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Standard spatial models of political competition give rise to equilibria in which the competing political parties or candidates converge to a common position. In this paper I show how political polarization can be generated in models that focus on the nexus between pre-election interest group...
Persistent link: https://www.econbiz.de/10008558962
Political involvement in the operation of an enterprise, whether it is private or state owned, creates opportunities for interest groups to influence the allocation of resources. Resource allocation transfers rent both between unions and private owners within the firm and between these organized...
Persistent link: https://www.econbiz.de/10005419436
Political involvement in the operation of an enterprises, whether it is private or state owned, creates opportunities for interest groups to influence the allocation of resources. I analyze how the influence externality arising form the interest groups´lobby activities disables the Coase...
Persistent link: https://www.econbiz.de/10005225408
resources government does not control the firm´s internal resources so any non profit generating activities must be purely tax …
Persistent link: https://www.econbiz.de/10005225413
Shareholder interests diverge from management (and employee) option holders' on use of corporate cash for reinvestment, dividends, and buybacks. If options equal 25% of shares, shareholders/option holders in theory quot;contractquot; to split future stock profits 80/20. Dividends, however,...
Persistent link: https://www.econbiz.de/10012726457
Previous research initiated by Claessens et al. (2002) has established a value discount of disproportional ownership structures. Due to omitted variables problems it is difficult to provide a causal interpretation of these findings. We provide a thorough analysis of this value discount in a...
Persistent link: https://www.econbiz.de/10012732695
The case of Evergreen Solar (ESLR) suggests counterparty risk exposure be added to the litany of misgivings on the economic efficiency, absolute performance, and governance conflicts of ASRs. Evergreen Solar in July 2008 issues a convertible, enters into an offsetting, broker-backed long...
Persistent link: https://www.econbiz.de/10012706991
The current study adds consideration of a $1.7 billion accelerated stock repurchase (ASR) by Hewlett-Packard (HP) to a recent analysis of 2006-2007 ASRs by Applied Materials, Cypress Semiconductor, Linear Technology, and Xilinx. The HP addition to company case studies leaves fundamental findings...
Persistent link: https://www.econbiz.de/10012707092
A previous study failed to identify economic benefits to explain the 2006-2007 popularity of accelerated stock repurchase programs (ASRs) funded through issuance of convertible debt. The case study of a $600 million transaction by Cypress Semiconductor did find cosmetic advantages in terms of...
Persistent link: https://www.econbiz.de/10012707095
Antigravity introduces a transaction so implausibly attractive it would be deemed impossible were it not that U.S. companies already float an inferior equivalent at a rate of nearly $500 billion per year. A Cashless Buyback(tm) is exactly like a cash buyback minus the risk and should be viewed...
Persistent link: https://www.econbiz.de/10012707111