Future Benefits (future + benefit)

Distribution by Scientific Domains

Selected Abstracts

A Reexamination of the Tradeoff between the Future Benefit and Riskiness of R&D Increases

ABSTRACT Many previous studies document a positive relation between research and development (R&D) and equity value. Though R&D can increase equity value by increasing firm value, it can also increase equity value at the expense of bondholder wealth through an increase in firm risk because equity is analogous to a call option on the underlying firm value. Shi [2003] tests this hypothesis by examining the relation between a firm's R&D intensity and its bond ratings and risk premiums at issuance. His results show that the net effect of R&D is negative for bondholders. We reexamine Shi's [2003] findings and in so doing make three contributions to the literature. First, we find that Shi's [2003] results are sensitive to the method of measuring R&D intensity. When we use what we argue is a better measure of R&D intensity, we find that the net effect of R&D is positive for bondholders. Second, when we use tests that Shi [2003] recognizes are even better than the ones that he uses, we find even stronger evidence of the positive effect of R&D on bondholders. Third, we examine cross-sectional differences in the effect of R&D on debtholders. Consistent with our main finding, we document a negative relation between R&D increases and default risk. The default risk reduction is also more pronounced for firms with higher initial default scores (where the debtholders have more to gain from an R&D increase) and for firms with more bank debt (where the debtholders have greater covenant protection from the possible detriments associated with R&D increases). [source]

The Modified Atkins Diet

EPILEPSIA, Issue 2008
Eric H. Kossoff
Summary In 2003, a case series was published describing the benefits of a less restrictive ketogenic diet (KD) started as an outpatient without a fast and without any restrictions on calories, fluids, or protein. This "Modified Atkins Diet" (MAD) restricts carbohydrates to 10 g/day (15 g/day in adults) while encouraging high fat foods. Now 5 years later, there have been eight prospective and retrospective studies published on this alternative dietary therapy, both in children as well as adults. In these reports, 45 (45%) have had 50,90% seizure reduction, and 28 (28%) >90% seizure reduction, which is remarkably similar to the traditional KD. This review will discuss basics and tips to best provide the MAD, evidence for its efficacy, suggestions about the role of ketosis in dietary treatment efficacy, and its side effect profile. Lastly, the possible future benefits of this treatment for new-onset seizures, adults, neurologic conditions other than epilepsy, and developing countries of the world will be discussed. [source]

Personal Taxation in Firm Market Valuation: Theory and Test,

ABSTRACT In this paper, I extend Ohlson's 1995 firm market valuation model to incorporate personal taxes: the taxes on dividends and the taxes on capital gains. Without personal taxes, firm market value can be expressed as the present value of future benefits received by the shareholders (dividends, in this case). With personal taxes, the benefits received by the shareholders should be classified into three categories (due to their different tax treatments): dividends, share repurchases, and new share issues (i.e., contributed capital). The extended model shows the effects of personal taxation on firm market valuation: retained earnings are valued less than contributed stocks, both dividends taxes and capital gains taxes affect retained earnings valuation and firm market value, and firms choose cash distribution methods (paying dividends and repurchasing shares) to increase their retained earnings valuation, therefore increasing their market value. An empirical test using a sample from the Disclosure Select Canada and Financial Post Card data bases for the years 1995-98 supports these personal tax effects. [source]

A livelihood from the forest: gendered visions of social, economic and environmental change in Southern Cameroon

Katrina Brown
This paper explores divergent perceptions and experiences of social, economic and environmental change of villagers in Southern Cameroon arguing that the economic crisis has impacted very differently on men and women within the same community and within households. The analysis highlights shifts in cropping patterns towards increased food crops, especially cassava and plantain, for cash. Sources of livelihood for men have diversified in the face of economic crisis, whereas women have reduced room to manoeuvre. This results in women becoming increasingly dependent on utilizing non-timber forest products for cash in order to meet their livelihood needs. However pressures on forest are increasing for a number of reasons and access to land and trees is becoming constrained, so future benefits from forest products will be contingent on clear, well defined and enforced community property rights. Copyright 2001 John Wiley & Sons, Ltd. [source]

Does the Capitalization of Development Costs Improve Analyst Forecast Accuracy?

Evidence from the UK
It has been documented that investments in Research and Development (R&D) are associated with increased errors and inaccuracy in earnings forecasts made by financial analysts. These deficiencies have been generally attributed to information complexity and the uncertainty of the future benefits of R&D. This paper examines whether the capitalization of development costs can reduce analyst uncertainty about the future economic outcome of R&D investments, provide outsiders with a better matching of future R&D-related revenues and costs, and therefore promote accuracy in analyst forecasts. UK data is used, because accounting rules in the United Kingdom permitted firms to conditionally capitalize development costs even before the introduction of the International Financial Reporting Standards. The choice to expense R&D rather than conditionally capitalize development costs is found to relate positively to signed analyst forecast errors. This finding is robust to controlling for the influence of other factors that may affect errors, as well as for the influence of R&D investments on forecast errors. The decision to capitalize versus expense is not observed to have a significant influence on analyst forecast revisions. The findings are interpreted as evidence that the choice to capitalize as opposed to expense may help to reduce deficiencies in analyst forecasts; hence, is informative for users of financial statements. Increased informativeness is expected to have repercussions for the effectiveness with which analysts produce earnings forecasts, and, as a result, market efficiency. [source]

Azerbaijan's resource wealth: political legitimacy and public opinion

After considering how well Azerbaijan's economy follows the trajectory of a ,resource curse' state, this paper investigates the political dimensions of the resource curse evident in Azerbaijan. Of particular interest is how Azerbaijan appears to establish external and internal political legitimacy. These dimensions of sovereignty are not necessarily balanced or present in equal measure. The paper assesses the recent transition in leadership in Azerbaijan as well as Azerbaijan's interactions with, and assessment by, the international community. Additionally, national survey data provide insights into public concerns, satisfaction with government policy, and views on democracy and freedom of expression. The paper concludes that at present there appears to be sufficient public expectation for future benefits, combined with institutional stability, to stave off widespread political instability for the time being. [source]