EFFECTS OF AGENCY AND TRANSACTION COSTS ON DIVIDEND PAYOUT RATIOS: FURTHER EVIDENCE OF THE AGENCY-TRANSACTION COST HYPOTHESIS

In this study we replicate and extend an agency-transaction cost model of dividend payout previously hypothesized and supported in the literature. We find no statistical difference between the estimated regression model obtained for the original seven-year sample period, 1974–80, and that obtained for our seven-year period, 1981–87. The latter period is characterized by significantly lower inflation, stronger economic growth, and lower taxes. The intertemporal stability of the model suggests that it is useful for predicting dividend payout at the individual firm level.     

Land Taxes in Agriculture

A bstract Farmland , which occupies two thirds of America's privately owned territory, provides more than food and fiber. Agricultural uses of land preserve open space, filter and store water, supfwrt wildlife, conserve rural resources, enlarge life style opportunities for an urban society. One instrument for preserving agricultural land from urban developmental pressures is the preferential assessment for real property tax, essentially a two rate tax favoring farming as a land use. Preferential assessment, administered typically at small, nonrollback differentials, has not deterred intensive land use changes. Indeed, it may have had the opposite effect. Changes in the tax on land and buildings are recommended as improvements in the preferential assessment of agricultural land.     

Conversations Across Continents: Teaching Business Ethics Online

The paper focuses on an online business ethics course that three professors (Painter-Morland, Fontrodona and Hoffman) taught together, and in which the fourth author (Rowe) participated as a student, from their respective locations on three continents. The course was conducted using Centra software, which allowed for synchronous online interaction. The class included students from Europe, South Africa and the United States. In order to assess the value of synchronous online teaching for ethics training, the paper identifies certain knowledge, skills and capacities that are crucial to the moral development process within individuals. The paper argues that the online teaching method succeeds in creating an environment within which important ethical knowledge and skills might be developed. It provides an in-depth reflection on the advantages and dis-advantages of online teaching and proposes improvements on the way forward. One of the major advantages relates to its ability to facilitate cross-cultural discussion and debate on ethical issues and foster insight into contextual influences on ethics management within an international arena.     

Managing the world's forests

Forests play a vital role in balancing natural systems: the stabilization of global climate and the management of water and land. 30% of the earth's total land area is forested. 66% of the tropical moist forests are in Latin America and the remainder in Africa and Asia. 75% of tropical dry forests are in Africa. Temperate forests are primarily in developed countries. Deforestation and misuse of forests occurs primarily in developing countries at significant social, economic, and environmental costs. Losses have occurred in fuelwood, fodder, timber, forest products, biological diversity, habitats, genetic materials for food and medicine. The World Bank's evolving role in forestry is briefly described. Agreement has not been reached among people or nations about the most appropriate means to balance conservation and development goals. The challenge is to stabilize existing forests and increase forest planting. The causes of forest degradation must be understood. Direct causes include agricultural encroachment, cattle ranching, fuelwood gathering, commercial logging, and infrastructure development. These direct causes are driven by economic, social, and political forces: market and policy failures, population growth, and poverty. The market failures include: 1) the lack of clearly defined property rights on forest resources for now and the future, 2) the conflict between individual and societal needs, 3) the difficulty in placing a value on nonmarket environmental services and joint products, and 4) the separation between private and social costs. The solution is action at the local, national, and global levels. Countries must establish forest policy. The existing government incentives which promote deforestation must be changed. For example, concession policy and royalty systems must be corrected; explicit and implicit export subsidies on timber and forest products must be stopped. Private incentives must be established to promote planting of trees, practicing preservation, and setting up sustainable management systems. Property rights must be clearly defined and land use policies must spell out forest use patterns. A global strategy for forest management is needed for conservation, protection, reforestation, agricultural and rural development, sustainable use, and research with funding.     

The Impact of Deregulation on Efficiency: An Analysis of Life Insurance Industry in Taiwan From 1981 to 2004

We examine the impact of deregulation and liberalization (D&L) on the efficiency of the Taiwanese life insurance industry from 1981 to 2004. We utilize the data envelopment analysis (DEA) to measure the efficiency performances and the Malmquist index approach to measure changes in efficiency and productivity over time. Both the DEA and Malmquist results show that the old domestic firms have been slightly impacted by the new competitors around 1992–1994 (the end of foreign and new local entry period and the beginning of post-D&L period). More important, our results show that the D&L does not have major adverse impact on the technical, cost, and revenue efficiency performances of existing domestic firms in the long run. The dominance of existing domestic firms has declined but persists throughout the sample period. In addition, our results show that it is relatively easy for new firms to become technically efficient in just few years after entering the market, but it is more difficult for them to become efficient in cost and revenue efficiency. We, thus, suggest that a new market entrant should take advantage of the existing mechanisms by acquiring an old (existing) firm, rather than establish a new one, if a new entrant wants to become efficient in cost and revenue efficiency in a short time.     

The Use of Electronic Brokerage Systems in China: A Modified e‐Commerce Model

I applied the DeLone and McLean (2004) information systems success model to the use of electronic brokerage systems in China. Several modifications to the model are proposed, including the addition of specific measures of customer perceptions concerning both the perceived costs and benefits of using such systems. Structural equation modelling revealed that the DeLone and McLean (2004) model is not a good representation of those who use electronic brokerage systems for cross‐national transactions, but that the modified model is a good fit for all customers. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.