ABSTRACT

FKDQJHVLQWKHDSSOLFDWLRQRIPLOLWDU\SRZHULQFOXGLQJQHZVHUYLFHSDW WHUQVDQGDOWHUHGVNLOOUHTXLUHPHQWV'RZQHV0RVNRV:LOOLDPV DQG6HJDO 7KH FRPSOH[ JRDOV RI FRQWHPSRUDU\ FRQÀLFWPD\ LQYROYHDFRPELQDWLRQRIFRXQWHULQVXUJHQF\SRVWFRQÀLFWUHFRQVWUXF WLRQDQGQDWLRQEXLOGLQJ(JQHOO7KXV:HVWHUQPLOLWDU\IRUFHV IDFHPLVVLRQVIRUZKLFKWKH\WUDGLWLRQDOO\KDYHQRWEHHQHTXLSSHGSUH SDUHGRUWUDLQHG$QJVWURPDQG'X\YHVWH\Q)UDQNH/DEHUJ HWDO'LYHUVHRSHUDWLRQDOFRQWH[WVQHFHVVLWDWHFRQWH[WXDOGH[WHULW\ DQGÀH[LELOLW\UHJDUGLQJUROHVDQGWDVNVUHTXLULQJGHHSHUDQGEURDGHU FRPSHWHQFLHVLQPLOLWDU\SHUVRQQHO%LUNLQVKDZDQG*LEVRQ1HZ VHUYLFHSDWWHUQVDOVRUHTXLUHGLIIHUHQWO\PRWLYDWHGVROGLHUVDQGRI¿FHUV ZLWKEHWWHUOHDGHUVKLSVNLOOVDQGPRUHUREXVWQHVVWKDQEHIRUH8QGHUWKHVH FLUFXPVWDQFHVKLJKHUOHYHOVRIFRPPLWPHQWPD\EHLPSHUDWLYHIRUHIIHF WLYHPLOLWDU\SHUIRUPDQFH)DULV/H%RHXI0RVNRV $ORQJVLGHFKDQJLQJVRFLDOFRQGLWLRQVRSHUDWLRQDOFRQFHSWVDQGVNLOO

UHTXLUHPHQWVFKDQJHVKDYHDOVRRFFXUUHGLQWKHZD\PLOLWDU\SHUVRQQHO YLHZWKHLURFFXSDWLRQ7KHVHFKDQJHVKDYHEHHQGHVFULEHGDVDPLOLWDU\ LGHQWLW\FULVLV )RUV\WKHHW DOZKLFKPLJKW LQÀXHQFHERWK WKH VKDSLQJDQGPDLQWHQDQFHRIPLOLWDU\LGHQWLW\DQGRFFXSDWLRQDOSHUFHS WLRQ0lNLQHQ%HFDXVHPLOLWDU\LGHQWLW\DQGPLOLWDU\SHUIRUPDQFH DSSHDUWREHHQPHVKHGLWLVLPSRUWDQWWRH[SORUHDQGXQGHUVWDQGWKHFRQ VHTXHQFHVRIWKHLULQWHUDFWLRQ+RZHYHUUHVHDUFKRQWKLVWRSLFLVVFDUFH ZLWKIHZHPSLULFDOVWXGLHVH[SORULQJWKHUHODWLRQVKLSEHWZHHQWKHQHZ UHTXLUHPHQWVDQGUHOHYDQWRXWFRPHYDULDEOHV7KHSUHGLFWLYHYDOXHRI PLOLWDU\LGHQWLW\VKRXOGWKHUHIRUHEHH[DPLQHGEHIRUHQHZVHOHFWLRQDQG WUDLQLQJSURFHGXUHVDUHDGRSWHGIRUWKHGHYHORSPHQWRIIXWXUHPLOLWDU\ OHDGHUV$OWKRXJKWKHSUHVHQWVWXG\LQYHVWLJDWHG1RUZHJLDQFRQGLWLRQV LQSDUWLFXODULWV¿QGLQJVPD\EHRIPRUHJHQHUDOLQWHUHVW)RUH[DPSOH 7UHVFKIRXQGVWURQJFURVVQDWLRQDOVLPLODULWLHVLQPLOLWDU\GHYHO RSPHQWZLWKLQRUJDQL]DWLRQVVXFKDV1$72 7KHREMHFWLYHRIWKLVVWXG\LVWRH[DPLQHZKHWKHUDQGWRZKDWH[WHQW

PLOLWDU\ LGHQWLW\ LQÀXHQFHV1RUZHJLDQ RI¿FHU WUDLQLQJ&RQVLGHULQJ WKHVKLIWLQPLOLWDU\FRPSHWHQFLHVDQGLGHQWLW\GHPDQGHGE\FKDQJLQJ JHRSROLWLFDO FRQGLWLRQVZHPLJKW H[SHFWSURIHVVLRQDOLVPRQH DVSHFW RILGHQWLW\WREHUHODWHGWREHWWHUFRSLQJDQGSHUIRUPDQFH'RPLOLWDU\ DFDGHP\VWXGHQWVGLIIHUZLWKUHVSHFWWRPLOLWDU\LGHQWLW\DQGLIVRKRZ GRHVWKLVDIIHFWWKHLUPLOLWDU\SHUIRUPDQFH":HLQYHVWLJDWHGWKLVE\XVLQJ

UHJUHVVLRQPRGHOV WR WHVW WKH K\SRWKHVLV WKDW SURIHVVLRQDOLVPZRXOG LQFUHDVH WKHSUHGLFWLRQRIPLOLWDU\SHUIRUPDQFHEH\RQG WKHYDULDQFH H[SODLQHGE\PLOLWDU\HWKRVRUJDQL]DWLRQDOFRPPLWPHQWDQGKDUGLQHVV

0LOLWDU\,GHQWLW\ 5RRWHGLQPLOLWDU\VRFLRORJ\WKHEURDGFRQFHSWRIPLOLWDU\LGHQWLW\

PD\ EH H[SORUHG LQ QRUPDWLYH WHUPV OLNH FXOWXUH DWWLWXGHV YDOXHV DQGPRWLYDWLRQIROORZLQJWKHFODVVLFDOWKHRULHVRI+XQWLQJWRQ -DQRZLW] DQG0RVNRV 0LOLWDU\ LGHQWLW\PD\ DOVR EH GHVFULEHGE\ VRFLDO LGHQWLW\ WKHRU\ 7DMIHO DQG7XUQHU 3HRSOH FDWHJRUL]HRWKHUVDVEHORQJLQJWRGLIIHUHQWJURXSLQJVDQGWKHQDGRSWWKH LGHQWLW\RIWKHJURXSWKH\FRQVLGHUWKHPVHOYHVDVEHORQJLQJWRHYHQWX DOO\FRPSDULQJWKDWJURXSZLWKRWKHUV)DYRUDEOHFRPSDULVRQRIRQH¶V RZQJURXSZLWKRWKHUVDOORZVWKHPDLQWHQDQFHRIVHOIHVWHHP+DVODP VDZVRFLDOLGHQWL¿FDWLRQDVDQLQWHUQDOL]DWLRQRIWKHYDOXHVDQG JRDOVRIDQRUJDQL]DWLRQ0LOLWDU\LGHQWLW\ZRXOGWKHQEHUHODWHGWRWKH DUPHGIRUFHV¶SUHYDLOLQJJRDOVYDOXHVDQGWDVNVDQGLWPD\EHH[SUHVVHG DVWKHGHJUHHWRZKLFKVROGLHUVDQGRI¿FHUVDUHPRWLYDWHGDQGZLOOLQJWR LQWHUQDOL]HWKHVH)XUWKHUDFFRUGLQJWR6PLWKDQG+RJJVRFLDO LGHQWLW\ WKHRU\ SURYLGHV DQ LQWHJUDWLYH IUDPHZRUN IRU JURXSEDVHG DQDO\VLVRIDWWLWXGHSKHQRPHQDH[SOLFLWO\W\LQJDWWLWXGHVWRWKHZLGHU VRFLDOFRQWH[WRIVRFLDO LGHQWLWLHVVRFLDOJURXSVDQGWKHG\QDPLFVRI LQWHUJURXSUHODWLRQV&KDQJHVLQ:HVWHUQFXOWXUHKDYHDOVRFRPSOLFDWHG LGHQWLW\VKDSLQJDQGYHUL¿FDWLRQ&{WpDQG/HYLQHEHFDXVHWKH FRPSOH[LW\RIWKHLQGLYLGXDO³VHOI´LQFUHDVHVDORQJVLGHWKHQXPEHURI JURXSVRUJDQL]DWLRQVDQGLGHQWLWLHVDYDLODEOHWRWKHLQGLYLGXDO6WU\NHU 7KXV DV VRFLHW\ DVZHOO DV WKH DUPHG IRUFHV FKDQJHPLOLWDU\ LGHQWLW\LVOLNHO\WRDOWHUDFFRUGLQJO\

