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1 – 3 of 3Frédéric Godart, Kim Claes and Stoyan V. Sgourev
Drawing on sociolinguistics, this chapter proposes an encoding–decoding perspective on evaluation, conceptualizing codes as interpretive schemas that are encoded by firms and…
Abstract
Drawing on sociolinguistics, this chapter proposes an encoding–decoding perspective on evaluation, conceptualizing codes as interpretive schemas that are encoded by firms and decoded by audiences. A key element in this process is code complexity, denoting combinations of interdependent elements. We demonstrate that the evaluation of code complexity depends on the type of audience (professionals and laypersons) and the type of complexity (technological and aesthetic). We analyze the attribution of awards by professionals and the public in luxury watchmaking, featuring three mechanisms: the social embeddedness of audiences, their motivation for evaluation and supply-and-demand matching. The results attest to significant differences in the evaluation of technological and aesthetic code complexity by professionals and laypersons. There is a premium attributed to aesthetic code complexity by professionals and a premium attributed to technological complexity by laypersons. Finding the right type and level of code complexity to pursue in their offerings is a key strategic challenge for producers.
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This research investigates yield spreads between traditional preferred and a new type of tax-deductible preferred that is essentially a form of debt upon which the issuer has some…
Abstract
This research investigates yield spreads between traditional preferred and a new type of tax-deductible preferred that is essentially a form of debt upon which the issuer has some rights to defer payments. Risk-adjusted pretax yields on the tax-deductible preferred are empirically found to be only slightly higher than those on traditional preferred, and only for highgrade or liquid issues, while they are discovered to be insignificantly different from those on bonds. The results imply that large after-tax yield advantages exist for corporate investors to hold traditional preferred and for corporate issuers to finance with the tax-deductible preferred if they can afford the greater liquidity and bankruptcy risk, respectively.