Las perspectivas para el etanol combustible nunca han sido tan halagüeñas. Es probable que el renovado entusiasmo por los biocombustibles desate una gigantesca demanda global de etanol combustible. Esto es lo que afirman los que esperan que la legislación propuesta en los Estados Unidos y la...

One of the most important topics onvaluation is the appropriate relationshipsbetween cash flows and rateof returns. I review those relationshipsunder the premise, by Myers(1974), of the cost of debt as the rightdiscount for the tax shield. Differenthypotheses have been advanced for the tax...

An important variable absent in agency cost analyses is the extent of cooperation among the manager and the investors. Two types of cooperation are studied: 1.) generalized cooperation, a concept close to social capital; and 2.) discriminating cooperation, a concept close to cooperation with...

This paper studies the relationship between ownership concentration, family ownership, management, and market and accounting performance for 59 industrial firms listed in the Lima Stock Exchange. Data go from 1999 to 2005. We find an inverse U-shaped relationship between ownership concentration...

Following a requirement of the local regulator, different Colombian security issuers complied with the norm, producing a corporate governance code. This article studies the effects on accounting performance and financing decisions of Colombian firms after these firms issue their own corporate...

Although we know there exists a simple approach to solve the circularity between value and the discount rate, known as the Adjusted Present Value proposed by Myers, 1974, it seems that practitioners still rely on the traditional Weighted Average Cost of Capital, WACC approach of weighting the...

Since 2007 Colombian listed firms, non-financial and financial, are required to disclose their compliance to a governance country code. The compliance is interpreted as the level of governance and used as independent variable for regressions looking for the determinants of performance and...

When calculating Tax Savings, TS we are confronted with a strange mix of accounting accrual and market value when involving TS in the calculation of the Weighted Average Cost of Capital, WACC or the Cost of Equity, Ke. Firms earn the right to TS once they accrue the interest expense and they...