([SHULHQFH'HSHQGHQW$IIHFWLYH/HDUQLQJDQG
5LVNIRU3V\FKRSDWKRORJ\LQ&KLOGUHQ
6(7+'32//$.
'HSDUWPHQWRI3V\FKRORJ\8QLYHUVLW\RI:LVFRQVLQ0DGLVRQ
:LVFRQVLQ86$
$%675$&7 7KH LQIOXHQFH RI FKLOGKRRG DIIHFWLYH H[SHULHQFHV DFURVV GHYHORS
PHQW PD\ EH XQGHUVWRRG LQ WHUPV RI SUHSDUHGQHVV WR OHDUQ DERXW HPRWLRQ
FRPELQHGZLWKJHQHUDOLPPDWXULW\DQGQHXURSODVWLFLW\RISHUFHSWXDOV\VWHPV
(DUO\LQGHYHORSPHQWSURFHVVLQJUHVRXUFHVDUHUHODWLYHO\LPPDWXUHDQGOLPLW
HGLQFDSDFLW\WKHUHE\FRQVWUDLQLQJKRZPXFKLQIRUPDWLRQWKH\RXQJFKLOGFDQ
DEVRUE%XWLWLVFOHDUWKDWOHDUQLQJDERXWHPRWLRQVSURFHHGVVZLIWO\LQQHDUO\
DOOFKLOGUHQVXJJHVWLQJELRORJLFDOSUHSDUHGQHVVWRWUDFNDVVRFLDWLRQVEHWZHHQ
FHUWDLQVWLPXOLDQGRXWFRPHV,WLVSURSRVHGKHUHWKDWOLPLWHGSURFHVVLQJFDSDF
LW\LQWDQGHPZLWKGLVSRVLWLRQVWRILOWHURUVHOHFWNH\SULYLOHJHGVWLPXOLLQWKH
HQYLURQPHQWIDFLOLWDWHVDGDSWLYHUDSLGDIIHFWLYHOHDUQLQJ7KHGHYHORSPHQWDO
RUJDQL]DWLRQRIDIIHFWLYHV\VWHPVLVFRQWLQJHQWXSRQWKRVHIHDWXUHVRILQSXWWKDW
DUHPRVWOHDUQDEOHVXFKDVVLJQDOVWKDWDUHSDUWLFXODUO\VDOLHQWIUHTXHQWRU
SUHGLFWDEOH7KHUHIRUHSODVWLFLW\FRQIHUVULVNIRUPDODGDSWDWLRQLQWKDWFKLO
GUHQ¶V OHDUQLQJ ZLOO EH EDVHG XSRQ WKHVH SURPLQHQW IHDWXUHV RI WKH HQYLURQ
PHQWKRZHYHUDEHUUDQW
.(<:25'6FKLOGDEXVHJHQHVSV\FKRSDWKRORJ\DIIHFWLYHOHDUQLQJPDOWUHDW
PHQWH[SHULHQFHSODVWLFLW\
,1752'8&7,21
7KH UHFHQW SXEOLFDWLRQ RI VHYHUDO VFLHQWLILF SDSHUV DQG SRSXODU SUHVV ERRNV
VXFKDV7KH1XUWXUH$VVXPSWLRQ7KH%ODQN6ODWHDQG(QRXJKVXJJHVWWKDWWKH
DJHROGQDWXUH±QXUWXUHGHEDWHLVRYHU2QHPLJKWJDWKHUIURPWKHWKHVHVDGYDQFHGLQ
WKHVHH[SRVLWLRQVWKDWWKHUHLVOLWWOHTXHVWLRQDERXWWKHGHJUHHWRZKLFKSDUHQWVDQG
HDUO\UHDULQJHQYLURQPHQWVLQIOXHQFHUXGLPHQWDU\DVSHFWVRIFKLOGUHQ¶VGHYHORSPHQW
EH\RQGSURYLGLQJFKLOGUHQ¶VJHQHWLFPDNHXS5DWKHUWKDQEHLQJUHVROYHGKRZHYHU
WKHLVVXHDERXWELRORJ\DQGH[SHULHQFHLVXQGHUJRLQJDUHIRUPXODWLRQWKDWVXJJHVWV
WKHWRSLFLVMXVWJHWWLQJVWDUWHG²DJDLQ,QWKHSDVWIHZPRQWKVFRPSHOOLQJDQGVR
SKLVWLFDWHGH[DPSOHVRIQDWXUH±QXUWXUHRUJHQH±HQYLURQPHQWLQWHUDFWLRQVKDYHDS
SHDUHGLQWKHOLWHUDWXUH±7KHVHUHSRUWVKLJKOLJKWWKHFRPSOH[G\QDPLFLQWHUSOD\
EHWZHHQ ELRORJ\ DQG H[SHULHQFH LQ VKDSLQJ FKLOGUHQ¶V EHKDYLRU $V VFLHQWLVWV DG
YDQFHRXUXQGHUVWDQGLQJKRZELRORJLFDOIDFWRUVLQFOXGLQJJHQHWLFSRO\PRUSKLVPV
YDULDWLRQVLQQHXURSK\VLRORJLFDOSURFHVVHVDQGQHXURDQDWRPLFDOOHVLRQVDUHDVVRFL
DWHGZLWKPHQWDOKHDOWKSUREOHPVFRPSHOOLQJTXHVWLRQVHPHUJHDERXWWKHSURFHVVHV
$GGUHVVIRUFRUUHVSRQGHQFH6HWK'3ROODN3K''HSDUWPHQWRI3V\FKRORJ\8QLYHUVLW\RI
:LVFRQVLQ DW 0DGLVRQ :HVW -RKQVRQ 6WUHHW 0DGLVRQ :, 9RLFH ID[
VSROODN#ZLVFHGX
$QQ1<$FDG6FL±Â‹1HZ<RUN$FDGHP\RI6FLHQFHV
GRLDQQDOV
32//$.36<&+23$7+2/2*<5,6.,1&+,/'5(1
WKURXJK ZKLFK H[SHULHQFH VKDSHV ELRORJ\ QHFHVVLWDWLQJ D PRUH ILQHJUDLQHG DS
SURDFKWRH[SODLQLQJPHFKDQLVPVRIFKDQJHDQGGHYHORSPHQW
*(1(6$6$0(&+$1,602)(;3(5,(1&(
7KHSKHQRPHQRQRIFKLOGPDOWUHDWPHQWLVDWWKHFHQWHURIGHEDWHVDERXWWKHUHOD
WLYHUROHVRIFKLOGUHQ¶VHDUO\OHDUQLQJHQYLURQPHQWVSDUHQWV¶JHQHWLFDOO\LQIOXHQFHG
FKDUDFWHULVWLFVFKLOGUHQ¶VJHQHWLFDOO\LQIOXHQFHGFKDUDFWHULVWLFVDQGULVNIRUWKHGH
YHORSPHQWRIPDODGDSWLYHEHKDYLRUV0\VWXGHQWVDQG,H[DPLQHWKHHIIHFWVRIFKLOG
PDOWUHDWPHQWIURPDGHYHORSPHQWDOSHUVSHFWLYHYLHZLQJFKLOGDEXVHDVDPDQLSXOD
WLRQ RI VSHFLHVW\SLFDO H[SHULHQFH WKDW PD\ VKHG OLJKW RQ WKH UROH RI H[SHULHQFH
GHSHQGHQWSURFHVVHVLQWKHHPHUJHQFHRISV\FKRSDWKRORJ\:KLOHHPSKDVL]LQJWKH
UROHRIDIIHFWLYHOHDUQLQJLQWKHGHYHORSPHQWRISV\FKRSDWKRORJ\ZHDOVRUHFRJQL]H
WKDWHYHQSRZHUIXOOHDUQHUVDUHQRWEODQNVODWHV8OWLPDWHO\DIIHFWLYHOHDUQLQJOLNH
OHDUQLQJLQRWKHUFRPSOH[V\VWHPVPXVWEHH[SODLQHGE\DFRPELQDWLRQRIELRORJLFDO
SUHGLVSRVLWLRQ DQG H[SHULHQWLDO LQSXW 2XU K\SRWKHVLV LV WKDW D SUHGLVSRVLWLRQ IRU
OHDUQLQJDERXWHPRWLRQVDFKLHYHGWKURXJKJHQHUDOSHUFHSWXDOOHDUQLQJPHFKDQLVPV
