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Full-Text Articles in Business
An Analytical Approach For Making Management Decisions Concerning Corporate Restructuring, Beixin Lin, Zu Hsu Lee, Richard Peterson
An Analytical Approach For Making Management Decisions Concerning Corporate Restructuring, Beixin Lin, Zu Hsu Lee, Richard Peterson
Department of Accounting and Finance Faculty Scholarship and Creative Works
Internal corporate restructuring activities, such as downsizing, sale or termination of a business line, facility closure, consolidation, or relocation, often occur as part of managerial strategies intended to improve efficiency, control costs, and adapt to an ever-changing business environment. Such actions frequently result in fundamental changes in a business's organization, its strategies, its systems, and its operations. They can unsettle a business and often significantly affect current and future earnings and cash flows. In this paper we propose a novel decision-making model through the use of the dynamic programming technique to illustrate how management can determine the optimal timing and …
Central Bank Independence, Inflation Variability, And The Revenue Smoothing Hypothesis, Hermann Sintim-Aboagye, David R. Tufte
Central Bank Independence, Inflation Variability, And The Revenue Smoothing Hypothesis, Hermann Sintim-Aboagye, David R. Tufte
Department of Accounting and Finance Faculty Scholarship and Creative Works
This paper examines the revenue-smoothing hypothesis, which posits that an optimizing government will adjust both taxes and inflation to meet shocks to government spending. Our contribution is to examine this through the lens of a new methodology that relates both the first and second moments of inflation rates to central bank independence (CBI) measures. Unlike existing least-squares-based CBI papers, this study uses a maximum likelihood framework that facilitates the direct inclusion of CBI parameters in the residual covariance matrix. This new approach allows for a more intensive use of information contained in the CBI indexes and the estimates obtained are …