDU\ 'DWD IURP 7DEOH SDJH

PAGE 54

QRUWKHDVWHUQ VWDWHV ZLWK ORZ SRSXODWLRQ JURZWK DQG RYHUVL]HG OHJLVODWLYH FKDPEHUV ,Q 9HUPRQW KDG VWDWH OHJLVODWRUV &RQQHFWLFXW KDG DQG WKH 1HZ +DPSVKLUH OHJLVODWXUH KDG DQG VWLOO KDV PHPEHUV 0HPEHUV ZHUH HOHFWHG IURP QXPHULFDOO\ VPDOO WRZQ RU YLOODJH VL]HG GLVWULFWV LQ ZKLFK FDPSDLJQ FRVWV ZHUH PLQLPDO WUHQGV ZKLFK FRQWLQXHG LQ %\ KDOI RI DOO OHJLVODWLYH ZRPHQ ZHUH FRQFHQWUDWHG LQ WKHVH WKUHH VWDWHV ZHUH LQ 9HUPRQW LQ &RQQHFWLFXW DQG LQ 1HZ +DPSVKLUH ZKLOH RWKHU OHJLVODWLYH FKDPEHUV KDG IHZHU WKDQ ILYH IHPDOH PHPEHUV HDFK 1HFKHPLDV f 7KH HDVH RI DFFHVVLELOLW\ WR JUDVV URRWV VXSSRUWf DQG WKH YRWHUV QR GRXEW FRQWULEXWHV WR WKH ODUJHU QXPEHU RI ZRPHQ SDUWLFLSDWLQJ LQ WKH RYHUVL]HG 1HZ (QJODQG OHJLVODWXUHV ZKLFK IXQFWLRQ YHU\ PXFK OLNH VWDWHZLGH WRZQ PHHWLQJV :HUQHU f 7KLV WUHQG FRQWLQXHV WRGD\ ,Q QHDUO\ QLQHW\ SHUFHQW RI PDOH DQG IHPDOH OHJLVODWRUV IURP 1HZ +DPSVKLUH SHUFHQWf DQG 9HUPRQW SHUFHQWf ZKR SDUWLFLSDWHG LQ WKLV GLVVHUWDWLRQ UHVHDUFK DFFHSWHG QR FDVK GRQDWLRQV IURP JURXSV RIWHQ WKH\ VSHQW OHVV WKDQ RQH KXQGUHG GROODUV WR EH HOHFWHG 6HYHUDO ZURWH SHUVRQDO QRWHV H[SODLQLQJ WKH\ KDG VSHQW QR PRQH\ LQ WKHLU PRVW UHFHQW HOHFWLRQ FDPSDLJQ 7KH SHUFHQWDJH RI ZRPHQ LQ VWDWH OHJLVODWXUHV GHFOLQHG EHJLQQLQJ LQ WKH PLG V WR D ORZ RI VHDWV

PAGE 55

7KHUH ZHUH IHZHU IHPDOH OHJLVODWRUV LQ WKDQ D GHFDGH HDUOLHU )HPDOH 6WDWH /HJLVODWRUV 6LQFH 7KH QXPEHU RI ZRPHQ OHJLVODWRUV EHJDQ D VKDUS FOLPE DIWHU 7KH QXPEHU RI ZRPHQ HOHFWHG WR VWDWH OHJLVODWXUHV LQFUHDVHG SHUFHQW LQ WKH GHFDGH EHWZHHQ DQG FRQWLQXLQJ WKHUHDIWHU WR D UHFRUG KLJK RI IROORZLQJ WKH HOHFWLRQ %\ ZRPHQ KHOG SHUFHQW RI VWDWH OHJLVODWLYH VHDWV *HRJUDSKLF FRQFHQWUDWLRQ LQ WKH 1RUWKHDVWf DQG 5HSXEOLFDQ SDUW\ WLHV RI ZRPHQ OHJLVODWRUV XQGHUZHQW D WUDQVIRUPDWLRQ LQ WKH V 1HFKHPLDV f ,Q KHU DQDO\VLV RI VRFLRHFRQRPLF DQG SROLWLFDO FRQWH[XDO YDULDEOHV 5XOH f IRXQG VL[ QHZ ZDYH VWDWHV &$ )/ +, .6 0' DQG 5,f WKDW KDG LQFUHDVHV RI SHUFHQW LQ WKH QXPEHU RI OHJLVODWLYH ZRPHQ 6KH FUHGLWV WKLV LQFUHDVH WR WKH SRVLWLYH HIIHFW RI WKH ZRPHQnV PRYHPHQW DV HYLGHQFHG E\ZRPHQnV SROLWLFDO UHFUXLWPHQW IRU RIILFHf WKH SURSRUWLRQ RI HOHFWHG ZRPHQ LQ WKH VWDWH ODUJH SURSRUWLRQV RI ZRUNLQJ DQG SURIHVVLRQDO ZRPHQ DQG PRUH FKDSWHUV SHU SRSXODWLRQ RI WKH 1DWLRQDO 2UJDQL]DWLRQ IRU :RPHQ f 7KH QXPEHU RI ZRPHQ VHUYLQJ LQ VWDWH OHJLVODWXUHV DW WKH WLPH RI WKLV UHVHDUFK LQ -XQH f KDV

PAGE 56

TXLQWXSOHG IURP SHUFHQW WR SHUFHQW VLQFH ,Q 1RYHPEHU UHIHUUHG WR E\ WKH PHGLD DV 7KH
PAGE 57

RQHKXQGUHG\HDU WDEOH RI IHPDOH OHJLVODWRUV E\ VWDWH FKDPEHU DQG SDUWLVDQVKLS VHH $SSHQGL[ $ :RPHQ DUH FXUUHQWO\ HOHFWHG DQG VHUYH LQ DOO 86 VWDWH OHJLVODWLYH FKDPEHUV DOWKRXJK ILYH VWDWH VHQDWHV KDYH RQO\ RQH IHPDOH PHPEHU$/ $5 187 DQG :< $ODEDPD UDQNHG ODVW ILIWLHWKf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f :RPHQ LQ 6WDWH /HJLVODWXUHV )DFW VKHHW f DQG )DFW VKHHW f &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV &$:3f

PAGE 58

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f WR WKH 86 +RXVH )RXU ZRPHQ 0DUJDUHW &KDVH 6PLWK 50( 2O\PSLD 6QRZH 50( %DUEDUD 0LNXOVNL'0' DQG %DUEDUD %R[HU '&$ KDYH ULVHQ IURP VWDWH OHJLVODWXUHV WKURXJK WKH 86 +RXVH WR EHFRPH 86 6HQDWRUV WKH KLJKHVW QDWLRQDO RIILFH WR ZKLFK DQ $PHULFDQ ZRPDQ KDV EHHQ HOHFWHG /HJLVODWLYH OHDGHUV ZHUH LGHQWLILHG IURP WKH 'LUHFWRU\ RI /HJLVODWLYH /HDGHUV SXEOLVKHG E\ WKH 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV 7KHVH IRUPDO OHDGHUVKLS SRVLWLRQV LQFOXGH 6HQDWH 3UHVLGHQW $.f 3UHVLGHQW 3UR 7HUQ &7 :$f 6HQDWH 0DMRULW\ RU 0LQRULW\f /HDGHUV LQ VL[ VWDWHV '( +, 19 1& 97 DQG :9f 6SHDNHU RI WKH +RXVH LQ WKUHH VWDWHV e.&+ 25 DQG 3XHUWR 5LFRf DQG +RXVH 0DMRULW\ RU 0LQRULW\ /HDGHUV LQ VL[ VWDWHV &2 02 1+ 6& 87 DQG :
PAGE 59

5HFHQW 5HVHDUFK RQ WKH ,PSDFW RI )HPDOH 6WDWH /HJLVODWRUV $ VXEVWDQWLDO ERG\ RI NQRZOHGJH EDVHG RQ ZRPHQnV HOHFWRUDO H[SHULHQFH 5XOH 'DUF\ :HOFK t &ODUN f FDQGLGDF\ &DUUROO f DQG RQ WKH SROLF\ DJHQGDV RI IHPDOH HOLWHV -RQHV t -RQDVGRWWLU f DW WKH ORFDO DQG VWDWH OHJLVODWLYH OHYHOV KDV EHHQ GHYHORSHG VLQFH WKH V (DUO\ UHVHDUFK RQ WKH LPSDFW RI IHPDOH VWDWH OHJLVODWRUV LQ WKH V IRXQG WKH\ SURYLGHG V\PEROLF GHVFULSWLYH UHSUHVHQWDWLRQ IRU ZRPHQ EXW GLG QRW GLIIHU IURP PDOH OHJLVODWRUV LQ WKHLU OHJLVODWLYH SULRULWLHV RU SROLF\ DJHQGD ,Q D FDVH VWXG\ RI +DZDLLDQ OHJLVODWRUV WKH IHPDOH OHJLVODWRUV LQWHUYLHZHG SURYLGHG V\PEROLF RU GHVFULSWLYH EXW QRW VXEVWDQWLYH JHQGHUUHODWHG UHSUHVHQWDWLRQ GLIIHUHQW IURP WKHLU PDOH FROOHDJXHV 0H]H\ f $ &DOLIRUQLD 6WDWH $VVHPEO\f FDVH VWXG\ DQDO\VLV RI YRWLQJ EHKDYLRU RQ ZRPHQnV LVVXHV IRXQG PDOH DVVHPEO\ PHPEHUV ZHUH PRUH OLEHUDO WKDQ WKHLU IHPDOH FRXQWHUSDUWV 7KRPDV f 7KRPDV DFNQRZOHGJHV WKHVH ILQGLQJV DUH TXLWH VXUSULVLQJ DQG FRQWUDU\ WR RXU H[SHFWDWLRQV 6KH SURSRVHV DQ H[SODQDWRU\ EXW XQWHVWHG DOWHUQDWH K\SRWKHVLV WKDW WKH PDOHf 'HPRFUDWV LQ WKH $VVHPEO\f DUH DOUHDG\ VR VXSSRUWLYH RI ZRPHQnV ULJKWV OHJLVODWLRQ OLWWOH UHVLGXDO JHQGHUf HIIHFW LV SRVVLEOH f &RQVLVWHQW ZLWK PRUH UHFHQW ILQGLQJV 'RGVRQ DQG

PAGE 60

&DUUROO f 7KRPDV IRXQG IHPDOH OHJLVODWRUV ZHUH PRUH VXSSRUWLYH RI ZRPHQnV LVVXHV WKDQ PDOH OHJLVODWRUV LQ WKHLU SROLWLFDO SDUW\ )HPDOH 5HSXEOLFDQ OHJLVODWRUV ZHUH OHVV VXSSRUWLYH RI WKHVH LVVXHV WKDQ IHPDOH 'HPRFUDWV *HQGHU 'LIIHUHQFHV LQ /HJLVODWLYH 3ROLF\ 3ULRULWLHV $V WKH QXPEHU RI ZRPHQ LQ VWDWH OHJLVODWXUHV FRQWLQXHG LQFUHDVLQJ GXULQJ WKURXJK WKH V UHVHDUFK VXJJHVWHG D JURZLQJ JHQGHUEDVHG GLIIHUHQFH EHWZHHQ WKH OHJLVODWLYH SROLF\ SULRULWLHV RI PHQ DQG ZRPHQ OHJLVODWRUV 0LFKHOOH 6DLQW*HUPDLQ FRQGXFWHG D SLRQHHULQJ \HDU f ORQJLWXGLQDO SROLF\ FDVH VWXG\ RI ERWK FKDPEHUV RI WKH $UL]RQD OHJLVODWXUH 'XULQJ KHU UHVHDUFK WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV VHUYLQJ LQ $UL]RQD LQFUHDVHG IURP SHUFHQW WR SHUFHQW 6KH IRXQG DV WKH SURSRUWLRQ RI $UL]RQD IHPDOH OHJLVODWRUV LQFUHDVHG WKH\ SURYLGHG PRUH HIIHFWLYH VXEVWDQWLYH SROLF\ UHSUHVHQWDWLRQ IRU WUDGLWLRQDO ZRPHQnV LVVXHV DQG IHPLQLVW LVVXHV WKDQ WKHLU PDOH FROOHDJXHV 6DLQW*HUPDLQ f )XUWKHUPRUH VKH UHSRUWV WKDW WKH IHPDOH OHJLVODWRUV LQ KHU VWXG\ ZHUH PRUH VXFFHVVIXO WKDQ WKHLU PDOH FRXQWHUSDUWV LQ JHWWLQJ WKHLU SULRULW\ OHJLVODWLRQ RQ WKHVH LVVXHV HQDFWHG +HU ILQGLQJV IRUP SDUW RI WKH WKHRUHWLFDO EDVLV RI WKLV UHVHDUFK DQG DUH GLVFXVVHG LQ JUHDWHU GHWDLO LQ FKDSWHU WKUHH

PAGE 61

)HPDOH /HJLVODWRUV $IIHFWLQJ WKH /HJLVODWLYH 3URFHVV ,Q D VRFLROLQJXLVWLF DQDO\VLV RI WDSHG LQWHUYLHZV ZLWK WHQ PHPEHUV RI WKH &RORUDGR +RXVH VLJQLILFDQW GLIIHUHQFHV ZHUH IRXQG EHWZHHQ OHJLVODWRUVn GHFLVLRQPDNLQJ SURFHVVHV 7KHVH ZHUH DWWULEXWHG WR JHQGHUUHODWHG DWWLWXGLQDO FRQVWUXFWV DQG H[SHULHQFHV .DWKOHQH f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nV SROLWLFDO RUJDQL]DWLRQV SULRU WR GHFLVLRQPDNLQJ .DWKOHQH f $ QRQUDQGRP VHPLVWUXFWXUHG LQWHUYLHZ VWXG\ ZLWK IHPDOH VWDWH OHJLVODWLYH OHDGHUV IURP VWDWHV H[DPLQHG JHQGHU GLIIHUHQFHV LQ FKDPEHU OHDGHUVKLS VW\OHV -HZHOO DQG :KLFNHU f $ W\SRORJ\ RI QLQH OHJLVODWLYH OHDGHUVKLS VW\OHV ZDV SURSRVHG EDVHG RQ SHUVRQDO OHDGHUVKLS VW\OH DQG WKH OHJLVODWRUnV SULPDU\ OHJLVODWLYH JRDO SRZHU SROLF\ RU

PAGE 62

SURFHVVf )HPDOH OHDGHUV ZHUH IRXQG PRVW IUHTXHQWO\ WR IDFLOLWDWH FKDPEHU GHFLVLRQV WKURXJK FRQVHQVXV EXLOGLQJ FRRSHUDWLRQ DQG QHJRWLDWLRQ WKDQ E\ FRPPDQG DXWKRULW\ DQG ]HURVXP FRQIOLFWXDO PHWKRGV 7KLV UHVHDUFK VXJJHVWV IHPDOH OHJLVODWRUV PD\ EH DOWHULQJ WKH SROLF\ DJHQGDV DQG GHFLVLRQn PDNLQJ SURFHVV LQ WKHLU FKDPEHUV )HPLQLVW 3ROLF\ 3ULRULWLHV $PRQD )HPDOH /HJLVODWRUV ,Q D QDWLRQZLGH VXUYH\ RI IHPDOH OHJLVODWRUV WKH SUHVHQFH DQG VWUHQJWK RI D VHOIUHSRUWHG IHPLQLVW LGHQWLW\ DPRQJ IHPDOH OHJLVODWRUV ZDV IRXQG WR EH SRVLWLYHO\ FRUUHODWHG ZLWK WKHLU OHYHO RI VXSSRUW IRU ZRPHQnV SROLF\ LVVXHV /HJLVODWRUV ZKR LGHQWLILHG WKHPVHOYHV DV VWURQJ IHPLQLVWV UDQNHG ZRPHQnV LVVXHV KLJKHVW DPRQJ WKHLU OHJLVODWLYH SULRULWLHV VLJQLILFDQWO\ PRUH RIWHQ WKDQ HLWKHU ZHDN RU QRQIHPLQLVW OHJLVODWRUV 'RODQ DQG )RUG f 5HJLRQDO GLIIHUHQFHV DPRQJ IHPDOH OHJLVODWRUV ZHUH DOVR VLJQLILFDQW :RPHQ UHSUHVHQWLQJ 6RXWKHUQ WKDW LV IRUPHUO\ &RQIHGHUDWH VWDWHV ZHUH OHDVW OLNHO\ WR LGHQWLI\ WKHPVHOYHV DV IHPLQLVW RU DFW ZLWK D GLVWLQFWLYHO\ ZRPDQnV LGHQWLW\ 'RODQ DQG )RUG f %XW RWKHU VFKRODUV KDYH IRXQG HYHQ ZRPHQ ZKR UHMHFW WKH ODEHO RI IHPLQLVW DQG GR QRW WKLQN RI WKHPVHOYHV DV SXUVXLQJ ZRPHQnV ULJKWV LQWURGXFH DQG VXFFHVVIXOO\ VWHHU PRUH OHJLVODWLRQ DIIHFWLQJ ZRPHQnV HFRQRPLF HPSOR\PHQW KHDOWK DQG IDPLO\

PAGE 63

FRQFHUQV WKURXJK VWDWH OHJLVODWXUHV WKDQ WKHLU PDOH FROOHDJXHV 5HLQJROG D 7KRPDV f $ 'LVWLQFWLYH :RPHQnV DQG )HPLQLVW 3ROLF\ $JHQGD 6RPH VFKRODUV KDYH LGHQWLILHG D GLVWLQFWLYH ZRPHQnV RU IHPLQLVW OHJLVODWLYH SROLF\ DJHQGD 6DSLUR -RQHV 0XHOOHU 0LOOHU f $ WZHOYHVWDWH VWXG\ RI VWDWH UHSUHVHQWDWLYHV IRXQG DV WKH QXPEHU RI IHPDOH OHJLVODWRUV LQFUHDVHG DERYH SHUFHQW LQ D VWDWH PRUH OHJLVODWLRQ ZDV VSRQVRUHG DQG HQDFWHG E\ ERWK PHQ DQG ZRPHQ ZKLFK GHDOW ZLWK FKLOG ZHOIDUH IDPLO\ DQG ZRPHQnV KHDOWK DQG VRFLDO LVVXHV 7KRPDV DQG :HOFK f $OWKRXJK WKLV UHVHDUFK IRXQG DQ LQILQLWHVLPDOO\ VPDOO SROLF\ LPSDFW RI LQFUHDVHG SURSRUWLRQV RI ZRPHQ LQ VWDWH OHJLVODWXUHV LW GLG ILQG WKDW JHQGHU GLIIHUHQFHV DUH FOHDUO\ DSSDUHQW LQ OHJLVODWLYH SULRULWLHV KHOG E\ VWDWH OHJLVODWRUV f ,Q D WZRVWDWH $UL]RQD DQG &DOLIRUQLDf DWWLWXGLQDO VXUYH\ DQG LQWHUYLHZ VWXG\ D PDMRULW\ RI IHPDOH SHUFHQWf DQG PDOH SHUFHQWf OHJLVODWRUV EHOLHYHGf WKHUH LV DQ LGHQWLILDEOH ZRPHQnV SROLWLFDO LVVXH DJHQGD 5HLQJROG Ef 7KLV DJHQGD LQFOXGHV LVVXHV VXFK DV ZRPHQ DQG FKLOGUHQnV FRQFHUQV DERUWLRQ LVVXHV GD\ FDUH GRPHVWLF YLROHQFH HGXFDWLRQ KHDOWK FDUH DQG VH[ GLVFULPLQDWLRQ :RPHQ OHJLVODWRUV LQ ERWK VWDWHV FLWHG ZRPHQ DQG ZRPHQnV JURXSV DV WKH PRVW VXSSRUWLYH

PAGE 64

FRQVWLWXHQF\ JURXS IRU IHPDOH RIILFLDOV 5HLQJROG E f 2YHU WKUHHIRXUWKV SHUFHQWf RI WKH IHPDOH OHJLVODWRUV LQWHUYLHZHG E\ 5HLQJROG EHOLHYHG WKH\ IXOILOOHG D XQLTXH UROH YLVDYLV ZRPHQnV LVVXHV RQO\ SHUFHQW RI WKH PDOH RIILFLDOV DJUHHGf 5HLQJROG E f 7KRPDVn HDUOLHU ILQGLQJV IURP D WZHOYH VWDWH OHJLVODWLYH VXUYH\ FRQFXU WKDW IHPDOH OHJLVODWRUV GR PDNH D SROLF\ GLIIHUHQFH DQG WKHLU FDSDFLW\ WR GR VR LV UHODWHG WR WKH OHYHO RI VXSSRUW IURP FROOHDJXHV f 7KLV PD\ EH DFFRPSOLVKHG E\ HLWKHU KDYLQJ D KLJK SHUFHQWDJH RI IHPDOH OHJLVODWRUV RU WKURXJK WKH SUHVHQFH RI D IRUPDO ZRPHQnV OHJLVODWLYH FDXFXV $ QDWLRQZLGH WHOHSKRQH VXUYH\ RI VWDWH OHJLVODWRUV E\ WKH &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV &$:3f IRXQG VWURQJ OLQNDJHV EHWZHHQ OHJLVODWLYH ZRPHQ DQG RUJDQL]HG ZRPHQnV OHJLVODWLYH FDXFXVHV :RPHQnV IHPLQLVWf RUJDQL]DWLRQV RXWVLGH WKHLU FKDPEHU ZHUH KLJKO\ FRUUHODWHG ZLWK KRZ DFWLYHO\ VXSSRUWLYH IHPDOH OHJLVODWRUV ZHUH RI ZRPHQnV SROLWLFDO LQWHUHVWVRU ZRPHQnV FXOWXUH &DUUROO f $ PDMRULW\ RI OHJLVODWLYH ZRPHQ KDG FORVH DQG DFWLYHf WLHV WR ZRPHQnV RUJDQL]DWLRQV SHUFHQW RI VHQDWRUV f DQG SHUFHQW RI UHSUHVHQWDWLYHV f JDYH PRQH\ WR WKHVH RUJDQL]DWLRQV DQG URXJKO\ HTXDO QXPEHUV UHSRUWHGf UHFHLYLQJ PRQHWDU\ FDPSDLJQ FRQWULEXWLRQV IURP ZRPHQnV RUJDQL]DWLRQV f

PAGE 65

0HWKRGRORJLFDOO\ ULJRURXV UHVHDUFK FRQGXFWHG LQ WKH SDVW IHZ \HDUV SULPDULO\ E\ IHPDOH SROLWLFDO VFLHQWLVWV LQFUHDVLQJO\ VXJJHVWV WKDW HOHFWLQJ PRUH ZRPHQ WR OHJLVODWXUHV DQG LQFUHDVLQJ RU VWUHQJWKHQLQJ WKH VXVWDLQLQJ OLQNDJHV EHWZHHQ OHJLVODWLYH ZRPHQ DQG ZRPHQn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

PAGE 66

&+$37(5 7+(25(7,&$/ )5$0(:25. $1' +<327+(6(6 7KHRULHV RI 3ROLWLFDO 5HSUHVHQWDWLRQ 7KLV FKDSWHU IRFXVHV RQ WKH LQWHUDFWLRQ RI NH\ FRQFHSWV LQ SROLWLFDO UHSUHVHQWDWLRQ OHJLVODWLYH PLQRULW\ SDUWLFLSDWLRQ DQG IHPLQLVW SROLWLFDO WKHRU\ WR EXLOG D IUDPHZRUN IRU WKLV UHVHDUFK 2I SDUWLFXODU LPSRUWDQFH WR WKLV UHVHDUFK LV WKH FRQFHSW RI UHSUHVHQWLQJ ZRPHQnV FXOWXUH DQG WKHRULHV RI GHVFULSWLYH VXEVWDQWLYH PLQRULW\ JURXS DQG FROOHFWLYH OHJLVODWLYH UHSUHVHQWDWLRQ 7KLV FKDSWHU FRQFOXGHV ZLWK D VWDWHPHQW RI WKH UHVHDUFK SUREOHP ,QVWUXFWHG 'HOHJDWH YV 7UXVWHH 5HSUHVHQWDWLRQ $ UROHWKHRU\ PRGHO VWXG\ RI VWDWH OHJLVODWLYH EHKDYLRU LGHQWLILHG WKUHH PDMRU UROHV RU UHSUHVHQWDWLRQ VW\OHV RI GHFLVLRQPDNLQJ :DKONH (XODX %XFKDQDQ )HUJXVRQ f 7KHVH UROHV DUH f LQVWUXFWHG GHOHJDWH f WUXVWHH RU JXDUGLDQ DQG f SROLWLFR +RZ OHJLVODWRUV SHUFHLYH WKHLU UROH PD\ KHOS H[SODLQ GLIIHUHQFHV LQ OHJLVODWRUVn GHFLVLRQPDNLQJ UHSUHVHQWDWLRQ VW\OH DQG UHVSRQVLYHQHVV WR WKHLU FRQVWLWXHQWVn SXEOLF RSLQLRQ

PAGE 67

$V DQ LQVWUXFWHG GHOHJDWH D OHJLVODWRU LV H[SHFWHG WR GR ZKDW FRQVWLWXHQWV ZDQW DQG IROORZ LQVWUXFWLRQV HYHQ LI WKH\ DUH FRXQWHU WR WKH UHSUHVHQWDWLYHnV RZQ SHUVRQDO EHOLHIV DQG MXGJHPHQW f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f 'HVFULSWLYH 6\PEROLF DQG 6XEVWDQWLYH 5HSUHVHQWDWLRQ ,Q D FRQFHSWXDO DQDO\VLV 3LWNLQ f XVHV VRFLROLQJXLVWLF DQG SKLORVRSKLFDO PHWKRGV WR GHILQH WKUHH GLIIHUHQW W\SHV RI UHSUHVHQWDWLRQ GHVFULSWLYH V\PEROLF DQG VXEVWDQWLYH 6KH DUJXHV ERWK GHVFULSWLYH DQG V\PEROLF

PAGE 68

IRUPV RI UHSUHVHQWDWLRQ FRQVLVW RI VWDQGLQJ IRU VRPHWKLQJ QRW DFWLQJ IRU RU RQ WKH EHKDOI RI WKH LQWHUHVWV RI WKRVH EHLQJ UHSUHVHQWHG 3LWNLQ GHILQHV SROLWLFDO UHSUHVHQWDWLRQ DV VXEVWDQWLYH UHSUHVHQWDWLRQ :LWKLQ D VWDWH UHSUHVHQWDWLRQ PRVW FRPPRQO\ LV DVFULEHG WR WKH OHJLVODWXUH 3ROLWLFDO UHSUHVHQWDWLRQ LV LQ IDFW UHSUHVHQWDWLRQ SDUWLFXODUO\ LQ WKH VHQVH RI nDFWLQJ IRUn f 'HVFULSWLYH UHSUHVHQWDWLRQ 'HVFULSWLYH UHSUHVHQWDWLRQ FRQVLVWV RI VLPSO\ KDYLQJ D UHVHPEODQFH WR VRPHWKLQJ EHLQJ D PLUURU RU DQ DFFXUDWH UHIOHFWLRQ ,W LV SDVVLYH DQG GRHV QRW LQYROYH DFWLYLW\ 7KHUHIRUH LW FDQ EH GRQH E\ LQDQLPDWH REMHFWV VXFK DV ZRUNV RI DUWf 'HVFULSWLYH UHSUHVHQWDWLRQ GRHV QRW DOORZ IRU WKH DFWLYLW\ RI UHSUHVHQWLQJ RU DFWLQJ IRU RU RQ EHKDOI RI RWKHUV ZKLFK PHDQV LQ WKH SROLWLFDO UHDOP LW KDV QR URRP IRU WKH FUHDWLYH DFWLYLWLHV RI D UHSUHVHQWDWLYH OHJLVODWXUH WKH IRUPLQJ RI FRQVHQVXV WKH IRUPXODWLQJ RI SROLF\ RU WKH DFWLYLW\ ZH URXJKO\ GHVLJQDWH E\ nJRYHUQLQJn f 6\PEROLF UHSUHVHQWDWLRQ 6\PEROLF UHSUHVHQWDWLRQ LV DOVR SDVVLYH DQG RIWHQ FDQ EH GRQH E\ LQDQLPDWH REMHFWV WKDW VXEVWLWXWH IRU RU VWDQG IRU VRPHWKLQJ HOVH 6\PEROV DUH QRW SUR[\ IRU WKHLU REMHFWV EXW DUH YHKLFOHV IRU WKH FRQFHSWLRQ RI ZKDW WKH\

PAGE 69

V\PEROL]H f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f DFFRXQWDEOH IRU WKLV DFWLRQ DQG EHKDYLRU 3ROLWLFDO UHSUHVHQWDWLRQ LV DFWLQJ LQ WKH LQWHUHVW RI WKH UHSUHVHQWHG LQ D PDQQHU UHVSRQVLYH WR WKHP WKH UHSUHVHQWDWLYH PXVW DFW LQGHSHQGHQWO\ KLV RU KHUf DFWLRQ PXVW LQYROYH GLVFUHWLRQ DQG MXGJHPHQW f :KHQ WKH UHSUHVHQWDWLYHV XVH LQGHSHQGHQW MXGJHPHQW DQG RFFDVLRQDOO\ DFW FRQWUDU\ WR WKHLU FRQVWLWXHQWVn RSLQLRQV WKH RIILFLDO LV KHOG DFFRXQWDEOH WR H[SODLQ DQG DW WLPHV MXVWLI\ KLV RU KHU LQGHSHQGHQFH LQ RUGHU WR PLQLPL]H SRWHQWLDO UHSUHVHQWDWLRQ FRQIOLFWV 7KLV GHILQLWLRQ RI DFWLYH VXEVWDQWLYH SROLWLFDO UHSUHVHQWDWLRQ ZLWK LQGHSHQGHQW MXGJHPHQW DQG DFFRXQWDELOLW\ DSSHDUV WR EH PRUH FRQVLVWHQW ZLWK WKH WUXVWHH PRGHO RI UHSUHVHQWDWLRQ WKDQ ZLWK WKH LQVWUXFWHG GHOHJDWH PRGHO

PAGE 70

$SSO\LQJ 3LWNLQnV FRQFHSWV RI UHSUHVHQWDWLRQ WR WKLV UHVHDUFK WKUHH LPSRUWDQW FRQFOXVLRQV FDQ EH GUDZQ )LUVW RQO\ D IHPDOH OHJLVODWRU FDQ SURYLGH DFFXUDWH GHVFULSWLYH UHSUHVHQWDWLRQ IRU RWKHU ZRPHQ 6HFRQG HLWKHU JHQGHU KDV WKH SRWHQWLDO WR SURYLGH VXEVWDQWLYH SROLWLFDO UHSUHVHQWDWLRQ E\ DFWLQJ IRU ZRPHQnV LQWHUHVWV VLQFH LW LV WKH RIILFLDOnV EHKDYLRU RQ EHKDOI RI ZRPHQ QRW WKH OHJLVODWRUnV JHQGHU ZKLFK LV PRVW FUXFLDO 7KLUG QRW DOO IHPDOH OHJLVODWRUV VROHO\ EHFDXVH RI WKHLU JHQGHU SURYLGH VXEVWDQWLYH UHSUHVHQWDWLRQ IRU WUDGLWLRQDO IHPDOH SROLF\ FRQFHUQV RU IHPLQLVW LVVXHV 6XVDQ 0H]H\ VD\V LW VXFFLQFWO\ VLPSO\ FRXQWLQJ IHPDOH QRVHV LQ SROLWLFDO GHFLVLRQPDNLQJ LQVWLWXWLRQV GRHV QRW SURYLGH D EDURPHWHU RI VXSSRUW IRU ZRPHQnV SROLF\ LVVXHV f &ROOHFWLYH YV '\DGLF 5HSUHVHQWDWLRQ '\DGLF UHSUHVHQWDWLRQ YLHZV VXEVWDQWLYH UHSUHVHQWDWLRQ WKURXJK WKH HOHFWRUDO FRQWH[W RI RQH OHJLVODWRU OLQNHG WR WKH VSHFLILF FRQVWLWXHQWV WKDW FDQ HOHFW WKH RIILFLDO ,Q WKLV PRGHO FLWL]HQV DUH RU DUH QRWf DFFXUDWHO\ UHSUHVHQWHG RQO\ E\ WKH RQH HOHFWHG RIILFLDO WKH\ FDQ YRWH IRU RU DJDLQVWf 7KH SDLUHG OHJLVODWRUGLVWULFW PRGHO KDV GRPLQDWHG PRVW HPSLULFDO UHSUHVHQWDWLRQ UHVHDUFK LQ SROLWLFDO VFLHQFH 3LWNLQ DUJXHG SROLWLFDO UHSUHVHQWDWLRQ LV SULPDULO\ D SXEOLF LQVWLWXWLRQDOL]HG DUUDQJHPHQW LQYROYLQJ PDQ\ SHRSOH

PAGE 71

DQG JURXSV DQG RSHUDWLQJ LQ WKH FRPSOH[ ZD\V RI ODUJHVFDOH VRFLDO DUUDQJHPHQWV f :HLVVEHUJ f DJUHHV DGYRFDWLQJ D PRGHO RI FROOHFWLYH UHSUHVHQWDWLRQ IURP DQ LQVWLWXWLRQDO YLHZSRLQW +H DUJXHV FROOHFWLYH UHSUHVHQWDWLRQ FDQ SURYLGH PRUH DFFXUDWH DQG GLYHUVH UHSUHVHQWDWLRQ IRU QRQJHRJUDSKLFDOO\ EDVHG FRQVWLWXHQWVn LQWHUHVWV &ROOHFWLYH UHSUHVHQWDWLRQ IRFXVHV RQ WKH UHSUHVHQWDWLRQ RI DQ RSLQLRQ RU SROLF\ DJUHHPHQWf ZLWKLQ DQ SROLWLFDOf LQVWLWXWLRQ LQGHSHQGHQW RI DQ HOHFWRUDO UHODWLRQVKLS EHWZHHQ RSLQLRQ KROGHUV DQG WKH OHJLVODWRU f $Q H[DPSOH RI FROOHFWLYH UHSUHVHQWDWLRQ LV D OHJLVODWRU EHFRPLQJ DQ DGYRFDWH DQG VSRNHVSHUVRQ IRU D SDUWLFXODU SROLF\ RU QRQJHRJUDSKLF JURXS RI SHRSOH ZKR VKDUH WKH OHJLVODWRUnV SRVLWLRQ EXW KDYH QR HOHFWRUDO FRQQHFWLRQ WR KLP RU KHU )RUPHU 86 5HSUHVHQWDWLYH 3DWULFLD 6FKURHGHU '&2f ZDV DQ DGYRFDWH IRU WKH PLOLWDU\ DQG IRU OLEHUDO IHPLQLVWV WKURXJKRXW KHU &RQJUHVVLRQDO FDUHHU )RU PHPEHUV RI WKHVH JURXSV VKH SURYLGHG FROOHFWLYH UHSUHVHQWDWLRQ DOWKRXJK PRVW RI KHU LGHRORJLFDO FRQVWLWXHQWV OLYHG RXWVLGH KHU &RORUDGR FRQJUHVVLRQDO GLVWULFW DQG FRXOG QRW YRWH WR UHHOHFW KHU +XUOH\ f DUJXHV :HLVVEHUJnV FRQFHSW RI FROOHFWLYH UHSUHVHQWDWLRQ VKRXOG EH H[WHQGHG EH\RQG KDYLQJ D SROLF\ RSLQLRQ H[SUHVVHG +XUOH\ UHGHILQHG LWf DV WKH H[WHQW WR ZKLFKSROLF\ RXWSXW GHFLVLRQf UHIOHFWV WKH FROOHFWLYH

PAGE 72

GLVWULEXWLRQ RI SXEOLF RSLQLRQ f $ FRPSDUDWLYH FDVH VWXG\ RI IRXU ZHVWHUQ FLWL]HQ VWDWH OHJLVODWXUHV OLQNHG FROOHFWLYH LQVWLWXWLRQDO UHSUHVHQWDWLRQ ZLWK SROLF\ UHVSRQVLYHQHVV ,QJUDP /DQH\ 0F&DLQ f ,W IRFXVHG RQ OHJLVODWRUVn PRWLYDWLRQV WR WUDQVODWH SXEOLF RSLQLRQ RI YDULRXV FRQVWLWXHQW JURXSV LQWR DFWLRQV 7KHLU VWXG\ H[SDQGV WKH FRQFHSW RI SROLF\ UHSUHVHQWDWLRQ WR LQFOXGH SROLF\ RXWSXWV RI V\PEROLF VWDWHPHQWV DQG FRQVWLWXHQF\ VHUYLFH LQ WKDW SROLF\ DUHDf DV ZHOO DV DFWXDO SROLF\ FKRLFHV DQG GHFLVLRQPDNLQJ 8QOLNH PDQ\ UDFLDO DQG HWKQLF PLQRULWLHV WKH PDMRULW\ RI $PHULFDQ ZRPHQ DUH &DXFDVLDQ DQG QRW JHRJUDSKLFDOO\ FRQFHQWUDWHG E\ KRXVLQJ SDWWHUQV LQWR IHZ OHJLVODWLYH GLVWULFWV 7KHUHIRUH FROOHFWLYH UHSUHVHQWDWLRQ PD\ SURYLGH LPSURYHG RU PRUH DFFXUDWH UHSUHVHQWDWLRQ IRU ZRPHQnV SROLF\ LQWHUHVWV 1RUPDWLYH 5HSUHVHQWDWLRQ DQG ,GHRORJLFDO 3UR[LPLW\ $FKHQ f GHILQHV UHSUHVHQWDWLYHQHVV DV D QRUPDWLYH SURSHUW\ RI WKH UHODWLRQVKLS EHWZHHQ D OHJLVODWRUnV RSLQLRQV DQG WKRVH RI KLV FRQVWLWXHQF\ DV D ZKROH f +H GHYHORSV WKUHH PHDVXUHV RI UHSUHVHQWDWLRQ f LGHRORJLFDO SUR[LPLW\ f FHQWULVP DQG f UHVSRQVLYHQHVV WR FRQVWLWXHQWV 3UR[LPLW\ LV KRZ FORVHO\ OHJLVODWRUV UHVHPEOH WKHLU FRQVWLWXHQWV LGHRORJLFDOO\ RU WKH LGHRORJLFDO GLVWDQFH EHWZHHQ D OHJLVODWRU DQG FRQVWLWXHQWV

PAGE 73

RQ SROLF\ RXWFRPHV $FKHQ IRFXVHG RQ WKH LGHRORJLFDO UHSUHVHQWDWLRQ RI D OHJLVODWRUnV HQWLUH FRQVWLWXHQF\QRW VSHFLILF JURXSV ZLWKLQ LW ,I IHPDOH OHJLVODWRUV KDYH GLVWLQFWLYH JHQGHU UHODWHG SROLF\ DJHQGD SULRULWLHV GLIIHUHQW IURP WKHLU PDOH FROOHDJXHV WKDW DUH VWUHQJWKHQHG E\ FORVH OLQNDJHV ZLWK RUJDQL]HG ZRPHQnV JURXSV WKHQ ERWK $FKHQnV SUR[LPLW\ DQG UHVSRQVLYHQHVV LQGLFDWRUV PD\ EHFRPH LPSRUWDQW WKHRUHWLFDO FRQFHSWV LQ WKLV UHVHDUFK /HJLVODWLYH 7KHRU\ /HJLVODWLYH 5ROHV $ UROHWKHRU\ VWXG\ RI OHJLVODWLYH EHKDYLRU LQ IRXU ZHVWHUQ VWDWHV FRPELQHG WKH WUDGLWLRQDO LQVWLWXWLRQDO VWUXFWXUDOf VWXG\ RI VWDWH OHJLVODWXUHV ZLWK DQ LQQRYDWLYH EHKDYLRUDO DSSURDFK WR OHJLVODWRUnV GHFLVLRQPDNLQJ SURFHVVHV :DKONH (XODX %XFKDQDQ )HUJXVRQ f ,W LGHQWLILHG IRXU PDMRU UROHV WKDW KHOS VKDSH OHJLVODWRUVn EHKDYLRU DQG SHUFHSWLRQV DQG LQIOXHQFH WKHLU OHJLVODWLYH SULRULWLHV DQG SROLF\ GHFLVLRQPDNLQJ 7KHVH UROHV LQFOXGH PHPEHUVn f FRUH UHSUHVHQWDWLRQ UROHV WUXVWHH GHOHJDWH RU SROLWLFRf DQG f FOLHQWHOH VHFWRU UROHV KRZ OHJLVODWRUV UHVSRQG WR OREE\LVWV DQG OHJLVODWLYH FROOHDJXHVf 2WKHU LPSRUWDQW OHJLVODWLYH UROHV LQFOXGH VSHFLDOL]HG VXEUROHV VXFK DV KROGLQJ SDUW\ RU OHDGHUVKLS SRVLWLRQV ZLWKLQ WKH FKDPEHU 'HFLVLRQPDNLQJ LV DOVR DIIHFWHG E\ D OHJLVODWRUnV SHUVRQDO IDFWRUV IDPLO\

PAGE 74

UHODWLRQVKLSV IULHQGVKLSV DQG QRQSROLWLFDO VRFLDO UROHV VXFK DV JURXS PHPEHUVKLSV 7KHVH FRPSHWLQJ DW WLPHV FRQIOLFWLQJ UROHV LQWHUDFW WR KHOS FUHDWH WKH YDULHG YDOXHV SULRULWLHV DQG GLIIHULQJ OHJLVODWLYH JRDOV WKDW PHPEHUV PD\ SXUVXH 0HPEHUV /HJLVODWLYH *RDOV ,Q )HQQRnV f &RQJUHVVLRQDO VWXG\ KH IRXQG PHPEHUVn LQGLYLGXDO OHJLVODWLYH JRDOV FDQ EH VXPPDUL]HG LQWR WKUHH PDMRU DUHDV f JHWWLQJ UHHOHFWHG ZKLFK LV QHFHVVDU\ WR DFKLHYLQJ DQ\ RWKHU JRDOf f EXLOGLQJ SHUVRQDO LQIOXHQFH WKURXJK WDNLQJ FUHGLW IRU DFFRPSOLVKPHQWV DQG DGYHUWLVLQJ WKHLU QDPH DQG f PDNLQJ JRRG SXEOLF SROLF\ 7KLV UHVHDUFK ZLOO H[DPLQH WKH UHODWLYH LPSRUWDQFH VWDWH OHJLVODWRUV DVVLJQ WR VSHFLILF DVSHFWV RI WKHLU FOLHQWHOH SHUVRQDO DQG UHSUHVHQWDWLRQDO UROHVf ,W DOVR H[DPLQHV SROLWLFDO LQIOXHQFHV DQG FDPSDLJQ VXSSRUWf IURP VRFLDO SURIHVVLRQDO QRQSDUWLVDQ SROLWLFDO DQG RFFXSDWLRQDO JURXS PHPEHUVKLSV RQ OHJLVODWRUV &RPSRQHQWV RI 6WDWH /HJLVODWLYH 5HSUHVHQWDWLRQ ,Q KLV FRPSDUDWLYH FDVH VWXG\ RI QLQH VWDWH OHJLVODWXUHV -HZHOO f H[DPLQHV WKH FRPSOH[ SURFHVV f0DOFRP -HZHOO FRQGXFWHG VHPLVWUXFWXUHG RSHQHQGHG LQWHUYLHZV RYHU QLQH PRQWKV 6HSWHPEHU WR -XQH f ZLWK VWDWH UHSUHVHQWDWLYHV IURP &$ &2 .< ,1 2+ 0$ 1& 71 DQG 7H[DV

PAGE 75

RI FROOHFWLYH LQVWLWXWLRQDO UHSUHVHQWDWLRQ IURP WKH OHJLVODWRUnV QRW WKH YRWHUVnf SHUVSHFWLYH +H DFFHSWV 3LWNLQnV FRQFHSW RI VXEVWDQWLYH DFWLQJ IRUf UHSUHVHQWDWLRQ DQG :HLVVEHUJnV DUJXPHQW WKDW FLWL]HQV DUH SUREDEO\ EHWWHU UHSUHVHQWHG E\ OHJLVODWLYH ERGLHV LQ D FROOHFWLYH VHQVH WKDQ WKH\ DUH E\ WKHLU LQGLYLGXDOf HOHFWHG OHJLVODWRU f -HZHOO LGHQWLILHV IRXU FRPSRQHQWV RI VWDWH OHJLVODWLYH UHSUHVHQWDWLRQ f FRPPXQLFDWLRQV ZLWK FRQVWLWXHQWV f SROLF\ UHVSRQVLYHQHVV f DOORFDWLRQ RI JRRGV VHUYLFHV DQG UHVRXUFHV IRU WKH OHJLVODWRUnV GLVWULFW DQG f FDVHZRUN RU SURYLGLQJ VHUYLFHV WR LQGLYLGXDO DQG JURXSV RI FRQVWLWXHQWV +H H[DPLQHV WKH LPSDFW RI LQGLYLGXDO OHJLVODWRUnV FKDUDFWHULVWLFV EDFNJURXQGV JRDOV DQG DWWLWXGHV OHJLVODWLYH GLVWULFW FKDUDFWHULVWLFV DQG VWDWH OHYHO GLIIHUHQFHV LQ OHJLVODWLYH V\VWHPV VXFK DV VHVVLRQ OHQJWK VWDIILQJ DQG VR RQ -HZHOO FRQFOXGHV VWDWH OHJLVODWRUV KDYH FRQVLGHUDEOH IUHHGRP SRZHU DQG LQGHSHQGHQFH WR FKRRVH WKHLU OHJLVODWLYH UROHV DQG SULRULWLHV 0DQ\ OHJLVODWRUV GHOLEHUDWHO\ LQFUHDVH WKHLU FRQVWLWXHQF\ VHUYLFH UROHV EHFDXVH WKH\ \LHOG D YDULHW\ RI ORZULVN SROLWLFDO EHQHILWV WR WKH OHJLVODWRU ZKLOH LQFUHDVLQJ ERWK WKH LQGLYLGXDOnV SROLWLFDO SRZHU DQG LQGHSHQGHQFH 3ROLWLFDO DGYDQWDJHV RI FRQVWLWXHQF\ VHUYLFHf LQFOXGH FODLPLQJf FUHGLW IRU EHQHILWV JDLQHGLQGLYLGXDO FRQVWLWXHQWV UHPHPEHU DVVLVWDQFH DQG

