1,721,024 research outputs found
How corporate governance and globalization can run afoul of the law and good practices in business: The Enron's disgraceful affair.
Full text linkThe purpose of this paper is to set out the Enron’s demise into the perspective of Corporate and Global Governance. To accomplish this target, the incremental cash flow model is expanded to give room for governance issues, while a functional introduction to information sets is developed, including bounded rationality, asymmetric information, opportunistic behavior, transaction costs and agency problems. Then, corporate governance is linked to globalization by means of some recent approaches that go beyond a narrow economic mindset to encompass a far-reaching dynamics. Taking advantage of such background, the Enron’s story is tracked down over a span of fifteen years since its starting day to its bankruptcy filing. Leading events are explained from corporate and global governance viewpoints, while an in-depth analysis is worked out on Enron’s complex game of deception and breach of contracts: the outrageous affiliated limited partnerships, the lavish pay package to its executives, the involvement with global governance through the Indian affair and the Taliban connection. It is for the incremental cash flow model to explain malfeasance with cash flows from assets, and how cash flows to creditors were actually contrived. Furthermore, to highlight how cash flows were swindled from stockholders and, finally, how Enron made wheeling and dealing with cash flows on behalf of its managers.corporate governance, global governance, incremental cash flow model, globalization, information sets, good practices.
It is for global governance to sharpen up international relations by fulfilling a fiduciary role and carrying out the brokerage of asymmetric information
Full text linkThis paper argues that there are qualifying grounds for global governance to make a contribution to the study of International Relations. Starting with the Westphalian state model and its compromises, it moves on to outline the realist and liberal approaches. Next, it frames the concept of plain governance, expanding on its varieties of public and global scope. Then, it sets up a toolbox to address World Politics issues from the standpoint of governance. Afterwards, it lays the foundations of two functions by which global governance may bridge some gaps left open by realism and liberalism. The first one involves the fiduciary role in international relations. The second displays how global governance structures carry out the brokerage of asymmetric information.governance, global governance, public governance, asymmetric information, fiduciary role, realism and liberalism.
Incremental cash flows, information sets and conflicts of interest.
Full text linkThis paper attempts to make of the standard incremental cash flow model (SICFM) a functional vehicle for coping with conflicts of interest. After outlining the model, residual rights to cash flows are linked to residual risks. Then, the underlying information sets to cash flows are brought to light, stressing the nurturing factors behind conflicts of interest: bounded rationality, asymmetric information, opportunistic behavior and transaction costs. Next, decision rights and organization forms are included into the frame of the paper. Finally, the core subject section shows how incremental cash flows come in handy to root out conflicts of interest, firstly by disclosing the residual information sets that divide managers, stockholders and creditors and, secondly, by advocating the design of ex~ante restrictive covenants on the uses and sources of incremental expected cash flows.cash flow, conflict of interest, information set, residual rights
Public Governance. A Blueprint for Political Action and Better Government
Full text linkThis paper sets forth a comprehensive viewpoint about how Public Governance should be assessed and worked-out, by making three contributions to the subject matter. Firstly, it provides the semantics by which this field of learning and practice may become operational in Political Science. Next, a four-tiered framework of analysis is laid bare, which deals with architecture, covenants and safeguards, collective action, and deviant behavior. Afterwards, and focusing on conflict systems, we give heed to the underlying logic of Public Governance, which stems from a network built up around the mechanisms of participation, contest and safeguarding.governance, public governance, conflict systems, institutional safeguards
Simple and enlarged separation portfolios. On their Use when Arbitraging and Synthesizing Securities.