PD\H[SODLQWKHGHYHORSPHQWRIEHKDYLRUSUREOHPVLQPDOWUHDWHGFKLOGUHQ
*HQHVDQGDQDWRPLFDOVWUXFWXUHVLQDQGRIWKHPVHOYHVVWULNHXVDVYHU\LPSRUWDQW
EXW QRW YHU\ SURIRXQG )URP D GHYHORSPHQWDO SHUVSHFWLYH RQ SV\FKRSDWKRORJ\
JHQHVEHFRPHLPSRUWDQWZKHQWDNHQWRJHWKHUZLWKWKHFRQWH[WLQZKLFKWKH\DUHH[
SUHVVHGDQDWRP\EHFRPHVLPSRUWDQWLQWHUPVRIKRZDQGXQGHUZKDWFLUFXPVWDQFHV
LWLVRULVQRWXVHG7RIXOO\XQGHUVWDQGWKHRQWRJHQHVLVRIPHQWDOKHDOWKSUREOHPV
LQFKLOGUHQLWLVLPSRUWDQWIRUSV\FKRSDWKRORJLVWVWRIRFXVQRWRQO\RQZKDWLVLQFKLO
GUHQ¶VKHDGVEXWRQZKDWWKHLUKHDGVDUHLQWKHJLYHDQGWDNHZLWKWKHZLGHZHOWHU
RIVLJQDOVDQGVHQVRU\LQSXWUHFHLYHGE\WKHGHYHORSLQJEUDLQIURPWKHRXWVLGHZRUOG
GXULQJERWKIHWDODQGSRVWQDWDOGHYHORSPHQW6XUSULVLQJO\OLWWOHUHVHDUFKKDVIRFXVHG
RQ WKH PHFKDQLVPV XQGHUO\LQJ WKH HPHUJHQFH RI HPRWLRQDO SURFHVVHV LQ FKLOGUHQ
DQGWKHQHXURGHYHORSPHQWDOSURFHVVHVLQYROYHGLQWKHRUJDQL]DWLRQRIDIIHFWLYHV\V
WHPVUHPDLQODUJHO\XQNQRZQ7KLVGHDUWKRINQRZOHGJHLVDQH[LJHQWSUREOHPLQGH
YHORSPHQWDO SV\FKRSDWKRORJ\ LQ ZKLFK WKH FUHDWLRQ RI HIIHFWLYH WDLORUHG
LQWHUYHQWLRQVIRUFKLOGUHQVXIIHULQJIURPHPRWLRQDOGLIILFXOWLHVUHTXLUHVDFOHDUXQ
GHUVWDQGLQJRIWKHUHJXODWRU\SURFHVVHVWKDWKDYHJRQHDZU\
2XUSHUVSHFWLYHLVQRWLQFRQIOLFWZLWKEXWFRPSOHPHQWDU\WRSV\FKLDWULFPROHF
XODUJHQHWLFV&RQFHSWXDOSUREOHPVDERXQGLQDWWHPSWVWRGLVHQWDQJOHJHQHWLFDQG
HQYLURQPHQWDOLQIOXHQFHVLQVWXGLHVRIELRORJLFDOO\UHODWHGSDUHQWVDQGFKLOGUHQ)RU
H[DPSOHHYHQLIVRPHKHULWDEOHDVVRFLDWLRQEHWZHHQFKLOGPDOWUHDWPHQWDQGWKHGH
YHORSPHQWRISV\FKRSDWKRORJ\H[LVWVLWLVQRWFOHDUZKDWLVEHLQJJHQHWLFDOO\WUDQV
PLWWHG0LJKWDEXVHGFKLOGUHQEHERXQGWRGHYHORSSUREOHPVHYHQLIWKH\ZHUHQRW
DEXVHG"+DYHWKHVHFKLOGUHQLQKHULWHGFKDUDFWHULVWLFVWKDW PDNHWKHP OLNHO\ WREH
DEXVHGLQWKHILUVWSODFH"%RWKRIWKHVHDOWHUQDWLYHVVHHPXQOLNHO\%HKDYLRUDOJHQHW
LFDQDO\VHVKDYHUXOHGRXWWKHSRVVLELOLW\WKDWKHULWDEOHFKDUDFWHULVWLFVRIWKHFKLOG
HYRNHSK\VLFDOPDOWUHDWPHQW7RWKHGHJUHHWKDWWKHVHTXHODHRIFKLOGDEXVHDUHJH
QHWLFDOO\GHWHUPLQHGLWDSSHDUVWKDWZKDWDUHKHULWDEOHDUHWKHFKDUDFWHULVWLFVRIWKH
SDUHQWWKDWDUHWUDQVPLWWHGWRFKLOGUHQYLDIDPLO\HQYLURQPHQW:KDWFKLOGUHQLQ
KHULWDUHWR[LFHQYLURQPHQWVZKLFKKLJKOLJKWVWKHQHHGIRUEHWWHUXQGHUVWDQGLQJRI
KRZFKLOGUHQDUHLQIOXHQFHGE\VXFKHDUO\DYHUVLYHH[SHULHQFHV
$11$/61(:<25.$&$'(0<2)6&,(1&(6
7KH PDOWUHDWPHQW RI FKLOGUHQ LV D KRUULILF SV\FKRVRFLDO SKHQRPHQRQ LQ ZKLFK
\RXQJLQIDQWVDQGFKLOGUHQGRQRWUHFHLYHWKHSURWHFWLRQFDUHQXUWXUDQFHDQGLQWHU
DFWLRQVWKDWDUHW\SLFDORIKRZKXPDQVDQGPDQ\RWKHUVSHFLHVFDUHIRUWKH\RXQJ
0RUHWKDQPLOOLRQFKLOGUHQD\HDUDUHYLFWLPVRIFKLOGPDOWUHDWPHQWLQWKH8QLWHG
6WDWHV3HUKDSVEHFDXVHLWLVERWKREYLRXVDQGKDVEHHQGHPRQVWUDWHGWKDWFKLOGUHQ
ZKRH[SHULHQFHVXFKVHYHUHSHUWXUEDWLRQVLQFDUHDUHDWYHU\KLJKULVNIRUWKHHPHU
JHQFHRIEHKDYLRUDOSUREOHPVODWHULQOLIHWKHSUHFLVHPHFKDQLVPVOLQNLQJWKHH[
SHULHQFHRIPDOWUHDWPHQWZLWKWKHGHYHORSPHQWRISV\FKRSDWKRORJ\DUHLQIUHTXHQWO\
H[DPLQHGDQGODUJHO\XQNQRZQ%XWWKLVLVDFULWLFDOTXHVWLRQ+RZLVLWWKDWVXFK
DGYHUVLW\HDUO\LQOLIHFDQOHDGWRDUDQJHRISUREOHPVLQFOXGLQJGHSUHVVLRQDJJUHV
VLRQVXEVWDQFHDEXVHKHDOWKSUREOHPVDQGJHQHUDOXQKDSSLQHVV\HDUVDIWHUDEXVH
KDVHQGHG"7KHHPRWLRQDOGHYHORSPHQWRIPDOWUHDWHGFKLOGUHQSURYLGHVDFRPSHO
OLQJFOXHRIZKHUHWREHJLQORRNLQJ0DOWUHDWHGFKLOGUHQRIWHQHYLQFHXQXVXDOSDW
WHUQV LQ WKHLU DELOLWLHV WR UHFRJQL]H H[SUHVV DQG UHJXODWH HPRWLRQDO VWDWHV±
3K\VLFDOO\ DEXVHG FKLOGUHQ RIWHQ GLVSOD\ ERWK ZLWKGUDZDO DQG DJJUHVVLRQ±
UHDGLO\DVVLPLODWHDQGUHPHPEHUFXHVUHODWHGWRDJJUHVVLRQDQGWHQGWRDWWULEXWH
KRVWLOLW\WRRWKHUV7KHVHSURFHVVHVOHDGWRSRRUO\UHJXODWHGDQGVLWXDWLRQDOO\LQDS
SURSULDWHDIIHFWDQGEHKDYLRU2XUUHVHDUFKSURJUDPKDVEHHQPRWLYDWHGE\WKH
VFDUFLW\RILQYHVWLJDWLRQVWDUJHWLQJVSHFLILFSK\VLRORJLFDOSHUFHSWXDORUFRJQLWLYH