PAGE 76

WKHVH DFWLYLWLHV UDUHO\ LQVSLUH DQ\ RSSRVLWLRQ (IIHFWLYH FRQVWLWXHQF\ VHUYLFH FDQ KDYH DQRWKHU LPSRUWDQW SROLWLFDO DGYDQWDJH IRU WKH OHJLVODWRU LW HQDEOHV KLP RU KHUf WR WDNH JUHDWHU ULVNV RQ LVVXHVDQG WR EHFRPH LQYROYHG LQ FRQWURYHUVLDO TXHVWLRQV f 7KH ,PSDFW RI *HQGHU RQ 6WDWH /HJLVODWRUVn $FWLYLWLHV DQG /HJLVODWLYH 3ULRULWLHV ,Q ZRPHQ KHOG RQO\ RU SHUFHQW RI DOO VWDWH OHJLVODWLYH VHDWV 6XUYH\ GDWD LQGLFDWH SHUFHQW RI WKHVH ZRPHQ IRFXVHG WKHLU PDMRU OHJLVODWLYH HIIRUWV RQ VRFLDO ZHOIDUH IDPLO\ OLIH JRYHUQPHQW SURFHVV DQG HGXFDWLRQ LVVXHV :HUQHU f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f KHDOWK SHUFHQWf DQG ZHOIDUH SHUFHQWf LVVXHV ZKLOH PDOH OHJLVODWRUV IRFXVHG SULPDULO\ RQ ILVFDO DIIDLUV 'LDPRQG f 0DOH OHJLVODWRUV ZHUH PRUH DVVHUWLYH VSRNH PRUH RIWHQ RQ WKH

PAGE 77

FKDPEHU IORRU DQG LQWURGXFHG PRUH OHJLVODWLRQ %XW IHPDOH OHJLVODWRUV ZHUH PRUH VXFFHVVIXO LQ JHWWLQJ WKHLU SULRULW\ OHJLVODWLRQ HQDFWHG )HPDOH OHJLVODWRUV ZHUH PRUH DGYHUVH WR EDUJDLQLQJ YRWH VZDSSLQJ WUDGLQJ YRWHV DQG LQIOXHQFH E\ OREE\LVW f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f 7KHUH ZDV QR VLJQLILFDQW JHQGHU GLIIHUHQFH LQ WLPH VSHQW RQ FDVHZRUN DVVLVWLQJ FRQVWLWXHQWVf ,Q FRPPLWWHH DVVLJQPHQWV VRPH FKDQJHV KDYH RFFXUUHG )HPDOH OHJLVODWRUV DUH VWLOO PRUH OLNHO\ WR FKDLU KHDOWK DQG ZHOIDUH FRPPLWWHHV EXW DUH QR ORQJHU PRUH OLNHO\ WKDQ PDOHV WR FKDLU HGXFDWLRQ FRPPLWWHHV $OWKRXJK ZRPHQ KDYH EHFRPH DV OLNHO\ DV WKHLU PDOH FROOHDJXHV WR EH PHPEHUV RI EXGJHW FRPPLWWHHV IHZ ZRPHQ FKDLU VXFK SRZHUIXO FRPPLWWHHV )HPDOH OHJLVODWRUV GR VSHQG VLJQLILFDQWO\ PRUH WLPH RQ OHJLVODWLYH DFWLYLWLHV $ VWXG\ RI &RORUDGR UHSUHVHQWDWLYHV IRXQG IHPDOH OHJLVODWRUV VRXJKW RXW PRUH

PAGE 78

GLYHUVH VRXUFHV RI LQIRUPDWLRQ RQ OHJLVODWLYH LVVXHV .DWKOHQH f &ULPH OHJLVODWLRQ SURSRVHG E\ WKHVH ZRPHQ ZDV PRUH FRPSUHKHQVLYH DQG IURP D FRQWH[WXDO YLHZSRLQW ZKLOH FULPH OHJLVODWLRQ SURSRVHG E\ PDOHV KDG D PRUH LQVWUXPHQWDO DSSURDFK DQG LQFUHPHQWDO FRQWHQW .DWKOHQH f :RPHQ FRQWLQXH WR VSRQVRU VOLJKWO\ PRUH OHJLVODWLRQ GHDOLQJ ZLWK FKLOGUHQ DQG IDPLOLHV 6LJQLILFDQW JHQGHU GLIIHUHQFHV FRQWLQXH LQ OHJLVODWLYH SULRULWLHV :RPHQ OHJLVODWRUVf DV HYLGHQFHG E\ WKHLU VHOIDVVHVVHG SULRULW\ OHJLVODWLRQ FRPPLWWHH DVVLJQPHQWV DQG WKHLU SURXGHVW DFFRPSOLVKPHQW JDYH PRUH SULRULW\ WR LVVXHV UHODWLQJ WR ZRPHQ FKLOGUHQ DQG IDPLOLHV 0DOH OHJLVODWRUV ZHUH PRUH OLNHO\ WR IRFXV RQ LVVXHV RI EXVLQHVV DQG FRPPHUFH f $ PDMRULW\ RI IHPDOH SHUFHQWf DQG PDOH OHJLVODWRUV SHUFHQWf LQ D WZRVWDWH VWXG\ EHOLHYH WKHUH LV DQ LGHQWLILDEOH ZRPHQnV SROLWLFDO LVVXH DJHQGD LQFOXGLQJ LVVXHV DIIHFWLQJ FKLOGUHQ WKH HQYLURQPHQW HGXFDWLRQ GRPHVWLF YLROHQFH DQG JHQGHU GLVFULPLQDWLRQ 5HLQJROG f 5HJLRQDO GLIIHUHQFHV DV D SUR[\ IRU VRFLDO WUDGLWLRQ DQG SROLWLFDO FXOWXUH KDYH VLJQLILFDQW LPSDFWV RQ WKH OHJLVODWLYH SULRULWLHV RI IHPDOH OHJLVODWRUV 1HDUO\ SHUFHQW RI VRXWKHUQ OHJLVODWLYH ZRPHQ DV RSSRVHG WR SHUFHQW RI QRQVRXWKHUQ IHPDOH OHJLVODWRUV UHSRUWHG WKHLU

PAGE 79

OHJLVODWLYH SULRULWLHV ZHUH ZRPHQ FKLOGUHQ DQG IDPLO\ LVVXHV 'RODQ DQG )RUG f 0LQRULW\ 3ROLWLFDO 3DUWLFLSDWLRQ 7KHRU\ 7KH WUDQVLWLRQ RI IHPDOH OHJLVODWRUV IURP GHVFULSWLYH DQG V\PEROLF UHSUHVHQWDWLRQ WR DFWLQJ IRU LQ VXEVWDQWLYH UHSUHVHQWDWLRQ UROHV KDV SURJUHVVHG DV WKH QXPEHU RI ZRPHQ DQG PRUH LPSRUWDQWO\ WKH UDWLR RI ZRPHQ LQ OHJLVODWLYH FKDPEHUV KDV LQFUHDVHG 7KLV LV FRQVLVWHQW ZLWK PLQRULW\ JURXS WKHRU\ UHVHDUFK RQ JHQGHU SURSRUWLRQV LQ IDFH WR IDFH JURXS LQWHUDFWLRQV .DQWHU f )RXU JURXS W\SHV EDVHG RQ WKH SURSRUWLRQ RI GLYHUVLW\ DUH LGHQWLILHG 7KHVH LQFOXGH f XQLIRUP JURXSV f VNHZHG JURXSV f WLOWHG JURXSV DQG f EDODQFHG JURXSV 8QLIRUP JURXSV DUH KRPRJHQHRXV DOO PHPEHUV EHORQJ WR WKH VDPH VDOLHQW VWDWXV VLQJOH JHQGHU HWKQLFLW\f 6NHZHG *URXSV DQG 7RNHQV 6NHZHG JURXSV KDYH UDWLRV RI SHUFHQW DQG XS GRPLQDQW WUDLW PHPEHUV ZLWK QR PRUH WKDQ SHUFHQW RI WKH PHPEHUV EHLQJ GLIIHUHQW DQG EHORQJLQJ WR WKH QRQGRPLQDQW RU WRNHQ JURXS 7RNHQ PHPEHUV DUH RIWHQ WUHDWHG DV UHSUHVHQWDWLYHV RI WKHLU FDWHJRU\ DV V\PEROV UDWKHU WKDQ LQGLYLGXDOV EDVHG RQ WKHLU FROOHFWLYH DVFULEHG FKDUDFWHULVWLFV f $W WKH WKDW RI WKLV UHVHDUFK f IHPDOH OHJLVODWRUV KHOG IHZHU WKDQ SHUFHQW RI WKH

PAGE 80

OHJLVODWLYH VHDWV QRW XQWLO GLG ZRPHQ H[FHHG WKH SHUFHQW UDWLR QDWLRQDOO\ 7RNHQ VWDWXV DIIHFWV LQWHUSHUVRQDO EHKDYLRU E\ LQFUHDVLQJ LQGLYLGXDO YLVLELOLW\ SRODUL]LQJ RU H[DJJHUDWLQJ VDOLHQW GLIIHUHQFHV RU E\ DVVLPLODWLRQ LQYROYLQJ VWHUHRW\SLQJ WKH SHUVRQnV VRFLDO UDFLDO RU JHQGHU W\SH 7LOWHG *URXS '\QDPLFV $V WKH UDWLR RI PLQRULW\ PHPEHUV LQFUHDVHV EH\RQG WRNHQ VWDWXV IURP WR SHUFHQW JURXSV EHFRPH WLOWHG ,Q WKHVH JURXSV PLQRULW\ PHPEHUV DUH RIWHQ DEOH WR PDNH QRQn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f :DVKLQJWRQ bf 1HYDGD bf &RORUDGR bf $UL]RQD DQG 9HUPRQW

PAGE 81

OHJLVODWRUV LQFUHDVHV WR PRUH WKDQ SHUFHQW LQ D IHZ VWDWHV JHQGHU JURXSV ZLOO EHFRPH EDODQFHGf 6RFLRORJLFDO UHVHDUFK LQGLFDWHV LQ EDODQFHG RUJDQL]DWLRQV ERWK WKH PLQRULW\ DQG PDMRULW\ JURXSV HDFK EHFRPH LQWHUQDOO\ PRUH GLYHUVH ZLWK LQGLYLGXDOV KDYLQJ GLIIHUHQW UROHV DQG DELOLWLHV .DQWHU f $IULFDQ$PHULFDQ :RPHQ LQ 6WDWH /HJLVODWXUHV 7KH UDWLR RI $IULFDQ$PHULFDQ IHPDOHV FRPSDUHG WR $IULFDQ$PHULFDQ PHQ LQ VWDWH OHJLVODWXUHV LV JUHDWHU WKDQ WKH UDWLR RI &DXFDVLDQ IHPDOH OHJLVODWRUV WR &DXFDVLDQ PHQ 6FKRODUV KDYH K\SRWKHVL]HG WKLV LV GXH WR WKH SROLWLFL]DWLRQ RI EODFN ZRPHQ LQ WKH FLYLO ULJKWV PRYHPHQW 'DUF\ DQG +DGOH\ f ,W PD\ DOVR EH GXH WR WKH FUHDWLRQ RI UDFLDO PLQRULW\ DFFHVV PDMRULW\ EODFNf OHJLVODWLYH GLVWULFWV XQGHU WKH 9RWLQJ 5LJKWV $FW 0RQFULHI 7KRPSVRQ DQG 6FKXKPDQQ f (VSHFLDOO\ LQ WKH VRXWK WKH WLH EHWZHHQ UHGLVWULFWLQJ DQG LQFUHDVHV LQ EODFN UHSUHVHQWDWLRQ LQ VWDWH OHJLVODWXUHV LV YHU\ VWURQJ ,Q WKH SDVW \HDUV WKHUH KDV QHYHU EHHQ D VLQJOH GHFOLQH LQ WKH QXPEHU RI $IULFDQ$PHULFDQ VWDWH KRXVH PHPEHUV LQ VL[ RI WKH VRXWKHUQ VWDWHV %XOORFN f b HDFKf 1HZ +DPSVKLUH bf 2UHJRQ bf 0DU\ODQG bf .DQVDV bf DQG ,GDKR bf )LJXUHV DUH IURP WKH &HQWHU IRU WKH $PHULFD :RPDQ DQG 3ROLWLFV &$:3f :RPHQ ,Q 6WDWH /HJLVODWXUHV )DFW 6KHHW

PAGE 82

,Q WKHUH ZHUH ZRPHQ RI FRORU LQ VWDWH OHJLVODWXUHV VHQDWRUV DQG c/ UHSUHVHQWDWLYHV 7KLV LQFOXGHV $IULFDQ$PHULFDQ ZRPHQ $VLDQ $PHULFDQ3DFLILF ,VODQGHU ZRPHQ /DWLQDV DQG HLJKW 1DWLYH $PHULFDQ ZRPHQ 0RVW RI WKHVH OHJLVODWRUV DUH 'HPRFUDWV 'HPRFUDWV 5HSXEOLFDQV DQG ,QGHSHQGHQWVf $ DQDO\VLV RI $IULFDQ$PHULFDQ IHPDOH OHJLVODWRUV IURP HOHYHQ VWDWHV IRXQG WKDW D PXFK KLJKHU SURSRUWLRQ RI EODFN ZRPHQ KHOG KLJK SUHVWLJH MREV SHUFHQWf WKDQ GLG WKHLU &DXFDVLDQ IHPDOH FRXQWHUSDUWV SHUFHQWf 0RUH $IULFDQ$PHULFDQ IHPDOH OHJLVODWRUV KHOG DGYDQFHG JUDGXDWH GHJUHHV SHUFHQWf WKDQ DQ\ RWKHU UDFLDO RU JHQGHU JURXS RI OHJLVODWRUV 0RQFULHI 7KRPSVRQ DQG 6FKXKPDQQ f ,Q -DQXDU\ $IULFDQ$PHULFDQ ZRPHQ KHOG VWDWH OHJLVODWLYH VHDWV 6XUYH\ UHVXOWV LQGLFDWH WKH OHJLVODWLYH SULRULWLHV RI $IULFDQ$PHULFDQ ZRPHQ KDYH D XQLTXH K\EULG RI JHQGHU DQG UDFLDOHFRQRPLF FRQFHUQV %ODFN ZRPHQ OHJLVODWRUV ZKR DUH DOPRVW H[FOXVLYHO\ 'HPRFUDWVf DUH VWURQJ VXSSRUWHUV RI SURZRPHQ SROLF\ LVVXHV OLNH WKHLU &DXFDVLDQ IHPDOH 'HPRFUDWLF FROOHDJXHV DQG VROLG $IULFDQ$PHULFDQ IHPDOHV VHUYH LQ VWDWHV $VLDQ $PHULFDQ3DFLILF ,VODQGHU ZRPHQ LQ WKUHH VWDWHV +, 25 DQG :$f /DWLQDV VHUYH LQ VWDWHV $= &$ &2 &7 ,1 01 1+ 10 1< 7; 87 DQG :$f DQG 1DWLYH $PHULFDQ ZRPHQ VHUYH LQ ILYH VWDWHV $. *$ 07 10 DQG :
PAGE 83

VXSSRUWHUVf RI PLQRULW\WDUJHWHG SROLFLHV %DUUHWW f 2YHUDOO $IULFDQ$PHULFDQ IHPDOH OHJLVODWRUVn SROLF\ SULRULWLHV DUH PRUH VLPLODU WR WKRVH RI WKHLU PDOH UDFLDO FRXQWHUSDUWV WKDQ WR WKRVH RI &DXFDVLDQ IHPDOHV $IULFDQ $PHULFDQ ZRPHQnV OHJLVODWLYH SULRULWLHV DUH HGXFDWLRQ KHDOWK FDUH UHIRUP HFRQRPLF GHYHORSPHQW DQG LQFUHDVHG HPSOR\PHQW RSSRUWXQLWLHV 2QH YHKLFOH $IULFDQ$PHULFDQ OHJLVODWRUV KDYH VXFFHVVIXOO\ XVHG WR PD[LPL]H WKHLU SROLF\ LQIOXHQFH DQG WUDQVODWH WKHLU VPDOO QXPHULF PLQRULW\ LQWR VXEVWDQWLYH OHJLVODWLYH SROLF\ KDV EHHQ %ODFN /HJLVODWLYH &DXFXVHV 1LQH RI HOHYHQ VRXWKHUQ VWDWHV DQG RI WKH VWDWHV ZLWK HOHFWHG EODFN OHJLVODWRUV KDYH VXFK FDXFXVHV PRVW GDWLQJ EDFN WR WKH V 0LOOHU f 6XEVWDQWLYH OHJLVODWLYH SULRULWLHV RI WKHVH FDXFXVHV SULPDULO\ EHQHILFLDO WR EODFNV LQFOXGH f PLQRULW\ HFRQRPLF GHYHORSPHQW f LQFUHDVLQJ EODFN DSSRLQWHG DQG HOHFWHG RIILFLDOV f HQKDQFLQJ KLVWRULFDOO\ EODFN FROOHJHV f FULPLQDO MXVWLFH UHIRUPV DQG f LQFUHDVHG KXPDQ VHUYLFHV f 5DQWHUnV f WKHRU\ RI WLOWHG JURXS EHKDYLRU VXJJHVWV JHQGHU LQWHUDFWLRQV DQG JURXS EHKDYLRU ZLOO EH FKDUDFWHUL]HG E\ PRUH LQWUDJURXS GLYHUVLW\ 5DFLDO DQG HWKQLF GLIIHUHQFHV EHWZHHQ ZRPHQ VXJJHVW GLIIHULQJ OHJLVODWLYH SULRULWLHV DQG JRDOV 7KLV UHVHDUFK DQWLFLSDWHV ILQGLQJ LQFUHDVHG GLYHUVLW\ DQG KHWHURJHQHLW\ DPRQJ IHPDOH

PAGE 84

OHJLVODWRUV EDVHG RQ HWKQLF UDFLDO LGHRORJLFDO DQG SDUWLVDQ GLIIHUHQFHV )HPLQLVW 3ROLWLFDO 7KHRU\ 6FKRODUO\ ZRUNV RQ JHQGHU LVVXHV LQ SROLWLFDO VFLHQFH KDYH EHHQ VWURQJO\ LQIOXHQFHG E\ WKUHH PDMRU IDFWRUV 7KH ILUVW LQIOXHQFH LV WKH VHFRQG ZDYH RI 6 OLEHUDO IHPLQLVP GXULQJ WKH V DQG V :RPHQnV 0RYHPHQW 6HFRQG LV WKH H[SDQVLRQ RI DFDGHPLF LQWHUGLVFLSOLQDU\ UHVHDUFK OLQNHG WR WKH GHYHORSPHQW RI ZRPHQn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f

PAGE 85

$ VHFRQG FULWLTXH FKDOOHQJHV PDQ\ RI WKH WUDGLWLRQDO TXDQWLWDWLYH PHWKRGV DQG DVVXPSWLRQV RI SROLWLFDO DQDO\VLV ZKLFK IRFXV PRVWO\ RQ RXWFRPHV DQG OHVV RQ SURFHVV 2QH IXQGDPHQWDO DVVXPSWLRQ XQGHU VLHJH LV WKH VXSSRVHG JHQGHU EDVHG GLFKRWRP\ EHWZHHQ WKH IHPDOH SULYDWH GRPHVWLFf VSKHUH DQG WKH PDOH SXEOLF RU SROLWLFDO VSKHUH $V SROLF\ DQDO\VLV LQFUHDVLQJO\ H[DPLQHV WKH LQWHUUHODWLRQVKLS DPRQJ HFRQRP\ IDPLO\ DQG VWDWH DQG SROLWLFDO SROLFLHV RUJDQL]LQJ IDPLO\ OLIH DQG VH[XDOLW\ WKH SHUVRQDO KDV EHFRPH SROLWLFDO DV WKH WZR PHUJH $FNHOVEHUJ DQG 'LDPRQG f $OWKRXJK VH[ KDV EHHQ RQH DPRQJ PDQ\ FRQWURO YDULDEOHV LQ SROLWLFDO UHVHDUFK IHPLQLVW VFKRODUV DUJXH WKDW JHQGHU VKRXOG EHFRPH D FDWHJRU\ RI DQDO\VLV WKDW SXWV WKH SHUVSHFWLYH RI ZRPHQ DQG ZRPHQnV H[SHULHQFHV DW WKH FHQWHU RI WKHLU DQDO\VLV &DUUROO DQG =HULOOL f 7KH WKLUG PDMRU IHPLQLVW FULWLTXH RI SROLWLFDO VFLHQFH LV LWV IDLOXUH WR UHFRQFLOH WKH LQFOXVLRQ RI ZRPHQ LQWR WUDGLWLRQDO PHWKRGV FRQFHSWV DQG IUDPHZRUNV )HPLQLVW WKHRULVWV DUJXH LW LV QHFHVVDU\ WR WUDQVIRUP ERWK LQVWLWXWLRQV DQG VSHHFK DQG WR LQFRUSRUDWH LQWR RXU PRGHOV QHZ ZD\V RI UHODWLQJ WKRXJKW DQG HPRWLRQ UHDVRQ DQG H[SHULHQFH $FNHOVEHUJ DQG 'LDPRQG f $ VRFLROROLQJXLVWLF PHWKRG DGYRFDWHG LV QDWXUDO ODQJXDJH GLVFRXUVH DQDO\VLV DQG TXDOLWDWLYH PHWKRGV ZKLFK SHUPLW ZRPHQ WR VSHDN RI WKHLU H[SHULHQFHV LQ WKHLU RZQ YRLFH DQG FRQWH[W

PAGE 86

&DURO *LOOLJDQnV 'LIIHUHQW 9RLFH 6HYHUDO FRQFHSWV GHYHORSHG E\ &DURO *LOOLJDQ f LQ FULWLTXH RI /DZUHQFH .RKOEHUJnV KLHUDUFKLFDO PDOH PRGHO RI KXPDQ PRUDO GHYHORSPHQW IRUP D IRXQGDWLRQ IRU PXFK WKLUG JHQHUDWLRQ IHPLQLVW SROLWLFDO WKHRU\ %XW *LOOLJDQnV PHWKRGRORJ\ KDV EHHQ KLJKO\ FULWLFL]HG E\ IHPLQLVW WKHRULVWV IRU LWV H[FOXVLYHO\ &DXFDVLDQ XSSHUPLGGOH FODVV ELDV DQG IRU UHSOLFDWLQJ PXFK RI .RKOEHUJnV ORJLF *LOOLJDQ IRXQG ZRPHQnV PRUDOLW\ EDVHG RQ DQ HWKLF RI FDUH QXUWXUDQFH DQG VXVWDLQLQJ UHODWLRQVKLSV GHYHORSV IURP ZRPHQnV VXEMHFWLYH H[SHULHQFHV RI GDLO\ OLYLQJ 6KH DUJXHG WKLV GLIIHUHG IURP PHQnV PRUH REMHFWLYH PRUDO GHYHORSPHQW ZKLFK LV EDVHG SULPDULO\ RQ WKH YDOXHV RI MXVWLFH DQG ULJKWV ,ULV
PAGE 87

LQVWLWXWLRQDO GRPLQDWLRQ DQG JURXS RSSUHVVLRQ EDVHG RQ VRFLDO JURXS GLIIHUHQFH 6KH FDOOV IRU D WKHRU\ RI MXVWLFH DQG SROLWLFV WKDW UHVSHFWV DQG UHFRJQL]HV JURXS GLIIHUHQFH
PAGE 88

FDUH DQG PRUDOLW\ FDQ VXSSOHPHQW RXU FXUUHQW SROLWLFDO IRFXV RQ MXVWLFH DQG ULJKWV 7URQWR DUJXHV DQG DJUHH WKDW LQ RUGHU IRU DOO SHRSOH PHQ DQG ZRPHQ DOLNH WR EH IXOO\ KXPDQ LW LV QHFHVVDU\ WKDW DOO SRVVHVV ERWK WKH RULHQWDWLRQV RI MXVWLFH DQG *LOOLJDQnV HWKLF RI FDUH E f 6KH EHOLHYHV WKH FRQFHSW RI FDUH LQ WKH VHQVH RI WDNLQJ FDUH RI VRPHRQH RU VRPHWKLQJ LQ ERWK SULYDWH DQG SXEOLF OLIH FDQ EH WKH EDVLV IRU UHWKLQNLQJ PRUDO ERXQGDULHV DQG WKH WHUUDLQ RI FXUUHQW PRUDO DQG SROLWLFDO OLIH E f ,Q WKLV UHVHDUFK WKH HWKLF RI FDUH RU FDULQJ DERXW LV HPERGLHG LQ WKH ZRPHQnV SROLF\ DJHQGD LQ SROLF\ DUHDV DV GLYHUVH DQG FKLOG FDUH GRPHVWLF YLROHQFH HQYLURQPHQWDO SURWHFWLRQ DQG JRYHUQPHQW HWKLFV UHIRUP 7URQWR FRQFOXGHV FDUH LV D FHQWUDO FRQFHUQ RI KXPDQ OLIH ,W LV WLPH ZH EHJDQ WR FKDQJH RXU SROLWLFDO DQG VRFLDO LQVWLWXWLRQV WR UHIOHFW WKLV WUXWK E f &RQFHSWV DQG 0RGHOV 8VHG LQ WKLV 5HVHDUFK 7R VWXG\ WKH UHODWLRQVKLS EHWZHHQ IHPLQLVP VXSSRUW IRU ZRPHQnV LVVXHV DQG SROLF\ SULRULWLHV 'RODQ DQG )RUG f DVNHG IHPDOH OHJLVODWRUV WR LGHQWLI\ DQG UDQN WKHPVHOYHV DV QRQIHPLQLVWV ZHDN IHPLQLVWV RU VWURQJ IHPLQLVWV 7KLV PHDVXUH PD\ KDYH VHYHUDO YDOLGLW\ SUREOHPV 7KHUH DUH PDQ\

PAGE 89

IHPLQLVPV ZLWK GLYHUVH SROLWLFDO LGHRORJLHV DQG LQWHUHVWV (YHQ LI ZH DVVXPH HDFK IHPDOH OHJLVODWRU UHVSRQGLQJ LQWHUSUHWHG WKH TXHVWLRQ WR PHDVXUH OLEHUDO IHPLQLVP FKDUDFWHULVWLF RI WKH VHFRQG ZDYH RI 86 IHPLQLVPf WKLV DORQH GRHV QRW LQGLFDWH ZKDW OHYHO RI SROLWLFDO DFWLRQV VKH PD\ WDNH DV D UHVXOW RI KHU VHOILGHQWLILFDWLRQ $ QDWLRQZLGH VXUYH\ RI VWDWH OHJLVODWRUV VXJJHVWV RQH UHDVRQ ZRPHQ UHJDUGOHVV RI ZKHWKHU WKH\ LGHQWLI\ WKHPVHOYHV DV IHPLQLVW PD\ EH PRUH VXSSRUWLYH RI IHPLQLVW SROLFLHV WKDQ PHQ LV WKDW ZRPHQ PRUH FRPPRQO\ H[SHULHQFH JHQGHUEDVHG GLVFULPLQDWLRQ 'RGVRQ f 7KLV K\SRWKHVLV LV FRQVLVWHQW ZLWK LQWHUYLHZ ILQGLQJV DPRQJ &RORUDGR DQG $UL]RQD OHJLVODWRUV WKDW IHPDOH OHJLVODWRUV ZHUH PXFK PRUH OLNHO\ WR PHQWLRQ UHSUHVHQWLQJ ZRPHQ ZKHWKHU LQWHQWLRQDOO\ RU XQLQWHQWLRQDOO\ H[SOLFLWO\ RU LPSOLFLWO\ 5HLQJROG f ,Q WKLV UHVHDUFK ERWK DWWLWXGLQDO DQG EHKDYLRUDO IHPLQLVP DUH PHDVXUHG WKH GLVWLQFWLRQ EHWZHHQ WKHP LV LPSRUWDQW /HJLVODWRUV PD\ QRW SXEOLFO\ DFNQRZOHGJH QRU SULYDWHO\ UHFRJQL]H DQG ODEHO WKHLU VXSSRUW IRU ZRPHQnV LVVXHV DV IHPLQLVW 7KLV PD\ EH SDUWLFXODUO\ WUXH IRU OHJLVODWRUV XQDIILOLDWHG ZLWK IHPLQLVW RUJDQL]DWLRQV RU ZKR f0DMRU ZRUOG IHPLQLVPV LQFOXGH EXW DUH QRW OLPLWHG WR OLEHUDO IHPLQLVP WKH PRVW GRPLQDQW IHPLQLVP LQ WKH 8QLWHG 6WDWHVf FODVVLFDO 0DU[LVW IHPLQLVP VRFLDOLVW IHPLQLVP ERWK EXLOW RQ FODVV FRQVFLRXVQHVV DQG LQWHUFODVV VWUXJJOHf SRVWn PRGHUQ OLEHUDO IHPLQLVP UDGLFDO IHPLQLVP DQG OHVELDQ VHSDUDWLVP

PAGE 90

PD\ GLVDJUHH ZLWK RQH RU PRUH PDMRU SROLF\ SRVLWLRQV RI QDWLRQDO ZRPHQnV JURXSV 2WKHUV PD\ LQFOXGH PDQ\ 5HSXEOLFDQ IHPDOH OHJLVODWRUV ZKRVH SHUVRQDO YLHZV RQ VRPH ZRPHQnV LVVXHV LQFOXGLQJ UHSURGXFWLYH LVVXHV FRQIOLFW ZLWK WKHLU QDWLRQDO SROLWLFDO SDUW\ SODWIRUP 9HU\ GHVFULSWLYHO\ WKLV XQDFNQRZOHGJHG DGYRFDF\ IRU WKH LQWHUHVWV RI ZRPHQnV LQFUHDVHG HTXDOLW\ KDV EHHQ QDPHG WKH FORVHW IHPLQLVW V\QGURPH &DUUROO f 7KLV WHUP LV XQIRUWXQDWH LQVWHDG RI EHLQJ LQFOXVLYH RI WKRVH ZKR VXSSRUW SROLFLHV EHQHILFLDO IRU ZRPHQ LW GLYLGHV DQG LVRODWHV WKHP ,W LQYRNHV WKH YHU\ LPDJHV DQG KRPRSKRELDf ZKLFK PD\ KDYH RULJLQDOO\ GLVWDQFHG RU DOLHQDWHG RWKHUZLVH VXSSRUWLYH DOOLHV RQ PDQ\ ZRPHQnV SROLF\ LVVXHV IURP WKH IHPLQLVW ODEHO (YHQ ZRPHQ VWDWH OHJLVODWRUVf ZKR UHMHFW WKH IHPLQLVW ODEHO DUH PRUH OLNHO\ WR VXSSRUW IHPLQLVW SROLFLHV WKDQ PHQ ZKR GR QRW FRQVLGHU WKHPVHOYHV IHPLQLVW 'RGVRQ f ,W LV JHQGHU GLIIHUHQFHV LQ WKH DFWLQJ IRU RU WKH EHKDYLRUDO FRPSRQHQW RI UHSUHVHQWDWLRQ RQ ZRPHQnV DQG RWKHU LVVXHV WKLV GLVVHUWDWLRQ VHHNV WR PHDVXUH DQG H[SODLQ 7ZR FORVHO\ UHODWHG EXW FRQFHSWXDOO\ GLIIHUHQW LQGLFHV D ZRPHQnV SROLF\ LQGH[ DQG D IHPLQLVW SROLF\ LQGH[ DUH LPSRUWDQW LQGHSHQGHQW YDULDEOHV LQ WKLV UHVHDUFK

PAGE 91

7UDGLWLRQDO :RPHQnV 3ROLF\ ,QGH[ 7KH ZRPHQnV SROLF\ LQGH[ IRFXVHV RQ DUHDV ZKLFK KDYH EHHQ RI WUDGLWLRQDO FRQFHUQ WR ZRPHQ EDVHG ODUJHO\ RQ GRPHVWLF RU KRPH SROLF\ :HUQHU f UHVSRQVLELOLWLHV ,W GHDOV ZLWK SXEOLF SROLFLHV WKDW LPSLQJH SULPDULO\ RQ WKH SULYDWH VSKHUH RI VRFLDO OLIH YDOXHV DVVRFLDWHG ZLWK FKLOGUHQ DQG QXUWXUDQFH 6DSLUR f RU RFFXSDWLRQDO UROHV FRQVLVWHQW ZLWK ZRPHQnV VRFLDO UROH VXFK DV QXUVH WHDFKHU RU VRFLDO ZRUNHU :HUQHU f 7KHVH SROLF\ DUHDV LQFOXGH EXW DUH QRW OLPLWHG WR FKLOGUHQnV LVVXHV HGXFDWLRQ IDPLO\ KHDOWK FDUH SXEOLF KHDOWK DQG VRFLDO ZHOIDUH )HPLQLVW 3ROLF\ ,QGH[ $ IHPLQLVW SROLF\ LQGH[ LV GHILQHG E\ WKH JRDO RU GLUHFWLRQ RI SXEOLF SROLF\ SURPRWLQJ HTXDOLW\ IRU RU LPSURYLQJ WKH VRFLDO SROLWLFDO HFRQRPLF HGXFDWLRQDOf VWDWXV RI ZRPHQ 6DLQW*HUPDLQ f 7KH IHPLQLVW SROLF\ LQGH[ GHYHORSHG LQ WKLV UHVHDUFK KDV LWV FRQFHSWXDO URRWV LQ 0H]H\nV IHPLQLVP LQGH[ XVHG LQ D VWXG\ RI ORFDO JRYHUQPHQW UHSUHVHQWDWLYHV LQ &RQQHFWLFXW D f DQG KHU LQGLFHV RI IHPLQLVW VXSSRUW IRU ZRPHQnV LVVXHV LQ D FDVH VWXG\ RI +DZDLLDQ VWDWH OHJLVODWRUV E f 0H]H\nV +DZDLL ILQGLQJV ZHUH PL[HG DQG IDLOHG WR VXSSRUW KHU K\SRWKHVLV WZHQW\ \HDUV DJR 6KH GLG ILQG IHPDOH OHJLVODWRUV ZHUH VWURQJHU DGYRFDWHV RI IHPLQLVW SRVLWLRQV

PAGE 92

EXW ZRPHQ GLG QRW GLIIHU LQ SROLF\ SRVLWLRQV VXEVWDQWLYH UHSUHVHQWDWLRQf IURP WKHLU PDOH FROOHDJXHV 7KHVH ILQGLQJV ZHUH FRQVLVWHQW ZLWK RWKHU V VWXGLHV ZKHQ ZRPHQ KHOG RU RQO\ SHUFHQW RI DOO VWDWH OHJLVODWLYH VHDWV $ QDWLRQZLGH WHOHSKRQH VXUYH\ RI VWDWH OHJLVODWRUV XVHG D IHPLQLVW SROLF\ LQGH[ RI WKUHH LVVXHV f VXSSRUW IRU WKH (TXDO 5LJKWV $PHQGPHQW f RSSRVLWLRQ WR SDUHQWDO FRQVHQW IRU MXYHQLOHV VHHNLQJ DQ DERUWLRQ DQG f RSSRVLWLRQ WR SURKLELWLQJ DERUWLRQ 'RGVRQ f 7KLV VWXG\ IRXQG ERWK JHQGHU DQG SDUWLVDQVKLS VWURQJO\ LQIOXHQFHG VXSSRUW IRU IHPLQLVW LVVXHV 6HOI ODEHOHG IHPLQLVWV DPRQJ ERWK ZRPHQ DQG PHQ ZHUH PRUH OLNHO\ WKDQ QRQIHPLQLVW ZRPHQ WR VFRUH KLJK RQ WKH IHPLQLVW SROLF\ LQGH[ f 'HPRFUDWLF ZRPHQ ZHUH PRVW VXSSRUWLYH RI IHPLQLVW LVVXHV DV GHILQHG LQ WKLV LQGH[ ZLWK WKUHH OHJLVODWRUV LQ ILYH UDQNLQJ KLJK PRUH IHPLQLVWf $QRWKHU VLJQLILFDQW ILQGLQJ LQ WKDW UHVHDUFK ZDV WKH HTXDO EXW ORZHU OHYHOV RI VXSSRUW DPRQJ 5HSXEOLFDQ ZRPHQ DQG 'HPRFUDWLF PHQ IRU IHPLQLVW LVVXHV 2QH WKLUG RI HDFK JURXS UDQNHG KLJK RQ WKH LQGH[ %XW 5HSXEOLFDQ PDOHV ZHUH IDU OHVV VXSSRUWLYH ZLWK IHZHU WKDQ WHQ SHUFHQW LQGLFDWLQJ KLJK OHYHOV RI VXSSRUW IRU IHPLQLVW LVVXHV 7KHUH DUH VHYHUDO SUREOHPV ZLWK XVLQJ WKLV SROLF\ LQGH[ WRGD\ 7KH WZR DERUWLRQ UHODWHG SROLF\ LVVXHV PD\ PHDVXUH D VLQJOH SROLF\ RSLQLRQRQH DUJXDEO\ VWURQJO\ LQIOXHQFHG E\

PAGE 93

VSHFLILF UHOLJLRXV EHOLHIV KHOG E\ YDULRXV GHQRPLQDWLRQV D YDULDEOH QRW PHDVXUHG LQ WKLV VWXG\f 7KH RWKHU OLPLWDWLRQ RI WKLV LQGH[ LV WKH GDWHGQHVV RI WKH (TXDO 5LJKWV $PHQGPHQW TXHVWLRQ ZKLFK QR ORQJHU DSSHDUV WR EH D VDOLHQW LVVXH HVSHFLDOO\ DPRQJ \RXQJHU $PHULFDQV ZDV VWURQJO\ UHPLQGHG RI WKLV ZKHQ RQO\ WZR VWXGHQWV ERWK DGXOW OHDUQHUV RXW RI HQUROOHG LQ P\ XQGHUJUDGXDWH SROLWLFDO VFLHQFH FRXUVH FRXOG FRUUHFWO\ LGHQWLI\ WKH (5$ QRW DV D ODXQGU\ GHWHUJHQW RU D QDWLRQDO UHDO HVWDWH FRUSRUDWLRQ EXW WKH (TXDO 5LJKWV $PHQGPHQWf 5HSUHVHQWLQJ :RPHQnV &XOWXUH $QDO\VLV RI VWDWH OHJLVODWRUV IRXQG WKDW IHPDOH OHJLVODWRUV ZKR DUH LQYROYHG ZLWK DQG DFWLYH LQ ZRPHQnV RUJDQL]DWLRQV DUH PRVW DFWLYH LQ UHSUHVHQWLQJ ZRPHQnV FXOWXUH LQ WKHLU OHJLVODWLYH SULRULWLHV &DUUROO f :RPHQnV RUJDQL]DWLRQV ZLWKLQ WKH OHJLVODWXUH VXFK DV LQIRUPDO QHWZRUNV RUJDQL]HG ZRPHQVn OHJLVODWLYH FDXFXVHV DQG QDWLRQDO RUJDQL]DWLRQV IRU IHPDOH OHJLVODWRUV DOVR DSSHDU WR SURYLGH LPSRUWDQW OLQNDJHV EHWZHHQ HOHFWHG ZRPHQ DQG UHSUHVHQWLQJ LVVXHV RI SDUWLFXODU VRFLDO DQG HFRQRPLF FRQFHUQ WR ZRPHQ ,Q D VXUYH\ IHPDOH OHJLVODWRUV LQ &DOLIRUQLD DQG $UL]RQD FLWHG ZRPHQ DQG ZRPHQnV JURXSV DV WKH PRVW VXSSRUWLYH FRQVWLWXHQF\ JURXS IRU IHPDOH RIILFLDOV 5HLQJROG f

PAGE 94

7KH FRQFHSW RI ZRPHQnV FXOWXUH KDV MRLQW URRWV LQ QLQHWHHQWK FHQWXU\ KLVWRULFDO VWXGLHV DQG UDGLFDOFXOWXUDO IHPLQLVW WKHRU\ :RPHQnV FXOWXUH LV GHILQHG DVf WKH FRPPRQDOLW\ RI ZRPHQnV VKDUHG LQWHUHVWV YDOXHV SHUVSHFWLYHV DQG SDWWHUQV RI LQWHUDFWLRQ ZRPHQ VKDUH DV D UHVXOW RI WKH VRFLDOO\ FRQVWUXFWHG VH[XDO GLYLVLRQ RI ODERU LQ VRFLHW\ &DUUROO f 0DQ\ VSHFLILF SROLF\ DUHDV RI FRQFHUQ DUH LQFOXGHG VXFK DV FKLOGUHQnV LVVXHV SURWHFWLRQ FKLOG VXSSRUW GD\ FDUH IDPLO\ LVVXHV FDULQJ IRU HFRQRPLFDOO\ DQG GLVDGYDQWDJHG JURXSV UHSURGXFWLYH LVVXHV WHHQ SUHJQDQF\ SRYHUW\ DQG ZHOIDUH LVVXHV ZRPHQnV ULJKWV JHQGHU GLVFULPLQDWLRQ LQ HPSOR\PHQW HGXFDWLRQ KRXVLQJ DQG HQKDQFLQJ EXVLQHVV RSSRUWXQLWLHV IRU ZRPHQ DQG PLQRULWLHV 1HDUO\ WZRWKLUGV RI WKH IHPDOH OHJLVODWRUV VWXGLHG SHUFHQW RI VHQDWRUV DQG SHUFHQW RI UHSUHVHQWDWLYHVf KDG FORVH DQG DFWLYH WLHV WR ZRPHQnV RUJDQL]DWLRQV RXWVLGH WKH OHJLVODWXUH DQG WKUHH TXDUWHUV UHSRUWHG UHJXODUO\ DWWHQGLQJ DQG SDUWLFLSDWLQJ LQ ZRPHQnV FDXFXV RU QHWZRUN PHHWLQJV ZLWKLQ WKHLU OHJLVODWXUH &DUUROO f ,Q RQO\ WHQ VWDWHV UHSRUWHG KDYLQJ IRUPDO ZRPHQnV OHJLVODWLYH FDXFXVHV DV RI WKLV KDG LQFUHDVHG WR WZHQW\VL[ VWDWHV 7KLV UHVHDUFK IRFXVHV RQ JHQGHU GLIIHUHQFHV LQ OHJLVODWLYH SULRULWLHV QRW RQO\ RQ ZRPHQnV FXOWXUH LVVXHV EXW DFURVV WKH VSHFWUXP RI SROLF\ SULRULWLHV OLVWHG E\ VWDWH OHJLVODWRUV VHUYLQJ LQ ,W H[DPLQHV JHQGHU GLIIHUHQFHV

PAGE 95

LQ WKH VWUHQJWK RI OLQNDJHV EHWZHHQ OHJLVODWRUV DQG GLIIHUHQW RUJDQL]DWLRQV ZLWK WKHLU OHYHOV RI VXSSRUW LQ WKH OHJLVODWRUnV PRVW UHFHQW HOHFWRUDO FDPSDLJQ 2I WKH VWXGLHV UHYLHZHG KHUH WKRVH WKDW DUH PRVW VLJQLILFDQW DQG FORVHO\ UHODWHG WR WKLV FXUUHQW UHVHDUFK DUH &DUUROO f .DWKOHQH f 0H]H\ Ef 3LWNLQ f 5HLQJROG f DQG 7KRPDV f &KDSWHU IRXU ZLOO VSHFLI\ WKH K\SRWKHVHV RI WKLV UHVHDUFK GHILQH WKH YDULDEOHV XVHG LQ WKLV UHVHDUFK KRZ DQG ZK\ LQGHSHQGHQW YDULDEOH LQGLFHV ZHUH FUHDWHG DQG WKH GHWDLOHG SURFHGXUHV XVHG LQ FRQGXFWLQJ DQG DQDO\]LQJ GDWD IURP WKLV VHYHQPRQWK PDLO VXUYH\ VHQW WR VWDWH OHJLVODWRUV LQ WKH VWDWHV

PAGE 96

&+$37(5 0(7+2'2/2*< +<327+(6(6 $1' 0($685(6 7KLV UHVHDUFK XVHG D FURVVVHFWLRQDO VHOI DGPLQLVWHUHG 'LOOPDQVW\OH PDLO VXUYH\ QRQH[SHULPHQWDO UHVHDUFK GHVLJQ 3ULPDU\ GDWD ZHUH REWDLQHG IURP D RULJLQDO QDWLRQZLGH SROLF\ DWWLWXGH DQG OHJLVODWLYH EHKDYLRU VXUYH\ RI 86 VWDWH OHJLVODWRUV LQ WKH ILIW\ VWDWHV 7KH VXUYH\ LQVWUXPHQW ZDV SUHWHVWHG LQ PLG -XQH ZLWK WHQ )ORULGD OHJLVODWRUV $IWHU SHUVRQDO GHEULHILQJV DQG VXEVHTXHQW VXUYH\ UHYLVLRQV WKH LQVWUXPHQW ZDV PDLOHG WR VWDWH OHJLVODWRUV QDWLRQZLGH IURP -XO\ WKURXJK 1RYHPEHU 7KLV FKDSWHU ZLOO GLVFXVV LQ GHWDLO WKH UHVHDUFK SUREOHP K\SRWKHVHV SDUWLFLSDQW SRSXODWLRQ VDPSOLQJ SURFHGXUH VXUYH\ LQVWUXPHQW PHDVXUHV DQG GDWD FROOHFWLRQ SURFHGXUHV XVHG LQ WKLV UHVHDUFK 6WDWHPHQW RI 5HVHDUFK 3UREOHP 7KH SXUSRVH RI WKLV UHVHDUFK LV WR H[DPLQH ZKHWKHU LQFUHDVHG GHVFULSWLYH IHPDOH UHSUHVHQWDWLRQ WKDW LV WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV LQ D FKDPEHU LQ 86 VWDWH n)RU GHWDLOV RQ VSHFLILFV RI FRQVWUXFWLQJ DQG LPSOHPHQWLQJ D 7RWDO 'HVLJQ 0HWKRG PDLO VXUYH\ VHH FKDSWHUV IRXU DQG ILYH LQ 0DLO DQG 7HOHSKRQH 6XUYH\V E\ 'RQ $ 'LOOPDQ f

