9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

7KHYHVWLJLDOLW\RIWKHKXPDQYHUPLIRUPDSSHQGL[
$PRGHUQUHDSSUDLVDO
&RS\ULJKWE\'RXJODV7KHREDOG3K'
>/DVW8SGDWH$SULO@

7KH YHUPLIRUP DSSHQGDJHLQ ZKLFK VRPH UHFHQW PHGLFDO ZULWHUV KDYH YDLQO\ HQGHDYRXUHG WR
ILQG D XWLOLW\LV WKH VKUXQNHQ UHPDLQGHU RI D ODUJH DQG QRUPDO LQWHVWLQH RI D UHPRWH DQFHVWRU
7KLV LQWHUSUHWDWLRQ RI LW ZRXOG VWDQG HYHQ LI LW ZHUH IRXQG WR KDYH D FHUWDLQ XVH LQ WKH KXPDQ
ERG\9HVWLJLDORUJDQVDUHVRPHWLPHVSUHVVHGLQWRDVHFRQGDU\XVHZKHQWKHLURULJLQDOIXQFWLRQ
KDVEHHQORVW
-RVHSK0F&DEH
7KH6WRU\RI(YROXWLRQS

,WVPDMRULPSRUWDQFHZRXOGDSSHDUWREHILQDQFLDOVXSSRUWRIWKHVXUJLFDOSURIHVVLRQ
$OIUHG6KHUZRRG5RPHUDQG7KRPDV63DUVRQV
7KH9HUWHEUDWH%RG\S

2XWOLQH
,QWURGXFWLRQ
7KHYHUPLIRUPDSSHQGL[EDFNJURXQGLQIRUPDWLRQ
7KHFDHFXP
7KHFDHFDODSH[DQGWKHDSSHQGL[DUHKRPRORJRXV
,QWHUPHGLDWHVEHWZHHQWKHFDHFXPDQGWKHDSSHQGL[
3RVVLEOHIXQFWLRQVRIWKHDSSHQGL[
7KHDSSHQGL[LVDVXERSWLPDOGHVLJQ
(YROXWLRQDU\PLVFRQFHSWLRQVLQWKHPHGLFDO
OLWHUDWXUH
+RZWRGLVSURYHWKDWWKHDSSHQGL[LVDYHVWLJH
&RQFOXVLRQ
$FNQRZOHGJHPHQWV
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO

2WKHU/LQNV
<RXUDSSHQGL[,W
VWKHUHIRUDUHDVRQ
E\.HQ+DPDQG&DUO:LHODQG
$Q RYHUVWDWHG YLHZ IURP WKH
PRVW LQIOXHQWLDO FUHDWLRQLVW
RUJDQL]DWLRQRQWKHIXQFWLRQDQG
SXUSRVHRIWKHKXPDQDSSHQGL[
7KH +XPDQ 9HUPLIRUP $SSHQGL[  D
*HQHUDO 6XUJHRQ
V 5HIOHFWLRQV E\ -
:DUZLFN*ORYHU0'
$QDQWLHYROXWLRQLVWDQGVSHFLDO
FUHDWLRQLVW GRFWRU VSHDNV RQ WKH
SRVVLEOH IXQFWLRQV RI WKH
DSSHQGL[




9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

5HIHUHQFHV

,QWURGXFWLRQ
0DQ\ ELRORJLFDO VWUXFWXUHV FDQ EH FRQVLGHUHG YHVWLJHV JLYHQ RXU FXUUHQW HYROXWLRQDU\ NQRZOHGJH RI
FRPSDUDWLYHDQDWRP\DQGSK\ORJHQHWLFV,QHYROXWLRQDU\GLVFXVVLRQVWKHKXPDQYHUPLIRUPDSSHQGL[LV
RQHRIWKHPRVWFRPPRQO\FLWHGYHVWLJLDOVWUXFWXUHVDQGRQHRIWKHPRVWGLVSXWHG(YROXWLRQDU\YHVWLJHV
DUHWHFKQLFDOO\DQ\GLPLQLVKHGVWUXFWXUHWKDWSUHYLRXVO\KDGDJUHDWHUSK\VLRORJLFDOVLJQLILFDQFHLQDQ
DQFHVWRU WKDQ DW SUHVHQW ,QGHSHQGHQWO\ RI HYROXWLRQDU\ WKHRU\ D YHVWLJH FDQ DOVR EH GHILQHG
W\SRORJLFDOO\ DV D UHGXFHG DQG UXGLPHQWDU\ VWUXFWXUH FRPSDUHG WR WKH VDPH KRPRORJRXV VWUXFWXUH LQ
RWKHU RUJDQLVPV DV RQH WKDW ODFNV WKH FRPSOH[ IXQFWLRQV XVXDOO\ IRXQG IRU WKDW VWUXFWXUH LQ RWKHU
RUJDQLVPVVHHHJ*HRIIUR\
&ODVVLFH[DPSOHVRIYHVWLJHVDUHWKHZLQJVRIWKHRVWULFKDQGWKHH\HVRIEOLQGFDYHILVK7KHVHYHVWLJLDO
VWUXFWXUHVPD\KDYHIXQFWLRQVRIVRPHVRUW1HYHUWKHOHVVZKDWPDWWHUVLVWKDWUXGLPHQWDU\RVWULFKZLQJV
DUH XVHOHVV DV QRUPDO IO\LQJ ZLQJV DQG WKDW UXGLPHQWDU\ FDYHILVK H\HV DUH XVHOHVV DV QRUPDO VLJKWHG
H\HV9HVWLJHV FDQ EH IXQFWLRQDO DQG VSHFXODWLYH DUJXPHQWV DJDLQVW YHVWLJHV EDVHG XSRQ WKHLU SRVVLEOH
IXQFWLRQVFRPSOHWHO\PLVVWKHSRLQW
)RUPRUHGLVFXVVLRQRIWKHYHVWLJLDOFRQFHSWH[WHQVLYHPRGHUQDQGKLVWRULFDOUHIHUHQFHVFRQFHUQLQJLWV
GHILQLWLRQ HVSHFLDOO\ WKH DOORZDQFH IRU IXQFWLRQDOLW\ VHH WKH &LWLQJ 6FDGGLQJ  DQG
0LVXQGHUVWDQGLQJ9HVWLJLDOLW\DQG(YLGHQFHVIRU0DFURHYROXWLRQ$QDWRPLFDOYHVWLJHV)$4V
7KHIROORZLQJGLVFXVVLRQPDNHVIRXUPDLQSRLQWV
 7KHKXPDQDSSHQGL[PD\KDYHERQDILGHIXQFWLRQVEXWWKLVLVFXUUHQWO\FRQWURYHUVLDO
XQGHPRQVWUDWHGLQKXPDQVDQGLUUHOHYDQWDVWRZKHWKHUWKHDSSHQGL[LVDWUXHYHVWLJHRUQRW
 7KHDSSHQGL[LVDSULPHH[DPSOHRIG\VWHOHRORJ\LHVXERSWLPDOVWUXFWXUDOGHVLJQDSUHGLFWLRQRI
JHQHWLFDOO\JUDGXDOHYROXWLRQ
 7KHDSSHQGL[LVDUXGLPHQWDU\WLSRIWKHFDHFXPDQGLVXVHOHVVDVDQRUPDOFHOOXORVHGLJHVWLQJ
FDHFXP
 7KXVWKHDSSHQGL[LVYHVWLJLDOE\ERWKWKHHYROXWLRQDU\DQGQRQHYROXWLRQDU\W\SRORJLFDO
GHILQLWLRQVRIYHVWLJLDOLW\

7KHYHUPLIRUPDSSHQGL[EDFNJURXQGLQIR
,QKXPDQVWKHYHUPLIRUPDSSHQGL[LVD
VPDOO ILQJHUVL]HG VWUXFWXUH IRXQG DW
WKH HQG RI RXU VPDOO FDHFXP DQG
ORFDWHG QHDU WKH EHJLQQLQJ RI WKH ODUJH
LQWHVWLQH)DZFHWWDQG5DYLRODS
 2[IRUG &RPSDQLRQ WR WKH %RG\
 SS  :LOOLDPV DQG 0\HUV
 7KH DGMHFWLYH YHUPLIRUP
OLWHUDOO\PHDQVZRUPOLNHDQGUHIOHFWV
WKH QDUURZ HORQJDWHG VKDSH RI WKLV
LQWHVWLQDO DSSHQGDJH 7KH DSSHQGL[ LV
W\SLFDOO\EHWZHHQWZRDQGHLJKWLQFKHV
ORQJ EXW LWV OHQJWK FDQ YDU\ IURP OHVV
WKDQ DQ LQFK ZKHQ SUHVHQW WR RYHU D
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

