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Debt Levels (debt + level)
Selected AbstractsManagerial Opportunism and Capital Structure Adjustments: Equity,for,debt Swap and Convertible DebtINTERNATIONAL REVIEW OF FINANCE, Issue 1 2002Nobuyuki IsagawaArticle first published online: 16 MAY 200 This paper shows how capital structure adjustments through an equity,for,debt swap and convertible debt can resolve the inefficiency caused by managerial opportunism. We consider a situation in which a corporate manager's investment decision is affected by the firm's debt level. Although both an equity,for,debt swap and convertible debt can induce the self,interested manager to undertake only value,increasing projects through capital structure adjustments, there exists a significant difference between these two financial instruments. An equity,for,debt swap, which requires the agreement of both shareholders and debt holders, can change a firm's debt level only prior to the manager's investment decision. On the other hand, convertible debt, which gives debt holders a unilateral right to convert, can change a firm's debt level even after the manager's investment decision. [source] Workforce Characteristics of Mohs Surgery FellowsDERMATOLOGIC SURGERY, Issue 2 2004Josephine C. Nguyen BS Background. Anecdotal evidence from program directors and Mohs surgeons suggests that Mohs fellowships are becoming increasingly popular and competitive among dermatology trainees. Objective. To assess the characteristics and investigate the motivating factors of those pursuing Mohs fellowships. Methods. Anonymous surveys were distributed to recent dermatology residency graduates taking a board exam review course in years 1999,2002. Results. In 2002, 2001, and 1999, the percentages of recently trained dermatologists pursuing Mohs fellowships were 9.4%, 8.5%, and 8.8%, respectively. There were no significant differences between Mohs fellows and the rest of the recently graduated dermatologists in terms of debt levels, marital status, parenting status, and spousal employment status. The Mohs fellows were slightly more likely to be male than their non-Mohs counterparts. The factor considered the most important by both groups when choosing a job was location. Conclusions. Further research is needed to discover potential factors that may be playing a role in the increased popularity of Mohs surgery. The number of Mohs surgeons is increasing and is likely to expand over time. It remains to be seen what effect the growth will have on the supply of Mohs surgery and whether it will outpace the increased demand for services. [source] The Prospects for Foreign Debt Sustainability in Post-Completion-Point Countries: Implications of the HIPC-MDRI FrameworkDEVELOPMENT POLICY REVIEW, Issue 2 2008Jacinta Nwachukwu The Enhanced HIPC Initiative was launched in 1999 to reduce the Net Present Value (NPV) of foreign debt of the world's poorest countries to a sustainable threshold of 150% of their exports. This article applies a simple growth-with-debt model to 16 post-completion-point HIPCs to assess whether this goal will be met by 2015. Its somewhat optimistic base-case projections suggest that participation in the current Enhanced HIPC-MDRI initiative will only reduce the NPV of their total external debt to 176% of exports by this date. Sensitivity tests which expose these countries to adverse exogenous shocks help draw attention to policies that could ensure that they do not again accumulate unsustainable debt levels. [source] Agency problems and audit fees: further tests of the free cash flow hypothesisACCOUNTING & FINANCE, Issue 2 2010Paul A. Griffin G34; G35; M41; M42 Abstract This study finds that the agency problems of companies with high free cash flow (FCF) and low growth opportunities induce auditors of companies in the US to raise audit fees to compensate for the additional effort. We also find that high FCF companies with high growth prospects have higher audit fees. In both cases, higher debt levels moderate the increased fees, consistent with the role of debt as a monitoring mechanism. Other mechanisms to mitigate the agency costs of FCF such as dividend payout and share repurchase (not studied earlier) do not moderate the higher audit fees. [source] The Impact of Increased Fees on Participation in Higher Education in EnglandHIGHER EDUCATION QUARTERLY, Issue 2 2005Hazel Pennell This article explores some recent research evidence on the possible impact of the higher education reforms in England on participation by students from lower socio-economic backgrounds. The evidence is examined in terms of costs, debt and term-time working. Financial issues have been shown to constrain choice of institution and place of study for lower-income students, and financial problems are commonly cited as reasons for dropping out of higher education. The greatest difference in debt levels has been found to be linked to family background, with students who were poor before they entered university leaving university with the largest debts. Overdrafts and credit card debt levels have been shown to be lower for students in receipt of grants than for those who are not. Research has shown that school leavers who are least debt-averse are more likely to go to university than those who are anti-debt; the latter include those from the lowest socio-economic groups and certain black and minority ethnic groups. Students who work in term-time may achieve less academically: those who work in term-time are more often those from lower socio-economic groups or minority ethnic groups. Overall, the evidence indicates that financial payments and grants are