PAGE 97

OHJLVODWXUHV KDV UHVXOWHG LQ VXEVWDQWLYH UHSUHVHQWDWLRQ IRU ZRPHQ RQ GLVWLQFWLYHO\ JHQGHUHGSROLF\ LVVXHV 0DQ\ RI WKHVH JHQGHUHG SROLF\ DUHDV DUH FODVVLILHG DV EHLQJ HLWKHU FRPSRQHQWV RI D ZRPHQnV SROLF\ DJHQGD RU D IHPLQLVW SROLF\ DJHQGD ,PSDFWV RI OLQNDJHV EHWZHHQ OHJLVODWRUV DQG WUDGLWLRQDO ZRPHQnV DQG IHPLQLVW RUJDQL]DWLRQV DQG WKH SUHVHQFH RI DQG OHJLVODWRUnV SDUWLFLSDWLRQ LQf D ZRPHQn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nV WUDGLWLRQDO SROLF\ FRQFHUQV WKDW GLIIHUV IURP UHSUHVHQWDWLRQ E\ PDOH VWDWH OHJLVODWRUV 7KH VHFRQG K\SRWKHVL]HV D SRVLWLYH UHODWLRQVKLS EHWZHHQ WKH SHUFHSWLRQ RI D GLVWLQFWLYH ZRPHQnV SROLF\ DJHQGD DQG DFWXDO OHJLVODWLYH EHKDYLRU RI IHPDOH OHJLVODWRUV RQ EHKDOI RI ZRPHQnV SROLF\

PAGE 98

FRQFHUQV 7KH WKLUG K\SRWKHVLV LV WKDW IHPDOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WR ZRUN LQ SROLF\ FRDOLWLRQV ZLWK RWKHU JURXSV WR JHW WKHLU SULRULW\ ELOOV SDVVHG 7KH IRXUWK K\SRWKHVLV LV WKDW IHPDOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH HIIHFWLYH VSRQVRUV RI ZRPHQnV WUDGLWLRQDO SROLF\ ELOOV WKDQ WKHLU PDOH FROOHDJXHV +\SRWKHVLV ILYH VWDWHV IHPDOH OHJLVODWRUV ZLOO EH HTXDOO\ DV HIIHFWLYH DV PDOH OHJLVODWRUV WR VXFFHVVIXOO\ VSRQVRU DQG SDVV JHQGHU QHXWUDO OHJLVODWLRQ +\SRWKHVLV VL[ VWDWHV EHLQJ D PHPEHU RI DQ HIIHFWLYH ZRPHQnV OHJLVODWLYH FDXFXV LV SRVLWLYHO\ UHODWHG WR PHPEHUVn SHUVRQDO VXSSRUW IRU IHPLQLVW SXEOLF SROLFLHV )DFWRUV K\SRWKHVL]HG WR EH VLJQLILFDQW LQ WKH HPHUJHQFH RI D GLVWLQFWLYH JHQGHUUHODWHG ZRPHQnV SROLF\ DQG IHPLQLVW SROLF\ DJHQGD LQFOXGH WKH SUHVHQFH RI DQG VWUHQJWK RI DQ RUJDQL]HG ZRPHQnV OHJLVODWLYH SROLWLFDO FDXFXV LQFUHDVHG OLQNDJHV EHWZHHQ IHPDOH OHJLVODWRUV DQG RUJDQL]HG ZRPHQnV SROLWLFDO JURXSV WKH IUHTXHQF\ RI SROLF\ FRDOLWLRQV ZLWK VXSSRUWLYH PDOH FROOHDJXHV RQ JHQGHUHG LVVXHV DQG RWKHU SULRULW\ OHJLVODWLRQ DQG WKH SUHVHQFH RI ZRPHQ LQ OHJLVODWLYH FRPPLWWHH SRVLWLRQV RI LQIOXHQFH LQ SROLF\ DUHDV RI WUDGLWLRQDO FRQFHUQ WR ZRPHQ DQG LQ FRPPLWWHH SRVLWLRQV RI LQIOXHQFH RYHU ELOOV VHHNLQJ JUHDWHU HTXDOLW\ IRU ZRPHQ WKDW LV IHPLQLVW OHJLVODWLRQ $ VXPPDU\ RI PDMRU K\SRWKHVHV LV VKRZQ LQ )LJXUH RQ WKH QH[W SDJH

PAGE 99

+M $V WKH SHUFHQWDJH RI IHPDOH VWDWH OHJLVODWRUV LQ D VWDWH LQFUHDVH ZRPHQ SURYLGH LQFUHDVLQJO\ VXEVWDQWLYH JHQGHUUHODWHG UHSUHVHQWDWLRQ IRU ZRPHQnV WUDGLWLRQDO SROLF\ FRQFHUQV WKDW GLIIHUV IURP UHSUHVHQWDWLRQ E\ PDOH VWDWH OHJLVODWRUV + 7KHUH LV D SRVLWLYH UHODWLRQVKLS EHWZHHQ WKH SHUFHSWLRQ RI D GLVWLQFWLYH ZRPHQnV SROLF\ DJHQGD DQG DFWXDO OHJLVODWLYH EHKDYLRU RI IHPDOH OHJLVODWRUV RQ EHKDOI RI ZRPHQnV SROLF\ FRQFHUQV WKURXJK WKH VSRQVRUVKLS RI ELOOV LQ WKHVH SROLF\ DUHDV + )HPDOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ WKHLU PDOH FRXQWHUSDUWV WR ZRUN LQ SROLF\ FRDOLWLRQV ZLWK RWKHU JURXSV LQ RUGHU WR JHW WKHLU SULRULW\ ELOOV SDVVHG + )HPDOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH HIIHFWLYH VSRQVRUV RI ZRPHQnV WUDGLWLRQDO SROLF\ ELOOV WKDQ WKHLU PDOH FROOHDJXHV + )HPDOH OHJLVODWRUV ZLOO EH DV HIIHFWLYH DV WKHLU PDOH FRXQWHUSDUWV LQ VXFFHVVIXOO\ VSRQVRULQJ WKHLU SULRULW\ ELOOV LQ JHQGHUQHXWUDO SROLF\ DUHDV + %HLQJ D PHPEHU RI DQ HIIHFWLYH ZRPHQnV OHJLVODWLYH FDXFXV LV SRVLWLYHO\ UHODWHG WR PHPEHUVn SHUVRQDO VXSSRUW IRU IHPLQLVW SXEOLF SROLF\ LVVXHV )LJXUH 5HVHDUFK +\SRWKHVHV 6DPSOH DQG 3DUWLFLSDQWV LQ WKLV 5HVHDUFK 3UHOLPLQDU\ VWDWH OHJLVODWRU FRQWDFW LQIRUPDWLRQ LQFOXGLQJ QDPH FKDPEHU PDLOLQJ DGGUHVV JHQGHU DQG SDUWLVDQVKLS ZDV REWDLQHG IURP WKH (OHFWLRQ 5HVXOWV 'LUHFWRU\ HGLWLRQf SXEOLVKHG E\ WKH 1DWLRQDO

PAGE 100

&RQIHUHQFH RI 6WDWH /HJLVODWXUHV *HQGHU LQIRUPDWLRQ ZDV YHULILHG XVLQJ WKH WKHQ PRVW UHFHQW 1DWLRQDO 'LUHFWRU\ RI :RPHQ (OHFWHG 2IILFLDOV f SXEOLVKHG E\ WKH 1DWLRQDO :RPHQnV 3ROLWLFDO &DXFXV 8SGDWHG GDWD RQ WKH QXPEHU RI ZRPHQ VHUYLQJ LQ HDFK OHJLVODWLYH FKDPEHU ZHUH SURYLGHG E\ WKH &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV &$:3f DW 5XWJHUV 8QLYHUVLW\ (WKQLFLW\ GDWD ZHUH REWDLQHG IURP WKH %ODFN (OHFWHG 2IILFLDOV 1DWLRQDO 5RVWHU f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

PAGE 101

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f LQ VWDWHV LQFUHDVHG WKH WRWDO PDOH VDPSOH WR RU SHUFHQW RI WKH IHPDOH OHJLVODWRU SRSXODWLRQ $ WRWDO RI OHJLVODWRUV IHPDOHV DQG PDOHVf UHSUHVHQWLQJ DOO ILIW\ VWDWHV UHWXUQHG FRPSOHWHG VXUYH\V 6XVDQ &DUUROO f DQG 'HEUD / 'RGVRQ f DQDO\]HG D &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV QDWLRQZLGH VXUYH\ ZKLFK REWDLQHG D b JHQGHU UHVSRQVH UDWH GLIIHUHQFH 6XH 7KRPDV f IRXQG D b JHQGHU GLIIHUHQFH LQ WKH WZHOYH VWDWH VDPSOH 6XVDQ :HOFK DQG VKH FROOHFWHG 6XPPHU $ QDWLRQDO VXUYH\ IRXQG D b JHQGHU GLIIHUHQFH LQ UHVSRQVH UDWHV 0F/HDQ f 5DQGRP GLJLWV WDEOH XVHG LQ WKH PDOH OHJLVODWRU VDPSOH VHOHFWLRQ LV 7DEOH $O SDJHV $SSHQGL[ $f LQ (PSLULFDO 3ROLWLFDO $QDO\VLV 5HVHDUFK 0HWKRGV LQ 3ROLWLFDO 6FLHQFH 0DQKHLP DQG 5LFK f

PAGE 102

1HFHVVDU\ 6DPSOH 6L]H IRU 6WDWLVWLFDO 3URFHGXUHV 0XFK RI WKLV UHVHDUFK XVHV PXOWLYDULDWH UHJUHVVLRQ DQDO\VLV %XW VRPH SUHOLPLQDU\ GLIIHUHQFH RI PHDQV WHVWLQJ JHQGHU GLIIHUHQFHV WWHVWVf DQG FRUUHODWLRQV XVLQJ &URQEDFKnV $OSKD FRHIILFLHQW ZHUH QHFHVVDU\ 7KHUHIRUH D SRZHU DQDO\VLV ZLWK WKH VWDQGDUG VLJQLILFDQFH OHYHO UHTXLUHG D PLQLPXP WRWDO VDPSOH RI SDUWLFLSDQWV DQG D PLQLPXP JHQGHU VDPSOH VL]H RI EH REWDLQHG 7KH QXPEHU RI VWDWH OHJLVODWRUV SDUWLFLSDWLQJ LQ WKLV UHVHDUFK H[FHHGV WKH SRZHU DQDO\VLV PLQLPXP UHTXLUHG 7KLV LV LPSRUWDQW WR DYRLG PDNLQJ D 7\SH ,, HUURU WKDW LV IDLOLQJ WR UHMHFW WKH QXOO K\SRWKHVLV DOWKRXJK LW LV IDOVH GXH WR VPDOO HIIHFWV RI LQGHSHQGHQW YDULDEOHV RQ WKH GHSHQGHQW YDULDEOHf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f SDJH

PAGE 103

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f DOWKRXJK WKH\ DUH HOHFWHG LQ QRQSDUWLVDQ HOHFWLRQV 7KLV PD\ KDYH UHGXFHG WKH RYHUDOO DFFXUDF\ RI WKH VDPSOH IRU LQGHSHQGHQWV I WKH IHPDOH OHJLVODWRUV OLVWHG DV LQ RIILFH DV RI -XO\ &$:3 GDWDf WZHOYH KDG DOUHDG\ UHVLJQHG SULRU WR WKH DGPLQLVWUDWLRQ RI WKLV VXUYH\ $QRWKHU IHPDOH OHJLVODWRUV ZHUH GURSSHG IURP WKLV UHVHDUFK (OHYHQ GHFOLQHG WR SDUWLFLSDWH WKUHH OHJLVODWRUnV JHQGHU ZHUH LQFRUUHFWO\ OLVWHG DV IHPDOH RQH GLHG ZKLOH LQ RIILFH DQG GHVSLWH UHSHDWHG EHVW HIIRUWV DQG PDLOLQJV YDOLG DGGUHVVHV ZHUH XQDYDLODEOH IRU DQWKHU VL[ IHPDOH OHJLVODWRUV 7KHUH ZDV D VLPLODU GHFOLQH DPRQJ WKH PDOHV UHVXOWLQJ LQ PDOH OHJLVODWRUV EHLQJ GURSSHG IURP WKH RULJLQDO VDPSOH

PAGE 104

7$%/( )HPDOH /HJLVODWRUV LQ 6DPSOH '(02&5$7 ,1'(3(1'(17 5(38%/,&$1 1XPEHU RI 6WDWH +RXVH 0HPEHUV 3HUFHQW LQ VDPSOH b b b 3HUFHQW LQ 3RS b b b 3HUFHQW 'LIIHUHQFH IURP 3RSXODWLRQ b b b 1XPEHU RI 6HQDWRUV 3HUFHQW LQ VDPSOH b b b 3HUFHQW LQ 3RS b b b 3HUFHQW 'LIIHUHQFH IURP 3RSXODWLRQ b b b $V FDQ EH VHHQ LQ 7DEOH WKH PDOH OHJLVODWRU VDPSOH VWUDWLILHG E\ OHJLVODWLYH FKDPEHU DQG SDUW\ LGHQWLILFDWLRQ LV VLJQLILFDQWO\ PRUH 5HSXEOLFDQ DQG WKHUHIRUH OHVV 'HPRFUDWLF WKDQ LV WKH IHPDOH VDPSOH SHUFHQW LQ VWDWH +RXVHV DQG SHUFHQW LQ VWDWH 6HQDWHV +RZHYHU DV FDQ EH VHHQ LQ 7DEOH WKH PDOH VHQDWRU VDPSOH LV HYHQ PRUH UHSUHVHQWDWLYH RI WKH PDOH OHJLVODWRU SRSXODWLRQ WKDQ LV WKH IHPDOH VDPSOH WR LWV SRSXODWLRQ 7KH PDOH 6HQDWH VDPSOH LV ZLWKLQ SHUFHQW IRU 'HPRFUDWLF PHQ DQG SHUFHQW IRU 5HSXEOLFDQ PHQ RI WKHLU DFWXDO SHUFHQWDJH LQ WKH PDOH VWDWH VHQDWH SRSXODWLRQ 7KH ILYH PDOH PHPEHUV RI WKH 1HEUDVND 8QLFDPHUDO 6HQDWH ZKR UHVSRQGHG DUH

PAGE 105

FRXQWHG LQ WKHLU SDUWLVDQ WRWDO WKUHH 'HPRFUDWV DQG WZR 5HSXEOLFDQVf ,Q WKH VWDWH KRXVHV WKH PDOH OHJLVODWRU VDPSOH LV ZLWKLQ SHUFHQW IRU 'HPRFUDWLF UHSUHVHQWDWLYHV DQG ZLWKLQ SHUFHQW IRU 5HSXEOLFDQ UHSUHVHQWDWLYHV 7$%/( 0DOH /HJLVODWRUV LQ 6DPSOH '(02&5$7 ,1'(3 5(38%/,&$1 27+(5 1XPEHU RI 6WDWH +RXVH 0HPEHUV 3HUFHQW LQ VDPSOH b b b b 3HUFHQW LQ 3RS b b b 3HUFHQW 'LIIHUHQFH IURP 3RSXODWLRQ b b b 1XPEHU RI 6HQDWRUV L 3HUFHQW LQ VDPSOH b b b 3HUFHQW LQ 3RS b b b 3HUFHQW 'LIIHUHQFH IURP 3RSXODWLRQ b b b r ,QFOXGHV WZR PDOH /LEHUWDULDQV $SSURSULDWHQHVV RI WKH 6XUYH\ ,QVWUXPHQW 7KH VHOIDGPLQLVWHUHG PDLO VXUYH\ KDV EHHQ DQ HPSLULFDO SROLWLFDO VFLHQFH UHVHDUFK WRRO XVHG WR VWXG\ WKH OHJLVODWLYH RSLQLRQV DQG EHKDYLRU RI 86 IHPDOH VWDWH OHJLVODWRUV VLQFH WKH PLG V :HUQHU f $ OHQJWK\ QDWLRQDO PDLO VXUYH\ ZKLFK LQFOXGHG IHPDOH VWDWH OHJLVODWLYH

PAGE 106

FDQGLGDWHV DQG LQFXPEHQWV ZDV FRQGXFWHG LQ E\ 6XVDQ &DUUROO ,W SURYLGHG GDWD IRU KHU GLVVHUWDWLRQ DQG IRU VXEVHTXHQW ERRNV RQ WKH FDPSDLJQ DFWLYLWLHV RI IHPDOH FDQGLGDWHV DQG WKHLU JURXS VRXUFHV RI FDPSDLJQ VXSSRUW &DUUROO f 7ZR RWKHU PRUH UHFHQW VXEQDWLRQDO RSLQLRQ VXUYH\V WKDW H[DPLQHG JHQGHU GLIIHUHQFHV LQ VWDWH OHJLVODWLYH DWWLWXGHV OHJLVODWLYH DFWLYLWLHV DQG SROLFLHV SULRULWLHV DUH FORVHO\ UHODWHG WR WKLV UHVHDUFK 7KHVH DUH D WZHOYHVWDWH VWXG\ RI VWDWH UHSUHVHQWDWLYHV 7KRPDV DQG :HOFK 7KRPDV f DQG D TXHVWLRQQDLUH DGPLQLVWHUHG WR VWDWH OHJLVODWRUV LQ ERWK FKDPEHUV RI WKH $UL]RQD DQG &DOLIRUQLD OHJLVODWXUHV 5HLQJROG DfH $ QDWLRQDO VXUYH\ RI IHPDOH OHJLVODWRUV ZKLFK IRFXVHG RQ WKHLU FRPPLWWHH DVVLJQPHQWV DQG $ IXOO FRS\ RI WKH 6XUYH\ RI &DQGLGDWHV IRU 3XEOLF 2IILFH XVHG E\ 6XVDQ &DUUROO LQ WKHVH ZRUNV FDQ EH IRXQG LQ :RPHQ DV &DQGLGDWHV LQ $PHULFDQ 3ROLWLFV QG HGLWLRQ $SSHQGL[ % 4XHVWLRQQDLUH RQ SDJHV f $ FRS\ RI WKH VXUYH\ LQVWUXPHQW DGPLQLVWHUHG E\ 6XH 7KRPDV DQG 6XVDQ :HOFK FDQ EH IRXQG DV $SSHQGL[ & LQ 7KRPDVn ERRN +RZ :RPHQ /HJLVODWH f SDJHV f5HLQJROG XVHG WKLV TXHVWLRQQDLUH DV D IROORZXS WR SUHYLRXV LQSHUVRQ LQWHUYLHZV ZLWK OHJLVODWRUV $ FRS\ RI WKH TXHVWLRQQDLUH ZDV SURYLGHG E\ KHU WR WKH DXWKRU SHUVRQDO FRUUHVSRQGHQFH -DQXDU\ f $ SXEOLVKHG FRS\ RI WKH LQVWUXPHQW FDQ EH IRXQG DV $SSHQGL[ E 6DPSOH :ULWWHQ 4XHVWLRQQDLUH LQ KHU GRFWRUDO GLVVHUWDWLRQ Df SDJHV

PAGE 107

OHJLVODWLYH SULRULWLHV KDV DOVR EHHQ SDUWLFXODUO\ KHOSIXO LQ GHVLJQLQJ WKLV UHVHDUFK LQVWUXPHQW 'RODQ DQG )RUG f /HJLVODWRUnV 3HUVRQDO 3ROLF\ 3ULRULWLHV $PRQJ WKH PRVW LPSRUWDQW FRQFHSWV LQ WKLV FXUUHQW UHVHDUFK DUH JHQGHU GLIIHUHQFHV LQ OHJLVODWRUnV VHOI LGHQWLILHG SHUVRQDO OHJLVODWLYH SROLF\ DUHD SULRULWLHV 2WKHU VFKRODUV ZKR KDYH PHDVXUHG WKLV FRQFHSW LQ VLPLODU ZD\V LQFOXGH 5HLQJROGnV SUHOLPLQDU\ LQWHUYLHZ TXHVWLRQV DQG )RUG DQG 'RODQnV VXUYH\ RI IHPDOH OHJLVODWRUV )RU D FRPSOHWH FRS\ RI WKH VXUYH\ LQVWUXPHQWVf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f WR TXHVWLRQV WKURXJK RI 7KRPDVn VXUYH\ LQVWUXPHQW 6$ FRS\ RI WKH VXUYH\ LQVWUXPHQW ZDV SURYLGHG WKURXJK SHUVRQDO FRUUHVSRQGHQFH E\ 'U /\QQH ( )RUG f 5HVHDUFK ILQGLQJV IURP WKLV VXUYH\ DUH UHSRUWHG LQ 7KH 3ROLWLFV RI :RPHQ 6WDWH /HJLVODWRUV $ 6RXWK1RQ6RXWK &RPSDULVRQ )RUG DQG 'RODQ f DQG :RPHQ LQ WKH 6WDWH /HJLVODWXUHV )HPLQLVW ,GHQWLW\ DQG /HJLVODWLYH %HKDYLRUV 'RODQ DQG )RUG f

PAGE 108

:RPHQnV &XOWXUH /LQNDJHV WR :RPHQnV /HJLVODWLYH &DXFXVHV 7KLV UHVHDUFK DFFHSWV DV D IRXQGDWLRQ DQG WKHQ EXLOGV RQ &DUUROOnV SROLWLFDO FRQFHSW RI ZRPHQnV FXOWXUH 6KH GHILQHV LW DV WKH VKDUHG LQWHUHVWV RI ZRPHQ ZKLFK FDQ OHDG WR FRPPRQ YDOXHV SHUVSHFWLYHV DQG SDWWHUQV RI LQWHUDFWLRQ UHVXOWLQJ IURP WKHLU ZRPHQnVf SRVLWLRQVf LQ WKH VH[XDO GLYLVLRQ RI ODERU f 6KH IRXQG IHPDOH OHJLVODWRUV ZLWK DFWLYH OLQNDJHV WR ZRPHQnV OHJLVODWLYH FDXFXVHV DQG IRUPDO RUJDQL]HG ZRPHQnV JURXSV RXWVLGH WKH OHJLVODWLYH FKDPEHU ZHUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ PHQ RU RWKHU ZRPHQ WR ZRUN RQ OHJLVODWLRQ EHQHILWLQJ ZRPHQ 7KH\ ZHUH DOVR PRUH OLNHO\ WR KDYH DV WKHLU SULRULW\ OHJLVODWLRQ WKDW IRFXVHV RQ HFRQRPLF VRFLDO HGXFDWLRQ DQG KHDOWK LVVXHV LPSRUWDQW WR ZRPHQ 7KHVH ILQGLQJV VXJJHVW ZRPHQnV QHWZRUNV DQG RUJDQL]DWLRQV ERWK LQVLGH DQG RXWVLGH WKH OHJLVODWXUHf SOD\ D YLWDO UROH LQ OLQNLQJ ZRPHQ RIILFHKROGHUV WR ZRPHQnV FXOWXUH &DUUROO f 7KLV FXUUHQW VWXG\ H[SDQGV HPSLULFDO UHVHDUFK RQ WKH GLIIHULQJ LPSDFWV DQG UROHV RI ZRPHQnV OHJLVODWLYH FDXFXVHV RQ IHPDOH OHJLVODWRUnV DGYRFDF\ DQG VXFFHVV LQ VSRQVRULQJ OHJLVODWLRQ UHODWHG WR ZRPHQnV FXOWXUH LVVXHV ,W DOVR H[DPLQHV ZKHWKHU WKH OHYHO RI IRUPDO RUJDQL]DWLRQ SDUWLVDQVKLS LQFOXVLRQ RI PDOH FDXFXV PHPEHUV DQG WKH SUHVHQFH RI D FDXFXV SROLF\ DJHQGD DUH VLJQLILFDQW LQ WKH

PAGE 109

VXEVWDQWLYH UHSUHVHQWDWLRQ RI WUDGLWLRQDO ZRPHQnV LVVXHV RU IHPLQLVW LVVXHV $W WKH LQGLYLGXDO OHJLVODWRU OHYHO WKH LPSDFW RI PHPEHUVKLS DFWLYH SDUWLFLSDWLRQ DQG OHDGHUVKLS LQ VXFK D FDXFXV RQ WKH OHJLVODWRUnV SHUVRQDO OHJLVODWLYH SULRULWLHV LV VWXGLHG 6FKRODUVKLS VWXG\LQJ JHQGHU GLIIHUHQFHV LQ OHJLVODWLYH VXSSRUW IRU IHPLQLVW DQG ZRPHQn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f DQG IHPDOH 5HSUHVHQWDWLYHV 'HPRFUDWV 5HSXEOLFDQV DQG WKUHH ,QGHSHQGHQWVf

PAGE 110

OHJLVODWRUV SURYLGHV D QHZ RSSRUWXQLW\ WR YLHZ PRUH FOHDUO\ OHJLVODWLYH JHQGHU GLIIHUHQFHV DV WKH\ LQWHUDFW ZLWK SDUWLVDQVKLS DQG LGHRORJ\ $Q LQFUHDVLQJ GLYHUVLW\ RI SHUVRQDO H[SHULHQFH LGHRORJ\ HWKQLFLW\ DQG HGXFDWLRQ H[LVWV DPRQJ OHJLVODWRUV 9DU\LQJ OHYHOV RI VXSSRUW IRU WUDGLWLRQDO ZRPHQnV LVVXHV DQG WKH SUHVHQFH RU GHJUHH RI IHPLQLVW VHOILGHQWLILFDWLRQ DQG SDUWLVDQVKLS DPRQJ ZRPHQ DUH OLNHO\ WR UHVXOW LQ LQFUHDVHG GLYHUVLW\ DPRQJ ZRPHQ DQG SHUKDSV DOVR DPRQJ PHQf LQ WKHLU VXSSRUW IRU ZRPHQnV FXOWXUH :RPHQnV &XOWXUH /LQNDJHV WR )RUPDO :RPHQnV 2UJDQL]DWLRQV $ WHOHSKRQH VXUYH\ RI VWDWH OHJLVODWRUV FRQGXFWHG E\ WKH &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV IRXQG QHDUO\ WZRWKLUGV RI IHPDOH OHJLVODWRUV ZHUH LQYROYHG ZLWK IRUPDO ZRPHQnV RUJDQL]DWLRQV %RWK &DUUROO DQG 5HLQJROG DVNHG VXUYH\ TXHVWLRQV WR PHDVXUH WKH OHYHO RI FDPSDLJQ VXSSRUW IRU RU RSSRVLWLRQ WR VWDWH OHJLVODWRUV IURP YDULRXV IRUPDO RUJDQL]DWLRQV &DUUROOnV UHVHDUFK IRFXVHG RQ KRZ PDQ\ IHPDOH OHJLVODWRUV ZHUH PHPEHUV RI WZR VSHFLILFDOO\ IHPLQLVW RUJDQL]DWLRQV DQG WKUHH WUDGLWLRQDO ZRPHQnV JURXSV +HU f&DUUROOnV UHVHDUFK RQ UHSUHVHQWLQJ ZRPHQnV FXOWXUH H[DPLQHG KRZ PDQ\ IHPDOH OHJLVODWRUV ZHUH PHPEHUV RI WKH IROORZLQJ RUJDQL]DWLRQV WKH 1DWLRQDO 2UJDQL]DWLRQ IRU :RPHQ 12:f WKH 1DWLRQDO :RPHQVn 3ROLWLFDO &DXFXV 1:3&f WKH /HDJXH RI :RPHQ 9RWHUV /:9f WKH $PHULFDQ $VVRFLDWLRQ RI 8QLYHUVLW\ :RPHQ $$8:f RU WKH $VVRFLDWLRQ RI %XVLQHVV DQG 3URIHVVLRQDO :RPHQ %3:f 6HH &DUUROO LQ %\VW\G]LHQVNL

PAGE 111

RSHQHQGHG TXHVWLRQV DQG f RQ WKH VXUYH\ LQTXLUHG DERXW JURXSV WKDW SURYLGHG FDPSDLJQ VXSSRUW HQGRUVHG PDGH ILQDQFLDO FRQWULEXWLRQV RU SURYLGHG ZRUNHUVf DQG WKRVH WKDW RSSRVHG IHPDOH FDQGLGDWHV LQ WKHLU PRVW UHFHQW HOHFWLRQ 7KHVH TXHVWLRQV KDYH EHHQ UHVWUXFWXUHG LQWR D FORVH HQGHG FKHFNRII IRUPDW DQG VLJQLILFDQWO\ H[SDQGHG IRU WKLV UHVHDUFK $GGLWLRQDO TXHVWLRQV ZHUH DGGHG WR PHDVXUH ZKHWKHU OHJLVODWRUV ZHUH PHPEHUV DFWLYHO\ VXSSRUWHG RU SDUWLFLSDWHG LQ WKHVH RUJDQL]DWLRQV 7KH H[SDQGHG OLVW RI RUJDQL]DWLRQV LQFOXGH EXVLQHVV SURIHVVLRQDO FLYLF DQWLn IHPLQLVW VXFK DV WKH &KULVWLDQ &RDOLWLRQf 3UR/LIH DQG 3UR&KRLFH JURXSV DV ZHOO DV WUDGLWLRQDO ZRPHQnV DQG RYHUWO\ SURIHPLQLVW JURXSV 7UDGLWLRQDO :RPHQnV 3ROLF\ ,QGH[ %RWK WKH WUDGLWLRQDO ZRPHQnV SROLF\ LQGH[ DQG WKH IHPLQLVW SROLF\ LQGH[ GLVFXVVHG LQ WKH QH[W VHFWLRQ KDYH WKHLU FRQFHSWXDO URRWV LQ 6DLQW*HUPDLQnV VHYHQWHHQ \HDU ORQJLWXGLQDO VWXG\ RI $UL]RQD OHJLVODWRUV f 0HWKRGRORJLFDO URRWV RI ERWK LQGLFHV VWHP IURP +DZDLL OHJLVODWLYH UHVHDUFK DQG FRPSDUDWLYH VWXGLHV RI ORFDO JRYHUQPHQW OHJLVODWLYH ERGLHV LQ &RQQHFWLFXW GXULQJ WKH V E\ 6XVDQ *OXFN 0H]H\ D Ef 6DLQW*HUPDLQ GHILQHG KHU WUDGLWLRQDO ZRPHQnV SROLF\ LQGH[ WR LQFOXGH DERUWLRQ FKLOGUHQ HGXFDWLRQ IDPLO\ f

PAGE 112

SXEOLF KHDOWK VH[ DQG ZHOIDUH f )RU WKLV FXUUHQW UHVHDUFK DERUWLRQ LV GURSSHG IURP WKLV GHILQLWLRQ DQG UHSODFHG ZLWK 3UR/LIH LQ WKH ZRPHQnV DJHQGDf DQG 3UR &KRLFH LQ WKH IHPLQLVW DJHQGDf 0H]H\ FUHDWHG IRXU VXEn LQGLFHV RI VXSSRUW IRU ZRPHQ DQG ZRPHQnV LVVXHV E f $ FDXWLRQDU\ QRWH LV DSSURSULDWH KHUH WR DFNQRZOHGJH WKDW ERWK RI 0H]H\nV VWXGLHV IDLOHG WR ILQG D VLJQLILFDQW UHODWLRQVKLS EHWZHHQ SROLF\ LPSDFW RQ IHPLQLVW JRDOV DQG WKH HOHFWLRQ RI LQFUHDVHG QXPEHUV RI ZRPHQ 7KLV ILQGLQJ LV LQFRQVLVWHQW ZLWK PRUH UHFHQW UHVHDUFK IURP WKH V EHOLHYH EDVHG RQ VXEVHTXHQW UHVHDUFK DQG P\ RZQ DQDO\VLV WKDW 0H]H\nV K\SRWKHVHV DQG LQGLFHV ZHUH QRW IODZHG +HU IDLOXUH WR UHMHFW WKH QXOO K\SRWKHVLV DSSHDUV WR KDYH EHHQ PRUH VWURQJO\ LQIOXHQFHG E\ WKH PXFK ORZHU SHUFHQWDJH RI +DZDLLDQ IHPDOH OHJLVODWRUV LQ DQG WKH YHU\ VPDOO IHPDOH VDPSOH VL]HV LQ ERWK KHU DQDO\VHV +HU VWXG\ LQFOXGHG HLJKW FXUUHQW DQG WKUHH SUHYLRXV IHPDOH VWDWH OHJLVODWRUV ,Q RQO\ ILYH SHUFHQW RI +DZDLLnV VWDWH OHJLVODWRUV ZHUH IHPDOH E\ WKLV KDG LQFUHDVHG WR SHUFHQW RU ILIWHHQ RI +DZDLLnV OHJLVODWRUV VXVSHFW 0H]H\nV UHVHDUFK ZDV WRR HDUO\ IRU HQRXJK IHPDOH OHJLVODWRUV 0H]H\ LQWHUYLHZHG ILIW\ IHPDOHV HOHFWHG WR ORFDO JRYHUQLQJ ERGLHV LQ &RQQHFWLFXW GXULQJ Df +HU +DZDLL VWXG\ LQFOXGHG SHUVRQDO LQWHUYLHZV ZLWK IHPDOH FDQGLGDWHV DQG IHPDOH OHJLVODWRUV XVLQJ VWDQGDUGL]HG TXHVWLRQQDLUHV Ef 7KH IHPDOH VDPSOH LQFOXGHG ORFDO DQG VWDWH RIILFHKROGHUV DQG ZDV DJJUHJDWHG WRJHWKHU IRU DQDO\VLV 7KHUH ZHUH RQO\ IHPDOH OHJLVODWRUV LQ WKH VDPSOH WKRVH ZKR VHUYHG GXULQJ WKH DQG OHJLVODWLYH VHVVLRQVf 6HH 7DEOH SDJH Ef

PAGE 113

WR EH LQFOXGHG LQ WKH VWXG\ WR UHVXOW LQ D VLJQLILFDQW ILQGLQJ ,Q WKLV UHVHDUFK VXSSRUW IRU D ZRPHQnV SROLF\ LQGH[ LV FUHDWHG XVLQJ IRXU LQGLFDWRUV 7KHVH DUH GHVLJQHG WR PHDVXUH VXSSRUW IRU IXQGLQJ 63(1':20f LQ DUHDV RI WUDGLWLRQDO IHPDOH UHVSRQVLELOLW\ IRU H[DPSOH FKLOG FDUH HDUO\ FKLOGKRRG HGXFDWLRQ SUHQDWDO KHDOWK FDUH DQG VSRXVH DEXVH VKHOWHUV 7KLV VWUXFWXUH VLPXODWHV SROLWLFDO IXQGLQJ GHFLVLRQ FKRLFHV WKDW VWDWH OHJLVODWRUV DFWXDOO\ PDNH )HPLQLVW 3ROLF\ ,QGH[ 8QOLNH WKH ZRPHQnV SROLF\ LQGH[ WKH IHPLQLVW SROLF\ LQGH[ LV PRVWO\ FRQFHUQHG ZLWK WKH GLUHFWLRQ RI VXSSRUW RQ SROLF\ LVVXHV IRU H[DPSOH LQFUHDVLQJ WKH HTXDOLW\ RI ZRPHQ FRPSDUHG WR PHQ UDWKHU WKDQ VSHFLILF SROLF\ FRQWHQW DUHDV ,W IRFXVHV RQ SROLF\ SRVLWLRQV WKDW DWWHPSW WR LPSURYH WKH TXDOLW\ RI ZRPHQnV HFRQRPLF VRFLDO DQG SROLWLFDO VWDWXV )HPLQLVW SROLWLFDO VFLHQWLVWV VXPPDUL]H WKLV DJHQGD DV PDNLQJ WKH SHUVRQDO SROLWLFDO 7KLV IHPLQLVW DJHQGD IRFXVHV SULPDULO\ RQ LVVXHV WKDW KDYH DGYHUVHO\ DIIHFWHG ZRPHQ FKLOGUHQ DQG WKHLU IDPLOLHV ,Q D FRDOLWLRQ RI VL[WHHQ SUHVLGHQWV RI QDWLRQDO IHPLQLVW JURXSV QDPHG WKH 7KLV &RXQFLO LQFOXGHG WKH SUHVLGHQWV RI 12: 1:3&%3: $$8: DQG RWKHU WUDGLWLRQDO ZRPHQnV RUJDQL]DWLRQV

PAGE 114

&RXQFLO RI 3UHVLGHQWV PHW DQG IRUPDOL]HG WKHLU IHPLQLVW DJHQGD 7KH IHPLQLVW SROLF\ LQGH[ )(0,1';f LQ WKLV UHVHDUFK EXLOGV XSRQ 6DLQW*HUPDLQnV EDVLF FRQFHSWV ,W DOVR KDV URRWV LQ WKH IHPLQLVP LQGH[ GHYHORSHG E\ 6XVDQ *OXFN 0H]H\ f LQ KHU DQDO\VLV RI ORFDO IHPDOH SROLWLFLDQV LQ &RQQHFWLFXW DQG %HWK 5HLQJROGnV PRUH UHFHQW EDWWHU\ RI IHPLQLVW LVVXH TXHVWLRQV 7KLV IHPLQLVW SROLF\ LQGH[ )(0,1';f KDV ILYH LQGLFDWRUV ZLWK UHVSRQVHV EDVHG RQ D ILYHSRLQW /LNHUW VFDOH 4XHVWLRQV PHDVXUH OHJLVODWRUVn OHYHO RI VXSSRUW IRU VWURQJHU HQIRUFHPHQW WR FROOHFW XQSDLG FKLOG VXSSRUW LQFUHDVLQJ WKH SHUFHQWDJH RI SXEOLF PHGLFDO UHVHDUFK IXQGV IRU ZRPHQnV GLVHDVHV RVWHRSRURVLV EUHDVW FDQFHUf DQG LQFUHDVLQJ WKH QXPEHU RI ZRPHQ DSSRLQWHG WR SXEOLF RIILFH $OVR LQFOXGHG DUH TXHVWLRQV DERXW VWURQJHU HQIRUFHPHQW RI VH[XDO KDUDVVPHQW ODZV DQG WKH QHHG IRU SURWHFWLRQ DJDLQVW VH[XDO MRE GLVFULPLQDWLRQ DJDLQVW ZRPHQ 7KH ILQDO TXHVWLRQ 7KHLU IHPLQLVW SXEOLF SROLF\ DJHQGD LQFOXGHG WKHf 5HYLYDO RI WKH (5$ UHSURGXFWLYH ULJKWV DQG JRYHUQPHQW IXQGLQJ RI UHSURGXFWLYH KHDOWK FDUH IRU DOO ZRPHQ HTXDO SD\ IRU ZRUN RI FRPSDUDEOH ZRUWK D IHGHUDO SROLF\ RI XQSDLG OHDYH IRU PHQ DQG ZRPHQ IRU GLVDELOLW\ FKLOGELUWK DGRSWLRQ RU WR FDUH IRU LOO GHSHQGHQWV DQ LQFUHDVH LQ WKH PLQLPXP ZDJH D IHGHUDO FKLOGFDUH SURJUDP ZHOIDUH UHIRUP WR LQFOXGH MRE WUDLQLQJ LQFRPH PDLQWHQDQFH DQG PHGLFDO FDUH +DUWPDQQ f 6HH %HWK 5HLQJROGnV $SSHQGL[ E 6DPSOH :ULWWHQ 4XHVWLRQQDLUH SDJH 6HFWLRQ ) LQ KHU GLVVHUWDWLRQ 5HSUHVHQWLQJ ZRPHQ *HQGHU GLIIHUHQFHV DPRQJ $UL]RQD DQG &DOLIRUQLD VWDWH OHJLVODWRUV Df

PAGE 115

FRQFHUQV WHHQ DFFHVV WR HIIHFWLYH ELUWK FRQWURO WKURXJK SXEOLF IXQGHG KHDOWK GHSDUWPHQWV ([FHSWLQJ WKH FKLOG VXSSRUW TXHVWLRQ WKHVH LWHPV ZHUH DGDSWHG IURP WKH SROLWLFV DQG OHJLVODWLRQ VHFWLRQ RI D $WWLWXGHV WRZDUG )HPLQLVW ,VVXHV 6FDOH $7),f E\ (OPRUH %URGVN\ DQG 1DII]LJHU f 7KH $7), VFDOH ZDV GHYHORSHG IURP SDUDSKUDVLQJ WKH UHVROXWLRQV RI WKH QDWLRQDO FRQYHQWLRQ SODWIRUP RI WKH 1DWLRQDO 2UJDQL]DWLRQ IRU :RPHQ %HHUH f DGGHG WKH VWURQJHU OHJDO VDQFWLRQV DJDLQVW SDUHQWV ZKR RZH EDFN FKLOG VXSSRUW LQGLFDWRU EXW VXEVHTXHQWO\ KDG WR GURS LW 0RUH HIIHFWLYH HQIRUFHPHQW DQG VWURQJHU VDQFWLRQV IRU XQSDLG VXSSRUW KDYH UHFHQWO\ EHFRPH YHU\ VDOLHQW VWDWH SROLF\ LVVXHV /HJLVODWLYH OHDGHUV SURMHFWHG WKH\ ZRXOG EHFRPH LPSRUWDQW SROLF\ DJHQGD LWHPV LQ VWDWH OHJLVODWXUHV GXULQJ WKH VHVVLRQV +RZHYHU UHVSRQVHV WR WKLV TXHVWLRQ SHUIRUPHG SRRUO\ GXH WR D ODFN RI GLIIHUHQFH YDULDQFHf RI RSLQLRQ RQ WKH LVVXH 2I WKH OHJLVODWRUV ZKR DQVZHUHG SHUFHQWf DJUHHG VWURQJHU OHJDO VDQFWLRQV VKRXOG EH HQIRUFHG DJDLQVW QRQFXVWRGLDO SDUHQWV ZKR ZHUH GHOLQTXHQW LQ SD\LQJ FKLOG VXSSRUW DJUHHG DQG VWURQJO\ DJUHHGf O6HH 7DEOH 3XEOLF $VVLVWDQFH 5HIRUP (IIRUWV LQ LQ 6WDWH /HJLVODWLYH 3ULRULWLHV $Q 2SLQLRQ 6XUYH\ RI /HDGLQJ /DZPDNHUV 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV -DQXDU\ f

PAGE 116

9DULDEOHV ,Q 7KLV 5HVHDUFK 7KLV UHVHDUFK H[DPLQHV KRZ JHQGHU LQWHUDFWV ZLWK SDUWLVDQVKLS DQG HWKQLFLW\ WR H[SODLQ GLIIHUHQFHV LQ WKH OHYHOV RI VXSSRUW IRU WUDGLWLRQDO ZRPHQnV SROLFLHV DQG IHPLQLVW SROLFLHV DV H[SUHVVHG LQ OHJLVODWRUnV VHOI LGHQWLILHG SHUVRQDO OHJLVODWLYH SULRULWLHV DQG LQ WKH ELOOV PDOH DQG IHPDOH VWDWH OHJLVODWRUV VSRQVRUHG GXULQJ WKH VHVVLRQV ,W H[DPLQHV WKH HIIHFWLYHQHVV RI ZRPHQnV OHJLVODWLYH FDXFXVHV DQG WKH UROHV RI OLQNDJHV EHWZHHQ OHJLVODWRUV ZLWK ZRPHQnV DQG IHPLQLVW RUJDQL]DWLRQV RQ UHSUHVHQWLQJ ZRPHQnV FXOWXUH ,W DOVR H[DPLQHV WKH LPSDFW RI JHQGHU DQG SDUWLVDQVKLS GLIIHUHQFHV LQ FRDOLWLRQ EXLOGLQJ DFWLYLWLHV RQ D OHJLVODWRUnV HIIHFWLYHQHVV )RU D PRGHO RI WKLV UHVHDUFK GHVLJQ VHH )LJXUH RQ WKH QH[W SDJH ,W LQFOXGHV WKH LPSRUWDQW LQGHSHQGHQW FRQWH[WXDO DQG GHSHQGHQW YDULDEOHV RI WKLV UHVHDUFK WKDW ZLOO EH GHVFULEHG LQ PRUH GHWDLO 'HSHQGHQW 9DULDEOHV 7KHUH DUH VL[ PDMRU GHSHQGHQW YDULDEOHV LQ WKLV UHVHDUFK LQFOXGLQJ VXSSRUW IRU ZRPHQnV WUDGLWLRQDO SROLFLHV LQ ELOOV VSRQVRUHG :32/,&
PAGE 117

,QGHSHQGHQW ,QWHUYHQLQJ 9DULDEOH 9DULDEOHV 'HSHQGHQW 0HDVXUHV RI 9DULDEOHV 'HSHQGHQW 9DULDEOH /LQNDJHV WR ZRPHQnV JURXSV :20*5283f :RPHQnV FDXFXVHV :20&$8&f 6SHQGLQJ RQ ZRPHQnV LVVXHV 63(1':20f 6XSSRUW IRU IHPLQLVW SROLFLHV )(0,1';f /HJLVODWRUnV M *HQGHU :RPHQnV 3ROLF\ %LOOV /HJLVODWRUnV 6'RQVRUHG SROLWLFDO LGHRORJ\ L B :32/,&
PAGE 118

PHDVXUHG %,//68&&f ,QVWLWXWLRQDO DQG SROLWLFDO IDFWRUV FDQ RIWHQ UHGXFH D OHJLVODWRUnV DELOLW\ WR DFWXDOO\ VSRQVRU ELOOV GXULQJ D VHVVLRQ 7ZR DGGLWLRQDO GHSHQGHQW YDULDEOHV DWWHPSW WR PHDVXUH OHJLVODWRUVn SHUVRQDO VXSSRUW IRU HLWKHU ZRPHQnV WUDGLWLRQDO SROLFLHV :332/,&
PAGE 119

