Dividend Policy, Agency Costs, and Earned Equity

Why do firms pay dividends? If they didn't their asset and capital structures would eventually become untenable as the earnings of successful firms outstrip their investment opportunities. Had they not paid dividends, the 25 largest long-standing 2002 dividend payers would have cash holdings of $1.8 trillion (51$160 billion (6% of assets), and $1.2 trillion in excess of their collective$600 billion in long-term debt. Their dividend payments prevented significant agency problems since the retention of earnings would have given managers command over an additional $1.6 trillion without access to better investment opportunities and with no additional monitoring. This logic suggests that firms with relatively high amounts of earned equity (retained earnings) are especially likely to pay dividends. Consistent with this view, the fraction of publicly traded industrial firms that pays dividends is high when the ratio of earned equity to total equity (total assets) is high, and falls with declines in this ratio, becoming near zero when a firm has little or no earned equity. We observe a highly significant relation between the decision to pay dividends and the ratio of earned equity to total equity or total assets,controlling for firm size, profitability, growth, leverage, cash balances, and dividend history. In our regressions, earned equity has an economically more important impact than does profitability or growth. Our evidence is consistent with the hypothesis that firms pay dividends to mitigate agency problems.

Fundamentals, Market Timing, and Seasoned Equity Offerings

Firms conduct SEOs to resolve a near-term liquidity squeeze, and not primarily to exploit market timing opportunities. Without the SEO proceeds, 62.6% of issuers would have insufficient cash to implement their chosen operating and non-SEO financing decisions the year after the SEO. Although the SEO decision is positively related to a firm's market-to-book (M/B) ratio and prior excess stock return and negatively related to its future excess return, these relations are economically immaterial. For example, a 150% swing in future net of market stock returns (from a 75% gain to a 75% loss over three years) increases by only 1% the probability of an SEO in the immediately prior year. Strikingly, most firms with quintessential "market timer" characteristics fail to issue stock and a non-trivial number of mature firms do issue stock, with current and former dividend payers raising more than half of all issue proceeds.

Characterizing regulation and negligence rule uncertainty in solid waste management

We propose a model of municipal waste management that combines waste quality monitoring with leachate control. These inputs modulate two types of uncertainty. First, waste quality is uncertain, as it arrives from several nonpoint sources and may contain hazardous waste. Second, while U.S. federal law requires landfill operators to employ these specific inputs, the rates at which they should be employed to avoid culpable negligence for environmental damages are uncertain. We extend the economic literature regarding the management of these types of uncertainty to this municipal waste context.

A dynamic and stochastic analysis of fertilizer use in swidden agriculture

The number of times a crop can be harvested on a cleared parcel of forest land (CPFL) before this land must be fallowed is dependent on the decision to use or not to use fertilizers to enhance soil fertility. As such, we first construct a theoretical model of fertilizer use by a swidden cultivator when this cultivator can choose whether or not to enhance soil fertility by using fertilizers. Second, we analyze two different policies (fertilizer use and no fertilizer use) for overseeing the problem of soil fertility deterioration on the CPFL. Finally, we identify a particular likelihood function and we show that whether the problem of soil fertility impairment is best addressed with a fertilizer use policy or with a no fertilizer use policy depends essentially on this likelihood function.

8. The 1980s

From the Introduction, “The Changes at ILR that began in the seventies slipped imperceptibly into the eighties, and those that may have originated at that time have, for better or worse, left their mark on the present decade. In other words, dividing history into decades is not a particularly precise way of delineating times. Clearly, there was much gaiety preceding and following the Gay Nineties, as there were certainly many roars heard before and after the Roaring Twenties. Moreover, since the speed of change in academia runs at such a leisurely pace, it is virtually impossible to say exactly when an idea found its way into formal practice. Includes: Introduction; A Dean’s View, 1980-85; Deaning, 1985-88; Robert Risley; and An Advisory Council Perspective

Light Assisted Collisional Loss in a 85/87^{85/87}Rb Ultracold Optical Trap

We have studied hetero- and homonuclear excited state/ground state collisions by loading both $^{85}$Rb and $^{87}$Rb into a far off resonant trap (FORT). Because of the relatively weak confinement of the FORT, we expect the hyperfine structure of the different isotopes to play a crucial role in the collision rates. This dependence on hyperfine structure allows us to measure collisions associated with long range interatomic potentials of different structure: such as long and short ranged; or such as purely attractive, purely repulsive, or mixed attractive and repulsive. We observe significantly different loss rates for different excited state potentials. Additionally, we observe that some collisional channels' loss rates are saturated at our operating intensities (~15 mW/cm$^{2}$). These losses are important limitations in loading dual isotope optical traps.Comment: about 8 pages, 5 figure

Peeled film GaAs solar cells for space power

Gallium arsenide (GaAs) peeled film solar cells were fabricated, by Organo-Metallic Vapor Phase Epitaxy (OMVPE), incorporating an aluminum arsenide (AlAs) parting layer between the device structure and the GaAs substrate. This layer was selectively removed by etching in dilute hydrofloric (HF) acid to release the epitaxial film. Test devices exhibit high series resistance due to insufficient back contact area. A new design is presented which uses a coverglass superstrate for structural support and incorporates a coplanar back contact design. Devices based on this design should have a specific power approaching 700 W/Kg

Penalty structures and seterrence in a swo-stage model: Experimental evidence

Increasing penalty structures for repeat offenses are ubiquitous in penal codes, despite little empirical or theoretical support. Multi-period models of criminal enforcement based on the standard economic approach of Becker (1968) generally find that the optimal penalty structure is either flat or declining. We experimentally test a two-stage theoretical model that predicts decreasing penalty structures will yield greater deterrence than increasing penalty structures. We find that decreasing fine structures are more effective at reducing risky behavior. Additionally, our econometric analyses reveal a number of behavioral findings. Subjects are deterred by past convictions, even though the probability of detection is independent across decisions. Further, subjects appear to take the two-stage nature of the decision making task into account, suggesting that subjects consider both current and future penalties. Even controlling for the fine a subject faces for any given decision, being in a decreasing fine structure has a significant effect on deterrence

High Frequency (4th order) Sequence Stratigraphy of Early Miocene Deltaic Shorelines, Offshore Texas and Louisiana

DOE-NETL Award Numbers DE-FE0026083 and DEFE0029487Bureau of Economic Geolog

Phase I/II study of the deacetylase inhibitor panobinostat after allogeneic stem cell transplantation in patients with high-risk MDS or AML (PANOBEST trial)

Maintenance therapy after allogeneic hematopoietic stem cell transplantation (HSCT) for acute myeloid leukemia (AML) or myelodysplastic syndrome (MDS) is conceptually attractive to prevent relapse, but has been hampered by the limited number of suitable anti-leukemic agents. The deacetylase inhibitor (DACi) panobinostat demonstrated moderate anti-leukemic activity in a small subset of patients with advanced AML and high-risk MDS in phase I/II trials.1, 2 It also displays immunomodulatory activity3 that may enhance leukemia-specific cytotoxicity4 and mitigate graft versus host disease (GvHD), but conversely could impair T- and NK cell function.5, 6 We conducted this open-label, multi-center phase I/II trial (NCT01451268) to assess the feasibility and preliminary efficacy of prolonged prophylactic administration of panobinostat after HSCT for AML or MDS. The study protocol was approved by an independent ethics committee and conducted in compliance with the Declaration of Helsinki. All patients provided written informed consent. ..