IRRW 7KH DSSHQGL[ LV ORQJHVW LQ

FKLOGKRRG DQG JUDGXDOO\ VKULQNV
WKURXJKRXW DGXOW OLIH 7KH ZDOO RI WKH
DSSHQGL[ LV FRPSRVHG RI DOO OD\HUV
W\SLFDO RI WKH LQWHVWLQH EXW LW LV
WKLFNHQHG DQG FRQWDLQV D FRQFHQWUDWLRQ
RI O\PSKRLG WLVVXH 6LPLODU WR WKH
WRQVLOV WKH O\PSKDWLF WLVVXH LQ WKH
DSSHQGL[LVW\SLFDOO\LQDFRQVWDQWVWDWH
RI FKURQLF LQIODPPDWLRQ DQG LW LV
JHQHUDOO\GLIILFXOWWR WHOO WKHGLIIHUHQFH
EHWZHHQ SDWKRORJLFDO GLVHDVH DQG WKH
QRUPDO FRQGLWLRQ )DZFHWW DQG
5DYLROD  S  7KH LQWHUQDO
GLDPHWHU RI WKH DSSHQGL[ ZKHQ RSHQ
KDV EHHQ FRPSDUHG WR WKH VL]H RI D
PDWFKVWLFN 7KH VPDOO RSHQLQJ WR WKH
)LJXUH7KHKXPDQYHUPLIRUPDSSHQGL[LPDJHUHSURGXFHG
DSSHQGL[ HYHQWXDOO\ FORVHV LQ PRVW
ZLWKPRGLILFDWLRQVIURP*UD\
SHRSOH E\ PLGGOH DJH $ YHUPLIRUP
DSSHQGL[LVQRWXQLTXHWRKXPDQV,W LV
IRXQGLQDOOWKHKRPLQRLGDSHVLQFOXGLQJKXPDQVFKLPSDQ]HHVJRULOODVRUDQJXWDQVDQGJLEERQVDQGLW
H[LVWVWRYDU\LQJGHJUHHVLQVHYHUDOVSHFLHVRI1HZ:RUOGDQG2OG:RUOGPRQNH\V)LVKHU +LOO
6FRWW

7KHFDHFXPDVSHFLDOL]HGKHUELYRURXVRUJDQ
2XU DSSHQGL[ LV D GHYHORSPHQWDO GHULYDWLYH DQG HYROXWLRQDU\ YHVWLJH RI WKH HQG RI WKH PXFK ODUJHU
KHUELYRURXV FDHFXP IRXQG LQ RXU SULPDWH DQFHVWRUV &RQGRQ DQG 7HOIRUG  :LOOLDPV DQG 0\HUV
S7KHZRUGFDHFXPDFWXDOO\PHDQVEOLQGLQ/DWLQUHIOHFWLQJWKHIDFWWKDWWKHERWWRPRIWKH
FDHFXPLVDEOLQGSRXFKDGHDGHQGRUFXOGHVDF
,QPRVWYHUWHEUDWHVWKHFDHFXPLVDODUJHFRPSOH[JDVWURLQWHVWLQDORUJDQHQULFKHGLQPXFRVDOO\PSKDWLF
WLVVXH%HUU\DQGVSHFLDOL]HGIRUGLJHVWLRQRISODQWVVHH)LJXUH.DUGRQJ SS 
7KH FDHFXP YDULHV LQ VL]H DPRQJ VSHFLHV EXW LQ JHQHUDO WKH VL]H RI WKH FDHFXP LV SURSRUWLRQDO WR WKH
DPRXQWRISODQWPDWWHULQDJLYHQRUJDQLVP
VGLHW,WLVODUJHVWLQREOLJDWHKHUELYRUHVDQLPDOVZKRVHGLHWV
FRQVLVWHQWLUHO\RISODQWPDWWHU,QPDQ\KHUELYRURXVPDPPDOVWKHFDHFXPLVDVODUJHDVWKHUHVWRIWKH
LQWHVWLQHVDQGLWPD\HYHQEHFRLOHGDQGORQJHUWKDQWKHOHQJWKRIWKHHQWLUHRUJDQLVPDVLQWKHNRDOD,Q
KHUELYRURXVPDPPDOVWKHFDHFXPLVHVVHQWLDOIRUGLJHVWLRQRIFHOOXORVHDFRPPRQSODQWPROHFXOH7KH
FDHFXP KRXVHV VSHFLDOL]HG V\PELRWLF EDFWHULD WKDW VHFUHWH FHOOXODVH DQ HQ]\PH WKDW GLJHVWV FHOOXORVH
2WKHUZLVHFHOOXORVHLVLPSRVVLEOHIRUPDPPDOVWRGLJHVW
7KHVWUXFWXUHRIWKHFDHFXPLVVSHFLDOL]HGWRLQFUHDVHWKHHIILFLHQF\RIFHOOXORVHIHUPHQWDWLRQ$VDVLGH
EUDQFK IURP WKH JXW LW LV DEOH WR KRXVH D ODUJH GHQVH DQG SHUPDQHQW FRORQ\ RI VSHFLDOL]HG EDFWHULD
%HLQJ D GHDGHQG VDF DW WKH EHJLQQLQJ RI WKH ODUJH LQWHVWLQH LW DOORZV PRUH WLPH IRU GLJHVWLQJ IRRG WR
UHVLGH LQ WKH JXW DQG IHUPHQW PRUH FRPSOHWHO\ EHIRUH SDVVLQJ WKURXJK WKH ODUJH LQWHVWLQH ZKHUH WKH
UHVXOWLQJ QXWULHQWV DUH DEVRUEHG +RZHYHU HYHQ WKRXJK KXPDQV DUH KHUELYRURXV WKH VPDOO KXPDQ
FDHFXPGRHVQRWKRXVHVLJQLILFDQWTXDQWLWLHVRIFHOOXODVHH[FUHWLQJEDFWHULDDQGZHFDQQRWGLJHVWPRUH
WKDQEXWDIHZJUDPVRIFHOOXORVHSHUGD\6ODYLQ%URZHUDQG0DUOHWW

KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[


)LJXUH*DVWURLQWHVWLQDOWUDFWVRIYDULRXVPDPPDOV)RUHDFKVSHFLHVWKHVWRPDFKLVVKRZQDWWRSWKH
VPDOOLQWHVWLQHDWOHIWWKHFDHFXPDQGDVVRFLDWHGDSSHQGL[LISUHVHQWLQPDJHQWDDQGWKHODUJHLQWHVWLQHDWERWWRP
ULJKW6FDOHGLIIHUVEHWZHHQVSHFLHV5HSURGXFHGZLWKPRGLILFDWLRQVIURP.DUGRQJ S  &RS\ULJKW  
0F*UDZ+LOO

7KHKXPDQDSSHQGL[LVKRPRORJRXVWRWKHHQGRIWKHPDPPDOLDQFDHFXP
,QYHUWHEUDWHFRPSDUDWLYHDQDWRP\LWKDVORQJEHHQNQRZQWKDWWKHKXPDQDSSHQGL[DQGWKHHQGRIWKH
PDPPDOLDQFDHFXPDUHVWUXFWXUDOO\KRPRORJRXV%HUU\)LVKHU+LOO  +\PDQ  S
.DUGRQJSS.OXJHS1HDODQG5DQGS5RPHUDQG3DUVRQV
 S  5R\VWHU S  6PLWK  S  :HLFKHUW  S  :LHGHUVKHLP  S
:ROII S  2I FRXUVH WKH HQG RI WKH FDHFXP DQG WKH DSSHQGL[ FDQ EH KRPRORJRXV DQG
KDYHGLIIHUHQWIXQFWLRQV%HLQJWKHWHUPLQDWLRQRIWKHFDHFXPWKHKXPDQYHUPLIRUPDSSHQGL[LVDOVRD
EOLQGSRXFKDQGDQRWKHUQDPHIRUWKHDSSHQGL[LVLQIDFWWKHWUXHFDHFDODSH[%HUU\:LWKLQ
WKHJDVWURLQWHVWLQDOWUDFWRIPDQ\YHUWHEUDWHVPDPPDOVDQGSULPDWHVLQSDUWLFXODUWKHWHUPLQDWLRQRIWKH
FDHFXP DQG WKH YHUPLIRUP DSSHQGL[ VKDUH WKH VDPH UHODWLYH SRVLWLRQ )LJXUH  ERWK KDYH D VLPLODU
VWUXFWXUHDQGIRUPERWKDUHEOLQGVDFVHQULFKHGZLWKO\PSKDWLFWLVVXH%HUU\ERWKKDYHDFRPPRQ
GHYHORSPHQWDO RULJLQ &RQGRQ DQG 7HOIRUG  :LOOLDPV DQG 0\HUV  S  DQG DV GLVFXVVHG
EHORZ LQ WKH SULPDWHV ERWK DUH FRQQHFWHG E\ DQ H[WHQVLYH VHULHV RI LQWHUPHGLDWHV 7KHVH REVHUYDWLRQV
ILUPO\HVWDEOLVKWKHVHVWUXFWXUHVDVKRPRORJRXVE\VWDQGDUGV\VWHPDWLFFULWHULD.LWFKLQJHWDOSS
5HPDQH6FKXKSS5LHSSHOSDFRQFOXVLRQFRQILUPHGE\FODGLVWLF
V\VWHPDWLFDQDO\VLV*RRGPDQHWDO6KRVKDQL
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

