Digital inequality, or the unequal access and use of information communication technologies, inhibits under-privileged people from opportunities in the digital world. Although government and private organizations have devoted considerable resources to address this inequality, issues remain unsolved. A theory-based investigation of the phenomenon is essential for effective policy-making and inte...

The traditional estimation of mixture regression models is based on the normal assumption of component errors and thus is sensitive to outliers or heavy-tailed errors. A robust mixture regression model based on the t−distribution by extending the mixture of t−distributions to the regression setting is proposed. However, this proposed new mixture regression model is still not robust to high leve...

This paper describes a simple way to integrate the debt tax shield into an accounting-based valuation model. The market value of equity is determined by forecasting residual operating income, which is calculated by charging operating income for the operating assets at a required return that accounts for the tax benefit that comes from borrowing to raise cash for the operations. The model assume...

This study aims to find out whether the Super Village Unit Cooperative is able cover depreciation costs on use of fixed assets and by using operating leverage analysis cooperative generate profits.To test hypothesis taken, analytical tool used degree (DOL) analysis.The results show that cooperatives have not been achieve a level efficiency, because resulting shows an increase in first two years...

We show that the public market equivalent (PME) approach [Kaplan and Schoar (2005)] is equivalent to assessing the performance of PE investments using Rubinstein’s dynamic version of the capital asset pricing model [Rubinstein (1976)]. Two insights follow. First, we do not have to compute betas of PE investments, and any changes in PE cash flow betas due to changes in financial leverage, operat...

We solve the credit spread puzzle with a structural model of firms policies that endogenously replicates the empirical cross–section of credit spreads. Structural estimation of the model’s parameters reveals that the model cannot be rejected by the data, and that endogenous investment decisions are major determinants of CDS spreads. We also verify that controlling for financial leverage, CDS sp...

Article history: Received 5 December 2011 Received in revised form 10 July 2012 Accepted 10 July 2012 Available online 20 July 2012 This paper analyzes the effect of financial leverage on corporate operating performance and how this effect varies across countries. Results for 10,375 firms in 39 countries indicate that the performance of firms with greater leverage is significantly reduced compa...