OHJLVODWLYH FDXFXV :&$8&86f LV DOVR DQ LPSRUWDQW LQGHSHQGHQW YDULDEOH 7KH UHPDLQLQJ WZR LQGHSHQGHQW LQGLFHV KDYH DOUHDG\ EHHQ GLVFXVVHG EULHIO\ HDUOLHU LQ WKLV FKDSWHU 7KH\ LQFOXGH DQ DWWLWXGHV LQGH[ RI VXSSRUW IRU VSHQGLQJ RQ LVVXHV RI ZRPHQnV WUDGLWLRQDO UHVSRQVLELOLW\ 63(1':20f VXFK DV SUHn NLQGHUJDUWHQ HGXFDWLRQ SUHQDWDO KHDOWK FDUH VXEVLGL]HG FKLOG FDUH DQG VXSSRUW RI DEXVH DQG GRPHVWLF YLROHQFH VKHOWHUV 7KH ILQDO LQGHSHQGHQW LQGH[ PHDVXUHV OHYHOV RI DWWLWXGLQDO VXSSRUW IRU IHPLQLVW LVVXHV )(0,1';f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f LQ HDFK VWDWH OHJLVODWXUH 7KHVH GDWD ZHUH SURYLGHG E\ WKH &HQWHU IRU WKH

PAGE 120

$PHULFDQ :RPDQ DQG 3ROLWLFV DW 5XWJHUV 8QLYHUVLW\ 7KLV LQIRUPDWLRQ LV XSGDWHG DQQXDOO\ DQG DYDLODEOH IURP WKH &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV LQ WKHLU :RPHQ LQ (OHFWLYH 2IILFH )DFW 6KHHWV /HJLVODWLYH SURIHVVLRQDOLVP 'DWD RQ WKH SURIHVVLRQDOLVP RI VWDWH OHJLVODWXUHV XVH WKH LQGH[ FUHDWHG E\ 3HYHULOO 6TXLUH DV SXEOLVKHG LQ /HJLVODWLYH 6WXGLHV 4XDUWHUO\ )HEUXDU\ 7KHLU DGGUHVV LV 7KH &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV (DJOHWRQ ,QVWLWXWH RI 3ROLWLFV 5XWJHUV 8QLYHUVLW\ 1HZ %UXQVZLFN 1DQG FDQ EH UHDFKHG E\ SKRQH DW DUHD FRGH f RU WKRXJK LWV LQWHUQHW ZHE VLWH DW KWWSZZZUFLUXWJHUVHGXaFDZS

PAGE 121

&+$37(5 '$7$ $1$/<6,6 5(68/76 $1' ),1',1*6 7KLV FKDSWHU GLVFXVVHV WKH GDWD DQDO\VLV DQG VWDWLVWLFDO SURFHGXUHV XVHG WR VWXG\ UHVSRQVHV IURP PDLO VXUYH\V IURP VWDWH OHJLVODWRUV QDWLRQZLGH ,W GHVFULEHV LPSRUWDQW GHPRJUDSKLF FKDUDFWHULVWLFV RI WKH VWDWH OHJLVODWRU VDPSOH DQG OHJLVODWLYH FDXFXV PHPEHUV ,W WHVWV WKH VL[ UHVHDUFK K\SRWKHVHV DQG SUHVHQWV WKH UHVXOWV 6WDWLVWLFDO WHVWV LQFOXGLQJ IUHTXHQF\ GLVWULEXWLRQV FURVVn WDEXODWLRQV PHDQV WWHVWV IRU WKH GLIIHUHQFH RI WZR PHDQVf FRUUHODWLRQV XVLQJ &URQEDFKnV DOSKDf DQG PXOWLSOH UHJUHVVLRQ DQDO\VLV 352& 5(*f ZHUH FRQGXFWHG 'DWD ZHUH DQDO\]HG XVLQJ 6$6 'HVFULSWLRQ RI /HJLVODWRU 6DPSOH *HQGHU DQG 3DUWLVDQVKLS 7KH VDPSOH LQ WKLV DQDO\VLV LQFOXGHV IHPDOH DQG PDOH VWDWH OHJLVODWRUV IURP DOO ILIW\ VWDWHV -XVW RYHU O6$6 LV DQ LQWHJUDWHG VWDWLVWLFDO VRIWZDUH V\VWHP IRU GDWD DFFHVV PDQDJHPHQW DQDO\VLV DQG SUHVHQWDWLRQ 6$6 LV D OLFHQVHG SURSULHWDU\ VRIWZDUH V\VWHP RI 6$6 ,QVWLWXWH ,QF &DU\ 1RUWK &DUROLQD ,W ZDV XVHG IRU WKLV DQDO\VLV XQGHU VLWH OLFHQVH DJUHHPHQW ZLWK WKH 8QLYHUVLW\ RI )ORULGD WKURXJK WKH 'HSDUWPHQW RI 3ROLWLFDO 6FLHQFH

PAGE 122

WKUHHTXDUWHUV SHUFHQWf RU OHJLVODWRUV DUH VWDWH UHSUHVHQWDWLYHV DQG WKH UHPDLQLQJ SHUFHQWf DUH VWDWH VHQDWRUV 7KH VDPSOH LV VOLJKWO\ PRUH 'HPRFUDWLF SHUFHQWf WKDQ 5HSXEOLFDQ SHUFHQWf DQG DOVR LQFOXGHV WHQ ,QGHSHQGHQWV WZR 3URJUHVVLYHV DQG RQH 6RFLDOLVW 'HPRFUDWLF DQG 5HSXEOLFDQ SDUWLVDQVKLS E\ FKDPEHU DQG OHJLVODWRUnV JHQGHU DUH ZLWKLQ WKUHH SHUFHQW RI WKHLU DFWXDO SHUFHQWDJH LQ WKH SRSXODWLRQ RI DOO VWDWH OHJLVODWRUV (WKQLFLW\ 'HVSLWH EHVW HIIRUWV WR GUDZ DQ HWKQLFDOO\ GLYHUVH DQG UHSUHVHQWDWLYH VDPSOH RYHU SHUFHQW SHUFHQWf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

PAGE 123

RI SHUFHQW RI WKHLU SRSXODWLRQ SHUFHQWDJHV 7KLV VDPSOH LQFOXGHV RU SHUFHQWf RI WKH WRWDO $IULFDQ$PHULFDQ IHPDOH OHJLVODWRUV ,W LQFOXGHV QLQH RU SHUFHQWf RI WKH WKLUW\ILYH /DWLQD OHJLVODWRUV FRPELQLQJ 0H[LFDQ$PHULFDQV 3XHUWR5LFDQV DQG &XEDQ $PHULFDQVf 7ZR RU SHUFHQWf RI WKH HLJKW IHPDOH 1DWLYH $PHULFDQ OHJLVODWRUV UHSOLHG DV GLG ILYH RI WKHLU PDOH FRXQWHUSDUWV 7ZR RU SHUFHQWf RI WKH HOHYHQ $VLDQ3DFLILF ,VODQGHU IHPDOH OHJLVODWRUV DQG VL[ RI WKHLU PDOH FRXQWHUSDUWV DUH DOVR LQFOXGHG (GXFDWLRQ 2QO\ ILYH OHJLVODWRUV LQ WKLV VWXG\ GLG QRW FRPSOHWH KLJK VFKRRO DQG RU SHUFHQWf UHSRUW KLJK VFKRRO DV WKHLU KLJKHVW OHYHO RI IRUPDO HGXFDWLRQ 0RUH WKDQ QLQHW\ SHUFHQW RI OHJLVODWRUV LQ WKLV VDPSOH DWWHQGHG FROOHJH 7KHUH LV QR VLJQLILFDQW JHQGHU GLIIHUHQFH LQ HGXFDWLRQ DPRQJ OHJLVODWRUV 1HDUO\ WZHOYH SHUFHQW SHUFHQWf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f )RU DQDO\VLV SXUSRVHV WKH VROH &XEDQ$PHULFDQ IHPDOH OHJLVODWRU LQ WKH VDPSOH LV QRW LQFOXGHG LQ WKH /DWLQD FDWHJRU\

PAGE 124

SHUFHQWf FRPSOHWHG IRXU \HDU GHJUHHV RQHWKLUG f FRPSOHWHG PDVWHUnV GHJUHHV RQHILIWK f FRPSOHWHG SURIHVVLRQDO GHJUHHV LQ ODZ PHGLFLQH RU HQJLQHHULQJ DQG ILYH SHUFHQW f VXFFHVVIXOO\ FRPSOHWHG GRFWRUDWH GHJUHHV /HJLVODWRU DV DQ 2FFXSDWLRQ 0DQ\ OHJLVODWRUV VHUYH RQO\ SDUWWLPH LQ WKHLU HOHFWHG SRVLWLRQV HVSHFLDOO\ LQ FLWL]HQ OHJLVODWXUHV ZKLFK KDYH ORZ SD\ DQG PHHW LQ VKRUW OHJLVODWLYH VHVVLRQV /HJLVODWRUV IUHTXHQWO\ KDYH RWKHU SULPDU\ DQG VRPHWLPHV VHFRQGDU\ RFFXSDWLRQV LQ RUGHU WR PDLQWDLQ D OLYDEOH RU VXVWDLQDEOH LQFRPH )HZHU WKDQ IRUW\ SHUFHQW SHUFHQWf RU RI WKH OHJLVODWRUV LQ WKLV VWXG\ ZHUH QRW HPSOR\HG LQ DGGLWLRQ WR WKHLU GXWLHV DV VWDWH OHJLVODWRU 2QO\ SHUFHQW OHJLVODWRUVf OLVWHG OHJLVODWRU DV WKHLU SULPDU\ RFFXSDWLRQ SHUFHQW OHJLVODWRUVf OLVWHG OHJLVODWRU DV WKHLU VHFRQGDU\ RFFXSDWLRQ DQG SHUFHQW RI WKRVH OLVWLQJ WKUHH RFFXSDWLRQV OLVWHG OHJLVODWRU DV WKHLU WHUWLDU\ RFFXSDWLRQ 2QH WKLUG RI OHJLVODWRUV ZLWK RWKHU MREV DUH HPSOR\HG SDUWWLPH $QRWKHU TXDUWHU SHUFHQWf RI HPSOR\HG OHJLVODWRUV ZRUN IXOO WLPH RQO\ EHWZHHQ VHVVLRQV 7KH UHPDLQLQJ SHUFHQW OHJLVODWRUV DUH HPSOR\HG IXOO WLPH \HDUURXQG HYHQ ZKLOH WKH\ DUH LQ OHJLVODWLYH VHVVLRQ

PAGE 125

1LQHW\ SHUFHQW RI OHJLVODWRUV LQ WKLV VDPSOH UHSRUW WKH\ DUH HLWKHU YHU\ VDWLVILHG SHUFHQW RU f RU PRVWO\ VDWLVILHG SHUFHQW RU f ZLWK WKHLU OHJLVODWLYH FDUHHUV 1LQH SHUFHQW RI OHJLVODWRUV UHSRUWHG EHLQJ VRPHWLPHV GLVVDWLVILHG f 2QO\ SHUFHQW RU OHJLVODWRUV IHPDOHV DQG PDOHVf UHSRUWHG EHLQJ IUHTXHQWO\ GLVVDWLVILHG ZLWK WKHLU OHJLVODWLYH FDUHHUV 0RUH WKDQ KDOI RI WKH GLVVDWLVILHG OHJLVODWRUV QDUURZO\ ZRQ WKHLU PRVW UHFHQW HOHFWLRQ ZLWK D YRWH PDUJLQ RI WHQ SHUFHQW RU OHVV 2YHU SHUFHQW RU RI WKHP LQGLFDWH WKH\ DUH HLWKHU OLEHUDO f RU PRGHUDWH f 2QO\ WKUHH FRQVHUYDWLYH OHJLVODWRUV UHSRUW WKH\ DUH IUHTXHQWO\ GLVVDWLVILHG 1HDUO\ KDOI RI WKHVH OHJLVODWRUV DUH PHPEHUV RI VXSHU VL]HG YHU\ ODUJH OHJLVODWXUHV SDUWLFXODUO\ LQ 0LQQHVRWD PHPEHUVf 1HZ +DPSVKLUH PHPEHUVf DQG 9HUPRQW PHPEHUVf %RWK KDYLQJ D OLEHUDO LGHRORJ\ DQG EHLQJ D PHPEHU RI D ODUJH FKDPEHU DUH VLJQLILFDQWO\ FRUUHODWHG ZLWK EHLQJ D GLVVDWLVILHG OHJLVODWRU WKLUWHHQ GLVVDWLVILHG OHJLVODWRUV UHSRUWHG WKHLU LGHRORJ\ DV OLEHUDO UDQJLQJ IURP WR DQRWKHU QLQH ZHUH PRGHUDWHV ZLWK LGHRORJ\ VFRUHV UDQJLQJ IURP WR RQ D VFDOH RI RQH PRVW OLEHUDOf WR VHYHQ PRVW FRQVHUYDWLYHf f,GHRORJ\ LV QHJDWLYHO\ DQG VLJQLILFDQWO\ FRUUHODWHG ZLWK EHLQJ IUHTXHQWO\ GLVVDWLVILHG U Sf ZKLOH EHLQJ D PHPEHU RI D ODUJH VL]HG OHJLVODWXUH LV SRVLWLYHO\ FRUUHODWHG ZLWK GLVVDWLVIDFWLRQ U Sf

PAGE 126

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n SULPDU\ RFFXSDWLRQV SHUFHQW f RZQ EXVLQHVVHV SHUFHQW f DUH HGXFDWRUV DQG SHUFHQW f DUH DWWRUQH\V /HJLVODWRU ZDV WKH PRVW IUHTXHQW UHVSRQVH DV D VHFRQG RFFXSDWLRQ SHUFHQW RU OHJLVODWRUVf IROORZHG E\ RWKHU SHUFHQW RU OHJLVODWRUVf DQG EHLQJ UHWLUHG SHUFHQW RU OHJLVODWRUVf 7ZHQW\ILYH OHJLVODWRUV UHSRUWHG VHFRQG RFFXSDWLRQV LQ WKH SURIHVVLRQV DQG WZHQW\ILYH ZHUH HPSOR\HG LQ UHDO HVWDWH 7KLUG RFFXSDWLRQV ZHUH YHU\ VLPLODU WR VHFRQG RFFXSDWLRQ UHSOLHV /HJLVODWRUnV $JH /HJLVODWRUV LQ WKLV VDPSOH UDQJHG LQ DJH IURP WR \HDUV ROG 3UHYLRXV UHVHDUFK KDV IRXQG IHPDOH OHJLVODWRUV RIWHQ HQWHU SROLWLFDO RIILFH LQ WKHLU ODWH IRUWLHV DV D VHFRQG FDUHHU DIWHU FKLOG UHDULQJ 0DOH OHJLVODWRUV PRUH

PAGE 127

IUHTXHQWO\ HQWHU SROLWLFV DV ILUVW FDUHHUV VKRUWO\ DIWHU FRPSOHWLQJ WKHLU IRUPDO FROOHJH HGXFDWLRQ ZKLOH WKH\ DUH LQ WKHLU PLG WR ODWH WZHQWLHV ,Q WKLV VDPSOH WKHUH ZDV QR VLJQLILFDQW JHQGHU GLIIHUHQFH LQ OHJLVODWRUVn DJHV ZLWK ERWK IHPDOH DQG PDOH OHJLVODWRUVn DYHUDJLQJ \HDUV ROG 0DULWDO 6WDWXV 1HDUO\ IRXU RI ILYH OHJLVODWRUV LQ WKLV VDPSOH SHUFHQW RU OHJLVODWRUV DUH PDUULHG (LJKW DQG HLJKW WHQWKV SHUFHQW RU OHJLVODWRUV DUH VLQJOH SHUFHQW RU OHJLVODWRUV DUH GLYRUFHG RU VHSDUDWHG DQG SHUFHQW RU DUH ZLGRZHG 7KHUH LV QR VLJQLILFDQW JHQGHU GLIIHUHQFH LQ OHJLVODWRUVn PDULWDO VWDWXV /HJLVODWRUVn &KLOGUHQ 0RUH WKDQ SHUFHQW RI WKH OHJLVODWRUV IHPDOHV DQG PDOHVf KDYH FKLOGUHQ )HPDOH OHJLVODWRUV DUH PRUH OLNHO\ WR KDYH FKLOGUHQ WKDQ PDOH OHJLVODWRUV EXW WKH GLIIHUHQFH LV QRW VLJQLILFDQW 7KH QXPEHU RI FKLOGUHQ UDQJHG IURP RQH WR WZHQW\ )HPDOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WR KDYH IHZHU FKLOGUHQ DQG ROGHU \RXQJHVW FKLOGUHQ WKDQ WKHLU PDOH FRXQWHUSDUWV (LJKW\ 'DWD IRU OHJLVODWRUV UHSRUWLQJ KDYLQJ VHYHQWHHQ DQG WZHQW\ FKLOGUHQ ZHUH UHYHULILHG )HPDOH OHJLVODWRUV PHDQ ZKLOH PDOH OHJLVODWRUV PHDQ 7KH WWHVW FRHIILFLHQW IRU \RXQJHVW FKLOG LV 7 S f

PAGE 128

VL[ SHUFHQW RI OHJLVODWRUV KDYH IRXU RU IHZHU FKLOGUHQ 2QHWKLUG SHUFHQW RU OHJLVODWRUV KDYH WZR FKLOGUHQ DQRWKHU TXDUWHU SHUFHQW RU OHJLVODWRUV KDYH WKUHH FKLOGUHQ DQG DSSUR[LPDWHO\ HTXDO SHUFHQWDJHV KDYH HLWKHU RQH FKLOG SHUFHQW RU OHJLVODWRUV RU IRXU FKLOGUHQ SHUFHQW RU OHJLVODWRUV 2QO\ WHQ OHJLVODWRUV UHSRUW KDYLQJ WHQ RU PRUH FKLOGUHQ )RU ERWK JHQGHUV WKH PRUH FKLOGUHQ D OHJLVODWRU KDV LV SRVLWLYHO\ DQG VLJQLILFDQWO\ FRUUHODWHG ZLWK WKH OHJLVODWRUnV VXSSRUW IRU VSHQGLQJ RQ WUDGLWLRQDO ZRPHQnV LVVXHV DQG VXSSRUW RI ZRPHQnV LVVXHV 63(1':20f f &KLOGUHQnV $JHV :KHWKHU FKLOGUHQ DUH LQIDQWV SUHVFKRROHUV LQ GD\ FDUH ROG HQRXJK WR DWWHQG VFKRRO IXOO GD\V WHHQ DJHG PLQRUV RU LQGHSHQGHQW DGXOWV OLYLQJ RXWVLGH WKH OHJLVODWRUVn KRPHV PD\ EH VLJQLILFDQW (DFK DJH JURXS DIIHFWV D OHJLVODWRUnV IDPLO\ FKLOG FDUH UHVSRQVLELOLWLHV GLIIHUHQWO\ 3HUVRQDO H[SHULHQFH DSSHDUV WR LQIOXHQFH PDOH DQG IHPDOH OHJLVODWRUVn SHUVRQDO SROLF\ RSLQLRQV LQ VXSSRUW RI IDPLO\RULHQWHG DQG WUDGLWLRQDO ZRPHQnV LVVXHV /HJLVODWRUVn \RXQJHVW FKLOGUHQ LQ WKLV VDPSOH UDQJHG LQ DJH IURP IRXU LQIDQWV OHVV WKDQ D \HDU ROGf WR DQ DGXOW FKLOG DJH ILIW\WKUHH 7KLUW\IRXU \RXQJHVW FKLOGUHQ f7KH QXPEHU RI FKLOGUHQ 180.,'6f LV SRVLWLYHO\ DQG VLJQLILFDQWO\ FRUUHODWHG ZLWK D OHJLVODWRUV VXSSRUW IRU VSHQGLQJ RQ WUDGLWLRQDO ZRPHQnV LVVXHV 5 S f

PAGE 129

SHUFHQW DUH LQIDQWV RU WRGGOHUV DJH WZR DQG XQGHU $ FRPELQHG WRWDO RI FKLOGUHQ SHUFHQW DUH SUHVFKRROHUV XQGHU WKH DJH RI VL[ /HJLVODWRUV KDYH \RXQJHVW FKLOGUHQ ZKR DWWHQG HOHPHQWDU\ RU MXQLRU KLJK VFKRRO DJHV VL[ WR IRXUWHHQf $QRWKHU \RXQJHVW FKLOGUHQ ZHUH KLJK VFKRRO WHHQDJHUV DJHV WR f &RPELQHG WKHVH FKLOGUHQ DOO RI ZKRP DUH VWLOO OHJDOO\ PLQRUV PDNH XS MXVW RYHU RQHWKLUG SHUFHQWf RI DOO OHJLVODWRUVn \RXQJHVW FKLOGUHQ 7KH\ UHSUHVHQW VXEVWDQWLDO FKLOG FDUH HGXFDWLRQDO ILQDQFLDO DQG SDUHQWLQJ UHVSRQVLELOLWLHV IRU WKHLU OHJLVODWRU SDUHQWV ,Q UHJUHVVLRQ DQDO\VLV WKH DJH RI OHJLVODWRUVn \RXQJHVW FKLOG LV VLJQLILFDQW DQG QHJDWLYHO\ UHODWHG WR WKHLU SHUVRQDO VXSSRUW IRU ZRPHQnV LVVXHV :332/,&
PAGE 130

7$%/( /HJLVODWRU 6DPSOH 'HPRJUDSKLFV )(0$/( 0$/( )8// &+$5$&7(5,67,& /(*,6/$7256 /(*,6/$7256 6$03/( *HQGHU 'HPRFUDW 5HSXEOLFDQ ,GHRORJ\ 6HQDWRUV r r 5HSUHVHQWDWLYHV E F (WKQLFLW\ $IULFDQ$PHULFDQ b $VLDQ3DFLILF ,VODQGHU b &DXFDVLDQ b 0H[LFDQ$PHULFDQ b 1DWLYH $PHULFDQ b 3XHUWR 5LFDQ b (GXFDWLRQ +LJK 6FKRRO b b b 7ZR \HDU GHJUHH b b b %DFKHORU GHJUHH b b b 0DVWHUV GHJUHH b b b 3URIHVVLRQDO b b b 'RFWRUDO GHJUHH b b b 'LYRUFHG6HSDUDWHG b b b 0DUULHG b b b 6LQJOH b b b :LGRZHG b b b b +DYH &KLOGUHQ b b b 0HDQ 1XPEHU RI .LGV 1RWHV D,QFOXGHV IHPDOH DQG PDOH ,QGHSHQGHQWV E,QFOXGHV IHPDOH ,QGHSHQGHQWV &OQFOXGHV PDOH ,QGHSHQGHQWV DQG PDOH 6RFLDOLVWV

PAGE 131

RQ WKH VDPSOH GDWD DQG UHSRUWV WKH TXDQWLWDWLYH ILQGLQJV RI WKLV UHVHDUFK ,QFUHDVHG 3HUFHQWDJH RI )HPDOH /HJLVODWRUV DQG WKH 6XEVWDQWLYH 5HSUHVHQWDWLRQ RI :RPHQnV 7UDGLWLRQDO 3ROLF\ 7KH ILUVW K\SRWKHVLV RI WKLV UHVHDUFK VWDWHV WKDW DV WKH SHUFHQWDJH RI IHPDOH VWDWH OHJLVODWRUV LQ D VWDWH LQFUHDVHV ZRPHQ SURYLGH LQFUHDVLQJO\ VXEVWDQWLYH JHQGHU UHODWHG UHSUHVHQWDWLRQ IRU ZRPHQnV WUDGLWLRQDO SROLF\ FRQFHUQV WKDW GLIIHUV IURP UHSUHVHQWDWLRQ E\ PDOH VWDWH OHJLVODWRUV 7KH QXOO K\SRWKHVLV FRXOG QRW EH UHMHFWHG DQG WKHUHIRUH K\SRWKHVLV RQH ZDV QRW VXSSRUWHG E\ WKH GDWD LQ WKLV UHVHDUFK $ WWHVW LQGLFDWHV IHPDOH OHJLVODWRUV GR VSRQVRU VLJQLILFDQWO\ PRUH SULRULW\ ELOOV LQ DUHDV RI ZRPHQnV WUDGLWLRQDO SROLFLHV WKDQ WKHLU PDOH FROOHDJXHV 7KHVH SROLF\ DUHDV LQFOXGH OHJLVODWLRQ FRQFHUQLQJ FKLOG DEXVH FKLOGUHQ DQG \RXWK FKLOG VXSSRUW FXOWXUDO DIIDLUV SXEOLF HGXFDWLRQ NLQGHUJDUWHQ WKURXJK JUDGH WZHOYHf VHUYLFHV IRU WKH HOGHUO\ DQG DJLQJ KXPDQ VHUYLFHV MXYHQLOH FULPH DQG SUROLIH LVVXHV 7KH SHUFHQW RI IHPDOH OHJLVODWRUV LQ WKH VWDWHV GXULQJ UDQJHG IURP D ORZ RI SHUFHQW LQ $ODEDPD WR D KLJK RI SHUFHQW LQ :DVKLQJWRQ $ FRUUHODWLRQ DQDO\VLV EHWZHHQ WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV LQ D VWDWH DQG f7KH 7 VWDWLVWLF IRU WKLV SURFHGXUH LV DW WKH S OHYHO

PAGE 132

WKH QXPEHU RI UHSRUWHG ELOOV VSRQVRUHG LQ ZRPHQnV SROLF\ DUHDV LQGLFDWHG WKH UHODWLRQVKLS ZDV QRW VLJQLILFDQW DW WKH S OHYHO 7KLV VXJJHVWV WKH GDWD GR QRW VXSSRUW K\SRWKHVLV RQH 7KH QXOO K\SRWKHVLV WKDW WKHUH LV QR VLJQLILFDQW UHODWLRQVKLS EHWZHHQ WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV DQG ELOOV VSRQVRUHG VXSSRUWLQJ ZRPHQnV WUDGLWLRQDO SROLF\ LVVXHV FDQ QRW EH UHMHFWHG 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU WKH SHUFHQW RI IHPDOH OHJLVODWRUV 7 S f ZDV QRW VLJQLILFDQW 7KH RYHUDOO PRGHO IDLOHG WR VLJQLILFDQWO\ H[SODLQ WKH YDULDQFH LQ VXSSRUW IRU ELOOV LQ ZRPHQnV WUDGLWLRQDO SROLF\ DUHDV 7KHUHIRUH WKH QXOO K\SRWKHVLV FDQ QRW EH UHMHFWHG +\SRWKHVLV RQH LV QRW VXSSRUWHG E\ WKH UHVHDUFK GDWD 7KH SHUFHQWDJH RI IHPDOH OHJLVODWRUV LV QRW D VLJQLILFDQWO\ VXIILFLHQW H[SODQDWLRQ IRU WKH YDULDQFH RI VXSSRUW IRU ELOOV VSRQVRUHG LQ ZRPHQnV WUDGLWLRQDO SROLF\ DUHDV )HPDOH OHJLVODWRUV UHJDUGOHVV RI WKHLU SROLWLFDO SDUW\ LGHQWLILFDWLRQ DUH PRUH OLNHO\ WKDQ PDOH OHJLVODWRUV WR VSRQVRU ELOOV LQ WKHVH DUHDV 1R VWDWLVWLFDOO\ VLJQLILFDQW GLIIHUHQFHV ZHUH IRXQG LQ WKH OHYHO RI VXSSRUW IRU ZRPHQnV SROLF\ LQ ELOOV VSRQVRUHG RU LQ SHUVRQDO OHJLVODWLYH 7KH 3HDUVRQ FRUUHODWLRQ FRHIILFLHQW ZDV QRW VLJQLILFDQW 5 S IRU FDVHVf O7KH PRGHO LQFOXGHG ERWK WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV LQ WKH VWDWH DQG VXSSRUW IRU VSHQGLQJ RQ WUDGLWLRQDO ZRPHQnV LVVXHV 1HLWKHU LQGLFDWRU ZDV VLJQLILFDQW 7KH PRGHO VWDWLVWLF ZDV ) S

PAGE 133

SULRULWLHV RQ ZRPHQnV LVVXHV EHWZHHQ 'HPRFUDWLF DQG 5HSXEOLFDQ ZRPHQ 6HYHUDO RWKHU YDULDEOHV DSSHDU WR EH PXFK PRUH VLJQLILFDQW WKDQ WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV RU HYHQ JHQGHU LQ H[SODLQLQJ VXSSRUW IRU ZRPHQnV WUDGLWLRQDO SROLF\ LQ VSRQVRUHG OHJLVODWLRQ 7KH PRVW VLJQLILFDQW RI WKHVH IRU ERWK JHQGHUV LV PHPEHUVKLS LQ DQG FDPSDLJQ OLQNDJHV WR IRUPDO ZRPHQnV DQG IHPLQLVW JURXSV :20*5283f RXWVLGH WKH OHJLVODWXUH /HJLVODWRUV ZLWK PRUH OLQNDJHV WR WKHVH JURXSV DUH PRUH OLNHO\ WR VSRQVRU ELOOV WKDW VXSSRUW ZRPHQnV WUDGLWLRQDO SROLFLHV UHJDUGOHVV RI WKHLU JHQGHU SDUW\ LGHQWLILFDWLRQ RU SROLWLFDO LGHRORJ\ ZKLFK GRHV QRW TXLWH UHDFK VLJQLILFDQFH LQ WKH PRGHOVf DV VKRZQ LQ 7DEOH RQ WKH QH[W SDJH 0RGHO RQH LQ 7DEOH LQGLFDWHV WKDW EHLQJ D IHPDOH OHJLVODWRU LV VLJQLILFDQW DW WKH S OHYHO DQG LV PRUH H[SODQDWRU\ WKDQ HLWKHU LGHRORJ\ RU EHLQJ D 'HPRFUDW 1R RWKHU YDULDEOH LQ PRGHO RQH LQFOXGLQJ EHLQJ D PHPEHU RI D ZRPHQnV FDXFXV RU WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV LQ WKH VWDWH 3(5&(17)f LV VLJQLILFDQW 7KH PRGHOnV ) VWDWLVWLF LV DW WKH RU S f VLJQLILFDQFH OHYHO ZLWK 1R VWDWLVWLFDOO\ VLJQLILFDQW GLIIHUHQFH EHWZHHQ 'HPRFUDWLF DQG 5HSXEOLFDQ ZRPHQ ZDV IRXQG LQ VXSSRUW RI ZRPHQnV WUDGLWLRQDO SROLFLHV LQ ELOOV VSRQVRUHG 7 S f RU LQ SHUVRQDO VXSSRUW IRU ZRPHQnV SROLF\ LVVXHV 7 S f +RZHYHU 5HSXEOLFDQ ZRPHQ DUH VLJQLILFDQWO\ OHVV VXSSRUWLYH RI PRUH IHPLQLVW SROLF\ WKDQ WKHLU 'HPRFUDWLF FRXQWHUSDUWV 7 S f

PAGE 134

7DEOH 6XSSRUW IRU :RPHQnV 3ROLFLHV LQ /HJLVODWLRQ 0XOWLYDULDWH 5HJUHVVLRQ 0RGHOV 6XSSRUW IRU :RPHQnV 7UDGLWLRQDO 3ROLFLHV LQ 3ULRULW\ /HJLVODWLRQ 6SRQVRUHG E\ 6WDWH /HJLVODWRUV :32/,&
PAGE 135

0RGHO WZR LQFOXGHV WKH YDULDEOH OLQNDJH WR ZRPHQnV JURXSV :20*5283f ZKLFK ZDV RPLWWHG IURP WKH ILUVW PRGHO ,W LV DOVR PRUH LQFOXVLYH DV JHQGHU UHSODFHV IHPDOH DQG SDUW\ LGHQWLILFDWLRQ UHSODFHV 'HPRFUDW 7KH SHUFHQWDJH RI IHPDOH OHJLVODWRUV YDULDEOH KDV EHHQ GURSSHG IURP WKLV PRGHO ,W IDLOHG WR DFKLHYH VLJQLILFDQFH LQ DQ\ RI WKHVH DQDO\VHV 0RGHO WZR LV VWURQJHU WKDW LV PRUH H[SODQDWRU\ WKDQ PRGHO RQH ZLWK DQ ) VWDWLVWLF RI VLJQLILFDQW DW WKH S OHYHO *HQGHU LV QR ORQJHU VLJQLILFDQW LQ WKLV PRGHO 7KH PRVW VLJQLILFDQW DQG H[SODQDWRU\ YDULDEOH LV OLQNDJHV WR ZRPHQnV JURXSV :20*5283f DW S f 3ROLWLFDO LGHRORJ\ LV VWURQJHU WKDQ JHQGHU RU SDUW\ LGHQWLILFDWLRQ DQG DOPRVW REWDLQV VLJQLILFDQFH DW S f 7KLV PRGHO VWUHVVHV WKH LPSRUWDQFH RI OLQNDJHV ZLWK IRUPDO ZRPHQnV RUJDQL]DWLRQV RXWVLGH WKH OHJLVODWXUH LQ H[SODLQLQJ VXSSRUW IRU VSRQVRULQJ OHJLVODWLRQ RQ ZRPHQnV SROLFLHV DPRQJ ERWK IHPDOH DQG PDOH OHJLVODWRUV /HJLVODWRUV ZKR DUH OHVV FRQVHUYDWLYH LQ LGHRORJ\ DQG KDYH PRUH PHPEHUVKLSV LQ DQG FDPSDLJQ OLQNDJHV WR ZRPHQnV JURXSV DUH VLJQLILFDQWO\ PRUH OLNHO\ WR VSRQVRU ELOOV EHQHILFLDO WR ZRPHQnV WUDGLWLRQDO LQWHUHVWV UHJDUGOHVV RI WKHLU JHQGHU RU SROLWLFDO SDUW\ LGHQWLILFDWLRQ 0RGHO WKUHH GURSV WKH JHQGHU YDULDEOH FRPSOHWHO\ 7KLV PRGHO LV ZHDNHU WKDQ HLWKHU PRGHO RQH RU WZR EXW ZRXOG EH DSSURSULDWH LQ FDVHV ZKHUH WKHUH LV QR JHQGHU GLIIHUHQFH

PAGE 136

,OO EHWZHHQ OHJLVODWRUV WKDW LV FRPSDULQJ WZR IHPDOHV RU WZR PDOHV WR RQH DQRWKHU 7KH OLQNDJH WR ZRPHQnV JURXSV YDULDEOH UHPDLQV WKH RQO\ VLJQLILFDQW LQGLFDWRU EXW LV VRPHZKDW OHVV H[SODQDWRU\ DW 7 DW WKH S OHYHO 1HLWKHU LGHRORJ\ QRU SROLWLFDO SDUW\ LGHQWLILFDWLRQ DFKLHYH VLJQLILFDQFH LQ WKLV PRGHO 2YHUDOO PRGHO WKUHH LV VLJQLILFDQW ZLWK D ) DW WKH S OHYHO 7KH FRQVLVWHQWO\ VLJQLILFDQW ILQGLQJV IRU WKH OLQNDJH WR ZRPHQnV JURXSV YDULDEOH DUH FRQVLVWHQW ZLWK WKHRULHV RI UHSUHVHQWLQJ ZRPHQnV FXOWXUH 'RHV WKH 3HUFHSWLRQ RI 6XSSRUW IRU :RPHQnV 3ROLF\ 5HVXOW LQ %LOOV 6XSSRUWLQJ :RPHQnV 3ROLF\" 7KH VHFRQG UHVHDUFK K\SRWKHVLV LV WKDW WKHUH LV D SRVLWLYH UHODWLRQVKLS EHWZHHQ WKH SHUFHSWLRQ RI D GLVWLQFWLYH ZRPHQnV SROLF\ DJHQGD :332/,&
PAGE 137

VLJQLILFDQW FRUUHODWLRQ EHWZHHQ WKH SHUFHSWLRQ RI D ZRPHQnV SROLF\ DJHQGD DQG VSRQVRULQJ ELOOV LQ WKLV DUHD $ UHJUHVVLRQ DQDO\VLV VKRZV WKHUH LV D VLJQLILFDQW DQG SRVLWLYH H[SODQDWRU\ UHODWLRQVKLS EHWZHHQ WKH SHUFHSWLRQ RI D ZRPHQnV SROLF\ DJHQGD DQG WKH DFWXDO VSRQVRUVKLS RI ELOOV LQ WKLV DUHD 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU SHUFHLYHG ZRPHQnV SROLF\ DJHQGD LV VLJQLILFDQW 7 S f 7KH FRHIILFLHQW IRU JHQGHU LV VLJQLILFDQW EXW QHJDWLYH UHIOHFWLQJ WKDW JHQGHU LV FRGHG RQH IRU IHPDOH DQG WZR IRU PDOH 7 S f 7KH RYHUDOO PRGHO VWDWLVWLF ) LV VLJQLILFDQW DW WKH S OHYHO IRU FDVHV ZLWK DQ 5 RI H[SODLQLQJ QLQH SHUFHQW RI WKH YDULDQFH LQ VXSSRUW IRU ZRPHQnV WUDGLWLRQDO SROLFLHV LQ ELOOV VSRQVRUHG 7KHVH ILQGLQJV DOORZ UHMHFWLQJ WKH QXOO K\SRWKHVLV 7KHUH LV D SRVLWLYH DQG VLJQLILFDQW UHODWLRQVKLS EHWZHHQ WKH SHUFHSWLRQ RI D ZRPHQnV SROLF\ DJHQGD DQG DFWLRQ VSRQVRULQJ ELOOV LQ WKDW DUHD E\ IHPDOH OHJLVODWRUV 7R EHWWHU XQGHUVWDQG WKH G\QDPLFV RI WKH UHODWLRQVKLS EHWZHHQ D SHUFHLYHG DQG DFWXDO ZRPHQnV SROLF\ DJHQGD ERWK DUH GHSHQGHQW YDULDEOHV LQ WKLV UHVHDUFKf WKH PRGHOV LQ 7DEOH H[DPLQH WKUHH LPSRUWDQW LQGHSHQGHQW H[SODQDWRU\ YDULDEOHV %HLQJ IHPDOH VXSSRUW IRU VSHQGLQJ LQ ZRPHQnV WUDGLWLRQDO DUHDV 63(1':20f DQG EHLQJ LQYROYHG LQ D f7KH 3HDUVRQ FRUUHODWLRQ FRHIILFLHQW LV 5 DW WKH S OHYHO ZLWK FDVHV

PAGE 138

ZRPHQnV OHJLVODWLYH FDXFXV FDQ FRQWULEXWH WR OHJLVODWRUV EHLQJ PRUH OLNHO\ WR KDYH SHUVRQDO OHJLVODWLYH SULRULWLHV LQ ZRPHQnV SROLF\ DUHDV 7KUHH LQGHSHQGHQW H[SODQDWRU\ YDULDEOHV DUH VWDWLVWLFDOO\ VLJQLILFDQW LQ PRGHO RQH RI 7DEOH EHORZ 7DEOH 3HUFHLYHG 6XSSRUW IRU :RPHQnV 3ROLF\ $JHQGD 0XOWLYDULDWH 5HJUHVVLRQ 0RGHOV 3HUVRQDO 3ROLF\ 3ULRULWLHV WKDW 6XSSRUW :RPHQnV 3ROLFLHV :332/,&
PAGE 139

%HLQJ D IHPDOH OHJLVODWRU LV WKH VWURQJHVW LQGHSHQGHQW YDULDEOH LQ H[SODLQLQJ WKH YDULDQFH RI OHJLVODWRUVn SHUVRQDO VXSSRUW IRU WUDGLWLRQDO ZRPHQnV LVVXHV LQ WKHLU SHUVRQDO OHJLVODWLYH SULRULWLHV $Q LQGH[ RI VXSSRUW IRU LQFUHDVHG VSHQGLQJ RQ WUDGLWLRQDO ZRPHQnV LVVXHV 63(1':20f LV VLJQLILFDQW EXW VOLJKWO\ OHVV H[SODQDWRU\ %HLQJ D PHPEHU RI D ZRPHQnV OHJLVODWLYH FDXFXV LV DOVR VLJQLILFDQW DW WKH S OHYHO 6XSSRUW IRU IHPLQLVW SROLFLHV )(0,1';f LV QRW TXLWH VWDWLVWLFDOO\ VLJQLILFDQW LQ WKLV PRGHO 7KH PRGHO VWDWLVWLF ) S KDV D 5 RI ZLWK FDVHV LQ WKH PRGHO 0RGHO WZR LV YHU\ VLPLODU EXW UHSODFHV WKH IHPDOH YDULDEOH ZLWK JHQGHU 7KLV VWUHQJWKHQV WKH VLJQLILFDQFH RI WKH JHQGHU YDULDEOH ZKLFK GRPLQDWHV WKH PRGHO 7KH RWKHU VLJQLILFDQW H[SODQDWRU\ YDULDEOH FRQWLQXHV WR EH VXSSRUW IRU LQFUHDVHG VSHQGLQJ LQ WUDGLWLRQDO ZRPHQnV SROLF\ DUHDV ,Q WKH DEVHQFH RI WKH ZRPHQnV FDXFXV YDULDEOH WKH OLQNDJH WR ZRPHQnV JURXSV YDULDEOH LQFUHDVHV LQ VWUHQJWK EXW IDLOV WR 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU EHLQJ D IHPDOH OHJLVODWRU LV 7 DW WKH S VLJQLILFDQFH OHYHO OV7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU VSHQGLQJ RQ WUDGLWLRQDO ZRPHQnV LVVXHV LV 7 DW WKH S OHYHO 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU EHLQJ D PHPEHU RI D ZRPHQnV OHJLVODWLYH FDXFXV LV 7 S 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU VXSSRUW RI IHPLQLVW SROLFLHV LV QRW VLJQLILFDQW LQ PRGHO RQH DW WKH S OHYHO 7 DW WKH S f 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU JHQGHU LQ PRGHO WZR LV 7 DW WKH S OHYHO IRU FDVHV

PAGE 140

PHHW VWDWLVWLFDO VLJQLILFDQFH DW WKH S OHYHO 7KH VWDWLVWLF IRU PRGHO WZR LV ) DW WKH S OHYHO DQG KDV D 5 RI ZLWK FDVHV 0RGHO WKUHH LQ 7DEOH RPLWV WKH JHQGHU YDULDEOH DQG WKHUHIRUH LV ZHDNHU WKDQ HLWKHU PRGHOV RQH RU WZR ,W FRXOG EH DQ DSSURSULDWH PRGHO IRU SUHGLFWLQJ DQG H[SODLQLQJ YDULDQFH LQ VXSSRUW RI SHUFHLYHG ZRPHQnV SROLF\ EHWZHHQ WZR OHJLVODWRUV RI WKH VDPH JHQGHU ,W LV LQFOXGHG KHUH WR KLJKOLJKW WKH YHU\ VLJQLILFDQW LQFUHDVH LQ WKH VWUHQJWK RI WKH ZRPHQnV FDXFXV YDULDEOH ,Q WKH DEVHQFH RI D JHQGHU YDULDEOH PHPEHUVKLS LQ D ZRPHQnV OHJLVODWLYH FDXFXV EHFRPHV WKH VWURQJHVW LQGLFDWRU DW 7 DW WKH S OHYHO %HLQJ D IHPDOH OHJLVODWRU DQG EHLQJ D PHPEHU RI D ZRPHQnV FDXFXV DUH WZR GLVWLQFW YDULDEOHV -XVW RYHU KDOI SHUFHQW RI IHPDOH OHJLVODWRUV DUH FDXFXV PHPEHUV DQG ZRPHQnV FDXFXV PHPEHUV DUH PDOH OHJLVODWRUV 6XSSRUW IRU VSHQGLQJ RQ WUDGLWLRQDO ZRPHQnV SROLF\ LVVXHV UHPDLQV SRVLWLYH DQG VLJQLILFDQW 0RGHO WKUHH LV VLJQLILFDQW ZLWK ) DW WKH S OHYHO ZLWK D 5 RI ZLWK FDVHV ,Q FRQFOXVLRQ IHPDOH OHJLVODWRUV ZKR VXSSRUW LQFUHDVHG VSHQGLQJ RQ WUDGLWLRQDO ZRPHQnV LVVXHV DUH PRUH OLNHO\ WR KDYH SHUVRQDO OHJLVODWLYH SULRULWLHV VXSSRUWLQJ ZRPHQnV 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU OLQNDJHV WR ZRPHQnV JURXSV UHPDLQV QRQVLJQLILFDQW DW 7 S 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU 63(1':20 LQ PRGHO WKUHH LV 7 DW WKH S OHYHO

PAGE 141

SROLF\ FRQFHUQV UHJDUGOHVV RI WKHLU LGHRORJ\ RU SROLWLFDO SDUW\ DIILOLDWLRQ /HJLVODWRUV ZKR DUH PHPEHUV RI ZRPHQn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n DW WKH VLJQLILFDQFH OHYHO

