...Ch. 17.1: Voting Methods The mathematical/sociological study of voting methods is more properly referred to as Social Choice Theory. It is a very important and hotly-debated subject, for obvious reasons! Methods of voting have been developed and debated since democracy in ancient Athens (probably earlier). It was in 1785 that a French philosopher named Jean Antoine Nicolas Caritat (the Marquis of Condorcet) published two foundational mathematical results, now known as Condorcet’s Jury Theorem, and Condorcet’s Paradox. The term “Social Choice Theory”, however, was not coined until after 1951, with the publishing of “Social Choice and Individual Values” by American economist Kenneth Arrow. These two men are often credited as the founders of the modern theory. In this section, we will look at seven different methods of casting and evaluating votes: i. Majority Rule ii. Plurality Rule iii. Borda Count iv. Hare Method v. Pairwise Comparison Method vi. Approval Method vii. Tournament Method Here on, we consider the general problem in which a group of n people must choose exactly 1 option (e.g. “C”) from a list of distinct options (A,B,C, etc.). These options could be candidates running for office, bills, legal decisions, etc. The one that is chosen we shall call the “winner”. 1 Plurality Voting In plurality voting (also called first-past-the-post voting in reference to horse races), each voter casts exactly 1 vote in favour of just 1 option. The winner is the option that earns...
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................................. 1 The models ........................................ 2 Variable Interest Model ..................... 2 Voting model ..................................... 3 Navigating through the Variable Interest Model ............................... 3 1. Does a scope exception to consolidation guidance (ASC 810) apply? ....................... 4 2. Does a scope exception to the Variable Interest Model apply? .... 4 3. Does the enterprise have a variable interest in a legal entity? ............................... 6 4. Is the legal entity a VIE? .............. 8 5. If the legal entity is a VIE, is the enterprise the primary beneficiary? ................. 14 Conclusion....................................... 19 Appendix: Flowchart of the consolidation models in ASC 810 ..21 A quick guide to understanding the Variable Interest Model and eight common misconceptions What you need to know • Depending on the circumstances, consolidation may be based on factors other than majority ownership. • To help you navigate through the Variable Interest Model, we lay out five questions you need to ask to evaluate an entity for consolidation. • We identify eight common misconceptions involving scope exceptions, determining whether an entity is a variable interest entity (VIE) and determining the primary beneficiary of a VIE. Introduction Two years after the Financial Accounting Standards Board (FASB) revised the Variable Interest Model in its consolidation guidance, we continue...
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...additional insight into this topic by analyzing the impact of media circulation on government responsiveness to falls in food production and crop flood damage in Indian states. The authors use the extent of public food distribution and calamity relief as proxies for government responsiveness. In addition to media factors, political and economic factors are introduced as potential determinants of policies. The predictions of the theory are underlined by the results of the paper: Government responsiveness increases with a higher amount of media users within a state. Further, political factors are also relevant determinants, whereas, economic factors are of low importance. In the following, the paper will be critically assessed within these sections. First, the theory, the propositions as well as the empirical strategy are introduced and compared to discussions in class. Second, the results of the paper are outlined. Third, the empirical strategy as well as the results will be analyzed and compared to prior research and theory. Finally, a short conclusion and outlook will be given. 2. Theory, Propositions and Empirical Strategy The theoretical two-period model of Besley & Burgess (2002) is based on several assumptions. There are vulnerable and non-vulnerable citizens. Part of the vulnerable citizens are needy, meaning that they suffer after a shock in a certain period and that public action would improve their situation. Moreover, there are altruistic, selfish, and opportunistic incumbents...
