Investment as the opportunity cost of dividend signaling

2021 ◽  
Author(s):  
Zachary R. Kaplan ◽  
Gerardo Pérez-Cavazos
Keyword(s):  
Cross Section ◽  
Opportunity Cost ◽  
Negative Association ◽  
Growth Options ◽  
Earnings Information ◽  
Additional Information ◽  
Dividend Signaling ◽  
Investment Opportunities ◽  
Aggregate Investment ◽  
Investment Spending

We provide evidence that dividends signal sustainable earnings generated by assets-in-place for firms with weak investment opportunities. In the cross-section, both dividend levels and changes contain more earnings information among firms with weaker investment opportunities. Intertemporally, when aggregate investment opportunities in the economy are worse, dividend changes convey more earnings information. In contrast, dividends have a more negative association with investment spending for firms with strong growth options, as funding investment is a higher priority for those firms. Collectively, our findings suggest that dividends serve as a counter-signal, whereby additional information about investment opportunities give rise to signaling that is non-monotonic in firm quality.

scholarly journals ANALISIS PENGANGGARAN MODAL PADA PT ULTRAJAYA MILK INDUSTRY Tbk. TAHUN 2013-2017

2018 ◽  
Vol 14 (2) ◽  
pp. 101-110
Author(s):  
Eka Lusvita Wulandari ◽  
Lily Rahmawati Harahap
Keyword(s):  
Opportunity Cost ◽  
Net Present Value ◽  
Average Rate ◽  
Capital Budgeting ◽  
Payback Period ◽  
Investment Analysis ◽  
Present Value ◽  
Investment Opportunities ◽  
Milk Industry ◽  
Real Losses

Capital budgeting in practice is intended to conduct an investment analysis of some available investment alternatives, and then determine or choose the most profitable investment. Inappropriateness in determining investment options will result in losses of either real losses or losses due to loss of opportunity to gain an opportunity cost that can actually be realized. The investment analysis will select the available investment opportunities, so that investment can be selected that will provide the greatest benefit of every dollar invested. Capital budgeting techniques can be analyzed by appraisal method of investment as follows: Average Rate of Return, Payback Period , Net Present Value, and Profitability Index.

scholarly journals Growth options, macroeconomic conditions, and the cross section of credit risk

2013 ◽  
Vol 107 (2) ◽  
pp. 350-385 ◽  
Author(s):  
Marc Arnold ◽  
Alexander F. Wagner ◽  
Ramona Westermann
Keyword(s):  
Credit Risk ◽  
Cross Section ◽  
Growth Options ◽  
Macroeconomic Conditions ◽  
The Cross

Contribution to the systematic knowledge of Lamium multifidum and L. orientale (Lamiaceae)

Phytotaxa ◽  
2015 ◽  
Vol 203 (2) ◽  
pp. 147 ◽  
Author(s):  
Bayram Atasagun ◽  
Ahmet Aksoy ◽  
Esra Martin
Keyword(s):  
Chromosome Number ◽  
Cross Section ◽  
Pollen Grains ◽  
Morphological Characters ◽  
Previous Description ◽  
Somatic Chromosome Number ◽  
Additional Information ◽  
Naturally Occurring ◽  
First Time ◽  
Systematic Knowledge

Some morphological, anatomical, palynological and karyological features of Lamium multifidum and L. orientale (Lamiaceae) naturally occurring in Turkey have been studied. Additional information was added to the previous description of these species. Anatomically, both L. multifidum and L. orientale had an annual taproot, stems quadrangular in cross-section, leaves bifacial. The nutlets were ovoid in outline and trigonous in cross section, blackish-dark brownish, with glabrous surface. The pollen grains of both species were tricolpate, shape subprolate, ornamentation reticulate. In both species, the somatic chromosome number resulted 2n = 14. The anatomical and palynological features, chromosome number and morphological characters of both species were reported for the first time in this study.

scholarly journals Consumer Imperfect Information in the Market for Expired and Nearly Expired Foods and Implications for Reducing Food Waste

2018 ◽  
Vol 10 (11) ◽  
pp. 3835 ◽  
Author(s):  
Alba Collart ◽  
Matthew Interis
Keyword(s):  
Willingness To Pay ◽  
Environmental Impacts ◽  
Food Waste ◽  
Opportunity Cost ◽  
Choice Experiment ◽  
Imperfect Information ◽  
Waste Reduction ◽  
Perishable Products ◽  
Additional Information ◽  
Incentive Compatible