Full text linkThis paper seeks to provide a framework for separation portfolios when they are used not only as synthetics of a matching security but also as building blocks of arbitrage portfolios, in a background provided by the CAPM world. Firstly, synthetics are defined by means of a vectorial framework that maps portfolios onto their risk-return profiles. Separation portfolios are extensively analyzed afterwards, establishing three propositions that lay the groundwork for using them as synthetics. Next, a distinction is brought about between plain separation portfolios (which are located on the Capital Market Line) and enlarged separation portfolios (which lie outside the CML). Furthermore, it is shown that simple separation portfolios become synthetics in few cases only, whereas enlarged portfolios allow for synthetics in much wider contexts. Later, arbitrage portfolios are designed by means of simple separation portfolios in the context of the Security Market Line, and also by resorting to the enlarged ones without requiring the SML as a benchmark. Finally, the discussion extends over bond portfolios, to embody their risky features into the viewpoint set forth in the paper.Plain Separation Portfolios, Enlarged Separation Portfolios, Synthetics, Portfolios, Arbitrage Portfolios
The Brokerage of Asymmetric Information
Full text linkIn this paper we oversee the logic of information sets, firstly handling information and markets in perfect environments and, secondly, dealing with information and markets in imperfect environments, in the context of bounded rationality. Further on, asymmetric information is addressed together with the role of opportunistic behaviour through hidden action, hidden information, the free-rider problem and signaling, expanding on financial accounting and asymmetric information. At last, asymmetric markets are expanded on, reviewing the buyers’ and sellers’ markets so as to handle the performance of intermediaries who stand ready to provide with immediacy and liquidity to buyers and sellers of financial assets. There are two contributions that this paper brings forward: firstly, an intuitive treatment of information sets in the context of mathematical Set Theory so as to make tractable some issues still neglected. Secondly, we claim and develop that a careful assessment of information sets makes headway towards an approach that regards market makers and other intermediaries as brokers of asymmetric information.
THE SEMANTICS OF GOVERNANCE. (The common thread running through corporate, public, and global governance.)
Full text linkThis paper argues that the semantics of governance illustrates connections and provides a unifying view from which to understand much better its natural branches: corporate, public and global governance. In this regard, governance is presented from the point of view of a distinctive field of learning and practice. Further, three levels of analysis are carried out to drive the subject home. Firstly, it highlights the extent of corporate governance within an institutional framework, and also gives heed to some performance measurement devices: the governance index, the comparativeeconomics approach, and the governance slack model. Secondly, it frames the notion of public governance while due regard is given to the World Bank’s methodology and the public governance wave of reforms in the 80s and 90s. Afterwards, the development goes further to handle the linkage among constituents, charters and representation, so as to later cope with the problems raised by accountability and reputational intermediaries. Thirdly, it addresses the semantics of global governance, country assessments and corporate governance in global settings.Corporate Governance, Public Governance, Global Governance
Differential Rates of Return and Residual Information Sets (A Discrete Approach)
Full text linkIt is our purpose here to show the deep relationship between differential rates and their underlying information sets. To accomplish our task, we will make for the following stages: In the first place, we deal with scaled changes along a period and conditional rates of change within a discrete environment. Next, rings and algebras of sets are addressed, so as to provide information sets with a suitable structure and give grounds to differential rates. Afterwards, differential rates are presented rigourosly, and two important lemmas follow through: the first one makes possible the use of differential rates with restrictive assumptions on their information sets, as customary applications seem to require. The second lemma attempts a broader outcome in a general setting so as to cope with differential rates defined on more realistic information sets. Both lemmas contributerigorously to shape definitions of narrow and broad differential rates on residual information sets.Information sets, differential rates of return, transaction costs
Differential rates, residual information sets and transactional algebras
Full text linkThe purpose of this paper is to model differential rates over residual information sets, so as to shape transactional algebras into operational grounds. Firstly, simple differential rates over residual information sets are introduced by taking advantage of finite algebras of sets. Secondly, after contextual sets and the relevant algebra of information sets is suitably fashioned, generalized differential rates over residual information sets are expanded on, while a recursive algorithm is set forth to characterize such rates and sets. Thirdly, the notion of transactional algebra is presented and heed is given to the costs of running such structure. Finally, an application to financial arbitrage processes is fully developed within a transactional algebra, setting up arbitrage returns net of transaction costs, establishing boundary conditions for an arbitrage to take place, and finally allowing for a definition of what should be meant by financial arbitrage within a transactional algebra.differential rates, residual information sets, transactional algebras, arbitrage
Corporate Rent-Seeking and the managerial soft-budget constraint
Full text linkThis paper seeks to expand on two topical strands in Government Finance and Political Science literature, rent-seeking and the soft-budget constraint, so as to bring forth a strong linkage with corporate governance environments. It will attempt to accomplish this task by setting up a distinctive framework of analysis that hinges on incremental cash flows. Firstly, it claims that both rent-seeking behavior and the soft-budget constraint are worthy of being applied to corporate governance learning and practice. Secondly, the paper contributes to focus on cash-flows reliability and managers’ accountability. Thirdly, it is shown how conflicts of interest underlie rent-seeking behavior, and how the latter relates to the soft-budget constraint.Rent-Seeking, Soft-Budget Constraint, Corporate Governance, Incremental Cash Flow model, Conflicts of Interest.
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