$IHZRWKHUPDPPDOVDSSHDUWRKDYHDVWUXFWXUHVLPLODUWRWKHKRPLQRLGYHUPLIRUPDSSHQGL[LQFOXGLQJ
WKH ZRPEDW 6RXWK $PHULFDQ RSRVVXP ERWK PDUVXSLDOV VRPH URGHQWV DQG WKH UDEELW +RZHYHU
H[WHQVLYH FRPSDUDWLYH DQDO\VLV KDV VKRZQ WKDW WKH FDHFDO DSSHQGL[HV RI KXPDQV DQG WKHVH RWKHU
PDPPDOV ZHUH GHULYHG IURP WKH FDHFXP LQGHSHQGHQWO\ WKHVH VWUXFWXUHV DUH QRW KRPRORJRXV DV
DSSHQGL[HV6KRVKDQL DQG 0F.HQQD  7KH UHODWLRQVKLS EHWZHHQ WKHVH RWKHU FDHFDO VWUXFWXUHV DQG
WKHKRPLQRLGYHUPLIRUPDSSHQGL[LVVLPLODUWRWKHKRPRORJ\RIEDWDQGELUGZLQJV7KHZLQJVRIEDWV
DQGELUGVDUHKRPRORJRXVDVPRGLILHGIRUHOLPEV\HWWKH\DUHQRWKRPRORJRXVDVZLQJV/LNHZLVHWKH
DSSHQGL[HV RI UDEELWV DQG KXPDQV DUH KRPRORJRXV DV PRGLILHG FDHFD \HW WKH\ DUH QRW KRPRORJRXV DV
DSSHQGL[HV ,I WKH UDEELW DQG KXPDQ DSSHQGL[ KDYH VLPLODU IXQFWLRQV ZKLFK KDV QHYHU EHHQ
H[SHULPHQWDOO\ GHPRQVWUDWHG WKH\ DUH WKH UHVXOW RI LQGHSHQGHQW FRQYHUJHQFH RI IXQFWLRQ DQG IRUP
6KRVKDQL DQG 0F.HQQD  7KH PDQ\ VLJQLILFDQW PRUSKRORJLFDO KLVWRORJLFDO DQG FHOOXODU
GLIIHUHQFHV EHWZHHQ WKH UDEELW DQG KXPDQ DSSHQGL[HV GLVFXVVHG EHORZ DOO DUH FRQVLVWHQW ZLWK D
VXSHUILFLDOFRQYHUJHQWUHODWLRQVKLS

6WUXFWXUDOLQWHUPHGLDWHVRIWKHDSSHQGL[DQGFDHFXPLQSULPDWHSK\ORJHQ\
7KH SULPDWH IDPLO\ WUHH SURYLGHV D UDWKHU FRPSOHWH VHW RI LQWHUPHGLDWHV EHWZHHQ WKH VWDWHV ODUJH
FDHFXPDSSHQGL[DEVHQWWRVPDOOFDHFXPDSSHQGL[SUHVHQW0DQ\SULPDWHVKDYHERWKDFDHFXPDQG
DQ DSSHQGL[ RU D VWUXFWXUH LQWHUPHGLDWH EHWZHHQ WKH WZR 7KH DQDWRPLFDO GHILQLWLRQ RI D YHUPLIRUP
DSSHQGL[LVDQDUURZHGWKLFNHQHGO\PSKRLGULFKFDHFDODSH[)LVKHUDQGUHIHUHQFHVWKHUHLQ$V
DOUHDG\PHQWLRQHGWKHKRPLQRLGDSHVDOOEHDUDYHUPLIRUPDSSHQGL[EXWPDQ\QRQDQWKURSRLGSULPDWHV
DOVR KDYH VWUXFWXUHV WKDW ILW WKH DERYH GHILQLWLRQ WR YDU\LQJ GHJUHHV ,Q IDFW UHFHQW UHHYDOXDWLRQ RI WKH
DQDWRP\ RI WKH SULPDWH FDHFXP DQG DSSHQGL[ KDV KLJKOLJKWHG WKH GLIILFXOWLHV LQ GHWHUPLQLQJ H[DFWO\
ZKHUH WKH FDHFXP HQGV DQG WKH DSSHQGL[ EHJLQV LQ GLIIHUHQW VSHFLHV )LVKHU  7KLV FRPSOLFDWLRQ
DULVHV IURP WKH FRQWLQXRXV YDULDEOH DQG RYHUODSSLQJ QDWXUH RI FDHFDO DQG DSSHQGLFXODU WLVVXHV ERWK
KLVWRORJLFDOO\DQGDQDWRPLFDOO\)RUH[DPSOHLQPRVWSULPDWHVWKHFDHFDODSH[LVULFKLQO\PSKRLGWLVVXH
DQG LV WKLFNHQHG EXW ZKHWKHU LW LV QDUURZHG LQWR D FRQLFDO RU ZRUPOLNH VWUXFWXUH LV YDULDEOH )LVKHU

)URP V\VWHPDWLF DQDO\VLV RI FRPSDUDWLYH DQDWRP\ LW LV NQRZQ WKDW LQ SULPDWHV D ODUJH FDHFXP ZLWK D
VPDOO RU DEVHQW DSSHQGL[ LV WKH DQFHVWUDO SULPLWLYH VWDWH *RRGPDQ HW DO  6KRVKDQL  ,Q
JHQHUDO WKH OHQJWK RI WKH FDHFXP UHODWLYH WR WKDW RI WKH FRORQ GHFUHDVHV DV RQH WUDYHUVHV WKH SULPDWH
SK\ORJHQHWLF WUHH IURP PRQNH\V WR KXPDQV &RQFXUUHQWO\ WKH VL]H RI WKH DSSHQGL[ LQFUHDVHV 7KH
DSSHQGL[LVPRVWO\DEVHQWLQSURVLPLDQVDQG1HZ:RUOGPRQNH\V\HWWKH\KDYHDODUJHFDHFXP,Q2OG
:RUOG PRQNH\V WKH DSSHQGL[ LV PRUH UHFRJQL]DEOH DQG LW LV ZHOOGHYHORSHG LQ WKH DQWKURSRLG DSHV
ZKLFK ODFN WKH ODUJH FHOOXORVHIHUPHQWLQJ FDHFXP IRXQG LQ WKHLU DQFHVWRUV DQG RWKHU SULPDWHV )LVKHU
*RRGPDQHWDO+LOO6KRVKDQL6FRWW

3RVVLEOHIXQFWLRQRIWKHDSSHQGL[

7KH DSSHQGL[ Q RI WKH FRORQ Q P LV D SDUW RI WKH FDHFXP DQG LV
FDSDEOH RI FRQWUDFWLQJ DQG GLODWLQJ VR WKDW H[FHVVLYH ZLQG GRHV QRW
UXSWXUHWKHFDHFXP
/HRQDUGRGD9LQFL

)%Y
Earliest
known
IURP2
0DOO\DQG6DXQGHUV/HRQDUGRGD9LQFLRQWKHKXPDQ drawing of the
ERG\S
appendix,
by Leonardo da
Vinci.
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