,GHDOLVP7KH1RUZHJLDQ+HULWDJH 'XULQJWKH&ROG:DU1RUZD\KHOGDJHRSROLWLFDOO\NH\UROHLQWKH

VWUDWHJLFEDODQFHDQGVWUDWHJLFLQWHUSOD\EHWZHHQ1$72DQGWKH:DUVDZ 3DFW7KH6RYLHW8QLRQSUHVHQWHGDQLPPHGLDWHDQGGLUHFWWKUHDWDQG 1$72¶VZLOOLQJQHVVWRGHIHQG1RUZHJLDQERUGHUVZDVVXEVWDQWLDO7KH LPSRUWDQFHRI D VWURQJ WHUULWRULDO GHIHQVH FDXVHG WKHGHYHORSPHQW LQ 1RUZD\RIDQDWLRQLQDUPVPRGHOEDVHGRQWKHFRQFHSWRIWKHFLWL]HQ VROLGHU$QLGHDOLVWLFPLOLWDU\LGHQWLW\EDVHGRQVWURQJFROOHFWLYLVPSDWULR WLVPDQGDOWUXLVWLFYDOXHVZDVWKXVIRVWHUHG8OULNVHQ7KHSULPDU\ FDXVHZDVWRGHIHQG1RUZHJLDQWHUULWRU\DQG¿JKWIRUWKHKRPHODQGE\

DQ\PHDQVQHFHVVDU\ZLWKPLOLWDU\VHUYLFH UHJDUGHGDVDZD\RI OLIH UHTXLULQJQRPRQHWDU\UHZDUGV7KLVFORVHO\PDWFKHVWKHLQVWLWXWLRQDO YDOXHVRXWOLQHG LQ0RVNRVC ZHOOHVWDEOLVKHG,2WKHVLVZKHUH DQLGHDOLVWLFLGHQWLW\LQYROYHVQHJDWLYHDWWLWXGHVWRZDUGSDUWLFLSDWLRQLQ LQWHUQDWLRQDORSHUDWLRQVDQGDQHPSKDVLVRQWKHFDXVHDVWKHSULPDU\ PRWLYDWLRQWRVHUYHDORQJVLGHWUDGLWLRQDODOWUXLVWLFDQGSDWULRWLFYDOXHV PRWLYDWHGE\D³JUHDWHUJRRG´VXUSDVVLQJSHUVRQDOLQWHUHVWV+RZHYHU DFXUUHQWZLGHVSUHDGYLHZLVWKDWWKLVWUDGLWLRQDOPLOLWDU\LGHQWLW\LVQRZ LUUHOHYDQW IRU1RUZD\ DQG VKRXOG WKHUHIRUH EH DEDQGRQHG 8OULNVHQ (ULNVVRQ<HWUHFHQWVWXGLHVKDYHDOVRVKRZHGWKDW LGHDOLVWLFDQGSDWULRWLFYDOXHVPD\KDYHEHHQXQGHUHVWLPDWHGERWKDVD PRWLYDWLRQWRVHUYHDQGDVSRWHQWLDOO\LPSRUWDQWSUHGLFWRUVRIPLOLWDU\ HIIHFWLYHQHVVDQGSHUIRUPDQFH:RRGUXIIHWDO(LJKPH\ %HQ'RUHWDO

$1HZ3DUDGLJP7KH(PHUJHQFHRI3URIHVVLRQDOLVP 7KHHQGRIWKH&ROG:DUVKLIWHG1$72¶VVWUDWHJLFIRFXVDQGFRQVLG

HUDEO\UHGXFHG1RUZD\¶VJHRSROLWLFDOLPSRUWDQFH0LOLWDU\RSHUDWLRQV RWKHUWKDQZDU0227:VLQFUHDVHGLQOLQHZLWK1$72¶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¶VUHOHYDQFHUHOLDELOLW\DQGHIIHFWLYHQHVVDVD 1$72PHPEHUQRZGHSHQGHGRQLWVDELOLW\WRSURYLGHIRUFHVUHDG\IRU UDSLGLQWHUQDWLRQDOGHSOR\PHQWDQGMRLQWRSHUDWLRQV(IIHFWLYHPLOLWDU\ SHUIRUPDQFHSUHVXSSRVHGVHUYLFHPHPEHUV¶ZLOOLQJQHVVWR¿JKWDQGVHUYH RXWVLGH1RUZD\¶VERUGHUVULVNLQJWKHLU OLYHVIRUSXUSRVHVQRWDOZD\V FOHDUO\H[SUHVVHGDQGSHUKDSVHYHQZHDNO\XQGHUVWRRG$GHFLVLRQDOVR UHIHUUHG WRDV WKH1RUZHJLDQPLOLWDU\SDUDGLJPVKLIWZDV WKXVPDGH LQWRPRYHWKH1RUZHJLDQPLOLWDU\LGHQWLW\DZD\IURPLGHDOLVP WRZDUG SURIHVVLRQDOLVP (ULNVVRQ 3URIHVVLRQDOLVPZDV LQWURGXFHGDQGGRFWULQDOO\IRUPDOL]HGDVDQHFHVVDU\FRQGLWLRQWRVHUYH LQWKHPLOLWDU\DQGZDVVHHQDVDZD\WRLQFUHDVHPLOLWDU\SHUIRUPDQFH )RUVYDUHWVRYHUNRPPDQGR

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

WRZDUGDQGIRFXVRQWKHFRQGXFWRIFRPEDWRSHUDWLRQVLQFOXGLQJWKH GHYHORSPHQWDQGXVHRIVNLOOVUHODWHGWRWKLV³KRW´SDUWRIWKHPLOLWDU\ RUJDQL]DWLRQ+RZHYHU LIYROXQWDULVP LVSUDFWLFHG LQ WKHPLOLWDU\ DQ XQFRQGLWLRQDOZLOOLQJQHVV WR SDUWLFLSDWH LQ0227:XQGRXEWHGO\ LQYROYHVWKHULVNRIDQDFFHOHUDWHGRSHUDWLRQDOWHPSRIRUFHUWDLQPHPEHUV ZKLFKPD\LQFUHDVHVWUHVVDVZHOODVUHGXFHPRWLYDWLRQ%HQ'RUHWDO $GRFWULQHRISURIHVVLRQDOLVPPD\WKXVEHLQVXI¿FLHQWWRVXVWDLQ WKHDUPHGIRUFHVRQLWVRZQDQGLWVJHQHUDOUHOHYDQFHDQGSRVLWLYHHIIHFW PD\EHTXHVWLRQHG

,QGLYLGXDOLVP$7KUHDWWRWKH$UPHG)RUFHV" 1RUZHJLDQVRFLHW\KDVGHYHORSHGLQDGLUHFWLRQLQZKLFKWKHULVHRI

LQGLYLGXDOLVPDQGVHOILQWHUHVWKDVZHDNHQHGWKHDXWKRULW\DQGFROOHF WLYHYDOXHVRIWKHQDWLRQDOVWDWH7KLVKDVDIIHFWHGQRWRQO\WKHDUPHG IRUFHVDVDQRUJDQL]DWLRQEXWDOVRLWVPHPEHUV0RVNRVFODLPHG WKDWVXFKGHYHORSPHQWVFDQFDXVHWKHPLOLWDU\WRIDOOIURPLWVIRUPHUO\ HOHYDWHG VRFLHWDO SRVLWLRQ WR EHFRPH VLPSO\ RQH QDWLRQDO LQVWLWXWLRQ DPRQJRWKHUVDQGWKDWPLOLWDU\VHUYLFHFDQFKDQJHIURPEHLQJDFDOOLQJ RIYRFDWLRQOHJLWLPL]HGE\LQVWLWXWLRQDOYDOXHVWRDUHJXODURFFXSDWLRQ OHJLWLPL]HGE\WKHODERUPDUNHW,QWKLVFDVHRFFXSDWLRQDOYDOXHVDQG PRWLYHVDUHEDVHGSULPDULO\RQVHOILQWHUHVWZLWKLWVSRWHQWLDOO\QHJD WLYHLPSDFWRQWKHRUJDQL]DWLRQ6HUYLQJLQWKHDUPHGIRUFHVWKXVFRPHV WREHUHJDUGHGDV³MXVWDQRWKHU MRE´HQFRPSDVVLQJWKHHTXDOSD\IRU HTXDOZRUNSULQFLSOHRIFLYLOLDQRFFXSDWLRQVDVZHOODVDQHPSKDVLVRQ PRQHWDU\UHZDUGVZLWKZHOORUJDQL]HGZRUNLQJKRXUVDQGOHLVXUHDQG IDPLO\SULRULWL]HGRYHUWKHGXW\RIVHUYLFH0RVNRV$QH[WHQVLRQ RI0RVNRV¶V,2WKHVLVLVIRXQGLQ%DWWLVWHOOL¶VZRUN+H DUJXHVWKDWVROGLHUVDUHPRWLYDWHGWRMRLQWKHDUPHGIRUFHVE\WKHSURP LVHRIDPHDQLQJIXOSHUVRQDOH[SHULHQFHDVZHOODVDGYHQWXUHVHHNLQJ

