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This paper aims to investigate whether all-equity firms are a heterogeneous group as it relates to agency costs when compared to a matched sample of levered firms and to…
This paper aims to investigate whether all-equity firms are a heterogeneous group as it relates to agency costs when compared to a matched sample of levered firms and to contribute toward the understanding of the “low leverage” puzzle and the motivations behind such a perplexing phenomenon.
Propensity score matching (PSM) is used to control for endogeneity issues common to this line of research. Because all-equity firms are self-selecting, it is not possible to conduct a true randomized study. PSM attempts to simulate a randomized study by selecting matching observations with similar propensity scores as the all-equity observations.
Agency costs are not the only explanation leading to the implementation of an all-equity capital structure. The motivation of such structure is strongly influenced by free cash flows (FCF) and growth opportunities (GO), whereby firms that have high levels FCF combined with low GO exhibit higher levels of agency costs versus their levered peers, while those that have low levels of FCF and high GO exhibit no significant difference in agency costs.
A better understanding of why a firm chooses such an extreme capital structure can help investors, auditors and potential future creditors in their decision-making process.
Most prior research treats capital structure as an exogenous variable. By applying PSM, not previously used in prior research, a new methodology is used to address the endogeneity issue related to observational studies such as this one. This paper contributes toward further understanding the perplexing “low-leverage” puzzle often discussed in the financial and accounting literature.
East Asian industrializations and the crisis of Latin American developmentalism in the 1970s and 1980s have been at the center of disputes over the conditions leading to a…
East Asian industrializations and the crisis of Latin American developmentalism in the 1970s and 1980s have been at the center of disputes over the conditions leading to a socially optimal extension and intensification of capitalist production relations in the periphery. The contrast in regional styles and outcomes of development is deemed to be the key to a final adjudication between the competing analytical claims of neoclassical economists and statist currents within political economy. Neoclassical critiques of excessive Latin American tampering with markets find confirmation for neoliberal prescriptions in the open, export‐oriented East Asian regimes. That East Asian development is not a paragon of neoliberal virtue, and that relatively freer markets might not be the most important part of the story, is the crux of the enduring statist critique. Over a decade of contestation has given way to significant refinements, among them, a recognition of the importance of sequencing import‐and export‐substitution. The modicum of foresight and discipline that seems to be implied in proper sequencing has weighed in favor of the statist emphasis on the role of ‘developmental states.’ Even researchers disposed to enshrine the virtues of markets in the process of modernization, find it difficult not to concede that the East Asian record rests on more than macroeconomic stability; although they remain skeptical about the cruder claims of states successfully ‘picking winners and losers’ (Dollar and Sokoloff 1994). Perhaps the most enduring legacy of this controversy—only extreme zealots could deny this—is the mounting empirical evidence supporting the argument that economic development is an inherently discontinuous process, and reliance on the market institution leaves societies woefully unprepared to ‘negotiate’ through an unstable and asymmetrical international political economy.
Community-based fire management (CBFiM) integrates community action with the standard elements of fire management and mitigation, such as prescribed fire (managed…
Community-based fire management (CBFiM) integrates community action with the standard elements of fire management and mitigation, such as prescribed fire (managed beneficial fires for reducing hazardous fuel loads, controlling weeds, preparing land for cultivation, reducing the impact of pests and diseases, etc.), mechanical fuel treatment, defensible space planning, wildfire awareness and prevention, preparedness planning, and suppression of wildfires. In developed examples of CBFiM, communities are empowered to have effective input into land and fire management and problem solving and to self regulate to respond to fire and other emergencies. Its premise is that local people usually have most at stake in the event of a harmful fire, so they should clearly be involved in mitigating these unwanted events.
This chapter uncovers the destabilizing and transformative dimensions of a legal process commonly described as assimilation. Lawyers working on behalf of a marginalized group often argue that the group merits inclusion in dominant institutions, and they do so by casting the group as like the majority. Scholars have criticized claims of this kind for affirming the status quo and muting significant differences of the excluded group. Yet, this chapter shows how these claims may also disrupt the status quo, transform dominant institutions, and convert distinctive features of the excluded group into more widely shared legal norms. This dynamic is observed in the context of lesbian, gay, bisexual, and transgender (LGBT) rights, and specifically through attention to three phases of LGBT advocacy: (1) claims to parental recognition of unmarried same-sex parents, (2) claims to marriage, and (3) claims regarding the consequences of marriage for same-sex parents. The analysis shows how claims that appeared assimilationist – demanding inclusion in marriage and parenthood by arguing that same-sex couples are similarly situated to their different-sex counterparts – subtly challenged and reshaped legal norms governing parenthood, including marital parenthood. While this chapter focuses on LGBT claims, it uncovers a dynamic that may exist in other settings.
Construction projects usually suffer delays, and the causes of these delays and its cost overruns have been widely discussed, the weather being one of the most recurrent…
Construction projects usually suffer delays, and the causes of these delays and its cost overruns have been widely discussed, the weather being one of the most recurrent. The purpose of this paper is to analyze the influence of climate on standard construction work activities through a case study.
By studying the extent at which some weather variables impede outdoor work from being effectively executed, new maps and tables for planning for delays are presented. In addition, a real case regarding the construction of several bridges in southern Chile is analyzed.
Few studies have thoroughly addressed the influences of major climatic agents on the most common outdoor construction activities. The method detailed here provides a first approximation for construction planners to assess to what extent construction productivity will be influenced by the climate.
Although this study was performed in Chile, the simplified method proposed is entirely transferable to any other country, however, other weather or combinations of weather variables could be needed in other environments or countries.
The implications will help reducing the negative social, economic and environmental outcomes that usually emerge from project delays.
Climatic data were processed using extremely simple calculations to create a series of quantitative maps and tables that would be useful for any construction planner to decide the best moment of the year to start a project and, if possible, where to build it.