7KURXJKRXWPHGLFDOKLVWRU\PDQ\SRVVLEOHIXQFWLRQVIRUWKHDSSHQGL[KDYHEHHQRIIHUHGH[DPLQHGDQG
UHIXWHGLQFOXGLQJH[RFULQHHQGRFULQHDQGQHXURPXVFXODUIXQFWLRQV:LOOLDPVDQG0\HUVSS
 7RGD\ D JURZLQJ FRQVHQVXV RI PHGLFDO VSHFLDOLVWV KROGV WKDW WKH PRVW OLNHO\ FDQGLGDWH IRU WKH
IXQFWLRQ RIWKHKXPDQDSSHQGL[LV DVDSDUWRIWKHJDVWURLQWHVWLQDOLPPXQHV\VWHP6HYHUDOUHDVRQDEOH
DUJXPHQWVH[LVWIRUVXVSHFWLQJWKDWWKHDSSHQGL[PD\KDYHDIXQFWLRQLQLPPXQLW\/LNHWKHUHVWRIWKH
FDHFXPLQKXPDQVDQGRWKHUSULPDWHVWKHDSSHQGL[LVKLJKO\YDVFXODULVO\PSKRLGULFKDQGSURGXFHV
LPPXQHV\VWHPFHOOVQRUPDOO\LQYROYHGZLWKWKHJXWDVVRFLDWHGO\PSKRLGWLVVXH*$/7)LVKHU
1DJOHU$QGHUVRQ1HLEXUJHUHWDO6RPHNKHWDO6SHQFHUHWDO$QLPDOPRGHOV
VXFK DV WKH UDEELW DQG PRXVH LQGLFDWH WKDW WKH DSSHQGL[ LV LQYROYHG LQ PDPPDOLDQ PXFRVDO LPPXQH
IXQFWLRQSDUWLFXODUO\WKH%DQG7O\PSKRF\WHLPPXQHUHVSRQVH&UDLJDQG&HEUD$QLPDOVWXGLHV
SURYLGHOLPLWHGHYLGHQFHWKDWWKHDSSHQGL[PD\IXQFWLRQLQSURSHUGHYHORSPHQWRIWKHLPPXQHV\VWHPLQ
\RXQJMXYHQLOHV'DVVRDQG+RZHOO'DVVRHWDO3RVSLVLODQG0DJH
+RZHYHUFRQWUDU\WRZKDWRQHLVDSWWRUHDGLQDQWLHYROXWLRQDU\OLWHUDWXUHWKHUHLVFXUUHQWO\QRHYLGHQFH
GHPRQVWUDWLQJWKDWWKHDSSHQGL[DVDVHSDUDWHRUJDQKDVDVSHFLILFLPPXQHIXQFWLRQLQKXPDQV-XGJH
DQG /LFKWHQVWHLQ  'DVVR HW DO  :LOOLDPV DQG 0\HUV  SS   7R GDWH DOO
H[SHULPHQWDO VWXGLHV RI WKH IXQFWLRQ RI DQ DSSHQGL[ RWKHU WKDQ URXWLQH KXPDQ DSSHQGHFWRPLHV KDYH
EHHQH[FOXVLYHO\LQUDEELWVDQGWRDOHVVHUH[WHQWURGHQWV&XUUHQWO\LWLVXQFOHDUZKHWKHUWKHO\PSKRLG
WLVVXHLQWKH KXPDQ DSSHQGL[SHUIRUPVDQ\ VSHFLDOL]HG IXQFWLRQDSDUWIURP WKHPXFKODUJHUDPRXQWRI
O\PSKDWLF WLVVXH DOUHDG\ GLVWULEXWHG WKURXJKRXW WKH JXW 0RVW LPSRUWDQWO\ ZLWK UHJDUG WR YHVWLJLDOLW\
WKHUH LV QR HYLGHQFH IURP DQ\ PDPPDO VXJJHVWLQJ WKDW WKH KRPLQRLG YHUPLIRUP DSSHQGL[ SHUIRUPV
IXQFWLRQVDERYHDQGEH\RQGWKRVHRIWKHO\PSKRLGULFKFDHFDRIRWKHUSULPDWHVDQGPDPPDOVWKDWODFN
GLVWLQFWDSSHQGL[HV
$V PHQWLRQHG DERYH LPSRUWDQW GLIIHUHQFHV H[LVW LQ QHDUO\ DOO UHVSHFWV EHWZHHQ WKH KXPDQ DQG UDEELW
DSSHQGL[HV'DVVR HW DO :LOOLDPV DQG 0\HUV  S  7KH UDEELW DSSHQGL[ IRU LQVWDQFH LV
YHU\GLIILFXOWWRLGHQWLI\DVVHSDUDWHIURPWKHUHVWRILWVYROXPLQRXVFDHFXPVHH)LJXUH 8QOLNH WKH
KXPDQ DSSHQGL[ WKH UDEELW
V DSSHQGL[ LV H[WUHPHO\ ODUJH UHODWLYH WR WKH FRORQ DQG LV WKH VHDW RI
H[WHQVLYHFHOOXORVHGHJUDGDWLRQGXHWRDVSHFLDOL]HGPLFURIORUD7KHODUJHUDEELWDSSHQGL[KRXVHVKDOIRI
LWV*$/7O\PSKRLGWLVVXHZKHUHDVWKHFRQWULEXWLRQRIWKHKXPDQDSSHQGL[WR*$/7LVVLJQLILFDQWO\OHVV
'DVVRHWDO,QKXPDQVWKHYDVWPDMRULW\RI*$/7WLVVXHLVIRXQGLQKXQGUHGVRI3H\HU
VSDWFKHV
FRDWLQJWKHVPDOOLQWHVWLQHDQGLQQHDUO\VLPLODUSDWFKHVIRXQGLQWKHODUJHLQWHVWLQH$GGLWLRQDOO\
WKHUH DUH LPSRUWDQW GLIIHUHQFHV LQ O\PSKRLG IROOLFXODU VWUXFWXUH LQ 7FHOO GLVWULEXWLRQ DQG LQ
LPPXQRJOREXOLQ GHQVLW\ 'DVVR HW DO  )XUWKHUPRUH IURP V\VWHPDWLF DQDO\VLV ZH NQRZ WKDW WKH
UDEELW URGHQW DQG KXPDQ DSSHQGL[HV DUH FRQYHUJHQW DV RXWJURZWKV DQG FRQVWULFWLRQV RI WKH FDHFXP
6KRVKDQLDQG0F.HQQD,WLVWKXVYHU\TXHVWLRQDEOHWRFRQFOXGHIURPWKHVHDQLPDOVWXGLHVWKDW
WKHKXPDQDSSHQGL[KDVWKHVDPHIXQFWLRQDVWKHRWKHUQRQSULPDWHDSSHQGL[HV
2IFRXUVHRYHUDFHQWXU\RIPHGLFDOHYLGHQFHKDVILUPO\VKRZQWKDWWKHUHPRYDORIWKHKXPDQDSSHQGL[
DIWHU LQIDQF\ KDV QR REYLRXV LOO HIIHFWV DSDUW IURP VXUJLFDO FRPSOLFDWLRQV :LOOLDPVDQG0\HUV
(DUOLHU UHSRUWV RI DQ DVVRFLDWLRQ EHWZHHQ DSSHQGHFWRP\ DQG FHUWDLQ W\SHV RI FDQFHU ZHUH DUWLIDFWXDO
$QGHUVHQ DQG ,VDJHU  *OHGRYLF DQG 5DGRYDQRYLF  0HOOHPNMDHU HW DO  ,Q IDFW
FRQJHQLWDO DEVHQFH RI WKH DSSHQGL[ DOVR DSSHDUV WR KDYH QR GLVFHUQDEOH HIIHFW )URP LQYHVWLJDWLYH
ODSDURVFRSLHVIRUVXVSHFWHGDSSHQGLFLWLVPDQ\SHRSOHKDYHEHHQIRXQGZKRFRPSOHWHO\ODFNDQDSSHQGL[
IURPELUWKDSSDUHQWO\ZLWKRXWDQ\SK\VLRORJLFDOGHWULPHQW$Q\DQZX&KHYUHHWDO&ROOLQV
 +HL  +RVW HW DO  ,XFKWPDQ  .DO\VKHY HW DO  0DQRLO  3HVWHU 
3LTXHW HW DO  3RQRPDUHQNR DQG 1RYLNRYD  5ROII HW DO  6DDYH  6KSHUEHU 
7LOVRQDQG7RXORXNLDQ:LOOLDPVDQG0\HUVS
,QVXPDQHQRUPRXVDPRXQWRIPHGLFDOUHVHDUFKKDVFHQWHUHGRQWKHKXPDQDSSHQGL[EXWWRGDWHWKH
VSHFLILFIXQFWLRQRIWKHDSSHQGL[LIDQ\LVVWLOOXQFOHDUDQGFRQWURYHUVLDOLQKXPDQSK\VLRORJ\:LOOLDPV
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