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...CORPORATE OWNERSHIP IN LATIN AMERICAN FIRMS: A COMPARATIVE ANALYSIS OF DUAL-CLASS SHARES Luiz Ricardo Kabbach de Castro Rafel Crespi i Cladera Universitat de les Illes Balears Ruth V. Aguilera University of Illinois at Urbana-Champaign We assembly new data on dual-class firms in Latin America and analyze the relationship between the largest shareholder characteristics and its decision to leverage voting rights. First, we describe who are the largest shareholders in Latin American firms. Second, we find that both the type and origin of the largest shareholder, together with firm- and country-level characteristics, are important determinants to explain the decision to separate voting from cashflow rights. To tackle the determinants of ownership in Latin American publicly listed firms has both managerial and policy implications because the largest shareholders are those in charge to define business strategies and the allocation of firms’ resources. Key words: Corporate ownership; dual-class shares; voting rights; cash-flow rights; Latin America. 1 INTRODUCTION Most of the analysis of the Modern Corporation has focused on the conflicts of interest between managers and owners. Yet, recent literature, extending the discussion of the classic ownermanager conflict, adds minority versus majority shareholders conflict where more concentrated ownership structures takes place (La Porta, López-de-Silanes, & Shleifer, 1999; Villalonga & Amit, 2009; Young, Peng, Ahlstrom, Bruton,...
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...www.pwc.com Guide to Accounting for Variable Interest Entities 2012 This publication has been prepared for general information on matters of interest only, and does not constitute professional advice on facts and circumstances specific to any person or entity. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication. The information contained in this material was not intended or written to be used, and cannot be used, for purposes of avoiding penalties or sanctions imposed by any government or other regulatory body. PricewaterhouseCoopers LLP, its members, employees and agents shall not be responsible for any loss sustained by any person or entity who relies on this publication. The content of this publication is based on information available as of May 31, 2012. Accordingly, certain aspects of this publication may be superseded as new guidance or interpretations emerge. Financial statement preparers and other users of this publication are therefore cautioned to stay abreast of and carefully evaluate subsequent authoritative and interpretive guidance that is issued. Portions of various FASB documents included in this work, copyright © by Financial Accounting Foundation 401 Merritt 7, Norwalk, CT 06856, are reproduced by permission. Dear Clients and Friends: The...
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...play the role of the engine of Southern growth. The new locomotive forces have to be found within the South itself. South-South co-operation is, therefore, crucial.” Manmohan Singh, then secretary-general of the South Commission, said this at a symposium on development at Espoo, Finland, in May 1989. The Commission, which later became South Centre, is an inter-governmental grouping of developing countries in the South. Twenty-three years later, in 2012, when Singh was Prime Minister, India proposed setting up a multilateral financial institution to support economic development of emerging economies. The proposal became a reality in another two years, , with five emerging economies — Brazil, Russia, India, China and South Africa, or Brics — agreeing to form a development bank and a pool of currency swaps at their sixth annual summit in Fortaleza, Brazil. The July 15-16 summit marked a new beginning in the global economic order because for the first time in post-War history there was a collective, institutionalised effort from major economies to challenge the hegemony of the West-focused World Bank and International Monetary Fund (IMF). The New Development Bank (NDB) of Brics, which will start operations with $50 billion in capital and fund infrastructure projects and “sustainable development” in the developing world, is a potential rival to the World Bank, while the proposed $100-billion Contingent Reserve Arrangement (CRA) will work parallel to the IMF. New financial architecture ...
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...Oprah, Obama, and the 2008 Democratic Primary Craig Garthwaite Department of Economics University of Maryland College Park, MD 20742 Vmail: 202-746-0990 Email: cgarthwaite@gmail.com Tim Moore Department of Economics University of Maryland College Park, MD 20742 Vmail: 301-442-1785 Email: moore@econ.umd.edu August 2008 Abstract Candidates in major political contests are commonly endorsed by other politicians, interest groups and celebrities. Prior to the 2008 Democratic Presidential Primary, Barack Obama was endorsed by Oprah Winfrey, a celebrity with a proven track record of influencing her fans’ commercial decisions. In this paper, we use geographic differences in subscriptions to O! – The Oprah Magazine and the sale of books Winfrey recommended as part of Oprah's Book Club to assess whether her endorsement affected the Primary outcomes. We find her endorsement had a positive effect on the votes Obama received, increased the overall voter participation rate, and increased the number of contributions received by Obama. No connection is found between the measures of Oprah's influence and Obama's success in previous elections, nor with underlying local political preferences. Our results suggest that Winfrey’s endorsement was responsible for approximately 1,000,000 additional votes for Obama. JEL Classification Numbers: D7; D72 We are grateful to Bill Evans for his comments and guidance. We also would like to thank Kerwin Charles, Allan Drazen...
