Why has the value of cash increased over time? * Thomas W. Bates Arizona State University Thomas.Bates@asu.edu Ching-Hung (Henry) Chang Arizona State University Ching-Hung.Chang@asu.edu Jianxin (Daniel) Chi University of Nevada‚ Las Vegas Daniel.Chi@unlv.edu First Draft: January 2011 This Draft: December 2011 Abstract: The value of cash holdings by U.S. non-financial firms has increased significantly over the past three decades. An additional dollar of cash holdings is valued at $0.61 in
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ISSN 1045-6333 THE SHAREHOLDER WEALTH MAXIMIZATION NORM AND INDUSTRIAL ORGANIZATION Mark J. Roe Discussion Paper No. 339 11/2001 Harvard Law School Cambridge‚ MA 02138 The Center for Law‚ Economics‚ and Business is supported by a grant from the John M. Olin Foundation. This paper can be downloaded without charge from: The Harvard John M. Olin Discussion Paper Series: http://www.law.harvard.edu/programs/olin_center/ SHAREHOLDER WEALTH MAXIMIZATION JEL Class: D42‚ G32
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Cash or Not? Whether or not cash should be eliminated is a big debate in our world today. Cash should not be eliminated to provide for safer control of your money. Without cash‚ plenty of problems appear like acts of crime‚ not having banking connections‚ and having your personal information on record. To start off with‚ criminals and hacking progress as technology does. In the Upfront magazine article called "The End of Cash"‚ the author says‚ "Security experts worry‚ for example‚ that hackers could
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Shareholder and Stakeholder Over the last decade‚ with the rapid development of business management‚ the Shareholders who are the effective owners of the company invest money into the business and want as much profit as possible as a return for their investment. Shareholders will engage manager to help them to run the business and make various decisions in different aspects in order to maximize potential wealth. There seems to be no doubt that a manager has a legal responsibility to shareholders
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The current issue and full text archive of this journal is available at www.emeraldinsight.com/1755-4179.htm Shareholder and stakeholder theory: after the financial crisis Terence Tse ESCP Europe‚ London‚ UK Abstract Purpose – The recent financial crisis has restarted the debate of the value of both shareholder and stakeholder theories. This paper aims to continue this discussion. Design/methodology/approach – The paper reviews existing literature and examines the benefits and problems associated
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The prevailing trend of share/capital market has a direct impact on banking stability – evaluate the statement This paper explains the workings of a stock market as well as its effects on a country’s economy. The main point of this paper of to prove that the volatility of a country’s capital market can have a negative effect on banking stability of a country. The fall of a country’s capital market could mean the demise of the country’s banking sector as well. Basic Explanation of the Stock Market
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Advantages and Disadvantages of using cash to make payments Advantages Disadvantages Cash is the most common way of payment around the globe when compared to all other types of payment. As cash does not involve third-party action for its immediate conversion into other forms value. Cash requires no authorization for the person who carries it‚ thus it is convenient for those who desires small payment amounts to be used. The use of cash does not involve any transaction fees for both ends‚ that
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where and how health care related resources should be spent‚ “cost-per-QALY” is one of them that have received considerate academic attention over the last few decades (Alder‚ 2006). As such‚ it is key to investigate if this particular criteria has a legitimate weight in this allocation decision process‚ and if so‚ within which boundaries. To do so‚ in a first section I will briefly define
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The power of shareholders. ‘’Being shareholders has two sides‚ One side is being a financier of the company. The financer is mostly a investor looking for a place to drop his money and make money. On the other side the shareholder is the owner of the company’’ - Peter Blom‚ CEO Triodos Bank. This is a sustainable bank founded in the Netherlands and also located in the United Kingdom‚ Belgium‚ Germany‚ Spain and France. In this company I did my internship in the fall semester of 2013. It is a
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VALUATION OF SHARES. 2.1 The concept of a cost of equity The cost of equity is the cost to the company of providing equity holders with the return they require on their investment. The primary financial objective is to maximize the return to equity shareholders. This return is as the future dividend yield and capital growth. Until new shareholders become members of the company‚ the objective above is concerned with existing shareholders. Company management will need to offer new shareholders the minimum
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