UDWKHUWKDQIRUSDWULRWLFRURFFXSDWLRQDOUHDVRQV+HWKHUHIRUHVHHVWKH ,2PRGHODVDQLQVXI¿FLHQWH[SODQDWLRQRIWKHGLYHUVLW\LQVROGLHUV¶VHOI UHSRUWLQJRIWKHLUPRWLYHVDQGKHDUJXHVWKDWLQGLYLGXDOLVPFDQEHVHHQDV UHVXOWLQJIURPERWKRFFXSDWLRQDODQGSRVWPRGHUQDWWLWXGHV7KHVHLGHDV ZHUHVXSSRUWHGE\-DFREVHQ¶VVWXG\RIVHUYLFHPRWLYDWLRQDPRQJ 1RUZHJLDQRI¿FHUVZKLFKIRXQGWKDWWKHLUPRWLYHVLQFOXGHGHOHPHQWV RIVHOIIXO¿OOPHQWDULVLQJLQDVRFLHW\RIJHQHUDOO\KLJKVWDQGDUGVRIOLY LQJ,QGLYLGXDOLVPPD\WKXVDULVHIURPDFRPELQDWLRQRIRFFXSDWLRQDO YDOXHVGUDZQIURP0RVNRV¶V,2WKHVLVDQGSRVWPRGHUQYDOXHVGHVFULEHG E\%DWWLVWHOOL¶VZRUN+RZHYHUWKH1RUZHJLDQ-RLQW'RFWULQHFDVWVWKH DUPHGIRUFHVDVDQRUJDQL]DWLRQFKDUDFWHUL]HGE\FROOHFWLYLVPDQGHVSULW GHFRUSV7KHGRFWULQHDOVRKLJKOLJKWVWKHLPSRUWDQFHRIDYRLGLQJVHOI FHQWHUHGQHVVDQGVHO¿VKQHVVGHVFULELQJLQGLYLGXDOLVPDVD³WKUHDW´WR WKHTXDOLW\RIVHUYLFH %DVHGRQ0RVNRV¶VZRUNVXEVWDQWLDOVWXGLHVKDYH

EHHQFDUULHGRXWWRH[SORUHDWWLWXGHVRILQGLYLGXDOLVPDQGVHOIIXO¿OOPHQW DQGWKHLUFRQVHTXHQFHVLQ:HVWHUQDUPHGIRUFHV,QGLYLGXDOLVPDSSHDUV WR QHJDWLYHO\ LQÀXHQFH WKHPLOLWDU\ DQG VWXGLHV E\)DULV DQG *ULI¿WKIRXQGWKDWLQGLYLGXDOLVWPRWLYHVIRUDUP\VHUYLFHQHJD WLYHO\DIIHFWHGFRPEDWHIIHFWLYHQHVV ,ISURIHVVLRQDOLVPLVLQGHHGDSUHUHTXLVLWHIRUHIIHFWLYHPLOLWDU\SHU

IRUPDQFHLWVLQWURGXFWLRQDVDWDUJHWPLOLWDU\LGHQWLW\VKRXOGUHSUHVHQW DJHQHUDOLPSURYHPHQWWRWKHVHUYLFH%DVHGRQWKHVHFRQFHSWLRQVWKH G\QDPLFVDQGGHYHORSPHQWRI1RUZHJLDQPLOLWDU\LGHQWLW\WKXVFDQEH LOOXVWUDWHGDVLQ)LJXUH7UDLQLQJDQGHGXFDWLRQUHVXOWVVKRXOGLPSURYH UHVXOWLQJLQDKLJKHUGHJUHHRIRSHUDWLRQDOSUHSDUHGQHVV$JUHDWHUGHJUHH RISURIHVVLRQDOLVPPLJKWDOVRLPSURYHMRLQWRSHUDWLRQDOTXDOLW\LQWHUPV RIFRRSHUDWLRQDQGHI¿FLHQF\ 6XFFHVVDQGTXDOLW\LQPLOLWDU\RSHUDWLRQVPLJKWLQWXUQEHWKHNH\

WRPDLQWDLQLQJSRSXODUWUXVWDQGVXSSRUW&RQYHUVHO\DPLOLWDU\RUJDQL ]DWLRQODFNLQJLQSURIHVVLRQDOLVPPLJKWFRQWDLQPHPEHUVLOOSUHSDUHG PHQWDOO\DQGSK\VLFDOO\IRUDPRGHUQRSHUDWLRQDOUHDOLW\8OWLPDWHO\WKLV PLJKWFDXVHHURVLRQLQWKHHIIHFWLYHQHVVRIWKHDUPHGIRUFHV,WVKRXOG KRZHYHUEHQRWHGWKDWSURIHVVLRQDOLVPIDYRUVWKHZDUOLNHFRPSRQHQW RIWKHFRQÀLFWVSHFWUXP$QRYHUHPSKDVLVRISURIHVVLRQDOLVPDQGWKH ZDUULRU UROH RI WKH VROGLHU FRXOG WKXVEHG\VIXQFWLRQDO LQ RSHUDWLRQV IRFXVHGRQRWKHUSDUWVRIWKHFRQÀLFWVSHFWUXPZKHUHGLIIHUHQWTXDOLWLHV PD\EHUHTXLUHG ,QRUGHUWRHVWDEOLVKDQHZHPSLULFDOEDVHOLQHIRUNQRZOHGJHUHODWHG

WR FLYLOPLOLWDU\ UHODWLRQV WKH LQWHUDFWLRQ EHWZHHQPLOLWDU\ LGHQWLW\

SHUVRQDOLW\ DQG VSHFL¿FSHUIRUPDQFHYDULDEOHVPXVW EH LQYHVWLJDWHG 7KLVNQRZOHGJHPD\LQWXUQIRUPWKHEDVLVRIWKHRUHWLFDODQGSUDFWLFDO GHYHORSPHQWVERWKIRU1RUZD\LQSDUWLFXODUDQGIRUFRPSDUDEOHQDWLRQV VXFKDV:HVWHUQ1$72PHPEHUVLQJHQHUDO$VOLWWOHSUHYLRXVUHVHDUFK RQ WKHVH LVVXHV KDV EHHQ FRQGXFWHG WKLV VWXG\ UHSUHVHQWV D XQLTXH VWHS LQXQGHUVWDQGLQJWKH LQWHUSOD\EHWZHHQPLOLWDU\VRFLRORJLFDODQG SV\FKRORJLFDOSKHQRPHQD 0LOLWDU\,GHQWLW\DQG(WKRVDV3UHGLFWRUVRI0LOLWDU\3HUIRUPDQFH +DVODPDQGYDQ'LFNHWDOFODLPHGDNH\UROHIRUVRFLDO

LGHQWL¿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¶VWUDGLWLRQDO ,2WKHVLVKDVEHHQGRQHWRLGHQWLI\GLIIHUHQWDVSHFWVRI LGHQWLW\DQGDWWLWXGHVDVVXPHGWRDIIHFWWKHDUPHGIRUFHVDVDQRUJDQL ]DWLRQWKHPDMRULW\RIUHVHDUFKIRFXVHVRQWUHQGVDWWKHRUJDQL]DWLRQDO OHYHO$OSDVVHWDO+DOWLQHUDQG.PPHO:RRGZDUGDQG -HQNLQJVDQGRSLQLRQLVVWLOOGLYLGHGRYHUKRZWRLQWHUSUHWPLOLWDU\ LGHQWLW\DQGWKHH[WHQWWRZKLFKLWDIIHFWVPHPEHUVRIWKHRUJDQL]DWLRQ

(YHWWV/RFN3XOODQ:RRGZDUGDQG-HQNLQJV,QWKHLU UHFHQWDQDO\VHVRIWKHLPSDFWRILGHQWLW\DQGVHUYLFHYDOXHVRQSHUIRU PDQFH*URMHDQDQG7KRPDVDUJXHWKDWVXFKDOLQNLVGLI¿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ÀLFWLQJUROHRULHQWDWLRQVLQWKHPLOLWDU\&RWWRQ

GHYHORSHGWKH0LOLWDU\(WKRV6FDOHWRDVVHVVPLOLWDU\PHPEHUVC YLHZVRIGLIIHUHQWUROHREOLJDWLRQVUHODWHGWRWKHRUJDQL]DWLRQRIPLOLWDU\ OLIH%DVHGRQWKHHVVHQFHRI0RVNRV¶VLGHDVRIDWWLWXGLQDOWUHQGV LQPLOLWDU\LQVWLWXWLRQVWKHVFDOHZDVFRQVLGHUHGE\PLOLWDU\PHPEHUVDQG UHVHDUFKHUVDOLNHWRWRXFKRQFHQWUDODVSHFWVRIPLOLWDU\SURIHVVLRQDOLVP &RWWRQ*XLPRQG%HFDXVHWKHVFDOHH[SUHVVHVDQRUPDWLYH PRGHORIWKHGLVWLQFWHWKRVWRZKLFKPLOLWDU\SHUVRQQHODUHUHTXLUHGWR FRQIRUPPLOLWDU\HWKRVFRXOGEHH[SHFWHGWRDIIHFWSHUIRUPDQFHLQD SRVLWLYHGLUHFWLRQ

