...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. For the purpose of the study, opportunistic...
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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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...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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...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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...government up between three institutions with all the same amount of power, ● 03.Why are institutions difficult to change? Path dependency: reliance on experience, constrained by status quo; solutions based on familiar institutions. Some participants are content with current arrangements and not willing to change. ● 04.Framers consciously designed a set of institutions for making it possible to do politics of this kind. The point is to design a set of institutions that control the effects of factions--by setting them against one another, but dividing authority among institutions ● Problems with the Articles of confederation No ability to tax , No central currency, No way to negotiate treaties ,No executive capacity, difficult to maintain public order, nation security. ● 06.Deals addressed by the constitution Path dependency: reliance on experience, constrained by status quo; solutions based on familiar institutions. Some participants are content with current arrangements and not willing to change. ● 07.Federalist papers- A series of (85) published arguments that advocated the ratification of the Constitution. A sales pitch, these explicated the logic for the constitution and provide great insight for understanding why government was set up as it is. Specifically, laid out the problems with...
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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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................................. 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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...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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...remarkable successes but also failed in significant ways. While economic growth has been rapid over recent decades, this has not translated into greater welfare for the majority of the Indian population. Despite being severely critical of its politicians, the electorate however remains enthusiastic in its political participation, especially at elections. In 1947, when India gained her independence from colonial rule, the choice of parliamentary democracy and a universal franchise for such a poor, vast and largely illiterate nation was considered foolhardy by many observers, at home and abroad. Nevertheless the first general election was held with great rigour, enthusiasm and success in 1952. In the meantime, a Constitution reflecting the political and ideological goals of the new nation had been adopted. It was authored by the Constituent Assembly made up of 299 members who represented the enormous class, religious and linguistic diversity of India’s population and who after much debate and deliberation set out the framework for India’s future as a republic and parliamentary democracy. Enshrined within it were the principles of the separation of powers, a universal Indian citizen with constitutional rights, equality before the law, the separation of civil and military powers, and the necessity for political competition. The press remains as free as any in the world and contributes to a lively and highly contested public sphere. So according to the democratic checklist of institutional...
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...“Deconstructing Independent Directors”(*) María Gutiérrez Maribel Sáez Universidad Carlos III de Madrid and ECGI Universidad Autónoma de Madrid January 2012 Abstract In this paper we argue that boards of directors lack the mandate, the incentives and the ability to control insiders, especially in jurisdictions where the main agency problem arises between controlling and minority shareholders. We analyze the problems that render independents an inefficient monitoring device for companies with concentrated ownership structures and conclude that the current focus of the regulators and codes of best practice on empowering independents is ineffective and companies would be better off choosing their board members at liberty. Nevertheless, we also present two different proposals for reform: independents as gatekeepers for the regulator and independents as surrogates of the minority. Both proposals are based on the idea that if independent directors are expected to monitor controlling shareholders their most important characteristic should be accountability rather than mere independence. JEL Classifications: G32; G34; K22 Keywords: Independent directors, Board of directors, Concentrated ownership, Monitoring, Corporate Law (*)The authors wish to thank, Jesus Alfaro, Magda Bianco, Fernando Gómez Pomar and Assaf Hamdani and seminar audiences at AEDE 2010 and SIDE 2011 for many useful comments. The contents of this paper are the sole responsibility of...
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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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...used as little more than a 'hurrah! word', implying approval of a particular set of ideas or system of rule. Perhaps a more helpful starting point from which to consider the nature of democracy is provided by Lincoln's Gettysburg Address, delivered in 1864 at the height of the American Civil War. Lincoln extolled the virtues of what he called 'government of the people, by the people, and for the people'. What this makes clear is that democracy serves to link government to the people, but that this link can be forged in a number of ways - government of, by and for the people. Nevertheless, the precise nature of democratic rule has been the subject of fierce ideological and political debate. The next section will look at alternative models of democracy. For the time being, however, the terms of the democratic debate are explored. This boils down to the attempt to answer two central questions: ▪ Who are the people? ▪ In what sense should the people rule? Who are the people? One of the core features of democracy is the principle of political equality, the notion that political power should be distributed as widely and evenly as possible....
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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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...packing, racial and partisan gerrymandering, political consequences of gerrymandering) This decision requires each state to draw its U.S. Congressional districts so that they are approximately equal in population. Redistricting to favor a political party. Cracking= Spreading like-minded voters apart across multiple districts to dilute their voting power in each. This denies the group representation in multiple districts Packing= Concentrating like-minded voters together in one district to reduce their voting power in other districts. _ Individualism in Congress (including factors that contribute to it) _ Single-member districts electoral district in which a single person is reelected _ Plurality elections determining an elections winner by who ever receives the most votes wins _ The incumbency advantage (and why it is higher in the House than in the Senate) higher chance of being re elected higher in the house because closer to the people _ Franked mail free mail for members of congress _ Models for analyzing Congress distribution model- institutions of congress are designed to help congress members secure economic benefits for only their...
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...Corporate Governance and Accounting Conservatism in China* Donglin Xiaa and Song Zhub,** b School of Economics and Management, Tsinghua University, China School of Economics and Business Administration, Beijing Normal University, China a Abstract A principal-agent relationship exists among creditors, shareholders and management, and information asymmetry among them leads to asymmetric loss functions, which induces conservative accounting. This paper investigates the determinants of accounting conservatism using accrual-based measures and data from 2001 to 2006 in China. We find that a higher degree of leverage, lower level of control of ultimate shareholders and lower level of management ownership lead to more conservative financial reporting. We also find that political concerns and pressures among state-owned enterprises are greater than those among non-state owned enterprises, which leads to more conservative financial reporting among the former. However, a decrease in such concerns leads to a decrease in accounting conservatism. Overall, we find that among the determinants of conservatism in China, debt is the most important, followed by ownership, and that board has little influence. JEL classification: G30; M41 Keywords: Information asymmetry; Agency problem; Accounting conservatism; Political concerns; Corporate governance * We thank George Yang from Chinese University of Hong Kong and participants at CJAR Summer Research Workshop for helpful comments....
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