Definition Of Independence Research Articles

Perspectives on Comparative Corporate Governance

We seek to bring to the core of the study of comparative corporate governance analysis the idea that within countries and industries, there exist multiple configurations of firm level characteristics and governance practices leading to effective corproate governance. In particular, we propose that configurations composed of different bundles of corporate governance practices are a useful tool to examine corporate governance models across and within countries (as well as potentially to analyze over time changes). While comparative research, identifying stylized national models of corporate governance, has been fruitful to help us think about the key institutional and shareholder rights determining governance differences and similarities across countries, we believe that given the financialization of the corporate economy, current globalization trends of investment, and rapid information technology advances, it is important to shift our conceptualization of governance models beyond the dichotomous world of common-law/outsider/shareholder-oriented system vs. civil law/insider/stakeholder oriented system. Our claim is based on the empirical observation that there exists a wide range of firms that either (1) fall in the wrong corporate governance category; (2) are a hybrid of these two categories; or (3) should be placed into an entirely new category such as firms in emerging markets or state-owned firms. In addition, as Aguilera and Jackson (2003) argue, firms, regardless of their legal family constraints, their labor and product markets, and the development of the financial markets from which they can draw, have significant degrees of freedom to chose whether to implement different levels of a given corporate governance practice. That is, firms might chose to fully endorse a practice or simply seek to comply with the minimum requirements without truly internalizing the governance practice. An illustrative example of the different degrees of internalization of governance practices is the existing variation in firms’ definition of director independence or disclosure of compensation systems.We first discuss the conceptual idea of configurations or bundles of corporate governance practices underscoring the concpet of equifinal paths to given firm outcomes as well as the complementarity and substitution in governance practices. We then move to the practice level of analysis to show how three governance characteristics (legal systems, ownership and boards of directors) cannot be conceptualized independently, as each of them is contingent on the strength and prevalence of other governance practices. In the last section, we illustrate how different configurations are likely to playout across industries and countries, taking as the departing practice, corporate ownership.

Views on the Indefinable Independence - Results from a Survey Among Supervisory Directors in the Netherlands

Independence of internal supervisors is an important part of corporate governance and is seen as a necessary condition to guarantee the quality of monitoring. After the corporate scandals at the start of this century the demand for independent members in the board and in the key committees has significantly increased. However, a clear and consistent definition of independence lacks. Definitions and interpretations of independence differ between countries, corporate governance codes and board systems. This study investigates whether these interpretations of independence differ as well between different groups of internal supervisors. It questions internal supervisors on situations that are real threats for independence and on the stakeholders an internal supervisor should take care of. The inclusion of personal relationships in the lists of independence criteria is one of the focal points of the survey. The results show that internal supervisors consider personal relationships as a threat for independence, but they regard business and family relations as larger threats. A cluster analysis shows that two groups of internal supervisors can be distinguished. One group is more inclined to monitor for stakeholders other than shareholders and has more concerns about threats for independence. This group is also significantly younger, more female and gets less paid. The second group is more inclined to monitor for shareholders and is more male and better paid.

A remark on \boldsymbol p-convolution

We introduce a $p$-<i>product</i> of algebraic probability spaces, which is the definition of independence that is natural for the model of noncommutative Brownian motions, described in&nbsp;[10] (for $q=1$). Using methods of the conditionally free probab

A definition of background independence

We propose a definition for background (in)/dependence in dynamical theories of the evolution of configurations that have a continuous symmetry and test this definition on particle models and on gravity. Our definition draws from Barbour's best matching framework developed for the purpose of implementing spatial and temporal relationalism. Among other interesting theories, general relativity can be derived within this framework in novel ways. We study the detailed canonical structure of a wide range of best matching theories and show that their actions must have a local gauge symmetry. When gauge theory is derived in this way, we obtain at the same time a conceptual framework for distinguishing between background-dependent and -independent theories. Gauge invariant observables satisfying Kuchař's criterion are identified and, in simple cases, explicitly computed. We propose a procedure for inserting a global background time into temporally relational theories. Interestingly, using this procedure in general relativity leads to unimodular gravity.

