Taxation and capital structure : evidence from a transition economy

The authors examine the effects of taxation on financing policy using the corporate tax reform in 2001 in Croatia as a natural experiment. Since the extant literature on tax effects on capital structure studies listed firms in developed countries, it is worth investigating whether the same results apply to privately-held, small and medium size firms in transition economies. The findings provide significant evidence that lower taxes have affected the capital structure of Croatian firms, resulting in increased equity levels and decreased long-term debt levels. The authors also find that smaller and more profitable firms weremore likely to reduce their debt levels. These findings are consistent with the trade-off theory of capital structure, which suggests that lower taxes decrease the incentive to hold debt due to decreasing interest tax deductibility.Debt Markets,Taxation&Subsidies,Emerging Markets,Banks&Banking Reform,Access to Finance

What Do Unions Do to Executive Compensation?

We estimate the relation between union presence and executive compensation using a unique panel of executives in publicly listed US firms during the period 1992-2001. We find evidence that union presence is associated with lower levels of total executive compensation. We find this union effect to be primarily the result of substantially lower stock option awards, and to a lesser extent due to lower cash pay. Moreover, the negative relation between unionization and executive remuneration becomes larger at the higher end of the conditional distribution of executive remuneration. We also find that the elasticity of cash pay to financial performance is similar across unionized and non-unionized firms, and that union presence is associated with a more compressed intra-firm and inter-firm executive compensation structure.Unions, executive compensation, Implicit regulation

Why do firms adopt CEO stock options? Evidence from the United States

This paper examines the determinants of stock option introduction as a part of CEO compensation in listed US firms during the 1994–2004 period. The results are consistent with agency costs and recruiting considerations, suggesting that firms do not adjust CEO compensation in order to address the 'investment horizon' problem. The findings also suggest that CEO stock option adoption is not necessarily influenced by the same factors that have been found in the literature to affect the level of CEO stock option compensation and the adoption of broad-based stock option incentives. Overall, the findings provide evidence for several theoretical predictions, thus adding to our understanding of managerial incentives

The Deep X-ray Radio Blazar Survey (DXRBS). II. New Identifications

We have searched the archived, pointed ROSAT Position Sensitive Proportional Counter data for blazars by correlating the WGACAT X-ray database with several publicly available radio catalogs, restricting our candidate list to serendipitous X-ray sources with a flat radio spectrum (alpha_r <= 0.70). This makes up the Deep X-ray Radio Blazar Survey (DXRBS). Here we present new identifications and spectra for 106 sources, including 86 radio-loud quasars, 11 BL Lacertae objects, and 9 narrow-line radio galaxies. Together with our previously published objects and already known sources, our sample now contains 298 identified objects: 234 radio-loud quasars (181 flat-spectrum quasars: FSRQ [alpha_r <= 0.50] and 53 steep-spectrum quasars: SSRQ), 36 BL Lacs, and 28 narrow-line radio galaxies. Redshift information is available for 96% of these. Thus our selection technique is ~ 90% efficient at finding radio-loud quasars and BL Lacs. Reaching 5 GHz radio fluxes ~ 50 mJy and 0.1-2.0 keV X-ray fluxes a few x 10^-14 erg/cm^2/s, DXRBS is the faintest and largest flat-spectrum radio sample with nearly complete (~ 85%) identification. We review the properties of the DXRBS blazar sample, including redshift distribution and coverage of the X-ray-radio power plane for quasars and BL Lacs. Additionally, we touch upon the expanded multiwavelength view of blazars provided by DXRBS. By sampling for the first time the faint end of the radio and X-ray luminosity functions, this sample will allow us to investigate the blazar phenomenon and the validity of unified schemes down to relatively low powers.Comment: 33 pages, 5 figures. Accepted for publication in MNRAS. Postscript file also available at http://www.stsci.edu/~padovani/survey.htm

The Re-Acceleration of the Shock Wave in the Radio Remnant of SN 1987A

We report on updated radio imaging observations of the radio remnant of Supernova 1987A (SN 1987A) at 9 GHz, taken with the Australia Telescope Compact Array (ATCA), covering a 25-year period (1992-2017). We use Fourier modeling of the supernova remnant to model its morphology, using both a torus model and a ring model, and find both models show an increasing flux density, and have shown a continuing expansion of the remnant. As found in previous studies, we find the torus model most accurately fits our data, and has shown a change in the remnant expansion at Day 9,300 $\pm$210 from 2,300 $\pm$200 km/s to 3,610 $\pm$240 km/s. We have also seen an increase in brightness in the western lobe of the remnant, although the eastern lobe is still the dominant source of emission, unlike what has been observed at contemporary optical and X-ray wavelengths. We expect to observe a reversal in this asymmetry by the year $\sim$2020, and note the south-eastern side of the remnant is now beginning to fade, as has also been seen in optical and X-ray data. Our data indicate that high-latitude emission has been present in the remnant from the earliest stages of the shockwave interacting with the equatorial ring around Day 5,000. However, we find the emission has become increasingly dominated by the low-lying regions by Day 9,300, overlapping with the regions of X-ray emission. We conclude that the shockwave is now leaving the equatorial ring, exiting first from the south-east region of the remnant, and is re-accelerating as it begins to interact with the circumstellar medium beyond the dense inner ring.Comment: 22 pages, 14 figures. Accepted to Ap

The black hole X-ray binary MAXI J1348−-630 in quiescence

The properties of the disk/jet coupling in quiescent black hole low mass X-ray binaries (BH LMXBs) are still largely unknown. In this paper we present the first quasi-simultaneous radio and X-ray detection in quiescence of the BH LMXB MAXI J1348$-$630, which is known to display a hybrid disk/jet connection that depends on the accretion rate. We performed deep X-ray and radio observations using the Chandra X-ray Observatory and the Australia Telescope Compact Array. MAXI J1348$-$630 is detected for the first time in quiescence at an X-ray luminosity $L_{\rm X} = (7.5 \pm 2.9) \times 10^{30} (D/2.2 \ {\rm kpc})^2$ erg s$^{-1}$: one of the lowest X-ray luminosities observed for a quiescent BH LMXB, possibly implying a short orbital period for the system. MAXI J1348$-$630 is also detected in radio at $L_{\rm R} = (4.3 \pm 0.9) \times 10^{26} (D/2.2 \ {\rm kpc})^2$ erg s$^{-1}$. These detections allow us to constrain the location of MAXI J1348$-$630 on the radio/X-ray diagram in quiescence, finding that the source belongs to the standard (radio-loud) track in this phase. This provides a strong confirmation that hybrid-correlation sources follow the standard track at low luminosities and down to quiescence, thus improving our knowledge of the disk/jet connection in BH LMXBs.Comment: 5 pages, 3 figures. Accepted for publication in MNRAS Letter