Debt financing, soft budget constraints, and government
... Debt financing is expected to improve the quality of corporate governance, but we find, using a large sample of public listed companies (PLCs) from China, that an increase in bank loans increases the size of managerial perks and free cash flows and decreases corporate efficiency. We find that bank l ...
... Debt financing is expected to improve the quality of corporate governance, but we find, using a large sample of public listed companies (PLCs) from China, that an increase in bank loans increases the size of managerial perks and free cash flows and decreases corporate efficiency. We find that bank l ...
FAIR VALUE IN FINANCIAL STATEMENTS – ADVANTAGES AND
... wants to sell at a best reasonable price in the market conditions of the time. An ´arms-length´ transaction refers to a transfer of an asset between a buyer and a seller who have no special relationship and therefore the terms of the transfer would not be affected by special mutual arrangements, suc ...
... wants to sell at a best reasonable price in the market conditions of the time. An ´arms-length´ transaction refers to a transfer of an asset between a buyer and a seller who have no special relationship and therefore the terms of the transfer would not be affected by special mutual arrangements, suc ...
Trends in and structure of the overall capital stock
... Lack of precision in the measurement also results from basing the approach on the useful ...
... Lack of precision in the measurement also results from basing the approach on the useful ...
11 - JustAnswer
... c. What happens to the indifference point if the interest rate on debt increases and the common stock sales price remains constant? Indifference point moves to right, i.e., higher EBIT d. What happens to the indifference point if the interest rate on debt remains constant and the common stock sales ...
... c. What happens to the indifference point if the interest rate on debt increases and the common stock sales price remains constant? Indifference point moves to right, i.e., higher EBIT d. What happens to the indifference point if the interest rate on debt remains constant and the common stock sales ...
Risk-Adjusted Performance of Private Equity Investments
... individual transactions by combing business and leverage risk. Business risk is measured by public market comparables and leverage risk is determined by the capital structure of the PE transaction, as well as the possibility of transferring risk to the lenders. The leverage risk usually changes over ...
... individual transactions by combing business and leverage risk. Business risk is measured by public market comparables and leverage risk is determined by the capital structure of the PE transaction, as well as the possibility of transferring risk to the lenders. The leverage risk usually changes over ...
Earnings management is a manager`s choice of accounting policies
... Earnings management is a manager’s choice of accounting policies that achieves some specific objective. Even under GAAP, managers still retain some flexibility in accounting policy selection that may be able to positively impact their personal satisfaction and/or the market value of their firm. Acco ...
... Earnings management is a manager’s choice of accounting policies that achieves some specific objective. Even under GAAP, managers still retain some flexibility in accounting policy selection that may be able to positively impact their personal satisfaction and/or the market value of their firm. Acco ...
Corporate Governance and Its Effect on the Corporate Financial
... Studies have defined the financial leverage as the amount of debt which is obtained for needed financing in order to acquire the necessary property (Hampton, p. 2001). According to the mentioned definition, the companies can be defined based on the financing as companies with high and low degree of ...
... Studies have defined the financial leverage as the amount of debt which is obtained for needed financing in order to acquire the necessary property (Hampton, p. 2001). According to the mentioned definition, the companies can be defined based on the financing as companies with high and low degree of ...
Advances in Environmental Biology Mohsen Dastgir,
... managers due to excessive optimism may incorrectly predict free cash flows obtained from the projects very favorable and as a result value many projects above their intrinsic value. On the other hand, these managers believe that the market value their company less than the intrinsic value and makes ...
... managers due to excessive optimism may incorrectly predict free cash flows obtained from the projects very favorable and as a result value many projects above their intrinsic value. On the other hand, these managers believe that the market value their company less than the intrinsic value and makes ...
Financial Accounting and Accounting Standards
... Investment Carried at Equity—Year of Acquisition P4-12 On January 1, 2007, Parker Company purchased 90% of the outstanding common stock of Sid Company for $180,000. At that time, Sid’s stockholders’ equity consisted of common stock, $120,000; other contributed capital, $20,000; and retained ...
