Animal Farm, Baby Boom and Crackberry Addicts

[Excerpt] In this chapter, we draw from both popular media and research support, along with anecdotal examples drawn from conversations accumulated as part of our own prior studies. Our goal is to present reminders that working hours are a personal life choice, even with external demands, but a choice that is influenced by elements of the individual’s working situation. The implications of a choice for long working hours are shown through use of two past “hard working” icons from popular media, one from the 1940s and one from the 1980s. Discussion continues into current time with an overview highlighting advances in technology that provide expanded work opportunities but, also, exacerbate tendencies toward work addiction.

Agency, Financial Flexibility, and Firm Value: Evidence from REITs

We show empirically that the use of unsecured debt, whose standard covenants commit management to the preservation of debt capacity, leads to lower and more stable leverage. We then show that firm value is sensitive to leverage levels and leverage stability, decreasing in the former and increasing in the latter. Our results support a liquidity-centric version of Jensen's (1986) free cash flow argument. In this version, self-serving managerial tendencies are reigned in without raising leverage indiscriminately, so that financial flexibility is preserved.