2UJDQL]DWLRQDO&RPPLWPHQWDQG0LOLWDU\3HUIRUPDQFH 2UJDQL]DWLRQDOFRPPLWPHQWPD\EHVHHQDVWKHSV\FKRORJLFDODWWDFK

PHQWRIHPSOR\HHVWRWKHRUJDQL]DWLRQGLVWLQJXLVKDEOHIURPRWKHUZRUN UHODWHGYDULDEOHVVXFKDVMREVDWLVIDFWLRQ,QWKHLUHIIRUWVWRGHYHORSD YDOLGPHDVXUHRIRUJDQL]DWLRQDOFRPPLWPHQW0RZGD\6WHHUVDQG3RUWHU IRXQGFRPPLWPHQWWREHFKDUDFWHUL]HGE\WKUHHUHODWHGIDFWRUV DVWURQJEHOLHILQDQGDFFHSWDQFHRIWKHRUJDQL]DWLRQ¶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

IRXQG WKDW DIIHFWLYH FRPPLWPHQWZDV SRVLWLYHO\ UHODWHG WR VROGLHUV¶ SHUIRUPDQFHPHDVXUHGE\DMRENQRZOHGJHWHVWDQGDJHQHUDOVROGLHULQJ WHVWDVZHOODVSHUFHLYHGFRPEDWUHDGLQHVVDQGPRUDOH2¶6KHDHWDO IXUWKHUFRQFOXGHGWKDWDIIHFWLYHFRPPLWPHQWSUHGLFWHGVROGLHUV¶ FRQWH[WXDOSHUIRUPDQFHZKLOH.DUUDVFKIRXQGDIIHFWLYHFRPPLW PHQWWREHPRGHUDWHO\FRUUHODWHGZLWKOHDGHUVKLSSHUIRUPDQFH$PDMRULW\ RIVWXGLHVWKXVLQGLFDWHDSRVLWLYHUHODWLRQVKLSEHWZHHQRUJDQL]DWLRQDO FRPPLWPHQWDQGPLOLWDU\SHUIRUPDQFH

+DUGLQHVVDVD3UHGLFWRURI0LOLWDU\3HUIRUPDQFH +DUGLQHVVLVDSDWWHUQRIDWWLWXGHVDQGVNLOOVWKDWSURYLGHWKHFRXUDJH

DQGVWUDWHJLHVWRWXUQVWUHVVIXOFLUFXPVWDQFHVIURPSRWHQWLDOGLVDVWHUVLQWR RSSRUWXQLWLHVIRUHQKDQFHGSHUIRUPDQFHOHDGHUVKLSFRQGXFWKHDOWKDQG SV\FKRORJLFDOJURZWK0DGGL5HVHDUFKDOVRVXJJHVWVWKDWXQGHU VWUHVVWKHFRXUDJHLQYROYHGLQKDUG\DWWLWXGHVSURYLGHVWKHVWUHQJWKDQG PRWLYDWLRQIRUWUDQVIRUPDWLRQDOFRSLQJVXSSRUWLYHVRFLDOLQWHUDFWLRQV DQGIDFLOLWDWLYHVHOIFDUH0DGGL0DGGLDQG.REDVD0DGGL¶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

7KH3UHVHQW6WXG\ 7KHSUHVHQWVWXG\H[DPLQHGWKHLQÀXHQFHRIPLOLWDU\LGHQWLW\RQPLOL

WDU\SHUIRUPDQFHLQ1RUZHJLDQSHWW\RI¿FHUVWXGHQWVDQGWKHSRWHQWLDO RIPLOLWDU\LGHQWLW\WRSUHGLFWWKHLUPLOLWDU\SHUIRUPDQFHEH\RQGPLOLWDU\ HWKRVRUJDQL]DWLRQDOFRPPLWPHQWDQGKDUGLQHVV3HWW\RI¿FHUVWXGHQWV ZHUHFKRVHQDVVXEMHFWVVLQFHLQWKHPLOLWDU\WKHEDVLFWUDLQLQJDQGHGX FDWLRQVHWWLQJSURYLGHVWKHPRVWOLNHO\SHULRGIRUDUHFUXLW¶VUROHLGHQWLW\

WREHVKDSHGE\DFRQWUROOHGVRFLDOL]DWLRQH[SHULHQFHGXULQJZKLFKWKH LQGXFWLRQRI FRUHRUJDQL]DWLRQDOYDOXHV LVPRVW OLNHO\ WR VXFFHHG$V PLOLWDU\ HWKRV RUJDQL]DWLRQDO FRPPLWPHQW DQGKDUGLQHVV DUHSURYHQ WREHYDOXDEOHSUHGLFWRUVRIPLOLWDU\SHUIRUPDQFH%DUWRQHHWDO %DUWRQHHWDO(LGDQG0RUJDQ*DGHHWDO*XLPRQG .DUUDVFK2¶6KHDHWDOWKHLQÀXHQFHRIPLOLWDU\LGHQ WLW\ZRXOGEHVXSSRUWHGLILWVSUHGLFWLYHHIIHFWZHUHWRH[WHQGEH\RQG WKDWRIWKHRWKHUYDULDEOHV 7KHIROORZLQJIRXUK\SRWKHVHVZLOOWKXVEHWHVWHG

‡ +0LOLWDU\HWKRVRUJDQL]DWLRQDOFRPPLWPHQWDQGKDUGLQHVVDUH SRVLWLYHO\UHODWHGWRRYHUDOOSHUIRUPDQFHSHWW\RI¿FHUSRWHQWLDODQG OHDGHUSHUIRUPDQFH

‡ +3URIHVVLRQDOLVPLVSRVLWLYHO\UHODWHGWRRYHUDOOSHUIRUPDQFHSHWW\ RI¿FHUSRWHQWLDODQGOHDGHUSHUIRUPDQFH

‡ +,QGLYLGXDOLVPLVQHJDWLYHO\UHODWHGWRRYHUDOOSHUIRUPDQFHSHWW\ RI¿FHUSRWHQWLDODQGOHDGHUSHUIRUPDQFH

‡ +2YHUDOO SHUIRUPDQFH SHWW\ RI¿FHU SRWHQWLDO DQG OHDGHU SHU IRUPDQFHZLOOEHSUHGLFWHGE\PLOLWDU\HWKRVRUJDQL]DWLRQDOFRP PLWPHQWDQGKDUGLQHVVZLWKPLOLWDU\ LGHQWLW\DGGLQJ LQFUHPHQWDO SUHGLFWLYHYDOLGLW\WRWKHPRGHO

0HWKRGV 3DUWLFLSDQWV

$WRWDORIFDQGLGDWHVSDUWLFLSDWHGLQWKHVWXG\LQFOXGLQJPHQ DQGZRPHQ7KHDYHUDJHDJHRIWKHVWXGHQWVZDV \HDUV6' 7KHVDPSOHFRQVWLWXWHGRIWKHWRWDOVWXGHQWJURXS LQYLWHGWRSDUWLFLSDWHLQWKHVXUYH\

0HDVXUHV

'HPRJUDSKLFV$JHVH[DQGSUHYLRXVPLOLWDU\H[SHULHQFHZHUHDVVHVVHG 0LOLWDU\H[SHULHQFHZDVFRGHGDVDGLFKRWRPRXVYDULDEOHPLOLWDU\H[SH ULHQFHSUHFHGLQJSHWW\RI¿FHUHGXFDWLRQYHUVXVQRSUHYLRXVH[SHULHQFH 0LOLWDU\(WKRV7KHVL[LWHP0LOLWDU\(WKRV6FDOHGHYHORSHGE\&RWWRQ ZDVXVHGWRPHDVXUHSDUWLFLSDQWV¶YLHZVRIFRQÀLFWLQJUROHREOL JDWLRQVUHODWHGWRWKHRUJDQL]DWLRQRIPLOLWDU\OLIH,WHPVZHUHUDWHGRQD SRLQW/LNHUWVFDOHUDQJLQJIURP³VWURQJO\GLVDJUHH´WR³VWURQJO\DJUHH´ ZLWK KLJK VFRUHV LQGLFDWLQJ RFFXSDWLRQDO RU LQGLYLGXDOLVWLF DWWLWXGHV

DQG ORZ VFRUHV LQGLFDWLQJ DWWLWXGHV RI LGHDOLVP DQG SURIHVVLRQDOLVP $VDPSOHLWHPLV³1RERG\VKRXOGEHIRUFHGWRWDNHXSDQDVVLJQPHQW VKHGRHVQ¶WZDQW´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³QRWDWDOO FRUUHFW´WR³FRPSOHWHO\FRUUHFW´$VDPSOHLWHPLV³&KDQJHVLQURXWLQHV DUHLQWHUHVWLQJWRPH´ 0LOLWDU\,GHQWLW\0LOLWDU\LGHQWLW\ZDVPHDVXUHGE\WKHLWHP3UR IHVVLRQDO ,GHQWLW\ 6FDOH -RKDQVHQ ZKLFK DVVHVVHV WKH WKUHH GLPHQVLRQVSURIHVVLRQDOLVPLWHPVLQGLYLGXDOLVPLWHPVDQG LGHDOLVPLWHPV$OOVFDOHVZHUHUDWHGRQDSRLQW/LNHUWVFDOHUDQJ LQJIURP³VWURQJO\GLVDJUHH´WR³VWURQJO\DJUHH´([DPSOHVRILWHPVDUH ³,DPZLOOLQJWRWDNHXSDVVLJQPHQWVZKHUHYHUWKHJRYHUQPHQWGHFLGHV´ SURIHVVLRQDOLVP³,UHJDUGWKHPLOLWDU\MXVWDVDQRUGLQDU\ZRUNSODFH´ LQGLYLGXDOLVPDQG³7KHPDLQWDVNRIWKHDUPHGIRUFHVLVWRSURWHFWWKH KRPHODQG´LGHDOLVP

