Stock Market Returns, Corporate Governance and Capital Market Equilibrium

This paper analyzes why corporate governance matters for stock returns if the stock market prices the underlying managerial agency problem correctly. Our theory assumes that strict corporate governance prevents managers from diverting cash flows, but reduces incentives for managerial effort. In capital market equilibrium, this trade-off has implications for the firm's earnings, stock returns, and managerial ownership, because governance impacts the firm's risk-return structure. In particular, the strictness of corporate governance is negatively related to earnings and positively to β. Various empirical tests with U.S. data using the governance index of Gompers, Ishii, and Metrick (2003) yield results consistent with these predictions

Rising Intangible Capital, Shrinking Debt Capacity, and the US Corporate Savings Glut

peer reviewedThis paper explores the connection between rising intangible capital and the secular upward trend in US corporate cash holdings. We calibrate a dynamic model with two productive assets, tangible and intangible capital, in which only tangible capital can serve as collateral. We highlight the following points: 1) a shift toward intangible capital shrinks firms' debt capacity and leads them to hold more cash; 2) the effect accounts for 3/4 of the observed trend in average cash ratios; 3) it also accounts for the upward trend of cash ratios in the cross-section of small and large firms and in the aggregate

THE STATE OF CULTURAL FOUNDATIONS OF THE NATION-BUILDING IN MODERN KAZAKHSTAN

The article examines nation-building in Kazakhstan from the point of view of the relationship between its homogeneous and heterogeneous cultural foundations. The article shows that the cultural and linguistic heterogeneity of the entire multiethnic society in Kazakhstan is inextricably linked with the Kazakh-Russian heterogeneity of the titular nation. The consequence of the heterogeneity of the titular nation is the three-element social structure of society in Kazakhstan: 1) Kazakh-speaking Kazakhs, 2) Russian-speaking Kazakhs, and 3) Russians and other nationalities. Due to the linguistic heterogeneity of the Kazakhs as the nuclear state-forming nation, such a transition is seriously hampered today in the nation-building in Kazakhstan. The results of the opinion poll demonstrate a different level of support for heterogeneity among different ethnocultural groups. The tendency to support cultural titular homogeneity among Kazakhs is significantly higher than among other ethnocultural groups.</jats:p

STS-PCR markers appropriate for wheat-barley introgression

Introgression of chromosomal segments across large taxonomic distances has long been an objective of scientists interested in understanding the relationships between genes and their effect on phenotype. Barley and wheat represent cultivated members of the Triticeae with different zones of adaptation, different responses to pathogens, and different end-use characteristics. Introduction of small, well-characterized chromosomal segments among grass relatives presents an opportunity to both better understand how genes perform in novel genomic environments and to learn more about the evolutionary novelties which differentiate related species. Since the distribution of the wheat-barley addition lines, the potential power and value of a comprehensive series of wheat/barley translocation lines has been widely appreciated. A scarcity of easy-touse markers which unambiguously distinguish barley loci from their wheat homologues has limited the ability of scientists to identify the relatively rare inter-chromosomal recombination events which are the necessary antecedents of these lines. Since the single most critical pathogen affecting U.S. wheat producers is Karnal bunt (Tilletia indica) and since barley carries a gene conferring immunity, molecular markers may prove practically and immediately important. In this report we describe a series of 135 barley-specific markers amplified by 115 primer sets developed from sequences from previously mapped restriction fragment length polymorphism (RFLP) markers. These easily distinguish the cognate barley products from their wheat counterparts and should find ready use in the identification of lines which contain wheat/barley translocation events.T. K. Blake, D. Kadyrzhanova, K. W. Shepherd, A. K. M. R. Islam, P. L. Langridge, C. L. McDonald, J. Erpelding, S. Larson, N. K. Blake and L. E. Talber