DQG0\HUVSS

7KHDSSHQGL[LVVXERSWLPDOO\GHVLJQHG
7KHKXPDQDSSHQGL[LVQRWRULRXVIRUWKHOLIHWKUHDWHQLQJFRPSOLFDWLRQVLWFDQFDXVH'HDGO\LQIHFWLRQRI
WKHDSSHQGL[DWD\RXQJDJHLVFRPPRQDQGWKHOLIHWLPHULVNRIDFXWHDSSHQGLFLWLVLV$GGLVVHWDO
 +DUGLQ  .RUQHU HW DO  3LHSHU DQG .DJHU  7KH PRVW FRPPRQ DJH IRU DFXWH
DSSHQGLFLWLV LV LQ SUHSXEHVFHQW FKLOGUHQ EHWZHHQ  DQG  \HDUV RI DJH %HIRUH PRGHUQ WKFHQWXU\
VXUJLFDO WHFKQLTXHV ZHUH DYDLODEOH D FDVH RI DFXWH DSSHQGLFLWLV ZDV XVXDOO\ IDWDO (YHQ WRGD\
DSSHQGLFLWLVIDWDOLWLHVDUHVLJQLILFDQW%ORPTYLVWHWDO/XFNPDQQ
7KH VPDOO HQWUDQFH WR WKLV GHDGHQG SRFNHW PDNHV WKH DSSHQGL[ GLIILFXOW WR FOHDQ RXW DQG SURQH WR
SK\VLFDOEORFNDJHZKLFKXOWLPDWHO\LVWKHFDXVHRIDSSHQGLFLWLV/LXDQG0F)DGGHQ7KLVSHFXOLDU
VWUXFWXUDO OD\RXW LV TXLWH EHQHILFLDO IRU D ODUJHU FHOOXORVHIHUPHQWLQJ FDHFXP EXW LW LV XQFOHDU ZK\ JXW
O\PSKRLGWLVVXHZRXOGQHHGWREHKRXVHGLQDUHPRWHGHDGHQGWXEHZLWKQHJOLJLEOHVXUIDFHDUHD,QIDFW
 RI DSSHQGLFLWLV FDVHV DUH GXH WR O\PSKRLG K\SHUSODVLD OHDGLQJ WR RFFOXVLRQ RI WKH LQWHULRU RI WKH
DSSHQGL[LQGLFDWLQJWKDWWKHDSSHQGL[LVXQXVXDOO\SURQHWRDEQRUPDOSUROLIHUDWLRQRILWVO\PSKRLGWLVVXH
/LX DQG 0F)DGGHQ  6XFK DQ RFFXUUHQFH ZRXOG EH PXFK OHVV SUREOHPDWLF LI WKH LQWHULRU RI WKH
DSSHQGL[ZHUHQRWVRVPDOOFRQILQHGDQGLQDFFHVVLEOHIURPWKHUHVWRIWKHJXW,QPDQ\RWKHUSULPDWHV
DQGPDPPDOVWKH*$/7O\PSKRLGWLVVXHDSSHDUVWRIXQFWLRQZLWKRXWGLIILFXOW\LQDPXFKPRUHRSHQ
EXOERXVFDHFXPZLWKDPSOHVXUIDFHDUHD
)XUWKHUPRUH WKHUH LV PRXQWLQJ HYLGHQFH WKDW UHPRYLQJ WKH DSSHQGL[ KHOSV SUHYHQW XOFHUDWLYH FROLWLV D
QDVW\ LQIODPPDWRU\ GLVHDVH RI WKH FRORQ $QGHUVVRQ HW DO  %XHUJHO HW DO  -XGJH DQG
/LFKWHQVWHLQ  .RXWURXEDNLV DQG 9ODFKRQLNROLV  .RXWURXEDNLV HW DO  1DJDQXPD 
5XWJHHUWV7KLVHYLGHQFHVXJJHVWVWKDWWKHDSSHQGL[LVDFWXDOO\PDODGDSWLYHDQGWKDWWKHO\PSKRLG
WLVVXH FRQWDLQHG LQ WKH DSSHQGL[ LV SURQH WR FKURQLF SDWKRORJLFDO LQIODPPDWRU\ VWDWHV ,I WKH DSSHQGL[
GRHVKDYHDQLPSRUWDQWIXQFWLRQWKDWZHKDYH\HWWRILQGLWLVDOHDGLQJFDQGLGDWHIRUWKHZRUVWGHVLJQHG
RUJDQ LQ WKH KXPDQ ERG\ +RZ QLFH LI WKH DSSHQGL[ ZRXOG MXVW GHJHQHUDWH DZD\ DIWHU LW LV QR ORQJHU
QHHGHG VR LW FRXOG QHYHU JHW LQIHFWHG DQG NLOO XV QHHGOHVVO\ $Q\ ELRORJLFDO VWUXFWXUH WKDW VXSSRVHGO\
HQVXUHV RXU OLYHOLKRRG E\ LWV IXQFWLRQV \HW SDUDGR[LFDOO\ DQG XQQHFHVVDULO\ NLOOV D ODUJH IUDFWLRQ RI LWV
EHDUHUVSUHPDWXUHO\LVSRRUO\GHVLJQHGLQGHHG

:K\GRVRPHPHGLFDOVRXUFHVTXHVWLRQWKHYHVWLJLDOLW\RIWKHDSSHQGL["
7KHUHDVRQVIRUWKLVDUHPXOWLSOHEXWWKH\ODUJHO\VWHPIURPWKHVLPSOHIDFWWKDWPRVWSK\VLFLDQVDUHQRW
WUDLQHG LQ HYROXWLRQDU\ ELRORJ\ 7KH HUURQHRXV FRPSOHWHO\ QRQIXQFWLRQDO GHILQLWLRQ RI D YHVWLJH LV
SULPDULO\ IRXQG LQ PHGLFDO SDSHUV WH[WERRNV DQG GLFWLRQDULHV HJ :LOOLDPV DQG 0\HUV  S L[
8VLQJ WKLV LQFRUUHFW DQG QRQHYROXWLRQDU\ GHILQLWLRQ LW LV ORJLFDO WR FRQFOXGH WKDW D VWUXFWXUH LV QRW
YHVWLJLDO LI LWV IXQFWLRQ LV GLVFRYHUHG )RU LQVWDQFH EDVHG XSRQ WKLV LQFRUUHFW GHILQLWLRQ :LOOLDPV DQG
0\HUVLQFRUUHFWO\DUJXHWKDWDQHYROXWLRQDU\YHVWLJHFDQQRWEHERWKDFRPSOH[DQGDUHJUHVVLYH
VWUXFWXUHS6LPLODUO\DPRGHUQYHUVLRQRI*UD\
V$QDWRP\FRQIXVLQJO\LPSOLHVWKDWWKHDSSHQGL[
FDQQRWEHERWKYHVWLJLDODQGVSHFLDOL]HG:LOOLDPVDQG:DUZLFN+RZHYHUYHVWLJHVDUHYHU\RIWHQ
FRPSOH[RUVSHFLDOL]HGVWUXFWXUHVLQIDFWRYHUO\FRPSOH[IRUWKHLUIXQFWLRQVDQGSULPHH[DPSOHVDUHWKH
ZLQJRIWKHRVWULFKDQGWKHH\HVRIEOLQGFDYHILVK$YHVWLJHFDQEHDFRPSOH[VWUXFWXUHLQDQDEVROXWH
VHQVHZKLOHVLPXOWDQHRXVO\EHLQJUXGLPHQWDU\RUGHJHQHUDWHUHODWLYHWRWKHVDPHKRPRORJRXVVWUXFWXUH
LQRWKHURUJDQLVPV
3HUKDSV PRVW LPSRUWDQW LV WKH IDFW WKDW D YHVWLJH FDQ EH LGHQWLILHG RQO\ YLD FRPSDUDWLYH DQDO\VLV
3K\VLFLDQV DUH H[SHUWV RQ KXPDQ DQDWRP\ DQG SK\VLRORJ\ EXW UDUHO\ GR GLVFXVVLRQV LQ PHGLFDO
SXEOLFDWLRQV FRQVLGHU SK\ORJHQHWLF DQG FRPSDUDWLYH LVVXHV 0HGLFDO DUWLFOHV WKDW DWWHPSW WR FRQVLGHU
SK\ORJHQHWLFVRIWHQSURYLGHDJURVVPLVFRQFHSWLRQRIHYROXWLRQDU\IXQGDPHQWDOV)RULQVWDQFHWKHPRVW
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

WKRURXJKDQGLQGHSWKVRXUFHRQWKHSK\VLRORJ\RIWKHKXPDQDSSHQGL[:LOOLDPVDQG0\HUVUHIHUV
WR KRZ WKH DSSHQGL[ FKDQJHV DV WKH SULPDWH VFDOH LV DVFHQGHG DQG WR WKH HYROXWLRQDU\ VFDOH ZLWK
KXPDQV DW LWV HQG SS  7KHVH DUH ORQJUHIXWHG RUWKRJHQHWLF FRQFHSWV ZKLFK KDYH EHHQ
FRQWUDGLFWHGE\EDVLFHYROXWLRQDU\WKHRU\VLQFH'DUZLQ6FRWWVLPLODUO\DUJXHVDJDLQVWYHVWLJLDOLW\
EDVHGXSRQRUWKRJHQHWLFFRQFHSWVDQGDEHOLHILQHYROXWLRQDU\SURJUHVV)LVKHUSDQG6FRWW
 ERWK LQFRUUHFWO\ LPSO\ WKDW D YHVWLJH FDQQRW EH D GHULYHG FKDUDFWHU D FXULRXV DVVHVVPHQW VLQFH D
YHVWLJHPXVWEHDSK\ORJHQHWLFDOO\GHULYHGFKDUDFWHUE\GHILQLWLRQ