Diversity partitioning without statistical independence of alpha and beta

Diversity partitioning has become a popular method for analyzing patterns of alpha and beta diversity. A recent evaluation of the method emphasized a distinction between additive and multiplicative partitioning and further advocated the use of multiplicative partitioning based on a presumed independence between alpha and beta. Concurrently, additive partitioning was criticized for producing dependent alpha and beta estimates. Until now, the issue of statistical independence of alpha and beta (in either type of partitioning) has not been thoroughly examined, partly due to confusion about the meaning of statistical independence. Here, we adopted a probability-based definition of statistical independence that is essentially identical to the definition found in any statistics textbook. We used a data simulation approach to show that alpha and beta diversity are not statistically independent in either additive or multiplicative partitioning. However, the extent of the dependence is not so great that it cannot be overcome by using appropriate statistical techniques to control it. Both additive and multiplicative partitioning are statistically valid and logically sound approaches to analyzing diversity patterns.

Compositional models and conditional independence in evidence theory

The goal of the paper is twofold. The first is to show that some of the ideas for representation of multidimensional distributions in probability and possibility theories can be transferred into evidence theory. Namely, we show that multidimensional basic assignments can be rather efficiently represented in a form of so-called compositional models. These models are based on the iterative application of the operator of composition, whose definition for basic assignments as well as its properties are presented. We also prove that the operator of composition in evidence theory is in a sense generalization of its probabilistic counterpart. The second goal of the paper is to introduce a new definition of conditional independence in evidence theory and to show in what sense it is superior to that formerly introduced by other authors.

Symptom specificity and the prospective generation of life events in adolescence.

The purpose of the present study was to uncover patterns in the generation of life events from symptom profiles and specific depression symptoms in an effort to obtain a fine-grained understanding of the stress-generation phenomenon. A community sample of 161 adolescents completed the Beck Depression Inventory-II (A. T. Beck, 1996) at Time 1, and then 88 returned 1 year later for an assessment of life events using a rigorous contextual interview and rating system. Consistent with hypotheses, and controlling for baseline stress, cognitive-affective symptoms of depression prospectively predicted higher levels of dependent interpersonal life events. In contrast, somatic symptoms prospectively predicted higher levels of independent life events. Further examination of the types of events generated by specific symptoms suggests that different mechanisms may drive specific patterns of symptom-event generation and suggests that broadening the definition of independence may be necessary to capture the full context of event generation.

Measuring energy security: Can the United States achieve oil independence?

Stochastic simulation of the direct economic costs of oil dependence in an uncertain future is proposed as a useful metric of oil dependence. The market failure from which these costs arise is imperfect competition in the world oil market, chiefly as a consequence of the use of market power by the Organization of the Petroleum Exporting Countries (OPEC) cartel. Oil dependence costs can be substantial. It is estimated that oil dependence costs to the US economy in 2008 will exceed $500 billion. Other costs, such as military expenditures or foreign policy constraints are deemed to be largely derivative of the actual or potential economic costs of oil dependence. The use of quantifiable economic costs as a security metric leads to a measurable definition of oil independence, or oil security, which can be used to test the ability of specific policies to achieve oil independence in an uncertain future.

Null model analyses of presence–absence matrices need a definition of independence

AbstractTests for species interactions that involve the comparison of a statistic calculated from observed matrix of species presences and absences with the distribution of the same statistic generated from a null model have been used by ecologists for about 30 years. We argue that the validity of these tests requires a specific definition of independence. In particular, we note that an assumption that is often made is that all presence–absence matrices with the same row and column totals are equally likely if there is no interaction. However, we show using a simple model for species presences and absences without any species interactions that, in general, this assumption should be made with caution. Our model incorporates a definition of independence, allowing the computation of probabilities of different patterns in the null matrices. Other definitions of independence are possible; one of them is outlined using a new generalized linear model approach for carrying out tests applicable to different null models with or without the assumption of keeping row and column totals fixed.

Independence and convergence in non-additive settings

Some properties of convergence for archimedean t-conorms and t-norms are investigated and a definition of independence for events, evaluated by a decomposable measure, is introduced. This definition generalizes the concept of independence provided by Kruse and Qiang for ?-additive fuzzy measures. Finally, we derive the two Borel---Cantelli lemmas in the context of the general framework considered.