likely to be the most promising way forward to increase participation in higher education among those from lower socio-economic backgrounds. [source] Corporate Debt Financing and Earnings QualityJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 5-6 2010Aloke (Al) Ghosh Abstract:, Our study establishes linkages between two extensively researched areas, debt financing and the quality of earnings. Debt can have a ,positive influence'on earnings quality because managers are likely to use their accounting discretion to provide private information about the firms' future prospects to lower financing costs. For high debt, it can also have a ,negative influence' on earnings quality as managers use accruals aggressively to manage earnings to avoid covenant violations. Using accruals quality as a proxy for earnings quality, we document a non-monotonic (curvilinear) relation between debt and earnings quality. The relationship is positive at low levels of debt and negative at high debt levels with an inflection point around 41%. Our results suggest that firms that rely heavily on debt financing might be willing to bear higher costs of borrowing from lower earnings quality because the benefits from avoiding potential debt covenant violations exceed the higher borrowing costs. [source] How Credit Access Has Changed Over Time for U.S. HouseholdsJOURNAL OF CONSUMER AFFAIRS, Issue 2 2003ANGELA C. LYONS The financial industry made a number of efforts throughout the 1990s to provide additional borrowing opportunities to households traditionally constrained by the credit markets. Using data from the Survey of Consumer Finances (SCF), this study investigates the degree to which household liquidity constraints relaxed between 1983 and 1998. The gap between actual and desired borrowing is estimated. The findings indicate that the ability of all households to obtain their desired debt levels increased after 1983 and most dramatically between 1992 and 1998. The findings hold true across all households regardless of permanent earnings, age, gender, or race. Those experiencing the greatest gains in credit access were black households and households with low permanent earnings. [source] Foreign exchange pressures in Latin America: Does debt matter?JOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 5 2008Alex Mandilaras Abstract Latin American countries have been in the eye of economic and financial storms several times in recent years. Advice from the International Monetary Fund has consistently highlighted the need for sound fiscal policies and lower debt levels. But is public debt relevant? Following a brief discussion of the theoretical issues involved, this paper examines empirically the relationship between public indebtedness and pressures in the foreign exchange market. Alternative measures are used to capture the latter and the analysis controls for a de facto classification of exchange rate regimes. Estimations of static and dynamic panels for 28 Latin American and Caribbean (LAC) countries report substantial fiscal effects. Copyright © 2008 John Wiley & Sons, Ltd. [source] Public Debt, Migration, and Shortsighted PoliticiansJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 5 2004Christian Schultz We analyze a model where local public debt levels are set by politicians who are chosen in local elections. Migration causes an externality across districts, and leads to overaccumulation of local public debt. Since debt is a strategic substitute, the median voters in each district prefer shortsighted political leaders who "borrow and spend," thereby exacerbating the problem of overaccumulation of local public debt. [source] Efficiency, Performance and Changing Corporate Governance in China's Township,Village Enterprises since the 1990sASIAN-PACIFIC ECONOMIC LITERATURE, Issue 1 2001Russell Smyth This article outlines some of the major challenges facing Chinese township,village enterprises (TVEs) since the 1990s. The authors argue that the internal mechanisms associated with the unique ownership structure of TVEs has allowed them to perform better than state-owned enterprises (SOEs). Since the mid-1990s, debt levels in the TVE sector have increased sharply. Most of the problems of TVEs have been magnified by the close relationship between local governments and enterprises, which was once one of their major strengths. Since the mid-1990s, local governments have come to regard TVEs with high levels of debt as a burden rather than an asset. In response local governments have moved to other, more indirect forms of governance over most TVEs under their control, while retaining direct control over the most successful. These alternative ownership structures include share-holding co-operatives and outright privatisation. [source] THE PERFORMANCE OF AN ELECTRICITY UTILITY: THE CASE OF THE STATE ELECTRICITY COMMISSION OF VICTORIA, 1925,93AUSTRALIAN ECONOMIC HISTORY REVIEW, Issue 1 2006Malcolm Abbott Australia; electricity utility; privatisation; public enterprise; Victoria One of the most important microeconomic policy reforms of the 1990s was the restructuring of the Australian electricity supply industry. This process was encouraged by the perception that the state-owned electricity authorities performed poorly in the 1970s and 1980s. This article observes the long-term performance of the State Electricity Commission of Victoria over the course of most of its life. In particular the growth in demand for electricity in Victoria, the productivity growth of the State Electricity Commission of Victoria, as well as electricity prices, profits and debt levels are presented over the longer term. [source] | |||||||||||||