PAGE 142

OHJLVODWRUnV EXLOGLQJ VXSSRUWLYH SROLF\ FRDOLWLRQV WR SDVV WKHLU SULRULW\ ELOOV 7DEOH VKRZV PHPEHUV RI ZRPHQnV FDXFXVHV DUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ RWKHU OHJLVODWRUV WR IRUP VXSSRUWLYH SROLF\ FRDOLWLRQV 7KLV UHODWLRQVKLS LV VLJQLILFDQW LQ ERWK PRGHOV RQH DQG WZR RI 7DEOH 7 S f &RQVHUYDWLYH FDXFXV PHPEHUV DUH VLJQLILFDQWO\ OHVV OLNHO\ WR IRUP VXSSRUWLYH SROLF\ FRDOLWLRQV WKDQ RWKHU OHJLVODWRUV 7 S f 6HSDUDWH WHVWLQJ RI YDULRXV SRWHQWLDO SROLF\ FRDOLWLRQ SDUWQHU JURXSV UHYHDOHG VLJQLILFDQW JHQGHU GLIIHUHQFHV LQ OHJLVODWRUVn FKRLFHV RI FRDOLWLRQ SDUWQHU JURXSV )HPDOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ PDOHV WR IRUP VXSSRUWLYH SROLF\ FRDOLWLRQV ZLWK $IULFDQ$PHULFDQV +LVSDQLFV RWKHU ZRPHQ HQYLURQPHQWDOLVWV DQG RWKHU PLQRULWLHV 0DOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WR IRUP SROLF\ FRDOLWLRQV ZLWK EXVLQHVV LQWHUHVWV /HJLVODWRUV UHJDUGOHVV RI JHQGHU PRVW IUHTXHQWO\ ZRUN LQ ELSDUWLVDQ FRDOLWLRQV WR JHW WKHLU SULRULW\ ELOOV SDVVHG 7KHUH ZDV QR VLJQLILFDQW JHQGHU GLIIHUHQFH LQ SROLF\ FRDOLWLRQV ZLWK PHPEHUV RI WKH RSSRVLWH SROLWLFDO SDUW\ ,Q RUGHU RI VWUHQJWK WKH VLJQLILFDQW SDUWLDO UHJUHVVLRQ FRHIILFLHQWV IRU IHPDOH OHJLVODWRUV DQG WKHLU FRDOLWLRQ SDUWQHU JURXSV DUH 7 DW S IRU FRDOLWLRQV ZLWK RWKHU ZRPHQ 7 S IRU HQYLURQPHQWDOLVWV 7 S IRU $IULFDQ$PHULFDQV 7 DW S IRU +LVSDQLFV DQG 7 IRU RWKHU PLQRULWLHV 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU FRDOLWLRQV EHWZHHQ PDOH OHJLVODWRUV DQG EXVLQHVV JURXSV LV 7 DW WKH S OHYHO

PAGE 143

7DEOH )UHTXHQF\ RI &RDOLWLRQ %XLOGLQJ 0XOWLYDULDWH 5HJUHVVLRQ 0RGHOV )UHTXHQF\ RI %XLOGLQJ 6XSSRUWLYH &RDOLWLRQV 7R 3DVV 3ULRULW\ /HJLVODWLRQ &2$/,7,21 %8,/',1* 72 6833257 35,25,7< %,//6f 9$5,$%/( 02'(/ 02'(/ &2()),&,(17 &2()),&,(17 &2167$17 %/$&. &$8&86 0(0%(5 &216(59$7,9( &$8&86 0(0%(5 S f S f *(1'(5 S f ,'(2/2*< /(*,6/$725n6 6$7,6)$&7,21 3$57< &2+(6,21 3$57<,' :20(1n6 &$8&86 0(0%(5 S f S f )9DOXH RI PRGHO 6LJQLILFDQFH RI 0RGHO S! S! 5 1XPEHU RI /HJLVODWRUV r S rr S rrr S 3DUW\LG *HQGHU 'HPRFUDW 5HSXEOLFDQ IHPDOH ‘ PDOH ,GHRORJ\ YHU\ OLEHUDO YHU\ FRQVHUYDWLYH /HJLVODWRUV RI ERWK JHQGHUV ZHUH PRVW OLNHO\ WR ZRUN LQ FRDOLWLRQ ZLWK $IULFDQ$PHULFDQV RQ FLYLO ULJKWV HGXFDWLRQ

PAGE 144

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nV LVVXHV GRPHVWLF YLROHQFH KXPDQ VHUYLFHV KHDOWK FDUH MREV FUHDWLRQ SUR FKRLFH LVVXHV ZHOIDUH DQG ZRPHQnV LVVXHV 7KH PRVW VLJQLILFDQW JHQGHU GLIIHUHQFH LQ FRDOLWLRQ JURXSV ZDV WKH PXFK KLJKHU IUHTXHQF\ RI ZRPHQ IRUPLQJ ELSDUWLVDQ IHPDOH FRDOLWLRQV :RPHQ ZRUNHG WRJHWKHU RQ D ZLGH VSHFWUXP RI SROLF\ LVVXHV 7KH\ PRVW IUHTXHQWO\ ZRUNHG LQ FRDOLWLRQV RQ FKLOGUHQnV LVVXHV f KHDOWK FDUH f SURFKRLFH LVVXHV f HGXFDWLRQ f ZRPHQnV LVVXHV LQFOXGLQJ JHQGHU HTXLW\ f ZHOIDUH UHIRUP f DQG GRPHVWLF YLROHQFH f )HPDOH OHJLVODWRUV LQ WKH V GR QRW SURYLGH GHVFULSWLYH V\PEROLF RU SDVVLYH EHQFK ZDUPLQJ SROLF\ UHSUHVHQWDWLRQ 7KH\ DUH DV DFWLYHO\ LQYROYHG DV WKHLU PDOH FROOHDJXHV LQ WKH VXEVWDQWLYH OHJLVODWLYH SURFHVV RI EXLOGLQJ VXSSRUWLYH SROLF\ FRDOLWLRQV WR SDVV WKHLU SULRULW\ OHJLVODWLRQ )HPDOH OHJLVODWRUV DUH PXFK PRUH OLNHO\ WR

PAGE 145

QHWZRUN WRJHWKHU LQ ELSDUWLVDQ VLQJOH JHQGHU FRDOLWLRQV DQG WR EXLOG SROLF\ FRDOLWLRQV ZLWK HWKQLF PLQRULWLHV $UH )HPDOH /HJLVODWRUV 0RUH 6XFFHVVIXO 6SRQVRUV RI :RPHQnV 3ROLF\ %LOOV" 7KH IRXUWK UHVHDUFK K\SRWKHVLV VWDWHV IHPDOH OHJLVODWRUV ZLOO EH VLJQLILFDQWO\ PRUH HIIHFWLYH VSRQVRUV RI ZRPHQnV WUDGLWLRQDO SROLF\ ELOOV WKDQ WKHLU PDOH FROOHDJXHV (IIHFWLYHQHVV LV PHDVXUHG E\ WKH DFWXDO QXPEHU RI ZRPHQnV SROLF\ ELOOV D OHJLVODWRU VSRQVRUV WKDW VXFFHVVIXOO\ DUH UHIHUUHG RXW RI FRPPLWWHH SDVV WKH FKDPEHU DQG SDVV WKH OHJLVODWXUH )HPDOH OHJLVODWRUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ WKHLU PDOH FROOHDJXHV WR SDVV PRUH ELOOV LQ ZRPHQnV SROLF\ DUHDV 7 ) S f 7KHUHIRUH WKH QXOO K\SRWKHVLV FDQ EH UHMHFWHG DQG K\SRWKHVLV IRXU LV VXSSRUWHG E\ WKH GDWD EDVHG RQ JHQGHU GLIIHUHQFHV LQ WKH QXPEHU RI ZRPHQnV WUDGLWLRQDO SROLF\ ELOOV VXFFHVVIXOO\ SDVVHG E\ WKH OHJLVODWXUHV (IIHFWLYHQHVV FRXOG KDYH DOVR EHHQ PHDVXUHG DV WKH SHUFHQW VXFFHVV UDWH RI ELOOV VSRQVRUHG LQ ZRPHQnV WUDGLWLRQDO SROLF\ DUHDV ZKLFK SDVV WKH OHJLVODWXUH 7KLV DOWHUQDWLYH PHWKRG ZDV WHVWHG RQ WKH GDWD EXW VXEVHTXHQWO\ UHMHFWHG DV OHVV SUHFLVH ,W KDV D VHYHUH OLPLWDWLRQ ZKLFK SRWHQWLDOO\ OHDG WR IDXOW\ FRQFOXVLRQV UHVXOWLQJ IURP $ WRWDO RI ZRPHQnV SROLF\ ELOOV VSRQVRUHG E\ OHJLVODWRUV LQ WKLV VDPSOH ZHUH SDVVHG GXULQJ WKH VHVVLRQV

PAGE 146

FROODSVLQJ GDWD DQG UHGXFLQJ YDULDQFH QHFHVVDU\ IRU WHVWLQJ JHQGHU GLIIHUHQFHV RI PHDQV /HJLVODWRUV ZLWK D RQH KXQGUHG SHUFHQW VXFFHVV UDWH PD\ KDYH VSRQVRUHG RQH WZR RU WKUHH ELOOVJHWWLQJ HDFK ELOO SDVVHG 7KHVH OHJLVODWRUV ZLOO DOO DSSHDU LGHQWLFDO DQG HTXDOO\ VXFFHVVIXO %XW OHJLVODWRUV VSRQVRULQJ WKUHH ELOOV DUH DEOH WR JHW WZR PRUH ZRPHQnV SROLF\ ELOOV SDVVHG WKDQ WKHLU HTXDOO\ VXFFHVVIXO FRXQWHUSDUW ZKR VSRQVRUHG RQO\ RQH ELOO WKDW SDVVHG $V H[DPSOH DPRQJ WKH OHJLVODWRUV IHPDOHV DQG PDOHVf VSRQVRULQJ ZRPHQnV SROLF\ ELOOV PDOH OHJLVODWRUV ZHUH QRW VLJQLILFDQWO\ OHVV VXFFHVVIXO WKDQ IHPDOHV LQ JHWWLQJ WKHLU ZRPHQnV SROLF\ ELOOV SDVVHG 7 S f +RZHYHU WKH VLJQLILFDQWO\ KLJKHU QXPEHU RI ZRPHQnV SROLF\ ELOOV SURSRVHG DQG SDVVHG E\ ZRPHQ DW WKH VDPH VXFFHVV UDWH UHVXOWHG LQ PRUH ZRPHQnV SROLF\ ELOOV EHLQJ SDVVHG E\ IHPDOH OHJLVODWRUV 7KLV GLIIHUHQFH ZRXOG QRW EH REYLRXV IURP XVLQJ WKH VXFFHVV SDVVDJH UDWH VWDWLVWLF 7KHUH ZDV QR VLJQLILFDQW JHQGHU GLIIHUHQFH DPRQJ WKH OHJLVODWRUV IHPDOHV DQG PDOHVf LQ WKH QXPEHU

PAGE 147

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f *HQGHUQHXWUDO SROLF\ DUHDV LQFOXGHG DOO DUHDV LQ ZKLFK OHJLVODWRUV VSRQVRUHG WKHLU WKUHH SULRULW\ ELOOV H[FOXGLQJ WKRVH JHQGHUHG SROLFLHV SUHYLRXVO\ GHILQHG LQ WKLV UHVHDUFK WR EH SDUW RI HLWKHU WKH ZRPHQnV WUDGLWLRQDO SROLF\ DJHQGD RU WKH IHPLQLVW SROLF\ DJHQGD :RPHQnV KHDOWK FDUH DQG SXEOLF HGXFDWLRQ NLQGHUJDUWHQ WKURXJK KLJK VFKRROf DUH RQ WKH ZRPHQnV SROLF\ DJHQGD %XW SXEOLF KHDOWK LVVXHV KHDOWK FDUH UHIRUP KLJKHU HGXFDWLRQ DQG HGXFDWLRQ )HPLQLVW SROLF\ LVVXHV LQ WKLV UHVHDUFK LQFOXGH FLYLO ULJKWV GRPHVWLF YLROHQFH HQYLURQPHQWDO LVVXHV HWKLFV UHIRUP IDPLO\ ODZ IDPLO\ SODQQLQJ DQG SUHYHQWLQJ WHHQ SUHJQDQF\ LQFUHDVLQJ PLQLPXP ZDJH SD\ DQG JHQGHU HTXLW\ LVVXHV SURFKRLFH VH[XDO KDUDVVPHQW DQG YLFWLPVn ULJKWV 1R VLJQLILFDQW JHQGHU GLIIHUHQFH LQ WKH QXPEHU RI IHPLQLVW ELOOV SDVVHG E\ WKH OHJLVODWXUH ZDV IRXQG 7 ZLWK )n DW WKH S f

PAGE 148

IXQGLQJSURSHUW\ WD[ LVVXHV DUH LQFOXGHG DPRQJ WKH VHYHQW\ QRQJHQGHUHG SROLF\ DUHDV *HQGHUHG ELOOV ZHUH H[FOXGHG 7$%/( 6XFFHVV LQ 3DVVLQJ *HQGHU1HXWUDO %LOOV 7KURXJK WKH /HJLVODWXUH 0XOWLYDULDWH 5HJUHVVLRQ 0RGHOV 68&&(66 ,1 3$66,1* *(1'(51(875$/ %,//6f 9$5,$%/( 02'(/ &2()),&,(17 02'(/ &2()),&,(17 02'(/ &2()),&,(17 &2167$17 &200,77(( &+$,5 )(0$/( ,'(2/2*< 0$/( 3$57< 927,1* &2+(6,21 5(38%/,&$1 :,11,1* 927( 0$5*,1 /$67 (/(&7,21 r S f r S f r )9DOXH RI PRGHO 6LJQLILFDQFH RI 0RGHO 5 1XPEHU RI /HJLVODWRUV 1RWH r S *HQGHU IHPDOH PDOH IURP WKH FDOFXODWLRQ RI QXPEHU RI ELOOV SDVVHG WKH OHJLVODWXUH DQG WKHLU SDVVDJH ZDV H[FOXGHG IURP WKH FRPSXWHG VXFFHVV UDWH RI SDVVLQJ SULRULW\ ELOOV

PAGE 149

7WHVWV IRU WKH GLIIHUHQFH RI PHDQV LQGLFDWH WKHUH LV QR VWDWLVWLFDOO\ VLJQLILFDQW JHQGHU GLIIHUHQFH EHWZHHQ OHJLVODWRUV LQ WKH QXPEHU RI WKHLU QRQJHQGHUHG SULRULW\ ELOOV WKDW SDVV WKH OHJLVODWXUH 7 S f $ WRWDO RI PDOH OHJLVODWRUV GLG SDVV PRUH QRQJHQGHUHG SULRULW\ ELOOV f WKDQ WKHLU IHPDOH FROOHDJXHV f EXW WKH JHQGHU GLIIHUHQFH RI WKH PHDQ QXPEHU RI ELOOV SDVVHG E\ OHJLVODWRUV ZDV QRW VLJQLILFDQW 5HJUHVVLRQ DQDO\VLV LQ 7DEOH VKRZ WKH JHQGHU YDULDEOHV PDOH DQG IHPDOH IDLO WR VLJQLILFDQWO\ H[SODLQ WKH YDULDQFH LQ OHJLVODWRUVn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n S

PAGE 150

f )HPDOH OHJLVODWRUV LQ WKLV VDPSOH DUH VWDWLVWLFDOO\ DV OLNHO\ DV WKHLU PDOH FRXQWHUSDUWV WR JHW WKHLU SULRULW\ JHQGHUQHXWUDO SROLF\ ELOOV SDVVHG LQ WKH OHJLVODWXUH 2Q DYHUDJH IHPDOH OHJLVODWRUV LQ ZHUH DV HIIHFWLYH DV WKHLU PDOH FROOHDJXHV LQ VSRQVRULQJ DQG SDVVLQJ WKHLU OHJLVODWLYH SULRULW\ ELOOV LQ D ZLGH GLYHUVLW\ RI QRQJHQGHUHG SXEOLF SROLF\ DUHDV 7KH 3HUFHLYHG (IIHFWLYHQHVV RI :RPHQnV /HJLVODWLYH &DXFXVHV DQG 6XSSRUW IRU WKH )HPLQLVW 3ROLF\ $JHQGD +\SRWKHVLV VL[ VWDWHV WKDW EHLQJ D PHPEHU RI DQ HIIHFWLYH ZRPHQnV OHJLVODWLYH FDXFXV LV SRVLWLYHO\ UHODWHG WR PHPEHUVn SHUVRQDO VXSSRUW IRU IHPLQLVW SXEOLF SROLF\ LVVXHV 7KH GDWD RQO\ SDUWLDOO\ VXSSRUW WKLV K\SRWKHVLV WKH QXOO K\SRWKHVLV FDQ QRW EH UHMHFWHG 7KHUH LV QRW D VLJQLILFDQW SRVLWLYH UHODWLRQVKLS EHWZHHQ EHLQJ D PHPEHU RI DQ HIIHFWLYH ZRPHQnV OHJLVODWLYH FDXFXV DQG SHUVRQDO VXSSRUW IRU IHPLQLVW SROLFLHV 7KH GDWD LQGLFDWH WKH K\SRWKHVL]HG UHODWLRQVKLS LV SRVLWLYH DQG VLJQLILFDQW LQ H[SODLQLQJ WKH YDULDQFH LQ SHUVRQDO VXSSRUW IRU IHPLQLVW SROLFLHV RQO\ DPRQJ 'HPRFUDWLF ZRPHQnV FDXFXV PHPEHUV 7KH SHUFHLYHG HIIHFWLYHQHVV RI D ZRPHQnV OHJLVODWLYH FDXFXV LV PHDVXUHG E\ LWV LQIOXHQFH LQ ILYH DUHDV %RWK 0DOH OHJLVODWRUV RQ DYHUDJH DUH VOLJKWO\ PRUH VXFFHVVIXO bf WKDQ WKHLU IHPDOH FRXQWHUSDUWV bf LQ JHWWLQJ WKHLU SULRULW\ QRQJHQGHUHG ELOOV SDVVHG LQ WKHLU OHJLVODWXUH

PAGE 151

JHQGHUV SHUFHLYHG ZRPHQnV FDXFXVHV DV PRVW LQIOXHQWLDO LQ KDYLQJ PRGHUDWH SRVLWLYH HIIHFWV RQ EULQJLQJ QHZ LWHPV FRQFHUQLQJ ZRPHQ DQG FKLOGUHQ WR WKH OHJLVODWLYH DJHQGD UHSUHVHQWLQJ ZRPHQnV SROLF\ LQWHUHVWV DQG LQIOXHQFLQJ SROLF\ RXWFRPHV WKDW DIIHFW ZRPHQ DQG FKLOGUHQ :RPHQnV FDXFXVHV KDG RQO\ D OLWWOH LQIOXHQFH RQ JHWWLQJ PRUH ZRPHQ DSSRLQWHG WR LPSRUWDQW FRPPLWWHHV DQG JHWWLQJ PRUH NLQGV RI FLWL]HQVn JURXSV LQYROYHG LQ WKH SROLF\ PDNLQJ SURFHVV 7WHVWV RQ WKHVH LWHPV LQGLFDWH VLJQLILFDQW JHQGHU GLIIHUHQFHV LQ IRXU RI WKH ILYH LQIOXHQFH DUHDV 0DOH OHJLVODWRUV ZHUH VLJQLILFDQWO\ PRUH OLNHO\ WR SHUFHLYH WKH FDXFXV DV HIIHFWLYH LQ JHWWLQJ PRUH ZRPHQ DSSRLQWHG WR LPSRUWDQW FRPPLWWHHV 7KLV PD\ EH UHODWHG WR WKH LQFUHDVLQJ QXPEHU RI VWDWH OHJLVODWXUHV WKDW KDYH HQDFWHG JHQGHU SDULW\ RU EDODQFH OHJLVODWLRQ IRU FRPPLWWHH DSSRLQWPHQWV 7KHVH ELOOV RIWHQ RULJLQDWHG IURP ZRPHQnV OHJLVODWLYH FDXFXV SURSRVDOV )HPDOH OHJLVODWRUV ZHUH VLJQLILFDQWO\ PRUH OLNHO\ WR SHUFHLYH ZRPHQnV FDXFXVHV DV PRUH LQIOXHQWLDO LQ UHSUHVHQWLQJ ZRPHQnV SROLF\ LQWHUHVWV DQG FRQFHUQV EULQJLQJ QHZ LWHPV FRQFHUQLQJ FKLOGUHQ DQG ZRPHQ WR WKH OHJLVODWLYH DJHQGD DQG LQ LQIOXHQFLQJ SROLF\ RXWFRPHV LQ WKHVH DUHDV 7KHUH ZDV QR VLJQLILFDQW JHQGHU 7KH VWDWLVWLF IRU WKLV UHODWLRQVKLS LV 7 ZLWK DQ )n DW WKH S OHYHO 6WDWLVWLFV IRU LQIOXHQFLQJ SROLF\ RXWFRPHV 7 f DQG EHWWHU UHSUHVHQWLQJ ZRPHQ 7 f DUH ERWK SRVLWLYH DQG VLJQLILFDQW DW S OHYHO 7KH 7 IRU QHZ DJHQGD LWHPV LV VLJQLILFDQW DW S

PAGE 152

GLIIHUHQFH LQ WKH SHUFHSWLRQ RI D ZRPHQnV FDXFXVn OLPLWHG LQIOXHQFH LQ JHWWLQJ PRUH NLQGV RI FLWL]HQVn JURXSV LQYROYHG LQ WKH SROLF\ PDNLQJ SURFHVV 7KH SUHVHQFH RI D ZRPHQnV OHJLVODWLYH FDXFXV LV SRVLWLYHO\ DQG VLJQLILFDQWO\ FRUUHODWHG ZLWK WKH RYHUDOO SHUFHLYHG HIIHFWLYHQHVV RI IHPDOH OHJLVODWRUV DV D JURXS LQ WKHLU OHJLVODWXUH 5 S f $V WKH SHUFHLYHG LQIOXHQFH RI D ZRPHQnV FDXFXV LQFUHDVHV LQ WKHVH ILYH DUHDV WKLV UHODWLRQVKLS VWUHQJWKHQV 5 DW S f 5HJUHVVLRQ DQDO\VLV SUHVHQWHG LQ 7DEOH H[DPLQH ZKLFK RUJDQL]DWLRQDO DVSHFWV RI D ZRPHQnV FDXFXV FRQWULEXWH WR LWV SHUFHLYHG HIIHFWLYHQHVV 0RGHO RQH LQGLFDWHV WKH PRVW VLJQLILFDQW IDFWRU FRQWULEXWLQJ WR D FDXFXVn SHUFHLYHG HIIHFWLYHQHVV LV KDYLQJ D IRUPDO RUJDQL]HG VWUXFWXUH DV RSSRVHG WR EHLQJ DQ LQIRUPDO QHWZRUN 7 S f :RPHQnV FDXFXVHV YDU\ LQ OHYHO RI IRUPDO RUJDQL]DWLRQ 6RPH DUH VR LQIRUPDO WKDW PHPEHUV PHHW RQO\ RQFH MXVW EHIRUH WKH DQQXDO VHVVLRQ LQ D SULPDULO\ VRFLDO JDWKHULQJ WR JUHHW HDFK RWKHU DQG QHWZRUN ,Q WKH 1HZ +DPSVKLUH ZRPHQnV OHJLVODWLYH FDXFXVn PDMRU SURJUDP IRU WKH \HDU ZDV VSRQVRULQJ D VRFLDO WHD IRU WKH VWDWHnV ILUVW ODG\ ,Q 1HZ +DPSVKLUH HOHFWHG D IHPDOH JRYHUQRU -HDQQH 6KDKHHQf 2WKHU FDXFXVHV DUH IRUPDO RUJDQL]DWLRQV ZLWK HOHFWHG RIILFHUV DQ H[HFXWLYH DQG OHJLVODWLYH FRPPLWWHH V\VWHP DQG ZHHNO\ WR PRQWKO\ PHHWLQJV GXULQJ WKH VHVVLRQ

PAGE 153

7DEOH 7KH 3HUFHLYHG (IIHFWLYHQHVV RI :RPHQnV /HJLVODWLYH 3ROLWLFDO &DXFXVHV 0XOWLYDULDWH 5HJUHVVLRQ 0RGHOV 3HUFHSWLRQ RI WKH (IIHFWLYHQHVV RI :RPHQnV /HJLVODWLYH 3ROLWLFDO &DXFXVHV 3(5&(,9(' ())(&7,9(1(66 2) :20(1n6 &$8&86f 9DULDEOH 02'(/ &2()),&,(17 02'(/ &2()),&,(17 02'(/ &2()),&,(17 &RQVWDQW %,3$57,6$1 :20(1n6 &$8&86 32/,&< $*(1'$ rrrr S f rrrr S f )250$/ 2UJDQL]DWLRQ rrr S f &$8&86 /($'(56+,3 r S f 0(1 0(0%(56 5(*8/$5 0((7,1*6 0(0%(5 2) :20(1n6 &$8&86 rrr S f r S f 5 1XPEHU RI /HJLVODWRUV 1RWH r S rrr S rr S m rrrr S 0RGHO RQH DOVR LQGLFDWHV WKDW FDXFXV PHPEHUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ QRQPHPEHUV WR SHUFHLYH WKH FDXFXV DV HIIHFWLYH 7 S f %HLQJ D PHPEHU RI D ZRPHQnV OHJLVODWLYH FDXFXV DQG WKH FDXFXV EHLQJ D

PAGE 154

IRUPDO RUJDQL]DWLRQ H[SODLQ QHDUO\ WHQ SHUFHQW RI WKH YDULDQFH 5 f LQ WKH SHUFHLYHG HIIHFWLYHQHVV RI ZRPHQ DV D JURXS LQ WKHLU OHJLVODWXUH 7KH ) VWDWLVWLF IRU PRGHO RQH LV ) S 7KH VWURQJHVW H[SODQDWRU\ YDULDEOH LQ ERWK PRGHOV WZR DQG WKUHH LV WKH SUHVHQFH RI D PXWXDOO\ DJUHHG XSRQ ZRPHQnV FDXFXV OHJLVODWLYH SROLF\ DJHQGD +DYLQJ D SROLF\ DJHQGD GRPLQDWHV PRGHO WZR 7 f DQG LV VLJQLILFDQW DW WKH S OHYHO ,W LV PRUH H[SODQDWRU\ WKDQ EHLQJ D FDXFXV PHPEHU RU KROGLQJ D FDXFXV OHDGHUVKLS SRVLWLRQ ZKLFK DUH ERWK VLJQLILFDQW DW WKH S OHYHO 0RGHO WZR H[SODLQV WZHQW\RQH SHUFHQW RI WKH YDULDQFH LQ WKH SHUFHLYHG HIIHFWLYHQHVV RI ZRPHQnV FDXFXVHV 5 f ZLWK DQ ) VWDWLVWLF RI S 0RGHO WKUHH LV OHVV H[SODQDWRU\ DOWKRXJK WKH FDXFXV SROLF\ YDULDEOH LV VWUHQJWKHQHG 7 S f 1R RWKHU YDULDEOH LV VLJQLILFDQW LQ WKLV PRGHO ,W H[SODLQV VHYHQWHHQ SHUFHQW RI WKH YDULDQFH 5 f ZLWK D ) VWDWLVWLF RI DW WKH S OHYHO ,Q VHYHQWHHQ VWDWHV ZRPHQnV FDXFXVHV SURSRVH D SROLF\ DJHQGD RU SDFNDJH RI SROLF\ FRQFHUQV WKDW PHPEHUV DJUHH WR PXWXDOO\ VXSSRUW LQ JHWWLQJ SDVVHG 0RVW RI WKHVH SROLF\ DJHQGDV IRFXV QRW RQ IHPLQLVW RU DERUWLRQ LVVXHV EXW RQ 7KH RWKHU VLJQLILFDQW SDUWLDO UHJUHVVLRQ FRHIILFLHQWV LQ PRGHO WZR DUH 7 IRU KROGLQJ D FDXFXV OHDGHUVKLS SRVLWLRQ DQG 7 IRU EHLQJ D ZRPHQnV FDXFXV PHPEHU

PAGE 155

DUHDV PRUH FRQVLVWHQW ZLWK WKH ZRPHQnV WUDGLWLRQDO SROLF\ DJHQGD DV GHILQHG LQ WKLV VWXG\ 7KH VLQJOH SROLF\ DUHD PRVW IUHTXHQWO\ DGGUHVVHG E\ ZRPHQnV FDXFXVHV GXULQJ ZDV GRPHVWLF YLROHQFH 7KH VDOLHQFH RI DQG KLJK OHYHO RI FRQVHQVXV RQ WKLV LVVXH LQ 7$%/( 0RVW )UHTXHQW 3ROLF\ ,VVXHV 3URSRVHG E\ :RPHQnV /HJLVODWLYH &DXFXVHV 'XULQJ :RPHQnV &DXFXV SROLF\ DJHQGD LVVXHV 1XPEHU RI :RPHQnV &DXFXV 0HPEHUV 0HQWLRQLQJ ,VVXH GRPHVWLF YLROHQFH FKLOG VXSSRUW FKLOG FDUH ZRPHQnV KHDOWK LQVXUDQFH EHQHILWV ZRPHQnV KHDOWK FDUH LVVXHV LQFOXGLQJ RVWHRSRURVLV DQG EUHDVW FDQFHUf FKLOGUHQnV ZHOIDUH DQG SURWHFWLRQ RWKHU ZRPHQnV LVVXHV MXGLFLDO UHIRUP SURFKRLFH LVVXHV SUHYHQWLQJ WHHQ SUHJQDQF\ VH[XDO KDUDVVPHQW PDQ\ FDXFXVHV PD\ KDYH EHHQ KHLJKWHQHG E\ WKH KLJK SURILOH \HDUORQJ QDWLRQDO PHGLD DWWHQWLRQ JLYHQ WR WKH LVVXH DV D UHVXOW RI WKH WHOHYLVHG PXUGHU WULDO LQ WKH GHDWK RI 1LFROH %URZQ 6LPSVRQ D EDWWHUHG VSRXVH ,Q 7DEOH DERYH

PAGE 156

SROLFLHV PRVW IUHTXHQWO\ SURSRVHG E\ ZRPHQnV FDXFXV PHPEHUV DUH OLVWHG $PRQJ WKH PDMRULW\ RI OHJLVODWRUV LQ WKLV VDPSOH WKH SUHVHQFH RI D ZRPHQnV OHJLVODWLYH FDXFXV LV SRVLWLYHO\ DQG VLJQLILFDQWO\ FRUUHODWHG ZLWK OHJLVODWRUVn SHUVRQDO VXSSRUW IRU IHPLQLVW SROLFLHV ZLWK VSRQVRULQJ ZRPHQnV SROLF\ ELOOV EXW QRW VSRQVRULQJ IHPLQLVW ELOOV 0RGHO RQH LQ 7DEOH LQGLFDWHV WKH RQO\ VLJQLILFDQW UHODWLRQVKLS EHWZHHQ PHPEHUVKLS LQ DQ HIIHFWLYH ZRPHQnV OHJLVODWLYH FDXFXV DQG D OHJLVODWRUnV SHUVRQDO VXSSRUW IRU IHPLQLVW SROLFLHV LV IRU 'HPRFUDWV +RZHYHU WKLV LV WKH ZHDNHVW E\ KDOI RI WKH WKUHH PRGHOV 0RGHO RQH H[SODLQV RQO\ IRXU SHUFHQW RI WKH YDULDQFH DPRQJ OHJLVODWRUV LQ WKHLU VXSSRUW IRU IHPLQLVW SROLFLHV 5 S f ZLWK D PRGHO VWDWLVWLF RI ) DW WKH S OHYHO ,Q PRGHO WZR WKH VWURQJHVW H[SODQDWRU\ YDULDEOH LV WKH OHJLVODWRUnV LGHRORJ\ 7 f IROORZHG E\ WKH QXPEHU RI OLQNDJHV EHWZHHQ D OHJLVODWRU DQG ZRPHQnV JURXSV 7 f ERWK DUH VLJQLILFDQW DW WKH S OHYHO 7KH QHJDWLYH VLJQ IRU LGHRORJ\ UHIOHFWV LQFUHDVHG VXSSRUW IRU IHPLQLVW SROLFLHV DV WKH OHJLVODWRUnV LGHRORJ\ EHFRPHV OHVV FRQVHUYDWLYH 1R RWKHU YDULDEOH LQ PRGHO WZR LV VLJQLILFDQW DW WKH S OHYHO LQFOXGLQJ WKH ZRPHQnV FDXFXV 7KH 3HDUVRQnV FRUUHODWLRQ FRHIILFLHQWV DUH 5 S IRU SHUVRQDO VXSSRUW RI IHPLQLVW SROLFLHV DQG 5 S IRU VSRQVRULQJ ZRPHQnV SROLF\ ELOOV 7KH 3HDUVRQnV FRHIILFLHQW IRU VSRQVRULQJ IHPLQLVW ELOOV LV 5 DQG LV QRW VLJQLILFDQW DW WKH S OHYHO

PAGE 157

7DEOH 3HUVRQDO 3HUFHLYHG 6XSSRUW IRU )HPLQLVW 3ROLFLHV 0XOWLYDULDWH 5HJUHVVLRQ 0RGHOVf 3HUVRQDO 3ROLF\ 3ULRULWLHV WKDW 6XSSRUW )HPLQLVW 3ROLFLHV 3(5621$/ 6833257 )25 )(0,1,67 32/,&
PAGE 158

YDULDEOH 0RGHO WZR H[SODLQV PRUH WKDQ WZLFH WKH YDULDQFH LQ OHJLVODWRUVn VXSSRUW IRU IHPLQLVW SROLFLHV DV GRHV PRGHO RQH 0RGHO WZR H[SODLQV QLQH SHUFHQW RI WKH YDULDQFH 5 S f LQFOXGHV FDVHV DQG KDV DQ RYHUDOO PRGHO VWDWLVWLF RI ) S 0RGHO WKUHH 7DEOH LV YHU\ VLPLODU WR PRGHO WZR ERWK LQ H[SODQDWRU\ SRZHU 5 S f DQG YDULDEOHV ,W LV LQFOXGHG WR VKRZ WKH JHQGHU YDULDEOH DEVHQW IURP PRGHO WZR LV QRW VLJQLILFDQW LQ H[SODLQLQJ WKH YDULDQFH DPRQJ OHJLVODWRUV LQ WKHLU SHUVRQDO VXSSRUW IRU IHPLQLVW LVVXHV $V LQ PRGHO WZR LGHRORJ\ DQG OLQNDJHV WR ZRPHQnV JURXSV DUH WKH VLJQLILFDQW H[SODQDWRU\ YDULDEOHV (DFK LV VOLJKWO\ VWURQJHU WKDQ LQ PRGHO WZR DQG VLJQLILFDQW DW WKH S OHYHO 7KH PRGHO VWDWLVWLF LV ) S f 7DEOH VKRZV WKDW LGHRORJ\ DQG OLQNDJHV WR ZRPHQnV JURXSV DUH FRQVLVWHQWO\ VLJQLILFDQW DQG PRUH H[SODQDWRU\ WKDQ SROLWLFDO SDUW\ DIILOLDWLRQ PHPEHUVKLS LQ DQ HIIHFWLYH ZRPHQnV OHJLVODWLYH FDXFXV RU JHQGHU LQ H[SODLQLQJ WKH YDULDQFH LQ OHJLVODWRUVn SHUVRQDO VXSSRUW IRU IHPLQLVW SROLFLHV 2QO\ DPRQJ 'HPRFUDWLF ZRPHQnV FDXFXV PHPEHUV LV WKHUH D VLJQLILFDQW DQG SRVLWLYH UHODWLRQVKLS EHWZHHQ EHLQJ D PHPEHU RI DQ HIIHFWLYH ZRPHQnV FDXFXV DQG SHUVRQDO VXSSRUW IRU IHPLQLVW SROLFLHV 7KH VLJQLILFDQW SDUWLDO UHJUHVVLRQ FRHIILFLHQWV LQ PRGHO WKUHH DUH 7 IRU LGHRORJ\ DQG 7 IRU OLQNDJHV WR ZRPHQnV JURXSV %RWK DUH VLJQLILFDQW DW WKH S OHYHO

PAGE 159

'XULQJ IHZ IHPLQLVW ELOOV ZHUH UHSRUWHG VSRQVRUHG DQG SDVVHG E\ OHJLVODWRUV LQ WKLV VDPSOH $ WRWDO 7$%/( 6SRQVRULQJ )HPLQLVW /HJLVODWLRQ 0XOWLSOH 5HJUHVVLRQ 0RGHOV 6XSSRUW IRU )HPLQLVW 3ROLFLHV ,Q %LOOV 6SRQVRUHG 6321625,1* )(0,1,67 %,//6f 9$5,$%/( 02'(/ )(0$/( /(*,6/$7256 02'(/ 0$/( /(*,6/$7256 &2167$17 '(02&5$7 )(0$/( )(0,1,67 ,1'(; r S f ,'(2/2*< 3$57<,' 63(1',1* 21 :20(1n6 ,668(6 :20(1n6 &$8&86 r S f )9DOXH RI PRGHO 6LJQLILFDQFH RI 0RGHO 5 1XPEHU RI /HJLVODWRUV )HPDOH /HJLVODWRUV 0DOH /HJLVODWRUV S 3DUW\LG 'HPRFUDW rr S 5HSXEOLFDQ RI IHPLQLVW ELOOV ZHUH UHSRUWHG SDVVHG E\ IHPDOH DQG PDOHf OHJLVODWRUV LQ WKLV VDPSOH GXULQJ WKHLU

PAGE 160

VHVVLRQV 7DEOH LQGLFDWHV WKDW IHPDOH DQG PDOH OHJLVODWRUV VSRQVRUHG IHPLQLVW OHJLVODWLRQ )RU WKHVH OHJLVODWRUV EHLQJ D PHPEHU RI D ZRPHQnV FDXFXV DQG LQFUHDVHG VXSSRUW IRU DQ DWWLWXGLQDO IHPLQLVW SROLF\ LQGH[ H[SODLQ QHDUO\ WKLUW\ SHUFHQW RI WKH YDULDQFH LQ IHPDOH OHJLVODWRUnV VSRQVRULQJ RI nnIHPLQLVW ELOOV 5 S f 1R VLPLODU VLJQLILFDQW UHODWLRQVKLS ZDV IRXQG DPRQJ PDOH OHJLVODWRUV ZKR VSRQVRUHG IHPLQLVW OHJLVODWLRQ 3DUWLFLSDWLRQ LQ :RPHQnV /HJLVODWLYH &DXFXVHV /HJLVODWRUV IURP VWDWHV LQGLFDWH WKHLU VWDWH KDV D ZRPHQnV OHJLVODWLYH FDXFXV 2I WKH OHJLVODWRUV IURP WKHVH VWDWHV VL[W\ SHUFHQW IHPDOH DQG PDOH OHJLVODWRUV DUH PHPEHUV RI WKHLU VWDWHnV ZRPHQnV OHJLVODWLYH FDXFXV 1LQHW\ IHPDOH PHPEHUV RU SHUFHQWf DUH 5HSXEOLFDQV DQG RU SHUFHQWf DUH 'HPRFUDWV )RUW\HLJKW IHPDOH OHJLVODWRUV LQGLFDWHG WKH\ DUH FXUUHQWO\ RIILFHUV LQ WKHLU VWDWHnV ZRPHQnV OHJLVODWLYH FDXFXV $QRWKHU VHYHQ ZHUH SUHVLGHQW FKDLU RU FRFKDLUf RI WKHLU ZRPHQnV FDXFXV GXULQJ 7KH PHDQ OHYHO RI VXSSRUW IRU ZRPHQnV WUDGLWLRQDO SROLFLHV DQG IRU IHPLQLVW LVVXHV DPRQJ ZRPHQnV FDXFXV PHPEHUV LV VLJQLILFDQWO\ KLJKHU WKDQ VXSSRUW IRU WKHVH /HJLVODWRUV IURP WKH IROORZLQJ VWDWHV LQGLFDWHG WKHLU OHJLVODWXUH KDG D ZRPHQnV FDXFXV RU FRXQFLO $. $5 &$ &7 )/ *$ +, ,$ ,/ ,1 /$ 0$ 0' 01 02 1& 1( 19 1+ 11< 2+ 25 5, 6& 71 7; 9$ 97 :9 :$ DQG :<

PAGE 161

LVVXHV DPRQJ QRQFDXFXV PHPEHUV LQ WKHVH VWDWHV :RPHQnV FDXFXV PHPEHUV DOVR KDYH VLJQLILFDQWO\ KLJKHU OHYHOV RI OLQNDJHV WR IRUPDO ZRPHQnV JURXSV RXWVLGH WKH OHJLVODWXUH 2Q DYHUDJH ZRPHQnV FDXFXV PHPEHUV UHJDUGOHVV RI WKHLU JHQGHU KDYH WKUHH WLPHV DV PDQ\ OLQNDJHV WR ZRPHQnV JURXSV DV GR QRQFDXFXV PHPEHUV LQ WKHLU VWDWHV $OWKRXJK 5HSXEOLFDQ IHPDOH PHPEHUV RI ZRPHQnV FDXFXVHV KDYH ORZHU OLQNDJH VFRUHV WR ZRPHQnV JURXSV f WKDQ WKHLU 'HPRFUDWLF IHPDOH FRXQWHUSDUWV f WKH\ KDYH VLJQLILFDQWO\ PRUH OLQNDJHV WR ZRPHQnV JURXSV WKDW LV KLJKHU OLQNDJH VFRUHV WKDQ QRQFDXFXV PHPEHUV RI HLWKHU SDUW\ LQ WKHLU VWDWHV :RPHQnV FDXFXV PHPEHUV DFWLYHO\ EXLOG OHJLVODWLYH SROLF\ FRDOLWLRQV ZLWK RWKHU JURXSV ZLWKLQ WKH OHJLVODWXUH WR SDVV WKHLU SULRULW\ OHJLVODWLRQ 7KH\ DUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ QRQFDXFXV PHPEHUV RI HLWKHU JHQGHU WR IRUP VXSSRUWLYH SROLF\ FRDOLWLRQV ZLWK $IULFDQ$PHULFDQV HQYLURQPHQWDOLVWV +LVSDQLFV RWKHU PLQRULWLHV DQG PRVW OLNHO\ WR IRUP ELSDUWLVDQ IHPDOH FRDOLWLRQV 7KHUH ZDV 7WHVW UHVXOWV IRU ZRPHQnV OHJLVODWLYH FDXFXV PHPEHUV FRPSDUHG WR QRQFDXFXV PHPEHUV VXSSRUW IRU WUDGLWLRQDO ZRPHQnV SROLF\ LVVXHV LV 7 DW S 6XSSRUW IRU IHPLQLVW SROLF\ LVVXHV LV 7 DW WKH S OHYHO 7KH PHDQ OLQNDJH VFRUH IRU DOO ZRPHQnV FDXFXV PHPEHUV ZDV FRPSDUHG WR QRQPHPEHUV DW RQ D VFDOH IURP ]HUR WR D SRWHQWLDO PD[LPXP VFRUH RI WKLUW\f 7KLV GLIIHUHQFH LV VLJQLILFDQW 7 S OHYHOf (DFK RI WKHVH UHODWLRQVKLSV LV SRVLWLYH DQG VWDWLVWLFDOO\ VLJQLILFDQW :LWK WKH H[FHSWLRQ RI FRDOLWLRQV EHWZHHQ ZRPHQnV FDXFXV PHPEHUV DQG HQYLURQPHQWDOLVWV HDFK RI WKHVH UHODWLRQVKLS LV VLJQLILFDQW DW WKH S OHYHO ,Q GHFUHDVLQJ RUGHU ZRPHQ DUH PRVW OLNHO\ WR IRUP IHPDOH

PAGE 162

QR VLJQLILFDQW GLIIHUHQFH EHWZHHQ FDXFXV PHPEHUV DQG QRQn PHPEHUV LQ FRDOLWLRQ EXLOGLQJ ZLWK WKH RSSRVLWH SROLWLFDO SDUW\ 7 S f &DXFXV PHPEHUV DUH VLJQLILFDQWO\ OHVV OLNHO\ WKDQ QRQPHPEHUV RI HLWKHU JHQGHU WR IRUP FRDOLWLRQV ZLWK EXVLQHVV LQWHUHVWV 3DUWLFLSDWLRQ LQ $IULFDQ$PHULFDQ &DXFXVHV )RUW\ SHUFHQW SHUFHQWf RU OHJLVODWRUV IURP D FRPELQHG WRWDO RI VWDWHV UHSRUW WKHLU OHJLVODWXUH KDV DQ $IULFDQ$PHULFDQ OHJLVODWLYH FDXFXV 2QO\ OHJLVODWRUV UHSRUW WKH\ DUH PHPEHUV RI WKHLU VWDWHnV $IULFDQ$PHULFDQ OHJLVODWLYH FDXFXV 0HPEHUV LQFOXGH IHPDOH DQG PDOH OHJLVODWRUV 7KH HWKQLF UDFLDO FRPSRVLWLRQ RI $IULFDQ $PHULFDQ FDXFXV PHPEHUV LQ WKLV VDPSOH LQFOXGHV $IULFDQ $PHULFDQV VHYHQ &DXFDVLDQV WZR 0H[LFDQ$PHULFDQV RQH 1DWLYH $PHULFDQ DQG D 3XHUWR 5LFDQ %RWK PDOH DQG IHPDOH PHPEHUV RI $IULFDQ$PHULFDQ FDXFXVHV DUH VLJQLILFDQWO\ PRUH OLEHUDO WKDQ QRQFDXFXV PHPEHUV $IULFDQ$PHULFDQ FRDOLWLRQV ZLWKLQ DQG DFURVV SDUW\ OLQHV 7 SF2222Of ZLWK $IULFDQ$PHULFDQV 7 Sf ZLWK +LVSDQLFV 7 Sf ZLWK RWKHU PLQRULWLHV 7 Sf DQG ZLWK HQYLURQPHQWDOLVWV 7 Sf /HJLVODWRUV IURP WKH IROORZLQJ VWDWHV LQGLFDWH WKHLU OHJLVODWXUH KDG DQ $IULFDQ$PHULFDQ FDXFXV LQ $/ $5 &$ &7 )/ *$ ,/ ,1 .6 /$ 0$ 0' 0, 02 06 1& 19 1< 2+ 2. 3$ 5, 6& 71 7; 9$ DQG :, 7KH VHOIUHSRUWHG PHDQ LGHRORJ\ IRU PHPEHUV RI $IULFDQ $PHULFDQ OHJLVODWLYH FDXFXVHV LQ WKLV VDPSOH LV OLEHUDOf FRPSDUHG WR D VDPSOH PHDQ IRU QRQFDXFXV PHPEHUV RI PRGHUDWHf RQ D VHYHQ SRLQW VFDOH RQH LV YHU\ OLEHUDO WR