SURFHVVHV WKDW PD\ DFW DV SUR[LPDO GHWHUPLQDQWV RI VXFK DIIHFWLYH UHJXODWRU\
SUREOHPV
/($51,1*)520$1'6(16,7,9,7<72
(027,21$/(;3(5,(1&(
:HSURSRVHWKDWH[SRVXUHWRPDOWUHDWLQJHQYLURQPHQWVDIIHFWVFKLOGUHQ¶VSURFHVV
LQJRIHPRWLRQDOLQIRUPDWLRQDQGWKDWWKHVHHIIHFWVPD\H[SODLQFKLOGUHQ¶VLQWHUSHU
VRQDO GLIILFXOWLHV DFURVV VLWXDWLRQDO FRQWH[WV DQG GHYHORSPHQWDO HSRFKV 7KLV
LQIOXHQFHRIHDUO\H[SHULHQFHVPD\EHXQGHUVWRRGLQWHUPVRIWKHJHQHUDOLPPDWXULW\
DQGQHXURSODVWLFLW\RIVHQVRU\DQGSHUFHSWXDOV\VWHPV2QWKLVYLHZPDWXUD
WLRQDOOLPLWDWLRQVRQSURFHVVLQJUHVRXUFHVDLGFKLOGUHQ¶VOHDUQLQJDERXWHPRWLRQE\
UHTXLULQJWKHFKLOGWRILOWHULQIRUPDWLRQIURPWKHHQYLURQPHQW7KLVOHDYHVWKHGHYHO
RSPHQWRIHPRWLRQV\VWHPVFRQWLQJHQWRQWKHPRVWVDOLHQWDVSHFWVRIWKHFKLOG¶VH[
SHULHQFH KRZHYHU DEHUUDQW 2QH SRVVLEOH H[SHULHQFHGHSHQGHQW PHFKDQLVP IRU
WKHVHGHYHORSPHQWDOHIIHFWVLVWKDWLQIDQWV¶ELRORJLFDOSUHSDUHGQHVVIRUHPRWLRQLQ
FOXGHVDJHQHUDOSHUFHSWXDOPHFKDQLVPWKDWEHFRPHVWXQHGWRFRPELQDWLRQVRIVLJ
QDOV ZKLFK WKURXJK H[SHULHQFH FRPELQH WR IRUP DIIHFWLYH QHXUDO FLUFXLWU\ DQG
FDWHJRULHV6XFKDOHDUQLQJPHFKDQLVPPLJKWLQFOXGHWKHDELOLW\WRSDUVHVHQVRU\LQ
SXWVLQWRPHDQLQJIXOXQLWVDQGWRWUDFNWKHUHJXODULW\SUHGLFWLYHQHVVDQGWHPSRUDO
V\QFKURQ\RIHPRWLRQDOLQIRUPDWLRQ6LPLODUOHDUQLQJPHFKDQLVPVKDYHEHHQSUR
SRVHGIRURWKHUFRJQLWLYHDELOLWLHVVXFKDVFURVVPRGDOPDWFKLQJSKRQHWLFGLVFULP
LQDWLRQDQGZRUGVHJPHQWDWLRQ±
'HYHORSPHQWDODIIHFWLYHOHDUQLQJSUREOHPVPD\DULVHEHFDXVHWKHHPRWLRQDOVLJ
QDOVWKHPDOWUHDWHGFKLOGUHFHLYHVFDQEHGLVSURSRUWLRQDWHO\FRPSOLFDWHGLQFRQVLV
WHQWSRRUO\FRQYH\HGGLVWUHVVLQJOLPLWHGWKUHDWHQLQJRUH[FHVVLYH2USURFHVVLQJ
GLIIHUHQFHVPD\DULVHVLPSO\EHFDXVHDEXVHGFKLOGUHQOHDUQILUVWDQGIRUHPRVWWR
WUDFNVLJQVRIWKUHDWUHIOHFWLQJDQDGDSWLYHDELOLW\WRHIIHFWLYHO\SDLUDVLJQDOZLWKD
32//$.36<&+23$7+2/2*<5,6.,1&+,/'5(1
PHDQLQJIXORXWFRPH,QDEXVLYHHQYLURQPHQWVGLVSOD\VRIDQJHUDUHOLNHO\WREHD
SDUWLFXODUO\VDOLHQWFXHZLWKDOHDUQHGDVVRFLDWLRQWRWKUHDWRUKDUPIRUDEXVHGFKLO
GUHQGLVSURSRUWLRQDWHO\UHFUXLWLQJWKHVHFKLOGUHQ¶VDWWHQWLRQDOUHVRXUFHV1HXUREH
KDYLRUDO SODVWLFLW\ RI GHYHORSLQJ FRJQLWLYH DQG SHUFHSWXDO V\VWHPV ILJXUHV
SURPLQHQWO\LQWKLVDFFRXQW0DWXUHDGXOWFRPSXWDWLRQDOQHWZRUNVFDQLJQRUHRUHI
IHFWLYHO\ILOWHUQRLVHEXWLQDGHYHORSLQJQHWZRUNVXFKQRLVHEHFRPHVSDUWRIWKH
EDVLVRIGHYHORSPHQW)RUH[DPSOHDWUDXPDWLFUHDFWLRQPD\RFFXUZKHQDQDGXOWLV
DVVDXOWHGEHFDXVHWKHLQGLYLGXDO¶VH[SHFWDWLRQVKDYHEHHQYLRODWHG%XWIRUDFKLOG
H[SRVHG WR FKURQLF PDOWUHDWPHQW YLROHQW H[SHULHQFHV PD\ IRUP WKH EDVLV RI WKH
FKLOG¶VH[SHFWDWLRQVRIRWKHUV,UUHVSHFWLYHRIWKHLQLWLDOVWDWHRIWKHRUJDQLVPHPR
WLRQDO GHYHORSPHQW LV FRQWLQJHQW RQ WKH QDWXUH RI WKH LQSXW RU H[SHULHQFHV ZKLFK
FRQIURQWWKHFKLOG([SHULHQFHPDWWHUV
7RWHVWDQGUHILQHRXUK\SRWKHVLVZHIRFXVRQWKHSUREOHPRIHPRWLRQUHFRJQL
WLRQKRZGRVLJQDOVUHFHLYHGIURPWKHHQYLURQPHQWDFTXLUHWKHVDOLHQFHWKDWPDNHV
WKHP³HPRWLRQDO´DQGKRZGRFKLOGUHQSURFHVVVXFKVDOLHQWFXHV":HKLJKOLJKWWZR
FDQGLGDWHGHYHORSPHQWDOPHFKDQLVPVWKDWPD\EHDIIHFWHGE\HDUO\H[SHULHQFHSHU
FHSWXDOVHQVLWLYLW\DQGDWWHQWLRQDOFRQWURO,QRQHRIRXUHDUOLHVWVWXGLHVZHIRXQG
WKDWSK\VLFDOO\DEXVHGFKLOGUHQSHUFHLYHGDQJU\IDFHVDVKLJKO\VDOLHQWUHODWLYHWR
RWKHUHPRWLRQV$VLJQLILFDQWDVSHFWRIWKLVVWXG\ZDVWKDWZHZHUHDEOHWRFRQWUDVW
FKLOGUHQZLWKGLIIHUHQWW\SHVRIPDOWUHDWPHQWH[SHULHQFH3K\VLFDOO\DEXVHGFKLOGUHQ
KDGH[SHULHQFHGDEXVHE\FRPPLVVLRQ²WKH\ZHUHGLUHFWO\LQMXUHGE\DSDUHQW,Q
FRQWUDVWQHJOHFWHGFKLOGUHQH[SHULHQFHGDEXVHE\RPLVVLRQ²ODFNRIFDUHDQGUH
VSRQVLYHQHVVIURPSDUHQWV1HJOHFWHGFKLOGUHQZKRSXUSRUWHGO\GLGQRWUHFHLYHDG
HTXDWH VFDIIROGLQJ WR PDVWHU GHFRGLQJ RI FRPPXQLFDWLYH VLJQDOV KDG GLIILFXOW\
GLIIHUHQWLDWLQJIDFLDOH[SUHVVLRQVRIHPRWLRQ5DWKHUWKDQVKRZLQJJOREDOGHILFLWVLQ
