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Building upon the framework of the tradeoff model of capital structure and motivated by the equity market timing theory, we examine whether equity misvaluation is a source…
Building upon the framework of the tradeoff model of capital structure and motivated by the equity market timing theory, we examine whether equity misvaluation is a source of adjustment “costs” that will affect a firm’s leverage adjustment speed toward target. We also investigate whether the quality of a firm’s long-term growth options will influence the decisions of managers to exploit the mispriced equity to converge to the optimum. Using a sample of listed Taiwanese firms during 1992–2014 and employing the market-to-book decomposition as developed by Rhodes-Kropf, Robinson, and Viswanathan (2005), we find that overleveraged and overvalued firms demonstrate faster adjustment speed than overleveraged but undervalued firms. Furthermore, controlling for the misvaluation status, high-growth firms converge to target faster than their low-growth counterparts. The effect of growth options on the relation between equity mispricing and adjustment speed does not mirror the effect of financing deficits. With the detailed financial information of the local companies across a rather long time series, this study provides incremental inputs to the literature of capital structure from the determinants of target leverage, the estimation of leverage adjustment speeds, to the identification of the sources of adjustment costs in an emerging market where institutional environment is strikingly different from the US.
The effects of anisotropy and radiation cannot be considered negligible while investigating the stability of the fluid in convection. Hence, the purpose of this paper is…
The effects of anisotropy and radiation cannot be considered negligible while investigating the stability of the fluid in convection. Hence, the purpose of this paper is to analyze how these effects could affect the system while considering a couple-stress dielectric fluid. Therefore, the study establishes the effect of thermal radiation in a couple-stress dielectric fluid with an anisotropic porous medium using Goody's approach (Goody, 1956).
To analyze the effect of radiation on the onset of convection, the Milne–Eddington approximation is employed to convert radiative heat flux to thermal heat flux. The equations are further developed to approximate for transparent and opaque medium. Stability of the quiescent state within the framework of linear theory is performed. The principle of exchange of stabilities is shown to be valid by means of single-term Galerkin method. Large values of conduction–radiation and absorptivity parameters are avoided as fluid is considered as liquid rather than gas.
The radiative heat transfer effect on a couple-stress dielectric fluid saturated anisotropic porous medium is examined in terms of Milne–Eddington approximation. The effect of couple-stress, dielectric, anisotropy and radiation parameters are analyzed graphically for both transparent and opaque medium. It is observed that the conduction–radiation parameter stabilizes the system; in addition, the critical Darcy–Rayleigh number also shows a stabilizing effect in the absence of couple-stress, dielectric and anisotropy parameters, for both transparent and opaque medium. Furthermore, the absorptivity parameter stabilizes the system in the transparent medium, whereas it exhibits a dual effect in the case of an opaque medium. It was also found that an increase in thermal and mechanical anisotropy parameters shows an increase in the cell size, whereas the increase in Darcy–Roberts number and conduction–radiation parameter decreases the cell size. The validity of principle of exchange of stability is performed and concluded that marginal stability is the preferred mode than oscillatory.
The effects of anisotropy and radiation on Rayleigh–Bénard convection by considering a couple-stress dielectric fluid has been analyzed for the first time.
I study the determinants of conventional leverage in a sample of publicly listed corporations based in Saudi Arabia, United Arab Emirates, and Qatar, for a period spanning…
I study the determinants of conventional leverage in a sample of publicly listed corporations based in Saudi Arabia, United Arab Emirates, and Qatar, for a period spanning from 2005 up to end of 2014, and investigate whether those determinants can also explain the utilization of Sukuk by the same corporations in their capital structures. Evidence related to the determinants of conventional leverage is consistent with results from prior studies conducted on corporations based in developed and developing countries. Firm’s size, profitability, tangibility, age, and tendency to pay dividends are significant determinants of conventional leverage. However, not all those factors significantly explain the utilization of Sukuk as a financing vehicle. The size of the firm remains to be the most significant factor, in addition to the conformance of those corporations with respect to Shari’a principles measured by their utilization of other Islamic investments and financing instruments. Overall, I conclude that models used to predict conventional leverage are not capable of fully explaining the determinants of Sukuk issuances.
This paper investigates the capital structure of a large sample of U.S. private firms from 2004 to 2013. There is a considerable heterogeneity in private firm capital…
This paper investigates the capital structure of a large sample of U.S. private firms from 2004 to 2013. There is a considerable heterogeneity in private firm capital structure not only in terms of the level of leverage but also with regard to the issuance of specific debt instruments. Leverage, debt type usage, and debt specialization are dynamic and strongly related to observable firm characteristics largely in support of contract theory. Unobservable firm and industry characteristics are strong determinants of leverage levels and debt specialization. Macro credit conditions are not related to private firm leverage but are strong determinants of the degree to which firms diversify their debt capital structures.
