DEBT AND TAXES: EMPIRICAL EVIDENCE

The literature currently proposes several capital structure theories whose predictions are generally mutually exclusive. Empirical testing to date has been subject to serious conceptual and econometric problems. The present study, which is carried out on a cross-section of industrial firms, attempts to overcome several deficiencies in earlier studies. Although the results are more consistent with Miller's 1977 hypothesis that the value of the firm is independent of leverage in the absence of leverage-related costs than they are with those theories which predict a value-maximizing optimum debt level, there is significant evidence that the value of the firm may be negatively related to leverage over a broad range of debt usage.     

Representing interval orders by a single real-valued function

Let > be an interval order on a topological space X, and let $\text{x > 1 y}$ if and only if there exists x′ with $\text{x?x′>y}$. Then >1 is a preference relation with transitive indifference, which, under suitable conditions, can be represented by a utility function v of the usual sort. In that case, maximisation of v (subject to contraints) leads to a most preferred point relative to >. Following both the Debreu-Rader and the Arrow-Hahn approaches, we discuss the existence and continuity of such a function v.     

A study of co-authorship and collaborative research among Indian space technologists

The paper sets out the methodology adapted and the sample studied, analyses the productivity of space scientists and engineers in terms of number of papers published with full as well as fractional authorship credits, discusses in detail the pattern of collaboration of space technologists in publishing papers, and lastly, identifies nonintersecting informal communication groups and 'communication stars' based on collaboration.     

Japanese sogo shosha and the U.S. export trading companies

Recent legislation in the U.S. concerning export trading companies has drawn attention to the Japanese general trading companies. While the intent of the ETC Act was not to replicate the sogo shosha model in the U.S., there are some parallels which we can identify. In this paper we examine the evolving forms of the sogo shosha and ETCs, and show how they compete directly in some areas of international trade. Although early performance results for U.S. ETCs are not encouraging, longer term results are expected to improve. To support this expectation, we identify current problems and offer recommendations for improvement. These recommendations are framed in the context of the U.S. business environment, and implications for public policy are assessed.     

HEALTH CARE ACCOUNTS—A CONCEPTUAL FRAMEWORK AND AN ILLUSTRATIVE EXAMPLE*

Canadian statistics of the health care delivery system are generated under a variety of concepts, methodologies, definitions, and classifications by the numerous individual units, institutions, and organizations involved. This paper presents an overview and a framework for satellite accounts on health care delivery. Its objective is to enable the organization of economic and financial information on health care delivery activities from different sources into a set of consistent statistics detailing current expenditures, current revenues, purposes of spending, and source and application of funds in the health care delivery system. It is recognized that this economic framework is only a first stage in establishing a complete health information framework which could link economic with social and demographic data. A sample set of accounts for the province of Ontario in the fiscal year 1977-78 is presented to demonstrate the feasibility of establishing such satellite accounts.     

Social structures that promote change in a complex world: The complementary roles of strangers and acquaintances in innovation

In this paper we offer insights about the type of societies that are more likely to generate and promote innovation. In particular, we present results from a study of innovation through computational social simulations to focus on a structural aspect of societies: their degree of separation and how this social characteristic may be related to what, how and why new ideas and solutions can replace existing wide-spread practices in a society. We focus on the work of design practitioners and sustainable design as an example to illustrate these insights.     

Techniques of developing the economic clauses of a production sharing agreement for oil and gas projects

The author’s experience in developing terms of production sharing agreements for certain oil and gas projects in Krasnoyarsk krai is described, and a methodological approach is formulated which employs special model tools for selecting agreement parameters that ensure a tradeoff between the interests of the investor and the state.     

RESTRICTED VOTING SHARES,OWNERSHIP STRUCTURE,AND THE MARKET VALUE OF DUAL-CLASS FIRMS

In this study, financial implications of differential voting right/multiple ordinary share class capitalizations are examined using data from British dual-class firms. Positive wealth effects are observed after announcements of plans to issue restricted voting (RV) shares, and also after announcements of RV share enfranchisement plans. The two share classes are usually created through large, noncash stock dividends or recapitalizations and, although corporate insiders hold about three times as large a fraction of superior voting (SV) shares, their RV shareholdings average a nontrivial 10.1 percent. Finally, compensation is usually paid to SV shareholders when RV shares are enfranchised.