A multi-dimensional approach toward collective choice

If we look carefully at Arrow's definition of independence of irrelevant alternatives, we are often puzzled as to why he does not examine collective choice in terms of a multi-dimensional framework. There is no reason why we should not employ a multi-dimensional approach as far as the definition is concerned. When we reconsider his original framework in terms of a multi-dimensional point of view, his other definition of unrestricted domain looks too demanding. Our actual preference relations may change according to the change of our view and our preference orderings seem rather independent even toward the same set of alternatives. Once we recognise this, it may be almost impossible to accept his unrestricted domain demanding free choice from all logically possible orderings of all alternatives, which may justify the notion that our choices are dimensionally separated. Our flexibility of choice may be rather restricted in an actual choice situation. By introducing a multidimensional approach, it is possible to have a more realistic explanation of our actual choice behaviour in the framework of collective choice theory. In this paper, the difference between the traditional single-dimensional approach and a new multi-dimensional approach is theoretically clarified.

An ancient black art.

The doctrine of pseudoreplication (DP) offers specific advice on how to ensure statistical independence and compute F-ratios properly when testing a null hypothesis. Our target article showed that this advice can lead to problems in experimental design and analysis. Though a few commenters attempt to defend DP, none offered substantive evidence that our modeling results were incorrect. In our response, we further highlight the complications surrounding definitions of experimental units. In particular, we show that the definition of independence assumed in DP is inconsistent with independence as defined in probability theory. We show that interconnectedness across levels of analysis is pervasive, and that no simple set of rules or procedures can help experimenters avoid this problem. We argue that the relevance or interference of a particular level of analysis can be determined only after an experiment is done. In our view, analytical methods must be designed to match experiments, the opposite of the advice offered in DP. Finally, we emphasize the weakness of null testing and the inability of p values to predict whether a result will generalize or be replicated.

No single definition of central bank independence is right for all countries

A new international data set covering over 100 countries for the period 1990–2004 is used to investigate the relationship between central bank independence (CBI) and inflation. CBI is a combination of de jure and de facto characteristics. No single mix of characteristics uniquely defines CBI. Consequently, no single definition of CBI is ‘right’ for all countries. The distribution of inflation around the world is concentrated in the tails. Hence, quantile regressions are estimated to investigate the role of CBI. We do find strong evidence that several core elements of what can be defined as CBI do reduce inflation.

Is there an association between director option compensation and the likelihood of misstatement?

Abstract Oversight bodies in the United States (US) have addressed the issue of director independence in recent years. Bebchuk et al. [Bebchuk, L., Grinstein, Y., Peyers, U. (2006). Lucky directors. (Working paper Harvard University Law School) SSRN # 952239.] found that director oversight may be impaired if directors receive option grants under favorable terms because these grants may create a mutuality of interest between directors and managers. We assess whether option grants to independent directors reduce oversight of financial reporting. Using a sample of 105 US firms that misstated their revenue matched with a sample of non-misstatement firms, we find that companies whose independent directors do not receive stock options are less likely to misstate revenues than companies who meet the Sarbanes–Oxley definition of independence. Our results show that compensating outside directors with stock options may weaken their independent oversight.

Consensus in Diverse Corporate Boards

Many directors are not simply insiders or outsiders. For example, an officer of a supplier is neither independent nor captive of management. We use a spatial model of board decisionmaking to analyze bargaining among multiple types of directors. Board decisions are modeled using a new solution concept called consensus. We use consensus to show that the information a new director brings is more important than the new director’s impact on bargaining when the board is large and not too diverse. Our model suggests broadening the regulatory definition of independence and requiring a supermajority of outsiders. It also cautions that strong penalties, such as those imposed by Sarbanes-Oxley erode incentives when board performance is difficult to measure. (JEL G30, D71, D72, C78)

No Single Definition of Central Bank Independence is Right for All Countries

This paper uses a new international data set covering over 100 countries for the period 1990-2004 to investigate the relationship between central bank independence (CBI) and inflation. It is argued that CBI is best thought as a collection of de jure and de facto characteristics. However, there is no single mix of characteristics that permits one to uniquely define what constitutes central bank independence. No single definition of central bank independence is 'right' for all countries. As the distribution of inflation around the world is concentrated in the tails of the distribution, as are many of the determinants of inflation, a quantile regression approach is the appropriate methodology to investigate the role of CBI. We do find strong evidence that several core elements of what can be defined as CBI do reduce inflation.

