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This paper investigates whether and how social-psychological mechanisms, namely reciprocity, demographic similarity, and similar experiences, affect CEO compensation packages with respect to the levels of total, fixed, and short- and mid-term compensation and the variable proportion of the compensation package. We use evidence from Germany as it is considered a prototype of a two-tier board system. Given the primary roles of both the CEO and the chair of the supervisory board, we especially highlight social-psychological mechanisms in the process leading to the final compensation package. Using a hand-collected sample of non-financial constituents of the German HDAX, we find that reciprocity can lead to a compensation package that is more favorable for the CEO. Results on similarity are ambivalent such that the effects of similarity on CEO compensation—both positive and negative—may depend on the dimension of similarity. Finally, the chair’s CEO experience, both inside and outside the focal company, also plays an essential role in shaping CEO compensation. More specifically, CEO experience in general is associated with more favorable compensation. However, having a chair that has been CEO at the focal company correlates with less favorable compensation packages except for when the CEO has also been recruited internally.

Da Sparkassen einen öffentlichen Auftrag erfüllen müssen, der ihr Bestehen gesetzlich legitimiert, zeichnet sich ihr Corporate-Governance-System durch Besonderheiten aus. Diese Besonderheiten wirken sich nicht nur auf die Vorstandstätigkeit, sondern auch auf die Tätigkeit der Kontrollorgane aus, welche eine nachhaltige Erfüllung des öffentlichen Auftrags prüfen und gewährleisten sollen. Nach einer Vorstellung des Corporate-Governance-Systems beschäftigt sich der Beitrag daher mit der Frage, ob und wie allgemeine Herausforderungen, die durch das System bedingt sind, sowie besondere Herausforderungen, die sich aus der langanhaltenden Niedrigzinspolitik ergeben, die Effektivität der Kontrollen beeinflussen. Since savings banks must fulfill a public contract that legitimizes their existence by law, a number of special features characterizes their corporate governance system. These features affect not only the activities of the management board, but also the activities of the surveillance institutions, which have to review and ensure the sustainable fulfillment of the public contract. After a presentation of the corporate governance system, the article therefore deals with the question of whether and how general challenges resulting from the corporate governance system as well as special challenges resulting from the long-term low interest rate policy influence the effectiveness of the controls

We investigate how the design of audit processes influences employees’ reporting decisions. We focus specifically on detective employee audits for which several employees are randomly selected after a defined period to audit their ex-post behavior. We investigate two design features of the audit process, namely, employee anonymity and process transparency, and analyze their impact on misreporting. Overall, we find that both components influence the extent of individuals’ misreporting. A nonanonymous audit decreases performance misreporting more than an audit in which the employee remains anonymous. Furthermore, the high incidence of performance misreporting in the case of anonymous audits can be decreased when the process transparency is low. Thus, our study informs accountants about how the two design features of employee anonymity and transparency of the audit process can be used to constrain performance misreporting to increase the efficiency of audits

This study investigates how tone at the top, implemented by top management, and tone at the bottom, in an employee’s immediate work environment, determine noncompliance. We focus on the disallowed actions of employees that improve their own and, in turn, the company’s performance, referred to as performance-improving noncompliant behavior (PINC behavior). We conduct a survey of German sales employees to investigate specifically how, on the one hand, (1) corporate rules and (2) performance pressure, both implemented by top management, and, on the other hand, (3) others’ PINC expectations and (4) others’ PINC behavior, both arising from the employee’s immediate work environment, influence PINC behavior. When considered in isolation, we find that corporate rules, as top management’s main instrument to guide employee behavior, decrease employee PINC behavior. However, this effect is negatively influenced by the employees’ immediate work environment when employees are expected to engage in PINC or when others engage in PINC. In contrast, even though top management places great performance pressure on employees, that by itself does not increase PINC behavior. Overall, our study informs practitioners and researchers about whether and how the four determinants increase or decrease employees’ PINC behavior, which is important to comprehend triggers and to counteract such misconduct.

