Topic
Proxy (statistics)
About: Proxy (statistics) is a research topic. Over the lifetime, 5257 publications have been published within this topic receiving 94504 citations. The topic is also known as: proxy variable & proxy measurement.
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TL;DR: In this paper, the authors evaluate five methods of deducing firm-specific cost of equity capital (r) from the market's future cash flow forecast and current stock price, and conclude that rDIVPREM and rPEGPREM dominate the alternatives.
Abstract: Managers, investors and researchers have a compelling interest in identifying a reliable empirical proxy for firm-specific cost of equity capital (r). In theory, deducing r is possible if the market's future cash flow forecast and current stock price are observable. Practically, deducing r is dependent on the ability to estimate the market's forecasted terminal value. We evaluate five methods of deducing firm-specific r (labeled rDIVPREM, rGLSPREM, rGORPREM, rOJNPREM, and rPEGPREM) that deal with this conundrum differently. The extent to which the estimates are associated with firm risk in a stable and meaningful manner is the basis for our assessment. We find that the rDIVPREM and rPEGPREM estimates are consistently and predictably related to risk, while the alternatives are not. Based on these results, we conclude that rDIVPREM and rPEGPREM dominate the alternatives.
89 citations
TL;DR: In this article, the authors combine a model of labor heterogeneity with a neoclassical q-theory model with labor adjustment costs and show that the negative expected return-hiring rate relation documented in previous studies should be steeper in industries with higher adjustment costs.
Abstract: Heterogeneity in the composition of the labor force affects asset prices in the cross section. We combine a model of labor heterogeneity with a neoclassical q-theory model with labor adjustment costs and show that the negative expected return-hiring rate relation documented in previous studies should be steeper in industries with higher labor adjustment costs. Empirically, using a novel industry level measure of labor skills as a proxy for the size of labor adjustment costs, we show that the negative expected return-hiring rate relation is two times larger among industries with higher labor skills than in industries with lower labor skills.
89 citations
TL;DR: In this paper, the authors show that following a proxy contest, directors experience a significant decline in the number of directorships not only in the targeted company, but also in other nontargeted companies.
89 citations
TL;DR: This paper examined the economic consequences of institutional investors outsourcing research and voting decisions in public company elections to proxy advisory firms and investigated the implications of these decisions in the context of shareholder say-on-pay voting required in 2011 under the Dodd-Frank Act.
Abstract: This paper examines the economic consequences of institutional investors outsourcing research and voting decisions in public company elections to proxy advisory firms. We investigate the implications of these decisions in the context of shareholder say-on-pay voting required in 2011 under the Dodd-Frank Act. We find three primary results: proxy advisory firm recommendations have a substantive impact on say-on-pay voting outcomes, a substantial number of firms change their compensation programs in the time period before formal shareholder votes in a manner consistent with the features known to be favored by proxy advisory firms in an effort to avoid negative voting recommendations, and the stock market reaction to these compensation program changes is statistically negative. These results suggest that outsourcing voting to proxy advisory firms appears to have the unintended economic consequence that boards of directors are induced to make choices that decrease shareholder value.
88 citations
TL;DR: Examination of subjects' self-reported quality of life and assessments of their QOL made by proxies who were either a first degree relative, or were acting in a supportive role similar to that of a family member endorse the use of standardised approaches such as ComQol for proxy-based measures of QOL.
Abstract: The purpose of this investigation was to examine concurrence between subjects' self-reported quality of life (QOL) and assessments of their QOL made by proxies who were either a first degree relative, or were acting in a supportive role similar to that of a family member. Two studies were conducted. The first study, using ComQol-A4 (Cummins, 1993), examined the degree of concurrence between nondisabled subjects' QOL and ratings made on their behalf by proxies who were either a parent or a sibling (N = 78 subject/proxy pairs). The second study utilised ComQol-ID4 (Cummins, 1993), and examined agreement between QOL ratings made by subjects with mild intellectual disability and proxies who were either parents or support workers (N = 24 subject/proxy pairs). In both studies the effects on agreement of variables including subject/proxy living arrangements, gender similarity, and proxy gender and empathy were examined. In contrast to previous research utilising non-standardised approaches to QOL assessment, res...
88 citations