Last month, in this magazine, this author argued in Fixing Financial Statements: Financial Statement Overhaul that the traditional formats of the primary financial statements—income statement, balance sheet, and cash flow statement—need major redesign to again be useful for meaningful financial analysis, decision-making and value creation. Since the fundamental objective of a business is to inc...

Children are disproportionately represented among the income-poor, many suffer from severe deprivation, and their poverty and vulnerability have cumulative and long-term consequences. This article provides a comparative examination of the poverty-reduction effectiveness of cash transfer programmes targeting children, focusing on three types of such programmes: the Child Support Grant in South A...

Management-prepared financial statement projections are an important component of the income approach to business valuation, specifically the discounted cash flow valuation method. And, the discounted cash flow valuation method is frequently used and assigned material weighting in the business valuation performed for gift tax, estate tax, and generation-skipping tax purposes. This discussion co...

United States has been fundamentally transformed. The 1996 welfare reform led to a dramatic reduction in the amount of state cash assistance and to the elimination of the Aid to Families with Dependent Children (AFDC) program. At the same time, the amount of cash assistance given through the U.S. tax system increased substantially with the Earned Income Tax Credit (EITC). A Revolution in Povert...

We demonstrate that analysts revise their forecasts of net operating income downward following the announcement of an equity-for-debt swap. Their revisions are positively correlated with the size of the stock-price reaction to the swap announcement. This evidence supports the hypothesis that announcements of equity-for-debt swaps convey information about the expected level of cash flows of the ...

To receive payments under the Supplemental Security Income (SSI) program, certain eligibility requirements must be met. One requirement places a limit on the value of “countable resources** of an individual or a couple. Resources are defined in the regulations as cash and any other personal property, as well as any real property, that an individual: -owns; -has the right, authority, or power to...

OBJECTIVES We explored changing relations between substance use, welfare receipt, and substance-abuse treatment among low-income mothers before and after welfare reform. METHODS We examined annual data from mothers aged 18 to 49 years in the 1990-2001 National Household Survey of Drug Abuse and the 2002 National Survey of Drug Use and Health. Logistic regression was used to examine determinan...

Service firms seek customers with high revenues, profits, or lifetime value. However, they frequently ignore variations in consumption that lead to cash flow variability and adversely influence service operations and financial performance. This study shows that variation in individual customers’ consumption or spending on services can be decreased in ways that are actionable by most managers, w...

Observational studies suggest that women’s income benefits children’s health and nutritional status, as well as education, more than men’s income, apparently because women are more likely to shift marginal resources to their children. These studies have influenced policies such as conditional cash transfers, which typically target women. However, previous studies have been unable to control for...