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Record W2289759801

The effects of economic development on corporate financial structure

2004· dissertation· en· W2289759801 on OpenAlex
Lan Chen

Why this work is in the frame

A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.

aboutThe title or abstract carries a Canadian signal from the geographic lexicon.
no affNo Canadian affiliation: this work is invisible to an affiliation-only frame.
No Canadian affiliation. An affiliation-only frame, the usual design, would never have seen this work. It is one of the works that make the case for inverting the frame.

Bibliographic record

VenueScholarSpace (University of Hawaii at Manoa) · 2004
Typedissertation
Languageen
FieldComputer Science
TopicEconomic Growth and Development
Canadian institutionsnot available
Fundersnot available
KeywordsBusinessFinancial systemAccountingEconomic systemEconomics
DOInot available

Abstract

fetched live from OpenAlex

This dissertation investigates corporate financial structure, ownership structure, and their relationships with economic development. It is composed of three chapters. The first chapter investigates the Modigliani-Miller Irrelevance Theorem under risk-neutrality and positive profit. It models the entrepreneur as the residual risk-bearer in a world of risk-neutral agents. The percentage of entrepreneurial equity holding increases as the firm issues more debt. Stockholders bear greater risk than debt holders, but both receive the same expected rate of return. Using this framework, I obtain a transparent explanation of the effect of capital structure on the cost of capital. The framework is fully operational and suitable for numerical illustrations. It also lays the groundwork for operational agency models of optimal corporate finance. Chapter 2 examines the relationship between corporate financial structure and economic development (per capita income) using data from four economies: U.S.A., Canada, Australia, and Taiwan. This chapter has two major findings. First, over the last few decades, the corporate financial structure in these four economies did not demonstrate any downward trend during the sample period when all economies experienced income increases. Second, income affects the link between the economic growth rate and the debt-equity ratio. I find that the economic growth rate and the debt-equity ratio move in the same direction in higher-income countries and in opposite directions in lower-income countries. Chapter 3 models the link between corporate financial structure, ownership structure, and economic development. It shows that the under the assumptions of asymmetric information and moral hazard, debt and outside equity are part of the optimal contract paid to an investor by his manager. The manager receives a profit share that equals his marginal cost of effort. The chapter then shows that economic development raises the reservation utility for all managerial types by increasing the opportunity wage for managers. Consequently, lower types drop out of the managerial group and prefer to be workers. As a result, the average percentage of inside equity (averaged over the higher managerial types) increases as an economy develops. The effect of economic development on the average debt-equity ratio is generally indeterminate.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMeta-epidemiology (narrow)
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.787
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0010.000
Scholarly communication0.0000.000
Open science0.0010.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.005
GPT teacher head0.171
Teacher spread0.166 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it