SHUIRUPDQFHSK\VLFDOO\DEXVHGFKLOGUHQSHUIRUPHGZHOOHVSHFLDOO\ZKHQGLIIHUHQ
WLDWLQJDQJU\IDFLDOH[SUHVVLRQV7KHVHGDWDVXJJHVWWKDWVSHFLILFNLQGVRIHPRWLRQDO
H[SHULHQFHVUDWKHUWKDQVLPSO\WKHSUHVHQFHRIVWUHVVRUPDOWUHDWPHQWGLIIHUHQWLDOO\
DIIHFWFKLOGUHQ¶VHPRWLRQDOIXQFWLRQLQJ
%HFDXVHWKHDELOLW\WRDOORFDWHDWWHQWLRQWRHPRWLRQDOFXHVLQWKHHQYLURQPHQWLV
DQLPSRUWDQWIHDWXUHRIDGDSWLYHVHOIUHJXODWLRQZHKDYHXVHGSV\FKRSK\VLRORJL
FDOWHFKQLTXHVWRPHDVXUHFKLOGUHQ¶VVHOHFWLYHDWWHQWLRQDOFRQWUROIRUHPRWLRQDOLQ
IRUPDWLRQ (YHQWUHODWHG SRWHQWLDOV (53V SURYLGH DQ LQGH[ RI FHQWUDO QHUYRXV
V\VWHP&16IXQFWLRQLQJWKRXJKWWRUHIOHFWWKHXQGHUO\LQJQHXUDOSURFHVVLQJRIGLV
FUHWHVWLPXOLHVSHFLDOO\WKRVHLQYROYHGLQDWWHQWLRQDOUHVRXUFHDOORFDWLRQ±2XU
(53VWXGLHVUHYHDOWKDWZKHUHDVQRQPDOWUHDWHGFKLOGUHQDQGDGXOWVUHVSRQGHGXQL
IRUPO\ZKHQDWWHQGLQJWRKDSS\IHDUIXODQGDQJU\IDFHVSK\VLFDOO\DEXVHGFKLOGUHQ
GLVSOD\HGUHODWLYHLQFUHDVHVLQEUDLQHOHFWULFDODFWLYLW\RQO\ZKHQDFWLYHO\VHDUFKLQJ
IRUDQJU\IDFHV$EXVHGFKLOGUHQSHUIRUPHGLGHQWLFDOO\WRFRQWUROVZKHQDWWHQGLQJ
WRRWKHUHPRWLRQDOH[SUHVVLRQVVXJJHVWLQJWKDWDWWHQWLRQDOSURFHVVHVGLUHFWHGWRZDUG
GHWHFWLQJDQJU\FXHVGLVWLQJXLVKPDOWUHDWHGFKLOGUHQ¶VHPRWLRQSURFHVVLQJ
$OWKRXJKLWLVDGDSWLYHIRUVDOLHQWVWLPXOLVXFKDVHPRWLRQVWRHOLFLWDWWHQWLRQVXF
FHVVIXOEHKDYLRUDO UHJXODWLRQ LQFOXGHV VRPHIOH[LELOLW\ DQGFRQWURO RYHU DWWHQWLRQ
6XFKFRQWUROPLJKWLQFOXGHVWUDWHJLFILOWHULQJRUWLPHO\GLVHQJDJHPHQWIURPVWLPXOL
LQWKHHQYLURQPHQW7KHUHIRUHZHEHJDQH[SORULQJWKHSRVVLELOLW\WKDWHDUO\H[SHUL
HQFHVRIDEXVHPD\DIIHFWGHYHORSLQJSHUFHSWXDOV\VWHPVLQSDUWE\VKDSLQJWKHVHQ
VRU\ WKUHVKROG WKDW DQJHUUHODWHG VWLPXOL PXVW SDVV WR UHFUXLW DWWHQWLRQDO IRFXV
3UREOHPVZLWKGLVHQJDJHPHQWZRXOGDOVRVXJJHVWWKDWDEXVHGFKLOGUHQDUHOHVVDEOH
$11$/61(:<25.$&$'(0<2)6&,(1&(6
WRXWLOL]HVWUDWHJLFDWWHQWLRQDOFRQWURORQFHVLJQDOVRILQWHUSHUVRQDOWKUHDWKDYHEHHQ
HQJDJHG5HODWHGO\SUREOHPVGLVHQJDJLQJIURPDQJU\IDFHVPD\DOVREHDIXQFWLRQ
RIWKHGHSWKRISURFHVVLQJRUVWUHQJWKRIHQJDJHPHQWRIWKDWFXH±8VLQJDVHOHF
WLYHDWWHQWLRQSDUDGLJPZHIRXQGWKDWDEXVHGFKLOGUHQGHPRQVWUDWHGDQLQFUHDVHLQ
EUDLQHOHFWULFDODFWLYLW\RQO\ZKHQWKH\ZHUHUHTXLUHGWRGLVHQJDJHWKHLUDWWHQWLRQ
IURPDQJU\IDFHVUHIOHFWLQJLQFUHDVHGDOORFDWLRQRIFRJQLWLYHUHVRXUFHV$QDGGL
WLRQDOILQGLQJIURPWKLVVWXG\ZDVWKDWSK\VLFDOO\DEXVHGFKLOGUHQRULHQWHGUDSLGO\WR
VSDWLDOORFDWLRQVSULPHGE\DQJHU,PSRUWDQWO\DEXVHGDQGQRQPDOWUHDWHGFKLOGUHQ
GLGQRWGLIIHULQRWKHUW\SHVRIWULDOVRULQUHVSRQVHWRRWKHUHPRWLRQVFRQVLVWHQWZLWK
WKH K\SRWKHVLV WKDW SK\VLFDOO\ DEXVHG FKLOGUHQ KDYH D VSHFLILF SUREOHP LQYROYLQJ
SURFHVVLQJRIDQJHUUDWKHUWKDQJHQHUDOLQIRUPDWLRQSURFHVVLQJGHILFLWV
,IDEXVHGFKLOGUHQDUHRYHUDWWHQGLQJWRDQJHUZHPLJKWH[SHFWWRREVHUYHGLIIHU
HQFHVLQKRZWKHVHFKLOGUHQSHUFHLYHDQJU\FXHVIURPWKHHQYLURQPHQW7KHUHIRUH
ZHH[DPLQHGDEXVHGFKLOGUHQ¶VSHUFHSWLRQRIDQJHU&DWHJRULFDOSHUFHSWLRQRFFXUV
ZKHQSHUFHSWXDOPHFKDQLVPVHQKDQFHGLIIHUHQFHVEHWZHHQFDWHJRULHVDWWKHH[SHQVH
RIRXUSHUFHSWLRQRILQFUHPHQWDOFKDQJHVZLWKLQDFDWHJRU\3HUFHLYLQJLQWHUPVRI
FDWHJRULHVLVDGDSWLYHLQWKDWLWDOORZVDQREVHUYHUWRHIILFLHQWO\DVVHVVFKDQJHVEH
WZHHQFDWHJRULHVWKDWDUHHQYLURQPHQWDOO\LPSRUWDQWHJWRVHHWKDWDWUDIILFOLJKW
KDVFKDQJHGIURPJUHHQWR\HOORZDWWKHFRVWRIQRWLFLQJVXEWOHFKDQJHVLQDVWLPX
OXV WKDW DUH QRW LPSRUWDQW HJ VXFK DV YDULDWLRQV LQ VKDGHV RI JUHHQV RU \HOORZV
DFURVVLQGLYLGXDOWUDIILFOLJKWV&KLOGUHQSHUIRUPHGDIDFLDOGLVFULPLQDWLRQWDVNWKDW
UHTXLUHGWKHPWRGLVWLQJXLVKIDFHVWKDWKDGEHHQPRUSKHGWRSURGXFHDFRQWLQXXPRQ
ZKLFKHDFKIDFHGLIIHUHGE\LQVLJQDOLQWHQVLW\7RFUHDWHFRQWLQXDRIIDFLDOH[
SUHVVLRQVRIDIIHFWZHXVHGDWZRGLPHQVLRQDOPRUSKLQJV\VWHPWRJHQHUDWHVWLPXOL
WKDW VSDQQHG IRXU HPRWLRQDO FDWHJRULHV²KDSSLQHVV DQJHU IHDU DQG VDGQHVV :H
IRXQGWKDWWKHH[SHULHQFHRIDEXVHZDVDVVRFLDWHGZLWKDFKDQJHLQFKLOGUHQ¶VSHU
