Master Limited Partnership Research in Accounting, Economics, and Finance

2021 ◽  
Author(s):  
Aaron Mandell
Keyword(s):  
Capital Structure ◽  
Payout Policy ◽  
Organizational Form ◽  
Future Research ◽  
Limited Partnership ◽  
Partnership Research ◽  
Limited Partnerships

I review the research on master limited partnerships (“MLPs”) in the accounting, economics, and finance literature. I begin by outlining the scope of the review and providing a brief background on the structure, taxation, and governance of master limited partnerships. Next, I describe the various sources from which MLP data is derived. I then review the research, aggregating it into four broad categories: (1) taxes and organizational form; (2) taxes, capital structure, and payout policy; (3) valuation; and (4) governance research. Within each section, I present possible avenues for future research in accounting, economics, and finance.

The Effect of Shareholder-Level Taxes on Organizational Form and Stock Ownership: Evidence from Equity Carve-Outs of Master Limited Partnerships

2018 ◽  
Vol 94 (1) ◽  
pp. 327-351 ◽  
Author(s):  
Steven Utke
Keyword(s):  
Organizational Form ◽  
Data Availability ◽  
Stock Ownership ◽  
Limited Partnership ◽  
Average Decrease ◽  
Tax Exempt ◽  
Limited Partnerships ◽  
Jel Classifications

ABSTRACT I examine the role of heterogeneous shareholder-level taxes in organizational form decisions and in subsequent changes in investor stock ownership. Specifically, I investigate the decision to form a master limited partnership (MLP), which is a tax-advantaged entity for tax-sensitive shareholders, but a tax-disadvantaged entity for tax-exempt shareholders. Consistent with shareholder-level taxes influencing organizational form decisions, I find that firms owned by more tax-exempt shareholders are less likely to carve-out MLPs. Consistent with shareholder-level taxes influencing stock ownership, I find that tax-sensitive investors, on average, decrease their ownership in the parent and hold a relatively larger ownership share in the MLP than in the parent after the carve-out. In contrast, tax-exempt investors own less of the MLP than of the parent. These results provide evidence that firms cater to investors' shareholder-level taxes in making organizational form decisions and that investors sort on tax characteristics inherent to organizational form. JEL Classifications: G32; H24; H25. Data Availability: Data used in this study are available from public sources identified in the paper.

scholarly journals Kepastian Hukum Pendaftaran Persekutuan Komanditer Pada Sistem Administrasi Badan Usaha

Acta Comitas ◽  
2020 ◽  
Vol 5 (3) ◽  
pp. 536
Author(s):  
Dentria Cahya Sudarsa ◽  
I Wayan Parsa
Keyword(s):  
Business Administration ◽  
Legal Certainty ◽  
Legal Research ◽  
Administration System ◽  
Limited Partnership ◽  
Trade Law ◽  
General Law ◽  
Civil Union ◽  
Limited Partnerships ◽  
Article 5

The writing of this article is based on the issuance of new regulations regarding the establishment and registration of limited partnership / CV in the business administration system (SABU) in accordance with the provisions of Article 5 paragraph (1) Regulation of the Minister of Law and Human Rights Number 17 of 2018 concerning Registration of Limited Partnerships, Firms, and the Civil Union which previously was only regulated in the Trade Law Book. Type of research used in this article is normative legal research. The purpose of this article is to determine the mechanism and legal certainty in the registration of the Limited Partnership after the enactment of business administration system. The results of the research and writing of this article are that there is an overlap in the registration mechanism for the Limited Partnership based on these two rules, it can be concluded that due to the provisions in KUHD and Minister Regulation No. 17 of 2018 both are still valid, the principle of legal preference can be used, namely lex specialis derogat legi lex generalis, means that a more specific law can override a more general law. The advice that can be given is to conduct a study of the enactment of the Minister Regulation whether to follow or not the provisions in the Trade Law Books due to avoid conflicting norms in the registration of a limited partnership.

scholarly journals Determinants of the Capital Structure of Companies Listed on the Stock Exchanges of Argentina, Brazil and Chile: An Empirical Analysis of the Period from 2007 to 2016

2020 ◽  
Vol 12 (6) ◽  
pp. 18
Author(s):  
Marcelo Rabelo Henrique ◽  
Sandro Braz Silva ◽  
Antônio Saporito ◽  
Sérgio Roberto da Silva
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Order Theory ◽  
Future Research ◽  
Stock Exchanges ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Speed Of Adjustment ◽  
Asset Growth ◽  
The Capital Structure

The present investigation refers to the determinants of the capital structure, using the technique of multiple regression through Panel Data of open capital companies in the stock exchanges of Argentina, Brazil and Chile, in order to know the behavior of determinants of the capital structure in relation to Trade-Off Theory (TOT) and Pecking Order Theory (POT). The POT offers the existence of a hierarchy in the use of sources of resources, while the TOT considers the existence of a target capital structure that would be pursued by the company. Sixteen accounting variables were used, in which five are dependent (related to indebtedness) and eleven are independent variables (explaining the determinants of the capital structure). It is observed that, with the use of the Panel Data, the determinants that seem to influence in a more accentuated way the levels of debt of the companies are: current liquidity, tangibility, return to shareholders, return of assets, sales growth, asset growth, market-to-book and business risk measured by the volatility of benefits. Suggestions for future research include the use of Panel Data to analyze other factors that may influence indebtedness, mainly taxes and dividends, as well as a deeper analysis of factors that may influence the speed of adjustment towards the supposed objective level.