0LOLWDU\3HUIRUPDQFH

2QHFKDOOHQJHRISHUIRUPDQFHPHDVXUHPHQWLVWR¿QGYDOLGLQGLFDWRUV WKDWLQIDFWUHODWHWRRUJDQL]DWLRQDOJRDODFKLHYHPHQW²VRPHWKLQJRIWHQ UHIHUUHG WR DV WKH FULWHULRQ SUREOHP %RUPDQ DQG0RWRZLOGR ,WVHHPHGDSSURSULDWHLQRXUFDVHWRVHHNYDULDEOHVWKDWPLJKWFRQVWLWXWH JHQHULFLQGLFDWRUVRISHUIRUPDQFHLQWKHDUPHGIRUFHV7KXVZHVHOHFWHG RYHUDOOSHUIRUPDQFHSHWW\RI¿FHUSRWHQWLDODQGOHDGHUSHUIRUPDQFHDVRXU

SHUIRUPDQFHLQGLFDWRUVDVWKH\DSSHDUHVVHQWLDODFURVVERWKIXQFWLRQDO DQGKLHUDUFKLFDOOHYHOVLQWKHPLOLWDU\VHUYLFHV 2YHUDOO3HUIRUPDQFH

7KHVWXGHQWV¶DYHUDJHJUDGHVRQFRPSOHWLQJWKHLUWUDLQLQJZHUHXVHG DVDJHQHUDOSHUIRUPDQFH LQGLFDWRU ,QDGGLWLRQ WRPHDVXULQJVSHFL¿F UHVXOWVDFKLHYHGGXULQJSHWW\RI¿FHUWUDLQLQJDYHUDJHJUDGHVDUHDOVRDQ LQGLFDWLRQRIJHQHUDODFDGHPLFDFKLHYHPHQW$FDGHPLFSHUIRUPDQFHLV LPSRUWDQWDVWKH$UPHG)RUFHVDUHDQHGXFDWLRQDOO\LQWHQVLYHRUJDQL]D WLRQZKHUHWKHPHPEHUVDOWHUQDWHEHWZHHQSUDFWLFDOVHUYLFHDQGWUDLQLQJ 6WXGHQWV¶DYHUDJHJUDGHVUDQJLQJIURPWRZLWKEHLQJWKHEHVW

PDUNSURYLGHGDQRYHUDOOSHUIRUPDQFHPHDVXUHIRUWKLVVWXG\UHSUHVHQWLQJ DZHLJKWHGPHDVXUHEDVHGRQWKHFRUHPLOLWDU\VXEMHFWVHJOHDGHUVKLS HWKLFVZHDSRQVNLOOVSK\VLFDOVNLOOVGXULQJWUDLQLQJ7KHUHZHUHVRPHGLI IHUHQFHVEHWZHHQVFKRROVUHODWHGWRWKHFDOFXODWLRQRIWKHDYHUDJHJUDGHDV WRVXEMHFWFRPELQDWLRQVDQGZHLJKWLQJ+RZHYHUEHFDXVHWKHSDUDPRXQW REMHFWLYHVDSSHDUHGWREHLGHQWLFDODFURVVVFKRROVDYHUDJHJUDGHVZHUH FRQVLGHUHGDPHDVXUHPHQWZHOOVXLWHGWRHVWDEOLVKLQJDQRYHUDOOLPSUHV VLRQRIVWXGHQWSHUIRUPDQFHLQGHSHQGHQWRIPLQRUVFKRROGLIIHUHQFHV 3HWW\2I¿FHU3RWHQWLDO

$QRWKHUYLWDOWUDLQLQJSHULRGPHDVXUHLVSHWW\RI¿FHUSRWHQWLDOZKLFK DLPVWRUHÀHFWWKHVWXGHQWV¶PLOLWDU\DWWLWXGHDQGGHGLFDWLRQ7KHVWXGHQWV¶ IXWXUHSRWHQWLDODVRI¿FHUV LVHYDOXDWHGEDVHGRQGLIIHUHQW WDUJHWDUHDV VXFKDVOHDGHUSRWHQWLDOVHOIUHÀHFWLYHQHVVIDLWKLQWKHLURZQDELOLWLHV DQGJHQHUDODWWLWXGHV7KHLPSRUWDQFHRIRI¿FHUSRWHQWLDOLVVXSSRUWHGE\ 6FKXPPDQGFROOHDJXHVZKRIRXQGLQWKHLUVWXG\RI86VROGLHUV WKDWPLOLWDU\GHGLFDWLRQDQGEHDULQJVKRZHGVWURQJFRUUHODWLRQVZLWKDQXP EHURIRXWFRPHYDULDEOHVVXFKDVSUHSDUHGQHVVPRUDOHDQGFRPPLWPHQW $VWUXFWXUHGHYDOXDWLRQSURFHVVWDNHVSODFHGXULQJWKHHQWLUHWUDLQLQJ

SURFHVVEDVHGRQQXPHURXVRI¿FHUHYDOXDWLRQVRIWKHVWXGHQWV7KHSUR FHVVLVVXSHUYLVHGE\DQDVVLJQHGRI¿FHUZKRLQWXUQFROOHFWVRSLQLRQV IURPRWKHU LQVWUXFWRUV7KH GHYHORSPHQW SURFHVV DOVR LQFOXGHV WKUHH WR¿YHIHHGEDFNVHVVLRQVEHWZHHQVXSHUYLVRUDQGVWXGHQW7KHRI¿FHU HYDOXDWLRQPHDVXUHVLPSRUWDQWYDULDEOHVLQFOXGLQJPLOLWDU\EHDULQJDQG EHKDYLRUDQGIXWXUHRI¿FHUSRWHQWLDODQGVHHNVWRWUDFNDQGGHYHORSWKH VWXGHQW¶VPLOLWDU\VWDPLQD$WWKHHQGRIWUDLQLQJWKHVXSHUYLVRUVXP PDUL]HVKHULPSUHVVLRQVDVD¿QDOJUDGHUDQJLQJIURPWRZLWKEHLQJ WKHWRSPDUN7KLVJUDGHFRQVWLWXWHVWKHSHWW\RI¿FHUSRWHQWLDOPHDVXUH

/HDGHU3HUIRUPDQFH

6XEVWDQWLDOUHVHDUFKKDVEHHQFDUULHGRXWRQPLOLWDU\OHDGHUVKLSZKLFK KDVEHHQIRXQGWREHFUXFLDOIRUHIIHFWLYHSHUIRUPDQFH7KHUHIRUHHIIHF WLYHOHDGHUVKLSLVWKHRYHUDUFKLQJJRDORIPLOLWDU\HGXFDWLRQDQGSUDFWLFH ZLWKWKHVHOHFWLRQHGXFDWLRQDQGGHYHORSPHQWRIJRRGOHDGHUVEHLQJRI JUHDWFRQVHTXHQFHIRUWKHRUJDQL]DWLRQ%DUWRQHHWDO/HDGHUVKLSLV DFRUHWRSLFRI1RUZHJLDQSHWW\RI¿FHUWUDLQLQJDLPLQJWRVWUHQJWKHQWKH VWXGHQWV¶WHDPZRUNDQGGHFLVLRQPDNLQJVNLOOVWKHLUDELOLW\WRLQÀXHQFH DQGGHYHORSRWKHUVWKHLUHWKLFDODZDUHQHVVDQGNQRZOHGJHRISODQQLQJ DQGVXSHUYLVLRQ6WXGHQWV¶OHDGHUVKLSTXDOLWLHVDUHGHYHORSHGDQGDVVHVVHG WKURXJKWKHRUHWLFDODQGSUDFWLFDOWUDLQLQJDORQJZLWKVXSHUYLVLRQ &RUHGRPDLQVUHODWHGWRWKHVWXGHQWV¶OHDGHUSHUIRUPDQFHZHUHGXW\

PRWLYDWLRQWHDPZRUNLQÀXHQFLQJRWKHUVHWKLFVSODQQLQJGHOHJDWLRQ VXSHUYLVLQJGHFLVLRQPDNLQJDQGGHYHORSLQJRWKHUV7KHOHDGHUSHUIRU PDQFHJUDGHZDVEDVHGRQWKHDYHUDJHRIWZRVHSDUDWHVFRUHVWKH¿UVWRQH DSUDFWLFDOVFRUHEDVHGRQSUDFWLFDOWHVWVDQGH[HUFLVHHYDOXDWLRQVOHDGHU VKLSWDVNVDQGLQVWUXFWLRQVWKHVHFRQGRQHDQH[DPEDVHGWKHRUHWLFDO VFRUH7KHFRPSRVLWHOHDGHUVKLSJUDGHUDQJLQJIURPWRZLWKEHLQJ WKHWRSPDUNSURYLGHGWKHOHDGHUVKLSSHUIRUPDQFHPHDVXUHIRUWKLVVWXG\