FHSWXDOSUHIHUHQFHVDQGDOVRDOWHUHGWKHGLVFULPLQDWLYHDELOLWLHVWKDWLQIOXHQFHKRZ
FKLOGUHQFDWHJRUL]HDQJU\IDFLDOH[SUHVVLRQV<HWDEXVHGFKLOGUHQSHUIRUPHGLGHQ
WLFDOO\WRFRQWUROVZKHQGLVFULPLQDWLQJHPRWLRQVRWKHUWKDQDQJHU7KHVHILQGLQJV
VXJJHVW WKDW ZKDWHYHU SHUFHSWXDO FDSDFLWLHV LQIDQWV SRVVHVV ZKHQ WKH\ HQWHU WKH
ZRUOGWKH\QHHGWRDGMXVWRUWXQHWKHVHPHFKDQLVPVWRSURFHVVVSHFLILFVDOLHQWDV
SHFWVRIWKHLUHQYLURQPHQWV7KXVDIIHFWLYHH[SHULHQFHVDSSHDUWRLQIOXHQFHSHUFHS
WXDOUHSUHVHQWDWLRQVRIEDVLFHPRWLRQV
7RIXUWKHUWHVWWKHK\SRWKHVLVWKDWFKLOGUHQH[SRVHGWRKLJKOHYHOVRIWKUHDWDUHHV
SHFLDOO\VHQVLWLYHWRYLVXDOFXHVRIDQJHUZHH[DPLQHGZKHWKHUWKHVHFKLOGUHQFDQ
UHDGLO\UHODWHYLVXDOFXHVWRUHSUHVHQWDWLRQVRIHPRWLRQV7KHH[DPLQDWLRQRIWKLVLV
VXHUHTXLUHGDWHFKQLTXHWKDWFRXOGFDSWXUHWKHG\QDPLFVRIHPRWLRQUHFRJQLWLRQLQ
FOXGLQJWKHVHTXHQWLDODQGFRQWHQWEDVHGSURFHVVHVRIIHDWXUHGHWHFWLRQLQYROYHGLQ
HPRWLRQUHFRJQLWLRQ7RGRVRZHSUHVHQWHGDIIHFWLYHVWLPXOLWRFKLOGUHQLQFUHPHQ
WDOO\DVVHTXHQFHVRIHPRWLRQDOH[SUHVVLRQVWKDWLQLWLDOO\ZHUHGHJUDGHGDQGDVNHG
SDUWLFLSDQWV WR UHSRUW ZKDW HPRWLRQ WKH\ WKRXJKW WKH\ ZHUH VHHLQJ $V SUHGLFWHG
SK\VLFDOO\DEXVHGFKLOGUHQDFFXUDWHO\LGHQWLILHGIDFLDOGLVSOD\VRIDQJHURQWKHEDVLV
RIOHVVVHQVRU\LQSXWWKDQGLGFRQWUROV
'(9(/230(17%,2/2*<$1'(;3(5,(1&(
:HKDYHSURSRVHGWKDWSUHGLVSRVLWLRQVWRDWWHQGDQGOHDUQDERXWHPRWLRQDOO\VD
OLHQWHYHQWVLQWDQGHPZLWKGHYHORSPHQWDOFRQVWUDLQWVRQSHUFHSWXDOV\VWHPVOHDGV
32//$.36<&+23$7+2/2*<5,6.,1&+,/'5(1
FKLOGUHQLQDEXVLYHFRQWH[WVWRRYHUSURFHVVHQYLURQPHQWDOVLJQDOVDVVRFLDWHGZLWK
KDUP2YHUWLPHVXFKSURFHVVHVPD\OHDGWRFRPSOH[LQIRUPDWLRQSURFHVVLQJDW\S
LFDOLWLHVWKDWFRPSURPLVHKHDOWK\DGDSWLYHIXQFWLRQLQJ3UHOLPLQDU\HYLGHQFHVXS
SRUWLQJWKLVSRVLWLRQLQFOXGHVILQGLQJVWKDWSK\VLFDOO\DEXVHGFKLOGUHQSHUFHLYHDQJU\
IDFHV DV PRUH GLVWLQFWLYH WKDQ RWKHU HPRWLRQV GHYHORS EURDG SHUFHSWXDO FDWHJRU\
ERXQGDULHVIRUDQJHUUHTXLUHOHVVYLVXDOLQIRUPDWLRQWRGHWHFWWKHSUHVHQFHRIDQJU\
IDFLDOH[SUHVVLRQVGHYRWHPRUHDWWHQWLRQDOUHVRXUFHVWRGHWHFWLQJDQJHUDQGGLVSOD\
LQFUHDVHGEUDLQHOHFWULFDODFWLYLW\ZKHQGLVHQJDJLQJDWWHQWLRQIURPDQJHU2XUSV\
FKRSK\VLRORJLFDOVWXGLHVDOVRUHYHDOHDUO\SUHFRJQLWLYHVHQVRU\DFWLYDWLRQRQWKH
SDUW RI PDOWUHDWHG FKLOGUHQ WR DQJU\ IDFHV EDVHG RQ PLQLPDO SHUFHSWXDO LQSXW ,Q
VKRUWEDVHGRQPXOWLPHWKRGVWXGLHVLQFOXGLQJHOHFWURSK\VLRORJLFDOFRJQLWLYHDQG
SHUFHSWXDOWDVNVLWDSSHDUVWKDWHDUO\SHUFHSWXDODQGDWWHQWLRQDOSURFHVVHVGLUHFWHG
WRZDUG DQJU\ FXHV GLVWLQJXLVK PDOWUHDWHG FKLOGUHQ¶V HPRWLRQ SURFHVVLQJ $EXVHG
FKLOGUHQVHHPWRKDYHEHFRPHH[SHUWVDWDQJHUGHWHFWLRQ%XWDWZKDWFRVW":KHUHDV
LW LV DGDSWLYH IRU VDOLHQW HQYLURQPHQWDO VWLPXOL WR HOLFLW DWWHQWLRQ VXFFHVVIXO VHOI
UHJXODWLRQLQFOXGHVIOH[LELOLW\DQGFRQWURORYHUWKHVHSURFHVVHV:HVXVSHFWWKDWLWLV
IDLOXUHRIUHJXODWRU\FDSDFLWLHVWKDWOHDGWRDEXVHGFKLOGUHQ¶VWURXEOHV7KHVHVWXGLHV
VXJJHVWQHZZD\VRIXQGHUVWDQGLQJWKHQHXUDOPHFKDQLVPVWKURXJKZKLFKHDUO\H[
SHULHQFHFRQWULEXWHVWRWKHGHYHORSPHQWRISV\FKRSDWKRORJ\
:KDWHYHUWKHVHTXHQWLDOSDUWLFXODUVRIWKHWKUHHELOOLRQ'1$VXEXQLWVWKDWPDNH
XSDFKLOG¶VJHQRW\SHWKH\DUHPHDQLQJIXORQO\LQWKHFRQWH[WRISKHQRW\SHRID
FKLOG¶VOLIHKLVWRU\DQGH[SHULHQFHV&ULWLFDODQGXQDQVZHUHGTXHVWLRQVFRQFHUQZKDW
H[SHULHQFHVWXUQRQDQGRIIFHUWDLQJHQHVKRZWKRVHJHQHVLQIOXHQFHRXUH[SHULHQF
HVZKDWDUHWKHPHFKDQLVPVWKURXJKZKLFKWKH\DFWLQFRPELQDWLRQZLWK³VWUHVVIXO´
H[SHULHQFHVWRSURGXFHSV\FKRSDWKRORJLFDOV\QGURPHV,QWKHODWWHUFDVHWKHLGHQWL
ILFDWLRQRIDJHQHSRO\PRUSKLVPLQDFOLQLFDOSRSXODWLRQRUHYHQDKHULWDELOLW\
HVWLPDWHFDQQRWDGGUHVVZKDWWKHJHQHLVGRLQJKRZLWFDXVHVRUPDLQWDLQVGLVRU
GHUVKRZLWGLUHFWVRUFRQVWUDLQVDQRUJDQLVP¶VLQWHUDFWLRQZLWKWKHHQYLURQPHQW
ZKHWKHULWKDVWKHVDPHIXQFWLRQHDUO\LQGHYHORSPHQWDVLQDGXOWKRRGDQGZKHWKHU