PAGE 163

IHPDOH OHJLVODWRUV DUH VOLJKWO\ PRUH OLEHUDO LQ LGHRORJ\ f WKDQ WKHLU PDOH FRXQWHUSDUWV f EXW WKH GLIIHUHQFH LV QRW VWDWLVWLFDOO\ VLJQLILFDQW 0HPEHUV RI $IULFDQ$PHULFDQ FDXFXVHV LQ WKLV VDPSOH DUH RQO\ KDOI DV OLNHO\ WR VSRQVRU OHJLVODWLRQ LQ WUDGLWLRQDO ZRPHQnV SROLF\ DUHDV :32/,&
PAGE 164

3DUWLFLSDWLRQ ,Q &RQVHUYDWLYH &DXFXVHV )LIW\ SHUFHQW RU OHJLVODWRUV IURP D WRWDO RI IRUW\ VWDWHV LQGLFDWHG WKHLU VWDWH KDV D FRQVHUYDWLYH OHJLVODWLYH FDXFXV 7ZHQW\RQH SHUFHQW OHJLVODWRUVf DUH PHPEHUV RI WKHLU VWDWHnV FRQVHUYDWLYH OHJLVODWLYH FDXFXV &RQVHUYDWLYH FDXFXV PHPEHUV DUH WZR DQG D KDOI WLPHV PRUH OLNHO\ WR EH PDOH WKDQ IHPDOH 0HPEHUV LQFOXGH IHPDOH SHUFHQWf DQG PDOH SHUFHQWf OHJLVODWRUV 0RUH WKDQ KDOI SHUFHQWf RU OHJLVODWRUV UHSRUW WKHLU VWDWHnV FRQVHUYDWLYH FDXFXV LV QRW ELSDUWLVDQ 2QO\ VL[WHHQ RI IRUW\ VWDWHV KDYH ELSDUWLVDQ FRQVHUYDWLYH FRDOLWLRQV &DXFXV PHPEHUV LQ WKH VDPSOH UHIOHFW WKLV DV SHUFHQW PHPEHUVf DUH 5HSXEOLFDQ ZKLOH SHUFHQW PHPEHUVf DUH 'HPRFUDWV 1LQHW\ILYH SHUFHQW RI FRQVHUYDWLYH FDXFXV PHPEHUV DUH &DXFDVLDQ &RQVHUYDWLYH FDXFXV PHPEHUV LQ WKH VDPSOH LQFOXGH WZR $IULFDQ$PHULFDQV WZR 0H[LFDQ$PHULFDQV DQG WKUHH ZKR LGHQWLILHG WKHLU HWKQLFLW\ DV RWKHU 7KH PHDQ LGHRORJ\ IRU FRQVHUYDWLYH FDXFXV PHPEHUV LV RQ D VHYHQ SRLQW VFDOH LV YHU\ FRQVHUYDWLYHf f/HJLVODWRUV IURP WKH IROORZLQJ VWDWHV LQGLFDWH WKHLU OHJLVODWXUH KDG D IRUPDO RU LQIRUPDO FRQVHUYDWLYH OHJLVODWLYH FDXFXV LQ $. $/ $= &$ &2 &7 '( )/ *$ ,' ,1 .6 .< /$ 0' 0( 0, 01 02 06 07 1& 1' 1( 1+ 1< 2+ 2. 25 3$ 5, 6& 6' 71 7; 87 9$ :$ :9 DQG :, 7KH IROORZLQJ VWDWHV ZHUH UHSRUWHG WR KDYH ELSDUWLVDQ FRQVHUYDWLYH FDXFXVHV DV RI $/ &7 '( ,1 .< 0( 01 1' 1( 1+ 10 7; 97 :, DQG :9

PAGE 165

FRPSDUHG WR DPRQJ QRQFRQVHUYDWLYH FDXFXV PHPEHUV LQ WKH IRUW\ VWDWHV DQG WKH RYHUDOO VDPSOH PHDQ 7KH PHDQ OHYHO RI VXSSRUW IRU ELOOV LQ ZRPHQnV WUDGLWLRQDO SROLFLHV DUHDV DPRQJ PHPEHUV LV QRW VLJQLILFDQWO\ GLIIHUHQW IURP WKH VXSSRUW DPRQJ QRQFDXFXV PHPEHUV DW WKH S OHYHO &RQVHUYDWLYH FDXFXV PHPEHUV KDYH VLJQLILFDQWO\ IHZHU OLQNDJHV WR ZRPHQnV JURXSV 2Q DYHUDJH WKH\ KDYH RQHWKLUG WKH OLQNDJHV ZLWK IRUPDO ZRPHQnV JURXSV DV GR WKHLU QRQn FDXFXV FRXQWHUSDUWV LQ WKHLU VWDWHV &RQVHUYDWLYH FDXFXV PHPEHUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ RWKHU OHJLVODWRUV WR KDYH JURXS OLQNDJHV WR WKH &KULVWLDQ &RDOLWLRQ EXW VLJQLILFDQWO\ OHVV OLNHO\ WR KDYH OLQNDJHV WR WKH 1DWLRQDO 5LIOH $VVRFLDWLRQ RU 3UR/LIH JURXSV 7KH SDUWLDO UHJUHVVLRQ FRHIILFLHQW IRU ELOOV LQ ZRPHQnV WUDGLWLRQDO SROLF\ DUHDV DPRQJ FRQVHUYDWLYH FDXFXV PHPEHUV LV 7 S 7KH PHDQ OLQNDJH VFRUH WR ZRPHQnV RUJDQL]DWLRQV IRU FRQVHUYDWLYH FDXFXV PHPEHUV LV FRPSDUHG WR DPRQJ QRQFDXFXV PHPEHUV LQ WKHLU VWDWHV 7KLV LV VWDWLVWLFDOO\ VLJQLILFDQW 7 Sf 7KH UDQJH RI OLQNDJH VFRUHV DPRQJ FDXFXV PHPEHUV LV ]HUR WR VL[WHHQ FRPSDUHG WR D PD[LPXP RI WKLUW\ DPRQJ QRQFDXFXV PHPEHUV f&RQVHUYDWLYH FDXFXV PHPEHUV DUH VLJQLILFDQWO\ PRUH OLNHO\ WKDQ QRQPHPEHUV WR KDYH OLQNDJHV WR WKH &KULVWLDQ &RDOLWLRQ 7 S f %XW WKH\ DUH VLJQLILFDQWO\ OHVV OLNHO\ WR KDYH OLQNDJHV ZLWK WKH 1DWLRQDO 5LIOH $VVRFLDWLRQ 7 S f RU ZLWK 3UR/LIH JURXSV 7 S f

PAGE 166

3DUWLFLSDWLRQ LQ +LVSDQLF &DXFXVHV 'DWD RQ WKH SUHVHQFH DQG PHPEHUVKLS LQ +LVSDQLF OHJLVODWLYH FDXFXVHV DUH VHYHUHO\ OLPLWHG ERWK E\ KDYLQJ RQO\ +LVSDQLFV LQ WKH VDPSOH DQG RQO\ LQTXLULQJ DERXW +LVSDQLF FDXFXVHV RQ WKH PDOH OHJLVODWRUnV VXUYH\ +LVSDQLFV PDGH XS D WRWDO RI SHUFHQW RI WKH DOO VWDWH OHJLVODWRUV LQ ,Q RQO\ /DWLQDV +LVSDQLF IHPDOHVf VHUYHG DV VWDWH OHJLVODWRUV UHSUHVHQWLQJ VWDWHV $ WRWDO RI OHJLVODWRUV SHUFHQWf IURP HOHYHQ VWDWHV LQGLFDWHG WKHLU VWDWH KDV D +LVSDQLF OHJLVODWLYH FDXFXV 1LQH +LVSDQLFV HLJKW PDOHV DQG RQH IHPDOHf LQ WKH VDPSOH DUH PHPEHUV RI D /DWLQR OHJLVODWLYH FDXFXV 7KH PHDQ LGHRORJ\ RI +LVSDQLF FDXFXV PHPEHUV ZDV D PRGHUDWH RQ D VFDOH RI VHYHQ ZKLFK ZDV QRW VLJQLILFDQWO\ GLIIHUHQW IURP QRQFDXFXV PHPEHUV LQ WKHVH VWDWHV +LVSDQLF FDXFXV PHPEHUV ZHUH RQO\ VOLJKWO\ PRUH OLNHO\ WR VSRQVRU 6HH 7DEOH SDJH L[ 1DWLRQDO 5RVWHU RI +LVSDQLF (OHFWHG 2IILFLDOV f f,QIRUPDWLRQ IURP WKH :RPHQ RI &RORU LQ (OHFWLYH 2IILFH )DFW 6KHHW &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV (DJOHWRQ ,QVWLWXWH RI 3ROLWLFV 5XWJHUV 8QLYHUVLW\ f/HJLVODWRUV IURP WKH IROORZLQJ VWDWHV LQGLFDWH WKHLU OHJLVODWXUH KDG DQ +LVSDQLF /DWLQR/DWLQD RU 3XHUWR 5LFDQf FDXFXV LQ $= &$ &2 &7 )/ ,/ 0' 110 1< DQG 7; 7KH IHPDOH PHPEHU YROXQWDULO\ ZURWH LQ WKLV LQIRUPDWLRQ DV WKH +LVSDQLF FDXFXV TXHVWLRQ ZDV QRW RQ WKH IHPDOH VXUYH\ IRUPf 6KH IRXQGHG WKH FDXFXV LQ KHU VWDWH

PAGE 167

ELOOV LQ ZRPHQnV WUDGLWLRQDO SROLF\ DUHDV WKDQ QRQPHPEHUV 7KH QH[W FKDSWHU ZLOO EULHIO\ GLVFXVV FRQFOXVLRQV LQWHUSUHWDWLRQV DQG LPSOLFDWLRQV IRU IXUWKHU VXEVWDQWLYH OHJLVODWLYH JHQGHU DQG HWKQLF PLQRULW\ UHVHDUFK LQ UHVSRQVH WR ILQGLQJV DQG K\SRWKHVHV WHVWLQJ LQ WKLV FKDSWHU

PAGE 168

&+$37(5 &21&/86,216 $1' ,03/,&$7,216 7KH SULPDU\ JRDO RI WKLV UHVHDUFK KDV EHHQ WR H[SORUH WKH HIIHFWLYHQHVV RI VXEVWDQWLYH UHSUHVHQWDWLRQ LQ WKH LQFUHDVHG QXPEHUV RI IHPDOH VWDWH OHJLVODWRUV FRPSDUHG WR WKHLU PDOH FROOHDJXHV *HQGHU GLIIHUHQFHV LQ SURYLGLQJ VXEVWDQWLYH SROLF\ UHSUHVHQWDWLRQ ZHUH H[DPLQHG LQ DUHDV RI WUDGLWLRQDO ZRPHQnV SROLF\ LVVXHV DQG LQ JHQGHUQHXWUDO SROLFLHV WKDW GLUHFWO\ DIIHFW PDQ\ DVSHFWV RI FLWL]HQVn HYHU\ GD\ OLYHV 5HSUHVHQWLQJ WKH :RPHQnV 3ROLF\ $JHQGD )DFWRUV WKDW LQWHUDFW WR LQIOXHQFH HIIHFWLYH SROLF\ UHSUHVHQWDWLRQ RI ZRPHQnV WUDGLWLRQDO LQWHUHVWV DUH PXFK PRUH VXEWOH DQG FRPSOH[ WKDQ MXVW HOHFWLQJ PRUH IHPDOH OHJLVODWRUV :KHWKHU OHJLVODWRUV RI HLWKHU JHQGHU DUH PHPEHUV RI RU KDYH VWURQJ FDPSDLJQ OLQNDJHV WR RUJDQL]HG ZRPHQnV JURXSV RXWVLGH WKH OHJLVODWXUH ZHUH FRQVLVWHQWO\ PRUH H[SODQDWRU\ LQ SURYLGLQJ VXEVWDQWLYH UHSUHVHQWDWLRQ IRU ZRPHQnV SROLF\ FRQFHUQV 7KLV UHODWLRQVKLS ZDV FRQVLVWHQW UHJDUGOHVV RI OHJLVODWRUVn SROLWLFDO SDUW\ DIILOLDWLRQV SROLWLFDO LGHRORJ\ RU DW WLPHV WKHLU JHQGHU

PAGE 169

$V D JURXS IHPDOH OHJLVODWRUV PRUH IUHTXHQWO\ PHQWLRQHG ZRPHQnV SROLF\ LVVXHV DV WKHLU SHUVRQDO OHJLVODWLYH SULRULWLHV ZKHWKHU RU QRW WKH\ SURSRVHG VXFK ELOOV 7KH\ PRUH IUHTXHQWO\ VSRQVRUHG ELOOV LQ WKHVH DUHDV DQG VXFFHVVIXOO\ SDVVHG PRUH ZRPHQnV SROLF\ ELOOV WKDQ WKHLU PDOH FROOHDJXHV 7KLV ILQGLQJ LV FRQVLVWHQW ZLWK HDUOLHU UHVHDUFK 6DLQW*HUPDLQ 7KRPDV f &RQVLVWHQW ZLWK SUHYLRXV UHVHDUFK ILQGLQJV PDOH OHJLVODWRUV LQ WKLV VDPSOH FRQWLQXHG WR VSRQVRU IHZHU RI WKHLU SULRULW\ ELOOV LQ WKHVH SROLF\ DUHDV %XW E\ PDOH OHJLVODWRUV ZHUH DV OLNHO\ DV IHPDOH OHJLVODWRUV WR JHW WKHLU VSRQVRUHG ZRPHQnV SROLF\ ELOOV SDVVHG LQ WKH OHJLVODWXUH 7KLV VLJQLILFDQW QHZ UHVHDUFK ILQGLQJ LV D UHFHQW GHYHORSPHQW QRW IRXQG LQ SUHYLRXV VXEQDWLRQDO PXOWLn VWDWH VDPSOHV IURP WHQ \HDUV DJR ,Q D WZHOYHVWDWH VWXG\ ZKLFK LQFOXGHG IHPDOH UHSUHVHQWDWLYHV DQG D PDOH FRPSDULVRQ VDPSOH PDOH OHJLVODWRUV ZHUH DEOH WR JHW 7KH ZRPHQnV SROLF\ DJHQGD LQ WKLV UHVHDUFK LQFOXGHV WKH IROORZLQJ VSHFLILF SROLF\ DUHDV FKLOG DEXVH FKLOGUHQ DQG \RXWK ELOOV FKLOG VXSSRUW FXOWXUDO DIIDLUV SXEOLF HGXFDWLRQ NLQGHUJDUWHQ WKURXJK KLJK VFKRROf VHUYLFHV IRU WKH HOGHUO\ DQG DJLQJ KXPDQ VHUYLFHV MXYHQLOH FULPH DQG MXYHQLOH FULPH SUHYHQWLRQ DQG SUROLIH LVVXHV $ WRWDO RI IHPDOH DQG PDOHf OHJLVODWRUV LQ WKLV VDPSOH VXFFHVVIXOO\ VSRQVRUHG ZRPHQnV SROLF\ ELOOV )HPDOH OHJLVODWRUV VSRQVRUHG ELOOV WR IRU WKHLU PDOH FROOHDJXHV 7KHUH ZDV QR VLJQLILFDQW JHQGHU GLIIHUHQFH EHWZHHQ WKH VXFFHVV UDWHV RI SDVVLQJ ZRPHQnV SROLF\ ELOOV PDOHV SDVVHG SHUFHQW RI WKHLU SULRULW\ ELOOV GHDOLQJ ZLWK WKHVH LVVXHV ZKLOH IHPDOHV SDVVHG SHUFHQW RI WKHLUV

PAGE 170

SHUFHQW RI WKH SULRULW\ ELOOV WKH\ VSRQVRUHG GHDOLQJ ZLWK FKLOGUHQ DQG IDPLO\ LVVXHV SDVVHG )HPDOH OHJLVODWRUV VXFFHVVIXOO\ SDVVHG SHUFHQW RI WKHLU FRPSDUDEOH ELOOV 7KRPDV f 7KHUH FDQ EH VHYHUDO SUDFWLFDO LPSOLFDWLRQV RI WKLV ILQGLQJ RQ UHSUHVHQWLQJ ZRPHQnV SROLF\ LVVXHV %HFDXVH PDOH OHJLVODWRUV OHVV IUHTXHQWO\ VSRQVRU ZRPHQnV SROLF\ OHJLVODWLRQ IHPDOH OHJLVODWRUV ZKR GR DFWLYHO\ DQG VXEVWDQWLYHO\ UHSUHVHQW WKHVH LVVXHV ZRXOG FRQWLQXH WR EH SUHIHUUHG FDQGLGDWHV DQG OHJLVODWRUV ZKHQ WKH\ DUH DYDLODEOH 7KLV ZRXOG PD[LPL]H UHSUHVHQWDWLRQ RI ZRPHQnV SROLFLHV LQ WKH QXPEHU RI VXEVWDQWLYH ZRPHQnV SROLF\ ELOOV VSRQVRUHG DQG SDVVHG %\ EHLQJ DV VXFFHVVIXO LQ SDVVLQJ ZRPHQnV SROLF\ OHJLVODWLRQ VXSSRUWLYH PDOHV PDNH H[FHOOHQW SROLF\ FRDOLWLRQ SDUWQHUV RQ WKHVH LVVXHV )XUWKHUPRUH WR PD[LPL]H WKH UHSUHVHQWDWLRQ RI ZRPHQnV SROLF\ LVVXHV PDOH OHJLVODWRUV ZKR VXSSRUW WKHVH LVVXHV ZRXOG EH SUHIHUDEOH FDQGLGDWHV DQG OHJLVODWRUV RYHU PRUH LGHRORJLFDOO\ FRQVHUYDWLYH IHPDOH FDQGLGDWHV ZKR ODFN OLQNDJHV WR ZRPHQnV JURXSV )HPDOH OHJLVODWRUV GR QRW XQLYHUVDOO\ VXSSRUW DFW RQ EHKDOI RI RU VXEVWDQWLYHO\ UHSUHVHQW ZRPHQnV SROLF\ LVVXHV ,GHRORJLFDOO\ PRGHUDWH PDOH OHJLVODWRUV ZLWK OLQNDJHV WR ZRPHQnV JURXSV ZRXOG SURYLGHG PRUH HIIHFWLYH VXEVWDQWLYH SROLF\ UHSUHVHQWDWLRQ IRU ZRPHQnV SROLF\ WKDQ

PAGE 171

PRUH LGHRORJLFDOO\ FRQVHUYDWLYH IHPDOHV RI HLWKHU SDUW\ ZKR ODFN FRQQHFWLRQV WR ZRPHQnV RUJDQL]DWLRQV 7KLV ZDV HVSHFLDOO\ WUXH RI WKH IHZ PDOH OHJLVODWRUV ZKR ZHUH PHPEHUV RI WKHLU VWDWHnV ZRPHQnV OHJLVODWLYH FDXFXV ,I DFWLYH SROLF\ UHSUHVHQWDWLRQ LV WKH OHJLVODWLYH JRDO WKHQ IHPDOH YRWHUV RUJDQL]HG ZRPHQnV JURXSV IHPDOH SROLWLFDO DFWLRQ FRPPLWWHHV DQG IHPLQLVWV QHHG WR ORRN EH\RQG D OHJLVODWRUnV JHQGHU DQG SDUWLVDQVKLS WR GHWHUPLQH ZKR LV PRVW OLNHO\ WR PD[LPL]H DQG DGYDQFH ZRPHQnV SROLF\ LQWHUHVWV 5HYLVLRQLQD 0LQRULW\ 6WDWXV 3DUWLFLSDWLRQ 7KHRU\ 0XFK V OHJLVODWLYH JHQGHU UHVHDUFK GUHZ KHDYLO\ RQ WKHRULHV RI PLQRULW\ VWDWXV SDUWLFLSDWLRQ WKHRU\ .DQWHU f DQG LWV FRQFHSWV RI VNHZHG WLOWHG DQG EDODQFHG JURXS G\QDPLFV GLVFXVVHG HDUOLHU LQ FKDSWHU WKUHHf 5HVHDUFK ILQGLQJV RI SULPDULO\ GHVFULSWLYH UHSUHVHQWDWLRQ SURYLGHG E\ WRNHQ IHPDOH OHJLVODWRUV GXULQJ WKH V DSSHDUHG WR VXSSRUW LW 0XFK UHFHQW DQG FXUUHQW UHVHDUFK K\SRWKHVL]HV IHPDOH OHJLVODWRUV SURYLGH VXEVWDQWLYH UHSUHVHQWDWLRQ GHSHQGHQW RQ WKHLU SHUFHQWDJH RU QXPEHUV UHDFKLQJ DQ DUELWUDU\ FULWLFDO WKUHVKROG 6RPH VFKRODUV KDYH K\SRWKHVL]HG WKLV UDWLR WR EH SHUFHQW 7KRPDV DQG :HOFK f SHUFHQW &DUUROO DQG 7D\ORU f D FULWLFDO PDVV DERYH WR SHUFHQW 7KRPDV f RU ZKHQ EDODQFHG JHQGHU UDWLRV RI WR SHUFHQW DUH DFKLHYHG .DQWHU f %\ RQO\

PAGE 172

:DVKLQJWRQ ZLWK WKH KLJKHVW SHUFHQWDJH RI IHPDOH OHJLVODWRUV DW SHUFHQW DSSURDFKHG KDYLQJ EDODQFHG JHQGHU UDWLRV ,Q MXVW ILYH RWKHU VWDWH OHJLVODWXUHV $= &2 0( 1+ DQG 97f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nV SROLWLFDO SROLFLHV 7KLV UHVHDUFK FKDOOHQJHV WKH SULPDU\ IRFXV RQ WKH QXPEHUV RI IHPDOH OHJLVODWRUV DQG LQFUHDVHG GHVFULSWLYH IHPDOH UHSUHVHQWDWLRQ $ORQH QXPEHUV RI IHPDOH OHJLVODWRUV DUH DQ LQVXIILFLHQW FULWHULRQ IRU LQFUHDVLQJ WKH DFWLYH SROLF\ UHSUHVHQWDWLRQ RI ZRPHQnV LQWHUHVWV 6LPSO\ FRXQWLQJ IHPDOH QRVHV LQ SROLWLFDO GHFLVLRQPDNLQJ LQVWLWXWLRQV GRHV QRW SURYLGH D EDURPHWHU RI VXSSRUW IRU ZRPHQnV SROLF\ LVVXHV 0H]H\ Ef 7KLV UHVHDUFK ILQGV LQFUHDVHG QXPEHUV SHUFHQWDJHV RU RWKHU FULWHULD RI WKH GHVFULSWLYH UHSUHVHQWDWLRQ RI ZRPHQ GR QRW QHFHVVDULO\ HTXDWH ZLWK JUHDWHU VXEVWDQWLYH SROLF\ UHSUHVHQWDWLRQ IRU ZRPHQnV SROLF\ FRQFHUQV 7KLV ILQGLQJ LV LQFRQVLVWHQW

PAGE 173

ZLWK WKH HPSKDVLV LQ PXFK FXUUHQW UHVHDUFK RQ IHPDOH OHJLVODWRUV %XW LW LV FRQVLVWHQW ZLWK ILQGLQJV LQ D WZRVWDWH FDVH VWXG\ FRPSDULQJ $UL]RQD DQG &DOLIRUQLD OHJLVODWRUVn VXSSRUW IRU ZRPHQnV SROLF\ LQWHUHVWV 5HLQJROG Ef 'DWD LQ WKLV FXUUHQW UHVHDUFK KDYH FDSWXUHG VHYHUDO LPSRUWDQW FKDQJHV LQ WKH OHJLVODWRU SRSXODWLRQ VLQFH ZKLFK DIIHFW WKH UHSUHVHQWDWLRQ RI ZRPHQn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nV SROLF\ DUHDV 7KLV UHVHDUFK IRXQG QR VLJQLILFDQW GLIIHUHQFH EHWZHHQ WKHVH JURXSV LQ SHUVRQDO VXSSRUW IRU ZRPHQnV SROLFLHV RU LQ ODFN RI SHUVRQDO VXSSRUW IRU IHPLQLVW SROLFLHV 5HSXEOLFDQ ZRPHQ ZHUH HOHFWHG DQG LQFXPEHQWV UHHOHFWHG DW KLJK UDWHV SHUFHQW LQ f 7KLV KDV UHVXOWHG LQ SDUWLVDQVKLS DPRQJ IHPDOH VWDWH OHJLVODWRUV DQG ZLWKLQ

PAGE 174

ZRPHQnV OHJLVODWLYH FDXFXVHV EHFRPLQJ PRUH EDODQFHG 7KLV PRGHUDWLQJ LQIOXHQFH FDQ EH VHHQ RQ WKH PRUH WUDGLWLRQDO JHQGHUHG SROLF\ DJHQGDV RI ZRPHQnV OHJLVODWLYH FDXFXVHV ,GHRORJLFDO GLIIHUHQFHV EHWZHHQ PRUH PRGHUDWH 'HPRFUDWLF PDOH OHJLVODWRUV DQG PDQ\ RI WKHLU PXFK PRUH LGHRORJLFDOO\ FRQVHUYDWLYH 5HSXEOLFDQ PDOH FRXQWHUSDUWV KDYH LQFUHDVHG 0DOH 5HSXEOLFDQ OHJLVODWRUV RQ DYHUDJH DUH VLJQLILFDQWO\ PRUH LGHRORJLFDOO\ FRQVHUYDWLYH DQG DOVR OHVV OLNHO\ WR SHUVRQDOO\ VXSSRUW ZRPHQnV SROLF\ LVVXHV WKDQ HLWKHU WKHLU IHPDOH 5HSXEOLFDQ FRXQWHUSDUWV RU 'HPRFUDWLF PDOHV 5HSXEOLFDQ PHQ DV D JURXS DUH OHDVW OLNHO\ WR VSRQVRU ZRPHQnV SROLF\ ELOOV 7KLV LGHRORJLFDO VKLIW DPRQJ PDOH OHJLVODWRUV KDV UHVXOWHG LQ LQFUHDVHG RSSRUWXQLWLHV IRU ZRPHQ LQ ERWK SDUWLHV WR IRUP VXSSRUWLYH SROLF\ FRDOLWLRQV RQ ZRPHQnV SROLFLHV ZLWK 'HPRFUDWLF PHQ %XW LW KDV HOLPLQDWHG WKH PRVWO\ FRQVHUYDWLYH 5HSXEOLFDQ PDOH OHJLVODWRUV DV SRWHQWLDO SROLF\ FRDOLWLRQ SDUWQHUV RQ ZRPHQnV LVVXHV ([SDQGLQJ :RPHQnV &XOWXUH 7KHRU\ WR ,QFOXGH 6XSSRUWLYH 0DOH /HJLVODWRUV 3ROLWLFDO WKHRULHV RI UHSUHVHQWLQJ :RPHQnV &XOWXUH SURSRVH WKDW IHPDOH OHJLVODWRUV ZKR DUH LQYROYHG ZLWK ZRPHQnV RUJDQL]DWLRQV DUH PRVW DFWLYH LQ UHSUHVHQWLQJ ZRPHQnV LQWHUHVWV DQG VSRQVRULQJ OHJLVODWLRQ WR EHQHILW ZRPHQ DQG FKLOGUHQ &DUUROO f 7KLV UHVHDUFK VWURQJO\ VXSSRUWV ZRPHQnV FXOWXUH SROLWLFDO WKHRU\ 7KH LPSRUWDQFH

PAGE 175

RI PHPEHUVKLS LQ DQG FDPSDLJQ OLQNDJHV ZLWK ZRPHQnV RUJDQL]DWLRQV ZHUH DPRQJ WKH PRVW FRQVLVWHQW DQG VWURQJHVW SUHGLFWRUV RI OHJLVODWRUVn SHUVRQDO VXSSRUW IRU ZRPHQnV SROLF\ DQG WKHLU VSRQVRULQJ RI ZRPHQnV SROLF\ ELOOV /LQNDJHV WR ZRPHQnV JURXSV KDG D VWURQJHU LQIOXHQFH RQ OHJLVODWRUV LQ VSRQVRULQJ ZRPHQnV SROLF\ ELOOV WKDQ GLG WKHLU JHQGHU SROLWLFDO SDUW\ LGHQWLILFDWLRQ RU SHUVRQDO SROLWLFDO LGHRORJ\ 7KHVH ILQGLQJV VXSSRUW DQ H[SDQVLRQ RI ZRPHQnV FXOWXUH UHSUHVHQWDWLRQ WKHRU\ EH\RQG IHPDOH OHJLVODWRUV WR LQFOXGH ERWK JHQGHUV 6XEVHTXHQW UHVHDUFK LQWR ZKLFK ZRPHQnV JURXS OLQNDJHV PRVW LQIOXHQFH VSHFLILF SROLF\ FRQWHQW DUHDV FRXOG EH YDOXDEOH IRU SUDFWLFDO DSSOLFDWLRQV $QRWKHU PRUH WKHRUHWLFDO UHVHDUFK RSWLRQ ZRXOG EH WR VWXG\ ZKDW LQIOXHQFH OLQNDJHV WR ZRPHQn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

PAGE 176

JHQGHU GLIIHUHQFHV LQ FULPH ELOO FRQWHQW DPRQJ &RORUDGR OHJLVODWRUV .DWKOHQH f )RU IHPDOH OHJLVODWRUV WR EHFRPH LQWHJUDWHG LQWR PDLQVWUHDP SROLWLFDO UROHV DQG SROLF\ PDNLQJ LQ VWDWH OHJLVODWXUHV WKH\ QHHG WR SURYLGH HIIHFWLYH VXEVWDQWLYH UHSUHVHQWDWLRQ DFURVV D EURDG UDQJH RI SROLF\ DUHDV 7KLV OHJLVODWLYH UHSUHVHQWDWLRQ QHHGV WR H[WHQG EH\RQG WKRVH SROLFLHVf H[WUDSRODWHG IURP GRPHVWLF UROHV WR SROLWLFDO UROHV 6DSULR f ,Q WKLV UHVHDUFK WKHVH SROLFLHV DUH FROOHFWLYHO\ UHIHUUHG WR DV JHQGHUQHXWUDO SROLFLHV 7KH\ LQFOXGH DOO SROLF\ DUHDV LQ ZKLFK OHJLVODWRUV VSRQVRUHG SULRULW\ ELOOV H[FOXGLQJ WKRVH ZKLFK ZHUH LQFOXGHG LQ HLWKHU WKH ZRPHQn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nV f WKHRU\ RI OHJLVODWRUnV

PAGE 177

JRDOV DQG -HZHOOnV f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f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

PAGE 178

OHJLVODWXUHV ZLWK VXFK FDXFXVHV WKHLU DSSDUHQW LQFUHDVLQJ LQIOXHQFH RQ SROLF\ UHSUHVHQWDWLRQ RSSRVLQJ ZRPHQnV SROLFLHV WKDW EHQHILW ZRPHQ DQG FKLOGUHQ WKLV ZDUUDQWV VRPH REMHFWLYH VFKRODUO\ IROORZXS SROLF\ UHVHDUFK )XWXUH 5HVHDUFK $JHQGD 7KLV UHVHDUFK KDV MXVW EHJXQ WR WDS LQWR WKH ULFK DQG PDVVLYH VXUYH\ GDWD VHW SURYLGHG E\ WKH OHJLVODWRUV ZKR SDUWLFLSDWHG LQ WKLV VWXG\ 6RPH RI WKH GDWD FROOHFWHG EXW QRW DQDO\]HG WR GDWH LQFOXGH OHJLVODWRUVn SULRULW\ JRDOV IRU WKHLU WHQXUH LQ RIILFH DQG LGHQWLI\LQJ DQG SULRULWL]LQJ FRQVWLWXHQW JURXSV E\ WKHLU LPSRUWDQFH LQ LQIOXHQFLQJ ZKDW W\SHV RI ELOOV OHJLVODWRUV VSRQVRU DQG VXSSRUW ,GHQWLI\LQJ LQIRUPDWLRQ WKDW ZRXOG SHUPLW ORFDWLQJ VSHFLILF ELOOV VSRQVRUHG IRU VXEVHTXHQW FRQWHQW DQDO\VLV ZDV SURYLGHG 7KH GDWD DOVR LQFOXGH LQIRUPDWLRQ RQ OHJLVODWLYH FRPPLWWHH OHDGHUVKLS VW\OHV $ ZLGH YDULHW\ RI FRPPLWWHH DVVLJQPHQW FRPPLWWHH UDQNLQJ E\ LQIOXHQFH DQG LPSDFW RQ LPSURYLQJ HTXDOLW\ IRU ZRPHQ DV ZHOO DV SHUFHLYHG FRPPLWWHH V\VWHP GLVFULPLQDWLRQ GDWD KDYH DOVR EHHQ FROOHFWHG 3UHOLPLQDU\ LQGHSWK LQWHUYLHZV ZLWK IHPDOH OHJLVODWRUV IURP WZHOYH VWDWHV ZHUH FRQGXFWHG ZKLFK SURYLGHG VRPH TXDOLWDWLYH GDWD DQG LQVLJKWV QRW \HW LQFRUSRUDWHG LQWR WKLV ZRUN 0RUH WKDQ VL[ KXQGUHG OHJLVODWRUV LQ WKLV VDPSOH DJUHHG WR VFKHGXOHG IXWXUH IROORZXS LQWHUYLHZV ,QWHUYLHZV ZLWK VRPH VHOHFWHG VXEVHW RI WKRVH FRXOG SURYLGH D UHVHDUFK

PAGE 179

RSSRUWXQLW\ WR H[SDQG DQG HQULFK WKH TXDQWLWDWLYH ILQGLQJV UHSRUWHG KHUH )RU WKH IXWXUH DP PRVW LQWHUHVWHG LQ SXUVXLQJ WKH UHSUHVHQWDWLRQ ILQGLQJV LQ QRQJHQGHUHG SROLF\ DUHDV 1RQn VXUYH\ PHWKRGRORJLHV VXFK DV LQGHSWK OHJLVODWRU LQWHUYLHZV DQG FRPSDUDWLYH FRQWHQW DQDO\VLV RI OHJLVODWLRQ PLJKW EH PRUH DSSURSULDWH IRU WKLV DQDO\VLV DP DOVR LQWULJXHG E\ WKH SRVVLELOLW\ RI ZRUNLQJ PRUH FORVHO\ ZLWK ELSDUWLVDQ ZRPHQnV OHJLVODWLYH FDXFXVHV WKDW LQFOXGH PDOH OHJLVODWRUV ,URQLFDOO\ EHOLHYH WKH KLJKO\ SXEOLFL]HG H[WUHPHO\ FRQVHUYDWLYH 5HSXEOLFDQ RSSRVLWLRQ WR SROLFLHV WKDW EHQHILW DQG SURWHFW ZRPHQ FKLOGUHQ PLQRULWLHV DQG WKH GLVDGYDQWDJHG SUHVHQW D SRWHQWLDO SROLWLFDO RSSRUWXQLW\ IRU VXSSRUWHUV RI ZRPHQnV SROLFLHV 0DQ\ ZRPHQnV SROLF\ FRQWHQW DUHDV IRFXV RQ YDOXHV RI FDUH DQ HWKLF RI QXUWXUDQFH DQG VXVWDLQLQJ LQWHUGHSHQGHQW UHODWLRQVKLSV 7KHVH WUDLWV DUH FORVHO\ LGHQWLILHG ZLWK ZRPHQnV PRUDOLW\ DQG PDWHUQDO WKLQNLQJ %XW IHPLQLVW SROLWLFDO WKHRULVWV VXFK DV 7URQWR DUJXH DQG DJUHH WKDW ERWK JHQGHUV EHQHILW ZKHQ WKLV HWKLF RI FDULQJ LV PDGH FRPSDUDEOH ZLWK WKH HWKLF RI MXVWLFH DQG ULJKWV ZKLFK FXUUHQWO\ GRPLQDWHV SROLWLFDO SRZHU )LQGLQJV LQ WKLV UHVHDUFK VXJJHVW SRWHQWLDO HIIHFWLYH PDMRULW\ FRDOLWLRQV VXSSRUWLQJ ZRPHQnV LVVXHV FRXOG EH IRUJHG EHWZHHQ OHJLVODWRUV ZLWK OLQNDJHV WR ZRPHQnV RUJDQL]DWLRQV 6XSSRUWLYH FRDOLWLRQV EHWZHHQ IHPDOH

PAGE 180

OHJLVODWRUV LQ ERWK SDUWLHV ZLWK VXSSRUWLYH 'HPRFUDWLF PDOH OHJLVODWRUV FRXOG KHOS VWRS WKH HURVLRQ RI WKHVH SROLFLHV GHVLJQHG WR FDUH IRU WKRVH DPRQJ XV ZKRVH SROLWLFDO YRLFH LV IUHTXHQWO\ DEVHQW RU VLOHQFHG LQ WKH SRZHU SROLWLFV RI ULJKWV DQG EXGJHW UHWUHQFKPHQW ,Q FRQFOXVLRQ WKLV UHVHDUFK ILQGV IHPDOH OHJLVODWRUV LQ SURYLGHG PRUH HIIHFWLYH VXEVWDQWLYH SROLF\ UHSUHVHQWDWLRQ WKDQ WKHLU PDOH FRXQWHUSDUWV RQ ZRPHQn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nV FXOWXUH DQG IRU ZRPHQnV SROLF\ LVVXHV EDVHG RQ WKHLU OLQNDJHV WR IRUPDO ZRPHQnV RUJDQL]DWLRQV

PAGE 181

$33(1',; $ :20(1 67$7( /(*,6/$7256 67$7,67,&6
PAGE 182

FRQWLQXHG
PAGE 183

FRQWLQXHG
PAGE 184

$33(1',; % :20(1 ,1 67$7( /(*,6/$785(6 6WDWH 5DQN 6HQDWH +RXVH 7RWDO 3HUFHQW )HPDOH $ODVND $ODEDPD $UNDQVDV $UL]RQD &DOLIRUQLD &RORUDGR &RQQHFWLFXW f 'HODZDUH )ORULGD *HRUJLD +DZDLL ,RZD ,GDKR ,OOLQRLV ,QGLDQD .DQVDV .HQWXFN\ /RXLVLDQD 0DLQH 0DU\ODQG 0DVVDFKXVHWWV 0LFKLJDQ 0LQQHVRWD 0LVVRXUL 0LVVLVVLSSL ,6

PAGE 185

6WDWH 5DQN 6HQDWH +RXVH 7RWDO 3HUFHQW )HPDOH 0RQWDQD 1RUWK &DUROLQD 1RUWK 'DNRWD 1HEUDVND 8QLFDPHUDOf 1R +RXVH 1HZ +DPSVKLUH 1HZ -HUVH\ 1HZ 0H[LFR 1HYDGD 1HZ
PAGE 186

$33(1',; & 6859(< ,167580(176 $1' &29(5 /(77(56

PAGE 187

)/25,'$ 81,9(56,7< 2) 'HSDUWPHQW RI 3ROLWLFDO 6FLHQFH 7XUOLQJWRQ 32 %R[ *DLQHVYLOOH )/ f )D[ f -XO\ 7RGD\ D ILIWK RI DOO VWDWH OHJLVODWRUV QDWLRQZLGH DUH ZRPHQ PRUH WKDQ ILYH WLPHV DV PDQ\ DV LQ ,Q IHPDOH OHJLVODWRUV RI HDFK SROLWLFDO SDUW\ KDYH LQFUHDVHG RSSRUWXQLWLHV WR SURSRVH LQIOXHQFH DQG KHOS GHWHUPLQH LPSRUWDQW SROLF\ GHFLVLRQV FKDW GLUHFWO\ DIIHFW DQG EHQHILW WKHLU VWDWHnV FLWL]HQV +RZHYHU QR RQH UHDOO\ NQRZV KRZ IHPDOH OHJLVODWRUnV SROLF\ SULRULWLHV PD\ DIIHFW SXEOLF SROLF\ PDNLQJ RU KRZ HIIHFWLYHO\ IHPDOH OHJLVODWRUV LQIOXHQFH WRGD\nV SROLF\ RXWFRPHV LQ VWDWH OHJLVODWXUHV :H IHHO WKLV VWXG\ ZLOO SURYLGH GHWDLOHG LQIRUPDWLRQ RQ WKH HIIHFWLYHQHVV RI FRPPLWWHH SUDFWLFHV EXLOGLQJ HIIHFWLYH SROLF\ FRDOLWLRQV DPRQJ YDULRXV JURXSV RI OHJLVODWRUV DQG WKH HIIHFW RI ZRPHQnV SROLWLFDO FDXFXVHV ZLWKLQ VWDWH OHJLVODWXUHV
PAGE 188

7+( )/25,'$ 6(1$7( 7DOODQDVVHH +RQGD -XQH 6(1$725 *(25*( .,5.3$75,&. 8L 'LVWULFW 'HDU )HOORZ /HJLVODWRU &200,77((6 :D\V DQD 0rPM 6XIL 6 (GXFZRQL 5X0rrQG &DrQDPU (GXFDRRQ &RPPXQUU\ $OWDLF} -2,17 &200,77(( $LMYXRU\ &RXQDL RQ /DJQWDRYr $XRPQT (GXFD'RQ ,Q VWDWH OHJLVODWRUV RI HDFK SROLWLFDO SDUW\ KDYH LQFUHDVHG RSSRUWXQLWLHV WR SURSRVH LQIOXHQFH DQG KHOS GHWHUPLQH LPSRUWDQW SROLF\ GHFLVLRQV WKDW GLUHFWO\ DIIHFW DQG EHQHILW FLWL]HQV LQ WKHLU VWDWH 2XU SROLF\ FKRLFHV RIWHQ FUHDWH QHZ LQQRYDWLYH SURJUDPV LQ FULPH SUHYHQWLRQ HGXFDWLRQ KHDOWK FDUS DQG ZHOIDUH UHIRUP ZKLFK DUH XVHG DV PRGHO SURJUDPV IRU RWKHU VWDUHV DQG DGRSWHG E\ FRQJUHVV $V RXU UROH RI VWDWH OHJLVODWRUV KDV EHFRPH PRUH LPSRUWDQW RXU PHPEHUVKLS KDV EHFRPH PRUH UHSUHVHQWDWLYH RI WKH DPSULFDQ SXEOLF DV PRUH ZRPHQ DQG UDFLDO RU HWKQLF PLQRULWLHV KDYH EHHQ HOHFWHG +RZHYHU QR RQH UHDOO\ NQRZV KRZ WKH LQFUHDVHG SROLF\ DFWLYLVP DQG PHPEHU GLYHUVLW\ DPRQJ OHJLVODWRUV KDV DIIHFWHG SROLF\ SULRULWLHV SXEOLF SROLF\ PDNLQJ RU KRZ HIIHFWLYHO\ IHPDOH DQG PLQRULW\ OHJLVODWRUV LQIOXHQFH WRGD\nV SROLF\ RXWFRPHV LQ VWDWH OHJLVODWXUHV
PAGE 189

6XUYH\ /WU 3DJH 7ZR
PAGE 190

8 ,1 9 &.' 8U A)/25,'$ 6! 81,9(56,7< 2) 'HSDUWPHQW RI 3ROLWLFDO 6FLHQFH 7XUOLQJWRQ 32 %R[ *DLQHVYLOOH ),B f )D[ f -XO\ 7KLV UHPLQGHU LV &R IROORZXS RQ D OHWWHU DQG TXHVWLRQQDLUH ZH VHQW \RX DERXW D PRQWK DJR :H KDYH QRW \HW UHFHLYHG \RXU FRPSOHWHG VXUYH\ 7KHUHIRUH ZH KDYH HQFORVHG DQRWKHU FRS\ RI WKH VXUYH\ DQG D SRVWDJH SDLG HQYHORSH LQ FDVH WKH ILUVW FRS\ KDV EHHQ PLVSODFHG ,I \RX KDYH DOUHDG\ UHWXUQHG WKH ILUVW FRS\ SOHDVH DFFHSW RXU VLQFHUH WKDQN \RX IRU \RXU WLPH DQG HIIRUW DQG IHHO IUHH WR GLVFDUG WKLV FRS\ ,I QRW ZH ZRXOG JUHDWO\ DSSUHFLDWH \RX FRPSOHWLQJ WKH HQFORVHG IRUP
PAGE 191

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
PAGE 192

7KH UHVXOWV RI WKLV UHVHDUFK ZLOO EH PDGH DYDLODEOH WR VWDWH OHJLVODWRUV DQG OHJLVODWLYH RUJDQL]DWLRQV QDWLRQZLGH
PAGE 193

7+( ,1&5($6(' ,03$&7 2) )(0$/( /(*,6/$7256 21 38%/,& 32/,&< 0$.,1* ,1 67$7( /(*,6/$785(6 1DWLRQDO 6XUYH\ RI 6WDWH /HJLVODWRUV 7+( 81,9(56,7< 2) )/25,'$ '(3$570(17 2) 32/,7,&$/ 6&,(1&( 3 %2; *$,1(69,//( )/25,'$ 7KH SXUSRVH RI WKLV QDWLRQDO VXUYH\ LV WR JDWKHU LQIRUPDWLRQ RQ KRZ OHJLVODWRUnV SROLF\ SULRULWLHV FRPPLWWHH DVVLJQPHQWV DQG OHJLVODWLYH FDXFXVHV LQIOXHQFH SROLF\ PDNLQJ LQ VWDWH OHJLVODWXUHV
PAGE 194

38%/,& 32/,&< 0$.,1* ,1 86 67$7( /(*,6/$785(6 1DWLRQDO 6XUYH\ RI 6WDWH /HJLVODWRUV 7+( 81,9(56,7< 2) )/25,'$ '(3$570(17 2) 32/,7,&$/ 6&,(1&( 3 %2; *$,1(69,//( )/25,'$ 6 ,'(17,),&$7,21 7KH SXUSRVH RI FKLV QDFLRQDO VXUYH\ LV FR JDFKHU LQIRUPDFLQ RQ KRZ OHJLVODFRUnV SROLF\ SULRULFLHV FRPPLFFHH DVVLJQPHQFV DQG OHJLVODFLYH FDXFXVHV LQIOXHQFH SROLF\ PDNLQJ LQ VFDFH OHJLVODFXUHV
PAGE 195

