Corporate commitment to climate change action,carbon risk exposure,and a firm's debt financing policy

Motivated by the rising consensus that corporate engagement in climate change actions holds the key for society's transition into environmentally resilient economy, the study examines whether a firm's commitment to climate change action and its carbon risk exposure shape the firm's debt financing policy. Based on insights drawn from signaling, corporate reputation, and agency theories, we develop models that link corporate commitment to climate change actions and a firm's carbon risk exposure with its debt financing decisions. Using data drawn from S&P 500 companies, for years 2015 to 2019, we find a robust evidence that firms that engage in higher levels of commitment to climate change actions issue a higher proportion of debt with longer terms to maturity, even after controlling for their carbon risk exposure. However, we do not find a robust evidence corroborating an association between firms' carbon risk exposure and their debt financing policy. These findings are consistent with arguments that high-commitment firms enjoy positive reputation, better credit rating, and reduced agency and information asymmetry costs, allowing them to gain easier access to long-term debt markets.     

Degradation of Lake Ziway,Ethiopia: A study of the environmental perceptions of school students

Lake Ziway in Ethiopia is a freshwater lake supporting multitude uses, including irrigation, fishing, water supply and recreation. However, the lake is being degraded primarily because of various land‐ and water‐use activities in its watershed. Recognizing these human impacts on the lake's water quality and quantity, the perceptions of school students were surveyed under the belief that the future of the lake is largely dependent on this younger generation. The goal of this study was to better understand how students actually recognize the extent to which various human activities impact the water quantity and quality of Lake Ziway. As major stakeholders in their communities, the perceptions of school students from four high schools regarding the changes to the lake over time were investigated. Students were contacted by purposive sampling, based on criteria of student academic performances, and their proximity to the lake. Their perceptions were studied on the basis of an interview survey. The majority of students indicated that high levels of human activities, especially water abstractions and water pollution, were the main lake impacts. Students believe there is a lack of sustainable utilization and protection of the lake. They suggested coordinated activities among all lake stakeholders in the participation and decision‐making process to properly manage the lake. Provision of awareness to both local administrations and local communities, concern for establishing an appropriate regulatory body and allocating a sufficient budget, and strict controls on flower farm practices in the lakeshore, also was considered to be of high priority as a means of conserving the sustainability of the lake. The result derived from this survey has important implications for facilitating improved school curricula, and for federal, regional and district level water resource management authorities, in setting priorities and developing policies for the sustainability of Lake Ziway.     

The Gains from Takeover Deregulation: Evidence from the End of Interstate Banking Restrictions

This paper uses interstate banking deregulation to explore the benefits of takeover deregulation and how these benefits are distributed across different firms. We find large and significant abnormal returns around the Interstate Banking and Branching Efficiency Act of 1994 which imply it created $85 billion of value in the banking industry. Consistent with an active market for corporate control allowing beneficial consolidation and providing needed discipline, there is a strong negative relationship between banks' abnormal returns and their prior performance. Consistent with managerial entrenchment limiting takeover discipline, banks with higher insider ownership, lower outside block ownership, and/or less independent boards have lower abnormal returns.     

On the expected length of the least squares coefficient vector

As a motivation for biased estimation procedures, it is often stated that the vector of the least squares estimator is too long on average. Some authors have given an invalid proof of this statement. In this note a proof is given and comments added to indicate how large is this average length.     

Review of the natural conditions and anthropogenic threats to the Ethiopian Rift Valley rivers and lakes

This review article considers the lakes found within the Ethiopian Rift Valley system and the rivers draining from the highlands towards them. The Ethiopian Rift Valley system extends in a north‐east–south‐west direction, bisecting the Ethiopian highlands. They differ in sizes and hydrological and hydrogeological settings. The lakes support a variety of flora and fauna, mainly fishes, reptiles, birds and mammals. The lakes and their feeder rivers, however, are currently being subjected to more human use pressure than previously experienced, attributable mainly to water abstractions for irrigation, household water supply and industrial activities in the catchments. Soil erosion, primarily attributable to the lack of soil conservation practices on farm lands, overgrazing and deforestation, along with unregulated irrigation practices, are generating large quantities of silt reaching the lakes. Improper utilization of water and land resources in the catchments, along with population growth and climate change impacts, is escalating the threats to the health of the lake and river ecosystems. As a result, some of the lakes exhibited reduced water levels and increased salinity. This article reviews the major environmental changes happening to these lakes and their feeder rivers. Visits were made to the area to update previous information while also consolidating the trends of change in the aquatic systems and the watersheds attributed to intense development practices.     

Specialty pharmaceuticals and the quest for better outcomes

Over the past decade, the healthcare system has seen significant growth in the number of products, pathways, and modes of treatment administration for a number of costly conditions. Many of these products are biologic agents, classified as specialty pharmaceuticals, and are distributed through specialty pharmacies. The increasing use of these expensive medications and their growing costs raise the simple question, can payers and purchasers afford to keep doing business as usual? In addition, confusion exists as to what “outcomes” are relevant for these conditions treated using specialty medications. Available information on outcomes, treatments, and pathways from multiple sources can overload clinicians and the treatment team, making it difficult to select – and receive reimbursement for – the most appropriate regimens. This article offers an approach to understanding some of the unique challenges posed in evaluating the value of specialty pharmaceuticals.     

Corporate carbon risk exposure,voluntary disclosure,and financial reporting quality

The study examines whether corporate carbon risk exposure is associated with financial reporting quality and whether voluntary carbon disclosure mediates the relationship. We analyze data drawn from firms traded on the Johannesburg Stock Exchange (JSE), for the period 2011 to 2015. We document robust evidence that firms with higher carbon risk exposure tend to provide financial statements of poorer quality (i.e., direct effect) and this association is partially mediated through voluntary carbon disclosure (i.e., indirect effect). The overall negative association between corporate carbon risk exposure and the firm's financial reporting quality is partly explained by the quality of voluntary carbon disclosure.     

The National Football League payroll cost function and labor market institutional changes

Sports club payroll costs typically comprise over 50% of sport clubs' total operating expenses, but little is known empirically about this largest component of club costs. Using data from the National Football League Players Association Salary Cap Information System from 1981 to 2000, a National Football League club payroll cost function is estimated to examine the impact of labor market institutional changes (strikes and collective bargaining) and to test existing theoretical sports club cost functions. As expected, strikes have a negative effect on total payroll, and the two collective bargaining agreements had opposite effects during this time period. Additionally, empirical support is provided for the standard two‐team sport league cost function.