... Investment Carried at Equity—Year of Acquisition P4-12 On January 1, 2007, Parker Company purchased 90% of the outstanding common stock of Sid Company for $180,000. At that time, Sid’s stockholders’ equity consisted of common stock, $120,000; other contributed capital, $20,000; and retained ...
NBER WORKING PAPER SERIES UNINSURED IDIOSYNCRATIC INVESTMENT RISK AND AGGREGATE SAVING George-Marios Angeletos
... to be exposed to large idiosyncratic risks in capital returns: privately-held businesses account for almost half of aggregate production, employment, and capital in the United States.2 This paper provides a tractable benchmark for examining the macroeconomic effects of idiosyncratic investment risk w ...
... to be exposed to large idiosyncratic risks in capital returns: privately-held businesses account for almost half of aggregate production, employment, and capital in the United States.2 This paper provides a tractable benchmark for examining the macroeconomic effects of idiosyncratic investment risk w ...
Northrop Grumman Financial Security and Savings - corporate
... changes in the values of investment securities may occur in the near term, and those changes could materially affect the amounts reported in the financial statements. Fair Value of Financial Instruments The Plan utilizes fair value measurement guidelines prescribed by GAAP to value financial instrum ...
... changes in the values of investment securities may occur in the near term, and those changes could materially affect the amounts reported in the financial statements. Fair Value of Financial Instruments The Plan utilizes fair value measurement guidelines prescribed by GAAP to value financial instrum ...
CHAPTER SIXTEEN
... Chapter 17 makes the point that a valuation has integrity if the relevant information is reflected in forecasts within the forecast horizon, such that periods beyond the horizon can be summarized in a steady-state continuing value calculation. Accounting methods determine how quickly information is ...
... Chapter 17 makes the point that a valuation has integrity if the relevant information is reflected in forecasts within the forecast horizon, such that periods beyond the horizon can be summarized in a steady-state continuing value calculation. Accounting methods determine how quickly information is ...
Corporate Payout Policy and Market Capitalization
... firm’s value depends only on the profits generated by its assets, not how those profits are split between retained earnings and dividends. They set the assumption that managers and investor have identical information about future earnings and dividends of the firms. Firm’s stock price or cost of cap ...
... firm’s value depends only on the profits generated by its assets, not how those profits are split between retained earnings and dividends. They set the assumption that managers and investor have identical information about future earnings and dividends of the firms. Firm’s stock price or cost of cap ...
- Backpack
... Investors : Institutions - Mutual Funds • their profit or capital gain from funds (after paying management fees and commission) is distributed among the individual investors in proportion of their holding funds • vary greatly, depending upon their • investment objectives • set of assets class they ...
... Investors : Institutions - Mutual Funds • their profit or capital gain from funds (after paying management fees and commission) is distributed among the individual investors in proportion of their holding funds • vary greatly, depending upon their • investment objectives • set of assets class they ...
Chapter 03 PowerPoint
... statements for comparison purposes • Know how to compute and interpret important financial ratios • Know the determinants of a firm’s profitability and growth • Understand the problems and pitfalls in financial statement analysis Copyright © 2011 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of ...
... statements for comparison purposes • Know how to compute and interpret important financial ratios • Know the determinants of a firm’s profitability and growth • Understand the problems and pitfalls in financial statement analysis Copyright © 2011 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of ...
Chapter 2 - Economics
... If q > 1, firms buy more capital to raise the market value of their firms ...
... If q > 1, firms buy more capital to raise the market value of their firms ...
Statement of Cash Flows Revisited
... Early efforts to instill the standard of accrual accounting internationally suppressed the widespread practice of cash flow reporting. The statement of changes in financial position was the predecessor to the statement of cash flows. The increasingly widespread acceptance of cash flow reporting in t ...
... Early efforts to instill the standard of accrual accounting internationally suppressed the widespread practice of cash flow reporting. The statement of changes in financial position was the predecessor to the statement of cash flows. The increasingly widespread acceptance of cash flow reporting in t ...