+RZZRXOGZHNQRZLIWKHDSSHQGL[ZHUHQRWYHVWLJLDO"
:KHWKHUWKHDSSHQGL[KDVDIXQFWLRQRIVRPHVRUWRUQRWKDVQRGLUHFWEHDULQJRQZKHWKHULWLVDERQDILGH
YHVWLJH+RZHYHUDWOHDVWWKUHHSRVVLEOHREVHUYDWLRQVZRXOGKHOSQHJDWHWKHFRQFOXVLRQWKDWWKHKXPDQ
DSSHQGL[LVYHVWLJLDOXVLQJHLWKHUWKHHYROXWLRQDU\RUWKHW\SRORJLFDOGHILQLWLRQVRIYHVWLJLDOLW\
LIWKHKXPDQDSSHQGL[ZHUHDFWXDOO\DVODUJHDQGGHYHORSHGDVVD\WKHFDHFXPRIDSURVLPLDQ
RU1HZ:RUOGPRQNH\
LIWKHKXPDQDSSHQGL[FRQWULEXWHGVLJQLILFDQWO\WRFHOOXORVHIHUPHQWDWLRQDQGFRQWDLQHGDODUJH
DPRXQWRIFHOOXORVHGLJHVWLQJEDFWHULD
LIZHFRXOGGHPRQVWUDWHYLDSK\ORJHQHWLFRUV\VWHPDWLFPHWKRGVWKDWWKHDSH[RIWKHFHOOXORVH
IHUPHQWLQJFDHFXPLQRWKHUSULPDWHVDQGWKHYHUPLIRUPDSSHQGL[ZHUHQRWVWUXFWXUDOO\
KRPRORJRXVDVVLGHEUDQFKHVIURPWKHLQWHVWLQH
$Q DGGLWLRQDO SRVVLEOH REVHUYDWLRQ ZRXOG FRQWUDGLFW WKH FRQFOXVLRQ RI YHVWLJLDOLW\ E\ WKH HYROXWLRQDU\
GHILQLWLRQ
LISK\ORJHQHWLFPHWKRGVLQGLFDWHGWKDWQRSUHGLFWHGDQFHVWRUVRIKXPDQVHYHUKDGDODUJH
FHOOXORVHIHUPHQWLQJFDHFXPLHWKDWDODUJHFHOOXORVHGLJHVWLQJFDHFXPLVDFWXDOO\DGHULYHG
SULPDWHFKDUDFWHUQRWDSULPLWLYHRQH
$OOIRXURIWKHVHSRWHQWLDOREVHUYDWLRQVDUHGHPRQVWUDEO\IDOVH$GGLWLRQDOO\HDFKLVEDVHGXSRQSRVLWLYH
VFLHQWLILFHYLGHQFHZHFDQPHDVXUHDQGTXDQWLWDWHWKHVL]HRIWKHDSSHQGL[ZHFDQPHDVXUHDQG
TXDQWLWDWHWKHDPRXQWRIFHOOXORVHGLJHVWLRQRFFXUULQJLQWKHDSSHQGL[ZHFDQREVHUYHDQGFRPSDUH
WKHUHODWLYHSRVLWLRQVXQGHUO\LQJVWUXFWXUHVIRUPVDQGGHYHORSPHQWRIWKHRUJDQVLQWKHJDVWURLQWHVWLQDO
WUDFWVRIYDULRXVRUJDQLVPVDQGZHFDQGHWHUPLQHSULPLWLYHDQGGHULYHGFKDUDFWHUVE\LQGHSHQGHQW
SK\ORJHQHWLF DQDO\VLV 7KHUHIRUH WKH FRQFOXVLRQ RI YHVWLJLDOLW\ LV VXVFHSWLEOH DQG RSHQ WR VFLHQWLILF
WHVWLQJ DJDLQVW HPSLULFDO REVHUYDWLRQ $V VXFK WKH FRQFHSW RI YHVWLJLDOLW\ LV QRW DQ DUJXPHQW IURP
LJQRUDQFH,WLVFOHDUO\VFLHQWLILFLQQDWXUHEDVHGFRPSOHWHO\XSRQSRVLWLYHHYLGHQFH

&RQFOXVLRQ7KHYHUPLIRUPDSSHQGL[LVYHVWLJLDO
&XUUHQWO\ DUJXPHQWV DJDLQVW WKH YHVWLJLDOLW\ RI WKH KXPDQ YHUPLIRUP DSSHQGL[ KDYH EHHQ EDVHG XSRQ
PLVXQGHUVWDQGLQJVRIZKDWFRQVWLWXWHVDYHVWLJHDQGRIKRZYHVWLJHVDUHLGHQWLILHG
)URPDQHYROXWLRQDU\SHUVSHFWLYHWKHKXPDQDSSHQGL[LVDGHULYDWLYHRIWKHHQGRIWKHSK\ORJHQHWLFDOO\
SULPLWLYHKHUELYRURXVFDHFXPIRXQGLQRXUSULPDWHDQFHVWRUV*RRGPDQHWDO6KRVKDQL7KH
KXPDQDSSHQGL[KDVORVWDPDMRUDQGSUHYLRXVO\HVVHQWLDOIXQFWLRQQDPHO\FHOOXORVHGLJHVWLRQ7KRXJK
GXULQJSULPDWHHYROXWLRQLWKDVGHFUHDVHGLQVL]HWRDPHUHUXGLPHQWWKHDSSHQGL[UHWDLQVDVWUXFWXUHWKDW
ZDVRULJLQDOO\VSHFLILFDOO\DGDSWHGIRUKRXVLQJEDFWHULDDQGH[WHQGLQJWKHWLPHFRXUVHRIGLJHVWLRQ)RU
WKHVH UHDVRQV WKH KXPDQ YHUPLIRUP DSSHQGL[ LV YHVWLJLDO UHJDUGOHVV RI ZKHWKHU RU QRW WKH KXPDQ
DSSHQGL[IXQFWLRQVLQWKHGHYHORSPHQWRIWKHLPPXQHV\VWHP
)URPDQRQHYROXWLRQDU\W\SRORJLFDOSHUVSHFWLYHWKHKXPDQDSSHQGL[LVKRPRORJRXVWRWKHHQGRIWKH
SK\VLRORJLFDOO\LPSRUWDQWODUJHFHOOXORVHIHUPHQWLQJFDHFDRIRWKHUPDPPDOV(YHQWKRXJKKXPDQVHDW
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

FHOOXORVHWKHFRQWULEXWLRQWRFHOOXORVHGLJHVWLRQE\ERWKWKHKXPDQFDHFXPDQGLWVDVVRFLDWHGDSSHQGL[LV
QHJOLJLEOH 5HJDUGOHVV RI ZKHWKHU RQH DFFHSWV HYROXWLRQDU\ WKHRU\ RU QRW WKH KXPDQ DSSHQGL[ LV D
UXGLPHQWRIWKHFDHFXPWKDWLVXVHOHVVDVDQRUPDOPDPPDOLDQFHOOXORVHGLJHVWLQJFDHFXP7KXVE\DOO
DFFRXQWVWKHYHUPLIRUPDSSHQGL[UHPDLQVDYDOLGDQGFODVVLFH[DPSOHRIDKXPDQYHVWLJH

$FNQRZOHGJHPHQWV
7KDQNVWR&ROLQ*URYHVIRUKHOSIXOGLVFXVVLRQRQWKHFRPSDUDWLYHDQDWRP\DQGKRPRORJ\RIWKHSULPDWH
DSSHQGL[DQGFDHFDODSH[DQGWR-RKQ+DUVKPDQIRULQVLJKWIXOFRPPHQWVDQGFODULILFDWLRQRIOHYHOVRI
KRPRORJ\

5HIHUHQFHV
*HQHUDO
&RQGRQ 5 ( DQG 7HOIRUG * /  $SSHQGLFLWLV ,Q 6DELVWRQ 7H[WERRN RI 6XUJHU\ 7KH %LRORJLFDO %DVLV RI
0RGHUQ6XUJLFDO3UDFWLFH7RZQVHQG&0HGLWRU)RXUWHHQWKHGLWLRQ:%6DXQGHUVDQG&R3KLODGHOSKLD3$SS

)DZFHWW':DQG5DYLROD(%ORRPDQG)DZFHWW$WH[WERRNRIKLVWRORJ\&KDSPDQDQG+DOO1HZ<RUN1<
*UD\+$QDWRP\RIWKHKXPDQERG\/HDDQG)HELJH3KLODGHOSKLD3$
/LX&'DQG0F)DGGHQ':$FXWHDEGRPHQDQGDSSHQGL[,Q6XUJHU\6FLHQWLILF3ULQFLSOHVDQG3UDFWLFH
*UHHQILHOG/-DQG0XOKROODQG0:HGLWRUV6HFRQGHGLWLRQ:LOOLDPVDQG:LONLQV%DOWLPRUH0'SS
0F&DEH-7KHVWRU\RIHYROXWLRQ6PDOO0D\QDUGDQGFR%RVWRQ>*XWHQEHUJWH[W@
7KH2[IRUGFRPSDQLRQWRWKHERG\  HGLWRUV &ROLQ %ODNHPRUH DQG 6KHLOD -HQQHWW 2[IRUG 8QLYHUVLW\ 3UHVV 1HZ
<RUN1<
5R\VWHU+$$SSHQGLFLWLV$SSOHWRQDQG&RPSDQ\1HZ<RUN
:LOOLDPV5$DQG0\HUV33DWKRORJ\RIWKHDSSHQGL[&KDSPDQDQG+DOO0HGLFDO1HZ<RUN1<
:LOOLDPV3/DQG:DUZLFN5*UD\
V$QDWRP\7KLUW\VL[WKHGLWLRQ&KXUFKLOO/LYLQJVWRQH1HZ<RUN1<