WKHJHQHIXQFWLRQVVLPLODUO\DFURVVVSHFLHV
,QWKLVUHJDUGQRQKXPDQDQLPDOVWXGLHVLQZKLFKH[SHULHQFHVFDQEHH[SHULPHQ
WDOO\PDQLSXODWHGDUHHVVHQWLDO$OWKRXJKFDUHPXVWEHWDNHQLQWUDQVODWLQJDQLPDO
VWXGLHVWRKXPDQVVHHDUWLFOHVE\1HOVRQ*XQQDUDQG3ORWVN\WKLVYROXPHQRQ
KXPDQDQLPDOPDOWUHDWPHQWVWXGLHVSURYLGHLPSRUWDQWLQIRUPDWLRQWKDWFDQJXLGHIX
WXUHUHVHDUFKLQWRWKHQHXURGHYHORSPHQWDOSURFHVVHVDIIHFWHGE\HDUO\H[SHULHQFH
)RUH[DPSOHWKHRULJLQDOLPSHWXVIRULVRODWHUHDULQJLQUKHVXVPRQNH\VZDVWKHGH
VLUHWRVWXG\OHDUQLQJXQIHWWHUHGE\GLIIHUHQFHVLQPRWKHU±LQIDQWLQWHUDFWLRQ+RZ
HYHUWKHVHVRFLDOO\GHSULYHGDQLPDOVSURYHGGLIILFXOWWRWHVWLQWKHODERUDWRU\EHFDXVH
RIWKHLUKHLJKWHQHGHPRWLRQDOUHDFWLYLW\OHDGLQJUHVHDUFKHUVWRUHGLUHFWWKHLUVWXGLHV
WR HPRWLRQDO SURFHVVHV DQG EHKDYLRUDO UHJXODWLRQ (DUO\ H[SODQDWLRQV IRU WKHVH
HPRWLRQDO HIIHFWV EDVHG RQ URGHQWV ILUVW LPSOLFDWHG WKH K\SRWKDODPLF±SLWXLWDU\±
DGUHQRFRUWLFDO+3$D[LVDQGLWVOLPELFFRUWLFDOUHJXODWRU\SDWKZD\V5HVHDUFK
ZLWKPRQNH\VVXJJHVWHGWKDWHDUO\H[SHULHQFHDIIHFWVGHYHORSPHQWRIWKHSDULHWDO
DQGSUHIURQWDOFRUWLFHVDVZHOODVWKHOLPELFFRUWLFDOSDWKZD\VLQYROYHGLQUHJXODW
LQJQHXURHQGRFULQHDQGEHKDYLRUDOUHVSRQVHVWRVWUHVV$OWKRXJKFRPSOHPHQWD
U\ KXPDQ HYLGHQFH LV VSDUVH LW LV NQRZQ WKDW ERWK WKH +3$ DQG V\PSDWKHWLF
DGUHQRPHGXOODU\ V\VWHPV LQ KXPDQV XQGHUJR UHRUJDQL]DWLRQ GXULQJ SRVWQDWDO OLIH
WKDWDUHDVVRFLDWHGZLWKWKHFKLOG¶VVRFLDOUHODWLRQVKLSV,QDGGLWLRQ((*DFWLYD
$11$/61(:<25.$&$'(0<2)6&,(1&(6
WLRQDQHXUDOFRUUHODWHRIVRFLDOZLWKGUDZDODQGDYRLGDQFHDQG(53DFWLYDWLRQWR
HPRWLRQDFRUUHODWHRIDWWHQWLRQKDYHEHHQDVVRFLDWHGZLWKHDUO\VRFLDOH[SHULHQF
HV $V DQ H[DPSOH LQIDQWV RI GHSUHVVHG PRWKHUV ZKR SURYLGHG XQUHVSRQVLYH
DQGRU LQWUXVLYH FDUH VKRZHG ULJKW IURQWDO ((* DV\PPHWULHV UHIOHFWLQJ LQFUHDVHG
QHJDWLYHDIIHFWLYHVWDWHV7KHVHGDWDVXJJHVWWKDWIXWXUHUHVHDUFKQHHGVWRIRFXVRQ
WKHQHXUDOVXEVWUDWHVRIFKLOGUHQ¶VHPRWLRQDOEHKDYLRUWREHWWHUXQGHUVWDQGWKHHIIHFWV
RIH[SHULHQFHRQGHYHORSPHQW
7KHUROHRIFRQWH[WDQGHQYLURQPHQWLVDFHQWUDOSUREOHPLQXQGHUVWDQGLQJERWK
FKLOGPHQWDOKHDOWKSUREOHPVDQGWKHZD\VWRHIIHFWLYHO\UHPHGLDWHWKRVHSUREOHPV
2QH LVVXHFRQFHUQV WKHGLIILFXOW\ LQ SUHFLVHO\ SDUDPHWL]LQJWKHULFK FRPSOLFDWHG
³ERRPLQJEX]]LQJFRQIXVLRQ´RIVHQVRU\H[SHULHQFHVWRZKLFKKXPDQVDUHH[SRVHG
ZLWKLQPRPHQWVRIELUWK$UHODWHGSUREOHPLQWKHDUHDRIFKLOGSV\FKRSDWKRORJ\LV
WKDWLWLVQRW\HWFOHDUZKLFKDVSHFWVRIWKHHQYLURQPHQWQHHGWREHPHDVXUHG0RUH
RYHUZKHUHDVZHPD\EHDOHWROLQNELRORJLFDOVLPLODULWLHVDFURVVVSHFLHVLWPD\EH
PRUHGLIILFXOWWROLQNDIIHFWLYHH[SHULHQFHVEHWZHHQKXPDQDQGQRQKXPDQDQLPDOV
0DWHUQDOFDUHLQWKHUDWLQYROYHVOLFNLQJDQGDEXVHLQWKHPRQNH\LVRSHUDWLRQDOL]HG
DVELWLQJDQGGUDJJLQJ+RZFDQZHEHVWPRGHOLQQRQKXPDQDQLPDOVSKHQRPHQRQ
VXFKDVEHLQJWKUHDWHQHGFULWLFL]HGDQGEHDWHQZKLOHEHLQJEODPHGDQGRWKHUH[SH
ULHQFHVHQFRXQWHUHGE\DEXVHGFKLOGUHQ"
&21&/86,216
'HVFULSWLRQVRIPHQWDOKHDOWKSUREOHPVREVHUYHGLQGLIIHUHQWSRSXODWLRQVRIFKLO
GUHQFDQQRWDGHTXDWHO\LQIRUPXVDERXWWKHLQLWLDOVWDWHRIWKHRUJDQLVPRUWKHGHYHO
RSPHQWDO SDWKZD\V WKDW OHDG WR SUREOHP EHKDYLRUV 7KH SDWWHUQV RI LQIRUPDWLRQ
SURFHVVLQJZHKDYHGHVFULEHGVXJJHVWWKDWFKLOGUHQZKRH[SHULHQFHGHDUO\DEXVHDUH
SURFHVVLQJFHUWDLQW\SHVRIHPRWLRQDOLQIRUPDWLRQDW\SLFDOO\ZKLOHDSSHDULQJWRSUR
FHVVRWKHUW\SHVRIHPRWLRQDOLQIRUPDWLRQVLPLODUO\WRQRQPDOWUHDWHGFKLOGUHQ7UDF
LQJ WKH GHYHORSPHQWDO RULJLQV RI VXFK FRPSOH[ EHKDYLRU UHTXLUHV D IRFXV RQ
GHYHORSPHQWDO PHFKDQLVPV QRW VWDWLF OHVLRQV RU GHILFLWV 0DODGDSWLYH EHKDYLRUDO
RXWFRPHVHPHUJHIURPFDVFDGLQJHIIHFWVDQGLQWHUDFWLRQVRYHUWLPH7RJHWDWWKHVH
LQWHUDFWLRQVZHQHHGWRFRQVLGHUERWKGHYHORSPHQWDOELRORJ\DQGFRQWH[W6XFKD
SHUVSHFWLYHPXVWWDNHLQWRDFFRXQWDQDWRPLFDOFRQVWUDLQWVRQWKHGHYHORSLQJEUDLQDV
ZHOODVDQXQGHUVWDQGLQJRIZKDWVLWXDWLRQVWKHRUJDQLVPVKDVKDGWRUHVSRQGWR²