'DWD&ROOHFWLRQ 4XHVWLRQQDLUHVZHUHGLVWULEXWHGWRRIWKHVWXGHQWVDWWKHHQGRIWKHLU

SHWW\RI¿FHUWUDLQLQJLQ-XQH$WRWDORIFRPSOHWHGTXHVWLRQQDLUHV ZHUHUHWXUQHG6FKRROUHVXOWVVXFKDVDYHUDJHJUDGHVRI¿FHUHYDOXDWLRQ DQGOHDGHUVKLSJUDGHVZHUHSURYLGHGE\HDFKLQVWLWXWLRQDODGPLQLVWUDWRU $IWHUKDYLQJ OLQNHGVFKRRO UHVXOWV WRVXUYH\GDWDDQGFRQWUROOLQJIRU PLVVLQJGDWDVWXGHQWVUHPDLQHGDVKDYLQJFRPSOHWHGDWDVHWV7KH VWXG\ZDVDSSURYHGE\WKH1RUZHJLDQ6RFLDO6FLHQFH'DWD6HUYLFH

6WDWLVWLFDO$QDO\VLV 'HVFULSWLYH VWDWLVWLFV DQG LQWHUFRUUHODWLRQVZHUH FRPSXWHG IRU DOO

VWXG\YDULDEOHV&RUUHODWLRQV DQG UHJUHVVLRQ DQDO\VLVZHUH FRPSXWHG XVLQJOLVWZLVHGHOHWLRQRIPLVVLQJGDWDDQG&URQEDFK¶VDOSKDZDVXVHG WR HVWLPDWH LQWHUQDO FRQVLVWHQF\ IRU WKH VFDOHV LQFOXGHG LQ WKH VWXG\ 6HSDUDWHKLHUDUFKLFDOUHJUHVVLRQPRGHOVZHUHFRPSXWHGIRUHDFKGHSHQ GHQWYDULDEOHRYHUDOOSHUIRUPDQFHSHWW\RI¿FHUSRWHQWLDODQGOHDGHU SHUIRUPDQFH7KH¿UVWVWHSLQWKHUHJUHVVLRQPRGHOLQFOXGHGVH[DQG SUHYLRXVPLOLWDU\H[SHULHQFHDVFRQWUROYDULDEOHV)RUVWHSWZRPLOLWDU\

HWKRVRUJDQL]DWLRQDOFRPPLWPHQWDQGKDUGLQHVVZHUHHQWHUHG)LQDOO\ WKHSURIHVVLRQDOLGHQWLW\GLPHQVLRQVZHUHHQWHUHGLQDWKLUGVWHSWRWHVW IRUDQ\XQLTXHLQÀXHQFHRIWKHVHRQRYHUDOOSHUIRUPDQFHSHWW\RI¿FHU SRWHQWLDODQGOHDGHUSHUIRUPDQFHDIWHUFRQWUROOLQJIRUWKHHIIHFWVRIDOO RWKHUSUHGLFWRUYDULDEOHV,QGLYLGXDOSUHGLFWRUVZHUHRQO\LQWHUSUHWHGLI WKHFRUUHVSRQGLQJVWHSZDVVLJQL¿FDQW

5HVXOWV 'HVFULSWLYH VWDWLVWLFV LQFOXGLQJ FRUUHODWLRQV EHWZHHQ WKH VWXGLHG

YDULDEOHV DUH SUHVHQWHG LQ7DEOH +\SRWKHVHV ±ZHUH WHVWHG E\ LQYHVWLJDWLQJFRUUHODWLRQV+DUGLQHVVZDVPRGHVWO\EXWVLJQL¿FDQWO\FRU UHODWHGZLWKSHWW\RI¿FHUSRWHQWLDOU $VIRUPLOLWDU\LGHQWLW\ DQGWKHRXWFRPHYDULDEOHVSURIHVVLRQDOLVPVKRZHGVPDOOEXWVLJQL¿FDQW FRUUHODWLRQVZLWKERWKRYHUDOOSHUIRUPDQFHU DQGSHWW\RI¿FHU SRWHQWLDOU )LQDOO\LQGLYLGXDOLVPZDVIRXQGWREHQHJDWLYHO\ DQGVLJQL¿FDQWO\FRUUHODWHGZLWKRYHUDOOSHUIRUPDQFHU í &RU UHODWLRQDQDO\VHVZHUH IROORZHGXSZLWK WKUHHKLHUDUFKLFDO UHJUHVVLRQ DQDO\VHVWRWHVW+\SRWKHVLVWKHUHVXOWVRIZKLFKDUHSUHVHQWHGLQ7DEOH 2YHUDOO 3HUIRUPDQFH7KH GHPRJUDSKLF YDULDEOHV FRPELQHG VH[ DQG SUHYLRXVPLOLWDU\H[SHULHQFHH[SODLQHGDVPDOOEXWVLJQL¿FDQWSDUWRI WKHYDULDQFHLQRYHUDOOSHUIRUPDQFH7KHFRQWULEXWLRQRIPLOLWDU\ HWKRVRUJDQL]DWLRQDOFRPPLWPHQWDQGKDUGLQHVV LQVWHSH[SODLQHGD VPDOOEXWVLJQL¿FDQWDGGLWLRQDOSDUWRIWKHYDULDQFHLQRYHUDOOSHUIRU PDQFH7KHLQGLYLGXDOFRQWULEXWLRQVRIRUJDQL]DWLRQDOFRPPLWPHQWDQG KDUGLQHVVZHUHDOVRERWKVLJQL¿FDQW$GGHG LQVWHSPLOLWDU\ LGHQWLW\ H[SODLQHGDVLJQL¿FDQWSDUWRIWKHYDULDQFHLQRYHUDOOSHUIRUPDQFH DIWHUFRQWUROOLQJIRUDOORWKHUYDULDEOHV2IWKHLQGLYLGXDOSUHGLFWRUVRQO\ SURIHVVLRQDOLVPZDV VLJQL¿FDQW ZLWK KLJKHU OHYHOV RI SURIHVVLRQDOLVP DVVRFLDWHGZLWK LQFUHDVHG OHYHOVRIRYHUDOO SHUIRUPDQFH ,QGLYLGXDOLVP GLGQRWH[SODLQDVLJQL¿FDQWSDUWRIWKHYDULDQFHLQRYHUDOOSHUIRUPDQFH 3HWW\2I¿FHU 3RWHQWLDO$JDLQ VH[ DQG SUHYLRXVPLOLWDU\ H[SHULHQFH ZHUHHQWHUHGLQWKH¿UVWVWHSDVFRQWUROYDULDEOHVH[SODLQLQJDVLJQL¿ FDQWSDUWRIWKHYDULDQFH$VDQLQGLYLGXDOSUHGLFWRUVH[H[SODLQHG D VLJQL¿FDQW SDUW RI WKH YDULDQFH LQGLFDWLQJ VH[ GLIIHUHQFHV LQ SHWW\ RI¿FHU SRWHQWLDOZLWK WKH OHYHO EHLQJ KLJKHU DPRQJPDOHV 3UHYLRXV PLOLWDU\ H[SHULHQFH DOVR H[SODLQHG D VLJQL¿FDQW SDUW RI WKH YDULDQFH LQGLFDWLQJWKDWVWXGHQWVZLWKSUHYLRXVPLOLWDU\H[SHULHQFHVFRUHGORZHU WKDQWKRVHZLWKRXWLW7KHFRQWULEXWLRQRIPLOLWDU\HWKRVRUJDQL]DWLRQDO

FRPPLWPHQWDQGKDUGLQHVVLQVWHSZDVDOVRVLJQL¿FDQWZLWKWKH LQGLYLGXDOSUHGLFWRUVRIRUJDQL]DWLRQDOFRPPLWPHQWDQGKDUGLQHVVERWK VLJQL¿FDQW)LQDOO\WKHFRQWULEXWLRQRIPLOLWDU\LGHQWLW\LQVWHSZDV QRQVLJQL¿FDQW /HDGHU 3HUIRUPDQFH 6H[ DQG SUHYLRXV PLOLWDU\ H[SHULHQFH ZHUH HQWHUHGLQWKH¿UVWVWHSDVFRQWUROYDULDEOHVEXWIDLOHGWRSUHGLFWDVLJQLI LFDQWSDUWRIWKHYDULDQFHLQOHDGHUSHUIRUPDQFH1HLWKHUVWHSVPLOL WDU\HWKRVRUJDQL]DWLRQDOFRPPLWPHQWDQGKDUGLQHVVQRUPLOLWDU\ LGHQWLW\ZHUHVLJQL¿FDQW