(SLGHPLRORJ\
$GGLVV'*6KDIIHU1)RZOHU%6DQG7DX[H597KHHSLGHPLRORJ\RIDSSHQGLFLWLVDQGDSSHQGHFWRP\LQWKH
8QLWHG6WDWHV$P-(SLGHPLRO>3XE0HG@
%ORPTYLVW3*$QGHUVVRQ5(*UDQDWK)/DPEH03DQG(NERP$50RUWDOLW\DIWHUDSSHQGHFWRP\LQ
6ZHGHQ$QQ6XUJ>3XE0HG@
+DUGLQ'0$FXWHDSSHQGLFLWLVUHYLHZDQGXSGDWH$P)DP3K\VLFLDQ>3XE0HG@
.RUQHU+6RQGHQDD.6RUHLGH-$$QGHUVHQ(1\VWHG$/HQGH7+DQG.MHOOHYROG.+,QFLGHQFHRIDFXWH
QRQSHUIRUDWHGDQGSHUIRUDWHGDSSHQGLFLWLVDJHVSHFLILFDQGVH[VSHFLILFDQDO\VLV:RUOG-6XUJ>3XE0HG@
/XFNPDQQ5,QFLGHQFHDQGFDVHIDWDOLW\UDWHVIRUDFXWHDSSHQGLFLWLVLQ&DOLIRUQLD$SRSXODWLRQEDVHGVWXG\RIWKHHIIHFWV
RIDJH$P-(SLGHPLRO
3LHSHU5DQG.DJHU/7KHLQFLGHQFHRIDFXWHDSSHQGLFLWLVDQGDSSHQGHFWRP\$QHSLGHPLRORJLFDOVWXG\RI
FDVHV$FWD&KLU6FDQG>3XE0HG@
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

3RVVLEOH)XQFWLRQV
%MHUNH.%UDQGW]DHJ3DQG5RJQXP72'LVWULEXWLRQRILPPXQRJOREXOLQSURGXFLQJFHOOVLVGLIIHUHQWLQQRUPDO
KXPDQDSSHQGL[DQGFRORQPXFRVD*XW>3XE0HG@
&UDLJ 6 : DQG &HEUD - -  5DEELW 3H\HU
V SDWFKHV DSSHQGL[ DQG SRSOLWHDO O\PSK QRGH % O\PSKRF\WHV D
FRPSDUDWLYHDQDO\VLVRIWKHLUPHPEUDQHLPPXQRJOREXOLQFRPSRQHQWVDQGSODVPDFHOOSUHFXUVRUSRWHQWLDO-,PPXQRO
>3XE0HG@
'DVVR-)DQG+RZHOO0'1HRQDWDODSSHQGHFWRP\LPSDLUVPXFRVDOLPPXQLW\LQUDEELWV&HOO,PPXQRO
>3XE0HG@
'DVVR - ) 2ELDNRU + %DFK + $QGHUVRQ $ 2 DQG 0DJH 5 *  $ PRUSKRORJLFDO DQG LPPXQRKLVWRORJLFDO
VWXG\RIWKHKXPDQDQGUDEELWDSSHQGL[IRUFRPSDULVRQZLWKWKHDYLDQEXUVD'HY&RPS,PPXQRO>3XE0HG@
1DJOHU$QGHUVRQ &  0DQ WKH EDUULHU 6WUDWHJLF GHIHQFHV LQ WKH LQWHVWLQDO PXFRVD 1DW 5HY ,PPXQRO  
>3XE0HG@
1HLEXUJHU - % 1HLEXUJHU 5 * 5LFKDUGVRQ 6 7 *URVIHOG - / DQG %DHKQHU 5 /  'LVWULEXWLRQ RI 7 DQG %
O\PSKRF\WHVLQO\PSKRLGWLVVXHRILQIDQWVDQGFKLOGUHQ,QIHFW,PPXQ>3XE0HG@
2
0DOO\&'DQG6DXQGHUV-%GH&0/HRQGDUGRGD9LQFLRQWKHKXPDQERG\WKHDQDWRPLFDOSK\VLRORJLFDO
DQGHPEU\RORJLFDOGUDZLQJVRI/HRQDUGRGD9LQFL*DQLVDQG+DUULV1HZ<RUN1<
3RVSLVLO5DQG0DJH5*5DEELWDSSHQGL[DVLWHRIGHYHORSPHQWDQGVHOHFWLRQRIWKH%FHOOUHSHUWRLUH&XUU7RS
0LFURELRO,PPXQRO>3XE0HG@
6ODYLQ -/ %UDXHU 30 DQG 0DUOHWW -$  1HXWUDO GHWHUJHQW ILEHU KHPLFHOOXORVH DQG FHOOXORVH GLJHVWLELOLW\ LQ
KXPDQVXEMHFWV-1XWU>3XE0HG@
6RPHNK(6HURXU)*RUHQVWHLQ$9RKO0DQG/HKPDQ'3KHQRW\SLFSDWWHUQRI%FHOOVLQWKHDSSHQGL[
UHGXFHGLQWHQVLW\RI&'H[SUHVVLRQ,PPXQRELRORJ\>3XE0HG@
6SHQFHU-)LQQ7DQG,VDDFVRQ3**XWDVVRFLDWHGO\PSKRLGWLVVXHDPRUSKRORJLFDODQGLPPXQRF\WRFKHPLFDO
VWXG\RIWKHKXPDQDSSHQGL[*XW>3XE0HG@

7D[RQRP\DQG6\VWHPDWLFV
*HRIIUR\ 6W +LODLUH  2EVHUYDWLRQV VXU O
DLOH GH O
$XWUXFKH SDU OH FLWR\HQ *HRIIUR\ LQ /D 'HFDGH (J\SWLHQQH
-RXUQDO/LWWHUDLUHHW'
(FRQRPLH3ROLWLTXH3UHPLHU9ROXPH$X.DLUHGH/
,PSUHLPHULH1DWLRQDOHSS
*RRGPDQ03RUWHU&$&]HOXVQLDN-3DJH6/6FKQHLGHU+6KRVKDQL-*XQQHOO*DQG*URYHV&3
7RZDUG D SK\ORJHQHWLF FODVVLILFDWLRQ RI 3ULPDWHV EDVHG RQ '1$ HYLGHQFH FRPSOHPHQWHG E\ IRVVLO HYLGHQFH 0RO
3K\ORJHQHW(YRO>3XE0HG@
.LWFKLQJ,-)RUH\3/+XPSKULHV&-DQG:LOOLDPV'0&ODGLVWLFVWKHWKHRU\DQGSUDFWLFHRISDUVLPRQ\
DQDO\VLV6HFRQGHGLWLRQ2[IRUG8QLYHUVLW\3UHVV1HZ<RUN1<
5HPDQH$'LH*UXQGODJHQGHV1DWXUOLFKHQ6\VWHPVGHU9HUJOHLFKHQGHQ$QDWRPLHXQGGHU3K\ORJHQHWLN*HHVW
XQG3RUWLJ.*/HLS]LJ*HUPDQ\
5LHSSHO2)XQGDPHQWDOVRIFRPSDUDWLYHELRORJ\%LUNKlXVHU9HUODJ%RVWRQ
6FKXK57%LRORJLFDOV\VWHPDWLFVSULQFLSOHVDQGDSSOLFDWLRQV&RUQHOO8QLYHUVLW\3UHVV,WKDFD1<
6KRVKDQL - *URYHV & 3 6LPRQV ( / DQG *XQQHOO * )  3ULPDWH SK\ORJHQ\ PRUSKRORJLFDO YV PROHFXODU
UHVXOWV0RO3K\ORJHQHW(YRO>3XE0HG@
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

6KRVKDQL-DQG0F.HQQD0&+LJKHUWD[RQRPLFUHODWLRQVKLSVDPRQJH[WDQWPDPPDOVEDVHGRQPRUSKRORJ\

ZLWKVHOHFWHGFRPSDULVRQVRIUHVXOWVIURPPROHFXODUGDWD0RO3K\ORJHQHW(YRO>3XE0HG@

&RPSDUDWLYH$QDWRP\RIWKH$SSHQGL[
%HUU\5-$7KHWUXHFDHFDODSH[RUWKHYHUPLIRUPDSSHQGL[,WVPLQXWHDQGFRPSDUDWLYHDQDWRP\-$QDW3K\VLRO