QRWRQO\ZKDWLVLQWKHJHQRPHEXWZKDWWKHJHQRPHLVLQ6XFKDIRFXVRQPHFKD
QLVPVRIDGDSWDWLRQDQGPDODGDSWDWLRQKDVLPSRUWDQWLPSOLFDWLRQVIRUWKHGHYHORS
PHQWRIHIIHFWLYHSUHYHQWLRQDQGWUHDWPHQWLQWHUYHQWLRQSURJUDPVIRUDWULVNFKLOGUHQ
DVZHOO7UHDWPHQWVQRWGLUHFWHGDWXQGHUO\LQJPHFKDQLVPVPD\DGGUHVVGLVWDOV\PS
WRPVUDWKHUWKDQWKHURRWVRIPHQWDOLOOQHVVLQFKLOGUHQ
$&.12:/('*0(176
3UHSDUDWLRQRIWKLVPDQXVFULSWZDVVXSSRUWHGE\DJUDQWIURPWKH1DWLRQDO,QVWL
WXWHRI0HQWDO+HDOWK0+WRWKHDXWKRU,WKDQNPHPEHUVRIWKH1,0+(DUO\
32//$.36<&+23$7+2/2*<5,6.,1&+,/'5(1
([SHULHQFH6WUHVV1HXURELRORJ\3UHYHQWLRQ6FLHQFH1HWZRUN0+DQG
WKH 1,0+ $IIHFW 5HJXODWLRQ DQG $GROHVFHQW %UDLQ 0DWXUDWLRQ 1HWZRUN 0+
IRU WKHLU LQVLJKWV DQG GLVFXVVLRQ , DP JUDWHIXO WR P\ JUDGXDWH VWXGHQWV²
6WHSKDQLH 7ROOH\6FKHOO $OLVRQ :LVPHU )ULHV -HVVLFD )ULHGPDQ &UDLJ 6HOLQJHU
&KULVWD 7REHU DQG (OL]DEHWK 6KLUWFOLII²ZKR KDYH FKDOOHQJHG DQG VWLPXODWHG WKH
LGHDVSUHVHQWHGLQWKLVFKDSWHU
5()(5(1&(6
',/$//$ /) ,, *277(60$1 %LRORJLFDO DQG JHQHWLF FRQWULEXWLRQV WR YLR
OHQFH:LGRP¶VXQWROGWDOH3V\FKRO%XOO
785.+(,0(5 ( 7KUHH ODZV RI EHKDYLRU JHQHWLFV DQG ZKDW WKH\ PHDQ &XUU
'LUHFWLRQV3V\FKRO6FL±
+$55,6-7KH1XUWXUH$VVXPSWLRQ:K\&KLOGUHQ7XUQ2XWWKH:D\7KH\'R
)UHH3UHVV1HZ<RUN
3,1.(567KH%ODQN6ODWH7KH0RGHUQ'HQLDORI+XPDQ1DWXUH9LNLQJ3UHVV
1HZ<RUN
0&.,%%(1 % (QRXJK 6WD\LQJ +XPDQ LQ DQ (QJLQHHUHG $JH 7LPHV %RRNV
1HZ<RUN
%(11(77$-.3/(6&+$+(,/6HWDO(DUO\H[SHULHQFHDQGVHURWRQLQWUDQV
SRUWHUJHQHYDULDWLRQLQWHUDFWWRLQIOXHQFHSULPDWH&16IXQFWLRQ0RO3V\FKLDWU\
±
&$63,$-0&&/$<7(02)),77HWDO5ROHRIJHQRW\SHLQWKHF\FOHRIYLR
OHQFHLQPDOWUHDWHGFKLOGUHQ6FLHQFH±
&$63,$.68*'(17(02)),77HWDO,QIOXHQFHRIOLIHVWUHVVRQGHSUHVVLRQ
PRGHUDWLRQE\DSRO\PRUSKLVPLQWKH+77JHQH6FLHQFH±
*5266 & ;; =+8$1* . 67$5. HW DO 6HURWRQLQ$ UHFHSWRU DFWV GXULQJ
GHYHORSPHQW WR HVWDEOLVK QRUPDO DQ[LHW\OLNH EHKDYLRXU LQ WKH DGXOW 1DWXUH ±
-$))((65&$96+$/207(02)),77$7$</253K\VLFDOPDOWUHDWPHQW
YLFWLP WR DQWLVRFLDO FKLOG HYLGHQFH RI DQ HQYLURQPHQWDOO\PHGLDWHG SURFHVV -
$EQRUP3V\FKRO,QSUHVV
.(1'/(5.6&0%8/,.-6,%(5*HWDO&KLOGKRRGVH[XDODEXVHDQGDGXOW
SV\FKLDWULF DQG VXEVWDQFH XVH GLVRUGHUV LQ ZRPHQ DQ HSLGHPLRORJLFDO DQG FRWZLQ
FRQWURODQDO\VLV$UFK*HQ3V\FKLDWU\±
86'(3$570(17 2)+($/7+ $1'+80$16(59,&(67UHQGVRI:HOO%HLQJRI$PHU
LFD¶V&KLOGUHQDQG<RXWK86*RYHUQPHQW3ULQWLQJ2IILFH:DVKLQJWRQ'&
&,&&+(77, ' -7( 0$1/< 2SHUDWLRQDOL]LQJ FKLOG PDOWUHDWPHQW GHYHORS
PHQWDOSURFHVVHVDQGRXWFRPHV'HY3V\FKRSDWKRO±
&$05$6/$65,%25'<-+,//HWDO0DWHUQDOIDFLDOEHKDYLRUDQGWKHUHF
RJQLWLRQ DQG SURGXFWLRQ RI HPRWLRQDO H[SUHVVLRQ E\ PDOWUHDWHG DQG QRQPDOWUHDWHG
FKLOGUHQ'HY3V\FKRO±
&$05$6/$(6$&+6$/7(565,%25'<(PRWLRQXQGHUVWDQGLQJLQPDO
WUHDWHGFKLOGUHQUHFRJQLWLRQRIIDFLDOH[SUHVVLRQVDQGLQWHJUDWLRQZLWKRWKHUHPRWLRQ
FXHV ,Q (PRWLRQDO 'HYHORSPHQW LQ $W\SLFDO &KLOGUHQ 0 /HZLV DQG 0 6XOOLYDQ
(GV±(UOEDXP+LOOVGDOH1-
32//$.6''&,&&+(77,.+25181*$5(('5HFRJQL]LQJHPRWLRQLQ
IDFHVGHYHORSPHQWDOHIIHFWVRIFKLOGDEXVHDQGQHJOHFW'HY3V\FKRO±
+2)0$132/7.,1'&77:(17<0$1$PXOWLPRGDODVVHVVPHQWRIEHKDY
LRUDO DQG FRJQLWLYH GHILFLWV LQ DEXVHG DQG QHJOHFWHG SUHVFKRROHUV &KLOG 'HY ±
-$&2%62156*675$.(53HHUJURXSLQWHUDFWLRQRISK\VLFDOO\DEXVHGFKLO
GUHQ,QW-&KLOG$EXVH1HJOHFW
52*26&+ )$ ' &,&&+(77, - /$%(5 7KH UROH RI FKLOG PDOWUHDWPHQW LQ
HDUO\GHYLDWLRQVLQFRJQLWLYHDQGDIIHFWLYHSURFHVVLQJDELOLWLHVDQGODWHUSHHUUHODWLRQ
VKLSSUREOHPV'HY3V\FKRSDWKRO±
$11$/61(:<25.$&$'(0<2)6&,(1&(6
32//$.6'672//(<6&+(//6HOHFWLYHDWWHQWLRQWRIDFLDOHPRWLRQLQSK\V
LFDOO\DEXVHGFKLOGUHQ-$EQRUP3V\FKRO±
5,('(5 & ' &,&&+(77, 2UJDQL]DWLRQDO SHUVSHFWLYH RQ FRJQLWLYH FRQWURO
IXQFWLRQLQJDQGFRJQLWLYHDIIHFWLYHEDODQFHLQPDOWUHDWHGFKLOGUHQ'HY3V\FKRO
±
