Agency cost theory is an important branch of capital structural theory. Free cash flow has significant impact on agency cost. The combination of research on these two fields would help to build and extend the theoretical system. Based on agency cost theory, the present study firstly categorized the characteristics of free cash flow as well as the statistical methodologies. Furthermore, the exis...

purpose: this paper addresses whether and how the sarbanes-oxley act of 2002(sox) affects shareholder wealth (firm value) by focusing on the trade-off between improved corporate governance leading to a lower cost of capital and increased managerial compliance costs of regulations. design/methodology: we use an analytical model of solving the management utility maximization function and the chan...

The techniques and methods of developing cost models for respirators are discussed. Models are developed and implemented in this study for nineteen types of respirators in two major classes (air-purifying and supplied-air) and one LEV system. One respirator model is selected for detailed discussion from among the twenty models. The technical cost method is used in constructing the cost models f...

In his 2005 ASTIN paper (reprinted in the CAS 2006 Fall Forum), Donald Mango's ground-breaking work [1] in developing the concepts of insurance capital as a shared asset and Economic Value Added (EVA) are discussed with special emphasis on the purpose and calculation of the important Capital Call Costs. The EVA approach permits one to charge for risk (capital usage) and measure profitability at...

In this paper, we discuss the implications of financing constraints for future energy and climate scenarios. Aspirations to improve energy access and electrification rates in developing countries, while simultaneously reducing greenhouse gas emissions, can be seriously hindered by the availability of low-cost capital for the necessary investments. We first provide a brief description of the the...

The relationship between disclosure and cost of equity capital has always been interesting not only for managers, but for investors as well. Economic theory suggests that by increasing the level of corporate reporting firms not only increase their stock market liquidity, but they also decrease the investors’ estimation risk, arising from uncertainty about future returns and payout distributions...

Society’s memory used to be stored on paper, which survives benign neglect well. It is now stored on digital media, which are less tolerant. A Blue Ribbon panel [2] has identified the economic sustainability of digital archives as a major problem. Economic threats are likely to be highly correlated among different archives, limiting the effectiveness of replicating data across archives. The lif...

Using panel regression for the period 1970-2000 the paper analyzes whether globalization has influenced the OECD countries’ social and overall spending as well as their implicit tax rates on labor, consumption and capital. Accounting for potential endogeneity of the regressors, the results show that globalization (measured by an index covering 23 variables) did not decrease the leeway for indep...

Online communities are forming in the Blogosphere as people connect online with friends and those they have affinities, or inherent similarities with. We explore the social capital that exists within these communities by deriving an effective mathematical formulation of social capital based on implicit and explicit connections. We illustrate these concepts by conducting a case study on an activ...