The Main Agency Problems and Their Consequences
... the other two are incurred only to the extent that they yield cost-effective reductions in the residual loss. The shift out of profits into managerial discretion, induced by a dilution of ownership, is responsible for this loss. Monitoring expenditures and bonding expenditures can help to restore pe ...
... the other two are incurred only to the extent that they yield cost-effective reductions in the residual loss. The shift out of profits into managerial discretion, induced by a dilution of ownership, is responsible for this loss. Monitoring expenditures and bonding expenditures can help to restore pe ...
Determinants of Financial Leverage in Indian Pharmaceutical Industry
... De angelo and Mansuil (1980) demonstrated that with the presence of corporate tax shield substitutes for debt (e.g depreciation, depletion, amortization and investment tax credits) each firm can have an unique interior optimum leverage decision with or without leverage related costs ...
... De angelo and Mansuil (1980) demonstrated that with the presence of corporate tax shield substitutes for debt (e.g depreciation, depletion, amortization and investment tax credits) each firm can have an unique interior optimum leverage decision with or without leverage related costs ...
Ending over-lending: assessing systemic risk with - ECB
... country-level early-warning indicators. While the debt-to-income ratio has commonly been used to illustrate the association between high leverage and losses in credit and output, consumption versus savings decisions are over-looked. This shortcoming can be illustrated by way of a simple example. Say ...
... country-level early-warning indicators. While the debt-to-income ratio has commonly been used to illustrate the association between high leverage and losses in credit and output, consumption versus savings decisions are over-looked. This shortcoming can be illustrated by way of a simple example. Say ...
Refinancing Pressure and Earnings Management
... provide one benefit to various stakeholders of the firm, having significant debt coming due in the short term comes with inherent risks as well (Flannery 1986 and Diamond 1991). For example, firms may be denied debt renewal, may have to repay the debt before projects mature, may be subject to unfavo ...
... provide one benefit to various stakeholders of the firm, having significant debt coming due in the short term comes with inherent risks as well (Flannery 1986 and Diamond 1991). For example, firms may be denied debt renewal, may have to repay the debt before projects mature, may be subject to unfavo ...
Managing Public Debt and Its Financial Stability Implications
... Guscina (2006) use a database on government debt covering 19 emerging market countries since 1980. They present stylized facts on debt structures and show that there are significant differences in structures across countries from different regions of the world. Using the same data set, Guscina (2008 ...
... Guscina (2006) use a database on government debt covering 19 emerging market countries since 1980. They present stylized facts on debt structures and show that there are significant differences in structures across countries from different regions of the world. Using the same data set, Guscina (2008 ...
Latin American Examples to Analyze the Euro Question
... Many peripheral Euro-zone countries are suffering from financial and competitiveness problems reminiscent of previous Latin American challenges. Drawing on these experiences, our aim is to provide a comparative analysis with a focus on Sudden Stops, competitiveness and growth issues, the relation be ...
... Many peripheral Euro-zone countries are suffering from financial and competitiveness problems reminiscent of previous Latin American challenges. Drawing on these experiences, our aim is to provide a comparative analysis with a focus on Sudden Stops, competitiveness and growth issues, the relation be ...
Sticky Leverage Joao Gomes, Urban Jermann and Lukas Schmid October 14, 2014
... corporate income and rebates the revenues to the households in lump-sum fashion. ...
... corporate income and rebates the revenues to the households in lump-sum fashion. ...
Sticky Leverage Joao Gomes, Urban Jermann and Lukas Schmid February 23, 2016
... corporate income and rebates the revenues to the households in lump-sum fashion. ...
... corporate income and rebates the revenues to the households in lump-sum fashion. ...
SOAH DOCKET NO. 473-95-1563
... excluded from the calculation of cost as though such cost did not exist. Any business ...
... excluded from the calculation of cost as though such cost did not exist. Any business ...
The fiscal impact of pension reform: economic effects and
... • It is necessary to ensure that financial consequences of the reform, both negative and positive, do not burden a single generation of working people but are allocated evenly • Multi-pillar systems provide an opportunity to faster reduction of the public debt and can generate higher pensions, compa ...
... • It is necessary to ensure that financial consequences of the reform, both negative and positive, do not burden a single generation of working people but are allocated evenly • Multi-pillar systems provide an opportunity to faster reduction of the public debt and can generate higher pensions, compa ...
Bubbles and Self-enforcing Debt (November 2007, with Guido Lorenzoni)
... by paying upfront in exchange for future state-contingent payments. This other agent therefore basically turns into a borrower, since he accepts a payment today in exchange for future payments. But what guarantees that this agent will fulfill his future obligations? In BR, this question does not ari ...
... by paying upfront in exchange for future state-contingent payments. This other agent therefore basically turns into a borrower, since he accepts a payment today in exchange for future payments. But what guarantees that this agent will fulfill his future obligations? In BR, this question does not ari ...
slides - Seán M Muller
... Issues to note/for consideration Various factors suggest that it is necessary and desirable to provide Eskom with financial support The causes of Eskom’s financial situation, and the extent to which they matter, are important for oversight Conditions attached to how a cash transfer is spent m ...
... Issues to note/for consideration Various factors suggest that it is necessary and desirable to provide Eskom with financial support The causes of Eskom’s financial situation, and the extent to which they matter, are important for oversight Conditions attached to how a cash transfer is spent m ...
Input to SCAP planning - Parliamentary Monitoring Group
... Issues to note/for consideration Various factors suggest that it is necessary and desirable to provide Eskom with financial support The causes of Eskom’s financial situation, and the extent to which they matter, are important for oversight Conditions attached to how a cash transfer is spent m ...