:(,66%.$'2'*(-(%$7(6*63(7,76RPHFRQVHTXHQFHVRIHDUO\
KDUVK GLVFLSOLQH FKLOG DJJUHVVLRQ DQG D PDODGDSWLYH VRFLDO LQIRUPDWLRQ SURFHVVLQJ
VW\OH&KLOG'HY±
./,0(6'28*$1%-.,671(53K\VLFDOO\DEXVHGSUHVFKRROHUV¶UHVSRQVHVWR
SHHUV¶GLVWUHVV'HY3V\FKRO±
0$,10&*(25*(5HVSRQVHVRIDEXVHGDQGGLVDGYDQWDJHGWRGGOHUVWRGLV
WUHVVLQDJHPDWHV'HY3V\FKRO±
%-25./81'')7KHUROHRILPPDWXULW\LQKXPDQGHYHORSPHQW3V\FKRO%XOO
±
32//$. 6' ' &,&&+(77, 5 ./250$1 6WUHVV PHPRU\ DQG HPRWLRQ
GHYHORSPHQWDO FRQVLGHUDWLRQV IURP WKH VWXG\ RI FKLOG PDOWUHDWPHQW 'HY 3V\FKR
SDWKRO±
.8+/37KHVSHFLDOPHFKDQLVPVGHEDWHLQVSHHFKUHVHDUFKFDWHJRUL]DWLRQWHVWV
RQDQLPDOVDQGLQIDQWV,Q&DWHJRULFDO3HUFHSWLRQ7KH*URXQGZRUNRI&RJQLWLRQ6
+DUQDG(G±&DPEULGJH8QLYHUVLW\3UHVV1HZ<RUN
.8+/3$10(/7=2))7KHELPRGDOSHUFHSWLRQRIVSHHFKLQLQIDQF\6FL
HQFH±
6$))5$1 -5 51 $6/,1 ( 1(:3257 6WDWLVWLFDO OHDUQLQJ E\ PRQWKROG
LQIDQWV6FLHQFH±
5(6&25/$5$3UHGLFWDELOLW\DQGQXPEHURISDLULQJVLQ3DYORYLDQIHDUFRQGL
WLRQLQJ3V\FKRPHWULF6FL±
3261(5 0, 0. 527+%$57 'HYHORSLQJ PHFKDQLVPV RI VHOIUHJXODWLRQ
'HY3V\FKRSDWKRO±
&2/(60*+0'58**(YHQWUHODWHGEUDLQSRWHQWLDOVDQLQWURGXFWLRQ,Q
(OHFWURSK\VLRORJ\ RI 0LQG (YHQW 5HODWHG %UDLQ 3RWHQWLDOV DQG &RJQLWLRQ 0*+
&ROHVDQG0'5XJJ(GV2[IRUG8QLYHUVLW\3UHVV2[IRUG(QJODQG
.5$0(5$)-63,1.6&DSDFLW\YLHZVRIKXPDQLQIRUPDWLRQSURFHVVLQJ,Q
+DQGERRNRI&RJQLWLYH3V\FKRSK\VLRORJ\&HQWUDODQG$XWRQRPLF1HUYRXV6\VWHP
$SSURDFKHV-5-HQQLQJVDQG0*+&ROHV(GV±:LOH\1HZ<RUN
32/,&+-$.2.&RJQLWLYHDQGELRORJLFDOGHWHUPLQDQWVRI3DQLQWHJUD
WLYHUHYLHZ%LRO3V\FKRO±
32//$. 6' ' &,&&+(77, 5 ./250$1 - %580$*+,0 &RJQLWLYH EUDLQ
HYHQWUHODWHG SRWHQWLDOV DQG HPRWLRQ SURFHVVLQJ LQ PDOWUHDWHG FKLOGUHQ &KLOG 'HY
±
32//$. 6' 5 . /250$1 - %580$*+,0 ' &,&&+(77, 3E UHIOHFWV PDO
WUHDWHG FKLOGUHQ¶V UHDFWLRQV WR IDFLDO GLVSOD\V RI HPRWLRQ 3V\FKRSK\VLRORJ\ ±
'(55<%(55<'0$5(('$Q[LHW\UHODWHGDWWHQWLRQDOELDVHVDQGWKHLUUHJ
XODWLRQE\DWWHQWLRQDOFRQWURO-$EQRUP3V\FKRO±
)2; ( 5 58662 . '87721 $WWHQWLRQDO ELDV IRU WKUHDW HYLGHQFH IRU
GHOD\HGGLVHQJDJHPHQWIURPHPRWLRQDOIDFHV&RJQLWLRQ(PRWLRQ±
/$%(5*( ' $WWHQWLRQDO 3URFHVVLQJ 7KH %UDLQ¶V $UW RI 0LQGIXOQHVV +DUYDUG
8QLYHUVLW\3UHVV&DPEULGJH0$
32//$.6''.,67/(5(DUO\H[SHULHQFHDOWHUVWKHGHYHORSPHQWRIFDWHJRU
LFDO UHSUHVHQWDWLRQV IRU IDFLDO H[SUHVVLRQV RI HPRWLRQ 3URF 1DWO $FDG 6FL 86$
±
32//$.6'36,1+$(IIHFWVRIHDUO\H[SHULHQFHRQFKLOGUHQ¶VUHFRJQLWLRQ
RIIDFLDOGLVSOD\VRIHPRWLRQ'HY3V\FKRO±
+$5/2: +) 0. +$5/2: 6- 6820, )URP WKRXJKW WR WKHUDS\ OHVVRQV
IURPDSULPDWHODERUDWRU\$P6FL±
/,8'-',25,2-&'$<HWDO0DWHUQDOFDUHKLSSRFDPSDOV\QDSWRJHQHVLV
DQGFRJQLWLYHGHYHORSPHQWLQUDWV1DW1HXURVFL±
32//$.36<&+23$7+2/2*<5,6.,1&+,/'5(1
6$1&+(= 00 &2 /$'' 30 3/276.< (DUO\ DGYHUVH H[SHULHQFH DV D
GHYHORSPHQWDOULVNIDFWRUIRUODWHUSV\FKRSDWKRORJ\HYLGHQFHIURPURGHQWDQGSUL
PDWHPRGHOV'HY3V\FKRSDWKRO±
6,(*(/6-6'*,16%(5*35+2)HWDO(IIHFWVRIVRFLDOGHSULYDWLRQLQSUH
SXEHVFHQWUKHVXVPRQNH\VLPPXQRKLVWRFKHPLFDODQDO\VLVRIWKHQHXURILODPHQWSUR
WHLQWULSOHWLQWKHKLSSRFDPSDOIRUPDWLRQ%UDLQ5HV±
*811$505(DUO\DGYHUVLW\DQGWKHGHYHORSPHQWRIVWUHVVUHDFWLYLW\DQGUHJ
XODWLRQ ,Q 7KH (IIHFWV RI $GYHUVLW\ RQ 1HXUREHKDYLRUDO 'HYHORSPHQW 0LQQHVRWD
6\PSRVLDRQ&KLOG3V\FKRORJ\&$1HOVRQ(G±(UOEDXP0DKZDK
1-
'$9,'621 5- $V\PPHWULF EUDLQ IXQFWLRQ DIIHFWLYH VW\OH DQG SV\FKRSDWKRO
RJ\WKHUROHRIHDUO\H[SHULHQFHDQGSODVWLFLW\'HY3V\FKRSDWKRO±
'$:621*6$6+0$12QWKHRULJLQVRIDYXOQHUDELOLW\WRGHSUHVVLRQWKH
LQIOXHQFH RI HDUO\ VRFLDO HQYLURQPHQW RQ WKH GHYHORSPHQW RI SV\FKRELRORJLFDO V\V
WHPVUHODWHGWRULVNIRUDIIHFWLYHGLVRUGHU,Q7KH(IIHFWVRI$GYHUVLW\RQ1HXUREH
KDYLRUDO'HYHORSPHQW0LQQHVRWD6\PSRVLDRQ&KLOG3V\FKRORJ\&$1HOVRQ
(G±(UOEDXP0DKZDK1-
© Copyright 2026 Paperzz