Purpose: In reality, financial decisions are made under conditions of asymmetric information that results in either favorable or adverse selection. As far as financial…
Purpose: In reality, financial decisions are made under conditions of asymmetric information that results in either favorable or adverse selection. As far as financial decisions affect growth of the firm, the latter must also be affected by either favorable or adverse selection. Therefore, the core objective of this chapter is to examine the determinants of each financial decision and the effects on growth of the firm under conditions of information asymmetry.
Design/Methodology/Approach: This chapter uses data for the non-financial firms listed in S&P 500. The data cover quarterly periods from 1989 to 2014. The statistical tests include linearity, fixed, and random effects and normality. The generalized method of moments estimation method is employed in order to examine the relative significance and contribution of each financial decision on growth of the firm, respectively. Standard and proposed proxies of information asymmetry are discussed.
Findings: The results conclude that there is a variation in the impact of financial variables on growth of the firm at high and low levels of information asymmetry especially regarding investment and financing decisions. A similar picture emerges in the cases of firm size and industry effects. In addition, corporate dividen d policy has a similar effect on firm growth across all asymmetric levels. These findings prove that information asymmetry plays a vital role in the relationship between corporate financial decisions and growth of the firm. Finally, the results contribute to the vast literature on the estimation of information asymmetry by demonstrating that the classical and standard proxies for information asymmetry are not consistent in terms of the ability to differentiate between favorable or adverse selection (which corresponds to low and high level of information asymmetry).
Originality/Value: This chapter contributes to the related literature in two ways. First, this chapter offers updated empirical evidence on the way that financing, investment, and dividends decisions are made under conditions of favorable and adverse selection. Other related studies deal with each decision separately. Second, the study offers new proxies for measuring information asymmetry in order to reach robust estimates of the effects of financial decisions on growth of the firm under conditions of agency problems.
I now pass on to an aspect of calcium metabolism which is more topical, but probably more controversial. I refer to the incidence of calcium deficiency. By what means can we determine if people are getting enough, too much, or too little calcium? It is the last condition which concerns us. There are four standard methods. Each have their advantages and their disadvantages. They are (i) a clinical examination; (ii) a dietary survey; (iii) a radiographic examination of the skeleton ; (iv) A study of the calcium balance. (i) The clinical examination is the simplest, but it is the least sensitive method for determining either the early or the mild stages of calcium deficiency. The clinical signs are a softening and bending of the bones (osteomalacia), brittle bones liable to fracture, and tetany. These, however, are signs of late or advanced calcium deficiency, and failure to detect them does not imply that the subject is having enough calcium. Nevertheless, in this country osteomalacia and tetany due to a poor calcium intake have been reported. (ii) A dietary survey is the second method. Before the war several surveys were made, in this country and in America. From their findings there was agreement among reliable authorities that calcium deficiency was present in large sections of the population. Orr has divided the population of this country into six groups according to income. The three lower groups with a total population of over 22,000,000, he found, were getting insufficient calcium. It was shown first, that the consumption of the low calcium foods such as bread and potatoes was practically uniform throughout the classes, and secondly, that the consumption of the calcium‐rich foods, milk, eggs, cheese, green vegetables was low in the poorer classes and rose with income. As income increased the following improvements occurred—disease decreased; children grew more quickly; adult stature was greater; general health and physique improved. It may be argued, that the improvement in health in the higher income groups was due not to better food, but to better housing. This is not so. For, if people in the lower income groups are only given better food, their health approaches that of the higher income groups. Then there are the observations of Dr. McGonigle at Stockton‐on‐Tees. A slum clearance resulted in the removal of poor people to better houses and improved living conditions. The sickness rate increased. Why? Because the higher rents of the new houses prevented these people spending as much money on food as they did when they lived in the slums. Dietary surveys before the war, therefore, support the belief that many people in this country were getting too little calcium. As most of our staple foods have a low calcium content, it follows that the absence of hunger does not necessarily mean the absence of calcium deficiency. (iii) Radiographic examination of the skeleton is the third method. Unfortunately X‐rays of the bone density of the trabeculæ do not readily give an indication of its calcium content unless the decalcification is severe. If we may judge by thyrotoxicosis, where there is an increased loss of calcium from the body, X‐rays show the decalcification only in the most severe 25 per cent. of cases. Radiographic studies will detect however an excessive withdrawal of calcium from the skeleton, before such clinical signs as softening of bones, brittle bones, and tetany develop. In this country there is radiographic evidence of decalcification resulting from low calcium intakes. (iv) Finally there are the observations on the calcium balance. Earlier in this paper it was stated that a normal healthy person requires to ingest 0·55 gram of calcium daily to avoid persistently losing calcium from his skeleton. A daily dose of 0·55 gram calcium then produces calcium equilibrium, and intake equals output. It has also been stated that a daily intake of 0·8 gram is the minimum amount of calcium which will bring about the maximum storage. In other words no matter how much in excess of 0·8 gram calcium daily a healthy adult ingests, he will not store any more calcium than he would if he were taking 0·8 gram. These facts provide us with two means of determining whether calcium deficiency is present or not. Calcium deficiency is present if the figure for calcium equilibrium falls significantly below 0·55 gram daily. Calcium deficiency is present if more storage of calcium takes place with intakes above 0·8 gram daily, than at 0·8 gram daily. Is there any evidence from calcium balance studies in this country that calcium deficiency exists? There is evidence. I have just described the methods which are available for determining whether calcium deficiency is present or not. I believe, on the evidence obtained from all four methods, that, before the war, a large proportion of people in this country were taking too little calcium. I would like at this point to digress for a moment. There are certain people who would have us believe that clinical and radiographic evidence is essential to prove the presence of calcium deficiency. As I have explained, these methods only showed the advanced stages. I reply: “ Must we wait for secondary deposits in the liver, extreme emaciation, ascites, before diagnosing cancer ?”