... Issues to note/for consideration Various factors suggest that it is necessary and desirable to provide Eskom with financial support The causes of Eskom’s financial situation, and the extent to which they matter, are important for oversight Conditions attached to how a cash transfer is spent m ...
Vattenfall Full year 2016 results
... Vattenfall continuously hedges its future electricity generation through sales in the forward and futures markets. Spot prices therefore have only a limited impact on Vattenfall’s earnings in the near term. Estimated Nordic hedge ratio (%) and indicative prices ...
... Vattenfall continuously hedges its future electricity generation through sales in the forward and futures markets. Spot prices therefore have only a limited impact on Vattenfall’s earnings in the near term. Estimated Nordic hedge ratio (%) and indicative prices ...
Response to HMT consultation on tax deductibility of
... a significant number of our members are active in infrastructure, debt and real estate. These types of alternative funds are a growing source of finance for investment by business. Our members have invested over £30 billion in nearly 3,900 UK-based companies over the last five years. Companies backe ...
... a significant number of our members are active in infrastructure, debt and real estate. These types of alternative funds are a growing source of finance for investment by business. Our members have invested over £30 billion in nearly 3,900 UK-based companies over the last five years. Companies backe ...
Lending Booms, Reserves and the Sustainability of Short
... The Loans: Numbers, Spreads, and Issuers East Asian borrowers have dominated the international loan market. Of the 5,115 loans issued between 1991 and 1997, 3,373 were to East Asia, followed by Latin America and the Caribbean with 543, and Eastern Europe, Middle East and North Africa, and South Asia ...
... The Loans: Numbers, Spreads, and Issuers East Asian borrowers have dominated the international loan market. Of the 5,115 loans issued between 1991 and 1997, 3,373 were to East Asia, followed by Latin America and the Caribbean with 543, and Eastern Europe, Middle East and North Africa, and South Asia ...
Annual Review as PDF
... f you ask a debt manager to describe the market conditions in 2016, I think the answer would be ‘eventful’ or ‘unexpected’. The United Kingdom’s decision to withdraw from the European Union in June was not particularly on the cards of the financial markets. Neither was the outcome of the US preside ...
... f you ask a debt manager to describe the market conditions in 2016, I think the answer would be ‘eventful’ or ‘unexpected’. The United Kingdom’s decision to withdraw from the European Union in June was not particularly on the cards of the financial markets. Neither was the outcome of the US preside ...
Time-Consistent Fiscal Policy in a Debt Crisis
... ernment to collect revenues using lump-sum taxes. The richness of the fiscal policy instruments is key for capturing major trade-offs when setting the optimal policy mix. The government has a utilitarian objective function but cannot commit to the future path of any of its policy instruments and we ...
... ernment to collect revenues using lump-sum taxes. The richness of the fiscal policy instruments is key for capturing major trade-offs when setting the optimal policy mix. The government has a utilitarian objective function but cannot commit to the future path of any of its policy instruments and we ...
Time-Consistent Fiscal Policy in a Debt Crisis - e
... ernment to collect revenues using lump-sum taxes. The richness of the fiscal policy instruments is key for capturing major trade-offs when setting the optimal policy mix. The government has a utilitarian objective function but cannot commit to the future path of any of its policy instruments and we ...
... ernment to collect revenues using lump-sum taxes. The richness of the fiscal policy instruments is key for capturing major trade-offs when setting the optimal policy mix. The government has a utilitarian objective function but cannot commit to the future path of any of its policy instruments and we ...
Financial Leverage and Capital Structure Policy
... extra dollar in debt is exactly equal to the cost that comes from the increased probability of financial distress. Illustration to the next figure of the value of the firm First line (yellow), represent M&M proposition I with No tax (straight line) Next line (blue), represent M&M proposition I with ...
... extra dollar in debt is exactly equal to the cost that comes from the increased probability of financial distress. Illustration to the next figure of the value of the firm First line (yellow), represent M&M proposition I with No tax (straight line) Next line (blue), represent M&M proposition I with ...
The Capital Structure Puzzle
... For example, think of the early cross-sectional studies which attempted to test MM's Proposition I. These studies tried to find out whether differences in leverageaffected the market value of the firm (or the market capitalization rate for its operating income). With hindsight, we can quickly see th ...
... For example, think of the early cross-sectional studies which attempted to test MM's Proposition I. These studies tried to find out whether differences in leverageaffected the market value of the firm (or the market capitalization rate for its operating income). With hindsight, we can quickly see th ...
CONSEQUENCES OF MM - City University London
... debt finance is exactly offset by the rise in the required return on equity, RS - so the overall WACC remains constant. In this MM world there is therefore no optimal debt-equity ...
... debt finance is exactly offset by the rise in the required return on equity, RS - so the overall WACC remains constant. In this MM world there is therefore no optimal debt-equity ...
Dissertation proposal - Arizona State University
... of 3.5 basis points in the borrowing costs. Cunningham(1989) attempts to explain debt level by using both cross-sectional and time-series data. In his model, the equilibrium amount of debt is determined by equating the marginal welfare burden of debt with that of taxes. His model also incorporates t ...
... of 3.5 basis points in the borrowing costs. Cunningham(1989) attempts to explain debt level by using both cross-sectional and time-series data. In his model, the equilibrium amount of debt is determined by equating the marginal welfare burden of debt with that of taxes. His model also incorporates t ...