A substantial source of food waste occurs when consumers and sellers dispose of expired food despite it being safe to eat. We conduct an incentive-compatible, non-hypothetical laboratory choice experiment in which 150 participants choose between food products of varying perishability level at various dates before or after their best-before dates. In one treatment, participants received information about the interpretation of food date labels. In another they received this information plus additional information on food waste due to date label confusion and its environmental impacts. We find that clarifying the meaning of date labels is insufficient to change preferences for food past its best-before date, but when a link between date labels, food waste, and its environmental impacts is made, participants’ willingness-to-pay for expired food increases, particularly for expired frozen or recently expired semi-perishable products. Our findings have implications for food waste reduction efforts because increasing the value of expired food increases the opportunity cost of wasting expired but consumable food.

scholarly journals Can Backward-looking and Forward-looking Information Debias Prospect Effect in Earnings Announcement?

2017 ◽  
Vol 19 (3) ◽  
pp. 227
Author(s):  
Jogianto Hartono ◽  
Sri Wahyuni
Keyword(s):  
Information Disclosure ◽  
Quantitative Description ◽  
Earnings Announcement ◽  
Earnings Information ◽  
Additional Information ◽  
Clear Information ◽  
Forward Looking ◽  
Negative Earnings

This study examines the important issue of whether additional pieces of information about the earnings’ characteristics (their quantitative description and predicted earnings) can debias the prospect effect of the earnings’ announcement. The prospect effect bias can be mitigated by the availability of clear information and an integrated disclosure. Additional information that is included with the previous information will make the investors’ beliefs stronger  and it will debias any psychological effects.This research confirms the prospect effect’s bias that investors react more negatively when evaluating a company’s performance after a negative earnings information disclosure rather than react positively in evaluating the performance for a positive earnings information disclosure. The results also show that when additional pieces of information, such as a quantitative description and predicted earnings are added, they can mitigate the prospect effect’s bias. Additional information of predicted earnings as forward-looking oriented information has a stronger debiasing effect than that of additional information of a quantitative description as backward-looking oriented information.

scholarly journals Deep learning the collisional cross sections of the peptide universe from a million training samples

2020 ◽  
Author(s):  
Florian Meier ◽  
Niklas D. Köhler ◽  
Andreas-David Brunner ◽  
Jean-Marc H. Wanka ◽  
Eugenia Voytik ◽  
...  
Keyword(s):  
Cross Section ◽  
Cross Sections ◽  
Peptide Sequence ◽  
Peptide Ions ◽  
Additional Information ◽  
Training Samples ◽  
Deep Recurrent Neural Network ◽  
Collisional Cross Section ◽  
Data Points ◽  
Main Determinants

ABSTRACTThe size and shape of peptide ions in the gas phase are an under-explored dimension for mass spectrometry-based proteomics. To explore the nature and utility of the entire peptide collisional cross section (CCS) space, we measure more than a million data points from whole-proteome digests of five organisms with trapped ion mobility spectrometry (TIMS) and parallel accumulation – serial fragmentation (PASEF). The scale and precision (CV <1%) of our data is sufficient to train a deep recurrent neural network that accurately predicts CCS values solely based on the peptide sequence. Cross section predictions for the synthetic ProteomeTools library validate the model within a 1.3% median relative error (R > 0.99). Hydrophobicity, position of prolines and histidines are main determinants of the cross sections in addition to sequence-specific interactions. CCS values can now be predicted for any peptide and organism, forming a basis for advanced proteomics workflows that make full use of the additional information.

scholarly journals The Effect of Corporate Taxes on Investment and Entrepreneurship

2010 ◽  
Vol 2 (3) ◽  
pp. 31-64 ◽  
Author(s):  
Simeon Djankov ◽  
Tim Ganser ◽  
Caralee McLiesh ◽  
Rita Ramalho ◽  
Andrei Shleifer
Keyword(s):  
Cross Section ◽  
Informal Economy ◽  
Income Tax ◽  
Corporate Income Tax ◽  
Entrepreneurial Activity ◽  
Domestic Firm ◽  
Tax Rates ◽  
Corporate Tax ◽  
Tax Rate ◽  
Aggregate Investment