The mid-1990s marked a paradigm shift in the way physical activity is promoted, and walking is now considered the most suitable type of physical activity for widespread promotion. Accurate measurement underpins public health practice, hence the aims of this chapter are to: (1) provide a typology for the measurement of walking; (2) review methods to assess walking; (3) present challenges in defining walking measures; (4) identify issues in selecting instruments for the evaluation of walking and (5) discuss current efforts to overcome measurement challenges and methodological limitations. The taxonomy of walking indicates that secondary purpose walking is a more complex set of behaviours than primary purpose walks. It has many purposes and no specific domain or intensity, may lack regularity, and therefore poses greater measurement challenges. Objective measurement methods, such as accelerometers, pedometers, smartphones and other electronic devices, have shown good approximation for walking energy expenditure, but are indirect methods of walking assessment. Global Positioning System technology, the ‘Smartmat’ and radio-frequency identification tags are potential objective methods that can distinguish walkers, but also require complex analysis, are costly, and still need their measurement properties corroborated. Subjective direct methods, such as questionnaires, diaries and direct observation, provide the richest information on walking, especially short-term diaries, such as trip records and time use records, and are particularly useful for assessing secondary purpose walking. A unifying measure for health research, surveillance and health promotion would strongly advance the understanding of the impact of walking on health.
The purpose of this study is to identify the prescribed formative elements of supply chain resilience (SCR) in literature, to compare them with the unique characteristics…
The purpose of this study is to identify the prescribed formative elements of supply chain resilience (SCR) in literature, to compare them with the unique characteristics of high reliability organisations (HROs) and derive lessons useful for improving SCR.
Two systematic literature reviews are carried out as follows: one on SCR and the other on HRO, which identified 107 studies and 18 papers, respectively. The results from the review are presented, analysed and synthesised.
Findings suggest that despite significant similarities in some of the proposed formative elements for SCR and the characteristics of HROs, the strong managerial commitment exhibited in HROs is absent in SCR literature. More importantly, the most cited characteristic of HROs, which is their flexible decision making structure is pointed out as a prima lesson towards developing resilience in supply chains.
A decision making framework to facilitate flexible decision making for supply chains during crisis is presented. Further, practical lessons are pointed out from principles common to both streams of literature such as redundancy, human resource management, collaboration, agility, flexibility, culture and risk avoidance that can be implemented in supply chains.
This paper is the first study to systematically review HROs, adapt a HRO decision making framework and also apply the Cynefin framework to SCR. This, therefore, provides the basis to launch further research into the use of these theories and the role of decision-making in SCR creation.
Rural Australian patients continue to receive inadequate medical attention. One potential solution to this is to train Indigenous Australians to become medical doctors and…
Rural Australian patients continue to receive inadequate medical attention. One potential solution to this is to train Indigenous Australians to become medical doctors and return to their community to serve their people. The study aims to examine whether Indigenous medical students have a stronger intention to practice in underserved communities.
A sample of Indigenous (N = 17) and non-Indigenous students (N = 188) from a medical program in Sydney was surveyed about their medical self-concept and motivation. Confirmatory factor analysis (CFA) was conducted, group differences were tested, and correlation patterns were examined.
CFA found seven distinct factors – three medical self-concepts (affective, cognitive, and cultural competence), one motivation factor, and three work-related variables – intention to serve underserved communities (intention), understanding of Indigenous health (understanding), and work-related anxiety (anxiety). Indigenous medical students were higher in cultural competence, intention, and understanding. Both the affective and cognitive components of medical self-concept were more highly correlated with intention and understanding for Indigenous students than for non-Indigenous students.
It is important to examine medical students’ self-concepts as well as their cultural characteristics and strengths that seed success in promoting service to underserved Indigenous communities.
The findings show that Indigenous medical students tended to understand Indigenous health issues better and to be more willing to serve underserved Indigenous communities. By enhancing both the affective and cognitive components of medical self-concepts, the “home-grown” medical education program is more likely to produce medical doctors to serve underserved communities with a good understanding of Indigenous health.