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... Downs’ conclusion of his work is that rational voters should almost never bother to vote. At the same time, Downs remains puzzled by this conclusion as it predicts a much lower voter-turnout than what actually occurs. The concept of rational choice voting and collective goods brings forth an interesting evaluation given Downs’ concluding dilemma: could rational choice voting behavior be considered a collective good? Furthermore, could such a rational choice voting behavior be considered a collective good to everyone with similar interest in terms of political parties and ideological positioning? While Downs explains that voters may continue to vote as means to support democracy, he provides no solution to resolve this irreconcilable complication. Democracy cannot survive with no voter-turnout, one could argue that the mere exercise of voting in a duly constituted election provides democratic legitimacy. Despite its self-serving nature, rational voting behavior is, in essence, a collective good as every member of society is able to benefit from it regardless of whether each members duly...
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...Median Voter Theory Median Voter Theory (MVT), in the most basic understanding, is considered to be the “Majority rule voting system.” In the system of a majority rule, a candidate must obtain the majority of the voter’s votes i.e. the majority of the votes plus one (Williams pg. 208). To fully understand the concept of MVT and build a more descriptive framework one must assume two suppositions: (1) all voters are equally and gradually distributed on a one-dimensional line traveling from left to right (Hotelling, 1929, pg 43), and (2) the voter’s choices and positions i.e. the candidates are also plotted to the same gradual one-dimensional left to right line (Hotelling, 1929 pg 43). Additionally, the median term refers to how the candidates...
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...The Pennsylvania State University The Graduate School The Mary Jane and Frank P. Smeal College of Business ESSAYS IN POLITICAL MARKETING A Dissertation in Business Administration by David LeBaron 2008 David N. LeBaron Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy December 2008 The thesis of David N. LeBaron was reviewed and approved* by the following: William T. Ross, Jr. Professor of Marketing Dissertation Co-Advisor Co-Chair of Committee John C. Liechty Associate Professor of Marketing Dissertation Co-Advisor Co-Chair of Committee Peter Ebbes Assistant Professor of Marketing David J. Huff Clinical Assistant Professor of Supply Chain and Information Systems Johannes Baumgartner Professor of Marketing Head of the Department of Marketing *Signatures are on file in the Graduate School iii ABSTRACT Political marketing sits at the nexus of two disciplines, political science and marketing, but is not entirely accepted by either. The present research looks at the origin, development, and evolution of political marketing and examines how the adoption of a political marketing orientation is impacting the practice of political campaigns. The role of political marketing in actually changing voters’ preferences is also examined, showing that grassroots marketing efforts seem to have the greatest effect, especially with undecided voters. Finally, voter segments are derived...
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...proposing. This includes an assessment of both the costs incurred by preparers of financial statements and the costs incurred by users of financial statements when information is not available. We also consider the comparative advantage that preparers have in developing information that users would otherwise have to develop themselves. What is the measurement bar for our assessment? We expect our standards to have economic effects, and we understand that those effects may be beneficial for some entities and detrimental to others. For example, a change in financial reporting requirements might affect the cost of capital for individual entities by changing the absolute or relative level of information asymmetry associated with those entities. We assess these associated costs and benefits by reference to the overall objective of financial reporting. We try to understand how the changes will contribute towards the development of a single set of high quality global accounting standards by improving the allocation of capital. We therefore also consider the benefit of better economic decision-making as a result of improved financial reporting. The boundaries of our assessment a) Uncertainties The assessment is undertaken before the requirements have been applied. This means that we cannot be certain about the actual effects until after the new requirements have been applied for some time. This is why the IASB is committed to undertaking post-implementation reviews two years after implementation...