'LVFXVVLRQ 7KH SXUSRVH RI WKLV VWXG\ZDV WR H[DPLQHZKHWKHU SURIHVVLRQDO

LVPDQGRWKHUGLPHQVLRQVRIPLOLWDU\LGHQWLW\ZHUHUHODWHGWRPLOLWDU\ SHUIRUPDQFHRYHUDOOSHUIRUPDQFHIXWXUHRI¿FHUSRWHQWLDODQGOHDGHU SHUIRUPDQFHDQGDOVRWRLQYHVWLJDWHZKHWKHUPLOLWDU\LGHQWLW\ZRXOG LQFUHDVHWKHSUHGLFWLRQRIPLOLWDU\SHUIRUPDQFHEH\RQGSUHGLFWLRQVE\ UHODWHGYDOXHFRQVWUXFWVVXFKDVPLOLWDU\HWKRVRUJDQL]DWLRQDOFRPPLW PHQWDQGKDUGLQHVV6H[DQGSUHYLRXVPLOLWDU\H[SHULHQFHZHUHDOVR H[DPLQHGDVFRQWUROYDULDEOHV +\SRWKHVLVZDVRQO\SDUWO\VXSSRUWHGDVRQO\RQHRIWKHFRQWURO

YDULDEOHVKDUGLQHVVVKRZHGDPRGHVWEXWVLJQL¿FDQWFRUUHODWLRQZLWK RQHRIWKHWKUHHRXWFRPHYDULDEOHVSHWW\RI¿FHUSRWHQWLDOU +\SRWKHVHVDQGZHUHSDUWO\VXSSRUWHGDVSURIHVVLRQDOLVPVKRZHG VPDOO EXW VLJQL¿FDQW FRUUHODWLRQVZLWK ERWK RYHUDOO SHUIRUPDQFH U DQGSHWW\ RI¿FHU SRWHQWLDO U ZKLOH LQGLYLGXDOLVP ZDV IRXQG WR EH QHJDWLYHO\ DQG VLJQL¿FDQWO\ FRUUHODWHGZLWK RYHUDOO SHUIRUPDQFH U í )XUWKHU WKH UHJUHVVLRQ DQDO\VLV IRXQG WKDW GHPRJUDSKLFYDULDEOHVIDLOHGWRH[SODLQDVLJQL¿FDQWSDUWRIOHDGHUSHU IRUPDQFHYDULDQFHZKHUHDVGHPRJUDSKLFYDULDEOHVSUHGLFWHGDQG RIWKHYDULDQFHLQRYHUDOOSHUIRUPDQFHDQGSHWW\RI¿FHUSRWHQWLDO UHVSHFWLYHO\$QDO\VHVVKRZHGWKDWVH[KDGDVLJQL¿FDQWHIIHFWRQSHWW\ RI¿FHUSRWHQWLDOZLWKPDOHVWXGHQWVVFRULQJVOLJKWO\KLJKHUWKDQIHPDOHV 7KHVH¿QGLQJVFRXOGEHH[SODLQHGE\JHQGHUVWHUHRW\SHVDVWKHSV\FKR ORJLFDODWWULEXWHVUHTXLUHGRIDVXFFHVVIXOVROGLHUDUHVWHUHRW\SLFRIPHQ ZKHUHDV WKH VWHUHRW\SLF TXDOLWLHV SRVVHVVHGE\ZRPHQ DUH H[SOLFLWO\ UHMHFWHG(EEHUWDQG+DOO)UDQFNH+RZHYHUFRQWUDU\WR WKHVH¿QGLQJV%ROGU\DQG:RRGIRXQGLQWKHLUVWXG\RIJHQGHU VWHUHRW\SHVDPRQJ86FDGHWVWKDWIHPDOHFDGHWVVFRUHGKLJKHURQFKDU DFWHUUDWLQJVFOHDUO\DVVRFLDWHGZLWKRI¿FHUSRWHQWLDO%DUWRQHHWDO

UHSRUWHGVLPLODUUHVXOWVIURPWKHLUVWXG\RIOHDGHUSHUIRUPDQFHLQ:HVW 3RLQWFDGHWVUHYHDOLQJWKDWIHPDOHFDGHWVDFKLHYHGKLJKHUVFRUHVWKDQ PDOHV LQGLFDWLQJ DQ DEVHQFHRI JHQGHU VWHUHRW\SH HIIHFWV LQPLOLWDU\ HGXFDWLRQDOLQVWLWXWLRQV7KXVDQH[SODQDWLRQFRXOGEHWKDWWKHGLIIHUHQFH ZDVUHDOKRZHYHUVPDOODQGQRQH[LVWHQWIRUWKHRWKHUWZRLQGLFDWRUVRI PLOLWDU\SHUIRUPDQFH %DUWRQHHWDODUJXHGWKDWPLOLWDU\H[SHULHQFHSULRUWRHQWHU

LQJPLOLWDU\ LQVWLWXWLRQV VKRXOGEH FRQVLGHUHG LQ IXWXUH UHVHDUFK DV D SRVVLEOH SUHGLFWRU RI SHUIRUPDQFH5HJUHVVLRQ DQDO\VHV LQ RXU VWXG\ VKRZHGWKDWSUHYLRXVPLOLWDU\H[SHULHQFHSUHGLFWHGSHWW\RI¿FHUSRWHQWLDO ȕ í LQGLFDWLQJWKDWVWXGHQWVZLWKVXFKH[SHULHQFHDFKLHYHG ORZHU VFRUHV WKDQ WKRVHZLWKRXW7KHVH¿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

HWKRVRUJDQL]DWLRQDOFRPPLWPHQWDQGKDUGLQHVVSUHGLFWHGERWKRYHUDOO SHUIRUPDQFHDQGSHWW\RI¿FHUSRWHQWLDOEXWQRWOHDGHUSHUIRUPDQFH$Q H[DPLQDWLRQRILQGLYLGXDOSUHGLFWRUVUHYHDOHGWKDWRUJDQL]DWLRQDOFRPPLW PHQWFRQWULEXWHGVLJQL¿FDQWO\ZKHQSUHGLFWLQJERWKRYHUDOOSHUIRUPDQFH DQGSHWW\RI¿FHUSRWHQWLDOWKRXJKLQDQHJDWLYHGLUHFWLRQFRQWUDGLFWLQJ +\SRWKHVLV7KLV¿QGLQJLVVXUSULVLQJDVFRPPLWPHQWFRXOGEHUHJDUGHG DV DQ LPSHUDWLYH IRU HIIHFWLYHSHUIRUPDQFH LQ WKHPLOLWDU\ *DGHDQG 7LJJOH/H%RHXI0RVNRVDVSUHYLRXVUHVHDUFKLQGLFDWHV DSRVLWLYHUHODWLRQVKLSEHWZHHQRUJDQL]DWLRQDOFRPPLWPHQWDQGGLIIHU HQWDVSHFWVRIPLOLWDU\SHUIRUPDQFH*DGHHWDO.DUUDVFK 2¶6KHDHWDO2QHH[SODQDWLRQVXJJHVWHGE\%UDGOH\DQG1LFRO FRXOGEHWKDWWKHVWXGHQWVODFNWKHDGHTXDWHH[SHULHQFHUHTXLUHG WR DFFXUDWHO\ DVVHVV WKHLU RZQ RUJDQL]DWLRQDO FRPPLWPHQW$QRWKHU H[SODQDWLRQPD\EHUHODWHGWRRXUVSHFL¿FSHUIRUPDQFHFULWHULD$QJOH DQG/DZVRQIRXQGWKDWDIIHFWLYHFRPPLWPHQWZDVFRUUHODWHGRQO\ ZLWKDVSHFWVRISHUIRUPDQFHWKDWUHTXLUHPRWLYDWLRQEXWQRWZLWKDELOLW\ %RWKRYHUDOOSHUIRUPDQFHDQGSHWW\RI¿FHUSRWHQWLDODUHEDVHGRQFODVV URRPDELOLWLHVSK\VLFDODELOLW\DQGDWWLWXGHVDVZHOODVRQJHQHUDOOHDGHU DELOLWLHV7KHUHIRUHWKHFULWHULDXVHGKHUHDUHPXOWLGLPHQVLRQDOLQQDWXUH

$VH[SHFWHGKDUGLQHVVFRQWULEXWHGVLJQL¿FDQWO\ERWKWRRYHUDOOSHU IRUPDQFHDQGWRSHWW\RI¿FHUSRWHQWLDOEXWQRWWROHDGHUSHUIRUPDQFH +\SRWKHVLVZDV WKXVSDUWO\VXSSRUWHG7KLV¿QGLQJFRQYHUJHVZLWK SUHYLRXVUHVHDUFKGHPRQVWUDWLQJWKHJHQHUDOUHOHYDQFHRIKDUGLQHVVLQ PLOLWDU\VHWWLQJV *DO0DGGLDVZHOODV WKHYDOXH RIKDUGLQHVVLQSUHGLFWLQJSHUIRUPDQFHLQW\SLFDOPLOLWDU\WUDLQLQJVHW WLQJV%DUWRQHHWDO(LGDQG0RUJDQ2XU¿QGLQJV DSSHDUHG WR UHLQIRUFH WKH YDOXH RI KDUGLQHVV DV D VRXQGSUHGLFWRU RI PLOLWDU\SHUIRUPDQFH )LQDOO\WKHVWHSLQYROYLQJPLOLWDU\LGHQWLW\GLPHQVLRQVDGGHGWRWKH