6859(< 2) 67$7( /(*,6/$7256 6(&7,21 21( /(*,6/$7,9( 35,25,7,(6 ,Q WKH VSDFHV EHORZ SOHDVH LQGLFDFH FKH WKUHH PRVW LPSRUWDQW LVVXHV RU SUREOHPVf WKDW IDFHG \RXU VWDWH OHJLVODWLYH FKDPEHU LQ WKH VHVVLRQ /$f 0RVW LPSRUWDQW LVVXH LV ,%f 6HFRQG PRVW LPSRUWDQW LVVXH &f 7KLUG PRVW LPSRUWDQW LVVXH $V DQ LQGLYLGXDO OHJLVODWRU ZKDW WKUHH M RHUVRQDOOY IRU WKLV OHJLVODWLYH VHVVLRQ" LVXHV ZHUH PRVW LPSRUWDQW WR \RX 3OHDVH OLVW EHORZ LQ RUGHU RI LPSRUWDQFL ELOOV YRX VSRQVRUHG LQ WKLV OHJLVODWLYH L PRVW LPSRUWDQWf %LOO 7LWOH %LOO %LOO W WR \RX WKH WKUHH PRVW LPSRUWDQW OHVVLRQ %LOO VKRXOG EH WKH OXPEHU 3ROLF\ $UHD %LOO %LOO )RU WKH ELOOV \RX MXVW OLVWHG SOHDVH LQGLFDWH HDFK ELOOnV RXWFRPH VR IDUf LQ WKLV VHVVLRQ &KHFK DV PDQ\ RI WKH IROORZLQJ IRU HDFK ELOO DV DSSO\ 3DVVHG 3DVVHG 3DVVHG 6LJQHG E\ (QDFWHG 9HWRHG E\ 3DVVHG &RPPLWWHH &KDPEHU /HJLVODWXUH *RYHUQRU LQWR ODZ *RYHUQRU RYHU YHWR %LOO %LOO %LOO 2Q LPSRUWDQW OHJLVODWLRQ KRZ RIWDQ GR PHPEHUV RI \RXU SROLWLFDO SDUW\ YRWH DOLNH LQ WKH VDPH ZD\f" $OPRVW 1HYHU 6HOGRP 6RPHWLPHV 2IWHQ $OPRVW $OZD\V

PAGE 196

%DORY DUD JRDOV VRVD ODJODODFRUD WKLQN DUD ,PSRUWDQW 3OHDVH SXW D nn E\ DDFK JRDO RX FRQDLGDU YDU\ LPSRUWDQW SXW D nn E\ DDFK JRDO \RX FRQDLGDU PRGDUDWDO\ ,PSRUWDQW DQG SXW D nn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nn E\ WKD JURXSV \RX FRQVLGHU PRVW LPSRUWDQW D nn E\ JURXSV \RX FRQVLGHU PRGDUDWDO\ LPSRUWDQW DQG D nn JURXSV \RX FRQVLGHU ODVV LPSRUWDQW HQYLURQPHQWDOLVWV ODERU XQLRQV /DWLQRV+VSDQOHV SROLWLFDO SDUW\ OHDGHUV ZRPDQnV JURXSV %ODFNV $IULFDQ$PHULFDQVf EXVLQHVV JURXSV FKLOGUHQnV ZHOIDUH JURXSV &KULVWLDQ FRDOLWLRQ WKD GLVDGYDQWDJHG HGXFDWLRQ JURXSV 2WKHU SODDVD VSHFLI\ 'R \RX ZRUN LQ SROLF\ FRDOLWLRQV ZLWK JURXSV RI %ODFNV $IULFDQ$PHULFDQVf +VSDQOHV RU ZRPDQ LQ RUGHU WR JDW \RXU SULRULW\ ELOOV SDVVHG"
PAGE 197

6(&7,21 7:2 32/,&< $77,78'(6 3$57 3OHDVr FKHFN WKH EODQN EHORZ ZKLFK EHHW UHIOHFWV \RXU SHUVRQDO DWWLWXGH RQ WKH IROORZLQJ SROLFLHV DIIHFWLQJ ZRPHQ 6WURQJO\ DP 6WURQJO\ $JUHH $JUHH 1HXWUDO 'LVDJUHH 'LVDJUHH 6WDWHV VKRXOG QRW HQIRUFH VWURQJHU OHJDO VDQFWLRQV DJDLQVW SDUHQWV ZKR RZH EDFN XQSDLGf FKLOG VXSSRUW $ JUHDWHU SURSRUWLRQ RI SXEOLF PHGLFDO UHVHDUFK PRQH\ VKRXOG JR WR WKH HDUO\ GLDJQRVLV DQG WUHDWPHQW RI RVWHRSRURVLV FHUYLFDO t EUHDVW FDQFHU 0RUH ZRPHQ VKRXOG EH DSSRLQWHG WR SXEOLF RIILFH 6WDWHV QR ORQJHU QHHG ODZV SURKLELWLQJ VH[XDO KDUDVVPHQW DQG MRE GLVFULPLQDWLRQ DJDLQVW ZRPHQ 7R UHGXFH DQG SUHYHQW XQZDQWHG SUHJQDQFLHV VWDWH KHDOWK GHSDUWPHQWV VKRXOG JLYH RXW FRQGRPV DQG ELUWK FRQWURO SLOOV WR WHHQV RQ UHTXHVW 6(&7,21 7+5(( /(*,6/$7,9( &$8&86(6 f :RPHQnV &DXFXV ,V WKHUH D IRUPDO RU LQIRUPDO ZRPHQnV FDXFXV LQ \RXU OHJLVODWLYH FKDPEHU"
PAGE 198

,I \RXU FKDPEHU KDD D ZRPDQnD FDXFXD KRZ DIIHFWLYH GR \RX FKLQN LW LD LQ LQIOXHQFLQJ WKH IROORZLQJ" 1RW $ /LWWOH 6DPH 9HU\ 'RQnW $W $OO 0XFK .QRZ $ JHWWLQJ PRUH ZRPHQ DSSRLQWHG &R LPSRUWDQW FRPPLWWHHD EULQJLQJ QHZ LWHPH FRQFHUQLQJ ZRPDQ K FKLOGUHQ WR WKH DJHQGD &JHWWLQJ PRUH NLQGV RI FLWL]HQDn JURXSD LQYROYHG LQ SROLF\PDNLQJ EHWWHU UHSUHDHQWLQJ ZRPDQnD SROLF\ LQFDUHDWD DQG FRQFDPD ( LQIOXHQFLQJ SROLF\ RXWFRPDH DIIHFWLQJ ZRPHQ DQG FKLOGUHQ 27+(5 /(*,6/$7,9( &$8&86(6 ,D WKHUH D IRUPDO RU LQIRUPDO 6ODFN $IULFDQ$PHULFDQf FDXFXD LQ \RXU ODJLDODWXUH" 7HD 1R GRQnW NQRZ ,I \HD DUH \RX D PHPEHU"
PAGE 199

3OHDVH UDQN FKD ODJLDODFLYD FRPPLWWHHV RQ ZKLFK \RX VDUYD LQ LPSRUWDQFH FR \RX $OVR LQGLFDUD < LI \RX FKDLU DQ\ RI FKDDD FRLDPLWWDDD W 1 LI QRFf 0RDW LPSRUWDQW FRPPLWWDD &KDLU" 6DFRQG PRDW LPSRUWDQW &KDLU" 7KLUG PRDW LPSRUWDQW &KDLU" ,I \RX FKDLU D FRPPLWWDD RU KDYD GRQD DR LQ SUDYLRXD DDDDLRQDf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n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f 2WKDU SODDDD VSHFLI\

PAGE 200

:KDW LV \RXU RFFXSDWLRQSURIHDVLRQ" DWWRUQH\ EXVLQDVV RZQHU OHJLVODWRU SURIHVVLRQDO FODULFDORIILFD ZRUNHU HGXFDWRU f§ PDQDJHU QRQH UDDO DHWDWD IDUPHUUDQFKDU QXUVH 2WKDU SODDVD VSHFLI\ 6(&7,21 6,; *5283 0(0%(56+,36 $1' 32/,7,&$/ 6833257 3OHDVD LQGLFDWr EHORZ WKRDD RUJDQLLDWRQr RI ZKLFK \RX DUD D cVDPEDU &KHFN DQ\ RWKDU FDFDJRU\ WKDW PD\ DSSO\ WR WKD RUJDQL]DWLRQ 3DUWLFXODUO\ LQGLFDWD ZKLFK RUJDQL]DWLRQ JDYD \RX KDOS PRQD\ FDPSDLJQ ZRUNHUV RU DQGRUDDPDQWf RU RSSRDDG \RX GXULQJ \RXU PRDW UDFDQW DODFWLRQ FDPSDLJQ &DPSDLJQ $FWLYLW\LQ
PAGE 201

$UH \RX FXUUHQWO\ HPSOR\HG LQ DGGLWLRQ WR \RXU GXWLHV DV D VWDWH OHJLVODWRU" B 1R
PAGE 202

$33(1',; &5($7(' 9$5,$%/( ,1',&(6 $1' 6&$/(6 ,QWURGXFWLRQ 7KLV DSSHQGL[ GHWDLOV WKH FRQVWUXFWLRQ PHDVXUHPHQW DQG LQGLFDWRUV XVHG LQ FUHDWLQJ WHQ LPSRUWDQW YDULDEOH LQGLFHV XVHG LQ WKLV UHVHDUFK 7KHVH LQFOXGH IRXU LQGHSHQGHQW YDULDEOHV f OLQNDJHV WR ZRPHQnV JURXSV :20*5283f f WKH OHYHO RI RUJDQL]DWLRQ RI D ZRPHQnV OHJLVODWLYH FDXFXV :&$8&86f f VXSSRUW IRU VSHQGLQJ RQ ZRPHQnV LVVXHV 63(1':20f DQG f VXSSRUW IRU IHPLQLVW LVVXHV )(0,1';f 'HSHQGHQW YDULDEOHV GLVFXVVHG ZLOO LQFOXGH f WKH SHUFHLYHG HIIHFWLYHQHVV DQG LQIOXHQFH RI D ZRPHQnV FDXFXV ())(&79f f VXSSRUW IRU ZRPHQnV SROLFLHV :32/,&
PAGE 203

3URIHVVLRQDO :RPHQnV $VVRFLDWLRQ WKH 1DWLRQDO :RPHQnV 3ROLWLFDO &DXFXV DQG 3UR&KRLFH *URXSV )RU HDFK RUJDQL]DWLRQ LQ ZKLFK D OHJLVODWRU LV D PHPEHU WKH VFDOH LV LQFUHDVHG E\ RQH 7KH VFDOH LV LQFUHDVHG E\ WZR IRU HDFK RUJDQL]DWLRQ WKDW FRQWULEXWHG ILQDQFLDOO\ GXULQJ WKH OHJLVODWRUnV ODVW HOHFWLRQ FDPSDLJQ )RU HDFK OLVWHG RUJDQL]DWLRQ WKDW HQGRUVHG WKH OHJLVODWRU GXULQJ WKH ODVW HOHFWLRQ F\FOH WKH VFDOH LV LQFUHDVHG E\ WKUHH $ WRWDO VFDOH YDOXH RI ]HUR LQGLFDWHV WKH OHJLVODWRU LV QRW D PHPEHU RI GLG QRW UHFHLYH DQ\ ILQDQFLDO FRQWULEXWLRQV IURP DQG ZDV QRW HQGRUVHG E\ DQ\ RI WKH VHYHQ RUJDQL]DWLRQV 7KH KLJKHU WKH YDOXH RI WKH VFDOH WKH PRUH QXPHURXV DQG VWURQJHU WKH OLQNDJHV EHWZHHQ D OHJLVODWRU DQG IRUPDO ZRPHQnV JURXSV :20*5283f :RPHQnV /HJLVODWLYH 3ROLWLFDO &DXFXV :&$8&86f 7KH ZRPHQnV SROLWLFDO FDXFXV YDULDEOH :&$8&86f LV D FXPXODWLYH VFDOH WKDW PHDVXUHV WKH OHYHO RI IRUPDO RUJDQL]DWLRQ RI D VWDWHnV ZRPHQnV OHJLVODWLYH FDXFXV ,W DOVR PHDVXUHV ZKHWKHU DQ LQGLYLGXDO OHJLVODWRU LV D PHPEHU RU FDXFXV RIILFHU 7KLV YDULDEOH DSSOLHV RQO\ WR IHPDOH OHJLVODWRUV :&$8&86 GUDZV RQ UHVSRQVHV WR TXHVWLRQV DQG ORFDWHG RQ SDJHV WKUHH DQG IRXU RI WKH IHPDOH OHJLVODWRU VXUYH\ 5HVSRQVHV IURP PDOH OHJLVODWRUV WR TXHVWLRQ DQG DUH FRGHG DV VHSDUDWH YDULDEOHV QRW LQFOXGHG LQ WKLV VFDOH 7KLV ZDV GXH WR D HUURQHRXV GHVLJQ IODZ RQ P\ SDUW EDVHG RQ UHVHDUFK ZKLFK LQGLFDWHG RQO\ WZR VWDWHV 0LVVRXUL DQG 2NODKRPDf KDG ZRPHQnV OHJLVODWLYH SROLWLFDO FDXFXVHV WKDW LQFOXGHG PDOH PHPEHUV %\ WKLV ZDV QR ORQJHU WKH FDVH ,Q WKLV GDWD VHW PDOHV IURP HLJKW VWDWHV &7 ,/ 0, 0( 1+ 10 25 DQG 97f UHSRUW WKH\ DUH PHPEHUV RI WKHLU VWDWH OHJLVODWXUHnV ZRPHQnV SROLWLFDO FDXFXV 7KH YDOXH RI WKH :&$8&86 VFDOH LV LQFUHDVHG E\ RQH IRU HDFK RI WKH IROORZLQJ WKDW DUH WUXH LI WKH FDXFXV LV IRUPDOO\ RUJDQL]HG LW KDV PDOH PHPEHUV DQG LI WKH OHJLVODWRU LV D ZRPHQnV FDXFXV PHPEHU 7KH YDOXH LV DOVR LQFUHDVHG E\ RQH IRU DQ\ RI WKH IROORZLQJ LI WKH OHJLVODWRU KROGV DQ\ FDXFXV RIILFH LI WKH OHJLVODWRU LV HLWKHU WKH FDXFXV FKDLUFRFKDLU RU WKH LPPHGLDWH SDVW FKDLUFRFKDLU &DXFXVHV WKDW DUH ELSDUWLVDQ PHHW UHJXODUO\ DW OHDVW PRQWKO\f DQG VXSSRUW DQ DJUHHG XSRQ SROLF\ DJHQGD RI LVVXHV DUH DOVR LQFUHDVHG E\ RQH IRU HDFK n‘&HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV :RPHQnV &DXFXVHV LQ 6WDWH /HJLVODWXUHV &$:3 1HZV DQG 1RWHV 6XPPHU f

PAGE 204

FRQGLWLRQ 7KLV FXPXODWLYH VFDOH UDQJHV IURP D PLQLPXP YDOXH RI ]HUR WR D SRWHQWLDO PD[LPXP RI WZHOYH 6SHQGLQJ RQ WUDGLWLRQDO ZRPHQnV LVVXHV 63(1':20f 6XSSRUW IRU WUDGLWLRQDO ZRPHQn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nV WUDGLWLRQDO SROLFLHVf WR D SRWHQWLDO PD[LPXP YDOXH RI WZHOYH OHDVW VXSSRUWLYH RI IXQGLQJ IRU SROLFLHV LQ WKHVH DUHDVf 8QOLNH SUHYLRXV FUHDWHG VFDOHV WKH ORZHU WKH YDOXH RI 63(1':20 WKH PRUH VXSSRUWLYH WKH OHJLVODWRU LV RI IXQGLQJ IRU ZRPHQnV WUDGLWLRQDO SROLFLHV 6XSSRUW IRU )HPLQLVW 3ROLF\ ,VVXHV )(0,1';f 7KH IHPLQLVW SROLF\ LQGH[ )(0,1';f LQ WKLV UHVHDUFK EXLOGV XSRQ 6DLQW*HUPDLQnV EDVLF FRQFHSWV ,W DOVR KDV URRWV LQ WKH IHPLQLVP LQGH[ GHYHORSHG E\ 6XVDQ *OXFN 0H]H\ f LQ KHU DQDO\VLV RI ORFDO IHPDOH SROLWLFLDQV LQ &RQQHFWLFXW DQG %HWK 5HLQJROGnV PRUH UHFHQW EDWWHU\ RI IHPLQLVW LVVXH TXHVWLRQV 7KLV IHPLQLVW SROLF\ LQGH[ )(0,1';f KDV ILYH LQGLFDWRUV EDVHG RQ UHVSRQVHV WR TXHVWLRQV WKURXJK RQ SDJH WKUHH RI WKH VXUYH\ 7KHVH TXHVWLRQV LQFOXGH LWHPV DGDSWHG IURP WKH SROLWLFV DQG OHJLVODWLRQ VHFWLRQ RI D $WWLWXGHV WRZDUG )HPLQLVW ,VVXHV 6FDOH $7),f E\ (OPRUH %URGVN\ DQG 1DII]LJHU f 7KH $7), VFDOH ZDV GHYHORSHG 6HH %HWK 5HLQJROGnV $SSHQGL[ E 6DPSOH :ULWWHQ 4XHVWLRQQDLUH SDJH 6HFWLRQ ) LQ KHU GLVVHUWDWLRQ 5HSUHVHQWLQJ ZRPHQ *HQGHU GLIIHUHQFHV DPRQJ $UL]RQD DQG &DOLIRUQLD VWDWH OHJLVODWRUV Df

PAGE 205

IURP SDUDSKUDVLQJ WKH UHVROXWLRQV RI WKH QDWLRQDO FRQYHQWLRQ SODWIRUP RI WKH 1DWLRQDO 2UJDQL]DWLRQ IRU :RPHQ %HHUH f 7KH VFDOHnV UHOLDELOLW\ DQG YDOLGLW\ ZHUH WHVWHG LQ D WHVWUHWHVW PRGHO RQ ZRPHQnV VWXG\ DQG SV\FKRORJ\ FROOHJH VWXGHQWV )HPDOH VWXGHQWV VFRUHG VLJQLILFDQWO\ KLJKHU WKDQ WKHLU PDOH FRXQWHUSDUWV RQ DOO LVVXHV H[FHSW FKLOG FDUH DW WKH 3 f OHYHO 7KH VWURQJHU OHJDO VDQFWLRQV DJDLQVW SDUHQWV ZKR RZH FKLOG VXSSRUW LQGLFDWRU TXHVWLRQ QXPEHU f ZDV DOVR DGGHG WR WKH LQGH[ EXW VXEVHTXHQWO\ GURSSHG 0RUH HIIHFWLYH HQIRUFHPHQW DQG VWURQJHU VDQFWLRQV IRU XQSDLG VXSSRUW KDYH UHFHQWO\ EHFRPH YHU\ VDOLHQW VWDWH SROLF\ LVVXHV /HJLVODWLYH OHDGHUV SURMHFWHG WKH\ ZRXOG EHFRPH LPSRUWDQW SROLF\ DJHQGD LWHPV LQ VWDWH OHJLVODWXUHV GXULQJ WKH VHVVLRQV +RZHYHU UHVSRQVHV WR TXHVWLRQ WKLUWHHQ ZHUH ODWHU GURSSHG IURP WKH IHPLQLVW LQGH[ ,W SHUIRUPHG SRRUO\ GXH WR D ODFN RI GLIIHUHQFH YDULDQFHf RI RSLQLRQ RQ WKH LVVXH 2I WKH OHJLVODWRUV ZKR UHVSRQGHG WR TXHVWLRQ WKLUWHHQ bf DJUHHG VWURQJHU OHJDO VDQFWLRQV VKRXOG EH HQIRUFHG DJDLQVW QRQFXVWRGLDO SDUHQWV ZKR ZHUH GHOLQTXHQW LQ SD\LQJ FKLOG VXSSRUW DJUHHG DQG VWURQJO\ DJUHHGf &UHDWHG 'HSHQGHQW 9DULDEOH (IIHFWLYHQHVV RI WKH :RPHQnV &DXFXV ())(&79f 7KLV YDULDEOH ())(&79f DSSOLHV RQO\ WR WKRVH VWDWHV ZKRVH UHSUHVHQWDWLYHV UHSRUWHG KDYLQJ D ZRPHQnV SROLWLFDO FDXFXV LQ WKHLU VWDWH OHJLVODWXUH ,W LV D FXPXODWLYH VFDOH RI TXHVWLRQ LWHPV $ WKURXJK ( IURP SDJH IRXU RI WKH VXUYH\ 7KH VFDOH PHDVXUHV OHJLVODWRUVn RSLQLRQV RI WKH HIIHFWLYHQHVV RI WKHLU VWDWHnV ZRPHQnV FDXFXV LQ LQIOXHQFLQJ ILYH VSHFLILF DUHDV RI WKH DJHQGD VHWWLQJ DQG SROLF\ PDNLQJ SURFHVV 4XHVWLRQV $ WKURXJK ( DVNHG OHJLVODWRUV KRZ PXFK LQIOXHQFH WKH\ SHUFHLYHG WKHLU FKDPEHUnV ZRPHQnV FDXFXV KDV RQ $f JHWWLQJ PRUH ZRPHQ DSSRLQWHG WR LPSRUWDQW FRPPLWWHHV %f EULQJLQJ PRUH LWHPV FRQFHUQLQJ ZRPHQ DQG FKLOGUHQ WR WKH DJHQGD &f JHWWLQJ PRUH NLQGV RI FLWL]HQVn JURXSV LQYROYHG LQ WKH SROLF\ PDNLQJ SURFHVV 'f EHWWHU UHSUHVHQWLQJ 6HH 7DEOH 3XEOLF $VVLVWDQFH 5HIRUP (IIRUWV LQ LQ 6WDWH /HJLVODWLYH 3ULRULWLHV $Q 2SLQLRQ 6XUYH\ RI /HDGLQJ /DZPDNHUV 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV -DQXDU\ Ef

PAGE 206

ZRPHQnV SROLF\ LQWHUHVWV DQG (f LQIOXHQFLQJ WKH RXWFRPH RI SROLFLHV DIIHFWLQJ ZRPHQ DQG FKLOGUHQ 9DOXHV RI ())(&79 UDQJH IURP ]HUR OHDVW HIIHFWLYHf WR D SRWHQWLDO PD[LPXP YDOXH RI WZHQW\ PRVW HIIHFWLYHf )RU HDFK 1RW DW DOO UHVSRQVH RQ LWHPV $ WR ( WKH VFDOH LV LQFUHDVHG E\ RQH 7KH VFDOH LV LQFUHDVHG E\ WZR IRU HDFK $ /LWWOH UHVSRQVH DQG LV LQFUHDVHG E\ WKUHH IRU HDFK 6RPH UHSO\ )RU HDFK 9HU\ 0XFK UHSO\ WKH VFDOH LV LQFUHDVHG E\ IRXU 5HVSRQVHV RI 'RQnW .QRZ DUH FRGHG WR EH ]HUR 6XSSRUW IRU :RPHQnV 3ROLFLHV LQ %LOOV 6SRQVRUHG :32/,&
PAGE 207

IXQGLQJ IRU ZRPHQ LQ REWDLQLQJ KLJKHU HGXFDWLRQ +HDOWK FRQFHUQV RQ WKH IHPLQLVW DJHQGD LQFOXGH 3URFKRLFH LVVXHV RWKHU J\QHFRORJLFDO DQG ZRPHQnV KHDOWK LVVXHV VXFK DV HDUO\ EUHDVW FDQFHU GHWHFWLRQ DQG WUHDWPHQW OLQNHG WR UHTXLUHG LQVXUDQFH FRYHUDJH IRU PDPPRJUDSKLHV DQG WKH SUHYHQWLRQ DQG WUHDWPHQW RI RVWHRSRURVLV 6RPH GRPHVWLF DQG IDPLO\ LVVXHV LQFOXGHG LQ WKH IHPLQLVW EXW QRW LQ WKH ZRPHQnV SROLF\ DJHQGDf DUH IDPLO\ ODZ UHIRUPV GLYRUFH DGRSWLRQ FXVWRG\f $QRWKHU IDPLO\ LVVXH RI LPSRUWDQFH LV SUHYHQWLQJ WHHQ SUHJQDQF\ WKURXJK DFFHVV WR VDIH DQG HIIHFWLYH IDPLO\ SODQQLQJ FRQWUDFHSWLRQ DQG DERUWLRQ ZLWKRXW SDUHQWDO QRWLILFDWLRQ MXGLFLDO FRQVHQW RU OHJLVODWLYH LQWHUYHQWLRQ )RU HDFK SULRULW\ ELOO VSRQVRUHG LQ RQH RI WKHVH FRQWHQW DUHDV WKH VFDOH LV LQFUHDVHG E\ RQH XS WR D PD[LPXP RI WKUHH 3HUFHLYHG 3HUVRQDO 3ROLF\ 6XSSRUW ,PSRUWDQW IDFWRUV ZKLFK PD\ SUHYHQW D OHJLVODWRU IURP VXEPLWWLQJ DQG VSRQVRULQJ ELOOV LQFOXGH f EHLQJ D ILUVW WHUP OHJLVODWRU f EHLQJ LQ WKH PLQRULW\ SDUW\ DQG f EHLQJ HOHFWHG WR D FLWL]HQ RU DPDWHXU OHJLVODWXUH ZKLFK ODFNV H[SHUWLVH RU DXWKRULW\ WR GUDIW PXFK OHJLVODWLRQ $QRWKHU LPSRUWDQW IDFWRU LQ WKLV VDPSOH ZKLFK GHFUHDVHG D OHJLVODWRUnV DELOLW\ WR VSRQVRU ELOOV ZDV EHORQJLQJ WR D VXSHUVL]HG OHJLVODWLYH FKDPEHU VXFK DV WKH PHPEHU 1HZ +DPSVKLUH *HQHUDO &RXUW +RXVHf )RU WKHVH UHDVRQV DFWXDO ELOO VSRQVRUVKLS PD\ EH VXSSUHVVHG DQG DQ DUWLILFLDOO\ ORZHUHG PHDVXUH RI D OHJLVODWRUnV VXSSRUW IRU LVVXHV 7KHUHIRUH WZR DGGLWLRQDO GHSHQGHQW YDULDEOHV WKDW PHDVXUH WKH OHJLVODWRUnV VHOI LGHQWLILHG WKUHH PRVW LPSRUWDQW OHJLVODWLYH SULRULWLHV UHJDUGOHVV RI ZKHWKHU WKH OHJLVODWRU DFWXDOO\ VSRQVRUHG DQ\ ELOOV DUH XVHG 3HUVRQDO VXSSRUW IRU :RPHQnV 3ROLF\ :332/,&
PAGE 208

3HUVRQDO 6XSSRUW IRU )HPLQLVW 3ROLFLHV )332/,&
PAGE 209

$33(1',; ( 5(6($5&+ 352&('85(6 6XUYH\ 3UHWHVWLQJ $ ELSDUWLVDQ PXOWLHWKQLF VDPSOH RI WZHOYH )ORULGD OHJLVODWRUV LQFOXGLQJ IHPDOH DQG PDOH VWDWH 6HQDWRUV DQG +RXVH PHPEHUV ZDV VHOHFWHG IRU SUHWHVWLQJ WKH VXUYH\ LQVWUXPHQW $OO SUHWHVW OHJLVODWRUVn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n QXPHULF FRGH OLQNHG WR D FRQILGHQWLDO OLVW RI OHJLVODWRU QDPHV %\ -XQH WHQ OHJLVODWRUV IRXU VHQDWRUV DQG VL[ UHSUHVHQWDWLYHVf KDG FRPSOHWHG WKH VXUYH\ LQVWUXPHQW DQG DJUHHG WR SDUWLFLSDWH LQ IROORZXS LQSHUVRQ RU SKRQH GHEULHILQJV 7KHVH GHEULHILQJV DYHUDJHG WKLUW\ PLQXWHV DQG UDQJHG IURP ILIWHHQ PLQXWHV WR RQH SKRQH GHEULHILQJ ODVWLQJ RYHU DQ KRXU /HJLVODWRUVn FRPPHQWV FULWLFLVPV DQG VXJJHVWLRQV RQ WKH VWXG\ WKH SDFNHW DQG WR LPSURYH WKH LQVWUXPHQW ZHUH VROLFLWHG 0DQ\ RI WKHVH VXJJHVWLRQV UHVXOWHG LQ FODULILFDWLRQV DGGLWLRQV DQG D IHZ GHOHWLRQV WR WKH VXUYH\nV FORVH HQG TXHVWLRQ UHVSRQVHV 7KHVH FKDQJHV VLJQLILFDQWO\ LPSURYHG WKH LQVWUXPHQW UHGXFHG VRPH RI WKH DFDGHPLF MDUJRQ DQG PDGH WKH VXUYH\ PRUH DSSURSULDWH DQG GLUHFWO\ UHODWHG WR OHJLVODWRUVn FRQFHUQV 6HYHUDO OLPLWDWLRQV WR SUHWHVWLQJ RQ D FRQYHQLHQFH VDPSOH IURP RQH VWDWH UDWKHU WKDQ D PXOWLVWDWH PRUH UDQGRP SUHWHVW VDPSOH EHFDPH FOHDU RQFH QDWLRQDO VDPSOH UHVSRQVHV ZHUH UHFHLYHG )ORULGD OLNH PDQ\ VRXWKHUQ VWDWHV LV D ULJKW WR ZRUN DQWLODERU XQLRQf VWDWH ZKLFK UHVXOWHG LQ DVVXPSWLRQV WKDW OHG WR VRPH RPLVVLRQV RI ODERU XQLRQV LQ WKH JURXS VXSSRUW TXHVWLRQV 1DWLYH $PHULFDQ LVVXHV

PAGE 210

HVSHFLDOO\ JDPLQJ DQG FDVLQRV ZKLFK ZHUH YHU\ LPSRUWDQW RQ PDQ\ PLGZHVW DQG ZHVWHUQ OHJLVODWXUHVn DJHQGDV ZHUH QRW DQWLFLSDWHG RU LQFOXGHG LQ WKH HWKQLF JURXS LQIOXHQFH TXHVWLRQV 6RPH OHJLVODWRUV FRPSHQVDWHG IRU WKLV RYHUVLJKW E\ DGGLQJ WKHVH LVVXHV XQGHU WKH RSHQHQG RWKHU JURXS VHFWLRQV %HFDXVH DOO SUHWHVW OHJLVODWRUV ZHUH GUDZQ IURP D VLQJOH VWDWH WKH )ORULGD UHVSRQVH UDWH RQ WKH ILQDO YHUVLRQ RI WKH VXUYH\ ZDV DUWLILFLDOO\ ORZHUHG RQ TXHVWLRQV VXEVHTXHQWO\ DGGHG RU DOWHUHG DV D UHVXOW RI LPSOHPHQWLQJ SUHWHVW UHFRPPHQGDWLRQV 3UHVXUYHY EURFKXUHV &RORU WULIROG EURFKXUHV WR SXEOLFL]H WKH XSFRPLQJ QDWLRQDO VXUYH\ DQG WR HQFRXUDJH IHPDOH OHJLVODWRU SDUWLFLSDWLRQ ZHUH SULQWHG DQG GHOLYHUHG WR WKH 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHVn DQQXDO FRQIHUHQFH LQ 0LOZDXNHH 6HH $SSHQGL[ *f 7KH\ ZHUH GLVWULEXWHG LQ FRQIHUHQFH SDFNHWV WR WKH DSSUR[LPDWHO\ IHPDOH OHJLVODWRUV ZKR DWWHQGHG WKH :RPHQnV 1HWZRUN NH\QRWH EDQTXHW DW WKH FRQIHUHQFH 6HQDWRU 0\UQD %DLU '(5f LQFRPLQJ :RPHQnV 1HWZRUN 3UHVLGHQW DQG FRVLJQHU RQ WKH FRYHU OHWWHUV WR IHPDOH OHJLVODWRUV DFWLYHO\ VXSSRUWHG WKH VXUYH\ 6KH HQFRXUDJHG 1HWZRUN PHPEHUV WR SDUWLFLSDWH LQ WKH VXUYH\ DQG WR UHVSRQG WR TXHVWLRQV ZKLFK ZH MRLQWO\ DGGHG WR KHOS HQFRXUDJH ZRPHQnV SDUWLFLSDWLRQ LQ XSFRPLQJ UHJLRQDO :RPHQnV 1HWZRUN /HDGHUVKLS 'HYHORSPHQW SURJUDPV 8QIRUWXQDWHO\ WKH &DOLIRUQLD $VVHPEO\ ZDV FDOOHG LQWR VSHFLDO VHVVLRQ MXVW SULRU WR WKH FRQIHUHQFH DQG LWV IHPDOH PHPEHUV LQFOXGLQJ WKH RXWJRLQJ 1HWZRUNnV SUHVLGHQW ZHUH XQDEOH WR DWWHQG 6XUYH\ SDFNHW FRQWHQWV (DFK VXUYH\ SDFNHW FRQWDLQHG D SULQWHG IXOO\ DVVHPEOHG HLJKW SDJH [ VSLQH VDGGOHf VWDSOHG VXUYH\ ERRNOHW %RRNOHWV ZHUH SULQWHG LQ WZR GLIIHUHQW QHXWUDO FRORUV 7KH IURQW FRYHU RI HDFK VXUYH\ LQFOXGHG LQVWUXFWLRQV D JUDSKLF RI WKH 1HZ +DPSVKLUH VWDWHKRXVH D QXPHULF FRGH IRU LGHQWLILFDWLRQ E\ VWDWH DQG OHJLVODWRUf DQG FRQILGHQWLDOLW\ JXDUDQWHH 6XUYH\ ERRNOHWV PDLOHG WR IHPDOH OHJLVODWRUV ZHUH DFFRPSDQLHG E\ D SULQWHG FRYHU OHWWHU ZLWK WKH LQGLYLGXDO OHJLVODWRUnV DGGUHVV DQG VDOXWDWLRQ KDQG W\SHG /HWWHUV WR IHPDOHV ZHUH SULQWHG ZLWK WKH 8QLYHUVLW\ RI )ORULGD 'HSDUWPHQW RI 3ROLWLFDO 6FLHQFH OHWWHUKHDG PDVWKHDG DQG ZHUH FRVLJQHG E\ 6HQDWRU 0\UQD %DLU '(5f SUHVLGHQW RI WKH 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHVn :RPHQnV &DXFXV DQG WKH DXWKRU 7KHVH OHWWHUV

PAGE 211

VWUHVVHG WKH LPSRUWDQFH RI ZRPHQnV LPSDFW RQ SXEOLF SROLF\ PDNLQJ DQG HQFRXUDJHG WKH IHPDOH OHJLVODWRUV WR UHTXHVW DGGLWLRQDO LQIRUPDWLRQ DERXW WKH 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV 1&6/f :RPHQnV 1HWZRUN /HDGHUVKLS 3URJUDPV &RYHU OHWWHUV VHQW WR PDOH OHJLVODWRUV ZHUH SULQWHG LQ WZR FRORUV EODFN WH[W ZLWK WKH JROG VHDO RI RIILFHf XVLQJ WKH PDVWKHDG RI )ORULGD 6HQDWRU *HRUJH .LUNSDWULFN )/'f ZKR VLJQHG WKHP 7KH FRQWHQW RI WKH PDOH OHJLVODWRU OHWWHU ZDV LGHQWLFDO WR WKH OHWWHUV VHQW WR IHPDOH OHJLVODWRUV H[FHSWLQJ IRU WKH RYHUW HPSKDVLV RQ ZRPHQ OHJLVODWRUV DQG WKH 1&6/ TXHVWLRQV 7KH PDOH OHJLVODWRUVn OHWWHUV HPSKDVL]HG VWXG\LQJ WKH HIIHFWV RI LQFUHDVHG GLYHUVLW\ DPRQJ VWDWH OHJLVODWRUV RI ERWK SDUWLHV LQFOXGLQJ ZRPHQ DQG HWKQLF PLQRULWLHV 6XUYH\V VHQW WR PDOH OHJLVODWRUV ZHUH VOLJKWO\ GLIIHUHQW WKDQ WKRVH VHQW WR WKH IHPDOHV 4XHVWLRQV UHTXHVWLQJ LQIRUPDWLRQ DERXW LQWHUHVW LQ RU DWWHQGLQJ WKH :RPHQnV 1HWZRUN /HDGHUVKLS &RQIHUHQFHVf DQG WKH ILQDO TXHVWLRQ XQQXPEHUHGf DERXW SODQV WR DWWHQG WKH )RXUWK TXDGUHQQLDO &RQIHUHQFH IRU :RPHQ 6WDWH /HJLVODWRUV VSRQVRUHG E\ WKH &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV ZHUH RPLWWHG $ &$:3 TXDOLWDWLYH VXUYH\ DERXW ZRPHQnV OHJLVODWLYH FDXFXVHV IRXQG PDOHV ZHUH PHPEHUV RI ZRPHQnV OHJLVODWLYH FDXFXVHV LQ RQO\ RQH VWDWH 0LVVRXUL 7KHUHIRUH LQ RUGHU WR GHFUHDVH WKH VXUYH\nV FRPSOH[LW\ HQFRXUDJH PRUH UHSOLHV DQG UHGXFH UHIXVDOV EDVHG RQ VXUYH\ OHQJWK TXHVWLRQV DQG LQ WKH IHPDOH OHJLVODWRU VXUYH\ ZHUH RPLWWHG IURP WKH PDOH OHJLVODWRU VXUYH\ 7KH DVVXPSWLRQ WKDW RQO\ 0LVVRXUL KDG PDOH PHPEHUV LQ LWV ZRPHQnV OHJLVODWLYH FDXFXVHV SURYHG WR EH HUURQHRXV (LJKWHHQ PDOH OHJLVODWRUV 'HPRFUDWV DQG WZR 5HSXEOLFDQV IURP D WRWDO RI HLJKW VWDWHV &7 ,/ 0( 0, 1+ 10 25 DQG 97f UHSRUWHG WKH\ ZHUH PHPEHUV RI WKHLU VWDWHnV ZRPHQnV OHJLVODWLYH FDXFXVHV )HPDOH FDXFXV RIILFHUV DQG PHPEHUV RI ZRPHQnV OHJLVODWLYH FDXFXVHV LQ RWKHU VWDWHV LQGLFDWHG DOWKRXJK WKHLU FDXFXV KDG QR PDOH PHPEHUV PHQ ZHUH QRW SURKLELWHGDQG LQ VRPH VWDWHV ZRXOG EH ZHOFRPHG DV PHPEHUV $ VHOIDGGUHVVHG QXPEHU QLQH EXVLQHVV UHSO\ HQYHORSH ZDV HQFORVHG IRU UHWXUQLQJ WKH FRPSOHWHG VXUYH\ 7KH UHWXUQ HQYHORSHV ZHUH DGGUHVVHG WR 6WDWH /HJLVODWRUV 6XUYH\ XVHG WKH 'HSDUWPHQW RI 3ROLWLFDO 6FLHQFHnV FDPSXV DGGUHVV DQG 8QLYHUVLW\ RI )ORULGD EXVLQHVV UHSO\ SHUPLW LQIRUPDWLRQ 6XUYH\ LQVWUXPHQWV ZHUH LGHQWLILDEOH RQO\ E\ D VL[ GLJLW QXPEHU VWDPSHG E\ QXPEHULQJ PDFKLQH RQ WKH IURQW FRYHU 7KLV FRGH ZDV OLQNHG WR D QDPHV OLVW %RWK WKH FRYHU OHWWHU DQG VXUYH\ IRUP LQIRUPHG OHJLVODWRUV WKHLU SDUWLFLSDWLRQ ZDV An:RPHQnV &DXFXVHV LQ 6WDWH /HJLVODWXUHV &$:3 1HZV DQG 1RWHV 6XPPHU f

PAGE 212

YROXQWDU\ DQG WKDW FRQILGHQWLDOLW\ ZDV HQVXUHG VR WKHLU DQVZHUV ZRXOG QRW EH SHUVRQDOO\ LGHQWLILHG ZLWK WKHP $GPLQLVWHULQJ WKH 6XUYH\ 6XUYH\ ,QVWUXPHQW DQG 0HDVXUHV 3DFNHWV ZHUH PDLOHG ZLWK ILUVW FODVV SRVWDJH QRW PHWHUHG RU EXON PDLOf LQ QXPEHU WHQ SUHVWDPSHG FHQW HQYHORSHV 7KH 3ROLWLFDO 6FLHQFH 'HSDUWPHQWnV UHWXUQ DGGUHVV ZDV VWDPSHG RQ WKHP /HJLVODWRUVn DGGUHVVHV ZHUH KDQG W\SHG XVLQJ D KLJK TXDOLW\ FDUERQ ULEERQ DQG WKH VDPH SULQW IRQW DV WKH FRYHU OHWWHUV 3DFNHWV ZHUH RULJLQDOO\ PDLOHG WR WKH OHJLVODWRUnV SXEOLVKHG DGGUHVV DV LQGLFDWHG LQ WKH 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHVn (OHFWLRQ 5HVXOWV 'LUHFWRU\ HGLWLRQf )LUVW ZDYH PDLO RXW RI VXUYH\V (QYHORSHV FRYHU OHWWHUV DQG QXPEHU VWDPSHG VXUYH\V ZHUH W\SHG DQG DVVHPEOHG LQ DGYDQFH IRU WKH ILUVW ZDYH RI SDFNHW PDLOLQJV WR VWDWH OHJLVODWRUV LQ WKH ILIW\ VWDWHV 7KH ILUVW ZDYH RI PDLOLQJV ZDV VFKHGXOHG IRU PLG -XO\ WR DUULYH DW WKH OHJLVODWRUVn RIILFHV VKRUWO\ DIWHU WKH\ UHWXUQHG IURP WKH QDWLRQDO FRQIHUHQFH ZKHUH IHPDOH OHJLVODWRUV KDG EHHQ DOHUWHG WR H[SHFW WKH VXUYH\Vf 7KH WLPLQJ RI WKH ILUVW PDLOLQJ ZDV DOVR VHOHFWHG EHFDXVH VWDWH OHJLVODWXUHV KDG DOUHDG\ FRPSOHWHG WKHLU VFKHGXOHG VHVVLRQV E\ -XO\ 7KLV ZDV LPSRUWDQW DV PHPEHUV ZRXOG NQRZ WKH ILQDO RXWFRPH RI ELOOV WKH\ KDG VSRQVRUHG GXULQJ WKH VHVVLRQ TXHVWLRQ IRXU RQ WKH VXUYH\f 0RVW \HDUURXQG OHJLVODWXUHV ZHUH RQ VXPPHU UHFHVV IURP WKHLU OHJLVODWLYH VFKHGXOHV 7KH ILUVW ZDYH RI VXUYH\V ZHUH PDLOHG EHJLQQLQJ 0RQGD\ -XO\ DQG FRQWLQXHG WR EH PDLOHG IRU D WRWDO RI QLQH GD\V LQ ORWV RI GDLO\ 7KH .HQWXFN\ OHJLVODWXUH GLG QRW KROG D UHJXODU VHVVLRQ GXULQJ 6HVVLRQ LQIRUPDWLRQ RQ ELOOV DUH IURP WKH .HQWXFN\ OHJLVODWLYH VHVVLRQ

PAGE 213

)LUVW ZDYH UHPLQGHU SRVW FDUGV 3UHVWDPSHG EODQN SRVW FDUGV ZHUH SXUFKDVHG LQ EXON DQG SUHSULQWHG ZLWK D EULHI WKDQN \RX DQG UHPLQGHU VWDWHPHQW 7KH PHVVDJH LQFOXGHG DQ RIIHU WR VHQG D UHSODFHPHQW VDPSOH RQ UHTXHVW LI WKH ILUVW KDG QRW EHHQ UHFHLYHG DQG D FRQWDFW SKRQH QXPEHU 6LPXOWDQHRXVO\ ODVHU FRSLHU VHOIDGKHVLYH ODEHOV ZLWK WKH OHJLVODWRUnV QDPH DQG DGGUHVV ZHUH W\SHG DQG FRSLHG LQ GXSOLFDWH /DEHOHG SUHSULQWHG DQG SUHVWDPSHG UHPLQGHU SRVWFDUGV ZHUH PDLOHG WR DOO OHJLVODWRUV EHJLQQLQJ RQ -XO\ D ZHHN WR WHQ GD\V DIWHU WKH ILUVW SDFNHW PDLOLQJf IRU ILYH GD\V $ WRWDO RI FRPSOHWHG VXUYH\V ZHUH UHFHLYHG WKH IROORZLQJ ZHHN 8S WR UHWXUQLQJ VXUYH\V PD\ KDYH FURVVHG ZLWK WKH UHPLQGHU FDUGV LQ WKH PDLO ,W LV OLNHO\ QHDUO\ VXUYH\V ZHUH UHWXUQHG ZLWKLQ GD\V RI UHFHLYLQJ WKH UHPLQGHUn SRVW FDUGV ,Q DGGLWLRQ OHJLVODWRUV IURP VWDWHVf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n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f ZHUH PDLOHG ILUVW FODVV 7KH QXPEHULQJ LGHQWLILFDWLRQ V\VWHP ZDV VOLJKWO\ PRGLILHG VR D UHWXUQHG VXUYH\ XVLQJ WKH VDPH XQLTXH OHJLVODWRU FRGH QXPEHU FRXOG EH LGHQWLILHG DV KDYLQJ EHHQ SDUW RI WKH ILUVW RU VHFRQG ZDYH GLVWULEXWLRQ

