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Using a sample of US firms more likely to be affected by agency problems, the purpose of this paper is to investigate the relationship between corporate value and financial policies and to study whether credit market freedom (CMF) affects this relationship.

The authors identify a sub-sample of non-financial US firms potentially affected by agency problems using a joint criterion of over-investment and high cash-holdings. A generalized method of moment econometric framework is then used to estimate the impact of cash-holdings and leverage policies on firm value for this sub-sample. This exercise is also performed by taking into account the level of CMF of the state where the firm operates.

The results show that the relationship between cash-holdings – or leverage – and firm value is “U-shaped.” In addition, when the authors focus on the role played by the level of CMF, the authors find a number of interesting facts: CMF facilitates the firms’ access to external finance, thereby relaxing the need of internal funds for investing; the relationship between cash-holdings and firm value is “U-shaped” only in states enjoying high levels of CMF; the probability of observing firms more likely to be affected by agency problems is higher in states with high levels of CMF.

The empirical findings provide important insights to policymakers, shareholders and practitioners. To policymakers, the results suggest that providing institutional environments with greater CMF can enhance the firm access to external finance, the level of corporate investment and the economic growth. To shareholders, the findings highlight that the conflicts of interest between managers and shareholders may be more severe in states with higher CMF; therefore, adequate financing policies and corporate governance mechanisms must be used to mitigate these conflicts and maximize the firm value. Finally, to practitioners, the evidence suggests that, in valuing a firm, they must take into consideration whether the economic environment provides managers with more freedom to stockpile cash and invest sub-optimally.

The paper contributes to the corporate finance and governance literature in two respects. First, it provides new evidence on the shape of the relationship between cash holdings and firm value for firms affected by empire-building managers. Second, at the best of the knowledge, it is the first corporate finance study, which analyzes the role played by the CMF at the state level on the capital structure and the level of investment of the firms.

The purpose of this study is to explore the feasibility of utilizing agricultural (almond shell, rice husk and wood) waste biochars for partial cement replacement by evaluating the relationships between the physiochemical properties of biochars and the early-age characteristics of cement pastes.

Biochars are prepared through the thermal decomposition of biomass in an inert atmosphere. Using varying percentages, biochars are used to replace ordinary Portland cement (OPC) in cement pastes at a water/binder ratio of 0.35. Characterization methods include XPS, FTIR, SEM, TGA, BET, Raman, loss-on-ignition, setting, compression and water absorption tests.

Accelerated setting in biochar-modified cement pastes is attributed to chemical interactions between surface functional groups of biochars and calcium cations from OPC, leading to the early development of metal carboxylate and alkyne salts, alongside the typical calcium-silicate-hydrate (C-S-H). Also, metal chlorides such as calcium chlorides in biochars contribute to the accelerate setting in pastes. Lower compression strength and higher water absorption result from weakened microstructure due to poor C-S-H development as the high carbon content in biochars reduces water available for optimum C-S-H hydration. Amorphous silica contributes to strength development in pastes through pozzolanic interactions. With its optimal physiochemical properties, rice-husk biochars are best suited for cement replacement.

While biochar parent material properties have an impact on biochar properties, these are not investigated in this study. Additional investigations will be conducted in the future.

Carbon/silicon ratio, oxygen/carbon ratio, alkali and alkaline metal content, chlorine content, carboxylic and alkyne surface functional groups and surface areas of biochars may be used to estimate biochar suitability for cement replacement. Biochars with chlorides and reactive functional groups such as C=C and COOH demonstrate potential for concrete accelerator applications. Such applications will speed up the construction of concrete structures and reduce overall construction time and related costs.

Reductions in OPC production and agricultural waste deterioration will slow down the progression of negative environmental and human health impacts. Also, agricultural, manufacturing and construction employment opportunities will improve the quality of life in agricultural communities.

Empirical findings advance research and practice toward optimum utilization of biomass in cement-based materials.

This study examines the impact of initial informality years on subsequent firm performance and the moderating effect of institutional quality on this relationship.

The study draws on the World Bank Enterprises Survey (WBES) data covering 116 developing economies over the 2006–2018 period. The study also utilizes data from the Heritage Foundation, the World Bank World Development Indicators (WDI) and the Fraser Institute Economic Freedom Database.

The study demonstrates that firms that start operation without formal registration perform better than firms that start operation formally. However, contrary to prior studies that show a linear relationship between time spent unregistered and subsequent firm performance, this study finds a non-monotonic relationship between the two – taking an inverted–U shape form. The study further shows that institutional quality at country level moderates this relationship such that firms operating in countries marked by poorly functioning formal institutions benefit from remaining unregistered longer.

This study is the first to show a non-monotonic relationship between the time firms spend without registration and their subsequent performance. By doing so, it reconciles the contradicting findings in the extant literature regarding the relationship between the two variables. It also identifies one important boundary condition – institutional quality – that moderates this relationship.