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...The William Wrigley Jr. Company: Captial Structure, Valuation, and the Cost of Capital Thomas A. Dotter University of the Incarnate Word Introduction In the case study, “The William Wrigley Jr. Company: Captial Structure, Valuation, and the Cost of Capital” the author, Robert Bruner, examines how Blanka Dobrynin, managing partner at Aurora Borealis, explores the opportunity to persuade Wrigley’s board to complete a leveraged recapitalization through a dividend or major share repurchase. Through her active investor strategy, Blanca is trying to increase the value of investment in Wrigley. Blanca’s objective would be to create ultimately new value in Wm. Wrigley Jr. corporation and thus increase the value of Aurora Borealis’ initial investment in the firm. As a result of using the three billion to complete a significant share repurchase or by increasing the dividend to stockholders; Finance theory can be used to demonstrate how Blanca’s strategy will enhance the value of the firm and ultimately increase Aurora Borealis’ initial investment. Case Study Questions Based on the theory and research papers read during the semester, the following is an analysis of the effects of issuing $3 billion of new debt and using the proceeds either to pay a dividend or to repurchase shares on: 1. Wrigley’s outstanding shares? a. A firm can leverage debt to maximize profitability which will allow the firm to compete in a competitive market (DeAngelo & Masulis, 1979)...
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...Northern Consortium United Kingdom – Politics Past paper questions for June exam < Module 1 > Section A 1a What are the differences between Public Bills Committees and Select Committees? [5] Public Bills Committee is part of legislative process, whereas Select Committee is part of scrutiny process. In the former committee, the bill is examined by line by line to ensure that its wording and language is clear to allow any amendments on the bill. In the latter committee, there are two departments – governmental and non-governmental. They examine government departments’ expeditures , policies and policies. There are between 16 to 50 members in the PBC who are selected by Committee of Selection whose 7 out 9 members are ships. On the other hand, there are 11 members in the SCs and to eliminate “the conflict of interest, all the members are backbench members who are elected using the Alternative vote system. 2a What are the main functions of Parliament and how well does it perform them? [5] < This question is a 20-mark question > 3a What are the differences between direct and representative democracy? [5] In direct democracy, people are directly involved in decision-making processes, whereas in representative democracy, people elect MPs who will represent and form a government in Parliament. For instance, some qualified members of Athenian society were involved in decision-making and a referendum is a limited form of direct democracy. Also general elections...
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...The IMF's primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with one other. This system is essential for promoting sustainable economic growth, increasing living standards, and reducing poverty. The Fund’s mandate has recently been clarified and updated to cover the full range of macroeconomic and financial sector issues that bear on global stability. The IMF was established at the Bretton Woods conference in 1944 to provide short term financial assistance to countries experiencing problems with their trade deficit or other Balance of Payments issues, so they could maintain stability in exchange rates i.e. stay fixed to USD value (i.e. gold value). Otherwise in case of a major trade deficit or Balance of Payments issues, countries may be tempted to print more money and devalue currency. In 1971 the dollar de-linked from gold and subsequently in the Jamaica Agreement in 1976, the IMF acknowledged its new role which was an evolution from protecting fixed exchange rates to surveillance of currency floats and managing economic stability. The IMF promotes clean floating i.e. there is minimal government intervention in establishing exchange rates and the market determines rates. As compared to “managed” (rates influenced by government intervention) or “dirty” floats (unfair government intervention). IMF conditionality refers to the requirement...
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...Introduction Every four years, the United States presidential election becomes one of the country’s biggest news stories for a large chunk of that year. During this time there are a great many words both spoken and written about how people are going to vote and what factors supposedly lead them to vote a certain way. It seems that much of the time the analysis of these issues is of a qualitative nature, and with that in mind this paper will attempt to approach the problem from a statistical point of view. That is not to say there is a lack of quantitative research on how specific demographics tend to vote; indeed, some of the good data and information out there will be used to inform this paper’s hypotheses and econometric model. This study will focus on the 2012 U.S. presidential election Barack Obama and Mitt Romney (there were several other candidates on the ballot, but none received a significant portion of the votes). Pundits threw around seemingly countless factors in an attempt to analyze and predict how people would vote in this election; this paper will focus on a select group of those factors, in hopes of drawing some firm and well-grounded conclusions as to whether they actually played a statistically significant role. Countywide data will be utilized. The recent widespread availability of election results on a county-by-county level, combined with countywide information from the U.S. Census Bureau, allows for a very large number of observations (at least in...
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