PAGE 214

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f D WRWDO RI VXUYH\V KDG EHHQ UHFHLYHG 6HFRQG ZDYH UHPLQGHU SRVW FDUGV $V EHIRUH UHSULQWHG GDWHG SUHVWDPSHG UHPLQGHU SRVWFDUGV ZLWK SUHFRSLHG SUHVVXUH VHQVLWLYH ODEHOV ZHUH PDLOHG WR OHJLVODWRUV DW WKHLU PRVW FXUUHQW XSGDWHG DGGUHVV 5HPLQGHU FDUGV ZHUH WLPHG WR DUULYH DSSUR[LPDWHO\ RQH ZHHN DIWHU WKH VHFRQG ZDYH PDLOLQJV 7KH ILUVW RQHV ZHUH WLPHG WR DUULYH VKRUWO\ DIWHU /DERU 'D\ DQG FRQWLQXHG LQ RUGHU E\ VWDWH XQWLO 6HSWHPEHU c 1R VHFRQG UHPLQGHU FDUGV ZHUH VHQW WR 1HZ +DPSVKLUH OHJLVODWRUV DV RYHU RQH KXQGUHG PDOHV DQG IHPDOHVf KDG DOUHDG\ UHVSRQGHG $JDLQ SKRQH UHTXHVWV IRU DGGLWLRQDO QRZ D WKLUG FRS\f RI WKH VXUYH\ SDFNHW ZHUH UHFHLYHG IURP OHJLVODWRUV LQ UHVSRQVH WR VHFRQGZDYH UHPLQGHU FDUGV 'XULQJ WKH ODVW WKUHH ZHHNV RI 6HSWHPEHU SUHVXPDEO\ LQ UHVSRQVH WR WKH VHFRQG ZDYH RI UHPLQGHU SRVW FDUGVf DQ DGGLWLRQDO VXUYH\V ZHUH UHFHLYHG ,URQLFDOO\ VRPH VXUYH\V UHWXUQHG DIWHU WKH VHFRQG PDLOLQJ DQG VHFRQG IROORZXS UHPLQGHU FDUG ZHUH WKRVH RULJLQDOO\ VHQW WR OHJLVODWRUV GXULQJ WKH ILUVW ZDYH -XO\ PDLOLQJ $ VHOHFWLYH WKLUG VXUYH\ ZDYH PDLOLQJ 'LOOPDQ LQVWUXFWV VXUYH\ GLUHFWRUV XVLQJ KLV 7RWDO 'HVLJQ 0HWKRG WR VHQG D WKLUG FRPSOHWH PDLOLQJ FHUWLILHG PDLO WR QRQUHVSRQGHQWV VHYHQ ZHHNV DIWHU WKH ILUVW PDLOLQJ f 7KH VLJQLILFDQWO\ LQFUHDVHG SRVWDJH FRVW IRU ZKDW ZRXOG EH GZLQGOLQJ UHWXUQ UDWHVf DQG SUREDEOH DQJHU RI OHJLVODWRUV KDYLQJ WR SHUVRQDOO\ VLJQ IRU LWV UHFHLSW DW SRVW RIILFHV PDGH WKLV UHFRPPHQGDWLRQ XQZLVH DW EHVW LQ WKLV FDVH

PAGE 215

$ WRWDO RI VXUYH\V KDG EHHQ UHFHLYHG ZLWK JHQGHU UHVSRQVH UDWHV RI SHUFHQW IRU IHPDOH DQG SHUFHQW IRU PDOH OHJLVODWRUV 7KLV VDPSOH VL]H PHW WKH PLQLPXP VDPSOH VL]H WKUHVKROG RI EXW WKH IHPDOH VDPSOH RI MXVW EDUHO\ VDWLVILHG WKH PLQLPXP JHQGHU VDPSOH UHTXLUHG $ VHOHFWLYH WKLUG PDLOLQJ ZDV UHTXLUHG WR LQFUHDVH UHVSRQVH UDWHV DQG LQVXUH PLQLPXP VDPSOH GHVLJQ UHTXLUHPHQWV FRXOG EH JXDUDQWHHG $ FDUHIXO VWDWH E\ VWDWH DQDO\VLV RI WKH FRPSOHWHG VXUYH\ VDPSOH GLVWULEXWLRQ E\ JHQGHU DQG FKDPEHUf ZDV GRQH 2FWREHU ILUVW 1R WKLUG PDLOLQJ ZDV VHQW WR 1HZ +DPSVKLUH DV WKH VWDWHnV IHPDOH UHVSRQVH OHYHO KDG DOUHDG\ H[FHHGHG SHUFHQW ZKLFK KDG EHFRPH WKH VDWLVILFLQJ UHVSRQVH OHYHO 7KLUG VRPHZKDW PRUH FRPSHOOLQJ YHUVLRQV RI WKH IHPDOH DQG PDOH OHJLVODWRU FRYHU OHWWHUV ZHUH SURGXFHG DV EHIRUH 6XUYH\ SDFNHWV ZHUH PDLOHG WR DOO QRQUHVSRQGLQJ IHPDOH OHJLVODWRUV LQ VWDWHV H[FOXGLQJ 1HZ +DPSVKLUHf $ UDQGRP UHSODFHPHQW VDPSOH RI PDOH OHJLVODWRUV VWUDWLILHG E\ FKDPEHU SDUWLVDQVKLS DQG HWKQLFLW\ ZDV VHOHFWHG DV QHHGHG 7KH PDOH UHSODFHPHQW VDPSOH HTXDOOHG WKH QRQUHVSRQGLQJ PDOHV LQ WKH VWDWH OHJLVODWLYH FKDPEHU OHVV WKH WRWDO RI PDOH OHJLVODWLYH VXUYH\V DOUHDG\ UHFHLYHG IURP WKDW FKDPEHU ,Q OHJLVODWLYH FKDPEHUV ZKHUH WKH WRWDO QXPEHU RI PDOHV DOUHDG\ UHVSRQGHG H[FHHGHG SHUFHQW RI WKH WRWDO IHPDOH OHJLVODWRUV LQ WKH FKDPEHU QR DGGLWLRQDO PDOH VDPSOH ZDV GUDZQ 1R PDOH UHSODFHPHQW VDPSOHV ZHUH QHFHVVDU\ IURP HLWKHU FKDPEHU LQ +DZDLL 1HYDGD RU 1HZ +DPSVKLUH %DVHG RQ DOUHDG\ UHFHLYHG UHVSRQVH UDWHV VHYHQ VWDWHV QHHGHG PDOH UHSODFHPHQW VDPSOHV IURP RQO\ RQH FKDPEHU ,Q WZR RI WKHVH VWDWHV ELSDUWLVDQ UHSODFHPHQW VDPSOHV ZHUH QRW UHTXLUHG )RU WKLUWHHQ EXVLQHVV GD\V EHJLQQLQJ 0RQGD\ 2FWREHU D WRWDO RI WKLUG PDLOLQJ VXUYH\ SDFNHWV WR IHPDOHV DQG WR PDOH OHJLVODWRUVf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

PAGE 216

8QLYHUVLW\f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n ELSDUWLVDQ :RPHQnV 1HWZRUN 7ZHOYH FRPPLWWHH PHPEHUV UHWXUQHG FRPSOHWHG VXUYH\V LQ 'HFHPEHU D PRQWK QRWRULRXV IRU H[FHHGLQJO\ ORZ VXUYH\ UHVSRQVHV 6XUSULVLQJO\ WR PH WKHVH FRPELQHG XQVFLHQWLILF PDLOLQJV UHVXOWHG LQ D WRWDO RI DGGLWLRQDO IHPDOH OHJLVODWRUV UHWXUQLQJ FRPSOHWHG VXUYH\V )HPDOH OHJLVODWRUV IURP WKH IROORZLQJ VWDWHV FRPSOHWHG VXUYH\V EDVHG RQ SHUVRQDO PHHWLQJ DQG UHTXHVW DW WKH &$:3 &RQIHUHQFH &7 *$ ,/ ,1 0' 0, 01 02 07 19 1& 2+ 25 DQG :,f

PAGE 217

$33(1',; ) /(*,6/$725 6$03/( ,1 7+,6 5(6($5&+ %< 67$7( $1' *(1'(5 6WDWH 1XPEHU RI 1XPEHU RI b RI )HPDOH )HPDOH 0DOH /HJLVODWRUV /HJLVODWRUV /HJLVODWRUV LQ 6WDWH LQ 6DPSOH LQ 6DPSOH 5HVSRQGLQJ $ODVND b $ODEDPD bn $UNDQVDV b $UL]RQD b &DOLIRUQLD r b &RORUDGR b &RQQHFWLFXW b 'HODZDUH b )ORULGD b *HRUJLD b +DZDLL b ,RZD b ,GDKR b ,OOLQRLV b ,QGLDQD b .DQVDV b .HQWXFN\ b /RXLVLDQD b 0DLQH b 0DU\ODQG b 0DVVDFKXVHWWV b 0LFKLJDQ b 0LQQHVRWD b

PAGE 218

6WDWH 1XPEHU RI )HPDOH /HJLVODWRUV LQ 6DPSOH 1XPEHU RI 0DOH /HJLVODWRUV LQ 6DPSOH b RI )HPDOH /HJLVODWRUV LQ 6WDWH 5HVSRQGLQJ 0LVVRXUL b 0LVVLVVLSSL b 0RQWDQD b 1RUWK &DUROLQD 9 1RUWK 'DNRWD b 1HEUDVND b 1HZ +DPSVKLUH b 1HZ -HUVH\ b 1HZ 0H[LFR b 1HYDGD b 1HZ
PAGE 219

$33(1',; 35(6859(< %52&+85(

PAGE 220

67 RU ORUH B!QMRUPDOLRQ DQG WR .HWXUQ SXUYH\ U/HDF FRPSOHWH 3/($6( &+(&. $1< 7+$7 $33/< 8 5(7851 ,1 7+( 35(3$,' (19(/23( 3OHDVH VHQG PH D 6WDWH /HJLVODWRU 6XUYH\ IRUP )OHDVH VHQG PH PRUH LQIRUPDWLRQ RQ WKH 1&6/ /HDGHUVKLS 7UDLQLQJ 3URJUDPV SODQ WR SDUWLFLSDWH LQ WKH /HDGHUVKLS 7UDLQLQJ 3URJUDP 0< 1$0( ,6 $''5(66 6WUHHWf &LW\ L6WDWH =LS 2IILFH 3KRQH )$; 1XPEHU

PAGE 221

3OHDVH VKDUH \RXU OHJLVODWLYH H[SHUWLVH DQG SROLF\ RSLQLRQV ZLWK XV LQ D QDWLRQDO VXUYH\ RI IHPDOH VWDWH OHJLVODWRUV FRQGXFWHG E\ WKH 8QLYHUVLW\ RI )ORULGD ZLWK DVVLVWDQFH IURP WKH 1&6/ :RPHQnV 1HWZRUN :/ H\RXU 83 :K\ LKLL LWX-\ • LPSRUWDQW eHW 6 KHOS HDFK RWKH
PAGE 222

$33(1',; + 81,9(56,7< 2) )/25,'$ ,167,787,21$/ 5(9,(: %2$5' $33529$/6

PAGE 223

81,9(56,7< 2) ,3 )/25,'$ ,QVWLWXWLRQDO 5HYLHZ %RDUG -XQH 3V\FKRORJ\ %OGJ 32 %R[ *DLQHVYLOOH )/ 3KRQH f )D[ f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f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f DQG ZH ZLOO WHOO \RX KRZ WR REWDLQ D UHQHZDO %\ D FRS\ RI WKLV PHPRUDQGXP \RXU &KDLU LV UHPLQGHG RI WKH LPSRUWDQFH RI EHLQJ IXOO\ LQIRUPHG DERXW WKH VWDWXV RI DOO SURMHFWV LQYROYLQJ KXPDQ VXEMHFWV LQ \RXU GHSDUWPHQW DQG IRU UHYLHZLQJ WKHVH SURMHFWV DV RIWHQ DV QHFHVVDU\ WR LQVXUH WQDW HDFK SURMHFW LV EHLQJ FRQGXFWHG LQ WKH PDQQHU DSSURYHG E\ WKLV PHPRUDQGXP &0/+ FF 9LFH 3UHVLGHQW IRU 5HVHDUFK &/$6 IHOORZVKLS &ROOHJH 'HDQ 6 6DQGHUVRQ 'U -DPHV : %XWWRQ

PAGE 224

81,9(56,7< 2) )/25,'$ ,167,787,21$/ 5(9,(: %2$5' 7+,6 )250 0867 %( 7<3(:5,77(1 7,7/( 2) 352-(&7 F UHDG WKH WHWHUDV VLGH EHIRUH FRPSOHWLQJ WKLr IF 3XEOLF 3ROLF\ 0DNLQJ LQ 86 6WDWH /HJLVODWXUHV 7KH ,PSDFWV RI ,QFUHDVLQJ )HPDOH 5HSUHVHQWDWLRQ 35,1&,3$/ ,19(67,*$725Vf 1DPH GHJUHH OLLOH GHSW FDPSXV DGGUHVV t SKRQH Wf (OL]DEHWK *UDFH :LOOLDPV 0DVWHU RI $UWV3ROLWLFDO 6FLHQFH 'RFWRUDO FDQGLGDWH 3ROLWLFDO 6FLHQFH 7XUOLQJWRQ 7XUOLQJWRQ 3 %R[ *DLQHVYLOOH )ORULGD 3KRQHV 'HSWf Q 2IILFHf 683(59,625 ,) 3W ,6 678'(17f 1DPH FDPSXV DGGUHVV SKRQH }f n-DPHV : %XUWRQ 3K' 3URIHVVRU 3ROLWLFDO 6FLHQFH 3 %R[ *DLQHVYLOOH )/ SKRQHV 'HSWf 2IILFHf f '$7(6 2) 352326(' 352-(&7 )URP -81( 7D )(%5'$5< 6285&( 2) )81',1* )25 7+( 352-(&7 &ROOHJH /LEHUDO $UWV IHOORZVKLS $r PGLFDL0L LR LED 'LU£Q RI VADR: O8D0IGLf 8) *UDGXDWH 6FKRRO IHOORZVKLS 6&,(17,),& 385326( 2) 7+( ,19(67,*$7,21 7KLV UHVHDUFK H[DPLQHV ZKHWKHU LQFUHDVHG IHPDOH UHSUHVHQWDWLRQ LQ VWDWH OHJLVODWXUHV KDV UHVXOWHG LQ WKH HPHUJHQFH RI JHQGHUUHODWHG SROLF\ SULRULW\ DQG OHJLVODWLYH HIIHFWLYHQHVV GLIn IHUHQFHV EHWZHHQ PDOH DQG IHPDOH OHJLVODWRUV DQG WKH SUHVHQFH RI D ZRPDQnV SROLF\ DJHQGD RU IHPLQLVW SROLF\ DJHQGD )RXU LQGHSHQGHQW YDULDEOHV K\SRWKHVL]HG WR LQFUHDVH WKH OLNHOLKRRG RI VXFK SROLF\ DJHQGDV LQFOXGH f SUHVHQFH RI D ZRPHQnV OHJLVODWLYH SROLWLFDO FDXFXV f WKH VWUHQJWK t QXPEHU RI SROLWLFDO OLQNDJHV EHWZHHQ IHPDOH OHJLVODWRUV DQD ZRPHQnV JURXSVf WKH FKDPEHU FDUHHU RSSRUWXQLW\ VWUXFWXUH DQG f SDUWLVDQ FRKHVLRQ LQ WKH OHJLVODWLYH FKDPEHU '(6&5,%( 7+( 5(6($5&+ 0(7+2'2/2*< ,1 1217(&+1,&$/ /$1*8$*( 7KH 8),5% QHHGV WR NQRZ ZKDW ZLOO EH GRQH ZLWK RU WR WKH OHVHHLFK SH[WLFWSHDWVf 7KLV GLVVHUWDWLRQ UHVHDUFK LQYROYHV FRQGXFWLQJ D QDWLRQDO VXUYH\ RI DOO IHPDOH VWDWH OHJLVODWRUV DQG D PDOH FRPSDULVRQ VDPSOH RI OHJLVODWRUV VHUYLQJ DV RI -XQH LQ WKH VWDWHV $ WRWDO DWWLWXGLQDO VXUYH\V ZLOO EH PDLOHG LQ ZDYHV -XQH $XJXVW 6HSWf WR OHJLVODWRUnV KRPH DGGUHVVHV DYDLODEOH DQG SXEOLFDOO\ SXEOLVKHG E\ WKH 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV 7KH VDPSOH ZLOO EH FRQWUROOHG LH DQDO\]HGf E\ JHQGHU VWDWH OHJLVODWLYH FKDPEHU 6HQDWH RU +RXVHf SROLWLFDO SDUW\ DQG OHJLVODWRUnV HWKQLFLW\ RU UDFH ZLOO VWXG\ KRZ OHJLVODWLYH ZRPHQfV SROLWLFDO FDXFXVHV QRZ LQ VWDWHVf WKH SHUFHQWDJH RI IHPDOH OHJLVODWRUV IURP b WR bf SROLWLFDO SDUW\ IDFWRUV DQG OHJLVODWRUnV SULRULW\ ELOOV DIIHFW WKH HIIHFWLYHQHVV RI IHPDOH OHJLVODWRUV FRPSDUHG WR PDOHV LQ SURSRVLQJ DQG SDVVLQJ VRFLDO SROLF\ RQ LVVXHV RI SDUWLFXODU FRQFHUQ t EHQHILW WR ZRPHQ t GHSHQGHQW FKLOGUHQ %HKDYLRUDO GDWD RQ ELOO VSRQVRUVKLS DQG HQDFWPHQW LQ FKDPEHUV ZLOO EH REWDLQHG IURP VXUYH\V DQG SXEOLVKHG MRXUQDOV 7KH VXUYH\V UHTXHVW YROXQWDU\ SDUWLFLSDWLRQ WR FRPSOHWH DQG UHWXUQ WKHP FRQILGHQWLDOLW\ LV DVVXUHG WR UHVSRQGHQWV ZKRVH IRUPV DUH QXPHULFDOO\ FRGHG EXW GR QRW LQGLFDWH WKH SDUWLFLSDQWV QDPH 327(17,$/ %(1(),76 $1' $17,&,3$7(' 5,6. ,I VXEMHFW L} DL QDN RI SK\VLFDO SV\FKRORJLFDO RU HFRQRPLF KDUP GHVFULEH WKH VOHSW WDNHQ WR SURWHFW VXEMHFWf6XUYH\ UHVSRQGHQWV VWDWH OHJLVODWRUVf ZLOO QRW EH VXEMHFWHG WR SRWHQWLDO SV\FKRORJLFDO SK\VLFDO RU HFRQRPLF KDUP DV SDUW RI WKLV UHVHDUFK 6XUYH\V ZLOO LQFOXGH D SUHSDLG SRVWDJH UHSO\ HQYHORSH QR FRVW WR UHSOLHUf 6WDWH OHJLVODWXUHV DUH EHFRPLQJ PRUH LPSRUWDQW YLWDO DQG LQYROYHG LQ D ZLGHU VFRSH RI SROLF\ PDNLQJ DQG IXQGLQJ GHFLVLRQV GLUHFWO\ DIIHFWLQJ FLWL]HQnV GDLO\ OLYHV 7KH SHUFHQW RI ZRPHQ OHJLVODWRUV KDV LQFUHDVHG ILYHU IROG VLQFH WKLV VXUYH\ SURYLGHV PRVW FRPSOHWH VDPSOH VLQFH DV ILUVW WR DOORZ '(6&5,%( +2: 68%-(&76 :,// %( 5(&58,7(' 7+( 180%(5 $1' $*( 2) 7+( 68%-(&76 $1' 352326('f &203(16$7,21 LI DQ\f FRPSDUDWLYH QDWLRQDO DQDO\VLV RI VXEVHWV RI ZRPHQn $OO SRWHQWLDO SDUWLFLSDQWH DUH DGXOWV -Y HWKQLFLW\ UDFH VWDWH FKDPSDU DQG WKHLU HI 8JD f S*EOLFDOOY HOHFWHG RIILFLDOV I 6)6,,,6,:}" SROLF\ RXWFF}} ZKR DUH DVNHG WR YROXQWDULO\ FRPSOHWH VXUYH\ ZLWKRXW FRPSHQVDWLRQ RU HFRQRPLF SRVWDJH FRVWV '(6&5,%( 7+( ,1)250(' &216(17 352&(66 ,1&/8'( $ &23< 2) 7+( ,1)250(' &216(17 '2&80(II LI DSSOLFDEOHf &RQVHQW LQVWUXFWLRQV LQFOXGLQJ \RX DUH QRW UHTXLUHG WR DQVZHU DQ\ TXHVWLRQV \RX GR QRW ZLVK WR DQVZHU LQVWUXFWLSQV IJU FRPSOHWLQJ WKH VXUYH\ HVWLPDWHG WLPH WR FRPSOHWH DQG JXDUHQWHH RI UHVSRQGHQWV FRQILGHQWLDOLW\ DUH RQ WKH IURQW FRYHU RI WKH DWWDFKHG VXUYH\ 5HVSRQGHQWV DUH QRW DVNHG IRU DQG QRW HQFRXUDJHG WR LQGLFDWH WKHLU QDPHDGGUHVV HWF 3OHDVH XVH DWWDFKPHQWV 21/< ZKHQ VSDFH XQ WKH IRUP LV LQVXIILFLHQW 3ULQFLSDO ,QYHVWLJDWRU V 6LJQDWXUH 6XSHUYLVRUnV 6LJQDWXUH

PAGE 225

81,9(56,7< 2I )/25,2$ ,167,787,21$/ 5(9,(: %2$52 32 6R[ 36< *DLQHVYLOOH )/ f +D\ 72 0V (OL]DEHWK *UDFH :LOOLDPV 785/ 32 %R[ )520 +DUULHW 6 +D\HV 3URJUDP $VVLVWDQW 68%-(&7 $SSURYDO RI 3URMHFW 3XEOLF SROLF\ PDNLQJ LQ 86 6WDWH /HJLVODWXUHV 7KH LPSDFWV RI LQFUHDVLQJ IHPDOH UHSUHVHQWDWLRQ (;3,5$7,21 $7( -Xr $SSURYDO IRU WKLV SURMHFW E\ WKH 8QLYHUVLW\ RI )ORULGD ,QVWLWXWLRQDO 5HYLHZ %RDUG LV DERXW WR H[SLUH 7R KHOS XV NHHS RXU UHFRUGV FXUUHQW SOHDVH FRHSOHWH WKH IROORZLQJ @ 7KH SURMHFW LV FRQSOHWH RU KXPDQ SDUWLFLSDQWV ZLOO QRW EH LQYROYHG LQ WKLV SURMHFW DIWHU WKH H[SLUDWLRQ GDWH QRWHG DERYH 7KH 8),5% ILOH RQ WKLV SURMHFW PD\ EH FORVHG DW WKDW WLPH ,I WKH SURMHFW LV QRW FRPSOHWH ZH ZLOO FRQVLGHU \RXU UHTXHVW IRU H[WHQGLQJ WKH DSSURYDO ZKHQ \RX FRPSOHWH DQG UHWXUQ WKLV GRFXPHQW ZLWK WKH DSSURSULDWH DWWDFKPHQWV >;([WHQVLRQ RI WKH 8),5% DSSURYDO LV UHTXHVWHG IRU WKLV SURMHFW 7KH %RDUG ZLOO GHWHUPLQH WKH ,5% DSSURYDO SHULRG DSSURSULDWH WR WKH GHJUHH RI ULVNf > ;@ 1R FKDQJH ZLOO EH PDGH WR WKH DSSURYHG SURWRFRO > @ ZLVK WR PRGLI\ WKH SURWRFRO DV GHVFULEHG LQ WKH DWWDFKHG OHWWHU W ;f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f O @ ,QIDQWV > f $GROHVFHQWV O ;f $GXOWV & f 0HQWDOO\ RU HPRWLRQDOO\ > @ &KLOGUHQ ^ f 3UHJQDQW ZRPHQ > 3ULVRQHUV FKDOOHQJHG LQGLYL$LDOV ,r @ $WWDFK WZR FOHDQ FRSLHV RI WKH FXUUHQW LQIRUPHG FRQVHQW GRFXQHQW 7KH ,5% ZLOO VWDPS DQ H[SLUDWLRQ GDWH RQ WKHr XSRQ DSSURYDO DQG UHWXUQ RQH FRS\ WR \RX IRU GXSOLFDWLQJ SXUSRVHV

PAGE 226

5()(5(1&( /,67 $FKHQ &KULVWRSKHU + 0HDVXULQJ 5HSUHVHQWDWLRQ $PHULFDQ -RXUQDO RI 3ROLWLFDO 6FLHQFH f $FNHOVEHUJ 0DUWKD DQG ,UHQH 'LDPRQG *HQGHU DQG 3ROLWLFDO /LIH 1HZ 'LUHFWLRQV LQ 3ROLWLFDO 6FLHQFH ,Q $QDO\]LQJ *HQGHU $ +DQGERRN RI 6RFLDO 6FLHQFH 5HVHDUFK HG %HWK % +HVV DQG 0\UD 0DU[ )HUUHH 1HZEXU\ &DOLIRUQLD 6DJH %DNHU Y &DUU 86 6WDWH &RXUW f %DNHU *RUGRQ ( 7KH 8QILQLVKHG 5HDSSRUWLRQPHQW 5HYROXWLRQ ,Q 3ROLWLFDO *HUU\PDQGHULQJ DQG WKH &RXUWV HG %HUQDUG *URIPDQ 1HZ
PAGE 227

&DUUROO 6XVDQ :RPHQ DV &DQGLGDWHV LQ $PHULFDQ 3ROLWLFV QG HG %ORRPLQJWRQ ,QGLDQD 8QLYHUVLW\ 3UHVV &DUUROO 6XVDQ 'HEUD / 'RGVRQ DQG 5XWK % 0DQGHO 7KH ,PSDFW RI :RPHQ LQ 3XEOLF 2IILFH &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV &$:3f (DJOHWRQ ,QVWLWXWH RI 3ROLWLFV 5XWJHUV 8QLYHUVLW\ 1HZ %UXQVZLFN 1&DUUROO 6XVDQ DQG (OOD 7D\ORU *HQGHU 'LIIHUHQFH LQ 3ROLF\ 3ULRULWLHV RI 86 6WDWH /HJLVODWRUV 3UHVHQWHG DW WKH DQQXDO PHHWLQJ RI WKH $PHULFDQ 3ROLWLFDO 6FLHQFH $VVRFLDWLRQ $WODQWD &DUUROO 6XVDQ DQG /LQGD 0 =HULOOL )HPLQLVW &KDOOHQJHV WR 3ROLWLFDO 6FLHQFH ,Q 3ROLWLFDO 6FLHQFH 7KH 6WDWH RI WKH 'LVFLSOLQH ,, HG $GD : )LQLIWHU :DVKLQJWRQ $PHULFDQ 3ROLWLFDO 6FLHQFH $VVRFLDWLRQ &HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV &$:3f (DJOHWRQ ,QVWLWXWH RI 3ROLWLFV :RPHQ ,Q 6WDWH /HJLVODWXUHV )DFW 6KHHW 5XWJHUV 8QLYHUVLW\ 1HZ %UXQVZLFN 1&HQWHU IRU WKH $PHULFDQ :RPHQ DQG 3ROLWLFV &$:3f (DJOHWRQ ,QVWLWXWH RI 3ROLWLFV :RPHQ RI &RORU ,Q (OHFWLYH 2IILFH )DFW 6KHHW 5XWJHUV 8QLYHUVLW\ 1HZ %UXQVZLFN 1&HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV &$:3f (DJOHWRQ ,QVWLWXWH RI 3ROLWLFV :RPHQ ,Q 6WDWH /HJLVODWXUHV )DFW 6KHHW 5XWJHUV 8QLYHUVLW\ 1HZ %UXQVZLFN 1&HQWHU IRU WKH $PHULFDQ :RPDQ DQG 3ROLWLFV &$:3f (DJOHWRQ ,QVWLWXWH RI 3ROLWLFV :RPHQ LQ 6WDWH /HJLVODWXUHV )DFW 6KHHW 5XWJHUV 8QLYHUVLW\ 1HZ %UXQVZLFN 1&OLQHV )UDQFLV ; &OLQWRQ 6LJQV %LOO &XWWLQJ :HOIDUH 6WDWHV ,Q 1HZ 5ROH 1HZ
PAGE 228

&R[ (OL]DEHWK 0 :RPHQ 6WDWH DQG 7HUULWRULDO /HJLVODWRUV $ 6WDWHE\6WDWH $QDO\VLV ZLWK 5RVWHUV RI :RPHQ -HIIHUVRQ 1& 0F)DUODQG 'DKONHPSHU /HVOH\ *URZLQJ $FFXVWRPHG WR +HU )DFH 6WDWH /HJLVODWXUHV -XO\$XJXVW 'DUF\ 5REHUW DQG &KDUOHV +DGOH\ %ODFN :RPHQ LQ 3ROLWLFV 7KH 3X]]OH RI 6XFFHVV 6RFLDO 6FLHQFH 4XDUWHUO\ 'DUF\ 5REHUW 6XVDQ :HOFK DQG -DQHW &ODUN :RPHQ (OHFWLRQV DQG 5HSUHVHQWDWLRQ /LQFROQ 8QLYHUVLW\ RI 1HEUDVND 3UHVV 'LDPRQG ,UHQH 6H[ 5ROHV LQ WKH 6WDWH +RXVH 1HZ +DYHQ
PAGE 229

)UDQFLV :D\QH / +RXVH WR 6HQDWH &DUHHU 0RYHPHQW ,Q WKH 86 6WDWHV 7KH 6LJQLILFDQFH RI 6HOHFWLYLW\ /HJLVODWLYH 6WXGLHV 4XDUWHUO\ ;9,,, f )UDQFLV :D\QH / DQG /DZUHQFH : .HQQ\ (TXLOLEULXP 3URMHFWLRQV RI WKH &RQVHTXHQFHV RI 7HUP /LPLWV 8SRQ ([SHFWHG 7HQXUH ,QVWLWXWLRQDO 7XUQRYHU DQG 0HPEHUVKLS ([SHULHQFH -RXUQDO RI 3ROLWLFV f *LOOLJDQ &DURO ,Q $ 'LIIHUHQW 9RLFH 3V\FKRORJLFDO 7KHRU\ DQG :RPHQn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f -DIIH -D\ $ 0DVWHULQJ WKH 6$6 6\VWHP 1HZ
PAGE 230

-RQHV .DWKOHHQ DQG $QQD -RQDVGRWWLU 7KH 3ROLWLFDO ,QWHUHVWV RI *HQGHU 'HYHORSLQJ 7KHRU\ DQG 5HVHDUFK ZLWK D )HPLQLVW )DFH HGV .DWKOHHQ -RQHV DQG $QQD -RQDVGRWWLU 1HZEXU\ 3DUN &$ 6DJH .DQWHU 5RVDEHWK 0RVV 6RPH (IIHFWV RI 3URSRUWLRQV RQ *URXS /LIH 6NHZHG 6H[ 5DWLRV DQG 5HVSRQVHV WR 7RNHQ :RPHQ $PHULFDQ -RXUQDO RI 6RFLRORJ\ f .DWKOHQH /\Q 8QFRYHULQJ WKH 3ROLWLFDO ,PSDFWV RI *HQGHU $Q ([SORUDWRU\ 6WXG\ :HVWHUQ 3ROLWLFDO 4XDUWHUO\ f .DWKOHQH /\Q *HQGHU 3XEOLF 3ROLF\ DQG /HJLVODWLYH 3URFHVV 'HOLQHDWLQJ WKH *HQGHUHG 3HUVSHFWLYHV DQG 2XWFRPHV RI 3ROLF\PDNLQJ LQ WKH &RORUDGR 6WDWH +RXVH 3K' GLVV 8QLYHUVLW\ RI &RORUDGR %RXOGHU .DWKOHQH /\Q $OWHUQDWLYH 9LHZV RI &ULPH /HJLVODWLYH 3ROLF\PDNLQJ LQ *HQGHUHG 7HUPV -RXUQDO RI 3ROLWLFV f .\POLFND % % DQG -HDQ 9 0DWWKHZV 7KH 5HDJDQ 5HYROXWLRQ" &KLFDJR 'RUVH\ 3UHVV 0DQKHLP -DURO % DQG 5LFKDUG & 5LFK (PSLULFDO 3ROLWLFDO $QDO\VLV 5HVHDUFK 0HWKRGV LQ 3ROLWLFDO 6FLHQFH UG HG :KLWH 3ODLQV 1< /RQJPDQ 0F&OHQGRQ 0F.HH 0XOWLSOH 5HJUHVVLRQ DQG &DXVDO $QDO\VLV ,WDVFD ,/ ) ( 3HDFRFN 0F/HDQ -RDQ (OL]DEHWK 6WUDWHJLF &KRLFHV &DUHHU 'HFLVLRQV RI (OHFWHG :RPHQ 3K' GLVV 2KLR 6WDWH 8QLYHUVLW\ 0H]H\ 6XVDQ *OXFN D 6XSSRUW IRU :RPHQnV 5LJKWV 3ROLF\ $Q $QDO\VLV RI /RFDO 3ROLWLFLDQV $PHULFDQ 3ROLWLFV 4XDUWHUO\ f 0H]H\ 6XVDQ *OXFN E :RPHQ DQG 5HSUHVHQWDWLRQ 7KH &DVH RI +DZDLL -RXUQDO RI 3ROLWLFV 0LOOHU &KHU\O 0 ,VVXH 6HOHFWLRQ E\ 6WDWH /HJLVODWLYH %ODFN &DXFXVHV LQ WKH 6RXWK ,Q 0LQRULW\ *URXS ,QIOXHQFH $JHQGD 6HWWLQJ )RUPXODWLRQ DQG 3XEOLF 3ROLF\ HG 3DXOD 0F&ODLQ :HVWSRUW &7 *UHHQZRRG 3UHVV

PAGE 231

0RQFULHI *DU\ -RHO 7KRPSVRQ DQG 5REHUW 6FKXKPDQQ *HQGHU 5DFH DQG WKH 6WDWH /HJLVODWXUH $ 5HVHDUFK 1RWH RQ WKH 'RXEOH 'LVDGYDQWDJH +\SRWKHVLV 6RFLDO 6FLHQFH -RXUQDO f 0RQFULHI *DU\ DQG -RHO 7KRPSVRQ &KDQJLQJ 3DWWHUQV LQ 6WDWH /HJLVODWLYH &DUHHUV HG *DU\ 0RQFULHI DQG -RHO 7KRPSVRQ $QQ $UERU 8QLYHUVLW\ RI 0LFKLJDQ 3UHVV 0RQFULHI *DU\ ) -RHO $ 7KRPSVRQ 0LFKDHO +DGGRQ DQG 5REHUW +R\HU n)RU :KRP WKH %HOO 7ROOVn 7HUP /LPLWV DQG 6WDWH /HJLVODWXUHV /HJLVODWLYH 6WXGLHV 4XDUWHUO\ ;9,,f 1DWLRQDO $VVRFLDWLRQ RI /DWLQR (OHFWHG DQG $SSRLQWHG 2IILFLDOV 1DWLRQDO 5RVWHU RI +LVSDQLF (OHFWHG 2IILFLDOV /RV $QJHOHV 1$/(2 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV D (OHFWLRQ 5HVXOWV 'LUHFWRU\ 'HQYHU 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV E 6WDWH /HJLVODWLYH 3ULRULWLHV $Q 2SLQLRQ 6XUYH\ RI /HDGLQJ /DZPDNHUV 'HQYHU 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV 1DWLRQDO :RPHQnV 3ROLWLFDO &DXFXV 1DWLRQDO 'LUHFWRU\ RI :RPHQ (OHFWHG 2IILFLDOV :DVKLQJWRQ 1DWLRQDO :RPHQnV 3ROLWLFDO &DXFXV 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV F 'LUHFWRU\ RI /HJLVODWLYH /HDGHUV 'HQYHU 1DWLRQDO &RQIHUHQFH RI 6WDWH /HJLVODWXUHV 1HFKHPLDV &DURO &KDQJHV LQ WKH (OHFWLRQ RI :RPHQ WR 86 6WDWH /HJLVODWLYH 6HDWV /HJLVODWLYH 6WXGLHV 4XDUWHUO\ ;,,f 1LHPL 5LFKDUG DQG /DXUD 5 :LQVN\ 0HPEHUVKLS 7XUQRYHU LQ 86 6WDWH /HJLVODWXUHV 7UHQGV DQG (IIHFWV RI 'LVWULFWLQJ /HJLVODWLYH 6WXGLHV 4XDUWHUO\ ;,,f 3LWNLQ +DQQD ) 7KH &RQFHSW RI 5HSUHVHQWDWLRQ %HUNHOH\ 8QLYHUVLW\ RI &DOLIRUQLD 3UHVV 3ROVE\ 1HOVRQ 7KH ,QVWLWXWLRQDOL]DWLRQ RI WKH 86 +RXVH RI 5HSUHVHQWDWLYHV $PHULFDQ 3ROLWLFDO 6FLHQFH 5HYLHZ /;,,f

PAGE 232

3RXQG :LOOLDP 6WDWH /HJLVODWLYH &DUHHUV 7ZHQW\ )LYH
PAGE 233

6KHUZRRG )UDQN *RYHUQPHQWDO &ULVLV LQ 0LDPL 3XEOLF $GPLQLVWUDWLRQ 7LPHV fO 6TXLUH 3HYHULOO &DUHHU 2SSRUWXQLWLHV DQG 0HPEHUVKLS 6WDELOLW\ LQ /HJLVODWXUHV /HJLVODWLYH 6WXGLHV 4XDUWHUO\ ;,,,f 6TXLUH 3HYHULOO D /HJLVODWLYH 3URIHVVLRQDOL]DWLRQ DQG 0HPEHUVKLS 'LYHUVLW\ LQ 6WDWH /HJLVODWXUHV /HJLVODWLYH 6WXGLHV 4XDUWHUO\ ;9,,f 6TXLUH 3HYHULOO E 7KH 7KHRU\ RI /HJLVODWLYH ,QVWLWXWLRQDOL]DWLRQ DQG WKH &DOLIRUQLD $VVHPEO\ 7KH -RXUQDO RI 3ROLWLFV f 7KHUQVWURP $ELJDLO 0 :KRVH 9RWHV &RXQW" $IILUPDWLYH $FWLRQ DQG 0LQRULW\ 9RWLQJ 5LJKWV &DPEULGJH 0$ +DUYDUG 8QLYHUVLW\ 3UHVV 7KRPDV 6XH 9RWLQJ 3DWWHUQV LQ WKH &DOLIRUQLD $VVHPEO\ 7KH 5ROH RI *HQGHU :RPHQ DQG 3ROLWLFV f 7KRPDV 6XH +RZ :RPHQ /HJLVODWH 1HZ
PAGE 234

:HLVVEHUJ 5REHUW &ROOHFWLYH YV '\DGLF 5HSUHVHQWDWLRQ LQ &RQJUHVV $PHULFDQ 3ROLWLFDO 6FLHQFH 5HYLHZ :HUQHU (PP\ ( :RPHQ LQ WKH 6WDWH /HJLVODWXUHV :HVWHUQ 3ROLWLFDO 4XDUWHUO\ f
PAGE 235

%,2*5$3+,&$/ 6.(7&+ (OL]DEHWK *UDFH :LOOLDPV LV WKH HOGHVW GDXJKWHU RI 1HOVRQ *DUUHWW :LOOLDPV 0U :LOOLDPV D UHWLUHG FROOHJH WHDFKHU DQG ODERU ODZ DWWRUQH\ LV DFWLYH DV D JXDUGLDQ DG OLWHP FLYLO FRXUW PHGLDWRU PRGHO UDLOURDG FROOHFWRU DQG MRXUQDOLVW (OL]DEHWK LV SDUWQHUV LQ OLIH DQG PDUULDJH DQG VRRQWREH MRLQW VXUYLYRUV RI GRFWRUDO VWXGLHVf ZLWK -DFN -RKQf 5REHUW %ORRP KHU ORYLQJ KXVEDQG RI IRXUWHHQ \HDUV 6KH ZDV UDLVHG E\ KHU IDWKHU LQ 0XQFLH DQG %ORRPLQJWRQ ,QGLDQD DQG DOVR EULHIO\ OLYHG LQ %ODLU DQG 2PDKD 1HEUDVND (OL]DEHWK EHJDQ KHU XQGHUJUDGXDWH VWXGLHV DW WKH &ROOHJH RI WKH 2]DUNV ORFDWHG LQ 3RLQW /RRNRXW 0LVVRXUL QHDU %UDQVRQ 6KH VXEVHTXHQWO\ HDUQHG D %DFKHORU RI $UWV 'HJUHH LQ 5HOLJLRQ f DQG D 0DVWHU RI $UWV 'HJUHH LQ 3ROLWLFDO 6FLHQFH f ZLWK D JUDGXDWH FHUWLILFDWH LQ 3XEOLF $GPLQLVWUDWLRQ IURP WKH 8QLYHUVLW\ RI )ORULGD 0D\ VKH UHFHLYHG WKH ILUVW JUDGXDWH FHUWLILFDWH LQ :RPHQV 6WXGLHV DQG *HQGHU 5HVHDUFK JUDQWHG WR D GRFWRUDO VWXGHQW E\ WKH 8QLYHUVLW\ RI )ORULGD 3ULRU WR EHJLQQLQJ KHU GRFWRUDO VWXGLHV (OL]DEHWK VXFFHVVIXOO\ SXUVXHG D SURJUHVVLYHO\ UHVSRQVLEOH SXEOLF DGPLQLVWUDWLRQ FDUHHU LQ FRPSXWHU RSHUDWLRQV PDQDJHPHQW DW WKH &HQWHU IRU ,QVWUXFWLRQDO DQG 5HVHDUFK &RPSXWLQJ

PAGE 236

$FWLYLWLHV DW WKH 8QLYHUVLW\ RI )ORULGD +HU SROLWLFDO SXEOLF SROLF\ DQG JHQGHU UHVHDUFK LQWHUHVWV KDYH WKHLU URRWV LQ PRUH WKDQ D GHFDGH RI YROXQWHHU ZRUN DQG DFWLYH FLYLF SXEOLF VHUYLFH LQ FLW\ DQG FRXQW\ JRYHUQPHQW (OL]DEHWK VHUYHG DV D PHPEHU WKHQ FKDLU RI WKH *DLQHVYLOOH +XPDQ 5HODWLRQV $GYLVRU\ %RDUG +5$%f ZKLFK LQYHVWLJDWHV QHJRWLDWHV FRQFLOLDWHV DQG UHVROYHV FRPSODLQWV RI XQODZIXO VH[XDO DQG UDFLDO GLVFULPLQDWLRQ LQ HPSOR\PHQW DQG KRXVLQJ 6KH KDV EHHQ D PHPEHU DQG FRPPLWWHH FKDLU RI WKH *DLQHVYLOOH &RPPLVVLRQ RQ WKH 6WDWXV RI :RPHQ DQG D VLWH VXSHUYLVRU IRU WKH 8QLYHUVLW\ RI )ORULGD 0LQRULW\ 5HVHDUFK $SSUHQWLFH 7UDLQLQJ 3URJUDP (OL]DEHWK KDV EHHQ DFWLYHO\ LQYROYHG LQ ZRPHQn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

PAGE 237

DQG ZDV DQ LQYLWHG SDQHOLVW DW WKH $ODFKXD &RXQW\ /HDJXH RI :RPHQ 9RWHUVn &RQIHUHQFH KRQRULQJ WKH WK DQQLYHUVDU\ RI ZRPHQnV VXIIUDJH LQ WKH 8QLWHG 6WDWHV 0V :LOOLDPVn SXEOLFDWLRQV LQFOXGH D PRQRJUDSK RQ )ORULGDnV KLJKHU HGXFDWLRQ V\VWHP n/LPLWHG $FFHVVn 3URJUDPV([FHSWLRQV WKDW 7KUHDWHQ WKH )ORULGD +LJKHU (GXFDWLRQ $UWLFXODWLRQ $JUHHPHQW ZKLFK LV DYDLODEOH QDWLRQZLGH WKURXJK WKH (5,& &RPPXQLW\ &ROOHJH &OHDULQJKRXVH ,Q WKH &ROOLQV &HQWHU IRU 3XEOLF 3ROLF\ DW )ORULGD 6WDWH 8QLYHUVLW\ SXEOLVKHG KHU FRPPXQLW\ LVVXHV SROLF\ SDSHU )ORULGDnV +XPDQ 6HUYLFHV 'HOLYHU\ 6\VWHP 6KRXOG ,W %H &KDQJHG" 0V :LOOLDPV KDV DOVR FRDXWKRUHG WZR IRUWKFRPLQJ ERRN FKDSWHUV 6KH LV ILUVW DXWKRU RI %ODFN /HJLVODWLYH %HKDYLRU LQ )ORULGD LQ %ODFN /HJLVODWLYH %HKDYLRU $ &RPSDUDWLYH $QDO\VLV WR EH SXEOLVKHG E\ WKH 6WDWH 8QLYHUVLW\ RI 1HZ
PAGE 238

, 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 3KLO W -DPHV : %XWWRQ &KDLUPDQ 3URIHVVRU RI 3ROLWLFDO 6FLHQFH 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\ 9<9 7f$LXOeBi eQWXf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

PAGE 239

7KLV GLVVHUWDWLRQ ZDV VXEPLWWHG WR WKH *UDGXDWH )DFXOW\ RI WKH 'HSDUWPHQW RI 3ROLWLFDO 6FLHQFH LQ WKH &ROOHJH RI /LEHUDO $UWV DQG 6FLHQFHV DQG WR WKH *UDGXDWH 6FKRRO DQG ZDV DFFHSWHG DV SDUWLDO IXOILOOPHQW RI WKH UHTXLUHPHQWV IRU WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ $XJXVW 'HDQ *UDGXDWH 6FKRRO

PAGE 240

/' 8,