We present new data on effective corporate income tax rates in 85 countries in 2004. The data come from a survey, conducted jointly with PricewaterhouseCoopers, of all taxes imposed on “the same” standardized mid-size domestic firm. In a cross-section of countries, our estimates of the effective corporate tax rate have a large adverse impact on aggregate investment, FDI, and entrepreneurial activity. Corporate tax rates are correlated with investment in manufacturing but not services, as well as with the size of the informal economy. The results are robust to the inclusion of many controls. (JEL E22, F23, G31, H25, H32, L26)

scholarly journals The Impact of Dividend Payment on Market’s Expectation after the Global Crisis

2015 ◽  
Vol 8 (11) ◽  
pp. 68
Author(s):  
Thanh Thai Nguyen ◽  
Tristan Nguyen
Keyword(s):  
Real Options ◽  
Global Financial Crisis ◽  
Signaling Theory ◽  
Payout Policy ◽  
Main Theme ◽  
Growth Options ◽  
Dividend Payment ◽  
Dividend Signaling ◽  
The Us ◽  
The Impact

<p>This paper examines if there is any change in investors’ behavior toward dividend payout policy of the US corporations after the breakout of the global financial crisis in 2007-2008. In order to do so, dividend signaling theory is adopted as the main theme where we build econometrical models describing the influence of dividend payment on market’s expectation. Unlike most of the previous studies which use either price-dividend or dividend-earnings type tests to provide empirical evidence for the signaling theory, this paper attempts to perform a new type of test called present value of growth options (PVGO)-dividend type test. It is inspired by the recent development of real options as an investment valuation tool. This paper is in our opinion the very first to examine the implications of the signalling models in the context of the relation between dividend and PVGO using real options technique. Our result shows that in the market flooded with information like the US financial market, dividend no longer plays a significant role in delivering additional valuable information to investors. This outcome is highly inconsistent with dividend signaling theory. </p>

Why Does Equity Capital Flow out of High Tobin’s $\boldsymbol{q}$ Industries?

2020 ◽  
Author(s):  
Dong Wook Lee ◽  
Hyun-Han Shin ◽  
René M Stulz
Keyword(s):  
Cross Section ◽  
Capital Markets ◽  
Capital Flows ◽  
Equity Capital ◽  
Capital Expenditures ◽  
Stock Repurchases ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
High Q ◽  
Investment Opportunities

Abstract High Tobin’s $q$ industries receive more funding from capital markets than low Tobin’s $q$ industries from 1971 to 1996. Since then, the opposite is true. The key to understanding this shift is that large firms, for which $q$ is more a proxy for rents than investment opportunities, have become more important within industries. For these firms, repurchases but not capital expenditures increase in the cross-section with $q$, so that $q$ explains the variation of repurchases more than of capital expenditures. Consequently, equity capital flows out of high $q$ industries because for these industries stock repurchases are high and issuances are low.

NEW PROPOSALS FOR THE REACTION e+e−→π+π−π0

1994 ◽  
Vol 09 (04) ◽  
pp. 527-545 ◽  
Author(s):  
N.N. ACHASOV ◽  
A.A. KOZHEVNIKOV
Keyword(s):  
Mass Spectrum ◽  
Cross Section ◽  
Imaginary Part ◽  
Experimental Studies ◽  
Triangle Diagram ◽  
Additional Information ◽  
G Parity ◽  
The Difference ◽  
Ozi Rule ◽  
Self Consistency

The influence of the singularity of the triangle diagram on patterns of ρω interference in the π+π− mass spectrum of the reaction e+e−→π+π−π0 is considered at energies in the range [Formula: see text]. This influence arises due to the difference between the phases of the ω→ρπ and ρ→ωπ transition amplitudes implied by the imaginary part of this diagram. The decay kinematics of the triangle diagram results in the distortion of the π+π− mass spectrum. Taking this diagram into account at energies in between ω and φ peaks implies the measurable decrease of the cross section. Experimental studies of the effect of the imaginary part of the triangle diagram at e+e− colliders with the luminosity L=1031 cm −2 s −1 or higher could be of great interest as a tool for testing the self-consistency of calculations going beyond the tree approximation and as the possibility of obtaining additional information on the mechanism of breaking of the OZI rule and G parity.

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