Toward a model space and model independence metric

Understanding the relationship between computer‐based models and the environment they simulate is becoming increasingly important as we try to predict how the earth's climate will change. As a surrogate for the representation of uncertainty in a prediction problem, it is common to use the range of behaviour from a set of models (an ensemble), and the ensemble mean as the ‘best guess’ prediction. We suggest a ‘model space’ metric, which, by providing one relevant definition of model independence, could allow us to begin to understand the relationship between model spread and prediction uncertainty. This in turn could allow the minimisation of bias from the inclusion of similar models in ensembles and quantification of how much independent information each model contributes to the prediction problem.

Where is Independent Director Efficacy?

Theoretically and empirically, the linkage between outside directors and firm performance is not conclusive in previous studies. We suspect that the mixed results are due to the failure to meet the requirements of the independence of outside directors. As the Taiwanese government has a rigorous definition of outside director independence, we employ a data set from Taiwan to test the impact of independent outside director assignment on a firm's performance. Our findings suggest that after controlling for a firm's past performance, independent outside director appointments do have a significantly positive impact on a firm's performance, and outperforming firms may have better performance but not significantly when assigning outside directors due to their absorptive capacity.

Probabilistic independence with respect to upper and lower conditional probabilities assigned by Hausdorff outer and inner measures

Upper and lower conditional probabilities are defined by Hausdorff outer and inner measures, when the conditioning events have positive and finite Hausdorff outer and inner measures in their dimension, otherwise, when the conditioning events have Hausdorff outer or inner measure equal to zero or infinity in their dimension, they are defined by a 0–1 valued finitely, but not countably, additive probability. Examples are given when the σ-field of the conditioning events is the σ-field of countable and co-countable subsets of [0, 1], the tail σ-field and the σ-field of symmetric events. The definitions of s-independence and s-irrelevance with respect to these upper and lower conditional probabilities are introduced to assure that logical independence is a necessary condition of stochastic independence. It is also proved that s-irrelevance is a sufficient condition for strong independence introduced for credal sets. An example is given to show that the converse is not true. The definitions of s-independence and strong independence are equivalent when all subsets of the sample space Ω have the same Hausdorff dimension, as it happens when Ω is a finite set. The definition of s-conditional irrelevance is given and a generalized factorization property is proposed as a necessary condition of s-conditional irrelevance. Examples are given to show that s-conditional irrelevance and s-irrelevance are not related; moreover, sufficient conditions are given for equivalence between s-conditional irrelevance and s-irrelevance.

Understanding ‘Independence’: Perspectives of occupational therapists

Purpose. The purpose of this study was to understand how the term independence is used in rehabilitation. In particular, we asked occupational therapists in Canada and Japan to interpret the term independence in terms of people with disabilities. In rehabilitation, independence has long been a key concept. A review of the literature shows that the term's meaning has shifted throughout the past century. However, despite its significance, the word's meaning has never been deeply analysed, and it is left to the interpretation of the individual practitioner; consequently, there is a conceptual confusion surrounding the term. Furthermore, no studies have been conducted from an inter-cultural viewpoint that included non-Western societies.Method. A qualitative interpretive study was conducted, based on semi-structured interviews with 18 occupational therapists. Nine Canadian and nine Japanese therapists were interviewed in depth and their perspectives analysed for themes and categories corresponding to their working definition of independence.Results. Therapists' interpretation of the term independence consisted of three perspectives: “Independence as competence,”“Independence as autonomy,” and “Independence as psychological qualities”. These perspectives were typically combined into two patterns of dealing with independence in practice. Differences between Canadian and Japanese perspectives were explored.Conclusions. The study's findings confirm some ideas about independence that have been pointed out in the professional literature, but they also add several important ideas – the idea of psychological characteristics as key to independence, and the notion of a cultural overlay on the definition and application of the concept independence. This study's findings should contribute to the ongoing discussion in the professional literature about the virtues and limitations of pursuing independence as the ultimate goal in rehabilitation.