Conselho Nacional de Desenvolvimento Científico e Tecnológico Bovine herpesvirus type 5 (BHV-5) is a major etiologic agent of meningo-encephalitis in cattle and establishes lifelong latent infection in trigeminal ganglia and also in other areas of the brain. Colonization of deep areas of the brain with latent viral DNA may have important implications on the pathogenesis of BHV-5 neurological infection upon reactivation. In this study, we investigated the distribution of BHV-5 DNA in the brain of experimentally infected rabbits a laboratory model for BHV-5 infection - prior and subsequently to virus reactivation, using a nested PCR for the glycoprotein B gene. Eighteen rabbits inoculated intranasally with a Brazilian BHV-5 isolate were divided in two groups: group A rabbits (n=8) were euthanized 60 days post-inoculation (pi) for tissue collection; group B (n=7) were submitted to dexamethasone administration at day 60pi for reactivation of latent infection and euthanized for tissue collection 60 days later. To compare, we used two groups of BHV-1-infected rabbits (C, n=3 and D, n=3), each group being submitted to one of the above treatments, respectively. In group A rabbits, viral DNA was consistently detected in trigeminal ganglia (8/8), frequently in cerebellum (6/8), anterior cortex, pons medulla (3/8) and only occasionally in thalamus (2/8), ventro-lateral, dorsal and posterior cortices, midbrain (1/8). In rabbits previously submitted to virus reactivation, viral DNA showed a broader distribution, being detected more frequently besides the TG (7/7) - in ventro-lateral (6/7) and posterior cortices (5/7), pons-medulla and thalamus (4/7) and midbrain (3/7). In contrast, rabbits inoculated with BHV-1 harbored latent viral DNA in a few tissues in addition to TG and did not show significant changes in distribution of viral DNA post-reactivation. These results demonstrate that latency by BHV-5 DNA and not BHV-1 DNA may be established in several areas of the brain of experimentally infected rabbits. Further, dexamethasone-induced virus reactivation is followed by a wider distribution of latent viral DNA, probably due to virus dissemination from the original sites. Thus, it is reasonable to speculate that reactivation of latent infection from deep areas of the brain may contribute to the recrudescence of neurological disease frequently observed upon reactivation of latent BHV-5 infection. O herpesvírus bovino tipo 5 (BHV-5) é um importante agente etiológico de meningoencefalite em bovinos e estabelece infecção latente em seus hospedeiros, principalmente nos gânglios dos nervos sensoriais. No entanto, a colonização de áreas profundas do cérebro com DNA viral pode ter implicações importantes na patogenia da infecção pelo BHV-5 após a reativação da infecção latente. Neste estudo, foi investigada a distribuição do DNA do BHV-5 no cérebro de coelhos infectados experimentalmente, antes e após a reativação da infecção latente, utilizando um nested-PCR para uma seqüência do gene da glicoproteína B. Dezoito coelhos infectados pela via intranasal com um isolado brasileiro de BHV-5 foram divididos em dois grupos: coelhos do grupo A (n=8) foram submetidos a eutanásia 60 dias pós inoculação (pi) para a coleta de tecidos; animais do grupo B (n=7) foram submetidos a administração de dexametasona no dia 60 pi. Para comparação foram utilizados dois grupos de coelhos inoculados com o BHV-1 (C, n=3 e D, n=3), cada grupo sendo submetido a um dos tratamentos acima, respectivamente. Nos animais do grupo A, o DNA viral foi consistentemente detectado no gânglio trigêmeo (8/8), freqüentemente no cerebelo (6/8), com menor freqüência na ponte e córtex anterior (3/8) e ocasionalmente no tálamo (2/8) e córtices ventro-lateral, dorso-lateral e posterior, pedúnculo cerebral e tálamo (1/8). Nos animais previamente submetidos à reativação, a distribuição do DNA viral foi mais ampla, sendo detectado mais consistentemente, além do TG (7/7), nos córtices ventro-lateral (6/7), e posterior (5/7), ponte e tálamo (4/7) e menos freqüentemente no pedúnculo cerebral (3/7). Em contrapartida, os animais inoculados com o BHV-1 apresentaram o DNA viral latente em poucos tecidos além do TG, e não apresentaram alterações importantes na distribuição do DNA viral após a reativação. Esses resultados demonstraram que o DNA latente do BHV-5 - e não o do BHV-1 - pode estar presente em várias áreas do cérebro de coelhos infectados experimentalmente. A reativação induzida por dexametasona resulta na reativação viral e provavelmente na colonização de áreas adicionais no cérebro. Com base nesses resultados pode-se especular que a reativação do DNA viral latente nestas regiões pode contribuir para a recrudescência de doença neurológica observada após a reativação da infecção latente pelo BHV-5.