THIS paper is concerned with those actions of business firms which have harmful effects on others. The standard example is that of a factory the smoke from which has harmful effects on those occupying neighbouring properties. The economic analysis of such a situation has usually proceeded in terms of a divergence between the private and social product of the far' ory, in which economists have largely followed the treatment of Pigou in The Economics of Welfare. The conclusions to which this kind of analyris seems to have led most economists is that it would be desirable to make the owner of the factory liable for the damage caused to those injured by the smoke, or alternatively, to place a tax on the factory owner varying with the amount of smoke produced and equivalent in money terms to the damage it would cause, or finally, to exclude the factory from residential districts (and presumably from other

闡釋《社會成本問題》[The Problem of Social Cost]

We investigate the conventional wisdom that competition among interested parties attempting to influence a decision maker by providing verifiable information brings out all the relevant information. We find that, if the decision maker is strategically sophisticated and well informed about the relevant variables and about the preferences of the interested party or parties, competition may be unnecessary; while if the decision maker is unsophisticated or not well informed, competition is not generally sufficient. However, if the interested parties' interests are sufficiently opposed, or if the decision maker is seeking to advance the parties' decision maker's need for prior knowledge about the relevant variables and for strategic sophistication. In other settings, only the combination of competition among information providers and a sophisticated skepticism is sufficient to allow defective decision making.

Relying on the Information of Interested Parties

HP-filter for Java

How Big Is the Premium for Currency Risk

Alternatives to the Multinational Enterprise

https://cyberleninka.org/article/n/711693.pdf

Does infrastructure really explain economic growth in Sub-Saharan Africa?

Individual lending versus group lending : an evaluation with Kenya's microfinance data

This paper investigates the relationship between leverage and the financial performance of listed firm in Kenya We use annual data for the period 2002-2011 Using various panel procedures, our study finds reasonably strong evidence that leverage significantly, and negatively, affects the profitability of listed firms in Kenya However, leverage has no effect on Tobin’s Q, our proxy for firm value Our results are robust to alternative panel specifications and hold for both small-size and large-size firms Second, because the performance of firms depends on other things than just their capital structure, we control for the effects of those other variables by including them in our models In this respect, our findings suggest that asset tangibility, sales growth and firm size are important determinants of profitability Surprisingly, asset tangibility consistently has a negative relationship with profitability For small firms, our results indicate that sales growth and firm size are important factors driving firm value (Tobin’s Q) Yet, the same variables do not appear to drive the value of large firms

/pdf/capital-structure-profitability-and-firm-value-panel-siklpdymkb.pdf

Capital Structure, Profitability and Firm Value: Panel Evidence of Listed Firms in Kenya

This paper investigates the relationship between leverage and the financial performance of listed firm in Kenya. We use annual data for the period 2002 – 2011. Using various panel procedures, our study finds reasonably strong evidence that leverage significantly, and negatively, affects the profitability of listed firms in Kenya. However, leverage has no effect on Tobin’s Q, our proxy for firm value. Our results are robust to alternative panel specifications and hold for both small-size and large-size firms. Second, because the performance of firms depends on other things than just their capital structure, we control for the effects of those other variables by including them in our models. In this respect, our findings suggest that asset tangibility, sales growth and firm size are important determinants of profitability. Surprisingly, asset tangibility consistently has a negative relationship with profitability. For small firms, our results indicate that sales growth and firm size are important factors driving firm value (Tobin’s Q). Yet, the same variables do not appear to drive the value of large firms.

Capital structure, profitability and firm value: panel evidence of listed firms in Kenya

This work is the first to investigate simultaneously the occurrence of unconditional currency risk pricing and equity market segmentation in Africa’s major stock markets. The multi-factor asset pricing theory provides the theoretical framework for our model. We find strong evidence suggesting that Africa’s equity markets are partially segmented. However, we find insufficient evidence to reject the hypothesis that foreign exchange risk is not unconditionally priced in Africa’s stock markets. This result is robust to alternative foreign exchange rate-adjusted return measures. These findings suggest that international investors can diversify into Africa’s equity markets without worrying about unconditional risks associated with foreign exchange rate fluctuations.

Odongo Kodongo

Papers

Does infrastructure really explain economic growth in Sub-Saharan Africa?

Individual lending versus group lending : an evaluation with Kenya's microfinance data

Capital Structure, Profitability and Firm Value: Panel Evidence of Listed Firms in Kenya

Capital structure, profitability and firm value: panel evidence of listed firms in Kenya

Foreign exchange risk pricing and equity market segmentation in Africa