SUHGLFWLRQRIRYHUDOOSHUIRUPDQFHEXWQRWWRSHWW\RI¿FHUSRWHQWLDORU OHDGHUSHUIRUPDQFH7KHLQGLYLGXDOSUHGLFWRURISURIHVVLRQDOLVPKDGD VLJQL¿FDQWHIIHFWRQRYHUDOOSHUIRUPDQFHLQGLFDWLQJWKDWVWXGHQWVZKR LGHQWLI\PRUHFORVHO\ZLWKWKHGRFWULQDLUHH[SHFWDWLRQVRISURIHVVLRQDOLVP SHUIRUPEHWWHURYHUDOOGXULQJWKHLUWUDLQLQJ7KLVUHVXOWWKXVSDUWO\VXS SRUWV+\SRWKHVLV+RZHYHUWKLVLQLWLDODWWHPSWWRPHDVXUHWKHXQLTXH HIIHFWRIPLOLWDU\LGHQWLW\UHYHDOHGVRPHLPSRUWDQWDQGLQWHUHVWLQJ¿QG LQJV)LUVWWKHVLJQL¿FDQWSRVLWLYHUHODWLRQVKLSEHWZHHQSURIHVVLRQDOLVP DQGRYHUDOOSHUIRUPDQFHDPRQJPLOLWDU\VWXGHQWVLVHQFRXUDJLQJVXS SRUWLQJWKHH[SHFWHGSRVLWLYHRXWFRPHRISURIHVVLRQDOLVP,WDOVRUXQV FRXQWHUWRSUHYLRXVXQVXFFHVVIXODWWHPSWVWRHVWDEOLVKDOLQNEHWZHHQ UROHVSHFL¿FLGHQWLW\DQGSHUIRUPDQFH*URMHDQDQG7KRPDV+RZ HYHUVRPHVXSSRUWIRURXU¿QGLQJVH[LVWV*URMHDQDQG7KRPDV SRLQWHGRXWWKDWWKHJUHDWHVWLPSDFWRQRQH¶VDWWLWXGHVYDOXHRULHQWDWLRQ DQGVXEVHTXHQWEHKDYLRULVWKDWRIUROHVSHFL¿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¿FDQWFRUUHODWLRQEHWZHHQSURIHVVLRQ

DOLVPDQGSHWW\RI¿FHUSRWHQWLDODQGOHDGHUVKLSWKHUHJUHVVLRQDQDO\VHV VKRZHG WKDW SURIHVVLRQDOLVP IDLOHG WR FRQWULEXWH WR WKH SUHGLFWLRQRI WKHVHYDULDEOHV7KLVFRLQFLGHVZLWKDQDO\VHVSHUIRUPHGE\*URMHDQDQG 7KRPDVSRLQWLQJWRWKHGLI¿FXOWLHVLQHVWDEOLVKLQJDOLQNEHWZHHQ UROHVSHFL¿F LGHQWLW\ DQGSHUIRUPDQFH DVZHOO DV WKHSRVVLELOLW\ WKDW

VWXGHQWVODFNWKHH[SHULHQFHQHFHVVDU\IRUWKHDFFXUDWHDVVHVVPHQWRI WKHLURZQPLOLWDU\LGHQWLW\ )XUWKHUUHJUHVVLRQDQDO\VHVLQGLFDWHGDQHJDWLYHWKRXJKQRWVLJQL¿

FDQWUHODWLRQVKLSEHWZHHQLQGLYLGXDOLVPDQGWKHSHUIRUPDQFHYDULDEOHV DVH[SHFWHGDQGVXSSRUWHGE\SUHYLRXV¿QGLQJV*ULI¿WK$VWKH UHVXOWV DSSHDUHGQRQVLJQL¿FDQW+\SRWKHVLV FDQQRWEH UHJDUGHGDV IXOO\ VXSSRUWHG1R VLJQL¿FDQW HIIHFWVZHUH H[SHFWHGZLWK UHJDUG WR LGHDOLVPZKLFKZDVFRQ¿UPHGERWKE\FRUUHODWLRQVDVZHOODVE\WKH UHJUHVVLRQDQDO\VLV

6WXG\/LPLWDWLRQVDQG)XWXUH'LUHFWLRQV 2QHOLPLWDWLRQRIWKLVVWXG\LVLWVFURVVVHFWLRQDOGHVLJQZKLFKPHDQV

WKDWQR¿UPFRQFOXVLRQVFDQEHGUDZQDVWRFDXVDOLW\)XUWKHUGHVSLWH WKHLGHQWL¿FDWLRQRIVWDWLVWLFDOO\VLJQL¿FDQWSUHGLFWRUVRIRYHUDOOSHUIRU PDQFHDQGSHWW\RI¿FHUSRWHQWLDO LQ WKLVVWXG\ WKHRYHUDOODPRXQWRI YDULDQFHDFFRXQWHGIRULVPRGHVWOHDYLQJPXFKRIWKHYDULDQFHXQH[ SODLQHG+RZHYHULWLVDPLVWDNHWRFRQFOXGHWKDWDPRGHVW5ðLQGLFDWHV DQXQLPSRUWDQW¿QGLQJ)RUH[DPSOH6DFNHWWHWDOVKRZHGWKDW LQUHJUHVVLRQDQDO\VLVHIIHFWVRIUHDOSUDFWLFDOVLJQL¿FDQFHPD\EHPHD VXUHGDVQRQVLJQL¿FDQW1HYHUWKHOHVVWKHVHDUFKVKRXOGFRQWLQXHIRU DGGLWLRQDOSUHGLFWRUVRISHUIRUPDQFHVXFKDVDELOLW\SHUVRQDOLW\DQG PRWLYDWLRQDOYDULDEOHV $QRWKHU SRVVLEOH H[SODQDWLRQ IRU WKH UHODWLYHO\ZHDN DVVRFLDWLRQV

EHWZHHQWKHSUHGLFWRUVDQGWKHPLOLWDU\SHUIRUPDQFHPHDVXUHVPD\EH SRRUFULWHULRQUHOLDELOLW\6FKRROUHVXOWVLQWHUPVRIJUDGHVDUHWRDFHUWDLQ H[WHQWVXEMHFWLYHE\QDWXUH7KHUHPDLQLQJPHDVXUHVZHUHDOVREDVHGRQ UDWLQJVE\RWKHUVZKLFKPLJKWEHH[SHFWHGWRKDYHEHWWHUYDOLGLW\WKDQ VHOIUHSRUWV+RZHYHUWKHVHOHFWHGYDULDEOHVRQO\FDSWXUHFHUWDLQDVSHFWV RISHUIRUPDQFHLQDQHGXFDWLRQDOVHWWLQJ7KXVIXWXUHUHVHDUFKVKRXOG H[SORUHDGGLWLRQDOPHDVXUHPHQWVRIPLOLWDU\SHUIRUPDQFHH[WHQGHGWR FRQWH[WVRXWVLGHWKHHGXFDWLRQDOHQYLURQPHQW (YLGHQFHIURPWKLVVWXG\FRQ¿UPVWKHYDOXHRIKDUGLQHVVDVDZHOO

NQRZQSUHGLFWRURIPLOLWDU\SHUIRUPDQFHDQGWKDWSURIHVVLRQDOLVPDOVR DSSHDUVWREHDGYDQWDJHRXVIRUIXWXUHMXQLRURI¿FHUV7KHVH¿QGLQJV WKXVFRQWULEXWHWRDQHZHPSLULFDOEDVHOLQHIRUNQRZOHGJHUHODWHGWR FLYLOPLOLWDU\UHODWLRQVZKHUHWKHLQWHUDFWLRQEHWZHHQPLOLWDU\LGHQWLW\ SHUVRQDOLW\DQGVSHFL¿FSHUIRUPDQFHYDULDEOHVLVH[DPLQHG7KLVVWXG\ WKXV UHSUHVHQWV D XQLTXH VWHS LQ LQYHVWLJDWLQJ WKH LQWHUSOD\ EHWZHHQ PLOLWDU\VRFLRORJLFDODQGSV\FKRORJLFDOSKHQRPHQDZKLFKLQWXUQPD\

FRQWULEXWHWRWKHRUHWLFDODQGSUDFWLFDOGHYHORSPHQWVERWKIRU1RUZD\ LQSDUWLFXODUDQGIRUFRPSDUDEOHQDWLRQVVXFKDV:HVWHUQ1$72PHP EHUV LQ JHQHUDO+RZHYHU DGGLWLRQDOZRUN LV QHHGHG WR H[SORUH DQG HYDOXDWHWKHSRWHQWLDOYDOXHRISURIHVVLRQDOLVP)XUWKHUUHVHDUFKVKRXOG LQYHVWLJDWHWKHVWDELOLW\DQGGHYHORSPHQWRIWKLVUHODWLRQVKLSRYHUWLPH HVSHFLDOO\ IRFXVLQJ RQ WKH WUDQVLWLRQ IURP DQ HGXFDWLRQDO VHWWLQJ WR SURIHVVLRQDOOLIH

1RWH 7KHVHFKDUDFWHULVWLFVDUHDOVRUHFRJQL]HGLQ:RRGZDUGDQG-HQNLQJV¶UHFHQW

5HIHUHQFHV $OOHQ1DWDOLH-³2UJDQL]DWLRQDO&RPPLWPHQWLQWKH0LOLWDU\$'LVFXVVLRQRI