scholarly journals conceptual review of capital structure under risk-based capital regime, risk profile of insurer’s and performance

2021 ◽  
Vol 8 (1) ◽  
pp. 15-27
Author(s):  
Sarfaraz Ahmed Bhutto ◽  
Ikhtiar Ali Ghumro ◽  
Zulfiqar Ali Rajper ◽  
Saifullah Shaikh
Keyword(s):  
Capital Structure ◽  
Conceptual Framework ◽  
Risk Profile ◽  
Future Research ◽  
Risk Propensity ◽  
Holistic Understanding ◽  
Equity Ratio ◽  
Insurance Firms ◽  
And Performance ◽  
Corporate Risk

This paper evaluates capital structure under risk-based capital regime from the perspective of insurance firms and its performance. It also evaluates the moderating effect of insurer’s risk profile on capital-performance relationship. The authors aim to reveal ambiguities, gaps and omissions in the literature and to sketch avenues for future research. A conceptual framework for capital structure under risk-based capital era and its application is suggested focusing on equity, technical provision and required risk propensity for maximizing profit and wealth for all stakeholders. The research reviews that capital structure of insurers differs from non-insurance firms as such risk-based capital regulation must not only focus on the various types of risk but also recognized these differences. It is shown that insurers’ capital structure contains equity and technical provisions which comprises accruals and creditors, payable claims and insurance funds as an alternative of equity and financial debt as it is with conventional non insurance firms. This study thus stressed that for capital structure to best explain performance of insurers, it must be measured by equity ratio and technical provision ratio in place of debt ratio and corporate risk profile (quantitative and qualitative) must enter its sequence of performance relational analysis and effectiveness equations. We stressed further that only with the proposed conceptual framework would a holistic understanding of insurer’s capital structure be achieved while the observed contradictory and inconclusive empirical findings on capital structure and firm performance could be resolved.

Research on capital structure determinants: a review and future directions

2017 ◽  
Vol 13 (2) ◽  
pp. 106-132 ◽  
Author(s):  
Satish Kumar ◽  
Sisira Colombage ◽  
Purnima Rao
Keyword(s):  
Capital Structure ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Secondary Data ◽  
Theoretical Models ◽  
Order Theory ◽  
Organizational Level ◽  
Future Research ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to study the status of studies on capital structure determinants in the past 40 years. This paper highlights the major gaps in the literature on determinants of capital structure and also aims to raise specific questions for future research. Design/methodology/approach The prominence of research is assessed by studying the year of publication and region, level of economic development, firm size, data collection methods, data analysis techniques and theoretical models of capital structure from the selected papers. The review is based on 167 papers published from 1972 to 2013 in various peer-reviewed journals. The relationship of determinants of capital structure is analyzed with the help of meta-analysis. Findings Major findings show an increase of interest in research on determinants of capital structure of the firms located in emerging markets. However, it is observed that these regions are still under-examined which provides more scope for research both empirical and survey-based studies. Majority of research studies are conducted on large-sized firms by using secondary data and regression-based models for the analysis, whereas studies on small-sized firms are very meager. As majority of the research papers are written only at the organizational level, the impact of leverage on various industries is yet to be examined. The review highlights the major determinants of capital structure and their relationship with leverage. It also reveals the dominance of pecking order theory in explaining capital structure of firms theoretically as well as statistically. Originality/value The paper covers a considerable period of time (1972-2013). Among very few review papers on capital structure research, to the best of authors’ knowledge; this is the first review to identify what is missing in the literature on the determinants of capital structure while offering recommendations for future studies. It also synthesize the findings of empirical studies on determinants of capital structure statistically.

Capital structure puzzle and banks: need for a unique approach?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ashish Pandey
Keyword(s):  
Capital Structure ◽  
Banking Industry ◽  
Methodological Approach ◽  
Theory Model ◽  
Argumentation Theory ◽  
Future Research ◽  
Content Type ◽  
Unique Approach ◽  
The Capital Structure

Purpose This study aims to examine some of the commonly proposed deviants associated with the banking industry in the context of the capital structure puzzle. The paper considers the role of guarantees, information asymmetry and other frictional factors in the context of modern financial markets and examines whether these factors deserve special consideration in solving the capital structure puzzle for banks. Design/methodology/approach The authors adopt the argumentation theory model proposed by Toulmin (1958) as the methodological approach in this paper. Findings The findings from this paper demonstrate that any solution to the capital structure puzzle, whenever available, will also solve the capital structure puzzle for banks without additional efforts. The focus of future research should be on solving the generic capital structure puzzle for a universal set of firms rather than focusing on the banking industry as a subset with unique features. Originality/value The paper adopts a novel methodological approach offered by argumentation theory to pursue the enquiry. To the best of the knowledge, this paper is the first paper in the finance literature that uses argumentation theory to develop a theoretical construct. The finding from this study offers guidance for the proliferation of research paradigms in the capital structure puzzle.

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