)LVKHU5(7KHSULPDWHDSSHQGL[DUHDVVHVVPHQW$QDW5HF>3XE0HG@
+LOO:&2VPDQ3ULPDWHVFRPSDUDWLYHDQDWRP\DQGWD[RQRP\,QWHUVFLHQFH3XEOLVKHUV1HZ<RUN1<
+\PDQ/++\PDQ
V&RPSDUDWLYHYHUWHEUDWHDQDWRP\0DUYDOHH+:DNHHGLWRU7KLUGHGLWLRQ8QLYHUVLW\RI
&KLFDJR3UHVV&KLFDJR,/
.DUGRQJ.99HUWHEUDWHV&RPSDUDWLYHDQDWRP\IXQFWLRQHYROXWLRQ7KLUGHGLWLRQ0F*UDZ+LOO1HZ<RUN
1<
.OXJH$*&KRUGDWHVWUXFWXUHDQGIXQFWLRQ0DFPLOODQ1HZ<RUN1<
1HDO+9DQG5DQG+:&RPSDUDWLYHDQDWRP\3%ODNLVWRQ
V6RQDQG&R3KLODGHOSKLD3$
5RPHU$6DQG3DUVRQV767KHYHUWHEUDWHERG\6L[WKHGLWLRQ6DXQGHUV&ROOHJH3XE3KLODGHOSKLD3$
6FRWW*%7KHSULPDWHFDHFXPDQGDSSHQGL[YHUPLIRUPLVDFRPSDUDWLYHVWXG\-$QDW>3XE0HG@
6PLWK + 0  (YROXWLRQ RI FKRUGDWH VWUXFWXUH DQ LQWURGXFWLRQ WR FRPSDUDWLYH DQDWRP\ +ROW 5LQHKDUW DQG
:LQVWRQ1HZ<RUN1<
:HLFKHUW&.(OHPHQWVRIFKRUGDWHDQDWRP\7KLUGHGLWLRQ0F*UDZ+LOO1HZ<RUN1<
:LHGHUVKHLP5(OHPHQWVRIWKHFRPSDUDWLYHDQDWRP\RIYHUWHEUDWHVWUDQVODWHGE\:1HZWRQ3DUNHU0DFPLOODQ
1HZ<RUN1<
:ROII5*)XQFWLRQDOFKRUGDWHDQDWRP\'&+HDWK/H[LQJWRQ0$

3UHYHQWLRQRI8OFHUDWLYH&ROLWLV
$QGHUVVRQ5(2ODLVRQ*7\VN&DQG(NERP$$SSHQGHFWRP\DQGSURWHFWLRQDJDLQVWXOFHUDWLYHFROLWLV1
(QJO-0HG>3XE0HG@
%XHUJHO 1 6FKXO]NH - ' DQG =HLW] 0  $SSHQGHFWRP\ UHGXFHV WKH ULVN RI GHYHORSPHQW RI XOFHUDWLYH FROLWLV
&KLUXUJ>3XE0HG@
-XGJH7DQG/LFKWHQVWHLQ*5,VWKHDSSHQGL[DYHVWLJLDORUJDQ",WVUROHLQXOFHUDWLYHFROLWLV*DVWURHQWHURORJ\
>3XE0HG@
.RXWURXEDNLV,(DQG9ODFKRQLNROLV,*$SSHQGHFWRP\DQGWKHGHYHORSPHQWRIXOFHUDWLYHFROLWLVUHVXOWVRID
PHWDDQDO\VLVRISXEOLVKHGFDVHFRQWUROVWXGLHV$P-*DVWURHQWHURO>3XE0HG@
.RXWURXEDNLV , ( 9ODFKRQLNROLV , * DQG .RXURXPDOLV ( $  5ROH RI DSSHQGLFLWLV DQG DSSHQGHFWRP\ LQ WKH
SDWKRJHQHVLVRIXOFHUDWLYHFROLWLVDFULWLFDOUHYLHZ,QIODPP%RZHO'LV>3XE0HG@
1DJDQXPD 0 ,L]XND % 7RULL $ 2JLKDUD 7 .DZDPXUD < ,FKLQRVH 0 .RMLPD < DQG +LEL 7 
$SSHQGHFWRP\ SURWHFWV DJDLQVW WKH GHYHORSPHQW RI XOFHUDWLYH FROLWLV DQG UHGXFHV LWV UHFXUUHQFH UHVXOWV RI D PXOWLFHQWHU
FDVHFRQWUROOHGVWXG\LQ-DSDQ$P-*DVWURHQWHURO>3XE0HG@
5XWJHHUWV 3 '
+DHQV * +LHOH 0 *HERHV . DQG 9DQWUDSSHQ *  $SSHQGHFWRP\ SURWHFWV DJDLQVW XOFHUDWLYH
KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

FROLWLV*DVWURHQWHURORJ\>3XE0HG@

3RWHQWLDO7LHV%HWZHHQ$SSHQGLFLWLVDQG&DQFHU
$QGHUVHQ ( DQG ,VDJHU +  3UHPRUELG IDFWRUV LQ +RGJNLQ
V GLVHDVH ,, %&*YDFFLQDWLRQ VWDWXV WXEHUFXORVLV
LQIHFWLRXVGLVHDVHVWRQVLOOHFWRP\DQGDSSHQGHFWRP\6FDQG-+DHPDWRO>3XE0HG@
*OHGRYLF = DQG 5DGRYDQRYLF =  +LVWRU\ RI WRQVLOOHFWRP\ DQG DSSHQGHFWRP\ LQ +RGJNLQ
V GLVHDVH (XU (SLGHPLRO>3XE0HG@
0HOOHPNMDHU/-RKDQVHQ&/LQHW06*ULGOH\*DQG2OVHQ-+&DQFHUULVNIROORZLQJDSSHQGHFWRP\IRU
DFXWHDSSHQGLFLWLV'HQPDUN&DQFHU&DXVHV&RQWURO>3XE0HG@

&RQJHQLWDO$EVHQFHRIWKH$SSHQGL[
$Q\DQZX61$JHQHVLVRIWKHDSSHQGL[FDVHUHSRUW:HVW$IU-0HG>3XE0HG@
&KHYUH)*LOOHW0DQG9XLOOHXPLHU+$JHQHVLVRIWKHYHUPLIRUPDSSHQGL[6XUJ/DSDURVF(QGRVF3HUFXWDQ
7HFK>3XE0HG@
&ROOLQV'&$VWXG\RIVSHFLPHQVRIWKHKXPDQYHUPLIRUPDSSHQGL[6XUJ*\QHFRO2EVWHW
>3XE0HG@
+HL(/&RQJHQLWDODEVHQFHRIWKHYHUPLIRUPDSSHQGL[$1=-6XUJ>3XE0HG@
+RVW:+5XVK%DQG/D]DUR(-&RQJHQLWDODEVHQFHRIWKHYHUPLIRUPDSSHQGL[$P6XUJ
>3XE0HG@
,XFKWPDQ0$XWRDPSXWDWLRQRIDSSHQGL[DQGWKH
DEVHQW
DSSHQGL[$UFK6XUJ>3XE0HG@
.DO\VKHY,*$QGUHHY*).ROHQGD,9DQG0XVWLDWVD9,$EVHQFHRIWKHDSSHQGL[.OLQ.KLU
>3XE0HG@
0DQRLO/&RQJHQLWDODEVHQFHRIWKHDSSHQGL[$P-6XUJ>3XE0HG@
3HVWHU*+&RQJHQLWDODEVHQFHRIWKHYHUPLIRUPDSSHQGL[$UFK6XUJ>3XE0HG@
3LTXHW ) (OPDOH & DQG (OKDGDG $  $EVHQFH RI WKH DSSHQGL[ $SURSRV RI D FDVH - &KLU 3DULV  
>3XE0HG@
3RQRPDUHQNR91DQG1RYLNRYD1$5DUHFDVHRIDEVHQFHRIWKHYHUPLIRUPDSSHQGL[9HVWQ.KLU,P,,*UHN
>3XE0HG@
5ROII0-HSVHQ/9DQG+RIIPDQQ-7KH
DEVHQW
DSSHQGL[$UFK6XUJ>3XE0HG@
6DDYH--$EVHQFHRIWKHYHUPLIRUPDSSHQGL[UHSRUWRIDFDVHGLVFRYHUHGDWQHFURSV\$FWD$QDW%DVHO
>3XE0HG@
6KSHUEHU-+DOHY\$6D\IDQ-DQG2ODQG-&RQJHQLWDODEVHQFHRIWKHYHUPLIRUPDSSHQGL[,VU-0HG6FL
>3XE0HG@
7LOVRQ0'DQG7RXORXNLDQ5-$JHQHVLVRIWKHYHUPLIRUPDSSHQGL[-3HGLDWU6XUJ>3XE0HG@

SDJHUDQN 

KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO





9HVWLJLDOLW\RIWKHKXPDQDSSHQGL[

+RPH3DJH_%URZVH_6HDUFK_)HHGEDFN_/LQNV
7KH)$4_0XVW5HDG)LOHV_,QGH[_&UHDWLRQLVP_(YROXWLRQ_$JHRIWKH(DUWK_)ORRG*HRORJ\_
&DWDVWURSKLVP_'HEDWHV

KWWSZZZWDONRULJLQVRUJIDTVYHVWLJHVDSSHQGL[KWPO